As filed with the Securities and Exchange Commission on December 27, 2000.
1933 Act Registration No. 333-43300
1940 Act Registration No. 811-10041
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. 2 [X]
-----
Post-Effective Amendment No. [ ]
-----
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 2
-----
JNL INVESTORS SERIES TRUST
--------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
1 Corporate Way, Lansing, MI 48951
--------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (517) 381-5500
--------------------------------------------------------------------------------
Patrick W. Garcy, Esq. with a copy to:
JNL Investors Series Trust
Asst. Vice President & Counsel Blazzard, Grodd & Hasenauer P.C.
1 Corporate Way P.O. Box 5108
Lansing, Michigan 48951 Westport, Connecticut 06881
(Name and Address of Agent for Service)
Approximate date of proposed public offering: (Upon the effective date of this
Registration Statement)
Title of Securities Being Registered: shares
The Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
<PAGE>
JNL INVESTORS SERIES TRUST
REFERENCE TO ITEMS REQUIRED BY FORM N-1A
Caption in Prospectus or
Statement of Additional
Information relating to
N-1A Item each Item
--------- -------------------------------
Part A. Information Required in a Prospectus Prospectus
------- ------------------------------------ ----------
1. Front and Back Cover Pages Front and Back Cover Pages
2. Risk/Return Summary: Investments, About the JNL Money Market Fund
Risks, and Performance
3. Risk/Return Summary: Fee Table Not Applicable
4. Investment Objectives, Principal About JNL Money Market Fund
Investment Strategies, and Related Risks
5. Management's Discussion of Fund Not Applicable
Performance
6. Management, Organization and Capital Management of the Trust;
Structure About the JNL Money Market Fund
7. Shareholder Information Investment of Trust Shares;
Share Redemption; Tax Status
8. Distribution Arrangements Plan of Distribution (12-b-1;
Distribution Services
9. Financial Highlights Information Financial Highlights
Information Required in a Statement of Statement of
Part B. Additional Information Additional Information
------- ---------------------- ----------------------
10. Cover Page and Table Of Contents Cover Page and Table of
Contents
11. Fund History General Information and History
12. Descritpion of the Fund and Its Common Types of Investments and
Investments and Risks Management Practices;
Additional Risk Considerations;
Investment Restrictions
Applicable to All Series
13. Management of the Fund Management of the Trust
14. Control Persons and Principal Holders Management of the Trust
of Securities
15. Investment Advisory and Other Services Investment Advisory and Other
Services
16. Brokerage Allocation and Other Practices Investment Advisory and Other
Services
17. Capital Stock and Other Securities Purchases, Redemptions and
Pricing of Shares; Additional
Information
18. Purchase, Redemption and Pricing of Purchases, Redemptions and
Shares Pricing of Shares
19. Taxation of the Fund Tax Status
20. Underwriters Distribution Services
21. Calculation of Performance Data Performance
22. Financial Statements Financial Statements
Part C.
-------
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C of this Registration Statement.
<PAGE>
JNL INVESTORS SERIES TRUST
<PAGE>
PROSPECTUS
_________, 2000
JNL MONEY MARKET FUND
1 Corporate Way o Lansing, Michigan 48951
This Prospectus provides you with the basic information you should know before
investing in the JNL Investors Series Trust (Trust).
The Trust currently offers shares in the following Fund:
JNL Money Market Fund
The Securities and Exchange Commission has not approved or disapproved the
Trust'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 Trust and the Fund, see the Trust's
Statement of Additional Information (SAI), which is incorporated by reference
into this prospectus.
---------------
<PAGE>
TABLE OF CONTENTS
I. About JNL Money Market Fund
INCLUDES A DESCRIPTION OF THE FUND, ITS INVESTMENT STRATEGIES AND PRINCIPAL
RISKS; EXPENSES; AND MANAGEMENT OF THE FUND.
II. Management of the Trust
MANAGEMENT OF THE FUND; FUND EXPENSES; SUB-ADVISORY ARRANGEMENT; HOW SHARES ARE
PRICED; SHARE REDEMPTION; AND TAX STATUS.
III. Financial Highlights
THE FINANCIAL HIGHLIGHTS TABLES WILL HELP YOU UNDERSTAND A FUND'S FINANCIAL
PERFORMANCE FOR THE PAST FIVE YEARS, OR FOR THE SHORTER LIFE OF THE FUND.
<PAGE>
ABOUT JNL MONEY MARKET FUND
JNL Money Market Fund
Investment Objective. The investment objective of the JNL Money Market Fund (the
"Fund") is to achieve as high a level of current income as is consistent with
the preservation of capital and maintenance of liquidity by investing in high
quality, short-term money market instruments.
Principal Investment Strategies. The Fund invests in the following types of high
quality, U.S. dollar-denominated money market instruments that mature in 397
days or less.
o Obligations issued or guaranteed as to principal and interest by
the U.S. Government, its agencies and instrumentalities;
o Obligations, such as time deposits, certificates of deposit and
bankers acceptances, issued by U.S. banks and savings banks that
are members of the Federal Deposit Insurance Corporation,
including their foreign branches and foreign subsidiaries, and
issued by domestic and foreign branches of foreign banks;
o Corporate obligations, including commercial paper, of domestic
and foreign issuers;
o Obligations issued or guaranteed by one or more foreign
governments or any of their political subdivisions, agencies or
instrumentalities, including obligations of supranational
entities; and
o Repurchase agreements on obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities.
The sub-adviser manages the Fund to meet the requirements of Rule 2a-7 under the
Investment Company Act of 1940, as amended, including those as to quality,
diversification and maturity. The Fund may invest more than 25% of its assets in
the U.S. banking industry.
Principal Risks of Investing in the Fund. An investment in the Fund is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, you could lose money by investing in the Fund. A
variety of factors may influence its investment performance, such as:
o Credit Risk and Market risk. Fixed income securities in general
are subject to credit risk and market risk. Credit risk is the
actual or perceived risk that the issuer of the bond will not pay
the interest and principal payments when due. The value of a debt
obligation typically declines if the issuer's credit quality
deteriorates. Market risk, also known as interest rate risk, is
the risk that interest rates will rise and the value of debt
obligations, including those held by the Fund, will fall. A
broad-based market drop may also cause a debt obligations price
to fall.
o Risk of Investment in Banking Industry. Because the Fund may
invest more than 25% of total assets in securities issued by U.S.
banks, its performance could be affected by factors influencing
the health of the banking industry. These may include economic
trends, industry competition and governmental actions, as well as
factors affecting the financial stability of borrowers. The bank
securities in which the Fund may invest typically are not insured
by the federal government. Securities that do not represent
deposits have lower priority in the bank's capital structure than
those that do.
In addition, the performance of the Fund depends on the sub-adviser's ability to
effectively implement the investment strategies of the Fund.
Performance. The Fund will commence investment operations on or about the date
of this prospectus. Therefore a bar chart and table have not been included for
this Fund.
Fees and Expenses of the Fund. This table describes the fees and expenses that
you may pay if you buy and hold shares of the Fund.
Shareholder Fees (fees paid directly from your investment) - None
--------------------------------------------------------------------------------
Annual Fund Operating Expenses (expenses that are deducted from Fund assets)
--------------------------------------------------------------------------------
Service Class Institutional Class
--------------------------------------------------------------------------------
Management Fees 0.25% 0.25%
--------------------------------------------------------------------------------
Distribution (12b-1) Fees 0.50% 0%
--------------------------------------------------------------------------------
Other
Expenses 0% 0%
--------------------------------------------------------------------------------
Administration Fees 0.25% 0.10%
--------------------------------------------------------------------------------
Total Annual Fund Operating Expenses 1.00% 0.35%
--------------------------------------------------------------------------------
Expense Example. This example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual funds. The
table below shows the expenses you would pay on a $10,000 investment, assuming
(1) 5% annual return and (2) redemption at the end of each time period. This
illustration is hypothetical and is not intended to be representative of past or
future performance of the Fund. The example also assumes that the Fund operating
expenses remain the same. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
--------------------------------------------------------------------------------
Expense Example Service Class Institutional Class
--------------------------------------------------------------------------------
1 Year $102 $36
--------------------------------------------------------------------------------
3 Years $318 $113
--------------------------------------------------------------------------------
Additional Information About the Other Investment Strategies, Other Investments
and Risks of the Fund. The SAI has more information about the Fund's authorized
investments and strategies, as well as the risks and restrictions that may apply
to them.
The Sub-Adviser and Portfolio Management. The sub-adviser to the JNL Money
Market Fund is PPM America, Inc. (PPM), which is located at 225 West Wacker
Drive, Chicago, Illinois 60606. PPM, an affiliate of the investment adviser to
the Fund, manages assets of Jackson National Life Insurance Company and of other
affiliated companies.
PPM supervises and manages the investment portfolio of the Fund and directs the
purchase and sale of the Fund's investment securities. PPM utilizes teams of
investment professionals acting together to manage the assets of the Fund. The
teams meet regularly to review portfolio holdings and to discuss purchase and
sale activity. The teams adjust holdings in the portfolio as they deem
appropriate in the pursuit of the Fund's investment objectives.
More About the Investment Objectives of the Fund
The investment objectives of the Fund are not fundamental and may be changed by
the Trustees without shareholder approval
MANAGEMENT OF THE TRUST
Investment Adviser
Under Massachusetts law and the Trust's Declaration of Trust and By-Laws, the
management of the business and affairs of the Trust is the responsibility of the
Trustees.
Jackson National Financial Services, LLC (JNFS), 1 Corporate Way, Lansing,
Michigan 48951, is the investment adviser to the Trust and provides the Trust
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.
Management Fee
As compensation for its services, JNFS receives a fee from the Fund of 0.25% of
the Fund's average daily net assets, accrued daily and payable monthly.
Sub-Advisory Arrangements
JNFS selects, contracts with and compensates the sub-adviser to manage the
investment and reinvestment of the assets of the Fund. JNFS monitors the
compliance of such sub-adviser with the investment objectives and related
policies of the Fund and reviews the performance of such sub-adviser and reports
periodically on such performance to the Trustees of the Trust.
Under the terms of the Sub-Advisory Agreement with JNFS, the sub-adviser manages
the investment and reinvestment of the assets of the Fund, subject to the
supervision of the Trustees of the Trust. The sub-adviser formulates a
continuous investment program for the Fund consistent with its investment
objectives and policies outlined in this Prospectus. The sub-adviser implements
such programs by purchases and sales of securities and regularly reports to JNFS
and the Trustees of the Trust with respect to the implementation of such
programs.
