JNL VARIABLE FUND V LLC
SEMI-ANNUAL REPORT
JUNE 30, 2000
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JNL/FIRST TRUST THE DOW TARGET 10 SERIES
FINANCIAL STATEMENTS (UNAUDITED)
(in thousands, except net asset value per share)
Statement of Assets and Liabilities
June 30, 2000
ASSETS
Investments (cost $3,022) .................. $ 2,708
Receivables:
Dividends and interest ................... 9
Fund shares sold ........................ 1
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TOTAL ASSETS ............................... 2,718
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LIABILITIES
Payables:
Advisory fees ............................ 2
Fund shares redeemed .................... 2
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TOTAL LIABILITIES .......................... 4
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NET ASSETS ................................. $ 2,714
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NET ASSETS CONSIST OF:
Paid-in capital ............................ $ 3,001
Undistributed net investment income ........ 31
Accumulated net realized loss on
investments ................................ (4)
Net unrealized depreciation on investments . (314)
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$ 2,714
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SHARES OUTSTANDING (NO PAR VALUE),
UNLIMITED SHARES AUTHORIZED .............. 308
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NET ASSET VALUE PER SHARE .................. $ 8.82
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Statement of Operations
For the Period Ended June 30, 2000*
INVESTMENT INCOME
Dividends ................................ $ 31
Interest ................................. 7
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TOTAL INVESTMENT INCOME .................... 38
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EXPENSES
Advisory fees ............................ 6
Administrative fees ...................... 1
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TOTAL EXPENSES ............................. 7
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NET INVESTMENT INCOME ...................... 31
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REALIZED AND UNREALIZED LOSSES
Net realized loss on investments ......... (4)
Net change in unrealized depreciation
on investments ......................... (314)
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NET REALIZED AND UNREALIZED LOSS ........... (318)
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NET DECREASE IN NET ASSETS FROM OPERATIONS . $ (287)
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* For the period beginning January 2, 2000 (commencement of operations).
See notes to the financial statements.
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JNL/FIRST TRUST THE DOW TARGET 10 SERIES
Statement of Changes in Net Assets (Unaudited)
(in thousands)
PERIOD FROM
JANUARY 2,
2000* TO
JUNE 30,
2000
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OPERATIONS
Net investment income ................................. $ 31
Net realized loss on investments ..................... (4)
Net change in unrealized depreciation on investments . (314)
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NET DECREASE IN NET ASSETS FROM OPERATIONS .............. (287)
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SHARE TRANSACTIONS(1)
Proceeds from the sale of shares ...................... 3,137
Cost of shares redeemed ............................... (136)
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NET INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS ...... 3,001
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NET INCREASE IN NET ASSETS .............................. 2,714
NET ASSETS BEGINNING OF PERIOD .......................... -
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NET ASSETS END OF PERIOD ................................ $ 2,714
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UNDISTRIBUTED NET INVESTMENT INCOME ..................... $ 31
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(1)SHARE TRANSACTIONS:
Shares sold ........................................... 322
Shares redeemed ....................................... (14)
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Net increase .......................................... 308
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PURCHASES AND SALES OF INVESTMENT SECURITIES
(EXCLUDING SHORT-TERM SECURITIES):
Purchases of securities $ 3,095
Proceeds from sales of securities 170
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* Commencement of operations.
See notes to the financial statements.
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JNL/FIRST TRUST THE DOW TARGET 10 SERIES
Financial Highlights (Unaudited)
PERIOD FROM
JANUARY 2,
2000* TO
JUNE 30,
2000
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SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
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INCOME (LOSS) FROM OPERATIONS:
Net investment income 0.10
Net realized and unrealized losses on investments (1.28)
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Total loss from operations (1.18)
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NET ASSET VALUE, END OF PERIOD $ 8.82
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TOTAL RETURN (A) (11.80)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 2,714
Ratio of expenses to average net assets (b) 0.85%
Ratio of net investment income to average
net assets (b) 3.48%
Portfolio turnover 10.69%
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* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period
and a complete redemption of the investment at the net asset value at
the end of the period. Total Return is not annualized for periods less
than one year.
(b) Annualized for periods less than one year.
See notes to the financial statements.
