JNL VARIABLE FUND LLC
SEMI-ANNUAL REPORT
JUNE 30, 2000
<PAGE>
JNL/FIRST TRUST THE DOW TARGET 5 SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $5,203) .................. $ 3,977
Receivables:
Dividends and interest ................... 15
Fund shares sold ......................... 3
--------------
TOTAL ASSETS ............................... 3,995
--------------
LIABILITIES
Payables:
Advisory fees ............................ 3
--------------
TOTAL LIABILITIES .......................... 3
--------------
NET ASSETS ................................. $ 3,992
==============
NET ASSETS CONSIST OF:
Paid-in capital ............................ $ 5,388
Undistributed net investment income ........ 118
Accumulated net realized loss on
investments .............................. (288)
Net unrealized depreciation on investments . (1,226)
==============
$ 3,992
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED .............. 633
==============
NET ASSET VALUE PER SHARE .................. $ 6.30
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ................................ $ 86
Interest ................................. 22
--------------
TOTAL INVESTMENT INCOME .................... 108
--------------
EXPENSES
Advisory fees ............................ 17
Administrative fees ...................... 2
--------------
TOTAL EXPENSES ............................. 19
--------------
NET INVESTMENT INCOME ...................... 89
--------------
REALIZED AND UNREALIZED LOSSES
Net realized loss on investments ......... (40)
Net change in unrealized depreciation
on investments ......................... (961)
--------------
NET REALIZED AND UNREALIZED LOSS ........... (1,001)
--------------
NET DECREASE IN NET ASSETS FROM OPERATIONS . $ (912)
==============
See notes to the financial statements.
2
<PAGE>
JNL/FIRST TRUST THE DOW TARGET 5 SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income ....................................................... $ 89 $ 29
Net realized loss on investments ............................................ (40) (248)
Net change in unrealized depreciation on investments ........................ (961) (265)
-------------- --------------
NET DECREASE IN NET ASSETS FROM OPERATIONS ..................................... (912) (484)
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 1,707 5,278
Cost of shares redeemed ...................................................... (655) (942)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 1,052 4,336
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 140 3,852
NET ASSETS BEGINNING OF PERIOD ................................................. 3,852 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 3,992 $ 3,852
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME ............................................ $ 118 $ 29
============== ==============
(1)SHARE TRANSACTIONs:
Shares sold ............................................................. 232 617
Shares redeemed ......................................................... (93) (123)
--------------- --------------
Net increase ............................................................ 139 494
=============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities ................................................. $ 1,219 $ 5,112
Proceeds from sales of securities ....................................... 103 765
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
3
<PAGE>
JNL/FIRST TRUST THE DOW TARGET 5 SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 7.79 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income ........................................................ 0.13 0.06
Net realized and unrealized losses on investments ............................ (1.62) (2.27)
---------------- ----------------
Total loss from operations ................................................... (1.49) (2.21)
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 6.30 $ 7.79
================ ================
TOTAL RETURN (A) ............................................................... (19.13)% (22.10)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 3,992 $ 3,852
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment income to average net assets (b) ..................... 4.06% 2.83%
Portfolio turnover ........................................................... 2.44% 40.15%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
4
<PAGE>
JNL/FIRST TRUST THE DOW TARGET 5 SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
COMMON STOCKS - 99.3%
AUTO MANUFACTURERS - 28.9%
General Motors Corp. 19,785 $ 1,149
AUTO PARTS & EQUIPMENT - 11.1%
Goodyear Tire & Rubber Co. 22,037 441
CHEMICALS - 20.5%
E.I. du Pont de Nemours & Co. 18,674 817
MACHINERY - 17.7%
Caterpillar Inc. 20,755 703
TOBACCO - 21.1%
Philip Morris Cos. Inc. 839
31,589
--------------
Total Common Stocks
(cost $5,175)
3,949
--------------
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
SHORT TERM INVESTMENT - 0.7%
MONEY MARKET FUND- 0.7%
Dreyfus Cash Management Plus,
6.51% (a) 28,103 $ 28
--------------
Total Short Term Investment
(cost $28) 28
--------------
TOTAL INVESTMENTS - 100%
(cost $5,203) $ 3,977
==============
--------------------------------------------------------------------------------
(a) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
5
<PAGE>
JNL/FIRST TRUST THE DOW TARGET 10 SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $15,572) ................ $ 13,489
Receivables:
Dividends and interest .................. 44
Fund shares sold ........................ 28
--------------
TOTAL ASSETS .............................. 13,561
--------------
LIABILITIES
Payables:
Advisory fees ........................... 9
Administrative fees ..................... 1
Fund shares redeemed .................... 14
--------------
TOTAL LIABILITIES ......................... 24
--------------
NET ASSETS ................................ $ 13,537
==============
NET ASSETS CONSIST OF:
Paid-in capital ........................... $ 15,688
Undistributed net investment income ....... 228
Accumulated net realized loss on
investments ............................. (296)
Net unrealized depreciation on investments (2,083)
==============
$ 13,537
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED ............. 1,784
==============
NET ASSET VALUE PER SHARE ................. $ 7.59
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ............................... $ 195
Interest ................................ 32
--------------
TOTAL INVESTMENT INCOME ................... 227
--------------
EXPENSES
Advisory fees ........................... 43
Administrative fees ..................... 5
--------------
TOTAL EXPENSES ............................ 48
--------------
NET INVESTMENT INCOME ..................... 179
--------------
REALIZED AND UNREALIZED LOSSES
Net realized loss on investments ........ (136)
Net change in unrealized depreciation
on investments ........................ (1,717)
--------------
NET REALIZED AND UNREALIZED LOSS .......... (1,853)
--------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (1,674)
==============
See notes to the financial statements.
6
<PAGE>
JNL/FIRST TRUST THE DOW TARGET 10 SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income ....................................................... $ 179 $ 49
Net realized loss on investments ............................................ (136) (160)
Net change in unrealized depreciation on investments ........................ (1,717) (366)
-------------- --------------
NET DECREASE IN NET ASSETS FROM OPERATIONS ..................................... (1,674) (477)
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 10,669 9,749
Cost of shares redeemed ...................................................... (3,244) (1,486)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 7,425 8,263
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 5,751 7,786
NET ASSETS BEGINNING OF PERIOD ................................................. 7,786 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 13,537 $ 7,786
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME ............................................ $ 228 $ 49
============== ==============
(1)SHARE TRANSACTIONs:
Shares sold ............................................................... 1,279 1,064
Shares redeemed ........................................................... (387) (172)
--------------- --------------
Net increase .............................................................. 892 892
=============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES (EXCLUDING SHORT-TERM
SECURITIES):
Purchases of securities 8,319 $9,117
Proceeds from sales of securities 889 877
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
7
<PAGE>
JNL/FIRST TRUST THE DOW TARGET 10 SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 8.73 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income ........................................................ 0.17 0.05
Net realized and unrealized losses on investments ............................ (1.21) (1.32)
---------------- ----------------
Total loss from operations ................................................... (1.14) (1.27)
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 7.59 $ 8.73
================ ================
TOTAL RETURN (A) ............................................................... (13.06)% (12.70)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 13,537 $ 7,786
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment income to average net assets (b) ..................... 3.10% 2.53%
Portfolio turnover ........................................................... 7.95% 23.32%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
8
<PAGE>
JNL/FIRST TRUST THE DOW TARGET 10 SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
COMMON STOCKS - 98.5%
AUTO MANUFACTURERS - 11.7%
General Motors Corp. 27,091 $ 1,573
AUTO PARTS & EQUIPMENT - 4.5%
Goodyear Tire & Rubber Co. 30,208 604
BANKS - 10.4%
J.P. Morgan & Co. 12,782 1,408
CHEMICALS - 8.3%
E.I. du Pont de Nemours & Co. 25,617 1,121
MACHINERY - 7.1%
Caterpillar Inc. 28,420 963
MANUFACTURING - 23.2%
Eastman Kodak Co. 25,010 1,488
Minnesota Mining & Manufacturing
Co. 19,960 1,647
-------------
3,135
OIL & GAS PRODUCERS - 24.8%
Chevron Corp. 18,492 1,568
Exxon Mobil Corp. 22,585 1,773
-------------
3,341
TOBACCO - 8.5%
Philip Morris Cos. Inc. 43,182 1,147
-------------
Total Common Stocks
(cost $15,375) 13,292
-------------
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
SHORT TERM INVESTMENT - 1.5%
MONEY MARKET FUND - 1.5%
Dreyfus Cash Management Plus,
6.51% (a) 197,273 $ 197
-------------
Total Short Term Investment
(cost $197) 197
-------------
TOTAL INVESTMENTS - 100%
(cost $15,572) $ 13,489
=============
--------------------------------------------------------------------------------
(a) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
9
<PAGE>
JNL/FIRST TRUST THE S&P TARGET 10 SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $15,064) .................. $ 14,434
Receivables:
Dividends and interest .................... 6
Fund shares sold .......................... 136
--------------
TOTAL ASSETS ................................ 14,576
--------------
LIABILITIES
Payables:
Advisory fees ............................. 9
Administrative fees ....................... 1
Fund shares redeemed ..................... 34
--------------
TOTAL LIABILITIES ........................... 44
--------------
NET ASSETS .................................. $ 14,532
==============
NET ASSETS CONSIST OF:
Paid-in capital ............................. $ 15,097
Accumulated net investment loss ............. (8)
Accumulated net realized gain on
investments ................................. 73
Net unrealized depreciation on investments .. (630)
==============
$ 14,532
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED .............. 1,467
==============
NET ASSET VALUE PER SHARE ................... $ 9.91
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ................................. $ 41
Interest .................................. 5
--------------
TOTAL INVESTMENT INCOME ..................... 46
--------------
EXPENSES
Advisory fees ............................. 50
Administrative fees ....................... 7
--------------
TOTAL EXPENSES .............................. 57
--------------
NET INVESTMENT LOSS ......................... (11)
--------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on investments .......... 32
Net change in unrealized depreciation
on investments .......................... (1,543)
--------------
NET REALIZED AND UNREALIZED LOSS ............ (1,511)
--------------
NET DECREASE IN NET ASSETS FROM OPERATIONS .. $ (1,522)
==============
See notes to the financial statements.