As compensation for its services, the sub-adviser receives a fee from JNFS,
stated as an annual percentage of the net assets of the Fund. The SAI contains a
schedule of the management fees JNFS currently is obligated to pay the
sub-adviser out of the advisory fee it receives from the Fund.
ADMINISTRATIVE FEE
In addition to the investment advisory fee, the Fund pays an Administrative Fee
of 0.25% of the average daily net assets for the Service Class and 0.10% for the
Institutional Class to JNFS. In return for the fee, JNFS provides or procures
all necessary administrative functions and services for the operation of the
Fund. In addition, JNFS, at its own expense, arranges for legal, audit, transfer
agency, fund accounting, custody, printing and mailing, trustees expenses and
all other services necessary for the operation of the Fund. The Fund is
responsible for trading expenses including brokerage commissions, interest and
taxes, and other non-operating expenses.
HOW SHARES ARE PRICED
The Fund's net asset value is expected to be constant at $1.00 per share,
although this is not guaranteed. The net asset value per share of the Fund 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 share is calculated by adding the value of all
securities and other assets of the Fund, deducting its liabilities, and dividing
by the number of shares outstanding. Income and expenses of the Fund are
allocated on a pro rata basis to each class of shares except for distribution
and administrative costs which are unique to each class of shares. The Fund is
valued at the amortized cost of its assets, no matter what the quoted price of
the Fund's securities may be.
All investments in the Fund are credited to the shareholder's account in the
form of full and fractional shares of the designated Fund (rounded to the
nearest 1/1000 of a share). The Trust does not issue share certificates.
PURCHASES
If you own or are considering purchasing fund shares through a bank,
broker-dealer, insurance company or other financial intermediary, your ability
to purchase, exchange or redeem shares will depend on your agreement with and
the policies of such financial intermediary. Shares purchased become entitled to
dividends declared on the date of purchase. You may reach one of our
Institutional Service Representatives by calling ___________ to request
information about our fund and services, to obtain a current prospectus or to
get answers to any questions about our fund that you are unable to obtain
through your plan administrator or financial intermediary.
SHARE REDEMPTION
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 by the Fund's transfer agent.
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.
FUND DISTRIBUTIONS AND TAX ISSUES
Investors who buy shares of the Fund should be aware of some important tax
issues. For example, the Fund distributes DIVIDENDS of ordinary income and any
realized net CAPITAL GAINS to shareholders. These distributions are subject to
taxes, unless you hold your shares in a 401(k) plan, an Individual Retirement
Account (IRA), or some other qualified tax-deferred plan or account.
The following briefly discusses some of the important tax issues you should be
aware of, but is not meant to be tax advice. For tax advice, please speak with
your tax advisor.
DISTRIBUTIONS
The Fund distributes DIVIDENDS of any net investment income to shareholders
every month. The dividends you receive from the Fund will be taxed as ORDINARY
INCOME, whether or not they are reinvested in the Fund.
Although the Fund is not likely to realize capital gains because of the types of
securities we purchase, any realized net CAPITAL GAINS will be paid to
shareholders (typically once a year). Capital gains are generated when the Fund
sells assets for a profit.
For your convenience, Fund distributions of dividends and capital gains are
automatically reinvested in the Fund. If you ask us to pay the distributions in
cash, we will send you a check instead of purchasing more shares of the Fund.
Either way, the distributions are subject to taxes, unless your shares are held
in a qualified tax-deferred plan or account.
TAX ISSUES
Form 1099
Every year, you will receive a Form 1099, which reports the amount of dividends
and capital gains we distributed to you during the prior year. If you own shares
of the Fund as part of a qualified tax-deferred plan or account, your taxes are
deferred, so you will not receive a Form 1099. However, you will receive a form
1099 when you take any distributions from your qualified tax-deferred plan or
account.
Fund distributions are generally taxable in the year they are received, except
where we declare certain dividends in December of a calendar year but actually
pay them in January of the following year. In such cases, the dividends are
treated as if they were paid on December 31 of the prior year.
WITHHOLDING TAXES
If federal law requires you to provide the Fund with your tax identification
number and certifications as to your tax status, and you fail to do so, or if
you are otherwise subject to back-up withholding, we will withhold and pay to
the U.S. Treasury 31% of your distributions. Dividends of net investment income
and short-term capital gains paid to a NONRESIDENT FOREIGN SHAREHOLDER generally
will be subject to a U.S. withholding tax of 30%. This rate may be lower,
depending on any tax treaty the U.S. may have with the shareholder's country.
PLAN OF DISTRIBUTION (12b-1 PLANS)
The Fund has adopted a Plan of Distribution pursuant to Rule 12b-1 under the
Investment Company Act of 1940 that allows the Fund to pay asset-based sales
charges or distribution and service fees in connection with the distribution of
its shares. The JNL Money Market Fund (Service Class) pays these fees in the
amount of 0.50% of average daily net assets. Because these fees are paid out of
a Fund's assets on an on-going basis, over time these fees will increase the
cost of your investment and may cost you more than paying other types of sales
fees.
FINANCIAL HIGHLIGHTS
The financial highlights information for the Fund is not included in the
prospectus because the Fund had not commenced investment operations as of the
effective date of this prospectus.
PROSPECTUS
_________, 2000
JNL INVESTORS SERIES TRUST
You can find more information about the Trust in:
o The Trust's Statement of Additional Information (SAI) dated______,
2000, which contains further information about the Trust and the
Fund, particularly its 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 Trust's Annual and Semi-Annual Reports to shareholders, which
show the Fund's 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 the Fund's
performance during the year covered by the report.
You can obtain a copy of the current SAI or the most recent Annual or
Semi-Annual Reports without charge, or make other inquiries, by calling
______________, or writing the JNL Investors Series Trust Service Center, 225 W.
Wacker Drive, Suite 1200, Chicago, IL 60606.
You can also obtain information about the Trust (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 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.
The Trust's SEC file number is: 811-10041
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
_____________, 2000
JNL Money Market Fund
================================================================================
This Statement of Additional Information (the "SAI") is not a
prospectus. It contains information in addition to and more detailed than set
forth in the Prospectus and should be read in conjunction with the JNL Money
Market Fund Prospectus dated _______, 2000 (the "Prospectus"). The financial
statements of the Fund will be incorporated by reference from the Fund's Annual
Report. The Prospectus and Annual Report may be obtained at no charge by calling
(800) 766-4683, or writing JNL Investors Series Trust,
---------------------------.
================================================================================
TABLE OF CONTENTS
General Information and History 2
Common Types of Investments and Management Practices 2
Investment Restrictions Applicable to the Fund 5
Trustees and Officers of the Trust 6
Performance 9
Investment Adviser and Other Services 10
Purchases, Redemptions and Pricing of Shares 12
Additional Information 13
Tax Status 15
Financial Statements 17
Appendix A - Ratings of Investments A-1
<PAGE>
GENERAL INFORMATION AND HISTORY
The JNL Investors Series Trust (the "Trust") is an open-end management
investment company organized as a business trust under the laws of the
Commonwealth of Massachusetts, by a Declaration of Trust dated July 28, 2000.
Currently the Trust offers shares in one fund: JNL Money Market Fund (Service
Class and Institutional Class).
COMMON TYPES OF INVESTMENTS AND MANAGEMENT PRACTICES
This section describes some of the types of securities the Fund may
hold in its portfolio and the various kinds of investment practices that may be
used in day-to-day portfolio management. The Fund may invest in the following
securities or engage in the following practices to the extent that such
securities and practices are consistent with the Fund's investment objective(s)
and policies described in the Prospectus and in this SAI.
Asset-Backed Securities. The Fund may invest in asset-backed securities, which
include mortgage-backed securities. Asset-backed securities represent interests
in pools of consumer loans and most are structured as pass-through securities.
The credit quality of most asset-backed securities depends primarily on the
credit quality of the assets underlying such securities, how well the entity
issuing the security is insulated from the credit risk of the originator or any
other affiliated entities, and the amount and quality of any credit support
provided to the securities. The rate of principal payment on asset-backed
securities generally depends on the rate of principal payments received on the
underlying assets, which in turn may be affected by a variety of economic and
other factors. As a result, the yield on any asset-backed security is difficult
to predict with precision and actual yield to maturity may be more or less than
the anticipated yield to maturity. A sub-adviser considers estimated prepayment
rates in calculating the average weighted maturities of the Fund. Unscheduled
prepayments are more likely to accelerate during periods of declining long-term
interest rates. In the event of a prepayment during a period of declining
interest rates, the Fund may be required to invest the unanticipated proceeds at
a lower interest rate. Prepayments during such periods will also limit the
Fund's ability to participate in as large a market gain as may be experienced
with a comparable security not subject to prepayment.
Asset-backed securities may be classified as pass-through certificates
or collateralized obligations. Pass-through certificates are asset-backed
securities that represent an undivided fractional ownership interest in an
underlying pool of assets. Pass-through certificates usually provide for
payments of principal and interest received to be passed through to their
holders, usually after deduction for certain costs and expenses incurred in
administering the pool. Because pass-through certificates represent an ownership
interest in the underlying assets, the holders thereof directly bear the risk of
any defaults by the obligors on the underlying assets not covered by any credit
support.
Asset-backed securities issued in the form of debt instruments, also
known as collateralized obligations, are generally issued as the debt of a
special purpose entity organized solely for the purpose of owning such assets
and issuing such debt. Such assets are most often trade, credit card or
automobile receivables. The assets collateralizing such asset-backed securities
are pledged to a trustee or custodian for the benefit of the holders thereof.
Such issuers generally hold no assets other than those underlying the
asset-backed securities and any credit support provided. As a result, although
payments on such asset-backed securities are obligations of the issuers, in the
event of defaults on the underlying assets not covered by any credit support,
the issuing entities are unlikely to have sufficient assets to satisfy their
obligations on the related asset-backed securities.
Bank Obligations. The Fund may invest in bank obligations, which include
certificates of deposit, bankers' acceptances, and other short-term debt
obligations. Certificates of deposit are short-term obligations of commercial
banks. A bankers' acceptance is a time draft drawn on a commercial bank by a
borrower, usually in connection with international commercial transactions.
