JNL VARIABLE FUND LLC, 497, 2000-05-05

JNL VARIABLE FUND LLC
497, 2000-05-05

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JNL(R) VARIABLE FUND LLC

PROSPECTUS

May 1, 2000

JNL(R) VARIABLE FUND LLC
225 West Wacker Drive o Chicago,
Illinois 60606

This Prospectus provides you with the basic information you should know before
investing in the JNL Variable Fund LLC (Fund). The Fund offers interests in
separate series, which are comprised of two groups - Target Series and Sector
Series.

The interests of the Fund are sold to Jackson National Separate Account - I to
fund the benefits of variable annuity contracts. The Fund currently offers
interests in the following separate Series, each with its own investment
objective.

JNL/First Trust The Dow(SM) Target 5 Series
JNL/First Trust The Dow(SM) Target 10 Series
JNL/First Trust The S&P(R) 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
JNL/First Trust Communications Sector Series

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THE
FUND'S SECURITIES, OR DETERMINED WHETHER THIS PROSPECTUS IS ACCURATE OR
COMPLETE. IT IS A CRIMINAL OFFENSE TO STATE OTHERWISE.

For more detailed information about the Fund and the Series, see the Fund's
Statement of Additional Information (SAI), which is incorporated by reference
into this prospectus.

<PAGE>
"Dow Jones", "Dow Jones Industrial Average(SM)", "DJIA(SM)", "The Dow 10(SM)",
and "The Dow 5(SM)" are service marks of Dow Jones & Company, Inc. (Dow Jones).
Dow Jones has no relationship to the Fund, other than the licensing of the Dow
Jones Industrial Average (DJIA) and its service marks for use in connection with
the JNL/First Trust The Dow Target 5 Series and the JNL/First Trust The Dow
Target 10 Series.

DOW JONES DOES NOT:

o Sponsor, endorse, sell or promote the JNL/First Trust The Dow Target 5
Series or the JNL/First Trust The Dow Target 10 Series.
o Recommend that any person invest in the JNL/First Trust The Dow Target 5
Series, the JNL/First Trust The Dow Target 10 Series or any other
securities.
o Have any responsibility or liability for or make any decisions about the
timing, amount or pricing of the JNL/First Trust The Dow Target 5 Series or
the JNL/First Trust The Dow Target 10 Series.
o Have any responsibility or liability for the administration, management or
marketing of the JNL/First Trust The Dow Target 5 Series or the JNL/First
Trust The Dow Target 10 Series.
o Consider the needs of the JNL/First Trust The Dow Target 5 Series or the
JNL/First Trust The Dow Target 10 Series or the owners of the JNL/First
Trust The Dow Target 5 Series or the JNL/First Trust The Dow Target 10
Series in determining, composing or calculating the DJIA or have any
obligation to do so.

- --------------------------------------------------------------------------------

DOW JONES WILL NOT HAVE ANY LIABILITY IN CONNECTION WITH THE JNL/FIRST TRUST THE
DOW TARGET 5 SERIES OR THE JNL/FIRST TRUST THE DOW TARGET 10 SERIES.
SPECIFICALLY,

o DOW JONES DOES NOT MAKE ANY WARRANTY, EXPRESS OR IMPLIED, AND DOW JONES
DISCLAIMS ANY WARRANTY ABOUT:
o THE RESULTS TO BE OBTAINED BY THE JNL/FIRST TRUST THE DOW TARGET 5
SERIES OR THE JNL/FIRST TRUST THE DOW TARGET 10 SERIES, THE OWNERS OF
THE JNL/FIRST TRUST THE DOW TARGET 5 SERIES OR THE JNL/FIRST TRUST THE
DOW TARGET 10 SERIES OR ANY OTHER PERSON IN CONNECTION WITH THE USE OF
THE DJIA AND THE DATA INCLUDED IN THE DJIA;
o THE ACCURACY OR COMPLETENESS OF THE DJIA AND ITS DATA;
o THE MERCHANTABILITY AND THE FITNESS FOR A PARTICULAR PURPOSE OR USE OF
THE DJIA AND ITS DATA;
o DOW JONES WILL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS
IN THE DJIA OR ITS DATA;
o UNDER NO CIRCUMSTANCES WILL DOW JONES BE LIABLE FOR ANY LOST PROFITS OR
INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF DOW
JONES KNOWS THAT THEY MIGHT OCCUR.

THE LICENSING AGREEMENT BETWEEN FIRST TRUST ADVISORS L.P. AND DOW JONES IS
SOLELY FOR THEIR BENEFIT AND NOT FOR THE BENEFIT OF THE OWNERS OF THE JNL/FIRST
TRUST THE DOW TARGET 5 SERIES OR THE JNL/FIRST TRUST THE DOW TARGET 10 SERIES OR
ANY OTHER THIRD PARTIES.
- --------------------------------------------------------------------------------

"Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", and "Standard & Poor's 500"are
trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by
Jackson National Life Insurance Company. The JNL/First Trust The S&P(R) Target
10 Series is not sponsored, endorsed, sold or promoted by Standard & Poor's and
Standard & Poor's makes no representation regarding the advisability of
investing in the Series. Please see the Statement of Additional Information
which sets forth certain additional disclaimers and limitations of liabilities
on behalf of S&P.

"JNL(R)", "Jackson National(R)" and "Jackson National Life(R)" are trademarks of
Jackson National Life Insurance Company.

<PAGE>
TABLE OF CONTENTS

About the Series of the Fund ................................................1

JNL/First Trust The Dow(SM) Target 5 Series ........................1

JNL/First Trust The Dow(SM) Target 10 Series .......................3

JNL/First Trust The S&P(R) Target 10 Series ........................5

JNL/First Trust Global Target 15 Series ............................7

JNL/First Trust Target 25 Series ...................................9

JNL/First Trust Target Small-Cap Series ............................11

JNL/First Trust Technology Sector Series ...........................13

JNL/First Trust Pharmaceutical/Healthcare Sector Series ............15

JNL/First Trust Financial Sector Series ............................17

JNL/First Trust Energy Sector Series ...............................19

JNL/First Trust Leading Brands Sector Series .......................21

JNL/First Trust Communications Sector Series .......................23

More About the Investment Objectives and Risks of All Series .......25

Management of the Fund ......................................................27

Investment Adviser .................................................27

Investment Sub-Adviser .............................................27

Portfolio Management ...............................................28

Administrative Fee ..........................................................28

Investment in Fund Interests ................................................28

Redemption of Fund Interests ................................................29

Tax Status ..................................................................29

General ............................................................29

Internal Revenue Services Diversification Requirements .............29

Hypothetical Performance Data for Target Strategies .........................30

Financial Highlights ........................................................32

<PAGE>
ABOUT THE SERIES OF THE FUND

JNL/FIRST TRUST THE DOW(SM) TARGET 5 SERIES

INVESTMENT OBJECTIVE. The investment objective of the JNL/First Trust The
Dow(SM) Target 5 Series (The Dow Target 5 Series) is a high total return through
a combination of capital appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Dow Target 5 Series seeks to achieve its
objective by investing approximately equal amounts in the common stock of the
five companies included in the Dow Jones Industrial Average(SM) (DJIA) which
have the lowest per share price of the companies with the ten highest dividend
yields on or about the business day before each Stock Selection Date. The five
companies will be selected annually, beginning July 1, 1999, and on each one
year anniversary thereof (Stock Selection Date). The sub-adviser generally uses
a buy and hold strategy, trading only on each Stock Selection Date and when cash
flow activity occurs in the Series.

PRINCIPAL RISKS OF INVESTING IN THE DOW TARGET 5 SERIES. An investment in The
Dow Target 5 Series is not guaranteed. As with any mutual fund, the value of The
Dow Target 5 Series' shares will change and you could lose money by investing in
this Series. A variety of factors may influence its investment performance, such
as:

o Market risk. Because The Dow Target 5 Series invests in
U.S.-traded equity securities, it is subject to stock market
risk. Stock prices typically fluctuate more than the values of
other types of securities, typically in response to changes in a
particular company's financial condition and factors affecting
the market in general. For example, unfavorable or unanticipated
poor earnings performance of a company may result in a decline in
its stock's price, and a broad-based market drop may also cause a
stock's price to fall.

o Non-diversification. The Dow Target 5 Series is "non-diversified"
as such term is defined in the Investment Company Act of 1940, as
amended, which means that the Series may hold a smaller number of
issuers than if it were "diversified." With a smaller number of
different issuers, The Dow Target 5 Series is subject to more
risk than another fund holding a larger number of issuers, since
changes in the financial condition or market status of a single
issuer may cause greater fluctuation in The Dow Target 5 Series'
total return and share price.

o Limited management. The Dow Target 5 Series' strategy of
investing in five companies according to criteria determined on a
Stock Selection Date prevents The Dow Target 5 Series from
responding to market fluctuations. As compared to other funds,
this could subject The Dow Target 5 Series to more risk if one of
the selected stocks declines in price or if certain sectors of
the market, or the United States economy, experience downturns.
The investment strategy may also prevent The Dow Target 5 Series
from taking advantage of opportunities available to other funds.

In addition, the performance of The Dow Target 5 Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

PERFORMANCE. The performance of the Series will vary from year to year. The
Series' performance figures will not reflect the deduction of any charges that
are imposed under a variable annuity contract.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES.

The Dow Target 5 Series invests in the common stock of five companies included
in The DJIA. The five common stocks will be chosen on or about the business day
before each Stock Selection Date by the following criteria:

o the sub-adviser will determine the dividend yield on each common
stock in The DJIA;

o the sub-adviser will determine the ten companies in The DJIA that
have the highest dividend yield;

o the sub-adviser will allocate approximately equal amounts of The
Dow Target 5 Series to the common stocks of the five companies
with the lowest price per share of such ten companies;

o the sub-adviser will determine the percentage relationship
between the number of shares of each of the five common stocks
selected.

Between Stock Selection Dates, The Dow Target 5 Series will purchase and sell
common stocks according to the percentage relationship among the common stocks
established at the prior Stock Selection Date.

The stocks in The Dow Target 5 Series are not expected to reflect the entire
DJIA nor track the movements of The DJIA.

The SAI has more information about The Dow Target 5 Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
JNL/FIRST TRUST THE DOW(SM) TARGET 10 SERIES

INVESTMENT OBJECTIVE. The investment objective of the JNL/First Trust The
Dow(SM) Target 10 Series (The Dow Target 10 Series) is a high total return
through a combination of capital appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Dow Target 10 Series seeks to achieve its
objective by investing approximately equal amounts in the common stock of the
ten companies included in the Dow Jones Industrial Average(SM) (DJIA) which have
the highest dividend yields on or about the business day before each Stock
Selection Date. The ten companies will be selected annually, beginning July 1,
1999, and on each one year anniversary thereof (Stock Selection Date). The
sub-adviser generally uses a buy and hold strategy, trading only on each Stock
Selection Date and when cash flow activity occurs in the Series.

PRINCIPAL RISKS OF INVESTING IN THE DOW TARGET 10 SERIES. An investment in The
Dow Target 10 Series is not guaranteed. As with any mutual fund, the value of
The Dow Target 10 Series' shares will change and you could lose money by
investing in this Series. A variety of factors may influence its investment
performance, such as:

o Market risk. Because The Dow Target 10 Series invests in
U.S.-traded equity securities, it is subject to stock market
risk. Stock prices typically fluctuate more than the values of
other types of securities, typically in response to changes in a
particular company's financial condition and factors affecting
the market in general. For example, unfavorable or unanticipated
poor earnings performance of a company may result in a decline in
its stock's price, and a broad-based market drop may also cause a
stock's price to fall.

o Non-diversification. The Dow Target 10 Series is
"non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended, which means that the Series may
hold a smaller number of issuers than if it were "diversified."
With a smaller number of different issuers, The Dow Target 10
Series is subject to more risk than another fund holding a larger
number of issuers, since changes in the financial condition or
market status of a single issuer may cause greater fluctuation in
The Dow Target 10 Series' total return and share price.

o Limited management. The Dow Target 10 Series' strategy of
investing in ten companies according to criteria determined on a
Stock Selection Date prevents The Dow Target 10 Series from
responding to market fluctuations. As compared to other funds,
this could subject The Dow Target 10 Series to more risk if one
of the selected stocks declines in price or if certain sectors of
the market, or the United States economy, experience downturns.
The investment strategy may also prevent The Dow Target 10 Series
from taking advantage of opportunities available to other funds.

In addition, the performance of The Dow Target 10 Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES.

The Dow Target 10 Series invests in the common stock of ten companies included
in The DJIA. The ten common stocks will be chosen on or about the business day
before each Stock Selection Date as follows:

o the sub-adviser will determine the dividend yield on each common
stock in The DJIA on or about the business day before the Stock
Selection Date;

o the sub-adviser will allocate approximately equal amounts of The
Dow Target 10 Series to the ten companies in The DJIA that have
the highest dividend yield;

o the sub-adviser will determine the percentage relationship
between the number of shares of each of the ten common stocks
selected.