10
<PAGE>
JNL/FIRST TRUST THE S&P TARGET 10 SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income (loss) ................................................ $ (11) $ 3
Net realized gain on investments ............................................ 32 41
Net change in unrealized appreciation (depreciation) on investments ......... (1,543) 913
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS .......................... (1,522) 957
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 8,193 9,627
Cost of shares redeemed ...................................................... (1,331) (1,392)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 6,862 8,235
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 5,340 9,192
NET ASSETS BEGINNING OF PERIOD ................................................. 9,192 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 14,532 $ 9,192
============== ==============
UNDISTRIBUTED (ACCUMULATED) NET INVESTMENT INCOME (LOSS) ....................... $ (8) $ 3
============== ==============
(1)SHARE TRANSACTIONs:
Shares sold .............................................................. 759 965
Shares redeemed .......................................................... (123) (134)
--------------- --------------
Net increase ............................................................. 636 831
=============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchase of securities ................................................... $ 6,714 $ 9,336
Proceeds from sales of securities ........................................ 177 1,038
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
11
<PAGE>
JNL/FIRST TRUST THE S&P TARGET 10 SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 11.06 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income (loss) ................................................. (0.01) 0.01
Net realized and unrealized gains (losses) on investments .................... (1.14) 1.05
---------------- ----------------
Total income (loss) from operations .......................................... (1.15) 1.06
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 9.91 $ 11.06
================ ================
TOTAL RETURN (A) ............................................................... (10.40)% 10.60%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 14,532 $ 9,192
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment income (loss) to average net assets (b) .............. (0.16)% 0.16%
Portfolio turnover ........................................................... 1.35% 27.91%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
12
<PAGE>
JNL/FIRST TRUST THE S&P TARGET 10 SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
COMMON STOCKS - 98.9%
COMMERCIAL SERVICES - 6.6%
FedEx Corp. (a) 25,080 $ 953
COMPUTERS - 12.3%
Hewlett-Packard Co. 14,255 1,780
ELECTRONICS - 12.5%
Solectron Corp. (a) 43,053 1,803
MACHINERY - 6.1%
Ingersoll-Rand Co. 21,729 875
MANUFACTURING - 2.0%
Agilent Technologies Inc. (a) 3,857 284
METALS & MINING - 8.8%
Alcoa Inc. 43,865 1,272
OIL & GAS PRODUCERS - 15.6%
Enron Corp. 34,926 2,253
RETAIL - 17.1%
Circuit City Stores Inc. 32,539 1,080
RadioShack Corp. 29,295 1,388
-------------
2,468
SEMICONDUCTORS - 9.1%
Motorola Inc. 45,296 1,316
TELECOMMUNICATIONS - 8.8%
Sprint Corp. 24,993 1,275
-------------
Total Common Stocks
(cost $14,909) 14,279
-------------
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
SHORT TERM INVESTMENT - 1.1%
MONEY MARKET FUND - 1.1%
Dreyfus Cash Management Plus,
6.51% (b) 155,317 $ 155
-------------
Total Short Term Investment
(cost $155)
155
-------------
TOTAL INVESTMENTS - 100%
(cost $15,064) $ 14,434
=============
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
13
<PAGE>
JNL/FIRST TRUST GLOBAL TARGET 15 SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $4,270) ................. $ 3,898
Foreign currency .......................... 7
Receivables:
Dividends and interest .................. 22
Fund shares sold ........................ 28
Investment securities sold .............. 78
--------------
TOTAL ASSETS .............................. 4,033
--------------
LIABILITIES
Payables:
Advisory fees ........................... 2
Forward currency contracts .............. 1
--------------
TOTAL LIABILITIES ......................... 3
--------------
NET ASSETS ................................ $ 4,030
==============
NET ASSETS CONSIST OF:
Paid-in capital ........................... $ 4,552
Undistributed net investment income ....... 95
Accumulated net realized loss on
investments ............................... (245)
Net unrealized depreciation on investments (372)
==============
$ 4,030
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED ............. 539
==============
NET ASSET VALUE PER SHARE ................. $ 7.47
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ............................... $ 81
Interest ................................ 8
Foreign taxes withheld .................. (3)
--------------
TOTAL INVESTMENT INCOME ................... 86
--------------
EXPENSES
Advisory fees ........................... 12
Administrative fees ..................... 2
--------------
TOTAL EXPENSES ............................ 14
--------------
NET INVESTMENT INCOME ..................... 72
--------------
REALIZED AND UNREALIZED LOSSES
Net realized loss on investments ........ (97)
Net change in unrealized depreciation
on investments ........................ (468)
--------------
NET REALIZED AND UNREALIZED LOSS .......... (565)
--------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (493)
==============
See notes to the financial statements.