Certificates of deposit may have fixed or variable rates. The Fund may invest in
U.S. banks, foreign branches of U.S. banks, U.S. branches of foreign banks, and
foreign branches of foreign banks.
Borrowing and Lending. The Fund may borrow money from banks for temporary or
emergency purposes in amounts up to 25% of its total assets. To secure
borrowings, a Fund may mortgage or pledge securities in amounts up to 15% of its
net assets.
Cash Position. The Fund may hold a certain portion of its assets in repurchase
agreements, but the Fund will primarily hold positions in money market
securities maturing in one year or less that are rated in one of the two highest
rating categories by a nationally recognized statistical rating organization.
Commercial Paper. The Fund may invest in commercial paper. Commercial paper are
short-term promissory notes issued by corporations primarily to finance
short-term credit needs. Certain notes may have floating or variable rates.
Diversification. The Fund is a diversified company, as such term is defined
under the Investment Company Act of 1940, as amended (the "1940 Act"). A Fund
that is a diversified company under the 1940 Act will have at least 75% of the
value of its total assets represented by:
o cash and cash items (including receivables),
o Government securities,
o securities of other investment companies, and
o other securities limited in respect to any one issuer to not more than
5% of the value of the Fund's total assets and to not more than 10% of
the outstanding voting securities of such issuer.
These percentage limitations are measured at the time that the Fund
acquires a security, and the Fund will not lose its diversification status if
the Fund's holdings exceed these percentages because of post-acquisition changes
in security prices.
Floating Rate Obligations. The Fund may purchase floating rate obligations,
including floating rate demand notes and bonds. The Fund may invest in floating
rate obligations whose interest rates are adjusted either at predesignated
periodic intervals or whenever there is a change in the market rate to which the
security's interest rate is tied. The Fund may also purchase floating rate
demand notes and bonds, which are obligations ordinarily having stated
maturities in excess of 397 days, but which permit the holder to demand payment
of principal at any time, or at specified intervals not exceeding 397 days, in
each case upon not more than 30 days' notice.
Illiquid Securities. The Fund may hold illiquid investments. Illiquid
investments are investments that cannot be sold or disposed of in the ordinary
course of business within seven days at approximately the price at which they
are valued. Illiquid investments generally include repurchase agreements not
terminable within seven days and securities for which market quotations are not
readily available.
U.S. Government Securities. U.S. Government securities are issued or guaranteed
as to principal and interest by U.S. Government agencies or instrumentalities.
These include securities issued by the Federal National Mortgage Association
(Fannie Mae), Government National Mortgage Association (Ginnie Mae), Federal
Home Loan Bank, Federal Land Banks, Farmers Home Administration, Banks for
Cooperatives, Federal Intermediate Credit Banks, Federal Financing Bank, Farm
Credit Banks, the Small Business Association, Student Loan Marketing
Association, and the Tennessee Valley Authority. Some of these securities, such
as those issued by Ginnie Mae, are supported by the full faith and credit of the
U.S. Treasury; others, such as those of Fannie Mae, are supported by the
discretionary authority of the U.S. Government to purchase the agency's
obligations; and still others, such as those of the Student Loan Marketing
Association, are supported only by the credit of the instrumentality. No
assurance can be given that the U.S. Government will provide financial support
to U.S. Government agencies or instrumentalities in the future, other than as
set forth above, since it is not obligated to do so by law.
U.S. Government Obligations. U.S. Government obligations include bills, notes,
bonds, and other debt securities issued by the U.S. Treasury. These are direct
obligations of the U.S. Government and differ mainly in the length of their
maturities.
General
The Fund will comply with Rule 2a-7 (the "Rule") under the Investment
Company Act (the "Act"), as amended from time to time, including the
diversification, quality and maturity limitations imposed by the Rule. To the
extent that the Fund's limitations are more permissive than Rule 2a-7, the Fund
will comply with the more restrictive provisions of the Rule.
Currently, pursuant to Rule 2a-7, the Fund may invest only in U.S.
dollar-denominated "Eligible Securities" (as that term is defined in the Rule)
that have been determined by the sub-adviser to present minimal credit risks
pursuant to procedures approved by the Trustees. Generally, an Eligible Security
is a security that (i) has a remaining maturity of 397 days or less and (ii) is
rated, or is issued by an issuer with short-term debt outstanding that is rated,
in one of the two highest rating categories by two nationally recognized
statistical rating organizations ("NRSRO") or, if only one NRSRO has issued a
rating, by that NRSRO (the "requisite NRSRO"). An unrated security may also be
an Eligible Security if the sub-adviser determines that it is of comparable
quality to a rated Eligible Security pursuant to the guidelines approved by the
Trustees. A description of the ratings of some NRSROs appears in the Appendix
attached hereto. Securities in which the Fund invests may be subject to
liquidity or credit enhancements. These securities are generally considered to
be Eligible Securities if the enhancement or the issuer of the enhancement has
received the appropriate rating from the requisite NRSROs.
Under Rule 2a-7 the Fund may not invest more than five percent of its
assets in the securities of any one issuer other than the United States
Government, its agencies and instrumentalities. A first tier security is an
Eligible Security that has received a short-term rating from the requisite
NRSROs in the highest short-term rating category for debt obligations, or is an
unrated security deemed to be of comparable quality. Government securities are
also considered to be first tier securities. In addition, the Fund may not
invest in a security that has received, or is deemed comparable in quality to a
security that has received the second highest rating by the requisite number of
NRSROs (a "second tier security") if immediately after the acquisition thereof
the Fund would have invested more than (i) the greater of one percent of its
total assets or one million dollars in securities issued by that issuer which
are second tier securities, or (ii) five percent of its total assets in second
tier securities.
It is the policy of the Fund to use its best efforts to maintain a
constant per share price equal to $1.00. The portfolio instruments of the Fund
are valued on the basis of amortized cost. This involves valuing an instrument
at its cost initially, and, thereafter, assuming a constant amortization to
maturity of any discount or premium, regardless of the impact of fluctuating
interest rates on the market value of the instrument. While this method provides
certainty in valuation, it may result in periods during which the value, as
determined by amortized cost, is higher or lower than the price the Fund would
receive if it sold the instrument.
The Fund must maintain a dollar-weighted average portfolio maturity of
90 days or less, purchase only instruments having remaining maturities of
thirteen months or less, and invest only in securities determined by the
Trustees to be of high quality with minimal credit risk. In accordance with the
Rule the Trustees have established procedures designed to stabilize, to the
extent reasonably practicable, the Fund price per share as computed for the
purpose of sales and redemptions at $1.00.
INVESTMENT RESTRICTIONS
Fundamental Policies. The Fund is subject to certain fundamental policies and
restrictions that may not be changed without shareholder approval. Shareholder
approval means approval by the lesser of (i) more than 50% of the outstanding
voting securities of the Fund, or (ii) 67% or more of the voting securities
present at a meeting if the holders of more than 50% of the outstanding voting
securities of the Fund are present or represented by proxy. Unless otherwise
indicated, all restrictions apply at the time of investment.
(1) The Fund is a "diversified company," as such term is defined under the
1940 Act.
(2) The Fund may not invest more than 25% of the value of its respective
assets in any particular industry provided that for the purposes of
this restriction there is no limitation with respect to investment in
securities issued or guaranteed by the United States Government, its
agencies or instrumentalities, certificates of deposit, bankers'
acceptances, interest bearing savings deposits and investments by the
Fund in the domestic banking industry.
(3) The Fund may not invest directly in real estate or interests in real
estate; however, the Fund may own debt securities issued by companies
engaged in those businesses.
(4) The Fund may not purchase or sell commodities.
(5) The Fund may not issue senior securities.
(6) The Fund may not act as an underwriter of securities issued by others,
except to the extent that the Fund may be deemed an underwriter in
connection with the disposition of portfolio securities of the Fund.
(7) The Fund may not invest more than 10% of the Fund's net assets in
illiquid securities. This limitation does not apply to securities
eligible for resale pursuant to Rule 144A under the Securities Act of
1933 or Commercial Paper issued in reliance upon the exemption from
registration contained in Section 4(2) of that Act, which have been
determined to be liquid in accordance with guidelines established by
the Board of Trustees.
(8) The Fund may borrow money for temporary or emergency purposes (not for
leveraging or investment) in an amount not exceeding 25% of the value
of its respective total assets (including the amount borrowed) less
liabilities (other than borrowings). If borrowings exceed 25% of the
value of the Fund's total assets by reason of a decline in net assets,
the Fund will reduce its borrowings within three business days to the
extent necessary to comply with the 25% limitation. This policy shall
not prohibit reverse repurchase agreements.
TRUSTEES AND OFFICERS OF THE TRUST
The officers of the Trust manage its day to day operations and are
responsible to the Trust's Board of Trustees. The Trustees set broad policies
for the Fund and choose the Trust's officers. The following is a list of the
Trustees and officers of the Trust and a statement of their present positions
and principal occupations during the past five years.
For purposes of this section, the term "Fund Complex" includes each of the
following investment companies: JNL Series Trust, JNL Investors Series Trust,
JNL Variable Fund LLC, JNL Variable Fund III LLC, JNL Variable Fund IV LLC, JNL
Variable Fund V LLC, JNLNY Variable Fund I LLC, and JNLNY Variable Fund II LLC.
Each of the Trustees is also a Trustee or Manager of one or more of the other
funds in the Fund Complex and each of the Trust's officers is also an officer of
one or more of the funds in the Fund Complex.
