JNL SERIES TRUST, 485APOS, 1997-10-17

JNL SERIES TRUST
485APOS, 1997-10-17

Previous: RESIDENTIAL ASSET SECURITIES CORP, 424B5, 1997-10-17

Next: MIRAVANT MEDICAL TECHNOLOGIES, 8-K, 1997-10-17

<PAGE> 1

AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON OCTOBER 16, 1997

1933 ACT REGISTRATION NO. 33-87244
1940 ACT REGISTRATION NO. 811-8894
================================================================================

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------

FORM N-1A
------------------------

REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933

PRE-EFFECTIVE AMENDMENT NO. __ [ ]
POST-EFFECTIVE AMENDMENT NO. 11 [X]

AND/OR

REGISTRATION STATEMENT
UNDER THE INVESTMENT COMPANY ACT OF 1940

AMENDMENT NO. 12 [X]

JNL SERIES TRUST
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

5901 EXECUTIVE DRIVE, LANSING, MICHIGAN 48911
(ADDRESS OF PRINCIPAL
EXECUTIVE OFFICES) (ZIP
CODE)

(517) 394-3400
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

<TABLE>
<S> <C>
THOMAS J. MEYER, ESQ. WITH A COPY TO:
JNL SERIES TRUST
VICE PRESIDENT & COUNSEL BLAZZARD, GRODD & HASENAUER P.C.
5901 EXECUTIVE DRIVE P.O. BOX 5108
LANSING, MICHIGAN 48911 WESTPORT, CONNECTICUT 06881
</TABLE>

(NAME AND ADDRESS OF AGENT FOR SERVICE)

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

IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE
BOX)

<TABLE>
<S> <C>
[ ] IMMEDIATELY UPON FILING PURSUANT TO PARAGRAPH (B)
[ ] ON (DATE) PURSUANT TO PARAGRAPH (B)
[ ] 60 DAYS AFTER FILING PURSUANT TO PARAGRAPH (A)(1)
[ ] ON (DATE) PURSUANT TO PARAGRAPH (A)(1)
[ ] 75 DAYS AFTER FILING PURSUANT TO PARAGRAPH (A)(2)
[X] ON JANUARY 2, 1998 PURSUANT TO PARAGRAPH (A)(2) OF RULE 485.
[ ] THIS POST-EFFECTIVE AMENDMENT DESIGNATES A NEW EFFECTIVE
DATE FOR A PREVIOUSLY FILED POST-EFFECTIVE AMENDMENT.
</TABLE>

DECLARATION PURSUANT TO RULE 24F-2

THE REGISTRANT HAS REGISTERED AN INDEFINITE NUMBER OF SECURITIES IN
ACCORDANCE WITH RULE 24F-2 UNDER THE INVESTMENT COMPANY ACT OF 1940.
REGISTRANT'S RULE 24F-2 NOTICE FOR ITS FISCAL YEAR ENDED DECEMBER 31, 1996, WAS
FILED ON OR ABOUT FEBRUARY 28, 1997.

================================================================================
<PAGE> 2

JNL SERIES TRUST

CROSS-REFERENCE SHEET
(AS REQUIRED BY RULE 495)

<TABLE>
<CAPTION>
CAPTION IN PROSPECTUS OR STATEMENT OF
N-1A ITEM NO. ADDITIONAL INFORMATION RELATING TO EACH SERIES
- ------------- ----------------------------------------------
<S> <C> <C>

PART A
- --------- PROSPECTUS
--------------------------------------------------------
Item 1. Cover Page.............................................. Front Cover Page
Item 2. Synopsis................................................ Trust Expenses
Item 3. Financial Highlights.................................... Financial Highlights; Performance Advertising for the
Series
Item 4. General Description of Registrant....................... Front Cover Page; Investment Objectives and Policies;
Common Types of Securities and Management Practices
Item 5. Management of the Fund.................................. Management of the Trust
Item 5A Management's Discussion of Fund Performance............. Not Applicable
Item 6. Capital Stock and Other Securities...................... Additional Information; Performance Advertising for the
Series
Item 7. Purchase of Securities Being Offered.................... Investment in Trust Shares; Share Redemption
Item 8. Redemption or Repurchase................................ Share Redemption
Item 9. Pending Legal Proceedings............................... Not Applicable
PART B
- --------- STATEMENT OF ADDITIONAL INFORMATION
--------------------------------------------------------
Item
10. Cover Page.............................................. Front Cover Page
Item
11. Table of Contents....................................... Table of Contents
Item
12. General Information and History......................... General Information and History
Item
13. Investment Objectives and Policies...................... Investment Restrictions Applicable to All Series; Common
Types of Securities
Item
14. Management of the Fund.................................. Trustees and Officers of the Trust
Item
15. Control Persons and Principal Holders of Securities..... Trustees and Officers of the Trust
Item
16. Investment Advisory and Other Services.................. Investment Adviser and Other Services
Item
17. Brokerage Allocation and Other Practices................ Investment Adviser and Other Services
Item
18. Capital Stock and Other Securities...................... Additional Information
Item
19. Purchase, Redemption and Pricing of Securities Being
Offered............................................... Purchases, Redemptions and Pricing of Shares
Item
20. Tax Status.............................................. Tax Status
Item
21. Underwriters............................................ Not Applicable
Item
22. Calculation of Performance Data......................... Performance
Item
23. 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
Amendment to Registration Statement.
</TABLE>

<PAGE> 3

JNL(R) SERIES TRUST

JANUARY 5, 1998

<PAGE> 4

- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
TOPIC PAGE
----- ----
<S> <C>
TRUST EXPENSES.............................................. 4

FINANCIAL HIGHLIGHTS........................................ 6

INVESTMENT OBJECTIVES AND POLICIES.......................... 14

COMMON TYPES OF SECURITIES AND MANAGEMENT PRACTICES......... 42

MANAGEMENT OF THE TRUST..................................... 51

INVESTMENT IN TRUST SHARES.................................. 62

SHARE REDEMPTION............................................ 62

ADDITIONAL INFORMATION...................................... 62

PERFORMANCE ADVERTISING FOR THE SERIES...................... 63

TAX STATUS.................................................. 65
</TABLE>

<PAGE> 5

PROSPECTUS

January 5, 1998

JNL(R) SERIES TRUST
- --------------------------------------------------------------------------------
5901 Executive Drive - Lansing, Michigan 48911

JNL Series Trust ("Trust") is an open-end management investment company
organized under the laws of Massachusetts, by a Declaration of Trust, dated June
1, 1994. The Trust currently offers shares in separate Series, each with its own
investment objective. The shares of the Trust are sold to life insurance company
separate accounts to fund the benefits of variable annuity policies.

JNL AGGRESSIVE GROWTH SERIES is a non-diversified Series that seeks as its
investment objective long-term growth of capital by investing primarily in
common stocks of issuers of any size, including larger, well-established
companies and smaller, emerging growth companies.

JNL CAPITAL GROWTH SERIES is a non-diversified Series that seeks as its
investment objective long-term growth of capital by emphasizing investments in
common stocks of medium-sized companies. Although the Series expects to
emphasize such securities, it may also invest in smaller or larger companies.

JNL GLOBAL EQUITIES SERIES seeks as its investment objective long-term
growth of capital by investing primarily in common stocks of foreign and
domestic issuers of any size. This Series normally invests in issuers from at
least five different countries including the United States.

JNL/ALGER GROWTH SERIES seeks as its investment objective long-term capital
appreciation by investing in a diversified, actively managed portfolio of equity
securities, primarily of companies with total market capitalization of $1
billion or greater.

JNL/ALLIANCE GROWTH SERIES seeks long-term growth of capital by investing
primarily in common stocks or securities with common stock characteristics which
demonstrate the potential for appreciation.

JNL/EAGLE CORE EQUITY SERIES seeks as its investment objective long-term
capital appreciation and, secondarily, current income by investing primarily in
a diversified portfolio of common stocks which the sub-adviser believes offers
above-average potential for long-term capital appreciation.

JNL/EAGLE SMALLCAP EQUITY SERIES seeks as its investment objective
long-term capital appreciation by investing primarily in equity securities of
smaller companies which the sub-adviser believes offer potential for rapid
growth.

JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES seeks to provide high total
return by investing in a portfolio of equity securities of foreign companies in
developed and, to a lesser extent, developing markets.

JNL/PIMCO TOTAL RETURN BOND SERIES seeks to realize maximum total return,
consistent with preservation of capital and prudent investment management
through investment in a diversified portfolio of fixed income securities of
varying maturities. The average portfolio duration will normally vary within a
three- to six-year time frame based on the sub-adviser's forecast for interest
rates.

JNL/PUTNAM GROWTH SERIES seeks as its investment objective long-term growth
of capital. Since income is not an objective, any income generated by the
investment of this Series' assets will be incidental to its objective. It is

1
<PAGE> 6

intended that this Series will invest primarily in the common stocks of
companies believed by the sub-adviser to have opportunity for capital growth.

JNL/PUTNAM VALUE EQUITY SERIES seeks as its investment objective capital
growth, with income as a secondary objective by investing primarily in common
stocks which the sub-adviser believes to be undervalued relative to underlying
asset value or earnings potential at the time of purchase.

GOLDMAN SACHS/JNL GROWTH & INCOME SERIES seeks long-term growth of capital
and growth of income through investments in equity securities that are
considered to have favorable prospects for capital appreciation and/or dividend
paying ability.

LAZARD/JNL SMALL CAP VALUE SERIES seeks capital appreciation by investing
primarily in equity securities of companies with market capitalizations under $1
billion that are believed by the sub-adviser to be inexpensively priced relative
to the return on total capital or equity.

LAZARD/JNL MID CAP VALUE SERIES seeks capital appreciation by investing
primarily in equity securities of companies with market capitalizations in the
range of companies represented in the Russell Midcap Index that the sub-adviser
considers inexpensively priced relative to the return on total capital or
equity.

PPM AMERICA/JNL BALANCED SERIES seeks as its investment objective
reasonable income, long-term capital growth and preservation of capital. It is
intended that this Series will invest in common stocks and fixed income
securities, with emphasis on income-producing securities which appear to have
some potential for capital enhancement.

PPM AMERICA/JNL HIGH YIELD BOND SERIES seeks as its investment objective a
high level of current income; its secondary investment objective is capital
appreciation by investing in fixed income securities, with emphasis on
higher-yielding, higher-risk, lower-rated or unrated corporate bonds.

PPM AMERICA/JNL MONEY MARKET SERIES seeks as its investment objective 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.

SALOMON BROTHERS/JNL BALANCED SERIES seeks to obtain above-average income
(compared to a portfolio entirely invested in equity securities). As a secondary
objective, the Series seeks to take advantage of opportunities for growth of
capital and income. The Series seeks to achieve its objectives primarily through
investments in a broad variety of securities, including equity securities,
fixed-income securities and short-term obligations.

SALOMON BROTHERS/JNL GLOBAL BOND SERIES seeks as its investment objective a
high level of current income. As a secondary objective, the Series will seek
capital appreciation. The Series seeks to achieve its objectives by investing in
a globally diverse portfolio of fixed income investments and by giving the
sub-adviser broad discretion to deploy the Series' assets among certain segments
of the fixed income market that the sub-adviser believes will best contribute to
achievement of the Series' investment objectives. In pursuing its investment
objectives, the Series reserves the right to invest predominantly in securities
rated in medium or lower rating categories or as determined by the sub-adviser
to be of comparable quality. Although the Series has the ability to invest up to
100% of the Series' assets in lower-rated securities, the Series' sub-adviser
does not anticipate investing in excess of 75% of the Series' assets in such
securities.

SALOMON BROTHERS/JNL HIGH YIELD BOND SERIES seeks to maximize current
income. As a secondary objective, the Series seeks capital appreciation. The
Series seeks to achieve its objectives by investing primarily in a diversified
portfolio of high yield fixed-income securities that offer a yield above that
generally available on debt securities in the four highest rating categories of
the recognized rating services.

SALOMON BROTHERS/JNL U.S. GOVERNMENT & QUALITY BOND SERIES seeks as its
investment objective a high level of current income, by investing primarily in
debt obligations and mortgage-backed securities issued or guaranteed by

2
<PAGE> 7

the U.S. Government, its agencies or instrumentalities including collateralized
mortgage obligations backed by such securities. The Series may also invest a
portion of its assets in investment-grade bonds.

T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES seeks as its investment
objective long-term growth of capital and increasing dividend income through
investment primarily in common stocks of well-established growth companies.

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES seeks as its
investment objective long-term growth of capital through investments primarily
in common stocks of established, non-U.S. companies.

T. ROWE PRICE/JNL MID-CAP GROWTH SERIES seeks as its investment objective
long-term growth of capital by investing primarily in the common stock of
companies with medium-sized market capitalizations ("mid-cap") and the potential
for above average growth.

As a result of the market risk inherent in any investment, there is no
assurance that the investment objective of any of the Series will be realized.
Investments in a Series are neither insured nor guaranteed by the U.S.
Government or any other entity or person, and there can be no assurance that the
PPM America/JNL Money Market Series will be able to maintain a stable net asset
value of $1.00 per share.

THE PPM AMERICA/JNL HIGH YIELD BOND SERIES AND SALOMON BROTHERS/JNL HIGH
YIELD BOND SERIES INVEST PREDOMINANTLY IN, AND THE JNL AGGRESSIVE GROWTH SERIES,
JNL CAPITAL GROWTH SERIES, JNL GLOBAL EQUITIES SERIES, JNL/EAGLE CORE EQUITY
SERIES, JNL/EAGLE SMALLCAP EQUITY SERIES, JNL/PIMCO TOTAL RETURN BOND SERIES,
GOLDMAN SACHS/JNL GROWTH & INCOME SERIES, PPM AMERICA/JNL BALANCED SERIES,
SALOMON BROTHERS/JNL BALANCED SERIES AND SALOMON BROTHERS/JNL GLOBAL BOND SERIES
MAY INVEST IN HIGH YIELD, HIGH RISK BONDS. BONDS OF THIS TYPE ARE TYPICALLY
SUBJECT TO GREATER MARKET FLUCTUATIONS AND RISK OF LOSS OF INCOME AND PRINCIPAL
DUE TO DEFAULT BY THE ISSUER THAN ARE INVESTMENTS IN LOWER YIELDING, HIGHER
RATED BONDS. (SEE "INVESTMENT RISKS".)

Prior to May 1, 1997, the PPM America/JNL Balanced Series was the
JNL/Phoenix Investment Counsel Balanced Series, the JNL/Putnam Growth Series was
the JNL/Phoenix Investment Counsel Growth Series and the JNL/Putnam Value Equity
Series was the PPM America/JNL Value Equity Series.

This Prospectus provides you with the basic information you should know
before investing in the Series. You should read it and keep it for future
reference. A Statement of Additional Information, dated January 5, 1998, has
been filed with the Securities and Exchange Commission. You can obtain a copy
without charge by calling (800) 322-8257, or writing the JNL Series Trust
Service Center, P.O. Box 25127, Lansing, MI 48909. The Securities and Exchange
Commission maintains a Web site (http://www.sec.gov) that contains the Statement
of Additional Information, material incorporated by reference, and other
information regarding registrants that file electronically with the Commission.

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

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
------------------------

THE STATEMENT OF ADDITIONAL INFORMATION, DATED JANUARY 5, 1998, IS INCORPORATED
HEREIN BY REFERENCE.

3
<PAGE> 8

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

TRUST EXPENSES
- --------------------------------------------------------------------------------

SHAREHOLDER TRANSACTION EXPENSES

<TABLE>
<S> <C>
MAXIMUM SALES LOAD IMPOSED ON PURCHASES NONE
MAXIMUM SALES LOAD IMPOSED ON REINVESTED DIVIDENDS NONE
DEFERRED SALES LOAD NONE
REDEMPTION FEES NONE
EXCHANGE FEE NONE
</TABLE>

ANNUAL SERIES OPERATING EXPENSES
(As a percentage of average net assets.)

<TABLE>
<CAPTION>
OTHER
MANAGEMENT EXPENSES(AFTER TOTAL SERIES
FEE REIMBURSEMENT) OPERATING EXPENSES
---------- -------------- ------------------
<S> <C> <C> <C>
JNL Aggressive Growth Series.............................. .95% .15% 1.10%
JNL Capital Growth Series................................. .95% .15% 1.10%
JNL Global Equities Series................................ 1.00% .15% 1.15%
JNL/Alger Growth Series................................... .975% .15% 1.125%
JNL/Alliance Growth Series................................ .775% .15%* .925%
JNL/Eagle Core Equity Series.............................. .90% .15%** 1.05%
JNL/Eagle SmallCap Equity Series.......................... .95% .15%** 1.10%
JNL/JPM International & Emerging Markets Series........... .975% .15%* 1.125%
JNL/PIMCO Total Return Bond Series........................ .70% .15%* .85%
JNL/Putnam Growth Series***............................... .90% .15% 1.05%
JNL/Putnam Value Equity Series***......................... .90% .15% 1.05%
Goldman Sachs/JNL Growth & Income Series.................. .925% .15%* 1.075%
Lazard/JNL Small Cap Value Series......................... 1.05% .15%* 1.20%
Lazard/JNL Mid Cap Value Series........................... .975% .15%* 1.125%
PPM America/JNL Balanced Series***........................ .75% .15% .90%
PPM America/JNL High Yield Bond Series.................... .75% .15% .90%
PPM America/JNL Money Market Series....................... .60% .15% .75%
Salomon Brothers/JNL Balanced Series...................... .80% .15%* .95%
Salomon Brothers/JNL Global Bond Series................... .85% .15% 1.00%
Salomon Brothers/JNL High Yield Bond Series............... .80% .15%* .95%
Salomon Brothers/JNL U.S. Government & Quality Bond
Series.................................................. .70% .15% .85%
T. Rowe Price/JNL Established Growth Series............... .85% .15% 1.00%
T. Rowe Price/JNL International Equity Investment
Series.................................................. 1.10% .15% 1.25%
T. Rowe Price/JNL Mid-Cap Growth Series................... .95% .15% 1.10%
</TABLE>

*The JNL/Alliance Growth Series, JNL/JPM International & Emerging Markets
Series, JNL/PIMCO Total Return Bond Series, Goldman Sachs/JNL Growth & Income
Series, Lazard/JNL Small Cap Value Series, Lazard/JNL Mid Cap Value Series,
Salomon Brothers/JNL Balanced Series and Salomon Brothers/JNL High Yield Bond
Series commenced operations on January 2, 1998. These are estimated expenses for
the first fiscal year of operation. Actual expenses may be greater or lesser
than those shown.

**The JNL/Eagle Core Equity Series and the JNL/Eagle SmallCap Equity
Series commenced operations on September 16, 1996. These are estimated expenses
for the first fiscal year of operation. Actual expenses may be greater or lesser
than those shown.

***The management fees for the JNL/Putnam Growth Series, JNL/Putnam Value
Equity Series and the PPM America/JNL Balanced Series were changed effective May
1, 1997. See "Management of the Trust." The changes represent an increase in
management fees for the JNL/Putnam Growth Series when net assets exceed $50
million, an increase in management fees for the JNL/Putnam Value Equity Series
at all net asset levels and a decrease in management fees for the PPM
America/JNL Balanced Series at all net asset levels.

4
<PAGE> 9

Currently, Jackson National Financial Services, Inc. will reimburse each of
the Series for annual expenses (excluding Management Fees) in excess of .15% of
average daily net assets. Voluntary reimbursements to these Series may be
modified or discontinued at any time. Prior to reimbursement, Total Series
Operating Expenses as a percentage of net assets for the period ended December
31, 1996, were: JNL Aggressive Growth Series -- 1.40%; JNL Capital Growth Series
- -- 1.27%; JNL Global Equities Series -- 1.63%; JNL/Alger Growth Series -- 1.19%;
JNL/Putnam Growth Series -- 1.27%; JNL/Putnam Value Equity Series -- 1.53%; PPM
America/JNL Balanced Series -- 1.22%; PPM America/JNL High Yield Bond Series --
1.21%; PPM America/JNL Money Market Series -- .85%; Salomon Brothers/JNL Global
Bond Series -- 1.44%; Salomon Brothers/JNL U.S. Government & Quality Bond Series
- -- 1.37%; T. Rowe Price/JNL Established Growth Series -- 1.11%; T. Rowe
Price/JNL International Equity Investment Series -- 1.29%; and T. Rowe Price/JNL
Mid-Cap Growth Series -- 1.14%; and are expected to be: JNL/Alliance Growth
Series -- 1.38%; JNL/Eagle Core Equity Series -- 4.57%; JNL/Eagle SmallCap
Equity Series -- 4.77%; JNL/JPM International & Emerging Markets Series --
1.92%; JNL/PIMCO Total Return Bond Series -- 1.33%; Goldman Sachs/JNL Growth &
Income Series -- 1.56%; Lazard/JNL Small Cap Value Series -- 1.65%; Lazard/JNL
Mid Cap Value Series -- 1.58%; Salomon Brothers/JNL Balanced Series -- 1.43%;
and Salomon Brothers/JNL High Yield Bond Series -- 1.43%.

EXAMPLE -

The following example illustrates the expenses you would incur on a $1,000
investment, assuming (1) 5% annual return and (2) redemption at the end of each
time period:

<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
JNL Aggressive Growth Series................................ $11 $35 $61 $134
JNL Capital Growth Series................................... $11 $35 $61 $134
JNL Global Equities Series.................................. $12 $37 $63 $140
JNL/Alger Growth Series..................................... $11 $36 $62 $137
JNL/Alliance Growth Series.................................. $ 9 $29 N/A N/A
JNL/Eagle Core Equity Series................................ $11 $33 N/A N/A
JNL/Eagle SmallCap Equity Series............................ $11 $35 N/A N/A
JNL/JPM International & Emerging Markets Series............. $11 $36 N/A N/A
JNL/PIMCO Total Return Bond Series.......................... $ 9 $27 N/A N/A
JNL/Putnam Growth Series.................................... $11 $33 $58 $128
JNL/Putnam Value Equity Series.............................. $11 $33 $58 $128
Goldman Sachs/JNL Growth & Income Series.................... $11 $34 N/A N/A
Lazard/JNL Small Cap Value Series........................... $12 $38 N/A N/A
Lazard/JNL Mid Cap Value Series............................. $11 $36 N/A N/A
PPM America/JNL Balanced Series............................. $ 9 $29 $50 $111
PPM America/JNL High Yield Bond Series...................... $ 9 $29 $50 $111
PPM America/JNL Money Market Series......................... $ 8 $24 $42 $93
Salomon Brothers/JNL Balanced Series........................ $10 $30 N/A N/A
Salomon Brothers/JNL Global Bond Series..................... $10 $32 $55 $122
Salomon Brothers/JNL High Yield Bond Series................. $10 $30 N/A N/A
Salomon Brothers/JNL U.S. Government & Quality Bond
Series.................................................... $ 9 $27 $47 $105
T. Rowe Price/JNL Established Growth Series................. $10 $32 $55 $122
T. Rowe Price/JNL International Equity Investment Series.... $13 $40 $69 $151
T. Rowe Price/JNL Mid-Cap Growth Series..................... $11 $35 $61 $134
</TABLE>

The purpose of this table is to assist you in understanding the various
costs and expenses that you will bear directly or indirectly. The example
assumes a 5% annual rate of return pursuant to the requirements of the
Securities and Exchange Commission. This hypothetical rate of return is not
intended to be representative of past or future performance of the Series.

5
<PAGE> 10

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

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

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

The information for the period ended December 31, 1996, has been audited by
Price Waterhouse LLP, independent accountants, and should be read in conjunction
with the financial statements and notes thereto, together with the report of
Price Waterhouse LLP thereon, in the Annual Report included in the Statement of
Additional Information. The information for the six months ended June 30, 1997
is unaudited and should be read in conjunction with the financial statements and
notes thereto included in the Semi-Annual Report, included in the Statement of
Additional Information.

JNL SERIES TRUST

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
JNL AGGRESSIVE GROWTH SERIES JNL CAPITAL GROWTH SERIES
----------------------------------------- -----------------------------------------
SIX MONTHS PERIOD FROM PERIOD FROM SIX MONTHS PERIOD FROM PERIOD FROM
ENDED APRIL 1, MAY 15, ENDED APRIL 1, MAY 15,
JUNE 30, 1996 TO 1995* JUNE 30, 1996 TO 1995*
1997 DECEMBER 31, TO MARCH 31, 1997 DECEMBER 31, TO MARCH 31,
(UNAUDITED) 1996 1996 (UNAUDITED) 1996 1996
----------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD..... $13.38 $13.13 $10.00 $14.46 $13.86 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. 0.06 0.05 0.01 (0.03) 0.06 --
Net realized and unrealized gains on
investments and foreign currency
related items.......................... 0.76 1.10 3.53 0.72 0.70 4.70
------- ------- ------ ------- ------- ------
Total income from investment
operations............................. 0.82 1.15 3.54 0.69 0.76 4.70
------- ------- ------ ------- ------- ------
LESS DISTRIBUTIONS:
From net investment income............... -- (0.05) -- -- -- --
From net realized gains on investment
transactions........................... -- (0.71) (0.41) -- (0.16) (0.84)
Return of capital........................ -- (0.14) -- -- -- --
------- ------- ------ ------- ------- ------
Total distributions...................... -- (0.90) (0.41) -- (0.16) (0.84)
------- ------- ------ ------- ------- ------
Net increase............................. 0.82 0.25 3.13 0.69 0.60 3.86
------- ------- ------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD........... $14.20 $13.38 $13.13 $15.15 $14.46 $13.86
======= ======= ====== ======= ======= ======
TOTAL RETURN(A).......................... 6.13% 8.72% 35.78% 4.77% 5.45% 47.94%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................. $62,173 $29,555 $8,527 $60,969 $36,946 $9,578
Ratio of net operating expenses to
average net assets(b)(c)............... 1.10% 1.09% 1.09% 1.10% 1.09% 1.09%
Ratio of net investment income to average
net assets(b)(c)....................... 1.29% 0.77% 0.27% (0.11)% 0.91% (0.49)%
Ratio of interest expense and dividends
on short positions to average net
assets(b).............................. -- -- -- -- -- --
Portfolio turnover....................... 75.11% 85.22% 163.84% 51.45% 115.88% 128.56%
Average commission rate paid(d).......... $0.0262 $0.0242 n/a $0.0367 $0.0196 n/a
RATIO INFORMATION ASSUMING NO EXPENSE
REIMBURSEMENT OR FEES PAID INDIRECTLY
Ratio of expenses to average net
assets(b).............................. 1.24% 1.40% 2.77% 1.19% 1.27% 2.08%
Ratio of net investment income to average
net assets(b).......................... 1.15% 0.46% (1.41)% (0.20)% 0.73% (1.48)%
</TABLE>

- -------------------------
* Commencement of operations.
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all distributions, and a complete redemption of the
investment at the net asset value at the end of the period. Total return is
not annualized.
(b) Annualized.
(c) Computed after giving effect to the Advisor's expense reimbursement and fees
paid indirectly.
(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

6
<PAGE> 11

<TABLE>
<CAPTION>
JNL GLOBAL EQUITIES SERIES JNL/ALGER GROWTH SERIES
----------------------------------------- -----------------------------------------
SIX MONTHS PERIOD FROM PERIOD FROM SIX MONTHS PERIOD FROM PERIOD FROM
ENDED APRIL 1, MAY 15, ENDED APRIL 1, OCTOBER 16,
JUNE 30, 1996 TO 1995* JUNE 30, 1996 TO 1995*
1997 DECEMBER 31, TO MARCH 31, 1997 DECEMBER 31, TO MARCH 31,
(UNAUDITED) 1996 1996 (UNAUDITED) 1996 1996
----------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD..... $15.20 $13.75 $10.00 $11.16 $10.38 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............. 0.10 0.03 0.10 -- -- --
Net realized and unrealized gains on
investments and foreign currency
related items.......................... 2.60 2.72 4.02 1.87 0.78 0.38
-------- ------- ------- ------- ------- ------
Total income from investment
operations............................. 2.70 2.75 4.12 1.87 0.78 0.38
-------- ------- ------- ------- ------- ------
LESS DISTRIBUTIONS:
From net investment income............... -- (0.08) -- -- -- --
From net realized gains on investment
transactions........................... -- (0.90) (0.37) -- -- --
Return of capital........................ -- (0.32) -- -- -- --
-------- ------- ------- ------- ------- ------
Total distributions...................... -- (1.30) (0.37) -- -- --
-------- ------- ------- ------- ------- ------
Net increase............................. 2.70 1.45 3.75 1.87 0.78 0.38
-------- ------- ------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD........... $17.90 $15.20 $13.75 $13.03 $11.16 $10.38
======== ======= ======= ======= ======= ======
TOTAL RETURN(A).......................... 17.76% 19.99% 41.51% 16.76% 7.51% 3.80%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................. $112,333 $48,638 $16,141 $63,109 $38,252 $8,649
Ratio of net operating expenses to
average net assets(b)(c)............... 1.15% 1.14% 1.15% 1.125% 1.07% 1.03%
Ratio of net investment income to average
net assets(b)(c)....................... 1.35% 0.37% 0.39% (0.07)% (0.02)% (0.17)%
Ratio of interest expense and dividends
on short positions to average net
assets(b).............................. -- -- -- -- -- --
Portfolio turnover....................... 40.70% 52.02% 142.36% 51.91% 59.92% 50.85%
Average commission rate paid(d).......... $ 0.0043 $0.0162 n/a $0.0720 $0.0441 n/a
RATIO INFORMATION ASSUMING NO EXPENSE
REIMBURSEMENT OR FEES PAID INDIRECTLY
Ratio of expenses to average net
assets(b).............................. 1.35% 1.63% 2.25% 1.15% 1.19% 1.89%
Ratio of net investment income to average
net assets(b).......................... 1.15% (0.12)% (0.71)% (0.09)% (0.14)% (1.03)%
</TABLE>

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

* Commencement of operations.