14
<PAGE>
JNL/FIRST TRUST GLOBAL TARGET 15 SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income ....................................................... $ 72 $ 23
Net realized loss on investments ............................................ (97) (148)
Net change in unrealized appreciation (depreciation) on investments ......... (468) 96
-------------- --------------
NET DECREASE IN NET ASSETS FROM OPERATIONS ..................................... (493) (29)
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 4,463 3,056
Cost of shares redeemed ...................................................... (1,974) (993)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 2,489 2,063
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 1,996 2,034
NET ASSETS BEGINNING OF PERIOD ................................................. 2,034 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 4,030 $ 2,034
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME ............................................ $ 95 $ 23
============== ==============
(1)SHARE TRANSACTIONs:
Shares sold ............................................................... 567 341
Shares redeemed ........................................................... (254) (115)
-------------- --------------
Net increase .............................................................. 313 226
============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities ................................................... $ 2,896 $ 2,843
Proceeds from sales of securities ......................................... 595 939
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
15
<PAGE>
JNL/FIRST TRUST GLOBAL TARGET 15 SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.99 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income 0.07 0.11
Net realized and unrealized losses on investments (1.59) (1.12)
---------------- ----------------
Total loss from operations (1.52) (1.01)
---------------- ----------------
NET ASSET VALUE, END OF PERIOD $ 7.47 $ 8.99
================ ================
TOTAL RETURN (A) (16.91)% (10.10)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 4,030 $ 2,034
Ratio of expenses to average net assets (b) 0.90% 0.90%
Ratio of net investment income to average net assets (b) 4.64% 3.44%
Portfolio turnover 19.93% 80.54%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
16
<PAGE>
JNL/FIRST TRUST GLOBAL TARGET 15 SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
COMMON STOCKS - 92.1%
AIRLINES - 7.1%
British Airways Plc 48,200 $ 277
AUTO MANUFACTURERS - 7.4%
General Motors Corp. 4,988 290
AUTO PARTS & EQUIPMENT - 2.9%
Goodyear Tire & Rubber Co. 5,561 111
BUILDING MATERIALS - 8.2%
Blue Circle Industries Plc 49,364 319
CHEMICALS - 5.3%
E.I. du Pont de Nemours & Co. 4,706 206
FOOD - 6.8%
Tate & Lyle Plc 53,164 266
INSURANCE - 6.2%
Royal & Sun Alliance Insurance
Group Plc 37,232 242
MACHINERY - 4.5%
Caterpillar Inc. 5,231 177
REAL ESTATE - 26.0%
Amoy Properties Ltd. 332,819 224
Great Eagle Holdings Ltd. 178,783 282
Henderson Investment Ltd. 449,640 284
Hysan Development Co. Ltd. 211,061 222
--------------
1,012
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
RETAIL - 5.4%
Marks & Spencer Plc 59,708 $ 210
TELECOMMUNICATIONS - 6.9%
Cable & Wireless HKT Ltd. 121,983 268
TOBACCO - 5.4%
Philip Morris Cos. Inc. 7,952 212
--------------
Total Common Stocks
(cost $3,962) 3,590
--------------
SHORT TERM INVESTMENTS - 7.9%
MONEY MARKET FUNDS - 7.9%
Dreyfus Cash Management Plus,
6.51% (a) 199,484 199
Dreyfus Government Cash
Management, 6.25% (a) 108,802 109
--------------
Total Short Term Investments
(cost $308) 308
--------------
TOTAL INVESTMENTS - 100%
(cost $4,270) $ 3,898
==============
--------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS BY COUNTRY, JUNE 30, 2000:
% OF INVESTMENT MARKET VALUE
COUNTRY SECURITIES (000'S)
-------------------------------------------------------- ------------------
Hong Kong 32.9 % $ 1,281
United Kingdom 33.6 % 1,313
United States 33.5 % 1,304
------------------- ------------------
TOTAL 100.0 % $ 3,898
=================== ==================
--------------------------------------------------------------------------------
(a) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
17
<PAGE>
JNL/FIRST TRUST TARGET 25 SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $3,281) ................... $ 2,980
Receivables:
Dividends and interest .................... 6
Fund shares sold ......................... 4
--------------
TOTAL ASSETS ................................ 2,990
--------------
LIABILITIES
Payables:
Advisory fees ............................. 2
Fund shares redeemed ...................... 14
--------------
TOTAL LIABILITIES ........................... 16
--------------
NET ASSETS .................................. $ 2,974
==============
NET ASSETS CONSIST OF:
Paid-in capital ............................. $ 3,445
Undistributed net investment income ......... 48
Accumulated net realized loss on
investments ................................. (218)
Net unrealized depreciation on investments .. (301)
==============
$ 2,974
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED .............. 404
==============
NET ASSET VALUE PER SHARE ................... $ 7.37
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ................................. $ 40
Interest .................................. 1
--------------
TOTAL INVESTMENT INCOME ..................... 41
--------------
EXPENSES
Advisory fees ............................. 9
Administrative fees ....................... 1
--------------
TOTAL EXPENSES .............................. 10
--------------
NET INVESTMENT INCOME ....................... 31
--------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on investments .......... -
Net change in unrealized depreciation
on investments .......................... (297)
--------------
NET REALIZED AND UNREALIZED LOSS ............ (297)
--------------
NET DECREASE IN NET ASSETS FROM OPERATIONS .. $ (266)
==============
See notes to the financial statements.
18
<PAGE>
JNL/FIRST TRUST TARGET 25 SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
--------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income ....................................................... $ 31 $ 17
Net realized gain (loss) on investments ..................................... - (218)
Net change in unrealized depreciation on investments ........................ (297) (4)
--------------- --------------
NET DECREASE IN NET ASSETS FROM OPERATIONS ..................................... (266) (205)
--------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 2,024 2,893
Cost of shares redeemed ...................................................... (642) (830)
--------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 1,382 2,063
--------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 1,116 1,858
NET ASSETS BEGINNING OF PERIOD ................................................. 1,858 -
--------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 2,974 $ 1,858
=============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME ............................................ $ 48 $ 17
=============== ==============
(1)SHARE TRANSACTIONS:
Shares sold .............................................................. 264 328
Shares redeemed .......................................................... (84) (104)
--------------- --------------
Net increase ............................................................. 180 224
=============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities .................................................. $ 1,460 $ 2,833
Proceeds from sales of securities ........................................ - 799
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
19
<PAGE>
JNL/FIRST TRUST TARGET 25 SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 8.30 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income ........................................................ 0.04 0.08
Net realized and unrealized losses on investments ............................ (0.97) (1.78)
---------------- ----------------
Total loss from operations ................................................... (0.93) (1.70)
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 7.37 $ 8.30
================ ================
TOTAL RETURN (A) ............................................................... (11.20)% (17.00)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 2,974 $ 1,858
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment income to average net assets (b) ..................... 2.48% 2.48%
Portfolio turnover ........................................................... - 66.31%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
20
<PAGE>
JNL/FIRST TRUST TARGET 25 SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
COMMON STOCKS - 99.9%
AEROSPACE & DEFENSE - 15.7%
B.F. Goodrich Co. 4,044 $ 138
GenCorp Inc. 6,641 53
Lockheed Martin Corp. 4,507 112
Northrop Grumman Corp. 2,467 163
--------------
466
AUTO PARTS & EQUIPMENT - 6.8%
Dana Corp. 3,437 73
TRW Inc. 2,968 129
--------------
202
BUILDING MATERIALS - 1.4%
Omnova Solutions Inc. 6,659 42
CHEMICALS - 3.9%
Dow Chemical Co. 3,804 115
COMMERCIAL SERVICES - 2.1%
Wallace Computer Services Inc. 6,412 63
ELECTRICAL COMPONENTS & EQUIPMENT - 0.1%
Lanier Worldwide Inc. (a) 4,242 4
ELECTRONICS - 2.3%
Thomas & Betts Corp. 3,550 68
FOOD - 18.9%
ConAgra Inc. 6,105 116
Flowers Industries Inc. 7,841 156
General Mills Inc. 4,047 155
Weis Markets Inc. 4,180 137
--------------
564
FOREST PRODUCTS & PAPER - 14.6%
Abitibi-Consolidated Inc. 14,254 134
Louisiana-Pacific Corp. 7,098 77
Rayonier Inc. 3,302 118
Weyerhaeuser Co. 2,463 106
--------------
435
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
HAND & MACHINE TOOLS - 8.1%
Snap-On Inc. 4,460 $ 119
Stanley Works 5,166 123
--------------
242
MANUFACTURING - 13.5%
Cooper Industries Inc. 3,105 101
Dexter Corp. 3,872 186
PPG Industries Inc. 2,622 116
--------------
403
OFFICE & BUSINESS EQUIPMENT - 4.7%
Harris Corp. 4,269 140
OIL & GAS PRODUCERS - 4.3%
USX-Marathon Group Inc. 5,087 127
RETAIL - 3.5%
American Greetings Corp. 5,485 105
--------------
Total Common Stocks
(cost $3,277) 2,976
--------------
SHORT TERM INVESTMENT - 0.1%
MONEY MARKET FUND - 0.1%
Dreyfus Cash Management Plus,
6.51% (b) 4,136 4
--------------
Total Short Term Investment
(cost $4) 4
--------------
TOTAL INVESTMENTS - 100%
(cost $3,281) $ 2,980
==============
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
21
<PAGE>
JNL/FIRST TRUST TARGET SMALL-CAP SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $5,042) ................... $ 5,671
Receivables:
Fund shares sold .......................... 24
--------------
TOTAL ASSETS ................................ 5,695
--------------
LIABILITIES
Payables:
Advisory fees ............................. 3
--------------
TOTAL LIABILITIES ........................... 3
--------------
NET ASSETS .................................. $ 5,692
==============
NET ASSETS CONSIST OF:
Paid-in capital ............................. $ 4,829
Accumulated net investment loss ............. (15)
Accumulated net realized gain on
investments 249
Net unrealized appreciation on investments .. 629
==============
$ 5,692
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED .............. 414
==============
NET ASSET VALUE PER SHARE ................... $ 13.76
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ................................. $ 2
Interest .................................. 4
--------------
TOTAL INVESTMENT INCOME ..................... 6
--------------
EXPENSES
Advisory fees ............................. 16
Administrative fees ....................... 2
--------------
TOTAL EXPENSES .............................. 18
--------------
NET INVESTMENT LOSS ......................... (12)
--------------
REALIZED AND UNREALIZED GAINS
Net realized gain on investments .......... 97
Net change in unrealized appreciation
on investments .......................... 259
--------------
NET REALIZED AND UNREALIZED GAIN ............ 356
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS .. $ 344
==============
See notes to the financial statements.