ANDREW B. HOPPING* (Age 41), 1 Corporate Way, Lansing, Michigan 48951
Trustee of the Trust and Member of the Board of Managers of each of the other
funds in the Fund Complex President and Chief Executive Officer of the Trust and
each of the other funds in the Fund Complex JNL Series Trust, Vice President
(8/96 to 8/97) JNL Series Trust, Treasurer (8/96 to 8/97) JNL Series Trust,
Chief Financial Officer (8/96 to 8/97) Jackson National Life Distributors, Inc.,
Treasurer (1/98 to present) Jackson National Financial Services, LLC, President
and Managing Board Member (3/98 to present) Jackson National Life Insurance
Company, Executive Vice President (7/98 to present) Jackson National Life
Insurance Company, Chief Financial Officer (12/97 to present) Jackson National
Life Insurance Company, Senior Vice President (6/94 to 7/98) National Planning
Corporation, Vice President (5/98 to 7/98) Jackson National Life Distributors,
Inc., Chief Financial Officer and Vice President (7/97 to present) National
Planning Corporation, Director (6/97 to present) Jackson National Financial
Services, Inc., Chief Executive Officer and President (7/97 to 5/98) Countrywide
Credit, Executive Vice President (3/92 to 6/94)
MICHAEL BOUCHARD** (Age 44), 344 Fairfax, Birmingham, MI 48009
Member of the Board of Managers of the Fund and some of the other funds in the
Fund Complex Sheriff, Oakland County, Michigan (1/99 to present) Senator; State
of Michigan (1991 to 1999)
DOMINIC D'ANNUNZIO** (Age 62), 100 Siena Way, Unit 1204, Naples, FL 34119 Member
of the Board of Managers of the Fund and some of the other funds in the Fund
Complex Acting Commissioner of Insurance for the State of Michigan, (8/97 to
5/98) Acting Commissioner of Insurance for the State of Michigan, (1/90 to 5/90)
Acting Manager of Michigan State Accident Fund (9/89 to 12/89) Deputy
Commissioner of the Office of Financial Analysis and Examinations (4/89 to 8/97)
Deputy Commissioner of the Office of Market Standards (1/87 to 4/89)
MICHELLE ENGLER** (Age 42), 2520 Oxford Drive, Lansing, MI 48911
Member of the Board of Managers of the Fund and some of the other funds in the
Fund Complex First Lady of the State of Michigan (1991 to present) Chair,
Michigan Community Service Commission (1991 to present)
ROBERT A. FRITTS* (Age 51) 1 Corporate Way, Lansing, Michigan 48951
Trustee of the Trust and Member of the Board of Managers of each of the other
funds in the Fund Complex Vice President, Treasurer and Chief Financial Officer
of the Trust and each of the other funds in the Fund Complex JNL Series Trust,
Assistant Treasurer (2/96 to 8/97) JNL Series Trust, Assistant Secretary (12/94
to 2/96) Jackson National Life Insurance Company, Vice President and Controller
(8/82 to present)
THOMAS J. MEYER (Age 53) 1 Corporate Way, Lansing, Michigan 48951
Vice President, Secretary and Counsel of the Trust and each of the other funds
in the Fund Complex Jackson National Life Insurance Company, Senior Vice
President (7/98 to present) Jackson National Life Insurance Company, Secretary
(9/94 to present) Jackson National Life Insurance Company, General Counsel (3/85
to present) Jackson National Life Insurance Company, Vice President (3/85 to
7/98)
MARK D. NERUD (Age 34) 225 West Wacker Drive, Suite 1200, Chicago, IL 60606
Vice President and Assistant Treasurer of the Trust and each of the other funds
in the Fund Complex Jackson National Financial Services, LLC, Chief Financial
Officer (3/98 to present) Jackson National Financial Services, LLC, Managing
Board Member (3/98 to present) National Planning Corporation, Vice President
(5/98 to present) Jackson National Life Distributors, Inc., Chief Operating
Officer (7/97 to present) Jackson National Financial Services, Inc., Director
(1/98 to 5/98) Jackson National Financial Services, Inc., Chief Operating
Officer (6/97 to 5/98) Jackson National Financial Services, Inc., Treasurer
(6/97 to 5/98) Jackson National Life Insurance Company, Vice President - Fund
Accounting & Administration (1/00 to present) Jackson National Life Insurance
Company, Assistant Vice President - Mutual Fund Operations (4/97 to 12/99)
Jackson National Life Insurance Company, Assistant Controller (10/96 to 4/97)
Jackson National Life Insurance Company, Senior Manager - Mutual Fund Operations
(4/96 to 10/96) Voyageur Asset Management Company, Manager - Mutual Fund
Accounting (5/93 to 4/96)
SUSAN S. RHEE (Age 28), 1 Corporate Way, Lansing, MI 48951
Assistant Secretary of the Trust and each of the other funds in the Fund Complex
Jackson National Financial Services, LLC, Secretary Jackson National Life
Insurance Company, Senior Attorney (1/00 to present)
Goldman, Sachs & Co., Associate (10/99 to 12/99)
Van Eck Associates Corporation, Staff Attorney (9/97 to 10/99)
-----------
*Trustees who are interested persons as defined in the Investment Company Act of
1940.
As of September 30, 2000, the officers and trustees of the Trust, as a
group, owned less than 1% of the then outstanding shares of the Trust.
The trustees who are "interested persons" and officers as designated
above receive no compensation from the Trust. Disinterested Trustees will be
paid $5,000 for each meeting of a fund in the Fund Complex that they attend. The
fees to the disinterested Trustees are paid by JNFS.
PERFORMANCE
The Fund's historical performance may be shown in the form of yield.
These performance measures are described below.
The Fund's yield is computed in accordance with a standardized method
prescribed by rules of the SEC. This yield is a measure of the net dividend and
interest income earned over a specific seven-day period expressed as a
percentage of the net asset value of the Fund. The yield is an annualized
figure, which means that it is assumed that the Fund generates the same level of
net income over a 52-week period. Under this method, the current yield quotation
is based on a seven-day period and is computed as follows. The first calculation
is net investment income per share; which is accrued interest on portfolio
securities, plus or minus amortized discount or premium, plus or minus realized
short term gains/losses, less accrued expenses. This number is then divided by
the price per share (expected to remain constant at $1.00) at the beginning of
the period (base period return). The result is then divided by 7 and multiplied
by 365 and the resulting yield figure is carried to the nearest one-hundredth of
one percent. Realized capital gains or losses and unrealized appreciation or
depreciation of investments are not included in the calculation.
The Fund's effective yield is determined by taking the base period
return (computed as described above) and calculating the effect of assumed
compounding. The formula for the effective yield is: (base period return +
1)365/7 - 1. Current yield information can be obtained by a recorded message by
telephoning toll free at ___________.
The Fund's performance quotations are based upon historical results and
are not necessarily representative of future performance. The Fund seeks to
maintain a $1.00 net asset value per share. Factors affecting the Fund's
performance include general market conditions, operating expenses and investment
management. Shares of a Fund are redeemable at the then current net asset value,
which may be more or less than original cost.
The performance of the Fund may be compared to the performance of other
mutual funds or mutual fund indices with similar objectives and policies as
reported by Lipper Inc. (Lipper), CDA Investment Technologies, Inc. (CDA) or
Donoghue's Money Fund Report. Lipper and CDA performance calculations are based
upon changes in net asset value with all dividends reinvested and do not include
the effect of any sales charges. The Fund's performance may also be compared to
that of the Merrill Lynch Treasury Bill Index (3 month). No adjustments are made
for taxes payable on dividends. Lipper and CDA are widely recognized independent
mutual fund reporting services. Lipper and CDA indices are weighted performance
averages of other mutual funds with similar investment objectives.
From time to time, the Fund also may quote information from
publications including, but not limited to, the following: Morningstar, Inc.,
The Wall Street Journal, Money Magazine, Forbes, Barron's, The New York Times,
USA Today, Institutional Investor and Registered Representative. Also, investors
may want to compare the historical returns of various investments, performance
indices of those investments or economic indicators, including but not limited
to stocks, bonds, certificates of deposit and other bank products, money market
funds and U.S. Treasury obligations. Certain of these alternative investments
may offer fixed rates of return and guaranteed principal, and may be insured.
Economic indicators may include, without limitation, indicators of market rate
trends and cost of funds, such as Federal Home Loan Bank Board 11th District
Cost of Funds Index (COFI).
INVESTMENT ADVISER AND OTHER SERVICES
Jackson National Financial Services, LLC ("JNFS"), 1 Corporate Way,
Lansing, Michigan 48951, is the investment adviser to the Trust. As investment
adviser, JNFS provides the Trust with professional investment supervision and
management. JNFS is a wholly owned subsidiary of Jackson National Life Insurance
Company, which is in turn wholly owned by Prudential plc, a life insurance
company in the United Kingdom.
JNFS acts as investment adviser to the Trust pursuant to an Investment
Advisory and Management Agreement. As compensation for its services, JNFS
receives a fee from the Fund of 0.25% of the Fund's average daily net assets,
accrued daily and payable monthly.
The Investment Advisory and Management Agreement continues in effect
for the Fund from year to year after its initial two-year term so long as its
continuation is approved at least annually by (i) a majority of the Trustees who
are not parties to such agreement or interested persons of any such party except
in their capacity as Trustees of the Trust, and (ii) the shareholders of the
Fund or the Board of Trustees. It may be terminated at any time upon 60 days
notice by either party, or by a majority vote of the outstanding shares of the
Fund with respect to that Fund, and will terminate automatically upon
assignment. Additional Funds may be subject to a different agreement. The
Investment Advisory and Management Agreement provides that JNFS shall not be
liable for any error of judgment, or for any loss suffered by the Fund in
connection with the matters to which the agreement relates, except a loss
resulting from willful misfeasance, bad faith or gross negligence on the part of
JNFS in the performance of its obligations and duties, or by reason of its
reckless disregard of its obligations and duties under the agreement. As
compensation for its services, the Fund pays JNFS a fee as described in the
Prospectus.
In addition to providing the services described above, JNFS selects,
contracts with and compensates the sub-adviser to manage the investment and
reinvestment of the assets of the Fund. JNFS monitors the compliance of the
sub-adviser with the investment objectives and related policies of the Fund and
reviews the performance of the sub-adviser and reports periodically on such
performance to the Trustees of the Trust.
PPM America, Inc. (PPM), which is located at 225 West Wacker Drive,
Suite 1200, Chicago, Illinois 60606, serves as sub-adviser to the JNL Money
Market Fund. PPM, an affiliate of JNFS, is an indirect wholly owned subsidiary
of Prudential plc.
As compensation for its services, the sub-adviser receives a fee from
JNFS. The fee is calculated based on average net assets of the Fund. The
management fee JNFS is currently obligated to pay the sub-adviser out of the
advisory fee it receives from the Fund is as follows:
JNL Money Market Fund $0 to $200 million 0.10%
Over $200 million 0.07%
The sub-advisory fee payable by JNFS to the sub-adviser may be reduced
as agreed to by the parties from time to time.