Between Stock Selection Dates, The Dow Target 10 Series will purchase and sell
common stocks approximately according to the percentage relationship among the
common stocks established on the prior Stock Selection Date.

The stocks in The Dow Target 10 Series are not expected to reflect the entire
DJIA nor track the movements of The DJIA.

The SAI has more information about The Dow Target 10 Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
JNL/FIRST TRUST THE S&P(R) TARGET 10 SERIES

INVESTMENT OBJECTIVE. The investment objective of the JNL/First Trust The S&P(R)
Target 10 Series (S&P Target 10 Series) is a high total return through a
combination of capital appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The S&P Target 10 Series seeks to achieve its
objective by investing approximately equal amounts in the common stocks of 10
companies selected from a pre-screened subset of the stocks listed in The S&P
500 Index. The ten companies will be selected annually, beginning July 1, 1999,
and on each one year anniversary thereof (Stock Selection Date), on or about the
last business day before each Stock Selection Date. The sub-adviser generally
uses a buy and hold strategy, trading only on each Stock Selection Date and when
cash flow activity occurs in the Series.

PRINCIPAL RISKS OF INVESTING IN THE S&P TARGET 10 SERIES. An investment in The
S&P Target 10 Series is not guaranteed. As with any mutual fund, the value of
The S&P Target 10 Series' shares will change and you could lose money by
investing in this Series.
A variety of factors may influence its investment performance, such as:

o Market risk. Because The S&P Target 10 Series invests in
U.S.-traded equity securities, it is subject to stock market
risk. Stock prices typically fluctuate more than the values of
other types of securities, typically in response to changes in a
particular company's financial condition and factors affecting
the market in general. For example, unfavorable or unanticipated
poor earnings performance of a company may result in a decline in
its stock's price, and a broad-based market drop may also cause a
stock's price to fall.

o Non-diversification. The S&P Target 10 Series is
"non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended, which means that the Series may
hold a smaller number of issuers than if it were "diversified."
With a smaller number of different issuers, The S&P Target 10
Series is subject to more risk than another fund holding a larger
number of issuers, since changes in the financial condition or
market status of a single issuer may cause greater fluctuation in
The S&P Target 10 Series' total return and share price.

o Limited management. The S&P Target 10 Series' strategy of
investing in ten companies according to criteria determined on a
Stock Selection Date prevents The S&P Target 10 Series from
responding to market fluctuations. As compared to other funds,
this could subject The S&P Target 10 Series to more risk if one
of the common stocks selected declines in price or if certain
sectors of the market, or the United States economy, experience
downturns. The investment strategy may also prevent The S&P
Target 10 Series from taking advantage of opportunities available
to other funds.

In addition, the performance of The S&P Target 10 Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES. The S&P Target 10 Series consists of a
portfolio of 10 common stocks selected on or about the business day before each
Stock Selection Date through the following process:

o first, the sub-adviser ranks the companies in The S&P 500 Index
by market capitalization;

o the sub-adviser selects half of the companies in The S&P 500
Index with the largest market capitalization;

o from the remaining companies, the sub-adviser selects the half
with the lowest price to sales ratio;

o from the remaining companies, the sub-adviser selects the 10
common stocks with the greatest one year price appreciation;

o the sub-adviser will allocate approximately equal amounts of The
S&P Target 10 Series to the selected 10 common stocks;

o the sub-adviser will determine the percentage relationship
between the number of shares of each of the 10 common stocks
selected.

Between Stock Selection Dates, The S&P Target Series will purchase and sell
common stocks according to the percentage relationship among the common stocks
established at the prior Stock Selection Date.

The stocks in The S&P Target 10 Series are not expected to reflect the entire
S&P 500 Index nor track the movements of The S & P 500 Index.

The SAI has more information about The S&P Target 10 Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
JNL/FIRST TRUST GLOBAL TARGET 15 SERIES

INVESTMENT OBJECTIVE. The investment objective of the JNL/First Trust Global
Target 15 Series (Global Target 15 Series) is a high total return through a
combination of capital appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Global Target 15 Series seeks to achieve
its objective by investing in the common stocks of certain companies which are
components of The Dow Jones Industrial Average(SM) (DJIA), the Financial Times
Industrial Ordinary Share Index (FT Index) and the Hang Seng Index. The Global
Target 15 Series consists of common stocks of the five companies with the lowest
per share stock price of the ten companies in each of The DJIA, the FT Index and
the Hang Seng Index, respectively, that have the highest dividend yields in the
respective index. The fifteen companies will be selected annually, beginning
July 1, 1999, and on each one year anniversary thereof (Stock Selection Date),
on or about the last business day before each Stock Selection Date. The
sub-adviser generally uses a buy and hold strategy, trading only on each Stock
Selection Date and when cash flow activity occurs in the Series.

PRINCIPAL RISKS OF INVESTING IN THE GLOBAL TARGET 15 SERIES. An investment in
the Global Target 15 Series is not guaranteed. As with any mutual fund, the
value of the Global Target 15 Series' shares will change and you could lose
money by investing in this Series. A variety of factors may influence its
investment performance, such as:

o Market risk. Because the Global Target 15 Series invests in
stocks of U.S. and foreign companies, it is subject to stock
market risk. Stock prices typically fluctuate more than the
values of other types of securities, typically in response to
changes in the particular company's financial condition and
factors affecting the market in general. For example, unfavorable
or unanticipated poor earnings performance of the company may
result in a decline in its stock's price, and a broad-based
market drop may also cause a stock's price to fall.

o Non-diversification. The Global Target 15 Series is
"non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended, which means that the Series may
hold a smaller number of issuers than if it were "diversified."
With a smaller number of different issuers, the Global Target 15
Series is subject to more risk than another fund holding a larger
number of issuers, since changes in the financial condition or
market status of a single issuer may cause greater fluctuation in
the Global Target 15 Series' total return and share price.

o Foreign investing risk. Because the Global Target 15 Series
invests in stocks of foreign companies, it is also subject to
foreign investing risk. Foreign investing involves risks not
typically associated with U.S. investments. These risks include,
among others, adverse fluctuations in foreign currency values as
well as adverse political, social and economic developments
affecting a foreign country. In addition, foreign investing
involves less publicly available information, more volatile or
less liquid securities markets. Particularly, the reversion of
Hong Kong to Chinese control on July 1, 1997 may adversely affect
the securities of Hong Kong issuers contained in the Global
Target 15 Series. Investments in foreign countries could be
affected by factors not present in the U.S., such as restrictions
on receiving the investment proceeds from a foreign country,
foreign tax laws, and potential difficulties in enforcing
contractual obligations. Transactions in foreign securities may
be subject to less efficient settlement practices, including
extended clearance and settlement periods. Foreign accounting may
be less revealing than American accounting practices. Foreign
regulation may be inadequate or irregular. Owning foreign
securities could cause the Global Target 15 Series' performance
to fluctuate more than if it held only U.S. securities.

o Currency risk. The value of the Global Target 15 Series' shares
may change as a result of changes in exchange rates reducing the
value of the U.S. dollar value of the Global Target 15 Series'
foreign investments. Currency exchange rates can be volatile and
affected by a number of factors, such as the general economics of
a country, the actions of U.S. and foreign governments or central
banks, the imposition of currency controls, and speculation.

o Limited management. The Global Target 15 Series' strategy of
investing in fifteen companies according to criteria determined
on a Stock Selection Date prevents the Global Target 15 Series
from responding to market fluctuations. As compared to other
funds, this could subject the Global Target 15 Series to more
risk if one of the common stocks selected declines in price or if
certain sectors of the market, or the United States economy,
experience downturns. The investment strategy may also prevent
the Global Target 15 Series from taking advantage of
opportunities available to other funds.

In addition, the performance of the Global Target 15 Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES.

The Global Target 15 Series invests in the common stock of fifteen companies
included in The DJIA, the FT Index and the Hang Seng Index. The fifteen common
stocks will be chosen on or about the business day before each Stock Selection
Date as follows:

o the sub-adviser will determine the dividend yield on each common
stock in The DJIA, the FT Index and the Hang Seng Index;

o the sub-adviser will determine the ten companies in each of The
DJIA, the FT Index and the Hang Seng Index that have the highest
dividend yield in the respective index;

o out of those companies, the sub-adviser will allocate
approximately equal amounts of the Global Target 15 Series to the
common stocks of the five companies in each index with the lowest
price per share;

o the sub-adviser will determine the percentage relationship
between the number of shares of each of the fifteen common stocks
selected.

Between Stock Selection Dates, the Global Target 15 Series will purchase and
sell common stocks according to the percentage relationship among the common
stocks established at the prior Stock Selection Date.

The SAI has more information about the Global Target 15 Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
JNL/FIRST TRUST TARGET 25 SERIES

INVESTMENT OBJECTIVE. The investment objective of the JNL/First Trust Target 25
Series (Target 25 Series) is a high total return through a combination of
capital appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Target 25 Series seeks to achieve its
objective by investing in the common stocks of 25 companies selected from a
pre-screened subset of the stocks listed on the New York Stock Exchange (NYSE).
The 25 companies will be selected annually, beginning July 1, 1999, and on each
one year anniversary thereof (Stock Selection Date), on or about the last
business day before each Stock Selection Date. The sub-adviser generally uses a
buy and hold strategy, trading only on each Stock Selection Date and when cash
flow activity occurs in the Series.

PRINCIPAL RISKS OF INVESTING IN THE TARGET 25 SERIES. An investment in the
Target 25 Series is not guaranteed. As with any mutual fund, the value of the
Target 25 Series' shares will change and you could lose money by investing in
this Series. A variety of factors may influence its investment performance, such
as:

o Market risk. Because the Target 25 Series invests in U.S.-traded
equity securities, it is subject to stock market risk. Stock
prices typically fluctuate more than the values of other types of
securities, typically in response to changes in a particular
company's financial condition and factors affecting the market in
general. For example, unfavorable or unanticipated poor earnings
performance of a company may result in a decline in its stock's
price, and a broad-based market drop may also cause a stock's
price to fall.

o Small cap investing. Investing in smaller, newer companies
generally involves greater risks than investing in larger, more
established ones. Certain of or all of the companies in which the
Target 25 Series may invest may be small cap company stocks. Such
companies are likely to have limited product lines, markets or
financial resources or may depend on the expertise of a few
people and may be subject to more abrupt or erratic market
movements than securities of larger, more established companies
or the market averages in general. In addition, many small
capitalization companies may be in the early stages of
development. Accordingly, an investment in the Target 25 Series
may not be appropriate for all investors.

o Non-diversification. The Target 25 Series is "non-diversified" as
such term is defined in the Investment Company Act of 1940, as
amended, which means that the Series may hold a smaller number of
issuers than if it were "diversified." With a smaller number of
different issuers, the Target 25 Series is subject to more risk
than another fund holding a larger number of issuers, since
changes in the financial condition or market status of a single
issuer may cause greater fluctuation in the Target 25 Series'
total return and share price.

o Limited management. The Target 25 Series' strategy of investing
in twenty-five companies according to criteria determined on a
Stock Selection Date prevents the Target 25 Series from
responding to market fluctuations. As compared to other funds,
this could subject the Target 25 Series to more risk if one of
the selected stocks declines in price or if certain sectors of
the market, or the United States economy, experience downturns.
The investment strategy may also prevent the Target 25 Series
from taking advantage of opportunities available to other funds.

In addition, the performance of the Target 25 Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES. The Target 25 Series consists of a
portfolio of 25 common stocks selected through the following six-step process on
or about the business day before each Stock Selection Date:

o first, the sub-adviser selects all the dividend-paying common
stocks listed on the NYSE (excluding financial, transportation
and utility stocks, American Depositary Receipts, limited
partnerships and any stock included in the Dow Jones Industrial
Average(SM));

o those common stocks are then ranked from highest to lowest market
capitalization, and the sub-adviser selects the 400 highest
market capitalization stocks;

o those 400 common stocks are then ranked, in terms of dividend
yield, from highest to lowest, and the sub-adviser selects the 75
highest dividend-yielding stocks;

o from the remaining 75 stocks, the sub-adviser discards the 50
highest dividend-yielding stocks and selects the remaining 25
stocks;

o the sub-adviser will allocate approximately equal amounts of the
Target 25 Series to the common stocks selected for the portfolio;

o the sub-adviser will determine the percentage relationship
between the number of shares of each of the twenty-five common
stocks selected.

Between Stock Selection Dates, the Target 25 Series will purchase and sell
common stocks according to the percentage relationship among the common stocks
established at the Stock Selection Date.

In addition, companies which, based on publicly available information as of the
Stock Selection Date, are the subject of an announced business combination which
is expected to be concluded within six months of the Stock Selection Date, will
be excluded from the Target 25 Series.

The SAI has more information about the Target 25 Series' authorized investments
and strategies, as well as the risks and restrictions that may apply to them.

<PAGE>
JNL/FIRST TRUST TARGET SMALL-CAP SERIES

INVESTMENT OBJECTIVE. The investment objective of the JNL/First Trust Target
Small-Cap Series (Target Small-Cap Series) is a high total return through
capital appreciation.