(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all distributions, and a complete redemption of the
investment at the net asset value at the end of the period. Total return is
not annualized.

(b) Annualized.

(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

7
<PAGE> 12

JNL SERIES TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
JNL/EAGLE CORE JNL/EAGLE SMALLCAP
EQUITY SERIES EQUITY SERIES
---------------------------- ----------------------------
SIX MONTHS PERIOD FROM SIX MONTHS PERIOD FROM
ENDED SEPTEMBER 16, ENDED SEPTEMBER 16,
JUNE 30, 1996* TO JUNE 30, 1996* TO
1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD................... $10.62 $10.00 $11.54 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)........................... 0.04 0.03 (0.02) (0.01)
Net realized and unrealized gains on investments and
foreign currency related items....................... 1.95 0.62 1.97 1.55
------- ------- ------- -------
Total income from investment operations................ 1.99 0.65 1.95 1.54
------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income............................. -- (0.03) -- --
From net realized gains on investment transactions..... -- -- -- --
Return of capital...................................... -- -- -- --
------- ------- ------- -------
Total distributions.................................... -- (0.03) -- --
------- ------- ------- -------
Net increase........................................... 1.99 0.62 1.95 1.54
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD......................... $12.61 $10.62 $13.49 $11.54
======= ======= ======= =======
TOTAL RETURN(A)........................................ 18.74% 6.47% 16.90% 15.40%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in thousands)............... $ 6,783 $ 1,954 $ 6,983 $ 1,944
Ratio of net operating expenses to average net
assets(b)(c)(e)...................................... 1.05% 1.05% 1.10% 1.10%
Ratio of net investment income to average net
assets(b)(c)......................................... 1.14% 1.10% (0.62)% (0.26)%
Ratio of interest expense and dividends on short
positions to average net assets(b)................... -- -- -- --
Portfolio turnover..................................... 22.58% 1.36% 26.30% 28.01%
Average commission rate paid(d)........................ $0.0591 $0.0452 $0.0593 $0.0264
RATIO INFORMATION ASSUMING NO EXPENSE REIMBURSEMENT OR
FEES PAID INDIRECTLY
Ratio of expenses to average net assets(b)(f).......... 2.02% 4.57% 2.03% 4.77%
Ratio of net investment income to average net
assets(b)............................................ 0.17% (2.42)% (1.55)% (3.93)%
</TABLE>

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

* Commencement of operations.

(b) Annualized.

(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

8
<PAGE> 13

<TABLE>
<CAPTION>
JNL/PUTNAM GROWTH SERIES JNL/PUTNAM VALUE EQUITY SERIES
----------------------------------------- -----------------------------------------
SIX MONTHS PERIOD FROM PERIOD FROM SIX MONTHS PERIOD FROM PERIOD FROM
ENDED APRIL 1, MAY 15, ENDED APRIL 1, MAY 15,
JUNE 30, 1996 TO 1995* JUNE 30, 1996 TO 1995*
1997 DECEMBER 31, TO MARCH 31, 1997 DECEMBER 31, TO MARCH 31,
(UNAUDITED) 1996 1996 (UNAUDITED) 1996 1996
----------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $14.21 $12.50 $10.00 $14.50 $12.77 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)........ 0.03 0.04 0.01 0.09 0.10 0.23
Net realized and unrealized gains on
investments and foreign currency
related items..................... 1.26 2.12 3.66 1.92 1.97 2.86
------- ------- ------ ------- ------- ------
Total income from investment
operations........................ 1.29 2.16 3.67 2.01 2.07 3.09
------- ------- ------ ------- ------- ------
LESS DISTRIBUTIONS:
From net investment income.......... -- (0.05) -- -- (0.15) (0.17)
From net realized gains on
investment transactions........... -- (0.40) (1.17) -- (0.19) (0.15)
Return of capital................... -- -- -- -- -- --
------- ------- ------ ------- ------- ------
Total distributions................. -- (0.45) (1.17) -- (0.34) (0.32)
------- ------- ------ ------- ------- ------
Net increase........................ 1.29 1.71 2.50 2.01 1.73 2.77
------- ------- ------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD...... $15.50 $14.21 $12.50 $16.51 $14.50 $12.77
======= ======= ====== ======= ======= ======
TOTAL RETURN(A)..................... 9.08% 17.28% 37.69% 13.86% 16.25% 31.14%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)........................ $60,325 $22,804 $2,518 $53,953 $17,761 $3,365
Ratio of net operating expenses to
average net assets(b)(c)(e)....... 1.05% 1.04% 0.95% 0.97% 0.85% 0.87%
Ratio of net investment income to
average net assets(b)(c).......... 0.63% 0.94% 0.28% 2.02% 2.29% 2.33%
Ratio of interest expense and
dividends on short positions to
average net assets(b)............. 0.25% -- -- -- -- --
Portfolio turnover.................. 220.95% 184.33% 255.03% 92.65% 13.71% 30.12%
Average commission rate paid(d)..... $0.0481 $0.0175% n/a $0.0370 $0.0259 n/a
RATIO INFORMATION ASSUMING NO
EXPENSE REIMBURSEMENT OR FEES PAID
INDIRECTLY
Ratio of expenses to average net
assets(b)(f)...................... 1.10% 1.27% 5.38% 1.12% 1.53% 2.28%
Ratio of net investment income to
average net assets(b)............. 0.58% 0.71% (4.15)% 1.87% 1.61% 0.91%
</TABLE>

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

* Commencement of operations.

(b) Annualized.

(d) Disclosure required for fiscal years beginning after September 1, 1995.

(e) For the JNL/Putnam Growth Series during the six months ended June 30, 1997,
the net operating expense ratio excludes interest expense and dividends on
short positions. The ratio including interest expense and dividends on short
positions during the six months ended June 30, 1997 was 1.25%.

(f) For the JNL/Putnam Growth Series during the six months ended June 30, 1997,
the expense ratio excludes interest expense and dividends on short
positions. The ratio including interest expense and dividends on short
positions during the six months ended June 30, 1997 was 1.30%.

See notes to the financial statements.

9
<PAGE> 14

JNL SERIES TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
PPM AMERICA/JNL
PPM AMERICA/JNL BALANCED SERIES HIGH YIELD BOND SERIES
----------------------------------------- -----------------------------------------
SIX MONTHS PERIOD FROM PERIOD FROM SIX MONTHS PERIOD FROM PERIOD FROM
ENDED APRIL 1, MAY 15, ENDED APRIL 1, MAY 15,
JUNE 30, 1996 TO 1995* JUNE 30, 1996 TO 1995*
1997 DECEMBER 31, TO MARCH 31, 1997 DECEMBER 31, TO MARCH 31,
(UNAUDITED) 1996 1996 (UNAUDITED) 1996 1996
----------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $11.92 $11.17 $10.00 $10.67 $10.23 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)........ 0.16 0.10 0.25 0.30 0.51 0.73
Net realized and unrealized gains on
investments and foreign currency
related items..................... 0.95 0.98 1.40 0.41 0.64 0.04
------- ------- ------ ------- ------- ------
Total income from investment
operations........................ 1.11 1.08 1.65 0.71 1.15 0.77
------- ------- ------ ------- ------- ------
LESS DISTRIBUTIONS:
From net investment income.......... -- (0.15) (0.19) -- (0.69) (054)
From net realized gains on
investment transactions........... -- (0.18) (0.29) -- (0.02) --
Return of capital................... -- -- -- -- -- --
------- ------- ------ ------- ------- ------
Total distributions................. -- (0.33) (0.48) -- (0.71) (0.54)
------- ------- ------ ------- ------- ------
Net increase........................ 1.11 0.75 1.17 0.71 0.44 0.23
------- ------- ------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD...... $13.03 $11.92 $11.17 $11.38 $10.67 $10.23
======= ======= ====== ======= ======= ======
TOTAL RETURN(A)..................... 9.31% 9.72% 16.60% 6.65% 11.24% 7.82%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)........................ $42,495 $24,419 $4,761 $38,728 $13,396 $6,156
Ratio of net operating expenses to
average net assets(b)(c)(e)....... 0.99% 1.04% 1.01% 0.90% 0.88% 0.88%
Ratio of net investment income to
average net assets(b)(c).......... 3.28% 2.39% 2.99% 8.33% 8.64% 8.34%
Ratio of interest expense and
dividends on short positions to
average net assets(b)............. -- -- -- -- -- --
Portfolio turnover.................. 121.49% 158.15% 115.84% 94.25% 113.08% 186.21%
Average commission rate paid(d)..... $0.0347 $0.0494 n/a n/a n/a n/a
RATIO INFORMATION ASSUMING NO
EXPENSE REIMBURSEMENT OR FEES PAID
INDIRECTLY
Ratio of expenses to average net
assets(b)(f)...................... 1.09% 1.22% 3.71% 0.98% 1.21% 1.50%
Ratio of net investment income to
average net assets(b)............. 3.18% 2.21% 0.29% 8.25% 8.31% 7.72%
</TABLE>

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

* Commencement of operations.

(b) Annualized.

(d) Disclosure required for fiscal years beginning after September 1, 1995.

(f) For the JNL/Putnam Growth series during the six months ended June 30, 1997,
the expense ratio excludes interest expense and dividends on short
positions. The ratio including interest expense and dividends on short
positions during the six months ended June 30, 1997 was 1.30%.

See notes to the financial statements.

10
<PAGE> 15

<TABLE>
<CAPTION>
PPM AMERICA/ SALOMON BROTHERS/
JNL MONEY MARKET SERIES JNL GLOBAL BOND SERIES
----------------------------------------- -----------------------------------------
SIX MONTHS PERIOD FROM PERIOD FROM SIX MONTHS PERIOD FROM PERIOD FROM
ENDED APRIL 1, MAY 15, ENDED APRIL 1, MAY 15,
JUNE 30, 1996 TO 1995* JUNE 30, 1996 TO 1995*
1997 DECEMBER 31, TO MARCH 31, 1997 DECEMBER 31, TO MARCH 31,
(UNAUDITED) 1996 1996 (UNAUDITED) 1996 1996
----------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $1.00 $1.00 $1.00 $10.63 $10.46 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)........ 0.02 0.04 0.04 0.27 0.42 0.81
Net realized and unrealized gains on
investments and foreign currency
related items..................... -- -- -- 0.31 0.70 0.24
------- ------- ------ ------- ------- ------
Total income from investment
operations........................ 0.02 0.04 0.04 0.58 1.12 1.05
------- ------- ------ ------- ------- ------
LESS DISTRIBUTIONS:
From net investment income.......... (0.02) (0.04) (0.04) -- (0.69) (0.56)
From net realized gains on
investment transactions........... -- -- -- -- (0.26) (0.03)
Return of capital................... -- -- -- -- -- --
------- ------- ------ ------- ------- ------
Total distributions................. (0.02) (0.04) (0.04) -- (0.95) (0.59)
------- ------- ------ ------- ------- ------
Net increase........................ -- -- -- 0.58 0.17 0.46
------- ------- ------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD...... $1.00 $1.00 $1.00 $11.21 $10.63 $10.46
======= ======= ====== ======= ======= ======
TOTAL RETURN(A)..................... 2.41% 3.61% 4.59% 5.46% 10.68% 10.74%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)........................ $37,856 $23,752 $6,816 $26,366 $12,483 $6,380
Ratio of net operating expenses to
average net assets(b)(c).......... 0.75% 0.75% 0.75% 1.00% 0.99% 1.00%
Ratio of net investment income to
average net assets(b)(c).......... 4.85% 4.75% 5.06% 7.21% 7.52% 9.01%
Ratio of interest expense and
dividends on short positions to
average net assets(b)............. -- -- -- -- -- --
Portfolio turnover.................. -- -- -- 84.42% 109.85% 152.89%
Average commission rate paid(d)..... n/a n/a n/a n/a n/a n/a
RATIO INFORMATION ASSUMING NO
EXPENSE REIMBURSEMENT OR FEES PAID
INDIRECTLY
Ratio of expenses to average net
assets(b)......................... 0.80% 0.85% 1.30% 1.36% 1.44% 2.14%
Ratio of net investment income to
average net assets(b)............. 4.80% 4.65% 4.51% 6.85% 7.07% 7.87%
</TABLE>

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

* Commencement of operations.

(b) Annualized.

(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

11
<PAGE> 16

JNL SERIES TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
SALOMON BROTHERS/JNL U.S. T. ROWE PRICE/JNL
GOVERNMENT & QUALITY BOND SERIES ESTABLISHED GROWTH SERIES
----------------------------------------- -----------------------------------------
SIX MONTHS PERIOD FROM PERIOD FROM SIX MONTHS PERIOD FROM PERIOD FROM
ENDED APRIL 1, MAY 15, ENDED APRIL 1, MAY 15,
JUNE 30, 1996 TO 1995* JUNE 30, 1996 TO 1995*
1997 DECEMBER 31, TO MARCH 31, 1997 DECEMBER 31, TO MARCH 31,
(UNAUDITED) 1996 1996 (UNAUDITED) 1996 1996
----------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $10.20 $10.09 $10.00 $12.56 $11.36 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)........ 0.24 0.24 0.45 0.03 0.03 0.07
Net realized and unrealized gains on
investments and foreign currency
related items..................... -- 0.24 0.02 2.18 1.81 2.68
------- ------ ------ ------- ------- ------
Total income from investment
operations........................ 0.24 0.48 0.47 2.21 1.84 2.75
------- ------ ------ ------- ------- ------
LESS DISTRIBUTIONS:
From net investment income.......... -- (0.34) (0.34) -- (0.04) (0.06)
From net realized gains on
investment transactions........... -- (0.03) (0.04) -- (0.09) (1.33)
Return of capital................... -- -- -- -- (0.51) --
------- ------ ------ ------- ------- ------
Total distributions................. -- (0.37) (0.38) -- (0.64) (1.39)
------- ------ ------ ------- ------- ------
Net increase........................ 0.24 0.11 0.09 2.21 1.20 1.36
------- ------ ------ ------- ------- ------
NET ASSET VALUE, END OF PERIOD...... $10.44 $10.20 $10.09 $14.77 $12.56 $11.36
======= ====== ====== ======= ======= ======
TOTAL RETURN(A)..................... 2.35% 4.82% 4.65% 17.60% 16.12% 28.23%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)........................ $17,401 $9,832 $3,007 $80,998 $32,291 $8,772
Ratio of net operating expenses to
average net assets(b)(c).......... 0.85% 0.84% 0.84% 1.00% 1.00% 1.00%
Ratio of net investment income to
average net assets(b)(c).......... 6.11% 5.72% 5.41% 0.60% 0.59% 0.75%
Ratio of interest expense and
dividends on short positions to
average net assets(b)............. -- -- -- -- -- --
Portfolio turnover.................. 152.20% 218.50% 253.37% 36.76% 36.41% 101.13%
Average commission rate paid(d)..... n/a n/a n/a $0.0349 $0.0288 n/a
RATIO INFORMATION ASSUMING NO
EXPENSE REIMBURSEMENT OR FEES PAID
INDIRECTLY
Ratio of expenses to average net
assets(b)......................... 1.09% 1.37% 2.53% 1.04% 1.11% 1.11%
Ratio of net investment income to
average net assets(b)............. 5.87% 5.19% 3.72% 0.56% 0.48% 0.48%
</TABLE>

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

* Commencement of operations.

(b) Annualized.

(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

12
<PAGE> 17

<TABLE>
<CAPTION>
T. ROWE PRICE/JNL INTERNATIONAL T. ROWE PRICE/JNL
EQUITY INVESTMENT SERIES MID-CAP GROWTH SERIES
----------------------------------------- -----------------------------------------
SIX MONTHS PERIOD FROM PERIOD FROM SIX MONTHS PERIOD FROM PERIOD FROM
ENDED APRIL 1, MAY 15, ENDED APRIL 1, MAY 15,
JUNE 30, 1996 TO 1995* JUNE 30, 1996 TO 1995*
1997 DECEMBER 31, TO MARCH 31, 1997 DECEMBER 31, TO MARCH 31,
(UNAUDITED) 1996 1996 (UNAUDITED) 1996 1996
----------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $12.08 $11.25 $10.00 $14.89 $13.43 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)........ 0.08 0.06 0.04 (0.01) (0.05) 0.06
Net realized and unrealized gains on
investments and foreign currency
related items..................... 1.32 0.90 1.21 0.92 1.92 3.90
------- ------- ------- ------- ------- -------
Total income from investment
operations........................ 1.40 0.96 1.25 0.91 1.87 3.96
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income.......... -- (0.12) -- -- (0.05) --
From net realized gains on
investment transactions........... -- (0.01) -- -- (0.36) (0.53)
Return of capital................... -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total distributions................. -- (0.13) -- -- (0.41) (0.53)
------- ------- ------- ------- ------- -------
Net increase........................ 1.40 0.83 1.25 0.91 1.46 3.43
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD...... $13.48 $12.08 $11.25 $15.80 $14.89 $13.43
======= ======= ======= ======= ======= =======
TOTAL RETURN(A)..................... 11.59% 8.54% 12.50% 6.11% 13.91% 40.06%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)........................ $74,486 $48,204 $24,211 $91,573 $47,104 $10,545
Ratio of net operating expenses to
average net assets(b)(c).......... 1.24% 1.25% 1.25% 1.10% 1.10% 1.10%
Ratio of net investment income to
average net assets(b)(c).......... 1.59% 1.09% 0.78% (0.21)% (0.81)% 0.82%
Ratio of interest expense and
dividends on short positions to
average net assets(b)............. -- -- -- -- -- --
Portfolio turnover.................. 7.86% 5.93% 16.45% 22.65% 25.05% 66.04%
Average commission rate paid(d)..... $0.0018 $0.0257 n/a $0.0487 $0.0326 n/a
RATIO INFORMATION ASSUMING NO
EXPENSE REIMBURSEMENT OR FEES PAID
INDIRECTLY
Ratio of expenses to average net
assets(b)......................... 1.38% 1.29% 2.14% 1.12% 1.14% 2.10%
Ratio of net investment income to
average net assets(b)............. 1.45% 1.05% (0.11)% (0.23)% (0.22)% (0.18)%
</TABLE>

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

* Commencement of operations.

(b) Annualized.

(d) Disclosure required for fiscal years beginning after September 1, 1995.

Each Series' recent performance and holdings will be detailed twice a year
in the Trust's annual and semi-annual reports, which are sent to all
shareholders.

See notes to the financial statements.

13
<PAGE> 18

- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVES AND POLICIES
- --------------------------------------------------------------------------------

Investments in each Series are made in many different securities which
provide diversification to minimize risk. While there is careful selection of
portfolio securities and constant supervision by a team of professional
investment managers, there can be no guarantee that the Series' objectives will
be achieved. Because of differences in investment objectives and policies, as
well as acceptable degrees of risk, the performance of a Series may differ even
though more than one Series may utilize the same securities selection.

Unless otherwise stated, the investment objectives and policies set forth
in this Prospectus are not fundamental and may be changed by the Trustees
without shareholder approval. Each Series is subject to additional investment
policies and restrictions described in the Statement of Additional Information,
some of which are fundamental and may not be changed without shareholder
approval.

Currently, shares of the Trust are sold to life insurance company separate
accounts ("Accounts") to fund the benefits of variable annuity policies
("Policies") issued by life insurance companies. The Accounts purchase shares of
the Trust in accordance with variable account allocation instructions received
from owners of the Policies. The Trust then uses the proceeds to buy securities
for its Series. The investment adviser manages the Series from day to day to
accomplish the Trust's investment objectives. The kinds of investments and the
way they are managed depends on what is happening in the economy and the
financial marketplaces. Each of the Accounts, as a shareholder, has an ownership
in the Trust's investments. The Trust also offers to buy back (redeem) shares of
the Trust from the Accounts at any time at net asset value.

Jackson National Financial Services, Inc. ("JNFSI"), a wholly owned
subsidiary of Jackson National Life Insurance Company, serves as investment
adviser for all the Series of the Trust. Janus Capital Corporation serves as
sub-adviser for the JNL Capital Growth, JNL Aggressive Growth and JNL Global
Equities Series; Fred Alger Management, Inc. serves as sub-adviser for the
JNL/Alger Growth Series; Alliance Capital Management L.P. serves as sub-adviser
for the JNL/Alliance Growth Series; Eagle Asset Management, Inc. serves as
sub-adviser for the JNL/Eagle Core Equity Series and JNL/Eagle SmallCap Equity
Series; J.P. Morgan Investment Management Inc. serves as sub-adviser for the
JNL/JPM International & Emerging Markets Series; Pacific Investment Management
Company serves as sub-adviser for the JNL/PIMCO Total Return Bond Series; Putnam
Investment Management, Inc. serves as sub-adviser for the JNL/Putnam Growth and
JNL/Putnam Value Equity Series; Goldman Sachs Asset Management serves as
sub-adviser for the Goldman Sachs/JNL Growth & Income Series; Lazard Asset
Management serves as sub-adviser for the Lazard/JNL Small Cap Value and
Lazard/JNL Mid Cap Value Series; PPM America, Inc. serves as sub-adviser for the
PPM America/JNL Balanced, PPM America/JNL High Yield Bond and PPM America/JNL
Money Market Series; Salomon Brothers Asset Management Inc serves as sub-adviser
for the Salomon Brothers/JNL Balanced, Salomon Brothers/JNL Global Bond, Salomon
Brothers/JNL High Yield Bond and Salomon Brothers/JNL U.S. Government & Quality
Bond Series; T. Rowe Price Associates, Inc. serves as sub-adviser for the T.
Rowe Price/JNL Established Growth and T. Rowe Price/JNL Mid-Cap Growth Series;
and Rowe Price-Fleming International, Inc. serves as sub-adviser for the T. Rowe
Price/JNL International Equity Investment Series.

Reference is made herein to ratings assigned to certain types of securities
by Standard & Poor's Ratings Group ("S&P"), Moody's Investors Service, Inc.
("Moody's"), Fitch Investors Service, Inc. ("Fitch"), Duff & Phelps, Inc. ("Duff
& Phelps") and Thomson BankWatch, Inc., recognized independent securities
ratings institutions. A description of the ratings categories assigned by S&P
and Moody's is contained in Appendix A.

14
<PAGE> 19

DIVERSIFICATION

Each of the Series except the JNL Capital Growth, JNL Aggressive Growth,
Lazard/JNL Small Cap Value and Lazard/JNL Mid Cap Value Series qualifies as a
diversified investment company under the Investment Company Act of 1940 (the
"1940 Act"). As a fundamental policy, a diversified fund will not purchase a
security of any issuer (except cash items and U.S. Government securities) if a)
it would cause the Series to own more than 10% of the outstanding voting
securities of that issuer or b) it would cause the Series' holdings of that
issuer to amount to more than 5% of the Series' total assets (as applied in each
case to 75% of the Series' total assets). As a fundamental policy, the JNL
Capital Growth, JNL Aggressive Growth, Lazard/JNL Small Cap Value and Lazard/JNL
Mid Cap Value Series also will not purchase more than 10% of the outstanding
voting securities of any issuer; however, only 50% of total assets are subject
to the 5% test. The JNL Capital Growth, JNL Aggressive Growth, Lazard/JNL Small
Cap Value and Lazard/JNL Mid Cap Value Series may invest up to 50% of total
assets in the securities of as few as two issuers (not to exceed 25% in any one
issuer) while the other Series may invest up to 25% of their total assets in the
securities of one issuer. Neither the JNL Capital Growth nor the JNL Aggressive
Growth Series anticipates concentrating its holdings in so few issuers unless
its sub-adviser believes a security has the potential for substantial capital
appreciation consistent with a Series' investment policies and goals. To the
extent that any Series invests more than 5% of its assets in a particular
issuer, its exposure to credit risks and/or market risks associated with that
issuer increases. As an additional fundamental policy, no Series will invest
more than 25% of its total assets in any particular industry (other than U.S.
Government securities), except that the PPM America/JNL Money Market Series may
invest a greater percent of its assets in the domestic banking industry.

INTERNAL REVENUE SERVICE (IRS) LIMITATIONS

In addition to the diversification requirements stated above, each Series
intends to comply with the diversification requirements currently imposed by the
IRS on separate accounts of insurance companies as a condition of maintaining
the tax-deferred status of variable contracts. More specific information may be
contained in the participating insurance company's separate account prospectus.

- --------------------------------------------------------------------------------
JNL AGGRESSIVE GROWTH SERIES
- --------------------------------------------------------------------------------

The investment objective of the JNL Aggressive Growth Series is long-term
growth of capital. It is a non-diversified Series that pursues its investment
objective by investing primarily in common stocks of issuers of any size,
including larger, well-established companies and smaller, emerging growth
companies. The smaller or newer a company is, the more likely it may be to
suffer more significant losses as well as realize more substantial growth than
larger or more established issuers.

- --------------------------------------------------------------------------------
JNL CAPITAL GROWTH SERIES
- --------------------------------------------------------------------------------

The investment objective of the JNL Capital Growth Series is long-term
growth of capital in a manner consistent with the preservation of capital. It is
a non-diversified Series that pursues its investment objective by normally
investing at least 50% of its equity assets in securities issued by medium-sized
companies. Medium-sized companies are those whose market capitalizations fall
within the range of companies in the S&P MidCap 400 Index (the "MidCap Index").
Companies whose capitalization falls outside this range after the Series'
initial purchase continue to be considered medium-sized companies for the
purpose of this policy.

15
<PAGE> 20

As of December 30, 1996, the MidCap Index included companies with
capitalizations between approximately $192 million and $6.5 billion. The range
of the MidCap Index is expected to change on a regular basis. Subject to the
above policy, the Series may also invest in smaller or larger issuers.