Subject to the supervision of JNFS and the Trustees pursuant to an
investment sub-advisory agreement entered into between JNFS and the sub-adviser,
the sub-adviser invests and reinvests the Fund's assets consistent with the
Fund's investment objectives and policies. The investment sub-advisory agreement
continues in effect for the Fund from year to year after its initial two-year
term so long as its continuation is approved at least annually by a majority of
the Trustees who are not parties to such agreement or interested persons of any
such party except in their capacity as Trustees of the Fund and by the
shareholders of the Fund or the Board of Trustees. It may be terminated at any
time upon 60 days notice by either party, or by a majority vote of the
outstanding shares of a Fund with respect to that Fund, and will terminate
automatically upon assignment or upon the termination of the investment
management agreement between JNFS and the Fund. Additional Funds may be subject
to different agreements.
Administrative Fee. The Service Class of the Fund pays to JNFS an Administrative
Fee of 0.25% of the average daily net assets and the Institutional Class pays an
Administrative Fee of 0.10% of the average daily net assets. In return for the
fee, JNFS provides or procures all necessary administrative functions and
services for the operation of the Fund. In addition, JNFS, at its own expense,
arranges for legal, audit, fund accounting, transfer agency, custody,
registration fees (Blue Sky), printing and mailing, and all other services
necessary for the operation of the Fund. The Fund is responsible for trading
expenses including brokerage commissions, interest and taxes, and other
non-operating expenses.
Distribution Services. Shares of the Fund are offered on a continuous basis and
are distributed through Jackson National Life Distributors, Inc., 401 Wilshire
Boulevard, Suite 1200, Santa Monica, CA 90401 (the "Distributor"), a
wholly-owned subsidiary of Jackson National Life Insurance Company. The Trustees
of the Trust have approved a Distribution Agreement (the "Agreement") appointing
the Distributor as distributor of the shares of the Fund. The Agreement for the
Fund was approved by the Trustees on August 10, 2000.
Rule 12b-1, adopted by the Commission under the 1940 Act, permits an investment
company to directly or indirectly pay expenses associated with the distribution
of its shares in accordance with a duly adopted and approved plan. The Agreement
with the Distributor includes a 12b-1 Plan (the "Plan"). Pursuant to the Plan,
the Service Class of the Fund pays to the Distributor a 12b-1 fee of 0.50% of
the Fund's average daily net assets attributable to the Service Class.
Payments under the Agreement are used in their entirety for (i) payments to
broker-dealers and other financial intermediaries, including National Planning
Corporation, SII Investments Inc. and other affiliates of the Adviser, for
distribution assistance and (ii) otherwise promoting the sale of shares of the
Fund such as by paying for the preparation, printing and distribution of
prospectuses and other promotional materials sent to existing and prospective
shareholders. In approving this Agreement, the Trustees determined that there
would be a benefit to the Fund and its shareholders.
Custodian and Transfer Agent. The custodian has custody of all securities and
cash of the Fund maintained in the United States and attends to the collection
of principal and income and payment for and collection of proceeds of securities
bought and sold by the Trust. Boston Safe Deposit and Trust Company, One Boston
Place, Boston, Massachusetts 02108, acts as custodian for the Fund.
PFPC Inc., 400 Bellevue Parkway, Wilmington, DE 19809 is the transfer agent and
dividend-paying agent for the Fund.
Independent Accountants. The Fund's independent accountants,
PricewaterhouseCoopers LLP, 203 North LaSalle, Chicago, Illinois 60601, audit
and report on the Fund's annual financial statements, and perform other
professional accounting, auditing and advisory services when engaged to do so by
the Fund.
Code of Ethics. To mitigate the possibility that the Fund will be adversely
affected by personal trading of employees, the Trust, JNFS and the sub-adviser
have adopted Codes of Ethics under Rule 17j-1 of the 1940 Act. These Codes
contain policies restricting securities trading in personal accounts of the
portfolio managers and others who normally come into possession of information
on portfolio transactions. These Codes comply, in all material respects, with
the recommendations of the Investment Company Institute. Employees subject to
the Code of Ethics may invest in securities for their own investment accounts,
including securities that may be purchased or held by the Fund.
PURCHASES, REDEMPTIONS AND PRICING OF SHARES
Shares of the Fund may be purchased at their respective net asset
values which is expected to be constant at $1.00 per share, although this price
is not guaranteed. All investments in the Fund are credited to the shareholder's
account in the form of full and fractional shares of the designated Fund
(rounded to the nearest 1/1000 of a share). The Trust does not issue share
certificates.
The securities of the Fund are valued at amortized cost, which
approximates market value, in accordance with Rule 2a-7 under the 1940 Act. The
net income of the JNL Money Market Fund is determined once each day, on which
the NYSE is open, at the close of the regular trading session of the NYSE
(normally 4:00 p.m., Eastern time, Monday through Friday). All the net income of
the Fund, so determined, is declared as a dividend to shareholders of record at
the time of such determination. Shares purchased become entitled to dividends
declared on the date of purchase. Dividends are distributed in the form of
additional shares of the Fund on the last business day of each month at the rate
of one share (and fraction thereof) of the Fund for each one dollar (and
fraction thereof) of dividend income.
For this purpose, the net income of the Fund (from the time of the
immediately preceding determination thereof) shall consist of: (a) all interest
income accrued on the portfolio assets of the Fund, (b) less all actual and
accrued expenses, and (c) plus or minus net realized gains and losses on the
assets of the Fund determined in accordance with generally accepted accounting
principles. Income and expenses of the Fund are allocated on a pro rata basis to
each class of shares except for distribution and administrative costs which are
unique to each class of shares. Interest income includes discount earned
(including both original issue and market discount) on discount paper accrued
ratably to the date of maturity. Securities are valued at amortized cost which
approximates market, which the Trustees have determined in good faith
constitutes fair value for the purposes of complying with the 1940 Act.
Because the net income of the JNL Money Market Fund is declared as a
dividend each time the net income is determined, the net asset value per share
(i.e., the value of the net assets of the Fund divided by the number of shares
outstanding) remains at one dollar per share immediately after each such
determination and dividend declaration. Any increase in the value of a
shareholder's investment in the Fund, representing the reinvestment of dividend
income, is reflected by an increase in the number of shares of the Fund in its
account. Pursuant to its objective of maintaining a fixed one dollar share
price, the Fund will not purchase securities with a remaining maturity of more
than 397 days and will maintain a dollar-weighted average portfolio maturity of
90 days or less.
The Trust may suspend the right of redemption only under the following
unusual circumstances: (a) when the NYSE is closed (other than weekends and
holidays) or trading is restricted; (b) when an emergency exists, making
disposal of portfolio securities or the valuation of net assets not reasonably
practicable; or (c) during any period when the Securities and Exchange
Commission has by order permitted a suspension of redemption for the protection
of shareholders.
ADDITIONAL INFORMATION
Description of Shares. The Declaration of Trust permits the Trustees to issue an
unlimited number of full and fractional shares of beneficial interest of the
Fund and to divide or combine such shares into a greater or lesser number of
shares without thereby changing the proportionate beneficial interests in the
Trust. Each share of the Fund represents an equal proportionate interest in that
Fund with each other share. The Trust reserves the right to create and issue any
number of Fund shares. In that case, the shares of the Fund would participate
equally in the earnings, dividends, and assets of the Fund. Upon liquidation of
the Fund, shareholders are entitled to share pro rata in the net assets of the
Fund available for distribution to shareholders. The Trustees may also create
classes of shares of a Fund.
Voting Rights. On any matter submitted to the shareholders, shareholders are
entitled to one vote for each share held. Shareholders will only vote on issues
impacting their particular class. All shares of the Trust have equal voting
rights and may be voted in the election of Trustees and on other matters
submitted to the vote of the shareholders. Shareholders' meetings ordinarily
will not be held unless required by the 1940 Act. As permitted by Massachusetts
law, there normally will be no shareholders' meetings for the purpose of
electing Trustees unless and until such time as fewer than a majority of the
Trustees holding office have been elected by shareholders. At that time, the
Trustees then in office will call a shareholders' meeting for the election of
Trustees. The Trustees must call a meeting of shareholders for the purpose of
voting upon the removal of any Trustee when requested to do so by the record
holders of 10% of the outstanding shares of the Trust. A Trustee may be removed
after the holders of record of not less than two-thirds of the outstanding
shares have declared that the Trustee be removed either by declaration in
writing or by votes cast in person or by proxy. Except as set forth above, the
Trustees shall continue to hold office and may appoint successor Trustees,
provided that immediately after the appointment of any successor Trustee, at
least two-thirds of the Trustees have been elected by the shareholders. Shares
do not have cumulative voting rights. Thus, holders of a majority of the shares
voting for the election of Trustees can elect all the Trustees.
Shareholders of a Massachusetts business trust may, under certain
circumstances, be held personally liable as partners for the obligations of the
Trust. The risk of a shareholder incurring any financial loss on account of
shareholder liability is limited to circumstances in which the Trust itself
would be unable to meet its obligations. The Declaration of Trust contains an
express disclaimer of shareholder liability for acts or obligations of the Trust
and provides that notice of the disclaimer must be given in each agreement,
obligation or instrument entered into or executed by the Trust or Trustees. The
Declaration of Trust provides for indemnification of any shareholder held
personally liable for the obligations of the Trust.
No amendment may be made to the Declaration of Trust without the
affirmative vote of a majority of the outstanding shares of the Trust. The
Trustees may, however, amend the Declaration of Trust without the vote or
consent of shareholders to, among other things,:
o designate Funds or classes of Funds of the Trust; or
o change the name of the Trust or of any Fund or class; or
o supply any omission, cure, correct, or supplement any ambiguous, defective,
or inconsistent provision to conform the Declaration of Trust to the
requirements of applicable federal or state regulations if they deem it
necessary.
If not terminated by the vote of a majority of its outstanding shares or by the
Trustees by written notice to the shareholders, the Trust will continue
indefinitely. Shares have no pre-emptive or conversion rights. Shares are fully
paid and non-assessable.
Shareholder Inquiries. All inquiries regarding the Fund should be directed to
the Fund at the address shown on the back cover page of the Prospectus.
TAXES, DIVIDENDS AND DISTRIBUTIONS
The Fund intends to qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986, as amended. This relieves a
fund (but not its shareholders) from paying federal income tax on income which
is distributed to shareholders, and, if a fund did realize long-term capital
gains, permits net capital gains of the fund (i.e., the excess of net long-term
capital gains over net short-term capital losses) to be treated as long-term
capital gains of the shareholders, regardless of how long shareholders have held
their share in that fund.