22
<PAGE>
JNL/FIRST TRUST TARGET SMALL-CAP SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment loss ......................................................... $ (12) $ (3)
Net realized gain on investments ............................................ 97 152
Net change in unrealized appreciation on investments ........................ 259 370
-------------- --------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ..................................... 344 519
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 4,708 2,874
Cost of shares redeemed ...................................................... (1,460) (1,293)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 3,248 1,581
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 3,592 2,100
NET ASSETS BEGINNING OF PERIOD ................................................. 2,100 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 5,692 $ 2,100
============== ==============
ACCUMULATED NET INVESTMENT LOSS ................................................ $ (15) $ (3)
============== ==============
(1)SHARE TRANSACTIONS:
Shares sold ............................................................... 352 283
Shares redeemed ........................................................... (108) (113)
-------------- --------------
Net increase .............................................................. 244 170
============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities ................................................... $ 3,500 $ 2,890
Proceeds from sales of securities ......................................... 340 1,330
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
23
<PAGE>
JNL/FIRST TRUST TARGET SMALL-CAP SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 12.38 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment loss .......................................................... (0.02) (0.02)
Net realized and unrealized gains on investments ............................. 1.40 2.40
---------------- ----------------
Total income from operations ................................................. 1.38 2.38
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 13.76 $ 12.38
================ ================
TOTAL RETURN (A) ............................................................... 11.15% 23.80%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 5,692 $ 2,100
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment loss to average net assets (b) ....................... (0.54)% (0.39)%
Portfolio turnover ........................................................... 8.18% 102.50%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
24
<PAGE>
JNL/FIRST TRUST TARGET SMALL-CAP SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
COMMON STOCKS -
98.7%
ADVERTISING - 5.7%
Insight Enterprises Inc. (a) 5,418 $ 321
AEROSPACE & DEFENSE - 3.3%
REMEC Inc. (a) 4,530 190
AUTO PARTS & EQUIPMENT - 0.8%
Sonic Automotive Inc. (a) 4,266 46
BUILDING MATERIALS - 1.4%
Elcor Corp. 3,572 82
CHEMICALS - 0.5%
Geon Co. 1,514 28
COMMERCIAL SERVICES - 7.2%
NCO Group Inc. (a) 3,591 83
Plexus Corp. (a) 1,939 219
Workflow Management Inc. (a) 8,873 105
------------
407
COMPUTERS - 2.9%
Bell & Howell Co. (a) 3,318 80
InterVoice-Brite Inc. (a) 13,089 86
------------
166
DIVERSIFIED FINANCIAL SERVICES -
3.1%
Investment Technology Group Inc.
(a) 1,214 48
Investors Financial Services
Corp. 3,220 128
------------
176
ELECTRICAL COMPONENTS & EQUIPMENT - 5.2%
Areoflex Inc. (a) 3,548 176
Artesyn Technologies Inc. (a) 4,322 120
------------
296
ELECTRONICS - 5.2%
Kemet Corp. (a) 11,662 292
ENGINEERING & CONSTRUCTION - 3.1%
Granite Construction Inc. 2,776 68
Insituform Technologies Inc. (a) 4,000 109
------------
177
FOOD - 1.7%
Performance Food Group Co. (a) 2,962 95
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
HEALTHCARE - 3.7%
CONMED Corp. (a) 1,886 $ 49
ResMed Inc. (a) 6,009 161
------------
210
MANUFACTURING - 2.3%
Dionex Corp. (a) 3,633 97
Manitowoc Co. Inc. 1,248 33
------------
130
MEDIA - 1.1%
Playboy Enterprises - Class B (a) 4,798 62
OFFICE & BUSINESS EQUIPMENT - 3.6%
Black Box Corp. (a) 2,561 203
PHARMACEUTICALS - 4.7%
Abbott Laboratories 3,215 143
48
Advance Paradigm Inc. (a) 3,303 68
Alpharma Inc. - Class A 866 54
------------
265
RETAIL - 3.1%
Cheesecake Factory Inc. (a) 3,816 105
Sunglass Hut International Inc.
(a) 4,675 38
Urban Outfitters Inc. (a) 3,928 35
------------
178
SEMICONDUCTORS - 7.0%
American Xtal Technology Inc. (a) 5,912 256
Methode Electronics Inc. 3,683 142
------------
398
SOFTWARE - 25.5%
Advent Software Inc. (a) 4,209 271
Informix Corp. (a) 15,009 112
Kronos Inc. (a) 2,051 53
Micromuse Inc. (a) 5,596 926
Project Software & Development
Inc. (a) 4,597 83
------------
1,445
TELECOMMUNICATIONS - 7.6%
AVT Corp. (a) 2,862 21
Concord Communications Inc. (a) 3,358 134
Nortel Networks Corp. 4,042 276
------------
431
------------
Total Common Stocks
(cost $4,969) 5,598
------------
See notes to the financial statements.
25
<PAGE>
JNL/FIRST TRUST TARGET SMALL-CAP SERIES
Schedule of Investments (Unaudited) (continued)
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
-----------------------------------------------------------
SHORT TERM INVESTMENT - 1.3%
MONEY MARKET FUND - 1.3%
Dreyfus Cash Management Plus,
6.51% (b) 72,889 $ 73
-----------
Total Short Term Investment
(cost $73) 73
-----------
TOTAL INVESTMENTS - 100%
(cost $5,042) $ 5,671
===========
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
26
<PAGE>
JNL/FIRST TRUST TECHNOLOGY SECTOR SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $21,206) ............... $ 22,450
Receivables:
Dividends and interest ................. 2
Fund shares sold ....................... 64
--------------
TOTAL ASSETS ............................. 22,516
--------------
LIABILITIES
Payables:
Advisory fees .......................... 13
Administrative fees .................... 2
Fund shares redeemed ................... 38
Investment securities purchased ........ 126
--------------
TOTAL LIABILITIES ........................ 179
--------------
NET ASSETS ............................... $ 22,337
==============
NET ASSETS CONSIST OF:
Paid-in capital .......................... $ 17,506
Accumulated net investment loss .......... (59)
Accumulated net realized gain on
investments .............................. 3,646
Net unrealized appreciation on investments 1,244
==============
$ 22,337
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED ........... 1,170
==============
NET ASSET VALUE PER SHARE ................ $ 19.10
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends .............................. $ 6
Interest ............................... 9
--------------
TOTAL INVESTMENT INCOME .................. 15
--------------
EXPENSES
Advisory fees .......................... 60
Administrative fees .................... 8
--------------
TOTAL EXPENSES ........................... 68
--------------
NET INVESTMENT LOSS ...................... (53)
--------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on investments ....... 3,166
Net change in unrealized depreciation
on investments ....................... (54)
--------------
NET REALIZED AND UNREALIZED GAIN ......... 3,112
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,059
==============
See notes to the financial statements.