PRINCIPAL INVESTMENT STRATEGIES. The Target Small-Cap Series seeks to achieve
its objective by investing in a portfolio of common stocks of 40 small
capitalization (small cap) companies selected from a pre-screened subset of the
common stocks listed on the New York Stock Exchange (NYSE), the American Stock
Exchange (AMEX) or The Nasdaq Stock Market (Nasdaq). These companies will be
selected annually, beginning July 1, 1999, and on each one year anniversary
thereof (Stock Selection Date), on or about the last business day before each
Stock Selection Date. The sub-adviser generally uses a buy and hold strategy,
trading only on each Stock Selection Date and when cash flow activity occurs in
the Series.

PRINCIPAL RISKS OF INVESTING IN THE TARGET SMALL-CAP SERIES. An investment in
the Target Small-Cap Series is not guaranteed. As with any mutual fund, the
value of the Target Small-Cap Series' shares will change and you could lose
money by investing in this Series. A variety of factors may influence its
investment performance, such as:

o Market risk. Because the Target Small-Cap Series invests in
U.S.-traded equity securities, it is subject to stock market
risk. Stock prices typically fluctuate more than the values of
other types of securities, typically in response to changes in
the particular company's financial condition and factors
affecting the market in general. For example, unfavorable or
unanticipated poor earnings performance of the company may result
in a decline in its stock's price, and a broad-based market drop
may also cause a stock's price to fall.

o Small cap investing. Investing in smaller, newer companies
generally involves greater risks than investing in larger, more
established ones. The companies in which the Target Small-Cap
Series is likely to invest have limited product lines, markets or
financial resources or may depend on the expertise of a few
people and may be subject to more abrupt or erratic market
movements than securities of larger, more established companies
or the market averages in general. In addition, many small
capitalization companies may be in the early stages of
development. Accordingly, an investment in the Target Small-Cap
Series may not be appropriate for all investors.

o Non-diversification. The Target Small-Cap Series is
"non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended, which means that the Series may
hold a smaller number of issuers than if it were "diversified."
With a smaller number of different issuers, the Target Small-Cap
Series is subject to more risk than another fund holding a larger
number of issuers, since changes in the financial condition or
market status of a single issuer may cause greater fluctuation in
the Target Small-Cap Series' total return and share price.

o Limited management. The Target Small-Cap Series' strategy of
investing in certain companies according to criteria determined
on a Stock Selection Date prevents the Target Small-Cap Series
from responding to market fluctuations. As compared to other
funds, this could subject the Target Small-Cap Series to more
risk if one of the common stocks selected declines in price or if
certain sectors of the market, or the United States economy,
experience downturns. The investment strategy may also prevent
the Target Small-Cap Series from taking advantage of
opportunities available to other funds.

In addition, the performance of the Target Small-Cap Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES. The Target Small-Cap Series consists of a
portfolio of 40 common stocks selected through the following process on or about
the business day before each Stock Selection Date:

o first, the sub-adviser selects all U.S. registered corporations
which trade on the NYSE, AMEX or Nasdaq (excluding limited
partnerships, American Depositary Receipts and mineral and oil
royalty trusts);

o from those companies, the sub-adviser then selects only those
companies which have a market capitalization of between $150
million and $1 billion and whose stock has an average daily
dollar trading volume of at least $500,000 (these dollar
limitations will be adjusted periodically for inflation);

o from the remaining companies, the sub-adviser selects only the
stocks with positive three-year sales growth;

o next, from the remaining companies, the sub-adviser selects only
the stocks whose most recent annual earnings are positive;

o the sub-adviser then eliminates any stock whose price has
appreciated by more than 75% in the last 12 months;

o from the remaining list, the sub-adviser selects the 40 stocks
with the greatest price appreciation in the last 12 months
(highest to lowest);

o the sub-adviser will purchase the selected 40 common stocks for
the Target Small-Cap Series based on relative market
capitalization;

o the sub-adviser will determine the percentage relationship
between the number of shares of each of the 40 common stocks
selected.

In each of the above steps, monthly and rolling quarterly data are used in place
of annual figures where possible.

Between Stock Selection Dates, the Target Small-Cap Series will purchase and
sell common stocks according to the percentage relationship among the common
stocks established at the prior Stock Selection Date. In addition, companies
which, based on publicly available information as of the Stock Selection Date,
are the subject of an announced business combination which is expected to be
concluded within six months of the Stock Selection Date, will be excluded from
the Target Small-Cap Series.

The SAI has more information about the Target Small-Cap Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
JNL/FIRST TRUST TECHNOLOGY SECTOR SERIES

INVESTMENT OBJECTIVE. The objective of the JNL/First Trust Technology Sector
Series (Technology Sector Series) is a high total return through capital
appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Technology Sector Series will invest in a
portfolio of common stocks issued by technology companies.

PRINCIPAL RISKS OF INVESTING IN THE TECHNOLOGY SECTOR SERIES. An investment in
the Technology Sector Series is not guaranteed. As with any mutual fund, the
value of the Technology Sector Series' shares will change and you could lose
money by investing in this Series. A variety of factors may influence its
investment performance, such as:

o Market risk. Because the Technology Sector Series invests in
common stocks of U.S. and foreign companies, it is subject to
stock market risk. Stock prices typically fluctuate more than the
values of other types of securities, typically in response to
changes in a particular company's financial condition and factors
affecting the market in general. For example, unfavorable or
unanticipated poor earnings performance of a company may result
in a decline in its stock's price, and a broad-based market drop
may also cause a stock's price to fall.

o Non-diversification. The Technology Sector Series is
"non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended, which means that the Series may
hold a smaller number of issuers than if it were "diversified."
With a smaller number of different issuers, the Technology Sector
Series is subject to more risk than another fund holding a larger
number of issuers, since changes in the financial condition or
market status of a single issuer may cause greater fluctuation in
the Technology Sector Series' total return and share price.

o Industry concentration risk. Because the Technology Sector Series
is only investing in common stocks of technology related
companies, the Series' performance is closely tied to, and
affected by, the technology industry. Companies within an
industry are often faced with the same obstacles, issues or
regulatory burdens, and their common stock may react similarly
and move in unison to these and other market conditions. As a
result of these factors, stocks in which the Technology Sector
Series will invest may be more volatile than a mixture of stocks
of companies from a wide variety of industries.

The technology industry is among the fastest growing and fastest
changing industries in the world. However, it is important to
note that companies engaged in the technology industry are
subject to fierce competition and their products and services may
be subject to rapid obsolescence.

o Foreign investing risk. Because the Technology Sector Series
invests in stocks of foreign companies, it is also subject to
foreign investing risk. Foreign investing involves risks not
typically associated with U.S. investment. These risks include,
among others, adverse fluctuations in foreign currency values as
well as adverse political, social and economic developments
affecting a foreign country. In addition, foreign investing
involves less publicly available information, more volatile or
less liquid securities markets. Investments in foreign countries
could be affected by factors not present in the U.S., such as
restrictions on receiving the investment proceeds from a foreign
country, foreign tax laws, and potential difficulties in
enforcing contractual obligations. Transactions in foreign
securities may be subject to less efficient settlement practices,
including extended clearance and settlement periods. Foreign
accounting may be less revealing than American accounting
practices. Foreign regulation may be inadequate or irregular.
Owning foreign securities could cause the Technology Sector
Series' performance to fluctuate more than if it held only U.S.
securities.

o Currency risk. The value of the Technology Sector Series' shares
may change as a result of changes in exchange rates reducing the
value of the U.S. dollar value of the Technology Sector Series'
foreign investments. Currency exchange rates can be volatile and
affected by a number of factors, such as the general economics of
a country, the actions of U.S. and foreign governments or central
banks, the imposition of currency controls, and speculation.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES.

The companies selected for the Technology Sector Series have been researched and
evaluated using database screening techniques, fundamental analysis, and the
judgment of the sub-adviser's research analysts. The companies in which the
Technology Sector Series will invest will generally have market capitalizations
of at least $500 million and have been publicly traded for two years or more.

In addition, the performance of the Technology Sector Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

The SAI has more information about the Technology Sector Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
JNL/FIRST TRUST PHARMACEUTICAL/HEALTHCARE SECTOR SERIES

INVESTMENT OBJECTIVE. The objective of the JNL/First Trust
Pharmaceutical/Healthcare Sector Series (Pharmaceutical/Healthcare Sector
Series) is a high total return through capital appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Pharmaceutical/Healthcare Sector Series
will invest in a portfolio of common stocks issued by pharmaceutical and/or
healthcare companies.

PRINCIPAL RISKS OF INVESTING IN THE PHARMACEUTICAL/HEALTHCARE SECTOR SERIES. An
investment in the Pharmaceutical/Healthcare Sector Series is not guaranteed. As
with any mutual fund, the value of the Pharmaceutical/Healthcare Sector Series'
shares will change and you could lose money by investing in this Series. A
variety of factors may influence its investment performance, such as:

o Market risk. Because the Pharmaceutical/Healthcare Sector Series
invests in stocks of U.S. and foreign companies, it is subject to
stock market risk. Stock prices typically fluctuate more than the
values of other types of securities, typically in response to
changes in a particular company's financial condition and factors
affecting the market in general. For example, unfavorable or
unanticipated poor earnings performance of a company may result
in a decline in its stock's price, and a broad-based market drop
may also cause a stock's price to fall.

o Non-diversification. The Pharmaceutical/Healthcare Sector Series
is "non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended, which means that the Series may
hold a smaller number of issuers than if it were "diversified."
With a smaller number of different issuers, the
Pharmaceutical/Healthcare Sector Series is subject to more risk
than another fund holding a larger number of issuers, since
changes in the financial condition or market status of a single
issuer may cause greater fluctuation in the
Pharmaceutical/Healthcare Sector Series' total return and share
price.

o Industry concentration risk. Because the
Pharmaceutical/Healthcare Sector Series is only investing in
common stocks of pharmaceutical/healthcare related companies, the
Series' performance is closely tied to, and affected by, the
pharmaceutical/healthcare industry. Companies within an industry
are often faced with the same obstacles, issues or regulatory
burdens, and their common stock may react similarly and move in
unison to these and other market conditions. As a result of these
factors, stocks in which the Pharmaceutical/Healthcare Sector
Series will invest may be more volatile than a mixture of stocks
of companies from a wide variety of industries.

The pharmaceutical and healthcare industries continue to evolve,
and as a result, pharmaceutical and healthcare companies need to
keep pace with this constant change, in order to be successful.
However, it is important to note that companies engaged in the
pharmaceutical industry are subject to fierce competition,
stringent government regulation and the risk that their products
and services are subject to rapid obsolescence.

o Foreign investing risk. Because the Pharmaceutical/Healthcare
Sector Series invests in stocks of foreign companies, it is also
subject to foreign investing risk. Foreign investing involves
risks not typically associated with U.S. investment. These risks
include, among others, adverse fluctuations in foreign currency
values as well as adverse political, social and economic
developments affecting a foreign country. In addition, foreign
investing involves less publicly available information, more
volatile or less liquid securities markets. Investments in
foreign countries could be affected by factors not present in the
U.S., such as restrictions on receiving the investment proceeds
from a foreign country, foreign tax laws, and potential
difficulties in enforcing contractual obligations. Transactions
in foreign securities may be subject to less efficient settlement
practices, including extended clearance and settlement periods.
Foreign accounting may be less revealing than American accounting
practices. Foreign regulation may be inadequate or irregular.
Owning foreign securities could cause the
Pharmaceutical/Healthcare Sector Series' performance to fluctuate
more than if it held only U.S. securities.

o Currency risk. The value of the Pharmaceutical/Healthcare Sector
Series' shares may change as a result of changes in exchange
rates reducing the value of the U.S. dollar value of the
Pharmaceutical/Healthcare Sector Series' foreign investments.
Currency exchange rates can be volatile and affected by a number
of factors, such as the general economics of a country, the
actions of U.S. and foreign governments or central banks, the
imposition of currency controls, and speculation.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES.

The companies selected for the Pharmaceutical/Healthcare Sector Series have been
researched and evaluated using database screening techniques, fundamental
analysis, and the judgment of the sub-adviser's research analysts. In addition,
the performance of the Pharmaceutical/Healthcare Sector Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

The SAI has more information about the Pharmaceutical/Healthcare Sector Series'
authorized investments and strategies, as well as the risks and restrictions
that may apply to them.

<PAGE>
JNL/FIRST TRUST FINANCIAL SECTOR SERIES

INVESTMENT OBJECTIVE. The objective of the JNL/First Trust Financial Sector
Series (Financial Sector Series) is a high total return through capital
appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Financial Sector Series invests in a
portfolio of common stocks of companies which may include money center banks,
major regional banks, financial and investment service providers and insurance
companies.