- --------------------------------------------------------------------------------
JNL GLOBAL EQUITIES SERIES
- --------------------------------------------------------------------------------

The investment objective of the JNL Global Equities Series is long-term
growth of capital in a manner consistent with the preservation of capital. It is
a diversified Series that pursues its investment objective primarily through
investments in common stocks of foreign and domestic issuers. The Series is
permitted to invest on a worldwide basis in companies and other organizations of
any size, regardless of country of organization or place of principal business
activity, as well as domestic and foreign governments, government agencies and
other governmental entities. The Series normally invests in securities of
issuers from at least five different countries, including the United States,
although the Series may at times invest all of its assets in fewer than five
countries. The JNL Global Equities Series may not be suitable for investors that
are not able to bear the additional risks associated with the Series' more
extensive holdings of foreign securities.

16
<PAGE> 21

- --------------------------------------------------------------------------------
JNL AGGRESSIVE GROWTH SERIES, JNL CAPITAL GROWTH SERIES,
JNL GLOBAL EQUITIES SERIES
- --------------------------------------------------------------------------------

Each of the JNL Aggressive Growth, JNL Capital Growth, and JNL Global
Equities Series invests substantially all of its assets in common stocks when
its sub-adviser believes that the relevant market environment favors profitable
investing in those securities. Common stock investments are selected in
industries and companies that the sub-adviser believes are experiencing
favorable demand for their products and services, and which operate in a
favorable competitive environment and regulatory climate. The sub-adviser's
analysis and selection process focuses on stocks with earnings growth potential
that may not be recognized by the market. Such securities are selected primarily
for their capital growth potential; investment income is not a consideration.
These selection criteria apply equally to stocks of foreign issuers. In
addition, factors such as expected levels of inflation, government policies
influencing business conditions, the outlook for currency relationships, and
prospects for relative economic growth among countries, regions or geographic
areas may warrant greater consideration in selecting foreign stocks.

Each of the JNL Aggressive Growth, JNL Capital Growth and JNL Global
Equities Series invests primarily in common stocks of foreign and domestic
companies. Each Series may invest to a lesser degree in other types of
securities, including preferred stock, warrants, convertible securities and debt
securities. Debt securities that the Series may purchase include corporate bonds
and debentures (not to exceed 35% of net assets in high-yield/high-risk bonds)
(See "Investment Risks -- High Yield/High Risk Bonds"); government securities;
mortgage- and asset-backed securities (not to exceed 25% of assets); zero coupon
bonds (not to exceed 10% of assets); indexed/structured notes; high-grade
commercial paper; certificates of deposit; and repurchase agreements. Such
securities may offer growth potential because of anticipated changes in interest
rates, credit standing, currency relationships or other factors. Each of these
Series may also invest in short-term debt securities as a means of receiving a
return on idle cash.

When the Series' sub-adviser believes that market conditions are not
favorable for profitable investing or when the sub-adviser is otherwise unable
to locate favorable investment opportunities, the Series' investments may be
hedged to a greater degree and/or its cash or similar investments may increase.
In other words, the Series do not always stay fully invested in stocks and
bonds. Cash or similar investments are residual -- they represent the assets
that remain after the sub-adviser has committed available assets to desirable
investment opportunities. When a Series' cash position increases, it may not
participate in stock market advances or declines to the extent that it would if
it remained more fully invested in common stocks.

Although JNL Global Equities Series is committed to foreign investing, each
of these Series may invest without limit in equity and debt securities of
foreign issuers. The Series may invest directly in foreign securities
denominated in a foreign currency and not publicly traded in the United States.
Other ways of investing in foreign securities include depositary receipts or
shares, and passive foreign investment companies. Each of these Series may use
futures, options and other derivatives for hedging purposes or as a means of
enhancing return. Some securities that these Series may purchase may be issued
on a when-issued, delayed delivery or forward commitment basis.

Each of JNL Aggressive Growth, JNL Capital Growth and JNL Global Equities
Series may invest in "special situations" from time to time. A special situation
arises when, in the opinion of the sub-adviser, the securities of a particular
issuer will be recognized and appreciate in value due to a specific development
with respect to that issuer. Developments creating special situations might
include, among others, a new product or process, a technological breakthrough, a
management change or other extraordinary corporate event, or differences in
market supply of and demand for the security.

17
<PAGE> 22

Investment in special situations may carry an additional risk of loss in the
event that the anticipated development does not occur or does not attract the
expected attention. The impact of this strategy on a Series will depend on the
Series' size and the extent of its holdings of special situation issuers
relative to total net assets.

- --------------------------------------------------------------------------------
JNL/ALGER GROWTH SERIES
- --------------------------------------------------------------------------------

The investment objective of the JNL/Alger Growth Series is long-term
capital appreciation. It is a diversified Series that seeks to achieve its
objective by investing in equity securities, such as common or preferred stocks
that are listed on a national securities exchange, or securities convertible
into or exchangeable for equity securities, including warrants and rights.
Except during temporary defensive periods, the Series invests at least 85
percent of its net assets in equity securities and at least 65 percent of its
total assets in equity securities of companies that, at the time of purchase of
the securities, have total market capitalization of $1 billion or greater.

It is anticipated that the Series will invest primarily in companies whose
securities are traded on domestic stock exchanges or in the over-the-counter
market. These companies may still be in the developmental stage, may be older
companies that appear to be entering a new stage of growth progress owing to
factors such

as management changes or development of new technology, products or markets or
may be companies providing products or services with a high unit volume growth
rate. The Series may invest up to 35 percent of its total assets in equity
securities of companies that, at the time of purchase, have total market
capitalization of less than $1 billion. In order to afford the Series the
flexibility to take advantage of new opportunities for investments in accordance
with its investment objective, the Series may hold up to 15 percent of its net
assets in money market instruments and repurchase agreements. During temporary
defensive periods, the Series may invest up to 100% of its assets in debt
securities, money market instruments and/or repurchase agreements. The Portfolio
may also purchase restricted securities (subject to a limit on all illiquid
securities of 10 percent of net assets), lend its securities and enter into
"short sales against the box." (See "Common Types of Securities and Management
Practices").

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

JNL/ALLIANCE GROWTH SERIES

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

The investment objective of the JNL/Alliance Growth Series is to seek
long-term growth of capital. Whatever current income is generated by the Series
is incidental to the objective of capital growth. It is a diversified Series
that seeks to achieve its objective by investing primarily in common stocks or
securities with common stock characteristics. Securities designated as having
"common stock" characteristics include, but are not limited to, securities
convertible into or exchangeable for common stock. The potential for
appreciation of capital is the basis for investment decisions. The Series'
sub-adviser considers the factors that it believes affect potential for capital
appreciation, including an issuer's current and projected revenue, earnings,
cash flow and assets, as well as general market conditions.

When the outlook for common stocks is not considered promising, for
temporary defensive purposes, a substantial portion of the assets may be
invested in securities of the U.S. Government, its agencies and
instrumentalities, cash and cash equivalents (such as commercial bank and
savings association obligations, commercial paper and short-term corporate bonds
and notes) and repurchase agreements.

Because the securities purchased by this Series in pursuing its investment
objective are selected for

18
<PAGE> 23

growth potential rather than production of income, the market values of such
securities (and therefore, to a large extent, the net asset value per share of
the Series) will tend to be more volatile in response to market changes than
they would be if income-producing securities were sought for investment by the
Series. Up to 25% of the Series' total assets may be invested in foreign
securities. (See "Investment Risks -- Foreign Securities").

The Series may write covered call and put options on any securities in
which it may invest. The Series may also write call and put options on any
securities index composed of securities in which it may invest. The Series may
purchase put and call options on any securities in which it may invest or
options on any securities index composed of securities in which it may invest.
The Series may purchase and write covered options on the yield "spread," or
yield differential between two securities. Such transactions are referred to as
"yield curve" options. The Series may purchase and sell options that are traded
(i) on U.S. exchanges, (ii) on foreign exchanges and (iii) over-the-counter with
broker-dealers who make markets in these options. The Series may engage in
futures transactions and options thereon on securities, securities indices,
foreign currencies and other financial instruments and indices. The Series may
engage in futures transactions for hedging purposes or, subject to regulations
promulgated by the Commodity Futures Trading Commission, for non-hedging
purposes.

The Series may hold a portion of its assets in foreign currencies and enter
into forward foreign currency exchange contracts. The Series may also purchase
and sell exchange-traded futures contracts relating to foreign currency and
purchase and sell put and call options on currencies and futures contracts. A
significant portion of the Series' currency transactions will be
over-the-counter transactions. The Series may enter into forward foreign
currency exchange contracts to reduce the risks of fluctuations in exchange
rates. The Series may purchase and write put and call options on currencies for
the purpose of protecting against declines in the U.S. dollar value of foreign
portfolio securities and against increases in the U.S. dollar cost of foreign
securities to be acquired. The Series will not speculate in currency contracts
or options. The Series may use currency contracts and options to cross-hedge.

- --------------------------------------------------------------------------------
JNL/EAGLE CORE EQUITY SERIES
- --------------------------------------------------------------------------------

The investment objective of the JNL/Eagle Core Equity Series is long-term
capital appreciation and, secondarily, current income. It is a diversified
Series that seeks to achieve its objective by investing in common stocks that
the sub-adviser believes meet the criteria for one of three individual equity
strategies. The investment strategies which the sub-adviser utilizes to pursue
the Series' objective are the growth equity strategy, the value equity strategy
and the equity income strategy. In pursuing the growth equity strategy, the sub-
adviser will invest in securities which it believes have sufficient growth
potential to offer above-average long-term capital appreciation. Securities
which meet the criteria for the growth equity strategy will have at least one of
the following characteristics:

- expected earnings-per-share growth greater than the average of the S&P
500 Composite Stock Price Index ("S&P 500"); or

- return on equity greater than the average of the S&P 500.

In pursuing the value equity strategy, the sub-adviser will invest in
securities which it believes indicate above-average financial soundness and high
intrinsic value relative to price. Securities which meet the criteria for the
value equity strategy will have at least one of the following characteristics at
the time of purchase:

- price-to-earnings ratio or price-to-book value ratio of less than or
approximately equal to 75% of that of the broader equity market (as
measured by the S&P 500); or

- yield that approximates at least 50% of the prevailing average yield to
maturity of the long-term U.S. Government bond, as measured by the Lehman
Brothers Long Treasury Bond

19
<PAGE> 24

Index (or other similar index if this index is not available); or

- per share going concern value (as estimated by the sub-adviser) that
exceeds book value and market value; or

- long-term debt below, or approximately equivalent to, tangible net worth.

In pursuing the equity income strategy, the sub-adviser will invest in
income-producing securities.

Under normal market conditions, at least 65% of the Series' total assets
will be invested in U.S. common stocks. With respect to the other 35% of its
total assets, the Series may invest in income-producing securities that the
sub-adviser believes are consistent with the Series' investment objective,
common stocks of foreign issuers, American Depositary Receipts, foreign currency
transactions with respect to underlying common stock, preferred stock,
convertible securities, corporate debt obligations, obligations of the U.S.
Government, its agencies and instrumentalities, repurchase agreements, money
market instruments, real estate investment trusts, futures contracts, options,
rights or warrants to subscribe for or purchase common stocks, and securities
that track the performance of a broad-based securities index, such as S&P
Depository Receipts. The Series may also loan its portfolio securities and
engage in short sales "against the box."

The Series will emphasize investments in securities rated investment grade
and unrated securities deemed by the sub-adviser to be of comparable quality,
but may invest up to 35% of its assets in securities rated below investment
grade and unrated securities deemed by the sub-adviser to be of comparable
quality. The Series, at the discretion of the sub-adviser, may retain a security
that has been downgraded below the initial investment criteria. (See "Investment
Risks -- High Yield/High Risk Bonds"). The Series may invest up to 25% of its
total assets in securities of foreign issuers, including American Depositary
Receipts. (See "Investment Risks -- Foreign Securities").

For temporary defensive purposes during anticipated periods of general
market decline, the Series may invest up to 100% of its assets in money market
instruments, including securities issued or guaranteed by the U.S. Government,
its agencies or instrumentalities and repurchase agreements secured thereby,
bank certificates of deposit and banker's acceptances issued by banks having net
assets of at least $1 billion as of the end of their most recent fiscal year,
high grade commercial paper, and other long- and short-term debt instruments
that are rated A or higher by Moody's or S&P. It is impossible to predict when,
or for how long, such alternative strategies may be utilized.

In selecting common stocks to pursue the growth equity strategy, the
sub-adviser makes selections in part based on its opinion regarding the
sustainability of the company's competitive advantage in the marketplace as well
as the sub-adviser's opinion of the company's management team. The sub-adviser
will invest in companies that, in its opinion, will have long-term returns
greater than the average for the S&P 500. The sub-adviser normally will
reevaluate a security if it underperforms the S&P 500 by 15% or more during a
three-month period. At that time, a decision will be made to sell or hold the
security. If a particular stock appreciates to over 5% of the total assets of
the portfolio, the sub-adviser generally will reduce the position to less than
5%. If the stock price appreciates to a level that is not sustainable in the
opinion of the sub-adviser, the position generally will be sold to realize the
existing profits and avoid a potential price correction. If the sub-adviser
identifies a security that it considers to be a better investment than a current
holding, the sub-adviser generally will consider selling the current holding to
add the new security.

In selecting common stocks to pursue the value equity strategy, the
sub-adviser screens a universe of over 2500 companies. From this universe, the
sub-adviser anticipates that only a few hundred companies will meet one or more
of these investment criteria. Each of the companies is analyzed individually in
terms of its past and present competitive position within its perspective
industry. The sub-adviser makes selections based on its projections of the
companies' growth in earnings and dividends, earnings momentum, and
undervaluation based on a dividend discount model. The sub-adviser develops
target prices and value ranges from this analysis and makes portfolio selection
from among the top-rated securities. The sub-adviser periodically monitors the
Series' holdings of securities

20
<PAGE> 25

meeting these criteria to assure that they continue to meet the selection
criteria. A security normally will be sold once it reaches its target price,
when negative changes occur with respect to the company or its industry, or when
there is a significant change in the security with respect to one or more of the
four selection criteria listed above. The Series may at times continue to hold
equity securities that no longer meet the criteria but that the sub-adviser
deems suitable investments in view of the Series' investment objective.

- --------------------------------------------------------------------------------
JNL/EAGLE SMALLCAP EQUITY SERIES
- --------------------------------------------------------------------------------

The investment objective of the JNL/Eagle SmallCap Equity Series is
long-term capital appreciation. It is a diversified Series that seeks to achieve
its objective by investing primarily in the equity securities of companies, most
of which have a total market capitalization of less than $1 billion ("small
capitalization companies"). Market capitalization is the total value of a
company's outstanding common stock. The Series will invest in securities of
companies that appear to the sub-adviser to be undervalued in relation to their
long-term earning power or the asset value of their issuers and that have
significant future growth potential. Securities may be undervalued because of
many factors, including market decline, poor economic conditions, tax-loss
selling or actual or anticipated unfavorable developments affecting the issuer
of the security. Any or all of these factors may provide buying opportunities at
attractive prices relative to the long-term prospects for the companies in
question.

The Series invests primarily in common stocks, but also may invest in
preferred stocks, investment grade securities convertible into common stocks,
and warrants. The Series may purchase securities traded on recognized securities
exchanges and in the over-the-counter market. The Series normally invests at
least 65% of its total assets in the equity securities of companies each of
which, at the time of purchase, has a total market capitalization of less than
$1 billion. The Series may invest its remaining assets in American Depositary
Receipts, U.S. Government securities, repurchase agreements or other short-term
money market instruments.

The Series will emphasize investments in securities rated investment grade
and unrated securities deemed by the sub-adviser to be of comparable quality,
but may invest up to 5% of its assets in securities rated below investment grade
and unrated securities deemed by the sub-adviser to be of comparable quality.
The Series, at the discretion of the sub-adviser, may retain a security that has
been downgraded below the initial investment criteria. (See "Investment Risks --
High Yield/High Risk Bonds").

The sub-adviser currently believes that investments in small capitalization
companies may offer greater opportunities for growth of capital than investments
in larger, more established companies. Investing in smaller, newer issuers
generally involves greater risks than investing in larger, more established
issuers. Companies in which the Series is likely to invest may have limited
product lines, markets or financial resources and may be subject to more abrupt
or erratic market movements than securities of larger, more established
companies or the market averages in general. In addition, many small
capitalization companies may be in the early stages of development. Accordingly,
an investment in the Series may not be appropriate for all investors.

For temporary defensive purposes during anticipated periods of general
market decline, the Series may invest up to 100% of its assets in money market
instruments, including securities issued or guaranteed by the U.S. Government,
its agencies or instrumentalities and repurchase agreements secured thereby, as
well as bank certificates of deposit and banker's acceptances issued by banks
having net assets of at least $1 billion as of the end of their most recent
fiscal year, high-grade commercial paper, and other long- and short-term debt
instruments that are rated A or higher by Moody's or S&P. It is impossible to
predict when, or for how long, such alternative strategies may be utilized.

21
<PAGE> 26

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

JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES

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

The investment objective of the JNL/JPM International & Emerging Markets
Series is to provide high total return from a portfolio of equity securities of
foreign companies in developed and, to a lesser extent, developing markets.
Total return consists of realized and unrealized capital gains and losses plus
income. It is a diversified Series that seeks to achieve its investment
objective by investing primarily in common stocks and other equity securities of
non-U.S. companies in developed markets and, to a lesser extent, companies in
developing markets.

In normal circumstances, substantially all and at least 65% of the value of
the Series' total assets are invested in equity securities of foreign issuers.
Equity securities include common stocks, preferred stocks, warrants, rights,
convertible securities, trust certificates, limited partnership interests and
equity participations. The Series' assets are invested in securities of issuers
located in at least three foreign countries. The Series' equity investments may
or may not pay dividends or carry voting rights. The Series' primary equity
investments are common stocks of established companies based in developed
countries outside the United States. However, the Series will also invest in
equity securities of issuers located in developing countries or "emerging
markets." The Series invests in securities listed on foreign or domestic
securities exchanges and securities traded in foreign or domestic
over-the-counter markets, and may invest in certain restricted or unlisted
securities.

The sub-adviser considers "emerging markets" to be any country which is
generally considered to be an emerging or developing country by the World Bank,
the International Finance Corporation, the United Nations or its authorities.
The Series will focus its emerging market investments in those countries which
it believes have strongly developing economies and in which the markets are
becoming more sophisticated. An issuer in an emerging market is one that: (i)
has its principal securities trading market in an emerging market country; (ii)
is organized under the laws of an emerging market; (iii) derives 50% or more of
its total revenue from either goods produced, sales made or services performed
in emerging markets; or (iv) has at least 50% of its assets located in emerging
markets.

The Series' investments are primarily quoted in foreign currencies but it
may also invest in securities quoted in the U.S. dollar or multinational
currency units such as the ECU. Through the use of forward foreign currency
exchange contracts, the sub-adviser actively manages the Series' currency
exposure in developed countries.

The Series may also invest in money market instruments denominated in U.S.
dollars and other currencies, purchase securities on a when-issued or delayed
delivery basis, enter into repurchase and reverse repurchase agreements, loan
its portfolio securities and purchase certain privately placed securities.

The Series is permitted to invest in money market instruments denominated
in U.S. dollars and other currencies although it intends to stay invested in
equity securities to the extent practical in light of its objective. Under
normal circumstances, the Series will purchase money market instruments to
invest temporary cash balances or to maintain liquidity to meet redemptions.
However, the Series may also invest in money market instruments without
limitation as a temporary defensive measure taken in the sub-adviser's judgment
during, or in anticipation of, adverse market conditions.

The Series may purchase and sell exchange traded and over-the-counter put
and call options on securities and securities indexes, purchase and sell futures
contracts on securities and securities indexes and purchase and sell put and
call options on futures contracts on securities and securities indexes.

The Series may invest up to 10% of its total assets in shares of investment
companies and up to 5% of its total assets in any one investment company as long
as that investment does not represent more than 3% of the total voting stock of
the acquired investment company. Investments in the securities of other
investment companies may involve duplication of advisory fees and other
expenses. Certain emerging markets are closed to

22
<PAGE> 27

investment by foreigners. The Series may be able to
invest in issuers in certain emerging markets primarily through specifically
authorized investment funds.

The Series seeks to achieve its investment objective through a combination
of country allocation, stock selection and currency management. The sub-adviser
uses a disciplined portfolio construction process to seek to enhance returns and
reduce volatility in the market value of the Series. To allocate the Series
within developed and developing markets, the sub-adviser uses fundamental
research, quantitative valuation techniques and experienced judgment to identify
those countries whose equity prices appear most attractive relative to future
earnings prospects. Based on this analysis, the sub-adviser allocates the
Series' assets among countries, emphasizing those countries with the highest
expected returns consistent with overall portfolio liquidity. Under normal
circumstances, the sub-adviser expects that approximately 75% of the value of
the Series' equity investments will be in companies in developed markets and 25%
in companies in emerging markets. The sub-adviser may vary this allocation in a
manner consistent with the Series' investment objective and current market
conditions. (See "Investment Risks -- Foreign Securities" and "Investment Risks
- --Emerging Markets").

Using a variety of quantitative valuation techniques and based on analysts'
industry expertise, issuers in each country are ranked within industrial sectors
according to their relative value. Based on this valuation, the sub-adviser
selects the issuers which appear the most attractive for the Series. The Series
will be diversified across industrial sectors in each country.

The sub-adviser manages the Series actively in pursuit of its investment
objective. The Series does not expect to trade in securities for short-term
profits; however, when circumstances warrant, securities may be sold without
regard to the length of time held. To the extent the Series engages in
short-term trading, it may incur increased transaction costs.

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

JNL/PIMCO TOTAL RETURN BOND SERIES

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

The investment objective of the JNL/PIMCO Total Return Bond Series is to
seek to realize maximum total return, consistent with preservation of capital
and prudent investment management. It is a diversified Series that seeks to
achieve its investment objective by investing under normal circumstances at
least 65% of its assets in a diversified portfolio of fixed income securities of
varying maturities. The average portfolio duration of this Series will normally
vary within a three- to six-year time frame based on the sub-adviser's forecast
for interest rates. The Series may invest up to 10% of its assets in fixed
income securities that are rated below investment grade but rated B or higher by
Moody's or S&P (or, if unrated, determined by the sub-adviser to be of
comparable quality). The Series may also invest up to 20% of its assets in
securities denominated in foreign currencies, and may invest beyond this limit
in U.S. dollar-denominated securities of foreign issuers. The Series will
concentrate its foreign investments in securities of issuers based in developed
countries, but may invest up to 10% of its assets in securities of issuers based
in emerging market countries. Portfolio holdings will be concentrated in areas
of the bond market (based on quality, sector, coupon or maturity) which the
sub-adviser believes to be relatively undervalued. (See "Investment Risks --
Foreign Securities" and "Investment Risks -- Emerging Markets").

The Series may invest in convertible securities. It may invest in fixed-
and floating-rate loans arranged through private negotiations between an issuer
of debt instruments and one or more financial institutions. Generally, the
Series' investments in loans are expected to take the form of loan
participations and assignments of portions of loans from third parties. The
Series may engage in credit spread trades and invest in floating rate debt
instruments. The Series may also invest in inverse floating rate debt
instruments. The Series will not invest more than 5% of its net assets in any
combination of inverse floater, interest only, or principal only securities.

23
<PAGE> 28

The Series may invest all of its assets in mortgage- or
other asset-backed securities. The Series may invest in repurchase agreements,
reverse repurchase agreements, dollar rolls and may purchase or sell securities
on a when-issued, delayed delivery, or forward commitment basis.

The Series may invest in Brady Bonds and may invest in sovereign debt
(other than Brady Bonds) issued by governments, their agencies or
instrumentalities, or other government-related entities located in emerging
market countries. The Series may buy and sell foreign currencies on a spot and
forward basis to reduce the risks of adverse changes in foreign exchange rates.

The Series may invest in options on foreign currencies and foreign currency
futures and options thereon. The Series also may invest in foreign currency
exchange-related securities, such as foreign currency warrants and other
instruments whose return is linked to foreign currency exchange rates. The
Series will use these techniques to hedge at least 75% of its exposure to
foreign currency.

The Series may purchase and write call and put options on securities,
securities indexes and foreign currencies, and enter into futures contracts and
use options on futures contracts. The Series also may enter into swap agreements
with respect to foreign currencies, interest rates, and securities indexes. The
Series may use these techniques to hedge against changes in interest rates,
foreign currency exchange rates or securities prices or as part of its overall
investment strategies. The Series may also purchase and sell options relating to
foreign currencies for purposes of increasing exposure to a foreign currency or
to shift exposure to foreign currency fluctuations from one country to another.
The Series will not enter into a swap agreement with any single party if the net
amount owed or to be received under existing contracts with that party would
exceed 5% of the Series' assets.

The Series does not expect to trade in securities for short-term profits;
however, when circumstances warrant, securities may be sold without regard to
the length of time held. To the extent the Series engages in short-term trading,
it may incur increased transaction costs.

- --------------------------------------------------------------------------------
JNL/PUTNAM GROWTH SERIES
- --------------------------------------------------------------------------------

The investment objective of the JNL/Putnam Growth Series is to seek
long-term capital growth. It is a diversified Series that pursues its investment
objective by retaining maximum flexibility in the management of the Series
consisting mainly of common stocks. Since income is not an objective, any income
generated by the investment of the Series' assets will be incidental to its
objective.

The Series intends to invest primarily in the common stocks of companies
believed by the sub-adviser to have opportunities for capital growth. However,
since no one class or type of security at all times necessarily affords the
greatest promise for capital appreciation, the Series may invest any amount or
proportion of its assets in any class or type of security believed by the sub-
adviser to offer potential for capital appreciation over both the intermediate
and long term. Normally, of course, its investment will consist largely of
common stocks selected for the promise they offer of appreciation of capital.
However, the Series may also invest in preferred stocks, bonds, convertible
preferred stocks and convertible debentures if, in the judgment of the
sub-adviser, the investment would further its investment objectives. The Series
may invest up to 20% of its net assets in foreign securities. The Series may
also engage in certain options transactions and enter into financial futures
contracts and related options. Each security held will be monitored to determine
whether it is contributing to the basic objective of long-term growth of
capital.

The sub-adviser believes that a portfolio of such securities provides the
most effective way to obtain capital appreciation, but when, for temporary
defensive purposes (as when market conditions for growth stocks are adverse),
other types of investments appear advantageous on the basis of combined
considerations of risk

24
<PAGE> 29

and the protection of capital values, investments may be made in fixed income
securities with or without warrants or conversion features. In addition, for
such temporary defensive purposes, the Series may pursue a policy of retaining
cash or investing part or all of its assets in cash equivalents.

To the extent that the Series holds bonds, it may be negatively affected by
adverse interest rate movements and credit quality. Generally, when interest
rates rise it may be expected that the value of bonds may decrease.

- --------------------------------------------------------------------------------
JNL/PUTNAM VALUE EQUITY SERIES
- --------------------------------------------------------------------------------

The investment objective of the JNL/Putnam Value Equity Series is capital
growth, with income as a secondary objective by investing primarily in common
stocks which the sub-adviser believes to be undervalued relative to underlying
asset value or earnings potential at the time of purchase. It is a diversified
Series that seeks superior market cycle total returns. The Series invests
primarily in the common stocks of large capitalization companies mainly
domiciled in the United States. Common stocks for this purpose include common
stocks and equivalents, such as securities convertible into common stocks and
securities having common stock characteristics, such as rights and warrants to
purchase common stocks. Under normal circumstances, the Series will invest at
least 65% of the value of its total assets in equity securities.

Companies considered attractive generally will have the following
characteristics: 1) stocks typically will have distinctly above average dividend
yields, and 2) the market prices of the stocks will be undervalued relative to
the normal earning power of the company. The thrust of this approach is to seek
investments where current investor enthusiasm is low, as reflected in their
valuations. Exposure is reduced when the investment community's perceptions
improve and the company approaches fair valuation.