27
<PAGE>
JNL/FIRST TRUST TECHNOLOGY SECTOR SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment loss ......................................................... $ (53) $ (6)
Net realized gain on investments ............................................ 3,166 480
Net change in unrealized appreciation (depreciation) on investments ......... (54) 1,298
-------------- --------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ..................................... 3,059 1,772
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 14,077 7,758
Cost of shares redeemed ...................................................... (2,633) (1,696)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 11,444 6,062
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 14,503 7,834
NET ASSETS BEGINNING OF PERIOD ................................................. 7,834 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 22,337 $ 7,834
============== ==============
ACCUMULATED NET INVESTMENT LOSS ................................................ $ (59) $ (6)
============== ==============
(1)SHARE TRANSACTIONs:
Shares sold ............................................................... 812 623
Shares redeemed ........................................................... (151) (114)
-------------- --------------
Net increase .............................................................. 661 509
============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities ................................................... $ 21,029 $ 7,594
Proceeds from sales of securities ......................................... 9,691 1,591
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
28
<PAGE>
JNL/FIRST TRUST TECHNOLOGY SECTOR SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 15.39 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment loss .......................................................... (0.04) (0.01)
Net realized and unrealized gains on investments ............................. 3.75 5.40
---------------- ----------------
Total income from operations ................................................. 3.71 5.39
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 19.10 $ 15.39
================ ================
TOTAL RETURN (A) ............................................................... 24.11% 53.90%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 22,337 $ 7,834
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment loss to average net assets (b) ....................... (0.67)% (0.40)%
Portfolio turnover ........................................................... 61.51% 55.71%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
29
<PAGE>
JNL/FIRST TRUST TECHNOLOGY SECTOR SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
COMMON STOCKS - 99.0%
COMPUTERS - 29.3%
3Com Corp. (a) 11,122 $ 641
Check Point Software
Technologies Ltd. (a) 3,850 815
Cisco Systems Inc. (a) 11,397 721
Dell Computer Corp. (a) 13,234 653
EMC Corp. (a) 11,580 891
Gateway Inc. (a) 12,334 700
Hewlett-Packard Co. 5,308 663
International Business Machines
Corp. 6,769 742
Sun Microsystems Inc. (a) 8,240 749
-------------
6,575
ELECTRONICS - 6.2%
Solectron Corp. (a) 17,340 726
Vitesse Semiconductor Corp. (a) 8,984 661
-------------
1,387
MANUFACTURING - 0.7%
Agilent Technologies (a) 2,140 158
SEMICONDUCTORS - 26.0%
Altera Corp. (a) 8,886 906
Applied Materials Inc. (a) 8,117 736
Intel Corp. 5,665 757
National Semiconductor Corp. (a) 12,105 687
Novellus Systems Inc. (a) 12,441 704
PMC-Sierra Inc. (a) 3,691 656
STMicroelectrics NV - NYS 11,993 770
Texas Instruments Inc. 9,135 627
-------------
5,843
SOFTWARE - 15.9%
BMC Software Inc. (a) 14,850 542
Microsoft Corp. (a) 7,854 628
Oracle Corp. (a) 9,767 821
Seagate Technology Inc. (a) 11,588 637
Siebel Systems (a) 5,765 943
-------------
3,571
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
TELECOMMUNICATIONS - 20.9%
ADC Telecommunications Inc. (a) 15,425 $ 1,294
JDS Uniphase Corp. (a) 6,286 754
Lucent Technologies Inc. 11,384 674
Nokia Oyj - ADR 15,134 756
Qualcomm Inc. (a) 5,905 354
Tellabs Inc. (a) 12,655 866
-------------
4,698
-------------
Total Common Stocks
(cost $20,988) 22,232
-------------
SHORT TERM INVESTMENT - 1.0%
MONEY MARKET FUND - 1.0%
Dreyfus Cash Management Plus,
6.51% (b) 218,356 218
-------------
Total Short Term Investment
(cost $218) 218
-------------
TOTAL INVESTMENTS - 100%
(cost $21,206) $ 22,450
=============
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
30
<PAGE>
JNL/FIRST TRUST PHARMACEUTICAL/HEALTHCARE SECTOR SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $9,776) ................. $ 11,114
Receivables:
Dividends and interest .................. 3
Fund shares sold ........................ 23
--------------
TOTAL ASSETS .............................. 11,140
--------------
LIABILITIES
Payables:
Advisory fees ........................... 6
Administrative fees ..................... 1
--------------
TOTAL LIABILITIES ......................... 7
--------------
NET ASSETS ................................ $ 11,133
==============
NET ASSETS CONSIST OF:
Paid-in capital ........................... $ 9,375
Undistributed net investment income ....... 12
Accumulated net realized gain on
investments ............................... 408
Net unrealized appreciation on investments 1,338
==============
$ 11,133
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED ............ 922
==============
NET ASSET VALUE PER SHARE ................. $ 12.08
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ............................... $ 39
Interest ................................ 5
Foreign taxes withheld .................. (1)
--------------
TOTAL INVESTMENT INCOME ................... 43
--------------
EXPENSES
Advisory fees ........................... 28
Administrative fees ..................... 4
--------------
TOTAL EXPENSES ............................ 32
--------------
NET INVESTMENT INCOME ..................... 11
--------------
REALIZED AND UNREALIZED GAINS
Net realized gain on investments ........ 488
Net change in unrealized appreciation
on investments ........................ 1,226
--------------
NET REALIZED AND UNREALIZED GAIN .......... 1,714
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,725
==============
See notes to the financial statements.
31
<PAGE>
JNL/FIRST TRUST PHARMACEUTICAL/HEALTHCARE SECTOR SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income ....................................................... $ 11 $ 1
Net realized gain (loss) on investments ..................................... 488 (80)
Net change in unrealized appreciation on investments ........................ 1,226 112
-------------- --------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ..................................... 1,725 33
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 6,599 5,116
Cost of shares redeemed ...................................................... (1,237) (1,103)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 5,362 4,013
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 7,087 4,046
NET ASSETS BEGINNING OF PERIOD ................................................. 4,046 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 11,133 $ 4,046
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME ............................................ $ 12 $ 1
============== ==============
(1)SHARE TRANSACTIONs:
Shares sold ............................................................... 622 532
Shares redeemed ........................................................... (115) (117)
-------------- --------------
Net increase 507 415
............................................................................... ============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities ................................................... $ 9,685 $ 5,109
Proceeds from sales of securities ......................................... 4,317 1,127
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
32
<PAGE>
JNL/FIRST TRUST PHARMACEUTICAL/HEALTHCARE SECTOR SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 9.74 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income ........................................................ 0.01 -
Net realized and unrealized gains (losses) on investments .................... 2.33 (0.26)
---------------- ----------------
Total income (loss) from operations .......................................... 2.34 (0.26)
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 12.08 $ 9.74
================ ================
TOTAL RETURN (A) ............................................................... 24.02% 2.60%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 11,133 $ 4,046
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment income to average net assets (b) ..................... 0.28% 0.15%
Portfolio turnover ........................................................... 57.79% 58.91%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
33
<PAGE>
JNL/FIRST TRUST PHARMACEUTICAL/HEALTHCARE SECTOR SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
COMMON STOCKS - 99.8%
BIOTECHNOLOGY - 15.2%
Amgen Inc. (a) 6,517 $ 458
Biogen Inc. (a) 4,770 308
Chiron Corp. (a) 9,162 435
Genzyme Corp. (a) 8,222 489
--------------
1,690
HEALTHCARE - 12.1%
Becton, Dickinson & Co. 12,216 350
Guidant Corp. (a) 5,498 272
Health Management Associates
Inc. (a) 28,402 371
Medtronic Inc. 7,088 353
--------------
1,346
PHARMACEUTICALS - 72.5%
Abbott Laboratories 11,169 498
Andrx Corp. (a) 8,592 549
Bristol-Myers Squibb Co. 7,151 417
Cardinal Health Inc. 8,071 597
COR Therapeutics Inc. (a) 5,405 461
Elan Corp. Plc - ADR (a) 8,563 415
Eli Lilly & Co. 6,222 621
Glaxo Wellcome Plc - ADR 6,769 391
IDEC Pharmaceuticals Corp. (a) 3,552 417
Immunex Corp. (a) 7,569 374
Johnson & Johnson 4,772 486
MedImmune Inc. (a) 7,029 520
Merck & Co. Inc. 6,133 470
Novartis - ADR 11,839 474
Pfizer Inc. 10,819 519
Roche Holdings AG - ADR 3,428 335
Schering-Plough Corp. 10,214 516
--------------
8,060
--------------
Total Common Stocks
(cost $9,758) 11,096
--------------
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
SHORT TERM INVESTMENT - 0.2%
MONEY MARKET FUND - 0.2%
Dreyfus Cash Management Plus,
6.51% (b) 18,048 $ 18
--------------
Total Short Term Investment
(cost $18) 18
--------------
TOTAL INVESTMENTS - 100%
(cost $9,776) $ 11,114
==============
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
34
<PAGE>
JNL/FIRST TRUST FINANCIAL SECTOR SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $5,290) ................ $ 5,555
Receivables:
Dividends and interest ................. 7
Fund shares sold ....................... 27
--------------
TOTAL ASSETS ............................. 5,589
--------------
LIABILITIES
Payables:
Advisory fees .......................... 4
--------------
TOTAL LIABILITIES ........................ 4
--------------
NET ASSETS ............................... $ 5,585
==============
NET ASSETS CONSIST OF:
Paid-in capital .......................... $ 5,495
Undistributed net investment income 20
Accumulated net realized loss on
investments ............................. (195)
Net unrealized appreciation on investments 265
==============
$ 5,585
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED ........... 608
==============
NET ASSET VALUE PER SHARE ................ $ 9.18
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends .............................. $ 29
Interest ............................... 3
--------------
TOTAL INVESTMENT INCOME .................. 32
--------------
EXPENSES
Advisory fees .......................... 16
Administrative fees .................... 2
--------------
TOTAL EXPENSES ........................... 18
--------------
NET INVESTMENT INCOME .................... 14
--------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss on investments ....... (55)
Net change in unrealized appreciation
on investments ....................... 239
--------------
NET REALIZED AND UNREALIZED GAIN ......... 184
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 198
==============
See notes to the financial statements.