PRINCIPAL RISKS OF INVESTING IN THE FINANCIAL SECTOR SERIES. An investment in
the Financial Sector Series is not guaranteed. As with any mutual fund, the
value of the Financial Sector Series' shares will change and you could lose
money by investing in this Series. A variety of factors may influence its
investment performance, such as:

o Market risk. Because the Financial Sector Series invests in
stocks of U.S. and foreign companies, it is subject to stock
market risk. Stock prices typically fluctuate more than the
values of other types of securities, typically in response to
changes in a particular company's financial condition and factors
affecting the market in general. For example, unfavorable or
unanticipated poor earnings performance of a company may result
in a decline in its stock's price, and a broad-based market drop
may also cause a stock's price to fall.

o Non-diversification. The Financial Sector Series is
"non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended (1940 Act), which means that the
Series may hold a smaller number of issuers than if it were
"diversified." With a smaller number of different issuers, the
Financial Sector Series is subject to more risk than another fund
holding a larger number of issuers, since changes in the
financial condition or market status of a single issuer may cause
greater fluctuation in the Financial Sector Series' total return
and share price. Notwithstanding the foregoing, and in compliance
with the 1940 Act, the Financial Sector Series does not intend to
invest more than 5% of the value of its total assets in the
common stock of any issuer that derives more than 15% of its
gross revenues from securities-related activities.

o Industry concentration risk. Because the Financial Sector Series
is only investing in common stocks of financial related
companies, the Series' performance is closely tied to, and
affected by, the financial industry. Companies within an industry
are often faced with the same obstacles, issues or regulatory
burdens, and their common stock may react similarly and move in
unison to these and other market conditions. As a result of these
factors, stocks in which the Financial Sector Series will invest
may be more volatile than a mixture of stocks of companies from a
wide variety of industries.

The financial services industry continues to evolve as banks and
insurers expand their businesses through innovative products and
services. However, it is important to note that the financial
services industry is subject to the adverse effect of volatile
interest rates, economic recession, increased competition from
new entrants in the field and potential increased regulation.

o Foreign investing risk. Because the Financial Sector Series
invests in stocks of foreign companies, it is also subject to
foreign investing risks. Foreign investing involves risks not
typically associated with U.S. investment. These risks include,
among others, adverse fluctuations in foreign currency values as
well as adverse political, social and economic developments
affecting a foreign country. In addition, foreign investing
involves less publicly available information, more volatile or
less liquid securities markets.Investments in foreign countries
could be affected by factors not present in the U.S., such as
restrictions on receiving the investment proceeds from a foreign
country, foreign tax laws, and potential difficulties in
enforcing contractual obligations. Transactions in foreign
securities may be subject to less efficient settlement practices,
including extended clearance and settlement periods. Foreign
accounting may be less revealing than American accounting
practices. Foreign regulation may be inadequate or irregular.
Owning foreign securities could cause the Financial Sector
Series' performance to fluctuate more than if it held only U.S.
securities.

o Currency risk. The value of the Financial Sector Series' shares
may change as a result of changes in exchange rates reducing the
value of the U.S. dollar value of the Financial Sector Series'
foreign investments. Currency exchange rates can be volatile and
affected by a number of factors, such as the general economics of
a country, the actions of U.S. and foreign governments or central
banks, the imposition of currency controls, and speculation.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES.

The companies selected for the Financial Sector Series have been researched and
evaluated using database screening techniques, fundamental analysis and the
judgment of the sub-adviser's research analysts. In addition, the performance of
the Financial Sector Series depends on the sub-adviser's ability to effectively
implement the investment strategies of the Financial Sector Series.

The SAI has more information about the Financial Sector Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
JNL/FIRST TRUST ENERGY SECTOR SERIES

INVESTMENT OBJECTIVE. The objective of the JNL/First Trust Energy Sector Series
(Energy Sector Series) is a high total return through capital appreciation and
dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Energy Sector Series will invest in a
portfolio of common stocks of energy industry companies. The Energy Sector
Series' portfolio will include companies from across various areas of the energy
industry, including integrated oil, oil field services and equipment, oil and
gas production, and natural gas.

PRINCIPAL RISKS OF INVESTING IN THE ENERGY SECTOR SERIES. An investment in the
Energy Sector Series is not guaranteed. As with any mutual fund, the value of
the Energy Sector Series' shares will change and you could lose money by
investing in this Series.
A variety of factors may influence its investment performance, such as:

o Market risk. Because the Energy Sector Series invests in stocks
of U.S. and foreign companies, it is subject to stock market
risk. Stock prices typically fluctuate more than the values of
other types of securities, typically in response to changes in a
particular company's financial condition and factors affecting
the market in general. For example, unfavorable or unanticipated
poor earnings performance of a company may result in a decline in
its stock's price, and a broad-based market drop may also cause a
stock's price to fall.

o Non-diversification. The Energy Sector Series is
"non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended, which means that the Series may
hold a smaller number of issuers than if it were "diversified."
With a smaller number of different issuers, the Energy Sector
Series is subject to more risk than another fund holding a larger
number of issuers, since changes in the financial condition or
market status of a single issuer may cause greater fluctuation in
the Energy Sector Series' total return and share price.

o Industry concentration risk. Because the Energy Sector Series is
only investing in common stocks of energy related companies, the
Series' performance is closely tied to, and affected by, the
energy industry. Companies within an industry are often faced
with the same obstacles, issues or regulatory burdens, and their
common stock may react similarly and move in unison to these and
other market conditions. As a result of these factors, stocks in
which the Energy Sector Series will invest are more volatile than
a mixture of stocks of companies from a wide variety of
industries.

o Foreign investing risk. Because the Energy Sector Series invests
in stocks of foreign companies, it is also subject to foreign
investing risk. Foreign investing involves risks not typically
associated with U.S. investment. These risks include, among
others, adverse fluctuations in foreign currency values as well
as adverse political, social and economic developments affecting
a foreign country. In addition, foreign investing involves less
publicly available information, more volatile or less liquid
securities markets. Investments in foreign countries could be
affected by factors not present in the U.S., such as restrictions
on receiving the investment proceeds from a foreign country,
foreign tax laws, and potential difficulties in enforcing
contractual obligations. Transactions in foreign securities may
be subject to less efficient settlement practices, including
extended clearance and settlement periods. Foreign accounting may
be less revealing than American accounting practices. Foreign
regulation may be inadequate or irregular. Owning foreign
securities could cause the Energy Sector Series' performance to
fluctuate more than if it held only U.S. securities.

o Currency risk. The value of the Energy Sector Series' shares may
change as a result of changes in exchange rates reducing the
value of the U.S. dollar value of the Energy Sector Series'
foreign investments. Currency exchange rates can be volatile and
affected by a number of factors, such as the general economics of
a country, the actions of U.S. and foreign governments or central
banks, the imposition of currency controls, and speculation.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES.

The companies selected for the Energy Sector Series have been researched and
evaluated using database screening techniques, fundamental analysis and the
judgment of the sub-adviser's research analysts.

In addition, the performance of the Energy Sector Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

The SAI has more information about the Energy Sector Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
JNL/FIRST TRUST LEADING BRANDS SECTOR SERIES

INVESTMENT OBJECTIVE. The objective of the JNL/First Trust Leading Brands Sector
Series (Leading Brands Sector Series) is a high total return through capital
appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Leading Brands Sector Series will invest in
a portfolio of common stocks of companies considered to be leaders in the
consumer goods industry.

PRINCIPAL RISKS OF INVESTING IN THE LEADING BRANDS SECTOR SERIES. An investment
in the Leading Brands Sector Series is not guaranteed. As with any mutual fund,
the value of the Leading Brands Sector Series' shares will change and you could
lose money by investing in this Series. A variety of factors may influence its
investment performance, such as:

o Market risk. Because the Leading Brands Sector Series invests in
stocks of U.S. and foreign companies, it is subject to stock
market risk. Stock prices typically fluctuate more than the
values of other types of securities, typically in response to
changes in a particular company's financial condition and factors
affecting the market in general. For example, unfavorable or
unanticipated poor earnings performance of a company may result
in a decline in its stock's price, and a broad-based market drop
may also cause a stock's price to fall.

o Non-diversification. The Leading Brands Sector Series is
"non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended, which means that the Series may
hold a smaller number of issuers than if it were "diversified."
With a smaller number of different issuers, the Leading Brands
Sector Series is subject to more risk than another fund holding a
larger number of issuers, since changes in the financial
condition or market status of a single issuer may cause greater
fluctuation in the Leading Brands Sector Series' total return and
share price.

o Industry concentration risk. Because the Leading Brands Sector
Series is only investing in common stocks of consumer goods
companies, the Series' performance is closely tied to, and
affected by, the consumer industry. Companies within an industry
are often faced with the same obstacles, issues or regulatory
burdens, and their common stock may react similarly and move in
unison to these and other market conditions. As a result of these
factors, stocks in which the Leading Brands Sector Series will
invest may be more volatile than a mixture of stocks of companies
from a wide variety of industries.

o Foreign investing risk. Because the Leading Brands Sector Series
invests in stocks of foreign companies, it is also subject to
foreign investing risk. Foreign investing involves risks not
typically associated with U.S. investment. These risks include,
among others, adverse fluctuations in foreign currency values as
well as adverse political, social and economic developments
affecting a foreign country. In addition, foreign investing
involves less publicly available information, more volatile or
less liquid securities markets. Investments in foreign countries
could be affected by factors not present in the U.S., such as
restrictions on receiving the investment proceeds from a foreign
country, foreign tax laws, and potential difficulties in
enforcing contractual obligations. Transactions in foreign
securities may be subject to less efficient settlement practices,
including extended clearance and settlement periods. Foreign
accounting may be less revealing than American accounting
practices. Foreign regulation may be inadequate or irregular.
Owning foreign securities could cause the Leading Brands Sector
Series' performance to fluctuate more than if it held only U.S.
securities.

o Currency risk. The value of the Leading Brands Sector Series'
shares may change as a result of changes in exchange rates
reducing the value of the U.S. dollar value of the Leading Brands
Sector Series' foreign investments. Currency exchange rates can
be volatile and affected by a number of factors, such as the
general economics of a country, the actions of U.S. and foreign
governments or central banks, the imposition of currency
controls, and speculation.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES.

The companies selected for the Leading Brands Sector Series have been researched
and evaluated using database screening techniques, fundamental analysis, and the
judgment of the sub-adviser's research analysts.

In addition, the performance of the Leading Brands Sector Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

The SAI has more information about the Leading Brands Sector Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
JNL/FIRST TRUST COMMUNICATIONS SECTOR SERIES

INVESTMENT OBJECTIVE. The objective of the JNL/First Trust Communications Sector
Series (Communications Sector Series) is a high total return through capital
appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES. The Communications Sector Series invests in a
portfolio of common stocks of companies in the communications industry. These
companies may include domestic and international companies involved in cable
television, computer networking, communications equipment, communications
services and wireless communications.

PRINCIPAL RISKS OF INVESTING IN THE COMMUNICATIONS SECTOR SERIES. An investment
in the Communications Sector Series is not guaranteed. As with any mutual fund,
the value of the Communications Sector Series' shares will change and you could
lose money by investing in this Series. A variety of factors may influence its
investment performance, such as:

o Market risk. Because the Communications Sector Series invests in
traded common stocks of U.S. and foreign companies, it is subject
to stock market risk. Stock prices typically fluctuate more than
the values of other types of securities, typically in response to
changes in a particular company's financial condition and factors
affecting the market in general. For example, unfavorable or
unanticipated poor earnings performance of a company may result
in a decline in its stock's price, and a broad-based market drop
may also cause a stock's price to fall.

o Non-diversification. The Communications Sector Series is
"non-diversified" as such term is defined in the Investment
Company Act of 1940, as amended, which means that the Series may
hold a smaller number of issuers than if it were "diversified."
With a smaller number of different issuers, the Communications
Sector Series is subject to more risk than another fund holding a
larger number of issuers, since changes in the financial
condition or market status of a single issuer may cause greater
fluctuation in the Communications Sector Series' total return and
share price.

o Industry concentration risk. Because the Communications Sector
Series is only investing in common stocks of communication
industry companies, the Series' performance is closely tied to,
and affected by, the communication industry. Companies within an
industry are often faced with the same obstacles, issues or
regulatory burdens, and their common stock may react similarly
and move in unison to these and other market conditions. As a
result of these factors, stocks in which the Communication Sector
Series will invest may be more volatile than a mixture of stocks
of companies from a wide variety of industries.

o Foreign investing risk. Because the Communications Sector Series
invest in stocks of foreign companies, it is also subject to
foreign investing risk. Foreign investing involves risks not
typically associated with U.S. investment. These risks include,
among others, adverse fluctuations in foreign currency values as
well as adverse political, social and economic developments
affecting a foreign country. In addition, foreign investing
involves less publicly available information, more volatile or
less liquid securities markets. Investments in foreign countries
could be affected by factors not present in the U.S., such as
restrictions on receiving the investment proceeds from a foreign
country, foreign tax laws, and potential difficulties in
enforcing contractual obligations. Transactions in foreign
securities may be subject to less efficient settlement practices,
including extended clearance and settlement periods. Foreign
accounting may be less revealing than American accounting
practices. Foreign regulation may be inadequate or irregular.
Owning foreign securities could cause the Communication Sector
Series' performance to fluctuate more than if it held only U.S.
securities.

o Currency risk. The value of the Communications Sector Series'
shares may change as a result of changes in exchange rates
reducing the value of the U.S. dollar value of the Communications
Sector Series' foreign investments. Currency exchange rates can
be volatile and affected by a number of factors, such as the
general economics of a country, the actions of U.S. and foreign
governments or central banks, the imposition of currency
controls, and speculation.