The sub-adviser takes a long-term investment approach by placing a strong
emphasis on its ability to determine attractive values and does not try to
determine short-term changes in the general market level. It is anticipated that
the annual turnover rate of the Series will not exceed 100% in normal
circumstances. The Series may invest up to 25% of its total assets in the common
stocks of foreign issuers, including American Depositary Receipts.

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

GOLDMAN SACHS/JNL GROWTH & INCOME SERIES

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

The investment objectives of the Goldman Sachs/JNL Growth & Income Series
are to provide investors with long-term growth of capital and growth of income.
It is a diversified Series that invests, under normal circumstances, at least
65% of its total assets in equity securities that the sub-adviser considers to
have favorable prospects for capital appreciation and/or dividend-paying
ability.

The Series may invest up to 35% of its total assets in fixed income
securities that, in the opinion of the sub-adviser, offer the potential to
further the Series' investment objectives. In addition, although the Series will
invest primarily in publicly traded U.S. securities, it may invest up to 25% of
its total assets in foreign securities, including securities of issuers in
emerging markets and countries and securities quoted in foreign currencies. (See
"Investment Risks -- Foreign Securities" and "Investment Risks -- Emerging
Markets").

The Series is managed using a value oriented approach. The sub-adviser
evaluates securities using fundamental analysis and intends to purchase equity
securities that are, in its view, underpriced relative to a

25
<PAGE> 30

combination of such companies' long-term earnings prospects, growth rate, free
cash flow and/or dividend-paying ability. Consideration will be given to the
business quality of the issuer. Factors positively affecting the sub-adviser's
view of that quality include the competitiveness and degree of regulation in the
markets in which the company operates, the existence of a management team with a
record of success, the position of the company in the markets in which it
operates, the level of the company's financial leverage and the sustainable
return on capital invested in the business. The Series may also purchase
securities of companies that have experienced difficulties and that, in the
opinion of the sub-adviser, are available at attractive prices.

In choosing the Series' securities, the sub-adviser utilizes first-hand
fundamental research, including visiting company facilities to assess operations
and to meet decision-makers. The sub-adviser may also use macro analysis of
numerous economic and valuation variables to anticipate changes in company
earnings and the overall investment climate. The sub-adviser is able to draw on
the research and market expertise of its affiliates as well as information
provided by other securities dealers. Equity securities in the Series' portfolio
will generally be sold when the sub-adviser believes that the market price fully
reflects or exceeds the securities' fundamental valuation or when other more
attractive investments are identified.

The Series may invest in common stocks, preferred stocks, U.S. Government
securities, convertible debt obligations, convertible preferred stocks,
mortgage- and asset-backed securities, corporate debt obligations, structured
securities, limited liability companies, equity interests in trusts,
partnerships, joint ventures and similar enterprises, interests in real estate
investment trusts, warrants and stock purchase rights. The Series may purchase
when-issued securities and may purchase securities on a forward commitment
basis.

The Series may invest in securities of foreign issuers, including sponsored
and unsponsored American Depositary Receipts, Global Depositary Receipts and
European Depositary Receipts or other similar instruments representing
securities of foreign issuers. The Series may, to the extent it invests in
foreign securities, purchase or sell forward foreign currency exchange contracts
for hedging purposes and to seek to protect against anticipated changes in
future foreign currency exchange rates. The Series may hold foreign currency
received in connection with investments in foreign securities when, in the
judgment of the sub-adviser, it would be beneficial to convert such currency
into U.S. dollars at a later date, based on anticipated changes in the relevant
exchange rate.

The Series may invest in debt securities rated at least investment grade at
the time of investment and may invest up to 10% of its total assets in debt
securities which are unrated or rated in the lowest rating categories by S&P or
Moody's, including securities rated D by S&P or Moody's. The lower-rated bonds
in which the Series may invest are commonly referred to as "junk bonds." (See
"Investment Risks -- High Yield/High Risk Bonds").

The Series may write (sell) covered call and put options and purchase call
and put options on any securities in which it may invest or on any securities
index composed of securities in which it may invest. The Series may, to the
extent it invests in foreign securities, purchase and sell call and put options
on foreign currencies for the purpose of protecting against declines in the U.S.
dollar value of foreign portfolio securities and anticipated dividends on such
securities and against increases in the U.S. dollar cost of foreign securities
to be acquired. The Series may purchase and sell various kinds of futures
contracts, and purchase and write call and put options on any of such futures
contracts to seek to increase total return or to hedge against changes in
interest rates, securities prices or currency exchange rates. The Series may
also enter into closing purchase and sale transactions with respect to any such
contracts and options. The futures contracts may be based on various securities,
foreign currencies, securities indices and other financial instruments and
indices.

The Series may, for temporary defensive purposes, invest up to 100% of its
total assets in U.S. Government securities, repurchase agreements collateralized
by U.S. Government securities, commercial paper rated at least A-2 by S&P or P-2
by Moody's, certificates of deposit, bankers' acceptances, repurchase
agreements, non-convertible preferred stocks, non-convertible corporate bonds
with a remaining maturity of less than one year

26
<PAGE> 31

or, subject to certain tax restrictions, foreign currencies. When the Series'
assets are invested in such instruments, the Series may not be achieving its
investment objective.

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

LAZARD/JNL SMALL CAP VALUE SERIES

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

The investment objective of the Lazard/JNL Small Cap Value Series is to
seek capital appreciation. It is a non-diversified Series that seeks to achieve
its investment objective through investing primarily in equity securities of
United States companies with market capitalizations under $1 billion that are
believed by the sub-adviser to be inexpensively priced relative to the return on
total capital or equity. The equity securities in which the Series may invest
include common stocks, preferred stocks, securities convertible into or
exchangeable for common stocks, rights and warrants listed on national or
regional securities exchanges or traded over-the-counter, real estate investment
trusts and American and Global Depositary Receipts. Investments are generally
made in equity securities of companies which in the sub-adviser's opinion have
one or more of the following characteristics: (i) are undervalued relative to
their earnings power, cash flow, and/or asset values; (ii) have an attractive
price/value relationship, i.e. have high returns on equity and/or assets with
correspondingly low price-to-book and/or price-to-asset value as compared to the
market generally or the companies' industry groups in particular, with
expectations that some catalyst will cause the perception of value to change
within a 24-month time horizon; (iii) have experienced significant relative
underperformance and are out of favor due to a set of circumstances which are
unlikely to harm a company's franchise or earnings power over the longer term;
(iv) have low projected price-to-earnings or price-to-cash-flow multiples
relative to their industry peer group and/or the market in general; (v) have the
prospect, or the industry in which the company operates has the prospect, to
allow it to become a larger factor in the business and receive a higher
valuation as such; (vi) have significant financial leverage but have high levels
of free cash flow used to reduce leverage and enhance shareholder value; and
(vii) have a relatively short corporate history with the expectation that the
business may grow to generate meaningful cash flow and earnings over a
reasonable investment horizon.

Under normal market conditions, the Series will invest at least 80% of the
value of its total assets in the small capitalization equity securities
described above.

The sub-adviser believes that the issuers of small capitalization stocks
often have sales and earnings growth rates which exceed those of larger
companies, and that such growth rates may in turn be reflected in more rapid
share price appreciation, however, investing in smaller capitalization stocks
can involve greater risk than is customarily associated with larger, more
established companies. For example, smaller capitalization companies often have
limited product lines, markets or financial resources. They may be dependent for
management on one or a few key persons, and can be more susceptible to losses
and risks of bankruptcy. Also, securities in the small capitalization sector may
be thinly traded (and therefore have to be sold at a discount from current
market prices or sold in small lots over an extended period of time), may be
followed by fewer investment research analysts and may be subject to wider price
swings and thus may create a greater chance of loss than investing in securities
of large capitalization companies.

The sub-adviser continually evaluates the securities owned by the Series,
and changes may be made whenever the sub-adviser determines such securities no
longer meet the Series' investment objective. Portfolio changes also may be made
to increase or decrease investments in anticipation of changes in securities
prices in general or to provide funds required for redemptions, distributions to
shareholders or other corporate purposes.

The Series may at any time invest funds awaiting investment or held as
reserves for the purposes of satisfying redemption requests, payment of
dividends or making other distributions, in cash and short-term

27
<PAGE> 32

money market instruments; provided, however, that such investments will not
ordinarily exceed 5% of the total assets of the Series. The Series may purchase
floating and variable rate obligations of the same quality as it otherwise is
allowed to purchase. The Series may purchase securities on a when-issued basis.
The Series may invest in securities of companies that have operated for less
than three years, including the operations of predecessors. It will not make
investments that will result in more than 10% of its total assets being invested
in the securities of unseasoned companies. The Series may invest in warrants.

In addition, the Series may engage in various investment techniques, such
as options and futures transactions, foreign currency transactions, leveraging,
short-selling and lending portfolio securities.

When, in the judgment of the sub-adviser, business or financial conditions
warrant, the Series may assume a temporary defensive position and invest without
limitation in large capitalization companies or short-term money market
instruments or hold its assets in cash.

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

LAZARD/JNL MID CAP VALUE SERIES

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

The investment objective of the Lazard/JNL Mid Cap Value Series is to seek
capital appreciation. It is a non-diversified Series that seeks to achieve its
investment objective by investing primarily in equity securities of United
States companies with market capitalizations in the range of companies
represented in the Russell Midcap Index that the sub-adviser considers
inexpensively priced relative to the return on total capital or equity. Market
capitalization of a company's stock is its market price per share times the
number of shares outstanding. The Russell Midcap Index is composed of the 800
smallest companies in the Russell 1000 Index. As of the latest reconstitution,
the Russell Midcap Index had a dollar-weighted average market capitalization of
approximately $4.8 billion and a median capitalization of approximately $2.7
billion. The equity securities in which the Series may invest include common
stocks, preferred stocks, securities convertible into or exchangeable for common
stocks, rights and warrants, real estate investment trusts and American and
Global Depositary Receipts.

Under normal market conditions, the Series will invest at least 80% of the
value of its total assets in the equity securities of undervalued medium
capitalization issuers. Assets not invested in such equity securities generally
will be invested in the equity securities of larger capitalization issuers or
debt securities, including cash equivalents. The Series also may invest up to
15% of its total assets in foreign equity or debt securities.

When, in the sub-adviser's judgment, business or financial conditions
warrant, the Series may assume a temporary defensive position and invest without
limitation in large capitalization companies or short-term money market
instruments.

- --------------------------------------------------------------------------------
PPM AMERICA/JNL BALANCED SERIES
- --------------------------------------------------------------------------------

The investment objective of the PPM America/JNL Balanced Series is to seek
reasonable income, long-term capital growth and preservation of capital. It is a
diversified Series that intends to invest based on combined consideration of
risk, income, capital enhancement, and protection of capital value. The Series
may invest in any type or class of security. Normally, the Series will invest in
common stocks and

28
<PAGE> 33

fixed income securities; however, it may also invest in securities convertible
into common stocks. At least 25% of the value of its assets will be invested in
fixed income senior securities.

The Series may also engage in certain options transactions and enter into
financial futures contracts and related options for hedging purposes and may
invest in deferred or zero coupon debt obligations. In implementing the
investment objectives of this Series, the sub-adviser will select securities
believed to have potential for the production of current income, with emphasis
on securities that also have potential for capital enhancement. For temporary
defensive purposes when the sub-adviser believes that adverse market conditions
warrant, the Series may actively pursue a policy of retaining cash or investing
part or all of its assets in cash equivalents, such as government securities and
high grade commercial paper.

The Series will emphasize investments in investment grade fixed income
securities which are rated within the four highest categories by recognized
rating agencies, e.g., S&P and Moody's. However, the Series may take a modest
position in lower or non-rated fixed income securities, but the Series will not
invest more than 35% of its net assets, determined at the time of investment, in
high yield, high risk fixed income securities. The Series may invest in bonds
rated as low as Ca by Moody's or CC by S&P. A fixed income securities issue may
have its ratings reduced below the minimum permitted for purchase by the Series.
In that event the sub-adviser will determine whether the Series should continue
to hold such issue in its portfolio. If, in the sub-adviser's opinion, market
conditions warrant, the Series may increase its position in lower or non-rated
securities from time to time. The lower rated and non-rated convertible
securities are predominantly speculative with respect to the issuer's capacity
to repay principal and pay interest. Investment in lower rated and non-rated
convertible fixed income securities normally involves a greater degree of market
and credit risk than does investment in securities having higher ratings. The
price of these fixed income securities will generally move in inverse proportion
to interest rates. In addition, non-rated securities are often less marketable
than rated securities. To the extent that the Series holds any lower rated or
non-rated securities, it may be negatively affected by adverse economic
developments, increased volatility and lack of liquidity. (See "Investment Risks
- -- High Yield/High Risk Bonds").

- --------------------------------------------------------------------------------
PPM AMERICA/JNL HIGH YIELD BOND SERIES
- --------------------------------------------------------------------------------

The primary investment objective of the PPM America/JNL High Yield Bond
Series is a high level of current income; its secondary investment objective is
capital appreciation by investing in fixed income securities, with emphasis on
higher-yielding, higher-risk, lower-rated or unrated corporate bonds. It is a
diversified Series.

Under normal market conditions, the Series will be invested substantially
in long-term (over 10 years to maturity) and intermediate-term (3 to 10 years to
maturity) fixed income securities, with emphasis on higher-yielding,
higher-risk, lower-rated or unrated corporate bonds. These high risk, high yield
bonds typically are subject to greater market fluctuations and risk of loss of
income and principal due to default by the issuer than are investments in
lower-yielding, higher-rated bonds. (See "Investment Risks -- High Yield/High
Risk Bonds").

High risk, high yield bonds generally include any bonds that are rated Ba
or below by Moody's or BB or below by S&P or that are unrated but considered by
the sub-adviser to be of equivalent credit quality. Bonds rated Ba or BB or
below are considered speculative. The Series may invest without limitation in
bonds rated as low as Ca by Moody's or C by S&P (or unrated but considered by
the sub-adviser to be of equivalent quality). In addition, the Series may invest
up to 10% of its total assets in bonds rated C by Moody's or D by S&P (or
unrated but considered by the sub-adviser to be of equivalent quality).
High-yield bonds are riskier than lower-yielding, higher-rated bonds.

29
<PAGE> 34

In pursuing its secondary investment objective of capital appreciation, the
Series may purchase high yield bonds that are expected by the sub-adviser to
increase in value due to improvements in their credit quality or ratings or
anticipated declines in interest rates. In addition, the Series may invest for
this purpose up to 25% of its assets in equity securities, such as common
stocks, or other securities having common stock characteristics. Securities
designated as having common stock characteristics include, but are not limited
to, securities convertible into or exchangeable for common stock.

Treating high current income as its primary investment objective means that
the Series may forego opportunities that would result in capital gains and may
accept prudent risks to capital value, in each case to take advantage of
opportunities for higher current income.

Up to 25% of the Series' assets may be invested in securities of foreign
issuers, which are generally denominated in currencies other than the U.S.
dollar. The Series also has the ability to hold a portion of its assets in
foreign currencies and to enter into forward foreign currency exchange
contracts, currency options, currency and financial futures contracts, and
options on such futures contracts. The Series may enter into repurchase
agreements and firm commitment agreements and may purchase securities on a
when-issued basis. Investment in foreign securities also involves special risks.

Under normal market conditions, the Series will invest at least 65% of its
total assets in high risk, high yield bonds as described above. Subject to this
requirement, the Series may maintain assets in cash or cash equivalents,
including commercial bank obligations (certificates of deposit, which are
interest-bearing time deposits; bankers' acceptances, which are time drafts on a
commercial bank for which the bank accepts an irrevocable obligation to pay at
maturity; and demand or time deposits), commercial paper (short-term notes
issued by corporations or governmental bodies) and obligations issued or
guaranteed by the U.S. Government. The Series may adopt temporary defensive
position investment policies during adverse market, economic or other
circumstances that require immediate action to avoid losses. During periods when
and to the extent that the Series has assumed a temporary defensive position,
the Series may not be pursuing its investment objective.

- --------------------------------------------------------------------------------
PPM AMERICA/JNL MONEY MARKET SERIES
- --------------------------------------------------------------------------------

The investment objective of the PPM America/JNL Money Market Series 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. It is a diversified Series that pursues its investment
objective by investing mainly in debt, but the Series shall retain maximum
flexibility in the management of its portfolio.

The Series invests in high quality money market instruments. These
instruments are considered to be among the safest investments available because
of their short maturities, liquidity and high quality ratings.

This Series will invest exclusively in the following types of high quality,
U.S. dollar denominated money market instruments that mature in 397 days or
less:

- Obligations issued or guaranteed as to principal and interest by the U.S.
Government, its agencies and instrumentalities.

- 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.

30
<PAGE> 35

- Corporate obligations, including commercial paper, of domestic and
foreign issuers.

- Obligations issued or guaranteed by one or more foreign governments or
any of their political subdivisions, agencies or instrumentalities,
including obligations of supranational entities.

- Repurchase agreements on obligations issued or guaranteed by the U.S.
Government, its agencies or instrumentalities.

Investments are managed to meet the quality and diversification
requirements of the 1940 Act. Under Rule 2a-7 under the 1940 Act, the Series
must maintain a dollar-weighted average portfolio maturity of 90 days or less
and may only purchase U.S. dollar denominated instruments that are determined to
present minimal credit risks and that at the time of acquisition are rated in
the top two rating categories by the required number of nationally recognized
statistical rating organizations (at least two or, if only one rating agency has
rated the security, that one agency) or, if unrated, are deemed comparable in
quality. Determination of credit risks and quality will be made by the sub-
adviser in accordance with procedures adopted by the Trust's Board of Trustees.
The diversification requirements of Rule 2a-7 provide generally that the Series
may not at the time of acquisition invest more than 5% of its assets in
securities of any one issuer or invest more than 5% of its assets in securities
that have not been rated in the highest category by the required number of
rating agencies or, if unrated, have not been deemed comparable, except U.S.
Government securities and repurchase agreements on such securities. A more
complete description of the rating categories is set forth under Appendix A.

The Series may invest more than 25% of its total assets in the domestic
banking industry, which would cause the Series to be more exposed to the risks
of such industry. Bank obligations held by the Series do not benefit materially
from insurance from the Federal Deposit Insurance Corporation. The 25%
limitation does not apply to U.S. Government securities, including obligations
issued or guaranteed by its agencies or instrumentalities.

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

SALOMON BROTHERS/JNL BALANCED SERIES

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

The investment objective of the Salomon Brothers/JNL Balanced Series is to
seek to obtain above-average income (compared to a portfolio entirely invested
in equity securities). The Series' secondary objective is to take advantage of
opportunities for growth of capital and income. It is a diversified Series that
seeks to achieve its investment objectives by investing in a broad variety of
securities, including equity securities, fixed-income securities and short-term
obligations. The Series may vary the percentage of assets invested in any one
type of security in accordance with the sub-adviser's view of existing and
anticipated economic and market conditions, fiscal and monetary policy and
underlying security values. Under normal market conditions, it is anticipated
that at least 40% of the Series' total assets will be invested in equity
securities.

Equity securities in which the Series may invest include common and
preferred stock (including convertible preferred stock), bonds, notes and
debentures convertible into common or preferred stock, stock purchase warrants
and rights, equity interests in trusts, partnerships, joint ventures or similar
enterprises and American, Global or other types of Depositary Receipts. Most of
the equity securities purchased by the Series are expected to be traded on a
stock exchange or in an over-the-counter market.

The sub-adviser will have discretion to invest in the full range of
maturities of fixed-income securities. Generally, most of the Series' long-term
debt investments will consist of "investment grade" securities; that is,
securities rated Baa or better by Moody's or BBB or better by S&P or Fitch or
determined by the sub-adviser to be of comparable quality to securities so
rated. Up to 20% of the Series' net assets may be invested in nonconvertible
fixed income securities that are rated Ba or lower by Moody's or BB or lower by
S&P or Fitch or determined by the sub-adviser to be of comparable quality. These
securities are commonly

31
<PAGE> 36

known as "junk bonds." There is no limit on the amount of the Series' assets
that can be invested in convertible securities rated below investment grade.
(See "Investment Risks -- High Yield/High Risk Bonds").

In addition to corporate debt securities, the Series may invest in U.S.
Government securities and mortgage-backed securities. The U.S. Government
securities in which the Series may invest include (i) U.S. Treasury obligations;
(ii) obligations issued or guaranteed by agencies or instrumentalities of the
U.S. Government which are backed by their own credit and may not be backed by
the full faith and credit of the U.S. Government; (iii) mortgage-backed
securities guaranteed by the Government National Mortgage Association that are
supported by the full faith and credit of the U.S. Government; (iv)
mortgage-backed securities guaranteed by agencies or instrumentalities of the
U.S. Government which are supported by their own credit but not the full faith
and credit of the U.S. Government, such as the Federal Home Loan Mortgage
Corporation and the Federal National Mortgage Association; and (v)
collateralized mortgage obligations issued by private issuers for which the
underlying mortgage-backed securities serving as collateral are backed by the
credit alone of the U.S. Government agency or instrumentality which issues or
guarantees the mortgage-backed securities or by the full faith and credit of the
U.S. Government. The mortgage-backed securities in which the Series may invest
represent participating interests in pools of fixed rate and adjustable rate
residential mortgage loans issued or guaranteed by agencies or instrumentalities
of the U.S. Government. The Series may also purchase privately issued mortgage
securities which are not guaranteed by the U.S. Government or its agencies or
instrumentalities.

The Series may invest in corporate asset-backed securities that have
thirteen months or less remaining to maturity and are rated in the highest
rating category by at least two nationally recognized statistical rating
organizations ("NRSROs") or by one NRSRO if only one NRSRO has rated the
security or, if not rated, deemed by the sub-adviser to be of comparable
quality.

Other fixed income securities in which the Series may invest include zero
coupon bonds, deferred interest bonds and bonds on which the interest is payable
in kind. The Series may invest up to 20% (and generally expects to invest
between 10% and 20%) of its total assets in foreign securities (including
American Depositary Receipts). (See "Investment Risks -- Foreign Securities").
The Series may invest a portion of its assets in loan participations and
assignments. The Series may enter into repurchase agreements and reverse
repurchase agreements, may purchase securities on a firm commitment basis,
including when-issued securities, and may lend portfolio securities. The Series
will not invest more than 10% of its assets in repurchase agreements maturing in
more than seven days.

The Series may purchase securities for which there is a limited trading
market or which are subject to restrictions on resale to the public. The Series
will not invest more than 15% of the value of its total assets in illiquid
securities, such as "restricted securities" which are illiquid, and securities
that are not readily marketable.

The Series may use the following investment strategies to hedge market
risks, to manage the effective maturity or duration of debt instruments held by
the Series, or to seek to increase the Series' income or gains: purchase and
sell interest rate, stock or bond index futures contracts; purchase and sell
exchange listed and over-the-counter put and call options on securities, futures
contracts, indices and other financial instruments; and enter into interest rate
transactions, equity swaps and related transactions, invest in indexed debt
securities and other similar transactions which may be developed to the extent
the sub-adviser determines that they are consistent with the Series' investment
objective and policies and applicable regulatory requirements. The Series'
interest rate transactions may take the form of swaps, caps, floors and collars.

32
<PAGE> 37

- --------------------------------------------------------------------------------
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
- --------------------------------------------------------------------------------

The primary investment objective of the Salomon Brothers/JNL Global Bond
Series is to seek a high level of current income. As a secondary objective, the
Series will seek capital appreciation. It is a diversified Series. The Series
seeks to achieve its objectives by investing in a globally diverse portfolio of
fixed income investments and by giving the sub-adviser broad discretion to
deploy the assets among certain segments of the fixed income market that the
sub-adviser believes will best contribute to the achievement of the Series'
objectives. At any point in time, the sub-adviser will deploy the Series' assets
based on its analysis of current economic and market conditions and the relative
risks and opportunities present in the following market segments: U.S.
Government obligations, investment grade domestic corporate debt, high yield
domestic corporate debt securities, mortgage-backed securities and investment
grade and high yield foreign corporate and sovereign debt securities. The
sub-adviser has entered into an agreement with its London-based affiliate,
Salomon Brothers Asset Management Limited ("SBAM Limited") pursuant to which
SBAM Limited will provide certain advisory services to the sub-adviser relating
to currency transactions and investments in non-dollar denominated debt
securities for the benefit of the Series.

The sub-adviser will determine the amount of assets to be allocated to each
type of security in which it invests based on its assessment of the maximum
level of income and capital appreciation that can be achieved from a portfolio
which is invested in these securities. In making this determination, the
sub-adviser will rely in part on quantitative analytical techniques that measure
relative risks and opportunities of each type of security based on current and
historical economic, market, political and technical data for each type of
security, as well as on its own assessment of economic and market conditions
both on a global and local (country) basis. In performing quantitative analysis,
the sub-adviser will employ prepayment analysis and option adjusted spread
technology to evaluate mortgage securities, mean variance optimization models to
evaluate foreign debt securities, and total rate of return analysis to measure
relative risks and opportunities in other fixed income markets. Economic factors
considered will include current and projected levels of growth and inflation,
balance of payments, status and monetary policy. The allocation of assets to
foreign debt securities will further be influenced by current and expected
currency relationships and political and sovereign factors. The sub-adviser will
continuously review this allocation of assets and make such adjustments as it
deems appropriate. The Series does not plan to establish a minimum or a maximum
percentage of the assets which it will invest in any particular type of fixed
income security.

In addition, the sub-adviser will have discretion to select the range of
maturities of the various fixed income securities in which the Series invests.
The sub-adviser anticipates that under current market conditions the Series'
portfolio securities will have a weighted average life of 6 to 10 years.
However, the weighted average life of the portfolio securities may vary
substantially from time to time depending on economic and market conditions. The
Series may adopt temporary defensive position investment policies during adverse
market, economic or other circumstances that require immediate action to avoid
losses. During periods when and to the extent that the Series has assumed a
temporary defensive position, the Series may not be pursuing its investment
objective.

The investment grade corporate debt securities and the investment grade
foreign debt securities to be purchased by the Series are domestic and foreign
debt securities rated within the four highest bond ratings of either Moody's or
S&P, or, if unrated, deemed to be of equivalent quality in the sub-adviser's
judgment. While debt securities carrying the fourth highest quality rating (Baa
by Moody's or BBB by S&P) are considered investment grade and are viewed to have
adequate capacity for payment of principal and interest, investments in such
securities involve a higher degree of risk than that associated with investments
in debt securities in the higher rating categories and such debt securities lack
outstanding investment characteristics and in fact have speculative
characteristics as well. For example, changes in economic conditions or other
circumstances are more

33
<PAGE> 38

likely to lead to a weakened capacity to make principal and interest payments
than is the case with higher grade debt securities.

The types and characteristics of the U.S. Government obligations and
mortgage-backed securities to be purchased by the Series are set forth below in
the discussion of investment objectives and policies for the Salomon
Brothers/JNL U.S. Government & Quality Bond Series. In addition, the Series may
purchase privately issued mortgage securities which are not guaranteed by the
U.S. Government or its agencies or instrumentalities and may purchase stripped
mortgage securities, including interest-only and principal-only securities.
Additional information with respect to securities to be purchased by the Series
is set forth below under the sections entitled "Common Types of Securities and
Management Practices" and "Investment Risks."

The Series may invest in debt obligations issued or guaranteed by a foreign
sovereign government or one of its agencies or political subdivisions and debt
obligations issued or guaranteed by supranational organizations. Supranational
entities include international organizations designated or supported by
governmental entities to promote economic reconstruction or development and
international banking institutions and related government agencies. Examples
include the International Bank for Reconstruction and Development (the "World
Bank"), the European Coal and Steel Community, the Asian Development Bank and
the Inter-American Development Bank. Such supranational issued instruments may
be denominated in multi-national currency units.