35
<PAGE>
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income ....................................................... $ 14 $ 6
Net realized loss on investments ............................................ (55) (140)
Net change in unrealized appreciation on investments ........................ 239 26
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS .......................... 198 (108)
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 3,542 3,555
Cost of shares redeemed ...................................................... (651) (951)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 2,891 2,604
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 3,089 2,496
NET ASSETS BEGINNING OF PERIOD ................................................. 2,496 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 5,585 $ 2,496
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME ............................................ $ 20 $ 6
============== ==============
(1)SHARE TRANSACTIONs:
Shares sold ............................................................... 402 387
Shares redeemed ........................................................... (72) (109)
-------------- --------------
Net increase .............................................................. 330 278
============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities ................................................... $ 4,002 $ 3,434
Proceeds from sales of securities ......................................... 1,107 868
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
36
<PAGE>
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 8.97 $ 10.00
---------------- ----------------
INCOME FROM OPERATIONS:
Net investment income ........................................................ 0.01 0.02
Net realized and unrealized gains (losses) on investments .................... 0.20 (1.05)
---------------- ----------------
Total income (loss) from operations .......................................... 0.21 (1.03)
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 9.18 $ 8.97
================ ================
TOTAL RETURN (A) ............................................................... 2.34% (10.30)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 5,585 $ 2,496
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment income to average net assets (b) ..................... 0.67% 0.73%
Portfolio turnover ........................................................... 26.65% 61.54%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
37
<PAGE>
JNL/FIRST TRUST FINANCIAL SECTOR SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
COMMON STOCKS - 99.6%
BANKS - 29.8%
Bank of America Corp. 3,553 $ 153
Chase Manhattan Corp. 3,462 159
Firstar Corp. 8,596 181
Fleet Boston Financial Corp. 5,139 175
KeyCorp 8,084 142
Mellon Financial Corp. 5,267 192
Northern Trust Corp. 3,346 218
State Street Corp. 2,456 260
Wells Fargo Co. 2,036 173
-------------
1,653
DIVERSIFIED FINANCIAL SERVICES -
54.0%
American Express Co. 3,258 170
Capital One Financial Corp. 3,774 168
Charles Schwab Corp. 7,087 238
Citigroup Inc. 3,260 196
Donaldson Lufkin & Jenrette
Inc. (a) 3,679 156
E*Trade Group Inc. 6,667 110
Eaton Vance Corp. 4,763 220
Goldman Sachs Group Inc. 1,957 186
Household International Inc. 4,925 205
Knight Trading Group Inc. (a) 3,835 114
Lehman Brothers Holdings Inc. 2,123 201
MBNA Corp. 6,616 179
Merrill Lynch & Co. Inc. 2,168 249
Morgan Stanley Dean Witter & Co. 2,549 212
Providian Financial Corp. 2,011 181
T. Rowe Price Associates 5,010 214
-------------
2,999
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
HOLDING COMPANIES - DIVERSIFIED -
1.7%
Ameritrade Holding Corp. - Class
A (a) 8,286 $ 96
INSURANCE - 14.1%
AFLAC Inc. 3,858 177
American International Group Inc. 1,663 195
Marsh & McLennan Cos. Inc. 1,903 199
Nationwide Financial Services
Inc. -
Class A 6,415 212
-------------
783
-------------
Total Common Stocks
(cost $5,266) 5,531
-------------
SHORT TERM INVESTMENT - 0.4%
MONEY MARKET FUND - 0.4%
Dreyfus Cash Management Plus,
6.51% (b) 23,985 24
-------------
Total Short Term Investment
(cost $24) 24
-------------
TOTAL INVESTMENTS - 100%
(cost $5,290) $ 5,555
=============
--------------------------------------------------------------------------------
(a) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
(b) Non-income producing security.
See notes to the financial statements.
38
<PAGE>
JNL/FIRST TRUST ENERGY SECTOR SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $2,238) .................. $ 2,591
Receivables:
Dividends and interest ................... 4
Fund shares sold ........................ 3
--------------
TOTAL ASSETS ............................... 2,598
--------------
LIABILITIES
Payables:
Advisory fees ............................ 2
--------------
TOTAL LIABILITIES .......................... 2
--------------
NET ASSETS $ 2,596
==============
NET ASSETS CONSIST OF:
Paid-in capital ............................ $ 2,254
Undistributed net investment income ........ 8
Accumulated net realized loss on ...........
investments .............................. (19)
Net unrealized appreciation on investments 353
==============
$ 2,596
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED ............. 203
==============
NET ASSET VALUE PER SHARE .................. $ 12.77
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ................................ $ 10
Interest ................................. 2
--------------
TOTAL INVESTMENT INCOME .................... 12
--------------
EXPENSES
Advisory fees ............................ 6
Administrative fees ...................... 1
--------------
TOTAL EXPENSES ............................. 7
--------------
NET INVESTMENT INCOME ...................... 5
--------------
REALIZED AND UNREALIZED GAINS
Net realized gain on investments ......... 28
Net change in unrealized appreciation
on investments ......................... 314
--------------
NET REALIZED AND UNREALIZED GAIN ........... 342
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS . $ 347
==============
See notes to the financial statements.
39
<PAGE>
JNL/FIRST TRUST ENERGY SECTOR SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income ....................................................... $ 5 $ 3
Net realized gain (loss) on investments ..................................... 28 (47)
Net change in unrealized appreciation on investments ........................ 314 39
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS .......................... 347 (5)
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 1,985 1,747
Cost of shares redeemed ...................................................... (498) (980)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 1,487 767
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 1,834 762
NET ASSETS BEGINNING OF PERIOD ................................................. 762 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 2,596 $ 762
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME ............................................ $ 8 $ 3
============== ==============
(1)SHARE TRANSACTIONs:
Shares sold ............................................................... 172 176
Shares redeemed ........................................................... (43) (102)
-------------- --------------
Net increase .............................................................. 129 74
============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities ................................................... $ 1,731 $ 1,733
Proceeds from sales of securities ......................................... 264 964
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
40
<PAGE>
JNL/FIRST TRUST ENERGY SECTOR SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 10.27 $ 10.00
---------------- ----------------
INCOME FROM OPERATIONS:
Net investment income ........................................................ - 0.04
Net realized and unrealized gains on investments ............................. 2.50 0.23
---------------- ----------------
Total income from operations ................................................. 2.50 0.27
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 12.77 $ 10.27
================ ================
TOTAL RETURN (A) ............................................................... 24.34% 2.70%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 2,596 $ 762
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment income to average net assets (b) ..................... 0.64% 0.47%
Portfolio turnover ........................................................... 16.28% 103.06%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
41
<PAGE>
JNL/FIRST TRUST ENERGY SECTOR SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
COMMON STOCKS - 99.2%
MANUFACTURING - 1.4%
Grant Prideco Inc. (a) 1,449 $ 36
OIL & GAS PRODUCERS - 97.8%
Barrett Resources Corp. (a) 2,837 86
BJ Services Co. (a) 2,006 125
BP Amoco Plc - ADR 1,358 77
Burlington Resources Inc. 2,464 94
Chevron Corp. 944 80
El Paso Energy Corp. 2,047 104
ENI SPA - ADR 1,475 86
Enron Corp. 1,825 118
EOG Resources Inc. 4,735 159
Exxon Mobil Corp. 996 78
Global Marine Inc. (a) 5,004 141
Halliburton Co. 2,083 98
Nabors Industries Inc. (a) 2,737 114
Noble Drilling Corp. (a) 2,560 106
Royal Dutch Petroleum Co. - NYS 1,337 82
Santa Fe International Corp. 3,291 115
Schlumberger Ltd. 1,550 116
Texaco Inc. 1,500 80
Tidewater Inc. 2,413 87
Tosco Corp. 3,006 85
Total Fina SA - ADR 1,215 94
Transocean Sedco Forex Inc. 2,455 131
USX - Marathon Group 3,237 81
Vastar Resources Inc. 1,364 112
Weatherford International Inc.