Performance for the Series has not been included because the Series had not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES.

The companies selected for the Communications Sector Series have been researched
and evaluated using database screening techniques, fundamental analysis, and the
judgment of the sub-adviser's research analysts.

In addition, the performance of the Communications Sector Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

The SAI has more information about the Communications Sector Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

<PAGE>
MORE ABOUT THE INVESTMENT OBJECTIVES AND RISKS OF ALL SERIES

INVESTMENT OBJECTIVES. The investment objectives and policies of each of the
Series are not fundamental and may be changed by the Board of Managers of the
Fund, without interest holder approval.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE TARGET AND SECTOR SERIES.

Target Series Generally. It is generally not possible for the sub-adviser to
purchase round lots (usually 100 shares) of stocks in amounts that will
precisely duplicate the prescribed mix of securities. Also, it usually will be
impossible for the Target Series to be 100% invested in the prescribed mix of
securities at any time. To the extent that the Target Series is not fully
invested, the interests of the interest holders may be diluted and total return
may not directly track the investment results of the prescribed mix of
securities. To minimize this effect, the sub-adviser will generally try, as much
as practicable, to maintain a minimum cash position at all times. Normally, the
only cash items held by the Target Series will be amounts expected to be
deducted as expenses and amounts too small to purchase additional round lots of
the securities.

The sub-adviser will attempt to replicate the percentage relationship of
securities when selling securities for the Target Series. The percentage
relationship among the number of securities in the Target Series should
therefore remain relatively stable. However, given the fact that the market
price of such securities will vary throughout the year, the value of the
securities of each of the companies as compared to the total assets of the
Target Series will fluctuate during the year, above and below the proportion
established on the annual Stock Selection Date. At the Stock Selection Date for
the Target Series, new securities will be selected and a new percentage
relationship will be established among the number of securities for the Target
Series.

Certain provisions of the Investment Company Act of 1940 limit the ability of a
Series to invest more than 5% of the Series' total assets in the stock of any
company that derives more than 15% of its gross revenues from securities related
activities (Securities Related Companies). The Fund has been granted by the
Securities and Exchange Commission (SEC) an exemption from this limitation so
that The Dow Target 5, The Dow Target 10, The S&P Target 10 and the Global
Target 15 Series may invest up to 20.5 (for The Dow Target 5 Series), 10.5% (for
The Dow Target 10 and The S&P Target 10 Series) and 6.67% (for the Global Target
15 Series) of the respective Series' total assets in the stock of Securities
Related Companies.

Sector Series Generally. The Sector Series may actively trade securities in
seeking to achieve their objectives. Doing so may increase transaction costs,
which may reduce performance.

DERIVATIVES. The sub-adviser may, but will not necessarily, utilize derivative
instruments, such as options, futures contracts, forward contracts, warrants,
indexed securities and repurchase agreements, for hedging and risk management.

For the Series that invest in stocks of foreign companies, the sub-adviser may
enter into forward contracts to manage the Series' exposure to changes in
foreign currencies associated with the purchase or sale of such stock. This
strategy minimizes the effect of currency appreciation as well as depreciation,
but does not protect against a decline in the underlying value of the hedged
security. In addition, this strategy may reduce or eliminate the opportunity to
profit from increases in the value of the original currency and may adversely
impact a Series' performance if the sub-adviser's projection of future exchange
rates is inaccurate.

Derivative instruments involve special risks. The Series sub-adviser must
correctly predict price movements, during the life of the derivative, of the
underlying asset in order to realize the desired results from the investment.
The value of derivatives may rise or fall more rapidly than other investments,
which may increase the volatility of the Series depending on the nature and
extent of the derivatives in the Series' portfolio. Additionally, if the
sub-adviser uses derivatives in attempting to manage or "hedge" the overall risk
of the Series' portfolio, the strategy might not be successful, for example, due
to changes in the value of the derivatives that do not correlate with
pricemovements in the rest of the portfolio.

DESCRIPTION OF INDICES. The portfolios of certain of the Series consist of the
common stocks of companies listed on various indices. Except as previously
described, the publishers of the indices have not granted the Fund or the Fund's
investment adviser a license to use their respective index. None of the Series
is designed or intended to result in prices that parallel or correlate with the
movements in any particular index or a combination of indices and it is expected
that their prices will not parallel or correlate with such movements. The
publishers of the indices have not participated in any way in the creation of
the Fund or any of the Series or in the selection of stocks in the Series. A
description of certain of the indices is provided below:

The Dow Jones Industrial Average(SM). The stocks included in the DJIA are chosen
by the editors of The Wall Street Journal as representative of the broad market
and of American industry. The companies are major factors in their industries
and their stocks are widely held by individuals and institutional investors.

The Financial Times Industrial Ordinary Share Index. The FT Index is comprised
of 30 common stocks chosen by the editors of The Financial Times as
representative of the British industry and commerce. This index is an unweighted
average of the share prices of selected companies. These companies are highly
capitalized and major factors in their industries. In addition, their stocks are
widely held by individuals and institutional investors.

The Hang Seng Index. The Hang Seng Index presently consists of 33 of the 358
stocks currently listed on the Stock Exchange of Hong Kong Ltd. (Hong Kong Stock
Exchange), and it includes companies intended to represent four major market
sectors: commerce and industry, finance, properties and utilities. The Hang Seng
Index is a recognized indicator of stock market performance in Hong Kong. It is
computed on an arithmetic basis, weighted by market capitalization, and is
therefore strongly influenced by stocks with large market capitalizations. The
Hang Seng Index represents approximately 70% of the total market capitalization
of the stocks listed on the Hong Kong Stock Exchange.

The Nasdaq-100 Index. The Nasdaq-100 Index represents the largest and most
active nonfinancial domestic and international issues listed on the Nasdaq Stock
Market(R). The index is calculated based on a modified capitalization weighted
methodology. The Nasdaq Stock Market lists nearly 5,400 companies and trades
more shares per day than any other major U.S. market.

The Standard & Poor's 500 Index. Widely regarded as the standard for measuring
large-cap U.S. stock market performance, the S&P 500 Index includes a
representative sample of leading U.S. companies in leading industries. The S&P
500 Index consists of 500 stocks chosen for market size, liquidity and industry
group representation. It is a market-value weighted index with each
stock'sweight in the Index proportionate to its market value.

LEGISLATION. At any time after the date of the Prospectus, legislation may be
enacted that could negatively affect the common stock in the Series or the
issuers of such common stock. Further, changing approaches to regulation may
have a negative impact on certain companies represented in the Series. There can
be no assurance that future legislation, regulation or deregulation will not
have a material adverse effect on the Series or will not impair the ability of
the issuers of the common stock held in the Series to achieve their business
goals.

<PAGE>
MANAGEMENT OF THE FUND

INVESTMENT ADVISER

Under Delaware law and the Fund's Certificate of Formation and Operating
Agreement, the management of the business and affairs of the Fund is the
responsibility of the Board of Managers of the Fund.

Jackson National Financial Services, LLC (JNFS), 5901 Executive Drive, Lansing,
Michigan 48911, is the investment adviser to the Fund and provides the Fund with
professional investment supervision and management. JNFS is a wholly owned
subsidiary of Jackson National Life Insurance Company (JNL), which is in turn
wholly owned by Prudential plc, a life insurance company in the United Kingdom.
JNFS is a successor to Jackson National Financial Services, Inc. which served as
an investment adviser to the JNL Series Trust, a registered investment company,
from its inception until July 1, 1998, when it transferred its duties as
investment adviser to JNFS.

JNFS has selected First Trust Advisors L.P. as sub-adviser to manage the
investment and reinvestment of the assets of the Series of the Fund. JNFS
monitors the compliance of the sub-adviser with the investment objectives and
related policies of each Series and reviews the performance of the sub-adviser
and reports periodically on such performance to the Board of Managers of the
Fund.

As compensation for its services, JNFS receives a fee from the Series computed
separately for each Series. The fee for each Series is stated as an annual
percentage of the net assets of the Series. The fee, which is accrued daily and
payable monthly, is calculated on the basis of the average net assets of each
Series. Once the average net assets of a Series exceed specified amounts, the
fee is reduced with respect to such excess.

Each Series is obligated to pay JNFS the following fee:

ASSETS FEES

$0 to $500 million.................................................... .75%
$500 million to $1 billion............................................ .70%
Over $1 billion....................................................... .65%

INVESTMENT SUB-ADVISER

First Trust Advisors L.P. (First Trust), an Illinois limited partnership formed
in 1991 and an investment adviser registered with the SEC under the Investment
Advisers Act of 1940, is the sub-adviser for each Series of the Fund. First
Trust's address is 1001 Warrenville Road, Lisle, Illinois 60532. First Trust is
a limited partnership with one limited partner, Grace Partners of Dupage L.P.,
and one general partner, Nike Securities Corporation. Grace Partners of Dupage
L.P. is a limited partnership with one general partner, Nike Securities
Corporation, and a number of limited partners. Nike Securities Corporation is an
Illinois corporation controlled by the Robert Donald Van Kampen family.

First Trust is also the portfolio supervisor of certain unit investment trusts
sponsored by Nike Securities L.P. (Nike Securities) which are substantially
similar to the certain of the Series in that they have the same investment
objectives as those Series but have a life of approximately one year. Nike
Securities specializes in the underwriting, trading and distribution of unit
investment trusts and other securities. Nike Securities, an Illinois limited
partnership formed in 1991, acts as sponsor for successive series of The First
Trust Combined Series, The First Trust Special Situations Trust, The First Trust
Insured Corporate Trust, The First Trust of Insured Municipal Bonds and The
First Trust GNMA.

Under the terms of the Sub-Advisory Agreement between First Trust and JNFS,
First Trust manages the investment and reinvestment of the assets of each
Series, subject to the oversight and supervision of JNFS and the Board of
Managers of the Fund. First Trust formulates a continuous investment program for
each Series consistent with its investment objectives and policies outlined in
this Prospectus. First Trust implements such programs by purchases and sales of
securities and regularly reports to JNFS and the Board of Managers of the Fund
with respect to the implementation of such programs.

As compensation for its services, First Trust receives a fee from JNFS computed
separately for each Series, stated as an annual percentage of the net assets of
such Series. The SAI contains a schedule of the management fees JNFS currently
is obligated to pay First Trust out of the advisory fee it receives from each
Series.

PORTFOLIO MANAGEMENT

There is no one individual primarily responsible for portfolio management
decisions for the Series. Investments are made under the direction of a
committee.

ADMINISTRATIVE FEE

In addition to the investment advisory fee, each Series pays to JNFS an
Administrative Fee. 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 operation of the Series. Inaccordance with the
Administration Agreement, JNFS is responsible for payment of expenses related to
legal, audit, fund accounting, custody, printing and mailing, managers 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.

INVESTMENT IN FUND INTERESTS

Interests in the Fund are currently sold to Jackson National Separate Account -
I, a separate account of JNL, 5901 Executive Drive, Lansing, Michigan 48911, to
fund the benefits under certain variable annuity contracts (Contracts). The
Separate Account purchases interests in the Series at net asset value using
premiums received on Contracts issued by JNL. Purchases are effected at net
asset value next determined after the purchase order, in proper form, is
received by the Fund's transfer agent. There is no sales charge.

Interests in the Fund are not available to the general public directly. The
Series are managed by a sub-adviser who manages publicly available unit
investment trusts having similar names and investment objectives. While some of
the Series may be similar to, and may in fact be modeled after publicly
available unit investment trusts, Contract purchasers should understand that the
Series are not otherwise directly related to any publicly available unit
investment trusts. Consequently, the investment performance of publicly
available unit investment trusts and any corresponding Series may differ
substantially.

The net asset value per interest of each Series is determined at the close of
regular trading on the New York Stock Exchange (normally 4:00 p.m., Eastern
time) each day that the New York Stock Exchange is open. The net asset value per
interest is calculated by adding the value of all securities and other assets of
a Series, deducting its liabilities, and dividing by the number of interests
outstanding. Generally, the value of exchange-listed or -traded securities is
based on their respective market prices, bonds are valued based on prices
provided by an independent pricing service and short-term debt securities are
valued at amortized cost, which approximates market value. A Series may invest
in securities primarily listed on foreign exchanges and that trade on days when
the Series does not price its interests. As a result, a Series' net asset value
may change on days when shareholders are not able to purchase or redeem the
Series' interests.

All investments in the Fund are credited to the interest holder's account in the
form of full and fractional shares of the designated Series (rounded to the
nearest 1/1000 of a share). The Fund does not issue interest certificates.