In pursuing the Series' investment objectives, the Series reserves the
right to invest predominantly in medium or lower-rated securities. Although the
Series has the ability to invest up to 100% of its assets in lower-rated
securities, the Series' sub-adviser does not anticipate investing in excess of
75% of the Series' assets in such securities. Investments of this type involve
significantly greater risks, including price volatility and risk of default in
the payment of interest and principal, than higher-quality securities. The
sub-adviser anticipates that under current market conditions, a significant
portion of the Series assets will be invested in such high risk, high yield
securities. By investing a portion of the Series' assets in securities rated
below investment grade as well as through investments in mortgage securities and
foreign debt securities, the sub-adviser expects to provide investors with a
higher yield than a high-quality domestic corporate bond fund. Certain of the
debt securities in which the Series may invest may be rated as low as C by
Moody's or D by S&P or may be considered comparable to securities having such
ratings. Medium and lower-rated securities are considered to be predominantly
speculative with respect to the issuer's capacity to pay interest and repay
principal.

In light of the risks associated with high yield corporate and sovereign
debt securities, the sub-adviser will take various factors into consideration in
evaluating the creditworthiness of an issuer. For corporate debt securities,
these will typically include the issuer's financial resources, its sensitivity
to economic conditions and trends, the operating history of the issuer, and the
experience and track record of the issuer's management. For sovereign debt
instruments, these will typically include the economic and political conditions
within the issuer's country, the issuer's overall and external debt levels and
debt service ratios, the issuer's access to capital markets and other sources of
funding, and the issuer's debt service payment history. The sub-adviser will
also review the ratings, if any, assigned to the security by any recognized
rating agencies, although the sub-adviser's judgment as to the quality of a debt
security may differ from that suggested by the rating published by a rating
service. The Series' ability to achieve its investment objective may be more
dependent on the sub-adviser's credit analysis than would be the case if it
invested in higher quality debt securities.

The high yield sovereign debt securities in which the Series may invest are
U.S. dollar-denominated debt securities, including Brady Bonds, and non-dollar
denominated debt securities that are issued or guaranteed by governments or
governmental entities of developing and emerging countries. The sub-adviser
expects that these countries will consist primarily of those which have issued
or have announced plans to issue Brady Bonds, but the portfolio is not limited
to investing in the debt of such countries. Brady Bonds are debt securities
issued under the framework of the Brady Plan, an initiative announced by former
U.S. Treasury Secretary Nicholas F. Brady in 1989 as a

34
<PAGE> 39

mechanism for debtor nations to restructure their outstanding external
indebtedness. (See "Investment Risks -- High Yield/ High Risk Bonds"). The
sub-adviser anticipates that the Series' initial investments in sovereign debt
will be concentrated in Latin American countries, including Mexico and Central
and South American and Caribbean countries. The sub-adviser expects to take
advantage of additional opportunities for investment in the debt of North
African countries, such as Nigeria and Morocco, Eastern European countries, such
as Poland and Hungary, and Southeast Asian countries, such as the Philippines.
Sovereign governments may include national, provincial, state, municipal or
other foreign governments with taxing authority. Governmental entities may
include the agencies and instrumentalities of such governments, as well as
state-owned enterprises. (For a more detailed discussion of high yield sovereign
debt securities, see "Investment Risks -- High Yield/ High Risk Bonds").

The Series will be subject to special risks as a result of its ability to
invest up to 100% of its assets in foreign securities (including emerging market
securities). Such securities may be non-U.S. dollar denominated and there is no
limit on the percentage of the Series' assets that can be invested in non-dollar
denominated securities. The sub-adviser anticipates that, under current market
conditions, a significant portion of the Series' assets will be invested in
foreign securities. (See "Investment Risks"). The ability to spread its
investments among the fixed income markets in a number of different countries
may, however, reduce the overall level or market risk to the extent it may
reduce the Series' exposure to a single market.

The Series may invest in zero coupon securities and pay-in-kind bonds. (See
"Common Types of Securities and Management Practices"). In addition, the Series
may invest in fixed and floating rate loans arranged through private
negotiations between a corporate borrower or a foreign sovereign entity and one
or more financial institutions. The Series may invest in such loans in the form
of participations in loans and assignments of all or a portion of loans from
third parties. The Series considers these investments to be investments in debt
securities for purposes of this Prospectus.

The Series may invest up to 20% of its assets in common stock, convertible
securities, warrants, preferred stock or other equity securities when consistent
with the Series' objectives. The Series will generally hold such equity
investments as a result of purchases of unit offerings of fixed income
securities which include such securities or in connection with an actual or
proposed conversion or exchange of fixed income securities, but may also
purchase equity securities not associated with fixed income securities when, in
the opinion of the sub-adviser, such purchase is appropriate.

The Series currently intends to invest substantially all of its assets in
fixed income securities. In order to maintain liquidity, however, the Series may
invest up to 20% of its assets in high-quality short-term money market
instruments. If at some future date, in the opinion of the sub-adviser, adverse
conditions prevail in the market for fixed income securities, the Series for
temporary defensive purposes may invest its assets without limit in high-quality
short-term money market instruments. The types and characteristics of the money
market securities to be purchased by the Series are set forth in the discussion
of investment objectives and policies of the PPM America/JNL Money Market
Series.

The Series may enter into repurchase and reverse repurchase agreements,
purchase securities on a firm commitment basis, including when-issued
securities, enter into mortgage "dollar rolls" and lend portfolio securities.
The Series will not make loans of portfolio securities with a value in excess of
25% of the Series' total assets. The Series may also enter into options, futures
and currency transactions, although with the exception of currency transactions,
it is not presently anticipated that any of these strategies will be utilized to
a significant degree by the Series. (See "Common Types of Securities and
Management Practices" and "Investment Risks"). The Series' ability to pursue
certain of these strategies may be limited by applicable regulations of the
Securities and Exchange Commission, the Commodity Futures Trading Commission and
the federal income tax requirements applicable to regulated investment
companies.

35
<PAGE> 40

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

SALOMON BROTHERS/JNL HIGH YIELD BOND SERIES

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

The investment objective of the Salomon Brothers/JNL High Yield Bond Series
is to maximize current income. As a secondary objective, the Series will seek
capital appreciation. It is a diversified Series that seeks to achieve its
objectives by investing primarily in a diversified portfolio of high yield
fixed-income securities rated in medium or lower rating categories or determined
by the sub-adviser to be of comparable quality. The Series intends to invest,
under normal market conditions, at least 80% of its total assets in non-
investment grade fixed-income securities (e.g., bonds, debentures, notes,
equipment lease certificates, equipment trust certificates, conditional sales
contracts, commercial paper and other obligations and preferred stock).

The debt obligations in which the Series will invest generally will be
rated, at the time of investment, "Ba" or "B" or lower by Moody's or "BB" or "B"
or lower by S&P, or determined by the sub-adviser to be of comparable quality.
Debt securities rated by both Moody's and S&P need only satisfy the foregoing
ratings standards with respect to either the Moody's or the S&P rating. The
Series is not required to dispose of a debt security if its credit rating or
credit quality declines. Medium and low-rated and comparable unrated securities
offer yields that fluctuate over time, but generally are superior to the yields
offered by higher rated securities. However, such securities also involve
significantly greater risks, including price volatility and risk of default in
the payment of interest and principal, than higher rated securities. Certain of
the debt securities purchased by the Series may be rated as low as C by Moody's
or D by S&P or may be comparable to securities so rated. The lower-rated bonds
in which the Series may invest are commonly referred to as "junk bonds." An
investment in the Series should not be considered as a complete investment
program. (See "Investment Risks -- High Yield/High Risk Bonds").

In light of the risks associated with high yield debt securities, the
sub-adviser will take various factors into consideration in evaluating the
creditworthiness of an issuer. For corporate debt securities, these will
typically include the issuer's financial resources, its sensitivity to economic
conditions and trends, the operating history of the issuer, and the experience
and track record of the issuer's management. For sovereign debt instruments,
these will typically include the economic and political conditions within the
issuer's country, the issuer's overall and external debt levels and debt service
ratios, the issuer's access to capital markets and other sources of funding, and
the issuer's debt service payment history. The investment manager will also
review the ratings, if any, assigned to the security by any recognized rating
agencies, although the investment manager's judgment as to the quality of a debt
security may differ from that suggested by the rating published by a rating
service. The Series' ability to achieve its investment objectives may be more
dependent on the sub-adviser's credit analysis than would be the case if it
invested in higher quality debt securities.

The sub-adviser will have discretion to select the range of maturities of
the fixed-income securities in which the Series may invest. The sub-adviser
anticipates that under current market conditions, the Series will have an
average portfolio maturity of 10 to 15 years. However, the average portfolio
maturity may vary substantially from time to time depending on economic and
market conditions.

The Series may invest up to 10% of its total assets in securities of
foreign issuers and up to 5% of its total assets in foreign governmental issuers
in any one country. The foreign securities in which the Series may invest, all
or a portion of which may be non-U.S. dollar denominated, include: (a) debt
obligations issued or guaranteed by foreign national, provincial, state,
municipal or other governments with taxing authority or by their agencies or
instrumentalities, including Brady Bonds; (b) debt obligations of supranational
entities; (c) debt obligations of the U.S. Government issued in non-dollar
securities; (d) debt obligations and other fixed-income securities of foreign
corporate issuers; and (e) U.S. corporate issuers. There is no minimum rating
criteria for the Series' investments in such securities.

The Series may also invest in zero coupon securities; pay-in-kind bonds and
deferred payment securities,

36
<PAGE> 41

which involve special risk considerations. The Series may invest in fixed and
floating rate loans arranged through private negotiations between a corporate
borrower or a foreign sovereign entity and one or more financial institutions.
The Series may invest in such loans in the form of participations in loans and
assignments of all or a portion of loans from third parties. (See "Securities
and Management Practices -- Participations and Assignments").

The Series may invest up to 10% of its total assets in either (1) equipment
lease certificates, equipment trust certificates and conditional sales contracts
or (2) limited partnership interests. The Series may invest up to 10% of its
total assets in common stock, convertible securities, warrants or other equity
securities (other than preferred stock for which there is no limit) when
consistent with the Series' objective. The Series will generally hold such
equity investments as a result of purchases of unit offerings of fixed-income
securities which include such securities or in connection with an actual or
proposed conversion or exchange of fixed-income securities, but may also
purchase equity securities not associated with fixed-income securities when, in
the opinion of the sub-adviser, such purchase is appropriate.

In order to maintain liquidity, the Series may hold and/or invest up to 20%
of its total assets in cash and/or U.S. dollar denominated debt securities
including: (1) short-term (less than 12 months to maturity) and medium-term (not
greater than five years to maturity) obligations issued or guaranteed by (a) the
U.S. Government or the government of a developed country, their agencies or
instrumentalities or (b) international organizations designed or supported by
multiple foreign governmental entities to promote economic reconstruction or
development ("supranational entities"); (2) finance company obligations,
corporate commercial paper and other short-term commercial obligations, in each
case rated or issued by companies with similar securities outstanding that are
rated 'Prime-1" or "A" or better by Moody's or "A-1" or "A" or better by S&P or,
if unrated, of comparable quality as determined by the sub-adviser; (3)
obligations (including certificates of deposit, time deposits, demand deposits
and bankers' acceptances) of banks; and (4) repurchase agreements with respect
to securities in which the Series may invest. If at some future date, in the
opinion of the sub-adviser, adverse conditions prevail in the securities markets
which makes the Series' investment strategy inconsistent with the best interest
of the Series' shareholders, then for defensive purposes, the Series may
temporarily invest its assets without limit in such instruments.

If at some future date, in the sub-adviser's opinion, adverse conditions
prevail in the securities markets which makes the Series' investment strategy
inconsistent with the best interests of the Series' shareholders, the Series may
invest its assets without limit in high-quality short-term money market
instruments.

The Series may enter into repurchase agreements and reverse repurchase
agreements, may purchase securities on a firm commitment basis including when-
issued securities and may lend portfolio securities.

The Series may use the following investment strategies to hedge market
risks, to manage the effective maturity or duration of debt instruments held by
the Series, or to seek to increase the Series' income or gains. The Series may
purchase and sell interest rate, currency or stock or bond index futures
contracts and enter into currency forward contracts and currency swaps; purchase
and sell exchange listed and over-the-counter put and call options on
securities, currencies, futures contracts, indices and other financial
instruments, and enter into interest rate transactions, equity swaps and related
transactions, invest in indexed debt securities and other similar transactions
which may be developed to the extent the sub-adviser determines that they are
consistent with the Series' investment objective and policies and applicable
regulatory requirements. The Series' interest rate transactions may take the
form of swaps, caps, floors and collars, and the Series' currency transactions
may take the form of currency forward contracts, currency futures contracts,
currency swaps and options on currencies.

37
<PAGE> 42

- --------------------------------------------------------------------------------
SALOMON BROTHERS/JNL U.S. GOVERNMENT & QUALITY BOND SERIES
- --------------------------------------------------------------------------------

The investment objective of the Salomon Brothers/JNL U.S. Government &
Quality Bond Series is to obtain a high level of current income. It is a
diversified Series that seeks to attain its objective by investing primarily in
debt obligations and mortgage-backed securities issued or guaranteed by the U.S.
Government, its agencies or instrumentalities including collateralized mortgage
obligations backed by such securities. The Series may also invest a portion of
its assets in investment grade bonds.

At least 65% of the total assets of the Series will be invested in:

(1) U.S. Treasury obligations;

(2) obligations issued or guaranteed by agencies or instrumentalities of
the U.S. Government which are backed by their own credit and may not be
backed by the full faith and credit of the U.S. Government;

(3) mortgage-backed securities guaranteed by the Government National
Mortgage Association that are supported by the full faith and credit of
the U.S. Government. Such securities entitle the holder to receive all
interest and principal payments due whether or not payments are
actually made on the underlying mortgages;

(4) mortgage-backed securities guaranteed by agencies or instrumentalities
of the U.S. Government which are supported by their own credit but not
the full faith and credit of the U.S. Government, such as the Federal
Home Loan Mortgage Corporation and the Federal National Mortgage
Association; and

(5) collateralized mortgage obligations issued by private issuers for which
the underlying mortgage-backed securities serving as collateral are
backed (i) by the credit alone of the U.S. Government agency or
instrumentality which issues or guarantees the mortgage-backed
securities, or (ii) by the full faith and credit of the U.S.
Government.

Any guarantee of the securities in which the Series invests runs only to
the principal and interest payments on the securities and not to the market
value of such securities or to the principal and interest payments on the
underlying mortgages. In addition, the guarantee only runs to the portfolio
securities held by the Series and not the purchase of shares of the Series.

The Series may invest in securities of any maturity or effective duration
and, accordingly, the composition and weighted average maturity of the Series'
portfolio will vary from time to time, based upon the sub-adviser's
determination of how best to achieve the Series' investment objective. With
respect to mortgage-backed securities in which the Series invests, average
maturity and duration are determined by using mathematical models that
incorporate prepayment assumptions and other factors that involve estimates of
future economic parameters. These estimates may vary from actual results,
particularly during periods of extreme market volatility. In addition, the
average maturity and duration of mortgage-backed derivative securities may not
accurately reflect the price volatility of such securities under certain market
conditions.

A significant portion of the Series' assets may from time to time be
invested in mortgage-backed securities. The mortgage-backed securities in which
the Series invests represent participating interests in pools of fixed rate and
adjustable rate residential mortgage loans issued or guaranteed by agencies or
instrumentalities of the U.S. Government. Mortgage-backed securities are issued
by lenders such as mortgage bankers, commercial banks, and savings and loan
associations. Mortgage-backed securities generally provide monthly payments
which are, in effect, a "pass-through" of the monthly interest and principal
payments (including any prepayments) made by the individual borrowers on the
pooled mortgage loans. Principal prepayments result from the sale of the
underlying property or the refinancing or foreclosure of underlying mortgages.

38
<PAGE> 43

The yield of mortgage-backed securities is based upon the prepayment rates
experienced over the life of the security. Prepayments tend to increase during
periods of falling interest rates, while during periods of rising interest rates
prepayments will most likely decline. Reinvestment by the Series of scheduled
principal payments and unscheduled prepayments may occur at higher or lower
rates than the original investment, thus affecting the yield of the Series.
Monthly interest payments received by the Series have a compounding effect which
will increase the yield to shareholders as compared to debt obligations that pay
interest semi-annually. Because of the reinvestment of prepayments of principal
at current rates, mortgage-backed securities may be less effective than Treasury
bonds of similar maturity at maintaining yields during periods of declining
interest rates. Also, although the value of debt securities may increase as
interest rates decline, the value of these pass-through type of securities may
not increase as much due to the prepayment feature.

While the Series seeks a high level of current income, it cannot invest in
instruments such as lower grade corporate obligations which offer higher yields
but are subject to greater credit risks. The Series will not knowingly invest in
a high risk "mortgage security," generally defined as any mortgage security that
exhibits significantly greater price volatility than a benchmark security, the
Federal National Mortgage Association current coupon 30-year mortgage-backed
pass through security. Shares of the Series are neither insured nor guaranteed
by the U.S. Government, its agencies or instrumentalities. Neither the issuance
by nor the guarantee of a U.S. Government agency for a security constitutes
assurance that the security will not significantly fluctuate in value or that
the Series will receive the originally anticipated yield on the security.

The Series may also invest up to 35% of its assets in U.S.
dollar-denominated securities rated AAA, AA, A or BBB by S&P or Aaa, Aa, A or
Baa by Moody's, or if unrated, determined to be of comparable quality to
securities in those ratings categories by the sub-adviser. The Series may not
invest more than 10% of total assets in obligations of foreign issuers.
Investments in foreign securities will subject the Series to special
considerations related to political, economic and legal conditions outside of
the U.S. (See "Investment Risks"). These considerations include the possibility
of expropriation, nationalization, withholding taxes on income and difficulties
in enforcing judgments. Foreign securities may be less liquid and more volatile
than comparable U.S. securities.

The Series may enter into repurchase and reverse repurchase agreements,
purchase securities on a firm commitment basis, including when-issued
securities, and lend portfolio securities. The Series will not make loans of
portfolio securities with a value in excess of 25% of the value of its total
assets. The Series may also enter into mortgage "dollar rolls." (For a
description of these investment practices and the risks associated with them,
see "Common Types of Securities and Management Practices" and "Investment
Risks").

- --------------------------------------------------------------------------------
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES
- --------------------------------------------------------------------------------

The investment objective of the T. Rowe Price/JNL Established Growth Series
is to seek long-term growth of capital and increasing dividend income through
investment primarily in common stocks of well-established growth companies. A
growth company is defined as one which: (1) has demonstrated historical growth
of earnings faster than the growth of inflation and the economy in general; and
(2) has indications of being able to continue this growth pattern in the future.
Total return will consist primarily of capital appreciation or depreciation and
secondarily of dividend income.

It is a diversified Series that will invest primarily in the common stock
of a diversified group of well-established growth companies. While current
dividend income is not a prerequisite in the selection of a growth company, the
companies in which the Series will invest normally have a record of

39
<PAGE> 44

paying dividends and are generally expected to increase the amounts of such
dividends in future years as earnings increase. Although the Series will invest
primarily in U.S. common stocks, it may also purchase other types of securities,
for example, convertible securities, warrants, hybrid instruments, restricted
securities, futures and options, when considered consistent with the Series'
investment objective and program. The Series may invest up to 30% of its total
assets (excluding reserves) in foreign securities, including American Depositary
Receipts.

- --------------------------------------------------------------------------------
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
- --------------------------------------------------------------------------------

The investment objective of the T. Rowe Price/JNL International Equity
Investment Series is to seek long-term growth of capital through investments
primarily in common stocks of established, non-U.S. companies. Total return
consists of capital appreciation or depreciation, dividend income, and currency
gains or losses.

Over the last 30 years, many foreign economies have grown faster than the
United States' economy, and the return from equity investments in these
countries has often exceeded the return on similar investments in the United
States. Moreover, there has normally been a wide and largely unrelated variation
in performance between international equity markets over this period. Although
there can be no assurance that these conditions will continue, the Series'
sub-adviser, within the framework of diversification, seeks to identify and
invest in companies participating in the faster growing foreign economies and
markets. The sub-adviser believes that investment in foreign securities offers
significant potential for long-term capital appreciation and an opportunity to
achieve investment diversification. The Series may also purchase other types of
securities, for example, common and preferred stocks, convertible securities,
fixed income securities, hybrid instruments, restricted securities, foreign
currency transactions, futures and options.

In analyzing companies for investment, the sub-adviser ordinarily looks for
one or more of the following characteristics: an above-average earnings growth
per share; high return on invested capital; healthy balance sheet; sound
financial and accounting policies and overall financial strength; strong
competitive advantages; effective research and product development and
marketing; efficient service; pricing flexibility; strength of management; and
general operating characteristics which will enable the companies to compete
successfully in their market place. While current dividend income is not a
prerequisite in the selection of portfolio companies, the companies in which the
Series invests, normally will have a record of paying dividends, and will
generally be expected to increase the amounts of such dividends in future years
as earnings increase.

It is a diversified Series that intends to diversify investments broadly
among countries and to normally have at least three different countries
represented in the Series. The Series may invest in countries of the Far East
and Europe, as well as South Africa, Australia, Canada and other areas
(including developing countries). Under unusual circumstances, however, the
Series may invest substantially all of its assets in one or two countries.

- --------------------------------------------------------------------------------
T. ROWE PRICE/JNL MID-CAP GROWTH SERIES
- --------------------------------------------------------------------------------

The investment objective of the T. Rowe Price/JNL Mid-Cap Growth Series is
to provide long-term growth of capital by investing primarily in the common
stock of companies with medium-sized market capitalizations ("mid-cap") and the
potential for above-average growth.

40
<PAGE> 45

It is a diversified Series that will invest at least 65% of its total
assets in a diversified portfolio of mid-cap common stocks with above-average
growth potential. A mid-cap company is defined as one whose market
capitalization falls within the capitalization range of companies included in
the S&P MidCap 400 Index. Mid-cap growth companies are often still in the early,
more dynamic phase of a company's life cycle, but have enough corporate history
that they are no longer considered new or emerging. By focusing their
activities, mid-cap companies may be more responsive and better able to adapt to
the changing needs of their markets. They are usually mature enough to have
established organizational structures and the depth of management needed to
expand their operations. In addition, these companies generally have sufficient
financial resources and access to capital to finance their growth.

While investing in mid-cap growth companies generally entails greater risk
and volatility than investing in large, well-established companies, mid-cap
companies are expected to offer the potential for more rapid growth. They may
also offer greater potential for capital appreciation because of their higher
growth rates. In addition, the stocks of such companies are less actively
followed by securities analysts and may, therefore, be undervalued by investors.

The sub-adviser will rely on its proprietary research to identify mid-cap
companies with attractive growth prospects. The Series will seek to invest
primarily in companies which: 1) offer proven products or services, 2) have a
historical record of earnings growth that is above average, 3) demonstrate the
potential to sustain earnings growth, 4) operate in industries experiencing
increasing demand, and/or 5) are believed to be reasonably valued in the
marketplace. There is, of course, no guarantee the Series will be able to
identify such companies or that its investment in them will be successful.

Although the Series will invest primarily in U.S. common stocks, it may
also purchase other types of securities, for example, convertible securities,
restricted securities, hybrid instruments, warrants, futures and options, when
considered consistent with the Series' investment objective and program. The
Series may invest up to 25% of its assets (excluding reserves) in foreign
securities, including American Depositary Receipts.

41
<PAGE> 46

- --------------------------------------------------------------------------------
COMMON TYPES OF SECURITIES AND MANAGEMENT PRACTICES
- --------------------------------------------------------------------------------

SECURITIES AND MANAGEMENT PRACTICES

This section describes some of the types of securities a Series may hold in
its portfolio and the various kinds of investment practices that may be used in
day-to-day portfolio management. A Series may invest in the following securities
or engage in the following practices to the extent that such securities and
practices are consistent with the Series' investment objective(s) and policies
described herein. Each Series' investment program is subject to further
restrictions described in the Statement of Additional Information.

BORROWING AND LENDING. A Series may borrow money from banks for temporary
or emergency purposes in amounts up to 25% of its total assets. To secure
borrowings a Series may mortgage or pledge securities in amounts up to 15% of
its net assets. As a fundamental policy, a Series will not lend securities or
other assets if, as a result, more than 25% of its total assets would be lent to
other parties.

CASH POSITION. A Series may hold a certain portion of its assets in
repurchase agreements and money market securities rated in one of the two
highest rating categories by a nationally recognized statistical rating
organization, maturing in one year or less. For temporary, defensive purposes, a
Series may invest without limitation in such securities. This reserve position
provides flexibility in meeting redemptions, expenses, and the timing of new
investments, and serves as a short-term defense during periods of unusual market
volatility.

COMMON AND PREFERRED STOCKS. Stocks represent shares of ownership in a
company. Generally, preferred stock has a specified dividend and ranks after
bonds and before common stocks in its claim on income for dividend payments and
on assets should the company be liquidated. After other claims are satisfied,
common stockholders participate in company profits on a pro rata basis; profits
may be paid out in dividends or reinvested in the company to help it grow.
Increases and decreases in earnings are usually reflected in a company's stock
price, so common stocks generally have the greatest appreciation and
depreciation potential of all corporate securities. While most preferred stocks
pay a dividend, a Series may purchase preferred stock where the issuer has
omitted, or is in danger of omitting, payment of its dividend. Such investments
would be made primarily for their capital appreciation potential. Although
common and preferred stocks have a history of long-term growth in value, their
prices tend to fluctuate in the short term, particularly those of smaller
companies.

CONVERTIBLE SECURITIES AND WARRANTS. A Series may invest in debt or
preferred equity securities convertible into or exchangeable for equity
securities. Traditionally, convertible securities have paid dividends or
interest at rates higher than common stocks but lower than non-convertible
securities. They generally participate in the appreciation or depreciation of
the underlying stock into which they are convertible, but to a lesser degree. In
recent years, convertibles have been developed which combine higher or lower
current income with options and other features. Warrants are options to buy a
stated number of shares of common stock at a specified price any time during the
life of the warrants (generally, two or more years).

FIXED INCOME SECURITIES. A Series may invest in fixed income securities of
companies which meet the investment criteria for the Series. The price of fixed
income securities fluctuates with changes in interest rates, generally rising
when interest rates fall and falling when interest rates rise. Prices of
longer-term securities generally increase or decrease more sharply than those of
shorter-term securities in response to interest rate changes.

FOREIGN CURRENCY TRANSACTIONS. A Series will normally conduct its foreign
currency exchange transactions either on a spot (i.e., cash), basis at the spot
rate prevailing in the foreign currency exchange market, or through entering
into forward contracts to purchase or sell foreign currencies. A Series will
generally not enter into a forward contract with a term of greater than one
year.

42
<PAGE> 47

There are certain markets where it is not possible to engage in effective
foreign currency hedging. This may be true, for example, for the currencies of
various countries where the foreign exchange markets are not sufficiently
developed to permit hedging activity to take place.

FOREIGN SECURITIES. A Series may invest in foreign securities. These
include non-dollar denominated securities traded principally outside the U.S.
and dollar denominated securities traded in the U.S. (such as American
Depositary Receipts). Such investments increase a Series' diversification and
may enhance return, but they also involve some special risks such as exposure to
potentially adverse local political and economic developments; nationalization
and exchange controls; potentially lower liquidity and higher volatility;
possible problems arising from accounting, disclosure, settlement, and
regulatory practices that differ from U.S. standards; and the chance that
fluctuations in foreign exchange rates will decrease the investment's value
(favorable changes can increase its value).

FUTURES AND OPTIONS. Futures are often used to manage risk, because they
enable the investor to buy or sell an asset in the future at an agreed upon
price. Options give the investor the right, but not the obligation, to buy or
sell an asset at a predetermined price in the future. A Series may buy and sell
futures contracts (and options on such contracts) to manage its exposure to
changes in securities prices and foreign currencies and as an efficient means of
adjusting overall exposure to certain markets. Subject to certain limits
described in the Statement of Additional Information, a Series may purchase or
sell call and put options on securities, financial indices, and foreign
currencies, and may invest in futures contracts on foreign currencies and
financial indices, including interest rates or an index of U.S. Government
securities, foreign government securities or equity or fixed income securities.