(a) 2,140 85
--------------
2,534
--------------
Total Common Stocks
(cost $2,217) 2,570
--------------
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
SHORT TERM INVESTMENT - 0.8%
MONEY MARKET FUND - 0.8%
Dreyfus Cash Management Plus,
6.51% (b) 21,303 $ 21
--------------
Total Short Term Investment
(cost $21) 21
--------------
TOTAL INVESTMENTS - 100%
(cost $2,238) $ 2,591
==============
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
42
<PAGE>
JNL/FIRST TRUST LEADING BRANDS SECTOR SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $3,170) $ 3,220
Receivables:
Dividends and interest 3
Fund shares sold 11
--------------
TOTAL ASSETS 3,234
--------------
LIABILITIES
Payables:
Advisory fees ........................... 2
Investment securities purchased ......... 140
--------------
TOTAL LIABILITIES ......................... 142
--------------
NET ASSETS ................................ $ 3,092
==============
NET ASSETS CONSIST OF:
Paid-in capital ........................... $ 3,084
Undistributed net investment income ....... 12
Accumulated net realized loss on
investments ............................... (54)
Net unrealized appreciation on investments 50
==============
$ 3,092
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED ............ 327
==============
NET ASSET VALUE PER SHARE ................. $ 9.46
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ............................... $ 15
Interest ................................ 2
--------------
TOTAL INVESTMENT INCOME ................... 17
--------------
EXPENSES
Advisory fees ........................... 9
Administrative fees ..................... 1
--------------
TOTAL EXPENSES ............................ 10
--------------
NET INVESTMENT INCOME ..................... 7
--------------
REALIZED AND UNREALIZED GAINS
Net realized gain on investments ........ 17
Net change in unrealized appreciation
on investments ........................ 19
--------------
NET REALIZED AND UNREALIZED GAIN .......... 36
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 43
==============
See notes to the financial statements.
43
<PAGE>
JNL/FIRST TRUST LEADING BRANDS SECTOR SERIES
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income ....................................................... $ 7 $ 5
Net realized gain (loss) on investments ..................................... 17 (71)
Net change in unrealized appreciation on investments ........................ 19 31
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS .......................... 43 (35)
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 1,629 2,722
Cost of shares redeemed ...................................................... (253) (1,014)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 1,376 1,708
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 1,419 1,673
NET ASSETS BEGINNING OF PERIOD ................................................. 1,673 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 3,092 $ 1,673
============== ==============
UNDISTRIBUTED NET INVESTMENT INCOME ............................................ $ 12 $ 5
============== ==============
(1)SHARE TRANSACTIONS:
Shares sold ............................................................... 181 282
Shares redeemed ........................................................... (29) (107)
-------------- --------------
Net increase .............................................................. 152 175
============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities ................................................... $ 1,947 $ 2,856
Proceeds from sales of securities ......................................... 564 1,168
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
44
<PAGE>
JNL/FIRST TRUST LEADING BRANDS SECTOR SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 9.55 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income ........................................................ 0.01 0.03
Net realized and unrealized losses on investments ............................ (0.10) (0.48)
---------------- ----------------
Total loss from operations ................................................... (0.09) (0.45)
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 9.46 $ 9.55
================ ================
TOTAL RETURN (A) ............................................................... (0.94)% (4.50)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 3,092 $ 1,673
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment income to average net assets (b) ..................... 0.60% 0.76%
Portfolio turnover ........................................................... 24.42% 98.23%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
45
<PAGE>
JNL/FIRST TRUST LEADING BRANDS SECTOR SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
COMMON STOCKS - 95.3%
APPAREL - 2.8%
Jones Apparel Group Inc. (a) 3,815 $ 90
BEVERAGES - 8.5%
Anheuser-Busch Companies Inc. 1,739 130
PepsiCo Inc. 3,219 143
-------------
273
COMPUTERS - 3.3%
Dell Computer Corp. (a) 2,145 106
COSMETICS & PERSONAL CARE - 13.7%
Colgate-Palmolive Co. 1,937 116
Gillette Co. 3,044 106
Kimberly-Clark Corp. 2,079 119
Procter & Gamble Co. 1,770 102
-------------
443
FOOD - 22.3%
Bestfoods 2,528 175
H.J. Heinz Co. 3,172 139
Hershey Foods Corp. 2,512 122
Keebler Foods Co. 3,953 147
Sara Lee Corp. 6,691 134
-------------
717
HOUSEHOLD PRODUCTS - 4.5%
Clorox Co. 3,240 145
LEISURE TIME - 6.1%
Carnival Corp. 4,690 91
Harley Davidson Inc. 2,733 105
-------------
196
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
--------------------------------------------------------------
MEDIA - 3.4%
Walt Disney Co. 2,826 $ 110
PHARMACEUTICALS - 17.4%
Bristol-Myers Squibb Co. 1,904 111
Johnson & Johnson 1,534 156
Pfizer Inc. 2,932 141
Schering-Plough Corp. 3,033 153
-------------
561
RETAIL - 9.6%
Gap Inc. 2,599 81
McDonald's Corp. 3,210 106
Starbucks Corp. (a) 3,188 122
-------------
309
SEMICONDUCTORS - 3.7%
Intel Corp. 889 119
-------------
Total Common Stocks
(cost $3,019) 3,069
-------------
SHORT TERM INVESTMENT - 4.7%
MONEY MARKET FUND - 4.7%
Dreyfus Cash Management Plus,
6.51% (b) 150,859 151
-------------
Total Short Term Investment
(cost $151) 151
-------------
TOTAL INVESTMENTS - 100%
(cost $3,170) $ 3,220
=============
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
'
46
<PAGE>
JNL/FIRST TRUST COMMUNICATIONS SECTOR SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $14,199) ................ $ 13,945
Receivables:
Dividends and interest .................. 5
Fund shares sold ........................ 37
--------------
TOTAL ASSETS .............................. 13,987
--------------
LIABILITIES
Payables:
Advisory fees ........................... 8
Administrative fees .................... 1
Fund shares redeemed .................... 39
Investment securities purchased ......... 141
--------------
TOTAL LIABILITIES ......................... 189
--------------
NET ASSETS ................................ $ 13,798
==============
NET ASSETS CONSIST OF:
Paid-in capital ........................... $ 11,939
Accumulated net investment loss ........... (11)
Accumulated net realized gain on
investments ............................... 2,124
Net unrealized depreciation on investments (254)
==============
$ 13,798
==============
SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED ............ 841
==============
NET ASSET VALUE PER SHARE ................. $ 16.41
==============
Statement of Operations
For the Six Months Ended June 30, 2000
INVESTMENT INCOME
Dividends ............................... $ 27
Interest ................................ 7
Foreign taxes withheld ................. (1)
--------------
TOTAL INVESTMENT INCOME ................... 33
--------------
EXPENSES
Advisory fees ........................... 38
Administrative fees ..................... 5
--------------
TOTAL EXPENSES ............................ 43
--------------
NET INVESTMENT LOSS ....................... (10)
--------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on investments ........ 1,709
Net change in unrealized depreciation
on investments ........................ (1,308)
--------------
NET REALIZED AND UNREALIZED GAIN .......... 401
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 391
==============
See notes to the financial statements.
47
<PAGE>
Statements of Changes in Net Assets (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment loss ......................................................... $ (10) $ (1)
Net realized gain on investments ............................................ 1,709 415
Net change in unrealized appreciation (depreciation) on investments ......... (1,308) 1,054
-------------- --------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ..................................... 391 1,468
-------------- --------------
SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ............................................. 10,244 5,143
Cost of shares redeemed ...................................................... (1,886) (1,562)
-------------- --------------
NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ............................. 8,358 3,581
-------------- --------------
NET INCREASE IN NET ASSETS ..................................................... 8,749 5,049
NET ASSETS BEGINNING OF PERIOD ................................................. 5,049 -
-------------- --------------
NET ASSETS END OF PERIOD ....................................................... $ 13,798 $ 5,049
============== ==============
ACCUMULATED NET INVESTMENT LOSS ................................................ $ (11) $ (1)
============== ==============
(1)SHARE TRANSACTIONs:
Shares sold ............................................................... 620 446
Shares redeemed ........................................................... (114) (111)
--------------- --------------
Net increase .............................................................. 506 335
=============== ==============
PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities ................................................... $ 12,856 $ 5,324
Proceeds from sales of securities ......................................... 4,550 1,741
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
See notes to the financial statements.