REDEMPTION OF FUND INTERESTS

Jackson National Separate Account - I redeems shares to make benefit or
withdrawal payments under the terms of its Contracts. Redemptions are processed
on any day on which the Fund is open for business and are effected at net asset
value next determined after the redemption order, in proper form, is received.

The Fund may suspend the right of redemption only under the following unusual
circumstances:

o when the New York Stock Exchange is closed (other than weekends
and holidays) or trading is restricted;

o when an emergency exists, making disposal of portfolio securities
or the valuation of net assets not reasonably practicable; or

o during any period when the SEC has by order permitted a
suspension of redemption for the protection of shareholders.

TAX STATUS

GENERAL

The Fund is a limited liability company with all of its interests owned by a
single entity, Jackson National Separate Account -I. Accordingly, the Fund is
taxed as part of the operations of JNL and is not taxed separately. Under
current tax law, interest, dividend income and capital gains of the Fund are not
currently taxable when left to accumulate within a variable annuity contract.
For a discussion of the tax status of the variable annuity policy, please refer
to the prospectus for Jackson National Separate Account - I.

INTERNAL REVENUE SERVICE DIVERSIFICATION REQUIREMENTS

The Series intend to comply with the diversification requirements currently
imposed by the Internal Revenue Service on separate accounts of insurance
companies as a condition of maintaining the tax deferred status of the variable
annuity policies issued by Jackson National Separate Account - I. The
Sub-Advisory Agreement requires the Series to be operated in compliance with
these diversification requirements. First Trust, as sub-adviser, reserves the
right to depart from the investment strategy of a Series in order to meet these
diversification requirements. See the SAI for more specific information.

<PAGE>
HYPOTHETICAL PERFORMANCE DATA FOR TARGET STRATEGIES

As of the date of this Prospectus, the Series has not been in operation for a
full fiscal year. However, certain aspects of the investment strategies for The
Dow Target 5 Series, The Dow Target 10 Series, the S&P Target 10 Series, the
Global Target 15 Series, the Target 25 Series, and the Target Small-Cap Series
(Target Series) can be demonstrated using historical data. The following table
illustrates the hypothetical performance of the investment strategies used by
each Target Series and the actual performance of the DJIA, the S&P 500 Index,
the FT Index, the Hang Seng Index, the Ibbotson Small Cap Index and a
combination index made up of one-third of the total returns of each of the DJIA,
the Hang Sang and the FT Indices. The table also shows how performance varies
from year to year.

The information for the Target Strategies assumes that each Strategy was fully
invested as of the beginning of each year and that each Stock Selection Date was
the first of the year. In addition, the performance information does not take
into consideration any sales charges, commissions, insurance fees or charges
imposed on the sale of the variable annuity policies, expenses or taxes. Any of
such charges will lower the returns shown.

The information provided below has been stated in U.S. dollars and therefore has
been adjusted to reflect currency exchange rate fluctuations. Also, the
information provided for the Target 25 Strategy and the Target Small-Cap
Strategy excludes common stocks of companies which on a Stock Selection Date
were party to a publicly announced business combination which was expected to
have been completed within six months.

The returns shown below for the Target Strategies do not represent the results
of actual trading using client assets but were achieved by means of the
retroactive application of strategies that were designed with the benefit of
hindsight. These returns should not be considered indicative of the skill of the
sub-adviser. The returns may not reflect the impact that any material market or
economic factors might have had if the Strategies had been used during the
periods shown to actually manage client assets. During a portion of the period
shown in the table below, the sub-adviser acted as the portfolio supervisor of
certain unit investment trusts which employed strategies similar to the
hypothetical strategies shown below.

The returns shown below for the Target Strategies are not a guarantee of future
performance and should not be used to predict the expected returns on a Target
Strategy. In fact, each hypothetical Target Strategy underperformed its
respective index in certain years.

<PAGE>

HYPOTHETICAL COMPARISON OF TOTAL RETURN
<TABLE>
<CAPTION>

Year Target 25 Target 10 Target 5 Global Target S&P S&P 500 FT Index Hang Seng
---- --------- ---------- --------- ------ ------ --- ------- -------- ---------
Strategy Strategy Strategy Target 15 Small-Cap Target Index Index
-------- -------- -------- ---------- --------- ------ ----- -----
Strategy Strategy Strategy
-------- -------- --------

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1980 26.45% 27.90% 41.69% 52.51% 61.97% 54.15% 32.11% 31.77% 65.48%
1981 8.52% 7.46% 3.19% 0.03% -9.46% -10.59% -4.92% -5.30% -12.34%
1982 30.83% 27.12% 43.37% -2.77% 51.26% 38.21% 21.14% 0.42% -48.01%
1983 32.09% 39.07% 36.38% 15.61% 31.04% 20.01% 22.28% 21.94% -2.04%
1984 5.55% 6.22% 11.12% 29.88% -1.10% 16.34% 6.22% 2.15% 42.61%
1985 41.89% 29.54% 38.34% 54.06% 50.81% 43.49% 31.77% 54.74% 50.95%
1986 25.01% 35.63% 30.89% 38.11% 23.35% 21.81% 18.31% 24.36% 51.16%
1987 14.41% 5.59% 10.69% 17.52% 14.94% 9.16% 5.33% 37.13% -6.84%
1988 27.18% 24.75% 21.47% 24.26% 23.19% 20.35% 16.64% 9.00% 21.04%
1989 22.98% 26.97% 10.55% 15.98% 26.10% 39.62% 31.35% 20.07% 10.59%
1990 -0.82% -7.82% -15.74% 3.19% 1.08% -5.64% -3.30% 11.03% 11.71%
1991 37.67% 34.20% 62.03% 40.40% 59.55% 24.64% 30.40% 8.77% 50.68%
1992 15.14% 7.69% 22.90% 26.64% 27.81% 24.66% 7.62% -3.13% 34.73%
1993 15.22% 27.08% 34.01% 65.65% 22.47% 42.16% 9.95% 19.22% 124.95%
1994 9.73% 4.21% 8.27% -7.26% 2.11% 8.17% 1.34% 1.97% -29.34%
1995 36.69% 36.85% 30.50% 13.45% 41.65% 25.26% 37.22% 16.21% 27.52%
1996 28.53% 28.35% 26.20% 21.00% 34.96% 26.61% 22.82% 18.35% 37.86%
1997 30.69% 21.68% 19.97% -6.38% 16.66% 61.46% 33.21% 14.78% -17.69%
1998 1.83% 10.59% 12.36% 13.50% 1.85% 53.85% 28.57% 12.32% -2.60%
1999 -.41% 5.06% -7.28% 8.88% 12.88% 3.49% 20.94% 15.25% 71.34%
</TABLE>
<TABLE>
<CAPTION>
Year DJIA Ibbotson Cumulative
---- ---- -------- ----------
Small-Cap Index Returns
--------- -------------
Index (3)
----- ---

(1) The Target 25 Strategy, the Target Small-Cap Strategy, the Target 10
Strategy, the Target 5 Strategy and the Global Target 15 Strategy for any given
period were selected by applying the respective strategy as of the close of the
prior period.

(2) The total return shown does not take into consideration any sales charges,
commissions, expenses or taxes. Total return assumes that all dividends are
reinvested semi-annually (with the exception of the FT Index and the Hang Seng
Index from 12/31/80 through 12/31/86, during which time annual reinvestment was
assumed), and all returns are stated in terms of the United States dollar. Based
on the year-by-year returns contained in the table, over the 20 full years
listed above, the Target 25 Strategy achieved an average annual total return of
19.75%, the Target Small-Cap Strategy achieved an average annual total return of
23.03%, the Target 10 Strategy achieved an average annual total return of
19.13%, and the Target 5 Strategy achieved an average annual total return of
20.67%, the S&P Target Strategy achieved an average annual total return of
3.49%and the Global Target 15 Strategy achieved an average annual total return
of 19.61%. In addition, over this period, each individual strategy achieved a
greater average annual total return than that of its corresponding index, the
S&P 500 Index, Ibbotson Small-Cap Index, the DJIA or a combination of the FT
Index, Hang Seng Index and DJIA, which were 17.75%, 15.39%, 18.10% and 18.25%,
respectively. Although each Strategy seeks to achieve a better performance than
its respective index as a whole, there can be no assurance that a Strategy will
achieve a better performance.

(3) Cumulative Index Returns represent the average of the annual returns of the
stocks contained in the FT Index, Hang Seng Index and DJIA. Cumulative Index
Returns do not represent an actual index.

<PAGE>
FINANCIAL HIGHLIGHTS

The following table provides selected per interest data for one share of each
Series. The information does not reflect any charges imposed by an Account
investing in interests of the Series. You should refer to the appropriate
Account prospectus for additional information regarding such charges.

The information for each of the periods shown below has been audited by
PricewaterhouseCoopers LLP, independent accountants, and should be read in
conjunction with the financial statements and notes thereto, together with the
report of PricewaterhouseCoopers LLP thereon, in the Annual Report.

JNL/FIRST TRUST JNL/FIRST TRUST THE JNL/FIRST TRUST JNL/FIRST TRUST
THE DOW TARGET DOW TARGET 10 SERIES THE S&P TARGET GLOBAL TARGET 15
5 SERIES 10 SERIES SERIES
------------------ --------------------- ------------------- -------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
JULY 2, JULY 2, JULY 2, JULY 2,
1999* TO 1999* TO 1999* TO 1999* TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1999 1999 1999
------------------ --------------------- ------------------- -------------------

<S> <C> <C> <C> <C>
SELECTED PER SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD ...... $ 10.00 $ 10.00 $ 10.00 $ 10.00
--------------- --------------- --------------- ---------------

INCOME (LOSS) FROM OPERATIONS:
Net investment income ................... 0.06 0.05 0.01 0.11
Net realized and unrealized loss
on investments ........................ (2.27) (1.32) 1.05 (1.12)
--------------- --------------- --------------- ---------------
Total loss from operations ................ (2.21) (1.27) 1.06 (1.01)
--------------- --------------- --------------- ---------------

NET ASSET VALUE, END OF PERIOD ............ $ 7.79 $ 8.73 $ 11.06 $ 8.99
=============== =============== =============== ===============

TOTAL RETURN (A) .......................... (22.10) (12.70%) 10.60% (10.10)

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 3,852 $ 7,786 $ 9,192 $ 2,034
Ratio of expenses to average net
assets (b) ............................ 0.85% 0.85% 0.85% 0.90%
Ratio of net investment income to
average net assets (b) .................. 2.83% 2.53% 0.16% 3.44%
Portfolio turnover ...................... 40.15% 23.32% 27.91% 80.54%
</TABLE>

JNL/FIRST TRUST
JNL/FIRST TRUST JNL/FIRST TRUST PHARMACEUTICAL/
JNL/FIRST TRUST TARGET SMALL-CAP TECHNOLOGY SECTOR HEALTHCARE SECTOR
TARGET 25 SERIES SERIES SERIES SERIES

-------------------- -------------------- -------------------- --------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
JULY 2, JULY 2, JULY 2, JULY 2,
1999* TO 1999* TO 1999* TO 1999* TO
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1999 1999 1999
-------------------- -------------------- -------------------- --------------------

<S> <C> <C> <C> <C>
SELECTED PER SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD ...... $ 10.00 $ 10.00 $ 10.00 $ 10.00
--------------- --------------- --------------- ---------------

INCOME (LOSS) FROM OPERATIONS:
Net investment income ................... 0.08 (0.02) (0.01) -
Net realized and unrealized loss
on investments ........................ (1.78) 2.40 5.40 (0.26)
--------------- --------------- --------------- ---------------
Total loss from operations ................ (1.70) 2.38 5.39 (0.26)
--------------- --------------- --------------- ---------------

NET ASSET VALUE, END OF PERIOD ............ $ 8.30 $ 12.38 $ 15.39 $ 9.74
=============== =============== =============== ===============

TOTAL RETURN (A) .......................... (17.00)% 23.80% 53.90% (2.60)%

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1,858 $ 2,100 $ 7,834 $ 4,046
Ratio of expenses to average net
assets (b) ............................ 0.85% 0.85% 0.85% 0.85%
Ratio of net investment income to
average net assets (b) ................ 2.48% (0.39)% (0.40)% 0.15%
Portfolio turnover ...................... 66.31% 102.50% 55.71% 58.91%
</TABLE>

JNL/FIRST JNL/FIRST
TRUST TRUST ENERGY
FINANCIAL SECTOR SERIES
SECTOR SERIES
----------------- -----------------
PERIOD FROM PERIOD FROM
JULY 2, JULY 2,
1999* TO 1999* TO
DECEMBER 31, DECEMBER 31,
1999 1999
----------------- -----------------

SELECTED PER SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD ...... $ 10.00 $ 10.00
--------------- ---------------

INCOME (LOSS) FROM OPERATIONS:
Net investment income ................... 0.02 0.04
Net realized and unrealized loss
on investments ........................ (1.05) 0.23
--------------- ---------------
Total loss from operations ................ (1.03) 0.27
--------------- ---------------

NET ASSET VALUE, END OF PERIOD ............ $ 8.97 $ 10.27
=============== ===============

TOTAL RETURN (A) .......................... (10.30)% 2.70%

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 2,496 $ 762
Ratio of expenses to average net
assets (b) ............................ 0.85% 0.85%
Ratio of net investment income to
average net assets (b) ................ 0.73% 0.47%
Portfolio turnover ...................... 61.54% 103.06%

- --------------------------------------------------------------------------------
* 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.