Qualification as a regulated investment company requires, among other
things, that (a) at least 90% of a fund's annual gross income (without reduction
for losses from the sale or other disposition of securities or foreign
currencies) be derived form interest, dividends, payments with respect to
securities loans, and gains from the sale or other disposition of securities or
options thereon, or other income (including, but not limited to, gains from
options) derived with respect to its business of investing in such securities;
(b) a fund must diversify its holdings, so that at the end of each quarter of
the taxable year, (i) at least 50% of the market value of a fund's assets is
represented by cash, U.S. Government obligations and other securities limited in
respect of any one issuer to an amount not greater than 5% of the market value
of the fund's assets and 10% of the outstanding voting securities of such
issuer, and (ii) not more than 25% of the value of its assets is invested in the
securities of any one issuer (other than U.S. Government obligations) and (c)
the fund must distribute to its shareholders at least 90% of its net investment
income and net short-term gains (i.e., the excess of net short-term capital
gains over net long-term capital losses) in each year.
Gains or losses on sales of securities by the Fund will be treated as
long-term capital gains or losses if the securities have been held by it for
more than one year. The Fund does not anticipate realizing long-term capital
gains or losses. Other gains or losses on the sale of securities will be
short-term capital gains or losses. In addition, debt securities acquired by the
fund may be subject to original issue discount and market discount rules.
The Fund is required to distribute 98% of its ordinary income in the
same calendar year in which it is earned. The Fund is also required to
distribute during the calendar year 98% of the capital gain net income it earned
during the twelve months ending on October 31 of such calendar year, as well as
all undistributed ordinary income and undistributed capital gain net income from
the prior year or the twelve-month period ending on October 31 of such prior
year, respectively. To the extent it does not meet these distribution
requirements, the Fund will be subject to a non-deductible 4% excise tax on the
undistributed amount. For purposes of this excise tax, income on which the Fund
pays income tax is treated as distributed. The Fund intends to make timely
distributions in order to avoid this excise tax. For this purpose, dividends
declared in October, November and December payable to shareholders of record on
a specified date in October, November and December, and paid in the following
January, will be treated as having been received by shareholders on December 31
of the calendar year in which declared. Under this rule, therefore, a
shareholder may be taxed in the prior year on dividends or distributions
actually received in January of the following year.
It is anticipated that the net asset value per share of the Fund will
remain constant. However, if the net asset value per share fluctuates, a
shareholder may realize gain or loss upon the disposition of a share.
Distributions of net investment income and net short-term gains will be taxable
to the shareholder at ordinary income rates regardless of whether the
shareholder receives such distributions in additional shares or cash. Any gain
or loss realized upon a sale or redemption of shares by a shareholder who is not
a dealer in securities will generally be treated as long-term capital gain or
loss if the shares have been held for more than one year and otherwise as
short-term capital gain or loss. Any such loss, however, although otherwise
treated as short-term capital loss, will be long-term capital loss to the extent
of any capital gain distributions received by the shareholder, if the shares
have been held for six months or less. Furthermore, certain rules may apply
which would limit the ability of the shareholder to recognize any loss if, for
example, the shareholder replaced the shares within 30 days of the disposition
of the shares. Because none of the Fund's net income is anticipated to arise
from dividends on common or preferred stock, none of its distributions to
shareholders will be eligible for the dividends received deduction for
corporations under the Internal Revenue Code. Shareholders will be notified
annually by the Fund as to the federal tax status of distributions made by the
Fund.
Under the laws of certain states, distributions of net income may be taxable to
shareholders as income even though a portion of such distributions may be
derived from interest on U.S. Government obligations, which, if realized
directly, would be exempt from state income taxes. Shareholders are advised to
consult their tax advisers concerning the applications of state and local taxes.
<PAGE>
FINANCIAL STATEMENTS
A Statement of Assets and Liabilities of the JNL Money Market Fund as of
December 6, 2000, and the report of PricewaterhouseCoopers LLP, with respect
hereto, is set forth below.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholder and Board of Trustees of the
JNL Money Market Fund
In our opinion, the accompanying statement of assets and liabilities presents
fairly, in all material respects, the financial position of JNL Money Market
Fund (the "Fund") at December 1, 2000, in conformity with accounting principles
generally accepted in the United States. This financial statement is the
responsibility of the Fund's management; our responsibility is to express an
opinion on this financial statement based on our audit. We conducted our audit
of this financial statement in accordance with auditing standards generally
accepted in the United States, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statement is free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statement, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
December 6, 2000
<PAGE>
JNL Money Market Fund
Statement of Assets and Liabilities
December 1, 2000
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Cash.......................................................................... $ 100,000
----------------
Total Assets............................................................. $ 100,000
----------------
LIABILITIES
Total Liabilities........................................................ -
----------------
NET ASSETS................................................................... $ 100,000
================
Total shares outstanding (no par value), unlimited shares authorized:
Service Class........................................................... -
================
Institutional Class..................................................... $ 100,000
================
Net asset value, offering and redemption price per share:
Service Class........................................................... $ -
================
================
Institutional Class..................................................... $ 1.00
================
</TABLE>
See notes to the Financial Statement.
JNL Money Market Fund
Notes to the Financial Statement
1. Organization
JNL Investors Series Trust (the "Trust") was organized under the laws of
Massachusetts, by a Declaration of Trust, dated July 28, 2000. The Trust
is registered with the Securities and Exchange Commission under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end management investment company issuing its shares in series, each
series representing a distinct portfolio with its own investment
objectives and policies. The JNL Money Market Fund (the "Fund") is
presently the only series authorized. The Fund currently offers Service
Class and Institutional Class shares. The Fund is a "diversified" series
of the Trust. The Fund has had no operations other than those relating to
organizational matters, including the sale of 100,000 Institutional Class
shares for cash in the amount of $100,000 to capitalize the Fund, which
were sold to Jackson National Financial Services, LLC ("JNFS" or the
"Adviser"), on December 1, 2000.
2. Significant Accounting Policies
(a) Organization and Prepaid Initial Registration Expenses
Expenses incurred by the Trust in connection with the
organization and initial public offering of shares were assumed
by the Adviser. The Funds are not required to reimburse the
Adviser for these costs.
(b) Federal Income Taxes
The Fund intends to comply with the requirements of the Internal
Revenue Code necessary to qualify as a regulated investment
company and to make the requisite distributions of taxable
income and capital gains to it's shareholders sufficient to
relieve it from all or substantially all federal income or
excise taxes.
3. Related Parties
The Trust has entered into an Investment Advisory Agreement (the
"Agreement") with the Adviser to furnish investment advisory services
to the Fund. Under the terms of the Agreement, the Fund compensates
the Adviser for its management services at the annual rate of 0.25%
of the Fund's average daily net assets.
PPM America, Inc. (PPM) serves as the sub-adviser for the Fund. As
compensation for their services, PPM receives fees from JNFS
calculated on the basis of the average daily net assets of the Fund.
The management fee JNFS is currently obligated to pay PPM out of the
advisory fee it receives from the Fund is as follows:
JNL Money Market Fund $0 to $200 million 0.10%
Over $200 million 0.07%
In addition to the investment advisory fee, the Fund pays an
Administrative Fee of 0.10% of the average daily net assets of the
Institutional Class and 0.25% of the average daily net assets of the
Service Class to JNFS. In return for the fee, JNFS provides or
procures all necessary administrative functions and services for the
operation of the Fund. In accordance with the agreement, JNFS is
responsible for payment of expenses related to legal, audit, fund
accounting, transfer agency, custody, printing and mailing,
registration fees, trustee fees, and all other services necessary for
the operation of the Fund. The Fund is responsible for any trading
expenses including brokerage commissions, interest and taxes, and
other non-operating expenses.
The Trust's distributor is Jackson National Life Distributors, Inc., an
affiliate.
4. Plan of Distribution (12b-1 Plans)
The Fund has adopted a Plan of Distribution pursuant to Rule 12b-1 under
the 1940 Act that allows the Fund to pay asset-based sales charges or
distribution and service fees in connection with the distribution of its
shares. The Fund's Service Class pays these fees in the amount of 0.50% of
average daily net assets.
<PAGE>
APPENDIX A -- RATINGS OF INVESTMENTS
Moody's Investors Service, Inc.
Commercial Paper Ratings. The ratings Prime-1 and Prime-2 are the two highest
commercial paper ratings assigned by Moody's Investors Service, Inc. (Moody's).
Among the factors considered by it in assigning ratings are the following: (1)
evaluation of the management of the issuer; (2) economic evaluation of the
issuer's industry or industries and an appraisal of speculative-type risks which
may be inherent in certain areas; (3) evaluation of the issuer's products in
relation to competition and customer-acceptance; (4) liquidity; (5) amount and
quality of long-term debt; (6) trend of earnings over a period of ten years; (7)
financial strength of a parent company and the relationships which exist with
the issuer; and (8) recognition by the management of obligations which may be
present or may arise as a result of public interest questions and preparations
to meet such obligations. Relative strength or weakness of the above factors
determines whether the issuer's commercial paper is rated Prime-1 or 2.
Bond Ratings.
AAA. Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
"gilt-edge." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.
AA. Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group, they comprise what are generally known
as high grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of protective
elements may be of greater amplitude or there may be other elements present
which make the long-term risks appear somewhat larger than in Aaa securities.
A. Bonds which are rated A possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors giving security
to principal and interest are considered adequate but elements may be present
which suggest a susceptibility to impairment sometime in the future.
BAA. Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest payments
and principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and, in
fact, have speculative characteristics as well.
BA. Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.
B. Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.
CAA. Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal and
interest.
CA. Bonds which are rated Ca represent obligations which are speculative in
a high degree. Such issues are often in default or have other marked
shortcomings.
C. Bonds which are rated C are the lowest rated class of bonds and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing.
Standard & Poor's Ratings Services
Issue Credit Ratings Definitions. A Standard & Poor's issue credit rating is a
current opinion of the creditworthiness of an obligor with respect to a specific
financial obligation, a specific class of financial obligations, or a specific
financial program (including ratings on medium-term note programs and commercial
paper programs). It takes into consideration the creditworthiness of guarantors,
insurers, or other forms of credit enhancement on the obligation and takes into
account the currency in which the obligation is denominated. The issue credit
rating is not a recommendation to purchase, sell, or hold a financial
obligation, inasmuch as it does not comment as to market price or suitability
for a particular investor.