Futures contracts and options may not always be successful hedges; their
prices can be highly volatile; using them could lower a Series' total return;
and the potential loss from the use of futures can exceed the Series' initial
investment in such contracts. These instruments may also be used for non-hedging
purposes such as increasing a Series' income.

The Series' use of commodity futures and commodity options trading should
not be viewed as providing a vehicle for shareholder participation in a
commodity pool. Rather, in accordance with regulations adopted by the CFTC, a
Series will employ such techniques only for (1) hedging purposes, or (2)
otherwise, to the extent that aggregate initial margin and required premiums do
not exceed 5 percent of the Series' net assets.

ILLIQUID SECURITIES. Each Series may invest up to 15% of its net assets
(10% in the case of the JNL/Alger Growth Series and the PPM America/JNL Money
Market Series) in securities that are considered illiquid. Illiquid investments
include repurchase agreements not terminable within seven days, securities for
which market quotations are not readily available and certain restricted
securities. Illiquid investments may be difficult to sell promptly at an
acceptable price. Difficulty in selling securities may result in a loss or may
be costly to a Series. Certain restricted securities may be determined to be
liquid in accordance with guidelines adopted by the Trust's Board of Trustees.

HIGH YIELD BONDS. A Series may invest its assets in fixed income securities
offering high current income that are in the lower rating categories of
recognized rating agencies or are non-rated. These lower-rated fixed income
securities are considered on balance, as predominantly speculative with respect
to capacity to pay interest and repay principal in accordance with the terms of
the obligation and generally will involve more credit risk than securities in
the higher rating categories.

DEBT HOLDINGS BY RATINGS. During the period ended December 31, 1996, the
percentage of the assets of the following Series invested in debt securities in
each of the rating categories of S&P and the debt securities

43
<PAGE> 48

not rated by an established rating service, determined on a dollar weighted
average, were:

<TABLE>
<CAPTION>
PERCENTAGE OF NET ASSETS
----------------------------------
PPM AMERICA/ SALOMON BROTHERS/
JNL HIGH YIELD JNL GLOBAL
S&P RATING BOND SERIES BOND SERIES
---------- -------------- -----------------
<S> <C> <C>
AAA.................. 0% 28.05%
AA................... 0% 1.78%
A.................... 0% 0.45%
BBB.................. 2.05% 4.09%
BB................... 28.43% 6.83%
B.................... 66.23% 29.51%
CCC.................. 0.81% 2.84%
CC................... 0% 0%
C.................... 0% 0%
D.................... 0% 0%
Not Rated............ 2.48% 26.45%
</TABLE>

HYBRID INSTRUMENTS. These instruments can combine the characteristics of
securities, futures and options. For example, the principal amount, redemption
or conversion terms of a security could be related to the market price of some
commodity, currency or securities index. Such securities may bear interest or
pay dividends at below market (or even relatively nominal) rates. Under certain
conditions, the redemption value of such an investment could be zero. Hybrids
can have volatile prices and limited liquidity and their use by a Series may not
be successful.

MORTGAGE- AND ASSET-BACKED SECURITIES. A Series may invest in mortgage- and
asset-backed securities. These securities are subject to prepayment risk, that
is, the possibility that prepayments on the underlying mortgages or other loans
will cause the principal and interest on the mortgage- and asset-backed
securities to be paid prior to their stated maturities. A sub-adviser will
consider estimated prepayment rates in calculating the average weighted
maturities of the Series. 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, a Series may be required
to invest the unanticipated proceeds at a lower interest rate. Prepayments
during such periods will also limit a Series' ability to participate in as large
a market gain as may be experienced with a comparable security not subject to
prepayment.

A Series may purchase stripped mortgage-backed securities, which may be
considered derivative mortgage-backed securities, which may be issued by
agencies or instrumentalities of the U.S. Government or by private entities.
Stripped mortgage-backed securities have greater volatility than other types of
mortgage-backed securities. Stripped mortgage-backed securities are structured
with two or more classes that receive different proportions of the interest and
principal distributions on a pool of mortgage assets. In the most extreme case,
one class will receive all of the interest, while the other class will receive
all of the principal. The yield to maturity of such mortgage backed securities
that are purchased at a substantial discount or premium are extremely sensitive
to changes in interest rates as well as to the rate of principal payments
(including prepayments) on the related underlying mortgage assets.

MORTGAGE DOLLAR ROLLS. A Series may enter into mortgage "dollar rolls" in
which a Series sells mortgage-backed securities for delivery in the current
month and simultaneously contracts to repurchase substantially similar (same
type, coupon and maturity) securities on a specified future date. During the
roll period, a Series foregoes principal and interest paid on the
mortgage-backed securities. A Series is compensated by the interest earned on
the cash proceeds of the initial sale and from negotiated fees paid by brokers
offered as an inducement to the Series to "roll over" its purchase commitments.
A Series may only enter into covered rolls. A "covered roll" is a specific type
of dollar roll for which there is an offsetting cash position which matures on
or before the forward settlement date of the dollar roll transaction. At the
time a Series enters into a mortgage "dollar roll", it will establish a
segregated account with its custodian bank in which it will maintain cash, U.S.
Government securities or other liquid assets equal in value to its obligations
in respect of dollar rolls, and accordingly, such dollar rolls will not be
considered borrowings. Mortgage dollar rolls involve the risk that the market
value of the securities the Series is obligated to repurchase under the
agreement may decline below the repurchase price. In the event the buyer of
securities under a mortgage dollar roll files

44
<PAGE> 49

for bankruptcy or becomes insolvent, the Series' use of proceeds of the dollar
roll may be restricted pending a determination by the other party, or its
trustee or receiver, whether to enforce the Series' obligation to repurchase the
securities.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMOS). A Series may invest in CMOs.
CMOs are bonds that are collateralized by whole loan mortgages or mortgage
pass-through securities. In recent years, new types of CMO structures have
evolved. These include floating rate CMOs, planned amortization classes, accrual
bonds, and CMO residuals. Under certain of these new structures, given classes
of CMOs have priority over others with respect to the receipt of prepayments on
the mortgages. Therefore, depending on the type of CMOs in which the Series
invests, the investment may be subject to a greater or lesser risk of prepayment
than other types of mortgage-related securities.

The primary risk of any mortgage security is the uncertainty of the timing
of cash flows. For CMOs, the primary risk results from the rate of prepayments
on the underlying mortgages serving as collateral. An increase or decrease in
prepayment rates (resulting primarily from a decrease or increase in mortgage
interest rates) will affect the yield, average life, and price of CMOs. The
prices of certain CMOs, depending on their structure and the rate of
prepayments, can be volatile. Some CMOs may also not be as liquid as other
securities.

REAL ESTATE INVESTMENT TRUSTS ("REITS"). The REITs in which a Series may
invest include equity REITs, which own real estate properties, and mortgage
REITs, which make construction, development and long-term mortgage loans. The
value of an equity REIT may be affected by changes in the value of the
underlying property, while a mortgage REIT may be affected by the quality of the
credit extended. The performance of both types of REITs depends upon conditions
in the real estate industry, management skills and the amount of cash flow. The
risks associated with REITs include defaults by borrowers, self-liquidation,
failure to qualify as a "pass-through" entity under the Federal tax law, failure
to qualify as an exempt entity under the 1940 Act, and the fact that REITs are
not diversified.

PORTFOLIO TURNOVER. To a limited extent, a Series may engage in short-term
transactions if such transactions further its investment objective. A Series may
sell one security and simultaneously purchase another of comparable quality or
simultaneously purchase and sell the same security to take advantage of
short-term differentials in bond yields or otherwise purchase individual
securities in anticipation of relatively short-term price gains. The rate of
portfolio turnover will not be a determining factor in the purchase and sale of
such securities. However, certain tax rules may restrict the Series' ability to
sell securities in some circumstances when the security has been held for less
than three months. Increased portfolio turnover necessarily results in
correspondingly higher costs including brokerage commissions, dealer mark-ups
and other transaction costs on the sale of securities and reinvestment in other
securities, and may result in the acceleration of taxable gains.

REPURCHASE AGREEMENTS AND REVERSE REPURCHASE AGREEMENTS. A Series may
invest in repurchase or reverse repurchase agreements. A repurchase agreement
involves the purchase of a security by a Series and a simultaneous agreement
(generally by a bank or dealer) to repurchase that security from the Series at a
specified price and date or upon demand. This technique offers a method of
earning income on idle cash. The repurchase agreement is effectively secured by
the value of the underlying security. A risk associated with repurchase
agreements is the failure of the seller to repurchase the securities as agreed,
which may cause a Series to suffer a loss if the market value of such securities
declines before they can be liquidated on the open market. In the event of
bankruptcy or insolvency of the seller, a Series may encounter delays and incur
costs in liquidating the underlying security.

When a Series invests in a reverse repurchase agreement, it sells a
portfolio security to another party, such as a bank or a broker-dealer, in
return for cash, and agrees to buy the security back at a future date and price.
Reverse repurchase agreements may be used to provide cash to satisfy unusually
heavy redemption requests or for other temporary or emergency purposes without
the necessity of selling portfolio securities or to earn additional income on
portfolio securities, such as Treasury bills and notes.

45
<PAGE> 50

SHORT SALES. A Series may sell securities short. A short sale is the sale
of a security the Series does not own. It is "against the box" if at all times
when the short position is open the Series owns an equal amount of the
securities or securities convertible into, or exchangeable without further
consideration for, securities of the same issue as the securities sold short. To
the extent that a Series engages in short sales that are not "against the box,"
it must maintain asset coverage in the form of assets determined to be liquid by
the sub-adviser in accordance with procedures established by the Board of
Trustees, in a segregated account, or otherwise cover its position in a
permissible manner.

U.S. GOVERNMENT SECURITIES AND CUSTODIAL RECEIPTS. Obligations issued or
guaranteed as to principal and interest by the U.S. Government, its agencies or
instrumentalities include Treasury bills, notes and bonds and Government
National Mortgage Association ("GNMA") certificates which are supported by the
full faith and credit of the United States; others, such as those of the Federal
Home Loan Banks, are supported by the right of the issuer to borrow from the
Treasury; others, such as those of the Federal National Mortgage Association
("FNMA"), 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.

WHEN-ISSUED SECURITIES. A Series may purchase securities on a when-issued,
delayed delivery or forward commitment basis. Actual payment for and delivery of
such securities does not take place until some time in the future -- i.e.,
beyond normal settlement. The Series does not earn interest on such securities
until settlement and bears the risk of market value fluctuations during the
period between the purchase and settlement dates. The Series segregate and
maintain at all times cash, cash equivalents, or other liquid assets in an
amount at least equal to the amount of outstanding commitments for when-issued
securities.

ZERO COUPON AND PAY-IN-KIND BONDS. A Series may invest up to 10% of its
assets in zero coupon bonds or strips. The JNL/PIMCO Total Return Bond Series
and the Salomon Brothers/JNL High Yield Bond Series may invest in such
securities without limit. Zero coupon bonds do not make regular interest
payments; rather, they are sold at a discount from face value. Principal and
accreted discount (representing interest accrued but not paid) are paid at
maturity. Strips are debt securities that are stripped of their interest after
the securities are issued, but otherwise are comparable to zero coupon bonds.
The market value of strips and zero coupon bonds generally fluctuates in
response to changes in interest rates to a greater degree than interest-paying
securities of comparable term and quality. A Series may also purchase
pay-in-kind bonds. Pay-in-kind bonds pay all or a portion of their interest in
the form of debt or equity securities.

Zero coupon and pay-in-kind bonds tend to be subject to greater price
fluctuations in response to changes in interest rates than are ordinary
interest-paying debt securities with similar maturities. The value of zero
coupon securities appreciates more during periods of declining interest rates
and depreciates more during periods of rising interest rates than ordinary
interest-paying debt securities with similar maturities. Zero coupon securities
and pay-in-kind bonds may be issued by a wide variety of corporate and
governmental issuers.

Current federal income tax law requires the holder of a zero coupon
security, certain pay-in-kind bonds and certain other securities acquired at a
discount (such as Brady Bonds) to accrue income with respect to these securities
prior to the receipt of cash payments. Accordingly, to avoid liability for
federal income and excise taxes, a Series may be required to distribute income
accrued with respect to these securities and may have to dispose of portfolio
securities under disadvantageous circumstances in order to generate cash to
satisfy these distribution requirements.

PARTICIPATIONS AND ASSIGNMENTS

A Series may invest in fixed and floating rate loans ("Loans") arranged
through private negotiations between a corporate borrower or a foreign sovereign
entity

46
<PAGE> 51

and one or more financial institutions ("Lenders"). A Series may invest in such
Loans in the form of participations in Loans ("Participations") and assignments
of all or a portion of Loans from third parties ("Assignments"). Participations
typically will result in a Series having a contractual relationship only with
the Lender, not with the borrower. A Series will have the right to receive
payments of principal, interest and any fees to which it is entitled only from
the Lender selling the Participation and only upon receipt by the Lender of the
payments from the borrower. In connection with purchasing Participations, a
Series generally will have no right to enforce compliance by the borrower with
the terms of the loan agreement relating to the Loan, nor any rights of set-off
against the borrower, and a Series may not benefit directly from any collateral
supporting the Loan in which it has purchased the Participation. As a result, a
Series will assume the credit risk of both the borrower and the Lender that is
selling the Participation. In the event of the insolvency of the Lender selling
a Participation, a Series may be treated as a general creditor of the Lender and
may not benefit from any set-off between the Lender and the borrower. A Series
will acquire Participations only if the Lender interpositioned between a Series
and the borrower is determined by the sub-adviser to be creditworthy. When a
Series purchases Assignments from Lenders, a Series will acquire direct rights
against the borrower on the Loan, except that under certain circumstances such
rights may be more limited than those held by the assigning Lender.

A Series may have difficulty disposing of Assignments and Participations.
Because the market for such instruments is not highly liquid, a Series
anticipates that such instruments could be sold only to a limited number of
institutional investors. The lack of a highly liquid secondary market may have
an adverse impact on the value of such instruments and will have an adverse
impact on a Series' ability to dispose of particular Assignments or
Participations in response to a specific economic event, such as deterioration
in the creditworthiness of the borrower. A Series currently treats investments
in Participations and Assignments as illiquid for purposes of its limitation on
investment in illiquid securities. However, the Trustees may in the future adopt
policies and procedures for the purpose of determining whether Assignments and
Loan Participations are liquid or illiquid. Pursuant to such policies and
procedures, the Trustees would delegate to the sub-adviser the determination as
to whether a particular Loan Participation or Assignment is liquid or illiquid,
requiring that consideration be given to, among other things, the frequency of
quotes, the number of dealers willing to sell and the number of potential
purchasers, the nature of the Loan Participation or Assignment and the time
needed to dispose of it and the contractual provisions of the relevant
documentation. The Trustees would periodically review purchases and sales of
Assignments and Loan Participations. To the extent that liquid Assignments and
Loan Participations that a Series held became illiquid, due to the lack of
sufficient buyers or market or other conditions, the percentage of the Series'
assets invested in illiquid assets would increase.

INVESTMENT RISKS

FOREIGN SECURITIES

Investments in foreign securities, including those of foreign governments,
involve risks that are different in some respects from investments in securities
of U.S. issuers, such as the risk of fluctuations in the value of the currencies
in which they are denominated, a heightened risk of adverse political and
economic developments and, with respect to certain countries, the possibility of
expropriation, nationalization or confiscatory taxation or limitations on the
removal of funds or other assets of a Series. Securities of some foreign issuers
in many cases are less liquid and more volatile than securities of comparable
domestic issuers. There also may be less publicly available information about
foreign issuers than domestic issuers, and foreign issuers generally are not
subject to the uniform accounting, auditing and financial reporting standards,
practices and requirements applicable to domestic issuers. Certain markets may
require payment for securities before delivery. A Series may have limited legal
recourse against the issuer in the event of a default on a debt instrument.
Delays may be encountered in settling securities transactions in certain foreign
markets and a Series will incur costs in converting foreign currencies into U.S.
dollars. Bank custody charges are generally higher for foreign securities. The
JNL Global Equities,

47
<PAGE> 52

JNL/JPM International & Emerging Markets, Salomon Brothers/JNL Global Bond, and
T. Rowe Price/JNL International Equity Investment Series are particularly
susceptible to such risks. American Depositary Receipts do not involve the same
direct currency and liquidity risks as foreign securities.

At times, securities held by a Series may be listed on foreign exchanges or
traded in foreign markets which are open on days (such as Saturday) when a
Series does not compute its price or accept orders for the purchase, redemption
or exchange of its shares. As a result, the net asset value of a Series may be
significantly affected by trading on days when shareholders cannot make
transactions.

The share price of a Series that invests in foreign securities will reflect
the movements of both the prices of the portfolio securities and the currencies
in which such securities are denominated. A Series' foreign investments may
cause changes in a Series' share price that have a low correlation with movement
in the U.S. markets. Because most of the foreign securities in which a Series
invests will be denominated in foreign currencies, or otherwise will have values
that depend on the performance of foreign currencies relative to the U.S.
dollar, the relative strength of the U.S. dollar may be an important factor in
the performance of a Series, depending on the extent of the Series' foreign
investments.

A Series may employ certain strategies in order to manage exchange rate
risks. For example, a Series may hedge some or all of its investments
denominated in or exposed to a foreign currency against a decline in the value
of that currency. A Series may enter into contracts to sell that foreign
currency for U. S. dollars (not exceeding the value of a Series' assets
denominated in or exposed to that currency) or by participating in options or
futures contracts with respect to such currency ("position hedge"). A Series
could also hedge that position by selling a second currency, which is expected
to perform similarly to the currency in which portfolio investments are
denominated, for U.S. dollars ("proxy hedge"). A Series may also enter into a
forward contract to sell the currency in which the security is denominated for a
second currency that is expected to perform better relative to the U.S. dollar
if the sub-adviser believes there is a reasonable degree of correlation between
movements in the two currencies ("cross hedge"). A Series may also enter into a
forward contract to sell a currency in which portfolio securities are
denominated in exchange for a second currency in order to manage its currency
exposure to selected countries. In addition, when a Series anticipates
purchasing securities denominated in or exposed to a particular currency, the
Series may enter into a forward contract to purchase or sell such currency in
exchange for the dollar or another currency ("anticipatory hedge").

These strategies minimize the effect of currency appreciation as well as
depreciation, but do not protect against a decline in the underlying value of
the hedged security. In addition, such strategies may reduce or eliminate the
opportunity to profit from increases in the value of the original currency and
may adversely impact a Series' performance if the sub-adviser's projection of
future exchange rates is inaccurate.

EMERGING MARKETS

The considerations noted above under "Foreign Securities" may be
intensified in the case of investment in developing countries. Investments in
securities of issuers in emerging markets countries may involve a high degree of
risk and many may be considered speculative. These investments carry all of the
risks of investing in securities of foreign issuers to a heightened degree.
These heightened risks include (i) greater risks of expropriation, confiscatory
taxation, nationalization, and less social, political and economic stability;
(ii) limitations on daily price changes and the small current size of the
markets for securities of emerging markets issuers and the currently low or
nonexistent volume of trading, resulting in lack of liquidity and in price
volatility; (iii) certain national policies which may restrict a Series'
investment opportunities including limitations on aggregate holdings by foreign
investors and restrictions on investing in issuers or industries deemed
sensitive to relevant national interests; and (iv) the absence of developed
legal structures governing private or foreign investment and private property.

48
<PAGE> 53

FUTURES, OPTIONS AND OTHER DERIVATIVE INSTRUMENTS

The use of futures, options, forward contracts, and swaps ("derivative
instruments") exposes a Series to additional investment risks and transaction
costs. If a sub-adviser seeks to protect a Series against potential adverse
movements in the securities, foreign currency or interest rate markets using
these instruments, and such markets do not move in a direction adverse to the
Series, that Series could be left in a less favorable position than if such
strategies had not been used. Risks inherent in the use of futures, options,
forward contracts and swaps include (1) the risk that interest rates, securities
prices and currency markets will not move in the directions anticipated; (2)
imperfect correlation between the price of derivative instruments and movements
in the prices of the securities, interest rates or currencies being hedged; (3)
the fact that skills needed to use these strategies are different from those
needed to select portfolio securities; (4) the possible absence of a liquid
secondary market for any particular instrument at any time; and (5) the possible
need to defer closing out certain hedged positions to avoid adverse tax
consequences.

HIGH YIELD/HIGH RISK BONDS

Lower rated bonds involve a higher degree of credit risk, which is the risk
that the issuer will not make interest or principal payments when due. In the
event of an unanticipated default, a Series would experience a reduction in its
income, a decline in the market value of the securities so affected and a
decline in the value of its shares. More careful analysis of the financial
condition of issuers of lower rated securities is therefore necessary. During an
economic downturn or substantial period of rising interest rates, highly
leveraged issuers may experience financial stress which could adversely affect
their ability to service principal and interest payment obligations, to meet
projected business goals and to obtain additional financing.

The market prices of lower rated securities are generally less sensitive to
interest rate changes than higher rated investments, but more sensitive to
adverse economic or political changes, or individual developments specific to
the issuer. Periods of economic or political uncertainty and change can be
expected to result in volatility of prices of these securities. Since the last
major economic recession, there has been a substantial increase in the use of
high-yield debt securities to fund highly leveraged corporate acquisitions and
restructurings, so past experience with high-yield securities in a prolonged
economic downturn may not provide an accurate indication of future performance
during such periods. Lower rated securities also may have less liquid markets
than higher rated securities, and their liquidity as well as their value may be
more severely affected by adverse economic conditions. Many high-yield bonds do
not trade frequently. When they do trade, their price may be substantially
higher or lower than had been expected. A lack of liquidity also means that
judgment may play a bigger role in valuing the securities. Adverse publicity and
investor perceptions as well as new or proposed laws may also have a greater
negative impact on the market for lower rated bonds.

A Series may also invest in unrated debt securities of foreign and domestic
issuers. Unrated debt, while not necessarily of lower quality than rated
securities, may not have as broad a market. Sovereign debt of foreign
governments is generally rated by country, because these ratings do not take
into account individual factors relevant to each issue and may not be updated
regularly. Because of the size and perceived demand of the issue, among other
factors, certain municipalities may not incur the costs of obtaining a rating.
The sub-adviser will analyze the credit- worthiness of the issuer, as well as
any financial institution or other party responsible for payments on the
security, in determining whether to purchase unrated municipal bonds. (See
Appendix A for a description of bond rating categories).

HIGH YIELD FOREIGN SOVEREIGN DEBT SECURITIES

Investing in fixed and floating rate high yield foreign sovereign debt
securities will expose the Series investing in such securities to the direct or
indirect consequences of political, social or economic changes in the countries
that issue the securities. (See "Foreign Securities"). The ability and
willingness of sovereign obligors in developing and emerging market countries or
the governmental authorities that control repayment of their external debt to
pay principal and interest on such debt when due may depend on general economic

49
<PAGE> 54

and political conditions within the relevant country. Countries such as those in
which a Series may invest have historically experienced, and may continue to
experience, high rates of inflation, high interest rates, exchange rate trade
difficulties and extreme poverty and unemployment. Many of these countries are
also characterized by political uncertainty or instability. Additional factors
which may influence the ability or willingness to service debt include, but are
not limited to, a country's cash flow situation, the availability of sufficient
foreign exchange on the date a payment is due, the relative size of its debt
service burden to the economy as a whole, and its government's policy towards
the International Monetary Fund, the World Bank and other international
agencies.

HYBRID INSTRUMENTS

The risks of investing in hybrid instruments reflect a combination of the
risks of investing in securities, options, futures and currencies, including
volatility and lack of liquidity. Reference is made to the discussion of
futures, options, and forward contracts herein for a discussion of these risks.
Further, the prices of the hybrid instrument and the related commodity or
currency may not move in the same direction or at the same time. Hybrid
instruments may bear interest or pay preferred dividends at below market (or
even relatively nominal) rates. Alternatively, hybrid instruments may bear
interest at above market rates but bear an increased risk of principal loss. In
addition, because the purchase and sale of hybrid instruments could take place
in an over-the-counter or in a private transaction between the Series and the
seller of the hybrid instrument, the creditworthiness of the counter-party to
the transaction would be a risk factor which the Series would have to consider.
Hybrid instruments also may not be subject to regulation of the Commodity
Futures Trading Commission, which generally regulates the trading of commodity
futures by U.S. persons, the Securities and Exchange Commission, which regulates
the offer and sale of securities by and to U.S. persons, or any other
governmental regulatory authority.

MUNICIPAL OBLIGATIONS

In addition to the usual risks associated with income investing, the value
of municipal obligations can be affected by changes in the actual or perceived
credit quality of municipal obligations held by a Series. The credit quality of
a municipal obligation can be affected by, among other factors, the financial
condition of the issuer or guarantor, the issuer's future borrowing plans and
sources of revenue, the economic feasibility of the revenue bond project or
general borrowing purpose, political or economic developments in the region
where the security is issued, and the liquidity of the security. Because
municipal obligations are generally traded over-the-counter, the liquidity of a
particular issue often depends on the willingness of dealers to make a market in
the security. The liquidity of some municipal issues may be enhanced by demand
features, which enable a Series to demand payment on short notice from the
issuer or a financial intermediary.

WHEN-ISSUED SECURITIES

The price of such securities, which may be expressed in yield terms, is
fixed at the time the commitment to purchase is made, but delivery and payment
take place at a later date. Normally, the settlement date occurs within 90 days
of the purchase for when-issued securities, but may be substantially longer for
forward commitments. During the period between purchase and settlement, no
payment is made by the Series to the issuer and no interest accrues to the
Series. The purchase of these securities will result in a loss if their value
declines prior to the settlement date. This could occur, for example, if
interest rates increase prior to settlement. The longer the period between
purchase and settlement, the greater the risks. At the time the Series makes the
commitment to purchase these securities, it will record the transaction and
reflect the value of the security in determining its net asset value. The Series
will segregate for these securities by maintaining cash and/or liquid assets
with its custodian bank equal in value to commitments for them during the time
between the purchase and the settlement. Therefore, the longer this period, the
longer the period during which alternative investment options are not available
to the Series (to the extent of the securities used for cover). Such securities
either will mature or, if necessary, be sold on or before the settlement date.

50
<PAGE> 55

- --------------------------------------------------------------------------------
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.

JNFSI, 5901 Executive Drive, Lansing, Michigan 48911, is the investment
adviser of each Series and provides each Series with professional investment
supervision and management. JNFSI is a wholly owned subsidiary of Jackson
National Life Insurance Company, which is in turn wholly owned by Prudential
Corporation plc, the largest life insurance company in the United Kingdom. JNFSI
has been providing investment advisory services to management investment
companies since 1992 and as of December 31, 1996, had approximately $1 billion
under management.

JNFSI provides preparation of financial statements, tax services, and
regulatory reports to the Trust. JNFSI also selects, contracts with and
compensates sub-advisers to manage the investment and reinvestment of the assets
of the Series of the Trust. JNFSI monitors the compliance of such sub-advisers
with the investment objectives and related policies of each Series and reviews
the performance of such sub-advisers and reports periodically on such
performance to the Trustees of the Trust.

As compensation for its services, JNFSI receives a fee from the Trust
computed separately for each Series. The fee for each Series is stated as an
annual percentage of the current value of the net assets of the Series. The
fees, which are accrued daily and payable monthly, are calculated on the basis
of the average net assets of each Series. Once the average net assets of a
Series exceed specified amounts, the fee is reduced with respect to such excess.
The following is a schedule of the fees each Series currently is obligated to
pay JNFSI.