<PAGE>
The following table provides selected per interest data for one interest of each
Series. The information does not reflect any charges imposed by an Account
investing in interests of the Series. You should refer to the appropriate
Account prospectus for additional information regarding such charges.

JNL/FIRST TRUST JNL/FIRST TRUST
LEADING BRANDS COMMUNICATIONS
SECTOR SERIES SECTOR SERIES
----------------- -----------------
PERIOD FROM PERIOD FROM
JULY 2, JULY 2,
1999* TO 1999* TO
DECEMBER 31, DECEMBER 31,
1999 1999
----------------- -----------------

SELECTED PER SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD ...... $ 10.00 $ 10.00
--------------- ---------------

INCOME (LOSS) FROM OPERATIONS:
Net investment income ................... 0.03 -
Net realized and unrealized loss
on investments ........................ (0.48) 5.09
--------------- ---------------
Total loss from operations ................ (0.45) 5.09
--------------- ---------------

NET ASSET VALUE, END OF PERIOD ............ $ 9.55 $ 15.09
=============== ===============

TOTAL RETURN (A) .......................... (4.50)% 50.90%

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 1,673 $ 5,049
Ratio of expenses to average net
assets (b) ............................ 0.85% 0.85%
Ratio of net investment income to
average net assets (b) ................ 0.76% (0.08%)
Portfolio turnover ...................... 98.23% 85.74%

<PAGE>
PROSPECTUS

May 1, 2000

JNL(R) VARIABLE FUND LLC

You can find more information about the Fund in:

o The Fund's STATEMENT OF ADDITIONAL INFORMATION (SAI) dated May 1,
2000, which contains further information about the Fund and the
Series, particularly their investment practices and restrictions.
The current SAI is on file with the Securities and Exchange
Commission (SEC) and is incorporated into the Prospectus by
reference (which means the SAI is legally part of the
Prospectus).

o The Fund's ANNUAL AND SEMI-ANNUAL REPORTS to shareholders, which
show the Series' actual investments and include financial
statements as of the close of the particular annual or
semi-annual period. The Annual Report also discusses the market
conditions and investment strategies that significantly affected
each Series' performance during the year covered by the report.

You may obtain a copy of the current SAI or the most recent Annual and
Semi-Annual Reports without charge, or make other inquiries, by calling (800)
766-4683, or writing the JNL Variable Fund LLC Service Center, P.O. Box 378002,
Denver, Colorado 80237-8002.

You may also obtain information about the Fund (including its current SAI and
most recent Annual and Semi-Annual Reports) from the SEC's Internet site
(http://www.sec.gov), by electronic request ([email protected]) or by writing
the SEC's Public Reference Section in Washington, D.C., 20549-0102. You can find
out about the operation of the Public Reference Section and copying charges by
calling 1-202-942-8090.

File No.: 811-09121

<PAGE>
PROSPECTUS

May 1, 2000

JNL(R) VARIABLE FUND LLC
225 West Wacker Drive o Chicago, Illinois 60606

This Prospectus provides you with the basic information you should know before
investing in the JNL Variable Fund LLC (Fund).

The interests of the Fund are sold to Jackson National Separate Account III to
fund the benefits of variable annuity contracts. The Fund currently offers
interests in the following Series:

JNL/First Trust The Dow(SM) Target 10 Series

For more detailed information about the Fund and the Series, see the Fund's
Statement of Additional Information (SAI), which is incorporated by reference
into this Prospectus.

<PAGE>

"Dow Jones", "Dow Jones Industrial Average(SM)", "DJIA(SM)", and "The Dow
10(SM)" are service marks of Dow Jones & Company, Inc. (Dow Jones) Dow Jones has
no relationship to the Fund, other than the licensing of the Dow Jones
Industrial Average (DJIA) and its service marks for use in connection with the
JNL/First Trust The Dow Target 10 Series.

DOW JONES DOES NOT:

o Sponsor, endorse, sell or promote the JNL/First Trust The Dow Target 10
Series.
o Recommend that any person invest in the JNL/First Trust The Dow Target 10
Series or any other securities.
o Have any responsibility or liability for or make any decisions about the
timing, amount or pricing of the JNL/First Trust The Dow Target 10 Series.
o Have any responsibility or liability for the administration, management or
marketing of the JNL/First Trust The Dow Target 10 Series.
o Consider the needs of the JNL/First Trust The Dow Target 10 Series or the
owners of the JNL/First Trust The Dow Target 10 Series in determining,
composing or calculating the DJIA or have any obligation to do so.

- --------------------------------------------------------------------------------

DOW JONES WILL NOT HAVE ANY LIABILITY IN CONNECTION WITH THE JNL/FIRST TRUST THE
DOW TARGET 10 SERIES.
SPECIFICALLY,

o DOW JONES DOES NOT MAKE ANY WARRANTY, EXPRESS OR IMPLIED, AND DOW JONES
DISCLAIMS ANY WARRANTY ABOUT:
o THE RESULTS TO BE OBTAINED BY THE JNL/FIRST TRUST THE DOW TARGET 10
SERIES, THE OWNERS OF THE JNL/FIRST TRUST THE DOW TARGET 10 SERIES OR
ANY OTHER PERSON IN CONNECTION WITH THE USE OF THE DJIA AND THE DATA
INCLUDED IN THE DJIA;
o THE ACCURACY OR COMPLETENESS OF THE DJIA AND ITS DATA;
o THE MERCHANTABILITY AND THE FITNESS FOR A PARTICULAR PURPOSE OR USE OF
THE DJIA AND ITS DATA;
o DOW JONES WILL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS
IN THE DJIA OR ITS DATA;
o UNDER NO CIRCUMSTANCES WILL DOW JONES BE LIABLE FOR ANY LOST PROFITS OR
INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF DOW
JONES KNOWS THAT THEY MIGHT OCCUR.

THE LICENSING AGREEMENT BETWEEN FIRST TRUST ADVISORS L.P. AND DOW JONES IS
SOLELY FOR THEIR BENEFIT AND NOT FOR THE BENEFIT OF THE OWNERS OF THE JNL/FIRST
TRUST THE DOW TARGET 10 SERIES OR ANY OTHER THIRD PARTIES.
- --------------------------------------------------------------------------------

"JNL(R)", "Jackson National(R)" and "Jackson National Life(R)" are trademarks
of Jackson National Life Insurance Company.

<PAGE>

TABLE OF CONTENTS

About the JNL/First Trust The Dow(SM) Target 10 Series ....................1

Investment Objective .............................................1

Principal Investment Strategies ..................................1

Principal Risks of Investing in The Dow Target 10 Series .........1

Additional Information About the Principal Investment
Strategies, Other Investments and Risks of The Dow
Target 10 Series .................................................2

Management of the Fund ....................................................4

Investment Adviser ...............................................4

Investment Sub-Adviser ...........................................4

Portfolio Management .............................................5

Administrative Fee ........................................................5

Investment in Fund Interests ..............................................5

Redemption of Fund Interests ..............................................5

Tax Status ................................................................6

General ..........................................................6

Internal Revenue Services Diversification Requirements ...........6

Hypothetical Performance Data for Target Strategy .........................7

Financial Highlights ......................................................8

<PAGE>

ABOUT THE JNL/FIRST TRUST THE DOW(SM) TARGET 10 SERIES

INVESTMENT OBJECTIVE

The investment objective of the JNL/First Trust The Dow(SM) Target 10 Series
(The Dow Target 10 Series) is a high total return through a combination of
capital appreciation and dividend income.

PRINCIPAL INVESTMENT STRATEGIES

The Dow Target 10 Series seeks to achieve its objective by investing
approximately equal amounts in the common stock of the ten companies included in
the Dow Jones Industrial Average(SM) (DJIA) which have the highest dividend
yields on or about the business day before each Stock Selection Date. The ten
companies will be selected annually, beginning July 1, 1999, and on each one
year anniversary thereof (Stock Selection Date). The sub-adviser generally uses
a buy and hold strategy, trading only on each Stock Selection Date and when cash
flow activity occurs in the Series.

PRINCIPAL RISKS OF INVESTING IN THE DOW TARGET 10 SERIES

An investment in The Dow Target 10 Series is not guaranteed. As with any mutual
fund, the value of The Dow Target 10 Series' shares will change and you could
lose money by investing in this Series. A variety of factors may influence its
investment performance, such as:

o Market risk. Because The Dow Target 10 Series invests in
U.S.-traded equity securities, it is subject to stock market risk.
Stock prices typically fluctuate more than the values of other
types of securities, typically in response to changes in a
particular company's financial condition and factors affecting the
market in general. For example, unfavorable or unanticipated poor
earnings performance of a company may result in a decline in its
stock's price, and a broad-based market drop may also cause a
stock's price to fall.

o Non-diversification. The Dow Target 10 Series is "non-diversified"
as such term is defined in the Investment Company Act of 1940, as
amended, which means that the Series may hold a smaller number of
issuers than if it were "diversified." With a smaller number of
different issuers, The Dow Target 10 Series is subject to more
risk than another fund holding a larger number of issuers, since
changes in the financial condition or market status of a single
issuer may cause greater fluctuation in The Dow Target 10 Series'
total return and share price.

o Limited management. The Dow Target 10 Series' strategy of
investing in ten companies according to criteria determined on a
Stock Selection Date prevents The Dow Target 10 Series from
responding to market fluctuations. As compared to other funds,
this could subject The Dow Target 10 Series to more risk if one of
the selected stocks declines in price or if certain sectors of the
market, or the United States economy, experience downturns. The
investment strategy may also prevent The Dow Target 10 Series from
taking advantage of opportunities available to other funds.

In addition, the performance of The Dow Target 10 Series depends on the
sub-adviser's ability to effectively implement the investment strategies of this
Series.

Performance for the Series has not been included because the Series has not been
in operation for a full fiscal year as of December 31, 1999.

ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE DOW TARGET 10 SERIES

o the sub-adviser will determine the dividend yield on each common
stock in The DJIA on or about the business day before the Stock
Selection Date;

o the sub-adviser will allocate approximately equal amounts of The
Dow Target 10 Series to the ten companies in The DJIA that have
the highest dividend yield;

o the sub-adviser will determine the percentage relationship between
the number of shares of each of the ten common stocks selected.

The stocks in The Dow Target 10 Series are not expected to reflect the entire
DJIA nor track the movements of The DJIA.

It is generally not possible for the sub-adviser to purchase round lots (usually
100 shares) of stocks in amounts that will precisely duplicate the prescribed
mix of securities. Also, it usually will be impossible for The Dow Target 10
Series to be 100% invested in the prescribed mix of securities at any time. To
the extent that The Dow Target 10 Series is not fully invested, the interests of
the interest holders may be diluted and total return may not directly track the
investment results of the prescribed mix of securities. To minimize this effect,
the sub-adviser will generally try, as much as practicable, to maintain a
minimum cash position at all times. Normally, the only cash items held by The
Dow Target 10 Series will be amounts expected to be deducted as expenses and
amounts too small to purchase additional round lots of the securities.

The sub-adviser will attempt to replicate the percentage relationship of
securities when selling securities for The Dow Target 10 Series. The percentage
relationship among the number of securities in The Dow Target 10 Series should
therefore remain relatively stable. However, given the fact that the market
price of such securities will vary throughout the year, the value of the
securities of each of the companies as compared to the total assets of The Dow
Target 10 Series will fluctuate during the year, above and below the proportion
established on the annual Stock Selection Date. At the Stock Selection Date for
The Dow Target 10 Series, new securities will be selected and a new percentage
relationship will be established among the number of securities for the Series.

The sub-adviser may, but will not necessarily, utilize derivative instruments,
such as options, futures contracts, forward contracts, warrants, indexed
securities and repurchase agreements, for hedging and risk management.

The investment objectives and policies of The Dow Target 10 Series are not
fundamental and may be changed by the Board of Managers of the Fund, without
interest holder approval.

Certain provisions of the Investment Company Act of 1940 limit the ability of
the Series to invest more than 5% of the Series' total assets in the stock of
any company that derives more than 15% of its gross revenues from securities
related activities (Securities Related Companies). The Fund has been granted by
the Securities and Exchange Commission (SEC) an exemption from this limitation
so that The Dow Target 10 Series may invest up to 10.5% of the Series' total
assets in the stock of Securities Related Companies.

The SAI has more information about The Dow Target 10 Series' authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.

DESCRIPTION OF INDEX. The stocks included in The Dow Jones Industrial
Average(SM) are chosen by the editors of The Wall Street Journal as
representative of the broad market and of American industry. The companies are
major factors in their industries and their stocks are widely held by
individuals and institutional investors.