Issue credit ratings are based on current information furnished by the obligors
or obtained by Standard & Poor's from other sources it considers reliable.
Standard & Poor's does not perform an audit in connection with any credit rating
and may, on occasion, rely on unaudited financial information. Credit ratings
may be changed, suspended, or withdrawn as a result of changes in, or
unavailability of, such information, or based on other circumstances.
Issue credit ratings can be either long-term or short-term. Short-term ratings
are generally assigned to those obligations considered short-term in the
relevant market. In the U.S., for example, that means obligations with an
original maturity of no more than 365 days - including commercial paper.
Short-term ratings are also used to indicate the creditworthiness of an obligor
with respect to put features on long-term obligations. The result is a dual
rating, in which the short-term rating addresses the put feature, in addition to
the usual long-term rating. Medium-term notes are assigned long-term ratings.
Long-Term Issue Credit Ratings. Issue credit ratings are based, in varying
degrees, on the following considerations:
1. Likelihood of payment-capacity and willingness of the obligor to meet
its financial commitment on an obligation in accordance with the terms
of the obligation;
2. Nature of and provisions of the obligation;
3. Protection afforded by, and relative position of, the obligation in
the event of bankruptcy, reorganization, or other arrangement under
the laws of bankruptcy and other laws affecting creditors' rights.
The issue rating definitions are expressed in terms of default risk. As such,
they pertain to senior obligations of an entity. Junior obligations are
typically rated lower than senior obligations, to reflect the lower priority in
bankruptcy, as noted above. (Such differentiation applies when an entity has
both senior and subordinated obligations, secured and unsecured obligations, or
operating company and holding company obligations.) Accordingly, in the case of
junior debt, the rating may not confirm exactly with the category definition.
AAA. An obligation rated AAA has the highest rating assigned by Standard &
Poor's. The obligor's capacity to meet its financial commitment on the
obligation is extremely strong.
AA. An obligation rated AA differs from the highest-rated obligations only
in small degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.
A. An obligation rated A is somewhat more susceptible to the adverse effects
of changes in circumstances and economic conditions than obligations in
higher-rated categories. However, the obligor's capacity to meet its financial
commitment on the obligation is still strong.
BBB. An obligation rated BBB exhibits adequate protection parameters.
However, adverse economic conditions or changing circumstances are more likely
to lead to a weakened capacity of the obligor to meet its financial commitment
on the obligation.
Obligations rated BB, B, CCC, CC, and C are regarded as having significant
speculative characteristics. BB indicates the least degree of speculation and C
the highest. While such obligations will likely have some quality and protective
characteristics, these may be outweighed by large uncertainties or major
exposures to adverse conditions.
BB. An obligation rated BB is less vulnerable to nonpayment than other
speculative issues. However, it faces major ongoing uncertainties or exposure to
adverse business, financial, or economic conditions which could lead to the
obligor's inadequate capacity to meet its financial commitment on the
obligation.
B. An obligation rated B is more vulnerable to nonpayment than obligations
rated BB, but the obligor currently has the capacity to meet its financial
commitment on the obligation. Adverse business, financial, or economic
conditions will likely impair the obligor's capacity or willingness to meet its
financial commitment on the obligation.
CCC. An obligation rated CCC is currently vulnerable to nonpayment, and is
dependent upon favorable business, financial and economic conditions for the
obligor to meet its financial commitment on the obligation. In the event of
adverse business, financial, or economic conditions, the obligor is not likely
to have the capacity to meet its financial commitment on the obligation.
CC. An obligation rated CC is currently highly vulnerable to nonpayment.
C. The C rating may be used to cover a situation where a bankruptcy petition
has been filed or similar action has been taken, but payments on this obligation
are being continued.
D. An obligation rated D is in payment default. The D rating category is
used when payments on an obligation are not made on the date due even if the
applicable grace period has not expired, unless Standard & Poor's believes that
such payments will be made during such grace period. The D rating also will be
used upon the filing of a bankruptcy petition or the taking of a similar action
if payments on an obligation are jeopardized.
Plus (+) or minus (-). The ratings from AA to CCC may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.
r. This symbol is attached to the ratings of instruments with significant
noncredit risks. It highlights risks to principal or volatility of expected
returns which are not addressed in the credit rating. Examples include:
obligations linked or indexed to equities, currencies, or commodities;
obligations exposed to severe prepayment risk-such as interest-only or
principal-only mortgage securities; and obligations with unusually risky
interest terms, such as inverse floaters.
Short-Term Issue Credit Ratings.
A-1. A short-term obligation rated A-1 is rated in the highest category by
Standard & Poor's. The obligor's capacity to meet its financial commitment on
the obligation is strong. Within this category, certain obligations are
designated with a plus sign (+). This indicates that the obligor's capacity to
meet its financial commitment on these obligations is extremely strong.
A-2. A short-term obligation rated A-2 is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than
obligations in higher rating categories. However, the obligor's capacity to meet
its financial commitment on the obligation is satisfactory.
A-3. A short-term obligation rated A-3 exhibits adequate protection
parameters. However, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity of the obligor to meet its financial
commitment on the obligation.
B. A short-term obligation rated B is regarded as having significant
speculative characteristics. The obligor currently has the capacity to meet its
financial commitment on the obligation; however, it faces major ongoing
uncertainties which could lead to the obligor's inadequate capacity to meet its
financial commitment on the obligation.
C. A short-term obligation rated C is currently vulnerable to nonpayment and
is dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation.
D. A short-term obligation rated D is in payment default. The D rating
category is used when payments on an obligation are not made on the date due
even if the applicable grace period has not expired, unless Standard & Poor's
believes that such payments will be made during such grace period. The D rating
also will be used upon the filing of a bankruptcy petition or the taking of a
similar action if payments on an obligation are jeopardized.
Local Currency and Foreign Currency Risks. Country risk considerations are a
standard part of Standard & Poor's analysis for credit ratings on any issuer or
issue. Currency of repayment is a key factor in this analysis. An obligor's
capacity to repay foreign currency obligations may be lower than its capacity to
repay obligations in its local currency due to the sovereign government's own
relatively lower capacity to repay external versus domestic debt. These
sovereign risk considerations are incorporated in the debt ratings assigned to
specific issues. Foreign currency issuer ratings are also distinguished from
local currency issuer ratings to identify those instances where sovereign risks
make them different for the same issuer.
<PAGE>
JNL Investors Series Trust
PART C
OTHER INFORMATION
Note: Items 23-30 have been answered with respect to all investment portfolios
(Series) of the Registrant.
Item 23. Exhibits
(a) Agreement and Declaration of Trust of Registrant, incorporated by reference
to Registrant's Registration Statement filed with the Securities and
Exchange Commission on August 8, 2000.
(b) By-laws of Registrant, incorporated by reference to Registrant's
Pre-effective Amendment No. 1 to the Registration Statement filed with the
Securities and Exchange Commission on November 2, 2000.
(c) Not Applicable
(d) (1) Form of Investment Advisory and Management Agreement between
Registrant and Jackson National Financial Services, LLC, incorporated
by reference to Registrant's Pre-effective Amendment No. 1 to the
Registration Statement filed with the Securities and Exchange
Commission on November 2, 2000.
(2) Form of Investment Sub-Advisory Agreement between Jackson National
Financial Services, LLC and PPM America, Inc., incorporated by
reference to Registrant's Pre-effective Amendment No. 1 to the
Registration Statement filed with the Securities and Exchange
Commission on November 2, 2000.
(e) Form of Distribution Agreement between JNL Investors Series Trust and
Jackson National Life Distributors, Inc., incorporated by reference to
Registrant's Pre-effective Amendment No. 1 to the Registration Statement
filed with the Securities and Exchange Commission on November 2, 2000.
(f) Not Applicable.
(g) Form of Custody Agreement between Registrant and Boston Safe Deposit &
Trust Company, incorporated by reference to Registrant's Pre-effective
Amendment No. 1 to the Registration Statement filed with the Securities and
Exchange Commission on November 2, 2000.
(h) Form of Administration Agreement between Registrant and Jackson National
Financial Services, LLC, incorporated by reference to Registrant's
Pre-effective Amendment No. 1 to the Registration Statement filed with the
Securities and Exchange Commission on November 2, 2000.
(i) Consent of Counsel, incorporated by reference to Registrant's Pre-effective
Amendment No. 1 to the Registration Statement filed with the Securities and
Exchange Commission on November 2, 2000.
(j) Consent of Auditor, incorporated by reference to Registrant's Pre-effective
Amendment No. 1 to the Registration Statement filed with the Securities and
Exchange Commission on November 2, 2000.
(k) Not Applicable
(l) Not Applicable
(m) Rule 12b-1 Plan, incorporated by reference to Registrant's Pre-effective
Amendment No. 1 to the Registration Statement filed with the Securities and
Exchange Commission on November 2, 2000.
(n) Not Applicable
(o) Rule 18f-3 Plan, incorporated by reference to Registrant's Pre-effective
Amendment No. 1 to the Registration Statement filed with the Securities and
Exchange Commission on November 2, 2000.
(p) (1) The Registrant's Code of Ethics, incorporated by reference to
Registrant's Pre-effective Amendment No. 1 to the Registration
Statement filed with the Securities and Exchange Commission on
November 2, 2000.
(2) PPM America, Inc.'s Code of Ethics, incorporated by reference to
Registrant's Pre-effective Amendment No. 1 to the Registration
Statement filed with the Securities and Exchange Commission on
November 2, 2000.
(3) Jackson National Financial Services LLC's Code of Ethics, incorporated
by reference to Registrant's Pre-effective Amendment No. 1 to the
Registration Statement filed with the Securities and Exchange
Commission on November 2, 2000.
Item 24. Persons controlled by or under Common Control with Registrant.
Jackson National Separate Account - I Jackson National
Separate Account III Jackson National Separate Account IV
Jackson National Separate Account V Jackson National Separate
Account VI JNLNY Separate Account I JNLNY Separate Account II
Item 25. Indemnification.
Article VIII of the Registrant's Agreement and Declaration of
Trust provides that each of its Trustees and Officers
(including persons who serve at the Registrant's request as
directors, officers or trustees of another organization in
which the Registrant has any interest as a shareholder,
creditor or otherwise) (each, a "Covered Person") shall be
indemnified by the Registrant against all liabilities and
expenses that may be incurred by reason of being or having
been such a Covered Person, except that no Covered Person
shall be indemnified against any liability to the Registrant
or its shareholders to which such Covered Person would
otherwise be subject by reason of willful misfeasance, bad
faith, gross negligence or reckless disregard of the duties
involved in the conduct of such Covered Person's office.