51
<PAGE> 56

<TABLE>
<CAPTION>
(M -- MILLION) $ 0 TO $50 M TO $100 M TO $150 M TO $200 M TO $250 M TO $300 M TO $350 M TO OVER
$50 M $100 M $150 M $200 M $250 M $300 M $350 M $500 M $500 M
% % % % % % % % %
SERIES ------ -------- --------- --------- --------- --------- --------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JNL Aggressive Growth..... .95 .95 .95 .90 .90 .90 .85 .85 .85
JNL Capital Growth........ .95 .95 .95 .90 .90 .90 .85 .85 .85
JNL Global Equities....... 1.00 1.00 1.00 .95 .95 .95 .90 .90 .90
JNL/Alger Growth.......... .975 .975 .975 .975 .975 .975 .95 .95 .90
JNL/Alliance Growth....... .775 .775 .775 .775 .775 .70 .70 .70 .70
JNL/Eagle Core Equity..... .90 .85 .85 .85 .85 .85 .75 .75 .75
JNL/Eagle SmallCap
Equity.................. .95 .95 .95 .90 .90 .90 .90 .90 .85
JNL/JPM International &
Emerging Markets........ .975 .95 .95 .95 .90 .90 .90 .85 .85
JNL/PIMCO Total Return
Bond.................... .70 .70 .70 .70 .70 .70 .70 .70 .70
JNL/Putnam Growth*........ .90 .90 .90 .85 .85 .85 .80 .80 .80
JNL/Putnam Value
Equity**................ .90 .90 .90 .85 .85 .85 .80 .80 .80
Goldman Sachs/JNL Growth &
Income.................. .925 .90 .90 .90 .85 .85 .85 .80 .80
Lazard/JNL Small Cap
Value................... 1.05 1.00 1.00 .975 .975 .975 .925 .925 .925
Lazard/JNL Mid Cap
Value................... .975 .975 .975 .925 .925 .925 .90 .90 .90
PPM America/JNL
Balanced***............. .75 .70 .70 .675 .675 .675 .65 .65 .625
PPM America/JNL High Yield
Bond.................... .75 .70 .70 .675 .675 .675 .65 .65 .625
PPM/America JNL Money
Market.................. .60 .60 .60 .575 .575 .575 .55 .55 .525
Salomon Brothers/JNL
Balanced................ .80 .75 .70 .70 .70 .70 .70 .70 .70
Salomon Brothers/JNL
Global Bond............. .85 .85 .85 .80 .80 .80 .80 .80 .75
Salomon Brothers/JNL High
Yield Bond.............. .80 .75 .70 .70 .70 .70 .70 .70 .70
Salomon Brothers/JNL U.S.
Government & Quality
Bond.................... .70 .70 .70 .65 .65 .65 .60 .60 .55
T. Rowe Price/JNL
Established Growth...... .85 .85 .85 .80 .80 .80 .80 .80 .80
T. Rowe Price/JNL
International Equity
Investment.............. 1.10 1.05 1.05 1.00 1.00 1.00 .95 .95 .90
T. Rowe Price/JNL Mid-Cap
Growth.................. .95 .95 .95 .90 .90 .90 .90 .90 .90
</TABLE>

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

* Prior to May 1, 1997, the fee for the JNL/Putnam Growth Series was .90%,
.85%, .80%, .75%, and .70%, respectively.

** Prior to May 1, 1997, the fee for the JNL/Putnam Value Equity Series was
.75%, .70%, .675%, .65% and .625%, respectively.

*** Prior to May 1, 1997, the fee for the PPM America/JNL Balanced Series was
.90%, .80%, .75%, .70% and .65%, respectively.

52
<PAGE> 57

INVESTMENT SUB-ADVISERS

The organizations described below act as sub-advisers to the Trust and
certain of its Series pursuant to Sub-Advisory Agreements with JNFSI. Under the
Sub-Advisory Agreements, the sub-advisers manage the investment and reinvestment
of the assets of the respective Series for which they are responsible. Each of
the sub-advisers discharges its responsibilities subject to the policies of the
Trustees and the oversight and supervision of JNFSI, which pays the
sub-advisers' fees.

Alliance Capital Management L.P. ("Alliance"), with principal offices at
1345 Avenue of the Americas, New York, New York 10105, serves as sub-adviser to
the JNL/Alliance Growth Series. Alliance is a major international investment
manager, supervising client accounts with assets totaling over $199 billion as
of September 30, 1997. Alliance serves its clients, who primarily are major
corporate employee benefit funds, investment companies, foundations, endowment
funds and public employee retirement systems, with a staff of more than 1,500
employees. Alliance has five U.S. offices and its subsidiaries have nine offices
outside the U.S. The 54 registered investment companies managed by Alliance,
comprising 116 separate investment portfolios, currently have over 1 million
shareholders. As of September 30, 1997, Alliance was retained as an investment
manager of employee benefit fund assets for 29 of the Fortune 100 companies.

Eagle Asset Management, Inc. ("Eagle"), 880 Carillion Parkway, St.
Petersburg, Florida 33716, serves as sub-adviser to the JNL/Eagle Core Equity
Series and the JNL/Eagle SmallCap Equity Series. Eagle is a wholly-owned
subsidiary of Raymond James Financial, Inc., which, together with its
subsidiaries, provides a wide range of financial services to retail and
institutional clients. Eagle manages client accounts with net assets totaling
approximately $2.7 billion as of December 31, 1996.

Fred Alger Management, Inc., ("Alger Management") which is located at 75
Maiden Lane, New York, New York 10038, serves as sub-adviser to the JNL/Alger
Growth Series. Alger Management is generally engaged in the business of
rendering investment advisory services to institutions and, to a lesser extent,
individuals. Alger Management has been engaged in the business of rendering
investment advisory services since 1964 and, as of December 31, 1996, had
approximately $7.1 billion under management, $5.2 billion in mutual fund
accounts and $1.9 billion in other advisory accounts. Alger Management is a
wholly owned subsidiary of Fred Alger & Company, Inc. which in turn is a wholly
owned subsidiary of Alger Associates, Inc., a financial services holding
company. Fred M. Alger III and his brother, David D. Alger are majority
shareholders of Alger Associates, Inc. and may be deemed to control that company
and its subsidiaries.

Goldman Sachs Asset Management ("Goldman Sachs"), One New York Plaza, New
York, New York 10004, serves as sub-adviser to the Goldman Sachs/JNL Growth &
Income Series. Goldman Sachs is a separate operating division of Goldman, Sachs
& Co. Goldman Sachs provides a wide range of fully discretionary investment
advisory services including quantitatively driven and actively managed U.S. and
international equity portfolios, U.S. and global fixed income portfolios,
commodity and currency products, and money markets. Goldman Sachs is responsible
for more than $100 billion in assets as of January 1997.

Janus Capital Corporation ("Janus Capital"), a Colorado corporation with
principal offices at 100 Fillmore Street, Denver, Colorado 80206, serves as sub-
adviser to the JNL Capital Growth Series, the JNL Aggressive Growth Series and
the JNL Global Equities Series. Janus Capital is an investment adviser with
approximately $50 billion in assets under management. Kansas City Southern
Industries, Inc. ("KCSI") owns approximately 83% of the outstanding voting stock
of Janus Capital, most of which it acquired in 1984. KCSI is a publicly-traded
holding company whose primary subsidiaries are engaged in transportation and
financial services. Thomas H. Bailey, President and Chairman of the Board of
Janus Capital, owns approximately 12% of its voting stock and, by agreement with
KCSI, selects a majority of Janus Capital's Board.

J.P. Morgan Investment Management Inc. ("JPM"), with principal offices at
522 Fifth Avenue, New York, New York 10236, serves as sub-adviser to the JNL/JPM
International & Emerging Markets Series. JPM is a wholly-owned subsidiary of
J.P. Morgan & Co. Incorporated, a bank holding

53
<PAGE> 58

company that also owns Morgan Guaranty Trust Company, J.P. Morgan Securities
Inc. and J.P. Morgan Futures Inc. JPM and its affiliates offer a wide range of
services to governmental, institutional, corporate and individual customers and
act as investment advisor to individual and institutional customers with
combined assets under management of $234 billion as of June 30, 1997.

Lazard Asset Management ("Lazard"), 30 Rockefeller Plaza, New York, New
York 10112, serves as sub-adviser to the Lazard/JNL Small Cap Value Series and
the Lazard/JNL Mid Cap Value Series. Lazard is a division of Lazard Freres & Co.
("Lazard Freres"), a New York limited liability company, which is registered as
an investment adviser with the SEC and is a member of the New York, American and
Midwest Stock Exchanges. Lazard Freres provides its clients with a wide variety
of investment banking, brokerage and related services. Lazard provides
investment management services to client discretionary accounts with assets
totaling approximately $53 billion as of June 30, 1997. Its clients are both
individuals and institutions.

Pacific Investment Management Company ("PIMCO"), located at 840 Newport
Center Drive, Suite 360, Newport Beach, California 92660, serves as sub-adviser
to the JNL/PIMCO Total Return Bond Series. PIMCO is an investment counseling
firm founded in 1971, and had approximately $92 billion in assets under
management as of March 31, 1997. PIMCO is a subsidiary partnership of PIMCO
Advisors L.P. A majority interest in PIMCO Advisors L.P. is held by PIMCO
Partners, G.P., a general partnership between Pacific Investment Management
Company, a California corporation and indirect wholly owned subsidiary of
Pacific Mutual Life Insurance Company, and PIMCO Partners, LLC, a limited
liability company controlled by the PIMCO Managing Directors.

PPM America, Inc. ("PPM"), which is located at 225 West Wacker Drive,
Chicago, Illinois 60606, serves as sub-adviser to the PPM America/JNL Balanced
Series*, the PPM America/JNL High Yield Bond Series and the PPM America/JNL
Money Market Series. PPM, an affiliate of JNFSI, is a wholly owned subsidiary of
Prudential Portfolio Managers Ltd., ("PPM Ltd.") an investment management
company engaged in global money management, which is in turn wholly owned by
Prudential Corporation plc. PPM Ltd. and its subsidiaries manage over $120
billion in various currencies and markets. PPM currently manages over $26
billion of Jackson National Life Insurance Company assets. Additionally, PPM
manages assets of over $5.7 billion for other affiliated companies and over $878
million for non-affiliated entities.

Putnam Investment Management, Inc. ("Putnam"), located at One Post Office
Square, Boston, Massachusetts 02109, serves as sub-adviser to the JNL/Putnam
Growth Series* and the JNL/Putnam Value Equity Series*. Putnam has been managing
mutual funds since 1937. Putnam and its affiliates had approximately $173
billion in assets under management as of December 31, 1996. Putnam is a
subsidiary of Putnam Investment, Inc., which is wholly owned by Marsh & McLennan
Companies, Inc., a publicly-owned holding company whose principal businesses are
international insurance and reinsurance brokerage, employee benefit consulting
and investment management.

Rowe Price-Fleming International, Inc. ("Price-Fleming"), located at 100
East Pratt Street, Baltimore, Maryland 21202, serves as sub-adviser to the T.
Rowe Price/JNL International Equity Investment Series. Price-Fleming was founded
in 1979 as a joint venture between T. Rowe Price Associates, Inc. and Robert
Fleming Holdings Limited. Price-Fleming is one of America's largest
international mutual fund asset managers with approximately $18 billion under
management in its offices in Baltimore, London, Tokyo, Hong Kong and Singapore.

Salomon Brothers Asset Management Inc ("SBAM") serves as sub-adviser to the
Salomon Brothers/JNL Balanced Series, the Salomon Brothers/JNL Global Bond
Series, the Salomon Brothers/JNL High Yield Bond Series and the Salomon
Brothers/JNL U.S. Government & Quality Bond

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

*Prior to May 1, 1997, Phoenix Investment Counsel, Inc. served
as sub-adviser to the PPM America/JNL Balanced Series and the JNL/Putnam Growth
Series, and PPM served as sub-adviser to the JNL/Putnam Value Equity Series.

54
<PAGE> 59

Series. SBAM is an indirect, wholly owned subsidiary of Salomon Brothers Holding
Company Inc. which is, in turn, wholly owned by Salomon Inc. ("SI"). SBAM was
incorporated in 1987, and, together with affiliates in London, Frankfurt, Tokyo
and Hong Kong, SBAM provides a broad range of fixed income and equity investment
advisory services to various individual and institutional clients located
throughout the world and serves as sub-advisor to various investment companies.
In providing such investment advisory services, SBAM has access to SI's more
than 400 economists, mortgage bond, sovereign and equity analysts. As of
December 31, 1996, SBAM and its worldwide investment affiliates managed
approximately $17.8 billion. SBAM's business offices are located at 7 World
Trade Center, New York, New York 10048.

In connection with SBAM's service as sub-adviser to the Salomon
Brothers/JNL Global Bond Series, SBAM Limited, whose business address is
Victoria Plaza, 111 Buckingham Palace Road, London SW1W OSB, England, provides
certain sub-advisory services to SBAM relating to currency transactions and
investments in non-dollar denominated debt securities for the benefit of the
Series. SBAM Limited is compensated by SBAM at no additional expense to the
Trust. Like SBAM, SBAM Limited is an indirect, wholly-owned subsidiary of
Salomon Brothers Holding Company Inc. SBAM Limited is a member of the Investment
Management Regulatory Organization Limited in the United Kingdom and is
registered as an investment adviser in the United States pursuant to the
Investment Advisers Act of 1940, as amended.

On September 24, 1997, Travelers Group ("Travelers") and SI, the ultimate
parent company of SBAM, announced their agreement to merge SI with and into
Smith Barney Holdings Inc., a subsidiary of Travelers, to form a new company
expected to be called Salomon Smith Barney Holdings Inc. (the "Transaction").
Travelers is a diversified financial services company engaged in the investment
services, asset management, consumer finance and life and property casualty
insurance services. The Transaction is expected to be completed by November 30,
1997, subject to a number of conditions, including the receipt of U.S. and
foreign regulatory approvals and the approval of SI stockholders. Upon
consummation of the Transaction, Travelers will become the ultimate parent of
SBAM, which will continue to serve as investment adviser to the Series SBAM
advises.

T. Rowe Price Associates, Inc. ("T. Rowe"), located at 100 East Pratt
Street, Baltimore, Maryland 21202, serves as sub-adviser to the T. Rowe
Price/JNL Established Growth Series and the T. Rowe Price/JNL Mid-Cap Growth
Series. T. Rowe was founded in 1937 by the late Thomas Rowe Price, Jr. T. Rowe
and its affiliates manage over $95 billion for approximately 4.5 million
individual and institutional investor accounts, including limited and real
estate partnerships and other mutual funds.

PORTFOLIO MANAGEMENT

The following individuals are primarily responsible for the day-to-day
management of the particular Series as indicated below.

JNL GLOBAL EQUITIES SERIES

Helen Young Hayes is responsible for the day-to-day management of the JNL
Global Equities Series. Ms. Hayes joined Janus Capital in 1987. She holds a
Bachelor of Arts in Economics from Yale University and is a Chartered Financial
Analyst.

JNL CAPITAL GROWTH SERIES

James P. Goff is responsible for the day-to-day management of the JNL
Capital Growth Series. Mr. Goff joined Janus Capital in 1988. He holds a
Bachelor of Arts in Economics from Yale University and is a Chartered Financial
Analyst.

JNL AGGRESSIVE GROWTH SERIES

Warren B. Lammert is responsible for the day-to-day management of the JNL
Aggressive Growth Series. Mr. Lammert joined Janus Capital in 1987. He holds a
Bachelor of Arts in Economics from Yale University and a Master of Science in
Economic History from the London School of Economics. He is a Chartered
Financial Analyst.

55
<PAGE> 60

JNL/ALGER GROWTH SERIES

David D. Alger, President and Chief Investment Officer of Alger
Management, is primarily responsible for the day-to-day management of the
JNL/Alger Growth Series. He has been employed by Alger Management as Executive
Vice President and Director of Research since 1971 and he serves as portfolio
manager for other mutual funds and investment accounts managed by Alger
Management. Also participating in the management of the Series are Ronald
Tartaro and Seilai Khoo. Mr. Tartaro has been employed by Alger Management
since 1990 and he serves as a senior research analyst. Prior to 1990, he was a
member of the technical staff at AT&T Bell Laboratories. Ms. Khoo has been
employed by Alger Management since 1989 and she serves as a senior research
analyst.

JNL/ALLIANCE GROWTH SERIES

James G. Reilly, Senior Vice President of Alliance, is responsible for the
day-to-day management of the JNL/Alliance Growth Series. Mr. Reilly joined
Alliance in 1984.

JNL/EAGLE CORE EQUITY SERIES

In its capacity as sub-adviser, Eagle supervises and manages the investment
portfolio of the JNL/Eagle Core Equity Series. Eagle utilizes a team of senior
portfolio managers acting together to manage the assets of the Series. The team
meets regularly to review portfolio holdings and to discuss purchase and sale
activity. The team adjusts holdings in the portfolio as it deems appropriate in
the pursuit of the Series' investment objective.

JNL/EAGLE SMALLCAP EQUITY SERIES

Bert L. Boksen, Senior Vice President and Portfolio Manager of Eagle, is
responsible for the day-to-day management of the JNL/Eagle SmallCap Equity
Series. Mr. Boksen joined Eagle in April 1995 and has portfolio management
responsibilities for its small cap equity accounts. Prior to joining Eagle, Mr.
Boksen was employed for 16 years by Raymond James & Associates, Inc. in its
institutional research and sales department. While employed by Raymond James &
Associates, Inc., Mr. Boksen served as co-head of Research, Chief Investment
Officer and Chairman of the Raymond James & Associates, Inc. Focus List
Committee.

JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES

Paul A. Quinsee, Vice President of JPM, and Rudi Leuthold, Managing
Director of JPM, share the responsibility for the day-to-day management of the
JNL/JPM International & Emerging Markets Series. Mr. Quinsee has been employed
by JPM since February 1992 as a portfolio manager of international equity
investments. Mr. Leuthold has been employed by JPM since prior to 1992 as a
portfolio manager of international equity investments.

JNL/PIMCO TOTAL RETURN BOND SERIES

William H. Gross, Managing Director of PIMCO, is responsible for the
day-to-day management of the JNL/PIMCO Total Return Bond Series. A Fixed Income
Portfolio Manager, Mr. Gross is one of the founders of PIMCO.

JNL/PUTNAM GROWTH SERIES

Carol C. McMullen has responsibility for the day-to-day management of the
JNL/Putnam Growth Series. Ms. McMullen has been a Managing Director of Putnam
since 1995. Prior to joining Putnam, Ms. McMullen was Senior Vice President of
Baring Asset Management. Ms. McMullen has had responsibility for the day-to-day
management of the JNL/Putnam Growth Series since May 1, 1997.

JNL/PUTNAM VALUE EQUITY SERIES

Anthony I. Kreisel a Managing Director of Putnam, has responsibility for
the day-to-day management of the JNL/Putnam Value Equity Series. Mr. Kreisel has
been an investment professional at Putnam since 1986. Mr. Kreisel has had
responsibility for the day-to-day management of the JNL/Putnam Value Equity
Series since May 1, 1997.

56
<PAGE> 61

GOLDMAN SACHS/JNL GROWTH & INCOME SERIES

G. Lee Anderson, Vice President of Goldman Sachs, Eileen A. Aptman, Vice
President of Goldman Sachs, and Ronald E. Gutfleish, Vice President of Goldman
Sachs, share the responsibility for the day-to-day management of the Goldman
Sachs/JNL Growth & Income Series. Mr. Anderson joined Goldman Sachs in 1992.
Prior to 1992, he was a research analyst in the Investment Research Department
of Goldman, Sachs & Co. Ms. Aptman joined the Investment Adviser in 1993. Prior
to 1993, she was an equity analyst at Delphi Management. Mr. Gutfleish joined
Goldman Sachs in 1993. Prior to 1993, he was a principal of Sanford C. Bernstein
& Co. in its Investment Management Research Department.

LAZARD/JNL SMALL CAP VALUE SERIES

Herbert W. Gullquist and Eileen Alexanderson share primary responsibility
for the day-to-day management of the Lazard/JNL Small Cap Value Series. Mr.
Gullquist has been with Lazard since 1982. He has been a Managing Director of
Lazard since January 1994; prior thereto, he was Vice President of Lazard. Ms.
Alexanderson has been with Lazard since 1979. She has been a Managing Director
since January 1997; prior thereto, Ms. Alexanderson was a Vice President of
Lazard.

LAZARD/JNL MID CAP VALUE SERIES

Herbert W. Gullquist and Eileen Alexanderson share primary responsibility
for the day to day management of the JNL/Lazard Mid Cap Value Series. Mr.
Gullquist has been with Lazard since 1982. He has been a Managing Director of
Lazard since January 1994; prior thereto, Mr. Gullquist was Vice President of
Lazard. Ms. Alexanderson has been with Lazard since 1979. She has been a
Managing Director since January 1997; prior thereto, Ms. Alexanderson was a Vice
President of Lazard.

PPM AMERICA/JNL BALANCED SERIES

PPM AMERICA/JNL HIGH YIELD BOND SERIES

PPM AMERICA/JNL MONEY MARKET SERIES

In its capacity as sub-adviser, PPM supervises and manages the investment
portfolios of the PPM America/JNL Balanced Series, the PPM America/JNL High
Yield Bond Series and the PPM America/JNL Money Market Series and directs the
purchase and sale of each Series' investment securities. PPM utilizes teams of
investment professionals acting together to manage the assets of the Series. The
teams meet regularly to review portfolio holdings and to discuss purchase and
sale activity. The teams adjust holdings in the portfolios as they deem
appropriate in the pursuit of the Series' investment objectives. PPM has
supervised and managed the investment portfolio of the PPM America/JNL Balanced
Series since May 1, 1997, and has supervised and managed the investment
portfolios of the PPM America/JNL High Yield Bond Series and the PPM America/JNL
Money Market Series since the commencement of operations of each Series.

SALOMON BROTHERS/JNL BALANCED SERIES

SALOMON BROTHERS/JNL GLOBAL BOND SERIES

SALOMON BROTHERS/JNL HIGH YIELD BOND SERIES

SALOMON BROTHERS/JNL U.S. GOVERNMENT & QUALITY BOND SERIES

Richard E. Dahlberg is primarily responsible for the day-to-day management
of the Salomon Brothers/JNL Balanced Series. Prior to joining SBAM in July 1995,
Mr. Dahlberg was employed by Massachusetts Financial Services Company since
1968. Mr. Dahlberg had been primarily responsible for the day-to-day management
of the MFS Total Return Fund for ten years prior to joining SBAM.

57
<PAGE> 62

Steven Guterman is primarily responsible for the day-to-day management of
the Salomon Brothers/JNL U.S. Government & Quality Bond Series and the
mortgage-backed securities and U.S. Government securities portions of the
Salomon Brothers/JNL Global Bond Series. Mr. Guterman co-manages the Salomon
Brothers/JNL U.S. Government & Quality Bond Series with Roger Lavan.

Mr. Guterman, who joined SBAM in 1990, is a Managing Director of Salomon
Brothers Inc and a Managing Director and Senior Portfolio Manager of SBAM,
responsible for SBAM's investment company and institutional portfolios which
invest primarily in mortgage-backed securities and U.S. Government issues. Mr.
Guterman also serves as portfolio manager for two offshore mortgage funds and a
number of institutional clients. Mr. Guterman joined Salomon Brothers Inc in
1983, working initially in the mortgage research group where he became a
Research Director and later traded derivative mortgage-backed securities.

Mr. Lavan joined SBAM in 1990 and is a Portfolio Manager and Quantitative
Fixed Income Analyst, responsible for working for senior portfolio managers to
monitor and analyze market relationships and identify and implement relative
value transactions in SBAM's investment company and institutional portfolios
which invest in mortgage-backed securities and U.S. Government securities. Prior
to joining SBAM, Mr. Lavan spent four years analyzing portfolios for Salomon
Brothers Inc's Fixed Income Sales Group and Product Support Divisions.

Peter J. Wilby is primarily responsible for the day-to-day management of
the Salomon Brothers/JNL High Yield Bond Series and the high yield and emerging
market debt securities portions of the Salomon Brothers/JNL Global Bond Series.
Beth Semmel assists Mr. Wilby in the day-to-day management of the Salomon
Brothers/JNL Global Bond Series. Mr. Wilby, who joined SBAM in 1989, is a
Managing Director of Salomon Brothers Inc and SBAM and Senior Portfolio Manager
of SBAM, is responsible for investment company and institutional portfolios
which invest in high yield non-U.S. and U.S. corporate debt securities and high
yield foreign sovereign debt securities. From 1984 to 1989, Mr. Wilby was
employed by Prudential Capital Management Group ("Prudential") where he served
as Director of Prudential's credit research unit and as a corporate and
sovereign credit analyst with Prudential. Mr. Wilby also managed high yield
bonds and leveraged equities in the mutual funds and institutional portfolios at
Prudential. Ms. Semmel is a Director and Portfolio Manager of SBAM and a
Director of Salomon Brothers Inc. Ms. Semmel joined SBAM in May of 1993, where
she manages high yield portfolios. Prior to joining SBAM, Ms. Semmel spent four
years as a high yield bond analyst at Morgan Stanley Asset Management.

David J. Scott is primarily responsible for currency transactions and
investments in non-dollar denominated debt securities for the Salomon
Brothers/JNL Global Bond Series. Prior to joining SBAM Limited in April 1994,
Mr. Scott worked for four years at JP Morgan Investment Management ("JP Morgan")
where he was responsible for global and non-dollar portfolios for clients
including departments of various governments, pension funds and insurance
companies. Before joining JP Morgan, Mr. Scott worked for three years at Mercury
Asset Management where he was responsible for captive insurance portfolios and
products.

T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES

Robert W. Smith is responsible for the day-to-day management of the T. Rowe
Price/JNL Established Growth Series. Mr. Smith is a Vice President and Equity
Portfolio Manager for T. Rowe and Price-Fleming. He is also responsible for the
North American component of other investment company and institutional client
portfolios. Prior to joining T. Rowe in 1992, Mr. Smith was employed as an
Investment Analyst for Massachusetts Financial Services. He earned a BS (finance
and economics) from the University of Delaware and an MBA (finance) from the
Darden Graduate School of Business Administration, University of Virginia. Mr.
Smith has had responsibility for the day-to-day management of the T. Rowe
Price/JNL Established Growth Series since February 21, 1997.

58
<PAGE> 63

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

The T. Rowe Price/JNL International Equity Investment Series has an
investment advisory group that has day-to-day responsibility for managing the
Series and developing and executing the Series' investment program. The Series'
advisory group is composed of the following members: Martin G. Wade, Christopher
D. Alderson, Peter B. Askew, Mark J.T. Edward, John R. Ford, James B.M. Seddon,
Benedict R.F. Thomas, and David J.J. Warren.

Martin Wade joined Price-Fleming in 1979 and has 26 years of experience
with the Fleming Group in research, client service, and investment management.
(Fleming Group includes Robert Fleming and/or Jardine Fleming Group Limited).
Christopher Alderson joined Price-Fleming in 1988 and has nine years of
experience with the Fleming Group in research and portfolio management. Peter
Askew joined Price-Fleming in 1988 and has 20 years of experience managing
multi-currency fixed income portfolios. Mark Edwards joined Price-Fleming in
1986 and has 14 years of experience in financial analysis. John Ford joined
Price-Fleming in 1982 and has 15 years of experience with the Fleming Group in
research and portfolio management. James Seddon joined Price-Fleming in 1987 and
has eight years of experience in investment management. Benedict Thomas joined
Price-Fleming in 1988 and has six years of portfolio management experience.
David Warren joined Price-Fleming in 1984 and has 15 years of experience in
equity research, fixed income research and portfolio management.