The portfolio of The Dow Target 10 Series consists of the common stocks of
companies listed on the DJIA. Except as previously described, the publisher of
the DJIA has not granted the Fund or the Fund's investment adviser a license to
use its index. The Dow Target 10 Series is not designed or intended to result in
prices that parallel or correlate with the movements in the DJIA and it is
expected that its prices will not parallel or correlate with such movements. The
publisher of the DJIA has not participated in any way in the creation of the
Fund or the Series or in the selection of stocks in the Series.

LEGISLATION. At any time after the date of the Prospectus, legislation may be
enacted that could negatively affect the common stock in The Dow Target 10
Series or the issuers of such common stock. Further, changing approaches to
regulation may have a negative impact on certain companies represented in The
Dow Target 10 Series. There can be no assurance that future legislation,
regulation or deregulation will not have a material adverse effect on the Series
or will not impair the ability of the issuers of the common stock held in the
Series to achieve their business goals.

<PAGE>

MANAGEMENT OF THE FUND

INVESTMENT ADVISER

Under Delaware law and the Fund's Certificate of Formation and Operating
Agreement, the management of the business and affairs of the Fund is the
responsibility of the Board of Managers of the Fund.

Jackson National Financial Services, LLC (JNFS), 5901 Executive Drive, Lansing,
Michigan 48911, is the investment adviser to the Fund and provides the Fund with
professional investment supervision and management. JNFS is a wholly owned
subsidiary of Jackson National Life Insurance Company (JNL), which is in turn
wholly owned by Prudential n plc, a life insurance company in the United
Kingdom. JNFS is a successor to Jackson National Financial Services, Inc. which
served as an investment adviser to the JNL Series Trust, a registered investment
company, from its inception until July 1, 1998, when it transferred its duties
as investment adviser to JNFS.

JNFS has selected First Trust Advisors L.P. as sub-adviser to manage the
investment and reinvestment of the assets of the Series of the Fund. JNFS
monitors the compliance of the sub-adviser with the investment objectives and
related policies of The Dow Target 10 Series and reviews the performance of the
sub-adviser and reports periodically on such performance to the Board of
Managers of the Fund.

As compensation for its services, JNFS receives a fee from the Series. The fee
is stated as an annual percentage of the net assets of the Series. The fee,
which is accrued daily and payable monthly, is calculated on the basis of the
average net assets of The Dow Target 10 Series. Once the average net assets of
the Series exceed specified amounts, the fee is reduced with respect to such
excess.

The Dow Target 10 Series is obligated to pay JNFS the following fee:

ASSETS FEES

$0 to $500 million......................................... .75%
$500 million to $1 billion................................. .70%
Over $1 billion............................................ .65%

INVESTMENT SUB-ADVISER

First Trust Advisors L.P. (First Trust), an Illinois limited partnership formed
in 1991 and an investment adviser registered with the SEC under the Investment
Advisers Act of 1940, is the sub-adviser for The Dow Target 10 Series. First
Trust's address is 1001 Warrenville Road, Lisle, Illinois 60532. First Trust is
a limited partnership with one limited partner, Grace Partners of Dupage L.P.,
and one general partner, Nike Securities Corporation. Grace Partners of Dupage
L.P. is a limited partnership with one general partner, Nike Securities
Corporation, and a number of limited partners. Nike Securities Corporation is an
Illinois corporation controlled by the Robert Donald Van Kampen family.

First Trust is also the portfolio supervisor of certain unit investment trusts
sponsored by Nike Securities L.P. (Nike Securities) which are substantially
similar to the Series in that they have the same investment objectives as the
Series but have a life of approximately one year. Nike Securities specializes in
the underwriting, trading and distribution of unit investment trusts and other
securities. Nike Securities, an Illinois limited partnership formed in 1991,
acts as sponsor for successive series of The First Trust Combined Series, The
First Trust Special Situations Trust, The First Trust Insured Corporate Trust,
The First Trust of Insured Municipal Bonds and The First Trust GNMA.

Under the terms of the Sub-Advisory Agreement between First Trust and JNFS,
First Trust manages the investment and reinvestment of the assets of The Dow
Target 10 Series, subject to the oversight and supervision of JNFS and the Board
of Managers of the Fund. First Trust formulates a continuous investment program
for the Series consistent with its investment objectives and policies outlined
in this Prospectus. First Trust implements such programs by purchases and sales
of securities and regularly reports to JNFS and the Board of Managers of the
Fund with respect to the implementation of such programs.

As compensation for its services, First Trust receives a fee from JNFS, stated
as an annual percentage of the net assets of The Dow Target 10 Series. The SAI
contains a schedule of the management fees JNFS currently is obligated to pay
First Trust out of the advisory fee it receives from The Dow Target 10 Series.

PORTFOLIO MANAGEMENT

There is no one individual primarily responsible for portfolio management
decisions for the Series. Investments are made under the direction of a
committee.

ADMINISTRATIVE FEE

In addition to the investment advisory fee, The Dow Target 10 Series pays to
JNFS an Administrative Fee of .10% 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 operation of the Series. In
accordance with the Administration Agreement,, JNFSis responsible for payment of
expenses related to legal, audit, fund accounting, custody, printing and
mailing, managers fees and all other services necessary for the operation of the
Series. The Series is responsible for trading expenses including brokerage
commissions, interest and taxes, and other non-operating expenses.

INVESTMENT IN FUND INTERESTS

Interests in the Fund are currently sold to Jackson National Separate Account
III, a separate account of JNL, 5901 Executive Drive, Lansing, Michigan 48911,
to fund the benefits under certain variable annuity contracts (Contracts). The
Separate Account purchases interests in the Series at net asset value using
premiums received on Contracts issued by JNL. Purchases are effected at net
asset value next determined after the purchase order, in proper form, is
received by the Fund's transfer agent. There is no sales charge.

Interests in the Fund are not available to the general public directly. The Dow
Target 10 Series is managed by a sub-adviser who manages publicly available unit
investment trusts having similar names and investment objectives. While the
Series may be similar to, and may in fact be modeled after publicly available
unit investment trusts, Contract purchasers should understand that the Series is
not otherwise directly related to any publicly available unit investment trust.
Consequently, the investment performance of publicly available unit investment
trusts and the Series may differ substantially.

The net asset value per interest of The Dow Target 10 Series is determined at
the close of regular trading on the New York Stock Exchange (normally 4:00 p.m.,
Eastern time) each day that the New York Stock Exchange is open. The net asset
value per interest is calculated by adding the value of all securities and other
assets of the Series, deducting its liabilities, and dividing by the number of
interests outstanding. Generally, the value of exchange-listed or -traded
securities is based on their respective market prices, bonds are valued based on
prices provided by an independent pricing service and short-term debt securities
are valued at amortized cost, which approximates market value.

All investments in the Fund are credited to the interest holder's account in the
form of full and fractional shares of the Series (rounded to the nearest 1/1000
of a share). The Fund does not issue interest certificates.

REDEMPTION OF FUND INTERESTS

Jackson National Separate Account III redeems shares to make benefit or
withdrawal payments under the terms of its Contracts. Redemptions are processed
on any day on which the Fund is open for business and are effected at net asset
value next determined after the redemption order, in proper form, is received.

The Fund may suspend the right of redemption only under the following unusual
circumstances:

o when the New York Stock Exchange is closed (other than weekends and
holidays) or trading is restricted;

o when an emergency exists, making disposal of portfolio securities or
the valuation of net assets not reasonably practicable; or

o during any period when the SEC has by order permitted a suspension of
redemption for the protection of shareholders.

TAX STATUS

GENERAL

The Fund is a limited liability company with all of its interests owned by a
single entity, Jackson National Separate Account III. Accordingly, the Fund is
taxed as part of the operations of JNL and is not taxed separately. Under
current tax law, interest, dividend income and capital gains of the Fund are not
currently taxable when left to accumulate within a variable annuity contract.
For a discussion of the tax status of the variable annuity policy, please refer
to the prospectus for Jackson National Separate Account III.

INTERNAL REVENUE SERVICE DIVERSIFICATION REQUIREMENTS

The Series intend to comply with the diversification requirements currently
imposed by the Internal Revenue Service on separate accounts of insurance
companies as a condition of maintaining the tax deferred status of the variable
annuity policies issued by Jackson National Separate Account III. The
Sub-Advisory Agreement requires the Series to be operated in compliance with
these diversification requirements. First Trust, as sub-adviser, reserves the
right to depart from the investment strategy of The Dow Target 10 Series in
order to meet these diversification requirements. See the SAI for more specific
information.

<PAGE>

HYPOTHETICAL PERFORMANCE DATA FOR THE TARGET STRATEGY

As of the date of this Prospectus, The Dow Target 10 Series has notbeen in
operation for a full fiscal year. However, certain aspects of the investment
strategy for The Dow Target 10 Series can be demonstrated using historical data.
The following table illustrates the hypothetical performance of the investment
strategy used by The Dow Target 10 Series and the actual performance of the
DJIA. The table also shows how performance varies from year to year.

The information for the Target Strategy assumes that the Strategy was fully
invested as of the beginning of each year and that each Stock Selection Date was
the first of the year. In addition, the performance information does not take
into consideration any sales charges, commissions, insurance fees or charges
imposed on the sale of the variable annuity policies, expenses or taxes. Any of
such charges will lower the returns shown.

The returns shown below for the Target Strategy does not represent the results
of actual trading using client assets but were achieved by means of the
retroactive application of a strategy that was designed with the benefit of
hindsight. These returns should not be considered indicative of the skill of the
sub-adviser. The returns may not reflect the impact that any material market or
economic factors might have had if the Strategy had been used during the periods
shown to actually manage client assets. During a portion of the period shown in
the table below, the sub-adviser acted as the portfolio supervisor of certain
unit investment trusts which employed strategies similar to the hypothetical
strategy shown below.

The returns shown below for the Target Strategy are not a guarantee of future
performance and should not be used to predict the expected returns on the Target
Strategy. In fact, the hypothetical Target Strategy underperformed its
respective index in certain years.

HYPOTHETICAL COMPARISON OF TOTAL RETURN

Year Target 10 DJIA
Strategy

1980 27.90% 21.90%
1981 7.46% -3.61%
1982 27.12% 26.85%
1983 39.07% 25.82%
1984 6.22% 1.29%
1985 29.54% 33.28%
1986 35.63% 27.00%
1987 5.59% 5.66%
1988 24.75% 16.03%
1989 26.97% 32.09%
1990 -7.82% -0.73%
1991 34.20% 24.19%
1992 7.69% 7.39%
1993 27.08% 16.87%
1994 4.21% 5.03%
1995 36.85% 36.67%
1996 28.35% 28.71%
1997 21.68% 24.82%
1998 10.59% 18.03%
1999 5.06% 27.06%

(1) The Target 10 Strategy for any given period was selected by applying the
respective strategy as of the close of the prior period.

(2) The total return shown does not take into consideration any sales charges,
commissions, expenses or taxes. Total return assumes that all dividends are
reinvested semi-annually, and all returns are stated in terms of the United
States dollar. Based on the year-by-year returns contained in the table, over
the 20 full years listed above, the Target 10 Strategy achieved an average
annual total return of 19.13%. In addition, over this period, the Strategy
achieved a greater average annual total return than that of the DJIA, which was
18.10%. Although the Strategy seeks to achieve a better performance than the
DJIA as a whole, there can be no assurance that the Strategy will achieve a
better performance.

<PAGE>

FINANCIAL HIGHLIGHTS

The following table provides selected per interest data for one interest of the
Series. The information does not reflect any charges imposed by an Account
investing in interests of the Series. You should refer to the appropriate
Account prospectus for additional information regarding such charges.

The information for the period shown below has been audited by
PricewaterhouseCoopers LLP, independent accountants, and should be read in
conjunction with the financial statements and notes thereto, together with the
report of PricewaterhouseCoopers LLP thereon, in the Annual Report.

JNL/FIRST
TRUST THE DOW
TARGET 10
SERIES
---------------
PERIOD FROM
AUGUST 16,
1999* TO
DECEMBER 31,
1999
---------------

SELECTED PER INTEREST DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
---------------

INCOME (LOSS) FROM OPERATIONS:
Net investment income (loss) 0.24
Net realized and unrealized gains (loss)
on investments (1.31)
---------------
Total income (loss) from operations (1.07)
---------------

NET ASSET VALUE, END OF PERIOD $ 8.93
===============

TOTAL RETURN (A) (10.70)%

RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 375
Ratio of expenses to average net
assets (b) 0.85%
Ratio of net investment income to
average net assets (b) 2.58%
Portfolio turnover 114.08%

<PAGE>

PROSPECTUS

May 1, 2000

JNL(R) VARIABLE FUND LLC

You can find more information about the Trust in:

o The Fund's ANNUAL AND SEMI-ANNUAL REPORTS to shareholders, which
show the Series' actual investments and include financial
statements as of the close of the particular annual or semi-annual
period. The Annual Report also discusses the market conditions and
investment strategies that significantly affected each Series'
performance during the year covered by the report.

File No.: 811-09369