The foregoing indemnification arrangements are subject to the
provisions of Section 17(h) of the Investment Company Act of
1940.
Insofar as indemnification by the Registrant for liabilities
arising under the Securities Act of 1933 may be permitted to
directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a
director, officer or controlling person of the Registrant in
the successful defense of any action, suit or proceeding) is
asserted against the Registrant by such director, officer or
controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final
adjudication of such issue.
In addition to the above indemnification, Jackson National
Life Insurance Company extends its indemnification of its own
officers, directors and employees to cover such persons'
activities as officers, trustees or employees of the
Registrant, and by separate agreement Jackson National Life
Insurance Company has agreed to indemnify trustees of the
Registrant who are not interested persons of the Registrant or
its investment adviser.
Item 26. Business and Other Connections of Investment Adviser.
Incorporated herein by reference from the Prospectus and
Statement of Additional Information relating to the Trust are
the following: the description of the business of Jackson
National Financial Services, LLC ("JNFSLLC") contained in the
section entitled "Management of the Trust" of the Prospectus,
and the biographical information pertaining to Messrs.
Hopping, Bouchard, D'Annunzio, Meyer, Fritts and Nerud and Ms.
Rhee and Ms. Engler, contained in the section entitled
"Trustees and Officers of the Trust" and the description of
JNFSLLC contained in the section entitled "Investment Adviser
and Other Services" of the Statement of Additional
Information.
Directors and Officers of JNFSLLC:
Name Address Principal Occupation
Andrew B. Hopping 1 Corporate Way President, Managing
Lansing, MI 48951 Board Member
(3/98 to Present)
Mark D. Nerud 1 Corporate Way Chief Financial Officer,
Lansing, MI 48951 Managing Board Member
(3/98 to Present)
Susan S. Rhee 1 Corporate Way Secretary
Lansing, MI 48951 (1/00 to Present)
PPM America, Inc., file no. 801-40783, the sub-adviser of the
series of the Trust, is primarily engaged in the business of
rendering investment advisory services. Reference is made to
the most recent Form ADV and schedules thereto on file with
the Commission for a description of the names and employment
of the directors and officers of the sub-adviser and other
required information.
Item 27. Principal Underwriters.
(a) Jackson National Life Distributors, Inc. acts as general distributor
for the Registrant. Jackson National Life Distributors, Inc. also acts
as general distributor for the JNL Series Trust, Jackson National
Separate Account - I, the Jackson National Separate Account III, the
Jackson National Separate Account V, the JNLNY Separate Account I and
the JNLNY Separate Account II.
(b) Directors and Officers of Jackson National Life Distributors, Inc.:
Name and Positions and Offices
Business Address with Underwriter
Robert P. Saltzman Director
1 Corporate Way
Lansing, MI 48951
Andrew B. Hopping* Director, Vice President,
1 Corporate Way Chief Financial Officer and
Lansing, MI 48951 Treasurer
Michael A. Wells Director, President and
401 Wilshire Blvd. Chief Executive Officer
Suite 1200
Santa Monica, CA 90401
Mark D. Nerud* Chief Operating Officer,
225 West Wacker Drive Vice President and Assistant
Suite 1200 Treasurer
Chicago, IL 60606
Willard Barrett Senior Vice President -
3500 S. Blvd., Ste. 18B Divisional Director West
Edmond, OK 73013
Jay A. Elliott Senior Vice President -
10710 Midlothian Turnpike Division Director Northeast
Suite 301
Richmond, VA 23235
Douglas K. Kinder Senior Vice President -
1018 W. St. Maartens Dr. Divisional Director Midwest
St. Joseph, MO 64506
Scott W. Richardson Senior Vice President -
900 Circle 75 Parkway Divisional Director Southeast
Suite 1750
Atlanta, GA 30339
Gregory B. Salsbury Senior Vice President -
401 Wilshire Blvd. Resource Development
Suite 1200
Santa Monica, CA 90401
Christine A. Pierce-Tucker Senior Vice President -
401 Wilshire Boulevard Marketing
Suite 1200
Santa Monica, CA 90401
Steven R. Banis Senior Vice President -
401 Wilshire Boulevard Corporate Communications
Suite 1200
Santa Monica, CA 90401
Sean P. Blowers Vice President - Thrift
401 Wilshire Boulevard Products
Suite 1200
Santa Monica, CA 90401
Barry L. Bulakites Vice President - Western
401 Wilshire Blvd. Regional Development
Suite 1200
Santa Monica, CA 90401
Tori Bullen Vice President - IMG
401 Wilshire Blvd.
Suite 1200
Santa Monica, CA 90401
Scott Coomes Vice President - Life Products
401 Wilshire Blvd.
Suite 1200
Santa Monica, CA 90401
Bill Ditt Vice President - Fixed Products
401 Wilshire Blvd.
Suite 1200
Santa Monica, CA 90401
Stephanee Maxwell Vice President - Marketing
401 Wilshire Blvd. Communications (Registered
Suite 1200 Products)
Santa Monica, CA 90401
Michael McGlothllin Vice President
401 Wilshire Blvd.
Suite 1200
Santa Monica, CA 90401
Bradley J. Powell Vice President - IMG
210 Interstate North Parkway
Suite 401
Atlanta, GA 30339-2120
Phil Wright Vice President - Marketing
401 Wilshire Boulevard Communications (Guaranteed
Suite 1200 Products)
Santa Monica, CA 90401
Scott Yessner Vice President - Business Solutions
401 Wilshire Blvd.
Suite 1200
Santa Monica, CA 90401
James L. Simon Secretary & Director of Compliance
1 Corporate Way
Lansing, MI 48951
*The individual noted are also directors and/or officers of the Trust.
(c)
New Under- Compensation
writing on
Name of Discounts Redemption
Principal and or Annuiti- Brokerage
Underwriter Commissions zation Commissions Compensation
Jackson
National
Life Not Not Not Not
Distributors, Applicable Applicable Applicable Applicable
Inc.
Item 28. Location of Accounts and Records
Certain accounts, books and other documents required to be
maintained pursuant to Rule 31a-1(b)(4), (5), (6), (7), (9),
(10), and (11) are in the physical possession of the
Registrant at 1 Corporate Way, Lansing, Michigan 48951;
certain accounts, books and other documents required to be
maintained pursuant to Rule 31a-1(b)(4), (5), (6), (7), (9),
(10), and (11) are in the physical possession of the
Registrant at 225 West Wacker Drive, Suite 1200, Chicago,
Illinois 60606; all other books, accounts and other documents
required to be maintained under Section 31(a) of the
Investment Company Act of 1940 and the Rules promulgated
thereunder are in the physical possession of Boston Safe
Deposit and Trust Company, One Boston Place, Boston, MA 02108.
Item 29. Management Services.
Not Applicable.
Item 30. Undertakings.
(a) Not Applicable.
(b) Not Applicable.
(c) Registrant undertakes to furnish each person to whom
a prospectus is delivered with a copy of the
Registrant's latest annual report to shareholders
upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act and the Investment
Company Act, the Trust has duly caused this Pre-effective Amendment to the
Registration Statement to be signed on its behalf by the undersigned, duly
authorized, in the City of Lansing and the State of Michigan on the 27th day of
December 2000.
JNL INVESTORS SERIES TRUST
By: /s/ Thomas J. Meyer
------------------------------------
Andrew B. Hopping by Thomas J. Meyer*
President, CEO and Trustee
Pursuant to the requirements of the Securities Act, this Pre-Effective
Amendment has been signed below by the following persons in the capacities and
on the date indicated.
/s/ Thomas J. Meyer December 27, 2000
------------------------------------ ----------------
Andrew B. Hopping President, CEO
by Thomas J. Meyer* and Trustee
/s/ Thomas J. Meyer December 27, 2000
------------------------------------ ----------------
Robert A. Fritts Vice President,
by Thomas J. Meyer* Treasurer, CFO and Trustee
/s/ Thomas J. Meyer December 27 ,2000
------------------------------------ ----------------
Michelle Engler Trustee
by Thomas J. Meyer*
/s/ Thomas J. Meyer December 27, 2000
------------------------------------ ----------------
Dominic D'Annunzio Trustee
by Thomas J. Meyer*
/s/ Thomas J. Meyer December 27, 2000
------------------------------------ ----------------
Michael Bouchard Trustee
by Thomas J. Meyer*
/s/ Thomas J. Meyer December 27, 2000
------------------------------------ ----------------
Thomas J. Meyer
* Attorney In Fact
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned as
trustees of JNL INVESTORS SERIES TRUST, a Massachusetts business trust, which
has filed or will file with the Securities and Exchange Commission under the
provisions of the Securities Act of 1933 and Investment Company Act of 1940, as
amended, various Registration Statements and amendments thereto for the
registration under said Acts of the sale of shares of beneficial interest of JNL
Investors Series Trust, hereby constitute and appoint Andrew B. Hopping, Thomas
J. Meyer and Robert P. Saltzman, his/her attorney, with full power of
substitution and re-substitution, for and in his/her name, place and stead, in
any and all capacities to approve and sign such Registration Statements and any
and all amendments thereto and to file the same, with all exhibits thereto and
other documents, granting unto said attorneys, each of them, full power and
authority to do and perform all and every act and thing requisite to all intents
and purposes as he might or could do in person, hereby ratifying and confirming
that which said attorneys, or any of them, may lawfully do or cause to be done
by virtue hereof.
This Power of Attorney may be executed in one or more counterparts,
each of which shall be deemed to be an original, and all of which shall be
deemed to be a single document.
IN WITNESS WHEREOF, each of the undersigned trustees hereby executes
this Power of Attorney as of the 10th day of August 2000.
/s/ Andrew B. Hopping
-------------------------------------------------
Andrew B. Hopping
/s/ Robert A. Fritts
-------------------------------------------------
Robert A. Fritts
/s/ Michelle Engler
-------------------------------------------------
Michelle Engler
/s/ Michael Bouchard
-------------------------------------------------
Michael Bouchard
/s/ Dominic D'Annunzio
-------------------------------------------------
Dominic D'Annunzio