48
<PAGE>
JNL/FIRST TRUST COMMUNICATIONS SECTOR SERIES
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS JULY 2,
ENDED 1999* TO
JUNE 30, DECEMBER 31,
2000 1999
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD ........................................... $ 15.09 $ 10.00
---------------- ----------------
INCOME (LOSS) FROM OPERATIONS:
Net investment income (loss) ................................................. (0.01) -
Net realized and unrealized gains on investments ............................. 1.33 5.09
---------------- ----------------
Total income from operations ................................................. 1.32 5.09
---------------- ----------------
NET ASSET VALUE, END OF PERIOD ................................................. $ 16.41 $ 15.09
================ ================
TOTAL RETURN (A) ............................................................... 8.75% 50.90%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) ..................................... $ 13,798 $ 5,049
Ratio of expenses to average net assets (b) .................................. 0.85% 0.85%
Ratio of net investment loss to average net assets (b) ....................... (0.21)% (0.08)%
Portfolio turnover ........................................................... 45.43% 85.74%
</TABLE>
--------------------------------------------------------------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
49
<PAGE>
JNL/FIRST TRUST COMMUNICATIONS SECTOR SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
COMMON STOCKS - 98.7%
COMPUTERS - 8.1%
Cisco Systems Inc. (a) 8,500 $ 538
Comverse Technology Inc. (a) 6,386 594
--------------
1,132
ELECTRONICS - 4.3%
Vitesse Semiconductor Corp. (a) 8,191 603
SEMICONDUCTORS - 8.5%
Conexant Systems Inc. (a) 4,768 232
Motorola Inc. 11,005 320
PMC - Sierra Inc. (a) 3,508 623
--------------
1,175
TELECOMMUNICATIONS - 77.8%
ADC Telecommunications Inc. (a) 13,380 1,122
AT&T Corp. 12,587 398
Bell Atlantic Corp. 11,726 596
Copper Mountain Networks Inc. (a) 7,333 646
Deutsche Telekom AG - ADR 6,558 372
JDS Uniphase Corp. (a) 5,006 600
Lucent Technologies Inc. 11,143 660
Nokia Oyj - ADR 11,453 572
Nortel Networks Corp. 9,917 677
Qualcomm Inc. (a) 4,010 241
Qwest Communications
International Inc. (a) 12,279 610
SBC Communications Inc. 16,512 714
Telecom Italia SPA - ADR 3,222 443
Telefonaktiebolaget LM Ericsson
- ADR 25,678 514
Telefonica SA - ADR 6,803 436
Telefonos de Mexico SA - ADR 8,771 501
Tellabs Inc. (a) 10,942 749
Vodafone AirTouch Plc - ADR 10,119 419
WorldCom Inc. (a) 12,600 578
--------------
10,848
--------------
Total Common Stocks
(cost $14,012) 13,758
--------------
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
SHORT TERM INVESTMENT - 1.3%
MONEY MARKET FUND - 1.3%
Dreyfus Cash Management Plus,
6.51% (b) 187 $ 187
--------------
Total Short Term Investment
(cost $187) 187
--------------
TOTAL INVESTMENTS - 100%
(cost $14,199) $ 13,945
==============
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
50
<PAGE>
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
JNL Variable Fund LLC (the "Fund") is a limited liability company organized
under the laws of Delaware, by a Formation and Operating Agreement dated
February 11, 1999. The Fund is registered with the Securities and Exchange
Commission as a non-diversified fund under the Investment Company Act of 1940
(the "1940 Act"). The Fund includes the following separate Series, each
subadvised by First Trust Advisors L.P. ("First Trust"): JNL/First Trust The Dow
Target 5 Series, JNL/First Trust The Dow Target 10 Series, JNL/First Trust The
S&P Target 10 Series, JNL/First Trust Global Target 15 Series, JNL/First Trust
Target 25 Series, JNL/First Trust Target Small-Cap Series, JNL/First Trust
Technology Sector Series, JNL/First Trust Pharmaceutical/Healthcare Sector
Series, JNL/First Trust Financial Sector Series, JNL/First Trust Energy Sector
Series, JNL/First Trust Leading Brands Sector Series and JNL/First Trust
Communications Sector Series. The shares of the Fund are sold primarily to life
insurance company separate accounts to fund the benefits of variable annuity
policies.
Jackson National Financial Services, LLC ("JNFS"), a wholly-owned
subsidiary of Jackson National Life Insurance Company ("Jackson National"),
serves as investment adviser ("Adviser") for all the Series.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
each Series in the preparation of its financial statements.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates.
SECURITY VALUATION -- Stocks listed on a national or foreign stock exchange
are valued at the final quoted sale price, or final bid price in absence of a
sale. Stocks not listed on a national or foreign stock exchange are valued at
the closing bid price on the over-the-counter market. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. American Depository Receipts ("ADRs"), which are certificates
representing shares of foreign securities deposited in domestic and foreign
banks, are traded and valued in U.S. dollars.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
recorded on the trade date. Dividend income, net of applicable withholding
taxes, is recorded on the ex-dividend date. Interest income, including
level-yield amortization of discounts and premiums, is accrued daily. Realized
gains and losses are determined on the specific identification basis.
FOREIGN CURRENCY TRANSLATIONS -- The accounting records of each Series are
maintained in U.S. dollars. Investment securities and other assets and
liabilities de-nominated in a foreign currency are translated into U.S. dollars
using exchange rates in effect as of noon Eastern Standard Time. Purchases and
sales of investment securities, income receipts, and expense payments are
translated into U.S. dollars at the exchange rates prevailing on the respective
dates of such transactions.
Realized and unrealized gains and losses on investments which result from
changes in foreign currency exchange rates are included in net realized gains
(losses) on investments and net unrealized appreciation (depreciation) on
investments.
REPURCHASE AGREEMENTS -- A Series may invest in repurchase agreements. A
repurchase agreement involves the purchase of a security by a Series and a
simultaneous agreement (generally by a bank or broker-dealer) to repurchase that
security back from the Series at a specified price and date or upon demand.
Securities pledged as collateral for repurchase agreements are held by the
Series custodian bank until the maturity of the repurchase agreement. Procedures
for all repurchase agreements have been designed to assure that the daily market
value of the collateral is in excess of the repurchase agreement in the event of
default.
DISTRIBUTIONS TO SHAREHOLDERS --For all Series, no distributions of net
investment income or realized capital gains are required.
FEDERAL INCOME TAXES -- The JNL Variable Fund LLC is a limited liability
company with all of its interests owned by a single interest, Jackson National
Separate Account-I. Accordingly, the Fund is not considered a separate entity
for income tax purposes, and therefore is taxed as part of the operations of
Jackson National and is not taxed separately. Under current tax law, interest
and dividend income and capital gains of the Fund are not currently taxable when
left to accumulate within a variable annuity contract.
51
<PAGE>
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
NOTE 3. INVESTMENT MANAGEMENT FEES AND TRANSACTIONS WITH AFFILIATES
Each Series has an investment advisory agreement with JNFS whereby JNFS
provides investment management and transfer agency services. Each Series pays
JNFS a fee, computed daily and payable monthly, based on a specified percentage
of the average daily net assets of each Series as follows:
ASSETS FEES
$0 to $500 million .......... .75%
$500 million to $1 billion .. .70%
Over $1 billion ............. .65%
As compensation for their services, the subadviser, First Trust, receives
fees from JNFS, calculated on the basis of the average daily net assets of each
Series as follows:
ASSETS FEES
$0 to $500 million .......... .35%
$500 million to $1 billion .. .30%
Over $1 billion ............. .25%
ADMINISTRATIVE FEE -- In addition to the investment advisory fee, each
Series pays to JNFS an Administrative Fee of .10% of the average daily net
assets. Each Series, except the JNL/First Trust Global Target 15 Series, pays
JNFS an Administrative Fee of .10% of the average daily net assets of the
Series. The JNL/First Trust Global Target 15 Series pays JNFS an Administrative
Fee of .15% of the average daily net assets of the Series. In return for the
fee, JNFS provides or procures all necessary administrative functions and
services for the operations of each Series. In accordance with the agreement,
JNFS is responsible for payment of expenses related to legal, audit, fund
accounting, custody, printing and mailing, trustee fees, and all other services
necessary for the operation of each Series. Each Series is responsible for
trading expenses including brokerage commissions, interest and taxes, and other
non-operating expenses.
NOTE 4. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments
involves special risks and considerations not typically associated with
investing in U.S. companies and the U.S. Government. These risks include
revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more volatile
than those of securities of comparable U.S. companies and the U.S.
Government.
52