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JNL/FIRST TRUST THE DOW TARGET 10 SERIES
Schedule of Investments (Unaudited)
June 30, 2000
SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
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COMMON STOCKS - 96.3%
AUTO MANUFACTURERS - 11.4%
General Motors Corp. 5,313 $ 308
AUTO PARTS & EQUIPMENT - 4.4%
Goodyear Tire & Rubber Co. 5,923 118
BANKS - 10.2%
J.P. Morgan & Co. 2,514 277
CHEMICALS - 8.1%
E.I. du Pont de Nemours & Co. 5,013 219
MACHINERY - 7.0%
Caterpillar Inc. 5,578 189
MANUFACTURING - 22.7%
Eastman Kodak Co. 4,907 292
Minnesota Mining & Manufacturing Co. 3,915 323
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615
OIL & GAS PRODUCERS - 24.2%
Chevron Corp. 3,627 308
Exxon Mobil Corp. 4,430 348
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656
TOBACCO - 8.3%
Philip Morris Cos. Inc. 8,459 225
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Total Common Stocks
(cost $2,921) 2,607
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SHARES OR MARKET
PRINCIPAL VALUE
AMOUNT (000'S)
---------------------------------------------------------------
SHORT TERM INVESTMENT - 3.7%
MONEY MARKET FUND - 3.7%
Dreyfus Cash Management Plus,
6.51% (a) 101,257 $ 101
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Total Short Term Investment
(cost $101) 101
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TOTAL INVESTMENTS - 100%
(cost $3,022) $ 2,708
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(a) Dividend yield changes daily to reflect current market conditions. Rate
is the quoted yield as of June 30, 2000.
See notes to the financial statements.
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NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
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NOTE 1. ORGANIZATION
JNL Variable Fund V LLC (the "Fund") is a limited liability company
organized under the laws of Delaware, by a Formation and Operating Agreement
dated February 11, 1999. The Fund is registered with the Securities and Exchange
Commission as a non-diversified fund under the Investment Company Act of 1940
(the "1940 Act"). The Fund consists of the JNL/First Trust The Dow Target 10
Series, which is subadvised by First Trust Advisors L.P. ("First Trust"). The
shares of the Fund are sold to a life insurance company separate account to fund
the benefits of variable annuity policies.
Jackson National Financial Services, LLC ("JNFS"), a wholly-owned
subsidiary of Jackson National Life Insurance Company ("Jackson National"),
serves as investment adviser ("Adviser") for this Series.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Series in the preparation of its financial statements.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates.
SECURITY VALUATION -- Stocks listed on a national or foreign stock exchange
are valued at the final quoted sale price, or final bid price in absence of a
sale. Stocks not listed on a national or foreign stock exchange are valued at
the closing bid price on the over-the-counter market.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
recorded on the trade date. Dividend income, net of applicable withholding
taxes, is recorded on the ex-dividend date. Interest income, including
level-yield amortization of discounts and premiums, is accrued daily. Realized
gains and losses are determined on the specific identification basis.
REPURCHASE AGREEMENTS -- The Series may invest in repurchase agreements. A
repurchase agreement involves the purchase of a security by the Series and a
simultaneous agreement (generally by a bank or broker-dealer) to repurchase that
security back from the Series at a specified price and date or upon demand.
Securities pledged as collateral for repurchase agreements are held by the
Series custodian bank until the maturity of the repurchase agreement. Procedures
for all repurchase agreements have been designed to assure that the daily market
value of the collateral is in excess of the repurchase agreement in the event of
default.
DISTRIBUTIONS TO SHAREHOLDERS -- No distributions of net investment income
or realized capital gains are required.
FEDERAL INCOME TAXES -- The JNL Variable Fund V LLC is a limited liability
company with all of its interests owned by a single interest, Jackson National
Separate Account-V. Accordingly, the Fund is not considered a separate entity
for income tax purposes, and therefore is taxed as part of the operations of
Jackson National and is not taxed separately. Under current tax law, interest
and dividend income and capital gains of the Fund are not currently taxable when
left to accumulate within a variable annuity contract.
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NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
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NOTE 3. INVESTMENT MANAGEMENT FEES AND TRANSACTIONS WITH AFFILIATES
The Series has an investment advisory agreement with JNFS whereby JNFS
provides investment management and transfer agency services. The Series pays
JNFS a fee, computed daily and payable monthly, based on a specified percentage
of the average daily net assets of the Series as follows:
ASSETS FEES
$0 to $500 million .75%
$500 million to $1 billion .70%
Over $1 billion .65%
As compensation for their services, the subadviser, First Trust, receives a
fee from JNFS, calculated on the basis of the average daily net assets of the
Series as follows:
ASSETS FEES
$0 to $500 million .35%
$500 million to $1 billion .30%
Over $1 billion .25%
ADMINISTRATIVE FEE -- In addition to the investment advisory fee, the
Series pays to JNFS an Administrative Fee of .10% of the average daily net
assets. In return for the fee, JNFS provides or procures all necessary
administrative functions and services for the operations of the Series. In
accordance with the agreement, JNFS is responsible for the payment of expenses
related to legal, audit, fund accounting, custody, printing and mailing, trustee
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.
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