T. ROWE PRICE/JNL MID-CAP GROWTH SERIES

The T. Rowe Price/JNL Mid-Cap Growth Series has an Investment Advisory
Committee composed of the following members: Brian W. Berghuis, Chairman, James
A.C. Kennedy, and John F. Wakeman. The Committee Chairman has day to day
responsibility for managing the Series and works with the Committee in
developing and executing the Series' investment program. Mr. Berghuis has been
managing investments since joining T. Rowe in 1985.

SUB-ADVISORY ARRANGEMENTS

Under the terms of each of the Sub-Advisory Agreements, the sub-adviser
manages the investment and reinvestment of the assets of the assigned Series,
subject to the supervision of the Trustees of the Trust. The sub-adviser
formulates a continuous investment program for each such Series consistent with
its investment objectives and policies outlined in this Prospectus. Each
sub-adviser implements such programs by purchases and sales of securities and
regularly reports to JNFSI and the Trustees of the Trust with respect to the
implementation of such programs.

As compensation for their services, the sub-advisers receive fees from
JNFSI computed separately for each Series. The fee for each Series is stated as
an annual percentage of the current value of the net assets of such Series. The
fees are calculated on the basis of the average of all valuations of net assets
of each Series made at the close of business on each business day of the Trust
during the period for which such fees are paid through the date of calculation.
Once the average net assets of a Series exceed specified amounts, the fee is
reduced with respect to such excess. The following is a schedule of the
management fees JNFSI currently is obligated to pay the sub-advisers out of the

advisory fee it receives from each Series as specified above:

59
<PAGE> 64

<TABLE>
<CAPTION>
(M -- MILLION) $0 TO $50 M TO $100 M TO $150 M TO $200 M TO $250 M TO $300 M TO $350 M TO OVER
$50 M $100 M $150 M $200 M $250 M $300 M $350 M $500 M $500 M
% % % % % % % % %
SERIES ----- -------- --------- --------- --------- --------- --------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JNL Aggressive Growth.... .55 .55 .50 .50 .50 .50 .50 .50 .45
JNL Capital Growth....... .55 .55 .50 .50 .50 .50 .50 .50 .45
JNL Global Equities...... .55 .55 .50 .50 .50 .50 .50 .50 .45
JNL/Alger Growth......... .55 .55 .55 .55 .55 .55 .50 .50 .45
JNL/Alliance Growth...... .35 .35 .35 .35 .35 .25 .25 .25 .25
JNL/Eagle Core Equity.... .45 .40 .40 .40 .40 .40 .30 .30 .30
JNL/Eagle SmallCap
Equity................. .50 .50 .50 .45 .45 .45 .45 .45 .40
JNL/JPM International &
Emerging Markets....... .55 .50 .50 .50 .45 .45 .45 .40 .40
JNL/PIMCO Total Return
Bond................... .25 .25 .25 .25 .25 .25 .25 .25 .25
JNL/Putnam Growth*....... .50 .50 .50 .45 .45 .45 .35 .35 .35
JNL/Putnam Value
Equity**............... .50 .50 .50 .45 .45 .45 .35 .35 .35
Goldman Sachs/JNL Growth
& Income............... .50 .45 .45 .45 .40 .40 .40 .35 .35
Lazard/JNL Small Cap
Value.................. .625 .575 .575 .525 .525 .525 .475 .475 .475
Lazard/JNL Mid Cap
Value.................. .55 .525 .525 .475 .475 .475 .45 .45 .45
PPM America/JNL
Balanced*.............. .25 .20 .20 .175 .175 .175 .15 .15 .125
PPM America/JNL High
Yield Bond............. .25 .20 .20 .175 .175 .175 .15 .15 .125
PPM America/JNL Money
Market................. .20 .15 .15 .125 .125 .125 .10 .10 .075
Salomon Brothers/JNL
Balanced............... .35 .30 .25 .25 .25 .25 .25 .25 .25
Salomon Brothers/JNL
Global Bond............ .375 .35 .35 .30 .30 .30 .30 .30 .25
Salomon Brothers/JNL High
Yield Bond............. .35 .30 .25 .25 .25 .25 .25 .25 .25
Salomon Brothers/JNL U.S.
Government & Quality
Bond................... .225 .225 .225 .175 .175 .175 .15 .15 .10
</TABLE>

T. Rowe Price/JNL Established Growth Series................. .45% .40% .40%*** .40%
T. Rowe Price/JNL International Equity Investment Series.... .75% .60% .50% .50%***
T. Rowe Price/JNL Mid-Cap Growth Series..................... .60% .50% .50%*** .50%
</TABLE>

* Prior to May 1, 1997, the sub-advisory fees for these Series were payable
to Phoenix Investment Counsel, Inc. and were: $0 to $50 million -- .50%;
$50 to $150 million -- .40%; $150 to $300 million -- .30%; $300 to $500
million -- .25%; over $500 million -- .20%.

** Prior to May 1, 1997, the sub-advisory fee for this Series was payable to
PPM and was: $0 to $50 million -- .25%; $50 to $150 million -- .20%; $150
to $300 million -- .175%; $300 to $500 million -- .15%; over $500 million
-- .125%.

*** When average assets exceed this amount, the sub-advisory fee asterisked is
applicable to all amounts in this Series.

60
<PAGE> 65

The sub-advisory fees payable to a sub-adviser may be reduced as agreed to
by the parties from time to time. With respect to the Salomon Brothers/JNL
Global Bond Series and in connection with the advisory consulting agreement
between Salomon Brothers and SBAM Limited, Salomon Brothers will pay SBAM
Limited, as full compensation for all services provided under the advisory
consulting agreement, a portion of its investment management fee. The amount
payable to SBAM Limited will be equal to the fee payable under Salomon Brothers'
sub-advisory agreement multiplied by the portion of the assets of the Series
that SBAM Limited has been delegated to manage divided by the current value of
the net assets of the Series.

OTHER TRUST EXPENSES

In addition to the investment advisory fee, the Trust incurs expenses,
including legal, auditing and accounting expenses, Trustees' fees and expenses,
insurance premiums, brokers' commissions, taxes and governmental fees, expenses
of issue or redemption of shares, expenses of registering or qualifying shares
for sale, reports and notices to shareholders, and fees and disbursements of
custodians, transfer agents, registrars, shareholder servicing agents and
dividend disbursing agents, and certain expenses with respect to membership fees
of industry associations.

61
<PAGE> 66

- --------------------------------------------------------------------------------
INVESTMENT IN TRUST SHARES
- --------------------------------------------------------------------------------

An insurance company purchases the shares of the Series at their net asset
value using premiums received on Policies issued by Accounts. These Accounts are
funded by shares of the Trust. There is no sales charge. All shares are sold at
net asset value.

The net asset value per share of each Series is determined at the close of
regular trading on the New York Stock Exchange (normally 4:00 p.m., Eastern
time) each day that the New York Stock Exchange is open. The net asset value per
share is calculated by adding the value of all securities and other assets of a
Series, deducting its liabilities, and dividing by the number of shares
outstanding.

Shares of the Trust are currently sold primarily to separate accounts of
Jackson National Life Insurance Company, 5901 Executive Drive, Lansing, Michigan
48911 to fund the benefits under variable insurance or annuity Policies.
Further, it is anticipated that shares of the Trust will be sold to certain
qualified retirement plans.

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

- --------------------------------------------------------------------------------
SHARE REDEMPTION
- --------------------------------------------------------------------------------

An insurance company separate account redeems shares to make benefit or
surrender payments under the terms of its Policies. Redemptions are processed on
any day on which the Trust is open for business and are effected at net asset
value next determined after the redemption order, in proper form, is received by
the Trust's transfer agent.

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

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

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

- during any period when the SEC 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 each Series 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 a Series represents an equal proportional interest
in that Series with each other share. The Trust reserves the right to create a
number of different Series. In that case, the shares of each Series would
participate equally in the earnings, dividends, and assets of the particular
Series. Upon liquidation of a Series, its shareholders are entitled to share pro
rata in the net assets of such Series available for distribution to

shareholders.

62
<PAGE> 67

SERIES TRANSACTIONS -- The Trust's portfolio transactions are executed
through brokers who are considered by the appropriate sub-adviser as able to
provide execution at the most favorable prices and in the most effective manner.
Portfolio security transactions may be executed through brokers who are
affiliated with the Trust, JNFSI or a sub-adviser. In addition, brokers may be
selected taking into account such brokers' assistance in the purchase of
variable annuity contracts funded by the Trust (although such assistance or
absence thereof is neither a qualifying nor a disqualifying factor in such
selection). See the Statement of Additional Information for more detailed
information.

VOTING RIGHTS -- Except for matters affecting a particular Series, as
described below, 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. No amendment may be made to the Declaration of Trust without the
affirmative vote of a majority of the outstanding shares of the Trust, except
that amendments to conform the Declaration to the requirements of applicable
federal laws or regulations or the regulated investment company provisions of
the Code may be made by the Trustees without the vote or consent of
shareholders. If not terminated by the vote or written consent of a majority of
its outstanding shares, the Trust will continue indefinitely.

In matters affecting only a particular Series, the matter shall have been
effectively acted upon by a majority vote of that Series even though: (1) the
matter has not been approved by a majority vote of any other Series; or (2) the
matter has not been approved by a majority vote of the Trust.

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 and also provides for the
Trust to reimburse the shareholder for all legal and other expenses reasonably
incurred in connection with any such claim or liability.

- --------------------------------------------------------------------------------
PERFORMANCE ADVERTISING FOR THE SERIES
- --------------------------------------------------------------------------------

The Trust may from time to time advertise several types of historical
performance for the Series. The performance advertised will be based on
historical results and is not intended to indicate future performance. The
performance figures advertised for a Series may or may not reflect the effect of
any charges that are imposed under a variable annuity or variable life contract
that is funded by the Trust. Such charges,

63
<PAGE> 68

described in the variable annuity or variable life prospectus, will have the
effect of reducing the performance described below.

Each Series may advertise standardized average annual total return,
calculated in a manner prescribed by the Securities and Exchange Commission, and
non-standardized total return. Standardized average annual total return will
show the percentage rate of return of a hypothetical initial investment of
$1,000 for the most recent one, five and ten year periods, or for a period
covering the time the Series has been in existence if the Series has not been in
existence for one of the prescribed periods. Because average annual total
returns tend to smooth out variations in the Series' returns, you should
recognize that they are not the same as actual year-by-year results.
Non-standardized total return may be for periods other than those required to be
presented or may otherwise differ from standardized average annual total return.

Each Series may also advertise yield, and the PPM America/JNL Money Market
Series may also advertise effective yield. Yield, as calculated by each Series
other than the PPM America/JNL Money Market Series, refers to the annualized
income generated by an investment in the Series over a specified thirty-day
period. The yield is calculated by assuming that the income generated by the
investment during that thirty-day period is generated each thirty-day period
over a twelve-month period and is shown as a percentage of the investment.
Yield, as calculated by the PPM America/JNL Money Market Series, is a measure of
the net dividend and interest income earned over a specific seven-day period
expressed as a percentage of the offering price of the Series. The yield is an
annualized figure, which means that it is assumed that the Series generates the
same level of net income over a 52-week period. Effective yield is calculated
under rules prescribed by the Securities and Exchange Commission and assumes a
weekly reinvestment of income earned. The effective yield will be slightly
higher than the yield due to this compounding effect. Because yield accounting
methods differ from the methods used for financial reporting and tax accounting
purposes, a Series' yield may not equal its distribution rate, the income paid
to a shareholder's account, or the income reported in the Series' financial
statements.

The performance of the Series may be compared to the performance of other
mutual funds or mutual fund indices with similar objectives and policies as
reported by Lipper Analytical Services, 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
Series' performance may also be compared to that of the Consumer Price Index or
various unmanaged stock and bond indices including, but not limited to, Salomon
Brothers Broad Investment Grade Index, Lehman Brothers High Yield Index, Lehman
Brothers Aggregate Bond Index, Salomon Brothers Treasury Index, S&P MidCap 400
Index, Morgan Stanley Capital International World Index, Morgan Stanley Europe
and Australasia, Far East Equity Index, Russell 2000 Index, Russell Midcap
Index, and S&P 500 Index.

From time to time, a Series 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).

Each Series' shares are sold at net asset value. Each Series' returns will
fluctuate. Shares of a Series are redeemable by an investor at the then current
net asset value, which may be more or less than original cost. Additional
information concerning each Series' performance appears in the Statement of
Additional Information, and in the Trust's Annual Report to Shareholders which
may be obtained, without charge, by writing or calling the Trust.

64
<PAGE> 69

SHAREHOLDER INQUIRIES -- All inquiries regarding the Trust should be
directed to the Trust at the telephone number or address shown on the cover page
of this Prospectus.

- --------------------------------------------------------------------------------
TAX STATUS
- --------------------------------------------------------------------------------

The Trust's policy is to meet the requirements of Subchapter M of the
Internal Revenue Code. Each Series intends to distribute all its taxable net
investment income and capital gains to shareholders, and therefore, will not be
required to pay any federal income taxes.

Each Series of the Trust is treated as a separate entity for purposes of
the regulated investment company provisions of the Internal Revenue Code, and,
therefore, the assets, income, and distributions of each Series are considered
separately for purposes of determining whether or not the Series qualifies as a
regulated investment company.

65
<PAGE> 70

CUSTODIAN

State Street Bank and Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171

INDEPENDENT ACCOUNTANTS

Price Waterhouse LLP
100 East Wisconsin Avenue
Milwaukee, Wisconsin 53202

LEGAL COUNSEL

Blazzard, Grodd & Hasenauer, P.C.
943 Post Road East

Westport, CT 06880

INVESTMENT ADVISER AND TRANSFER AGENT

Jackson National Financial Services, Inc.
5901 Executive Drive
Lansing, Michigan 48911

66
<PAGE> 71

- --------------------------------------------------------------------------------
APPENDIX A -- RATINGS OF INVESTMENTS
- --------------------------------------------------------------------------------

COMMERCIAL PAPER RATINGS

A-1, A-2 AND PRIME-1, PRIME-2 COMMERCIAL PAPER RATINGS

Commercial paper rated by Standard & Poor's Ratings Group has the following
characteristics: Liquidity ratios are adequate to meet cash requirements.
Long-term senior debt is rated "A" or better. The issuer has access to at least
two additional channels of borrowing. Basic earnings and cash flow have an
upward trend with allowance made for unusual circumstances. Typically, the
issuer's industry is well established and the issuer has a strong position
within the industry. The reliability and quality of management are unquestioned.
Relative strength or weakness of the above factors determine whether the
issuer's commercial paper is rated A-1 or A-2.

The ratings Prime-1 and Prime-2 are the two highest commercial paper
ratings assigned by Moody's Investors Service, Inc. 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.

CORPORATE BONDS

STANDARD & POOR'S RATINGS GROUP BOND RATINGS

AAA. Debt rated AAA has the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong.

AA. Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the higher rated issued only in small degree.

A. Debt rated A has a strong capacity to pay interest and repay principal
although it is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt in higher rated categories.

BBB. Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
debt in this category than in higher rated categories.

BB, B, CCC, CC, C. Debt rated BB, B, CCC, CC, and C is regarded, on
balance, as predominantly speculative with respect to capacity to pay interest
and repay principal in accordance with the terms of the obligation. BB indicates
the lowest degree of speculation and C the highest degree of speculation. While
such debt will likely have some quality and protective characteristics, these
are outweighed by large uncertainties or major risk exposures to adverse
conditions.

CI. The rating CI is reserved for income bonds on which no interest is
being paid.

D. Debt rated D is in default, and payment of interest and/or repayment of
principal is in arrears.

A-1
<PAGE> 72

MOODY'S INVESTORS SERVICE, INC. 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.

MUNICIPAL BONDS

STANDARD & POOR'S RATINGS GROUP MUNICIPAL BOND RATINGS

AAA. Bonds rated AAA have the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong.

AA. Bonds rated AA have a very strong capacity to pay interest and repay
principal and differ from the higher rated issues only in small degree.

A. Bonds which are rated A have a strong capacity to pay interest and repay
principal although they are somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than debt in higher rated
categories.

BBB. Bonds which are rated BBB are regarded as having an adequate capacity
to pay interest and repay principal. Whereas they normally exhibit adequate
protection parameters, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity to pay interest and repay principal
for bonds in this category than for bonds in higher rated categories.

Plus (+) or Minus (-): The ratings from "AA" to "B" may be modified by the
addition of a plus or minus

A-2
<PAGE> 73

sign to show relative standing within the major rating categories.

MOODY'S INVESTORS SERVICE, INC. MUNICIPAL BOND RATINGS

NOTE: Moody's applies numerical modifiers, 1, 2 AND 3 in each generic
rating classification from "AA" through "B" in its corporate bond rating system.
The modifier 1 indicates that the security ranks in the higher end of its
generic rating category; the modifier 2 indicates a mid-range ranking; and the
modifier indicates that the issue ranks in the lower end of its generic rating
category.

A-3
<PAGE> 74
STATEMENT OF ADDITIONAL INFORMATION

JANUARY 5, 1998

JNL SERIES TRUST

JNL Aggressive Growth Series
JNL Capital Growth Series
JNL Global Equities Series
JNL/Alger Growth Series

JNL/Alliance Growth Series
JNL/Eagle Core Equity Series

JNL/Eagle SmallCap Equity Series

JNL/JPM International & Emerging Markets Series
JNL/PIMCO Total Return Bond Series
JNL/Putnam Growth Series

JNL/Putnam Value Equity Series

Goldman Sachs/JNL Growth & Income Series
Lazard/JNL Small Cap Value Series
Lazard/JNL Mid Cap Value Series
PPM America/JNL Balanced Series

PPM America/JNL High Yield Bond Series
PPM America/JNL Money Market Series

Salomon Brothers/JNL Balanced Series
Salomon Brothers/JNL Global Bond Series
Salomon Brothers/JNL High Yield Bond Series
Salomon Brothers/JNL U.S. Government & Quality Bond Series

T. Rowe Price/JNL Established Growth Series
T. Rowe Price/JNL International Equity Investment Series
T. Rowe Price/JNL Mid-Cap Growth Series

================================================================================

This Statement of Additional Information 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 Series Trust Prospectus, dated
January 5, 1998. Not all Series described in the Statement of Additional
Information may be available for investment. The Prospectus may be obtained by
calling (800) 322-8257, or writing P.O. Box 25127, Lansing, Michigan 48909.

================================================================================

TABLE OF CONTENTS

General Information and History 2
Investment Restrictions Applicable to all Series 2
Common Types of Securities 4

<PAGE> 75

Trustees and Officers of the Trust 9
Performance 11
Investment Adviser and Other Services 15
Purchases, Redemptions and Pricing of Shares 19
Additional Information 21
Tax Status 22
Financial Statements 23

GENERAL INFORMATION AND HISTORY

The JNL Series Trust ("Trust") is an open-end management investment
company organized under the laws of Massachusetts, by a Declaration of Trust,
dated June 1, 1994. The Trust offers shares in 24 separate Series, each with
its own investment objective.

INVESTMENT RESTRICTIONS APPLICABLE TO ALL SERIES

As indicated in the Prospectus, each Series 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 Trust (or a
particular Series if a matter affects just that Series), 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 Trust (or a particular Series) are
present or represented by proxy. Unless otherwise indicated, all restrictions
apply at the time of investment. As fundamental policies, no Series may:

(1) Own more than 10% of the outstanding voting securities of any one
issuer and, as to fifty percent (50%) of the value of the total assets for JNL
Capital Growth, JNL Aggressive Growth, Lazard/JNL Small Cap Value and
Lazard/JNL Mid Cap Value Series, and as to seventy-five percent (75%) of the
value of the total assets of the other Series, purchase the securities of any
one issuer (except cash items and "government securities" as defined under the
Investment Company Act of 1940, as amended (the "1940 Act")), if immediately
after and as a result of such purchase, the value of the holdings of a Series
in the securities of such issuer exceeds 5% of the value of such Series' total
assets. With respect to the other 50% of the value of its total assets, JNL
Capital Growth, JNL Aggressive Growth, Lazard/JNL Small Cap Value and
Lazard/JNL Mid Cap Value Series may invest in the securities of as few as two
issuers (not to exceed 25% in any one issuer).

(2) Invest more than 25% of the value of their respective assets in any
particular industry (other than U.S. Government securities); except the PPM
America/JNL Money Market Series.

(3) Invest directly in real estate or interests in real estate; however,
the Series may own debt or equity securities issued by companies engaged in
those businesses.

(4) Purchase or sell physical commodities other than foreign currencies
unless acquired as a result of ownership of securities (but this limitation
shall not prevent the Series from purchasing or

<PAGE> 76

selling options, futures, swaps and forward contracts or from investing in
securities or other instruments backed by physical commodities).

(5) Lend any security or make any other loan if, as a result, more than
25% of a Series' total assets would be lent to other parties (but this
limitation does not apply to purchases of commercial paper, debt securities or
repurchase agreements).

(6) Act as an underwriter of securities issued by others, except to the
extent that a Series may be deemed an underwriter in connection with the
disposition of portfolio securities of such Series.

(7) Invest more than 15% of a Series' net assets (10% in the case of the
PPM America/JNL Money Market Series and the JNL/Alger Growth Series) in
securities that are restricted as to disposition under federal securities law,
or securities with other legal or contractual restrictions on resale. This
limitation does not apply to securities eligible for resale pursuant to Rule
144A of 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) Except the JNL/Alliance Growth Series, JNL/JPM International &
Emerging Markets Series, JNL/PIMCO Total Return Bond Series, Goldman Sachs/JNL
Growth & Income Series, Lazard/JNL Small Cap Value Series, Lazard/JNL Mid Cap
Value Series, Salomon Brothers/JNL Balanced Series and Salomon Brothers/JNL
High Yield Bond Series, purchase or retain the securities of any issuer if any
of the officers, trustees or directors of all Series or the investment adviser
or sub-adviser owns beneficially more than 1/2 of 1% of the securities of such
issuer and together they own more than 5% of the securities of such issuer.

(9) The Series will not issue senior securities except that they may
borrow money for temporary or emergency purposes (not for leveraging or
investment) in an amount not exceeding 25% of the value of their respective
total assets (including the amount borrowed) less liabilities (other than
borrowings). If borrowings exceed 25% of the value of a Series' total assets
by reason of a decline in net assets, the Series 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,
deposits of assets to margin or guarantee positions in futures, options, swaps
and forward contracts, or the segregation of assets in connection with such
contracts.

The Trustees have adopted additional investment restrictions for the
Series. These restrictions are operating policies of the Series and may be
changed by the Trustees without shareholder approval. The additional
investment restrictions adopted by the Trustees to date include the following:

(a) Each Series' investments in warrants, valued at the lower of cost or
market, may not exceed 5% of the value of its net assets. Included within that
amount, but not to exceed 2% of the value of a Series' net assets, may be
warrants that are not listed on the New York or American

<PAGE> 77

Stock Exchanges. Warrants acquired by a Series in units or attached to
securities shall be deemed to be without value for the purpose of monitoring
this policy.

(b) The Series do not currently intend to sell securities short, unless
they own or have the right to obtain securities equivalent in kind and amount
to the securities sold short without the payment of any additional
consideration therefor, and provided that transactions in futures, options,
swaps and forward contracts are not deemed to constitute selling securities
short.

(c) The Series do not currently intend to purchase securities on margin,
except that the Series may obtain such short-term credits as are necessary for
the clearance of transactions, and provided that margin payments and other
deposits in connection with transactions in futures, options, swaps and forward
contracts shall not be deemed to constitute purchasing securities on margin.

(d) The Series, except the JNL/JPM International & Emerging Markets
Series, do not currently intend to (i) purchase securities of other investment
companies, except in the open market where no commission except the ordinary
broker's commission is paid, or (ii) purchase or retain securities issued by
other open-end investment companies. Limitations (i) and (ii) do not apply to
money market funds or to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.

(e) The Series do not currently intend to invest directly in oil, gas, or
other mineral development or exploration programs or leases; however, the
Series may own debt or equity securities of companies engaged in those
businesses.

(f) The Series intend to comply with the Commodity Futures Trading
Commission ("CFTC") regulations limiting a Series' investments in futures and
options for non-hedging purposes.

INSURANCE LAW RESTRICTIONS. In connection with the Trust's agreement to sell
shares to the separate accounts, Jackson National Financial Services, Inc.
("JNFSI") and the insurance companies may enter into agreements, required by
certain state insurance departments, under which JNFSI may agree to use its
best efforts to assure and to permit insurance companies to monitor that each
Series of the Trust complies with the investment restrictions and limitations
prescribed by state insurance laws and regulations applicable to the investment
of separate account assets in shares of mutual funds. If a Series failed to
comply with such restrictions or limitations, the insurance company would take
appropriate action which might include ceasing to make investments in the
Series or withdrawing from the state imposing the limitation. Such
restrictions and limitations are not expected to have a significant impact on
the Trust's operations.

COMMON TYPES OF SECURITIES

ASSET-BACKED 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

<PAGE> 78

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. Asset-backed securities may be classified as pass-through
certificates or collateralized obligations.

Pass-through certificates are asset-backed securities which 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 bear directly 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 hereof. 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. Bank obligations 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 Series may invest in U.S. banks, foreign branches of
U.S. banks, U.S. branches of foreign banks, and foreign branches of foreign
banks.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMOS). CMOs are bonds that are
collateralized by whole loan mortgages or mortgage pass-through securities.
The bonds issued in a CMO transaction are divided into groups, and each group
of bonds is referred to as a "tranche." Under the traditional CMO structure,
the cash flows generated by the mortgages or mortgage pass-through securities
in the collateral pool are used to first pay interest and then pay principal to
the CMO bondholders. The bonds issued under a CMO structure are retired
sequentially as opposed to the pro rata return of principal found in
traditional pass-through obligations. Subject to the various provisions of
individual CMO issues, the cash flow generated by the underlying collateral (to
the extent it exceeds the amount required to pay the stated interest) is used
to retire the bonds. Under the CMO structure, the repayment of principal among
the different tranches is prioritized in accordance with the terms of the
particular CMO issuance. The "fastest-pay" tranche of bonds, as specified in
the prospectus for the issue, would initially receive all principal payments.
When that tranche of bonds

<PAGE> 79

is retired, the next tranche, or tranches, in the sequence, as specified in the
prospectus, receive all of the principal payments until they are retired. The
sequential retirement of bonds groups continues until the last tranche, or
group of bonds, is retired. Accordingly, the CMO structure allows the issuer
to use cash flows of long maturity, monthly-pay collateral to formulate
securities with short, intermediate and long final maturities and expected
average lives.

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.

FOREIGN GOVERNMENT SECURITIES. Foreign government securities are issued or
guaranteed by a foreign government, province, instrumentality, political
subdivision or similar unit thereof.

HIGH YIELD BONDS. High Yield Bonds are fixed income securities offering high
current income that are in the lower rated categories of recognized rating
agencies or not rated. These lower-rated fixed income securities are
considered, on balance, as predominantly speculative with respect to capacity
to pay interest and repay principal in accordance with the terms of the
obligation and generally will involve more credit risk than securities in the
higher rated categories.

High yield securities frequently are issued by corporations in the growth
stage of their development. They may also be issued in connection with a
corporate reorganization or a corporate takeover. Companies that issue such
high yielding securities often are highly leveraged and may not have available
to them more traditional methods of financing. Therefore, the risk associated
with acquiring the securities of such issuers generally is greater than is the
case with higher rated securities. For example, during an economic downturn or
recession, highly leveraged issuers of high yield securities may experience
financial stress. During such periods, such issuers may not have sufficient
revenues to meet their interest payment obligations. The issuer's ability to
service its debt obligations may also be adversely affected by specific
corporate developments, or the issuer's inability to meet specific projected
business forecasts, or the unavailability of additional financing. Adverse
publicity and investor perceptions regarding lower rated bonds, whether or not
based upon fundamental analysis, may also depress the price for such
securities. The risk of loss from default by the issuer is significantly
greater for the holders of high yield securities because such securities are
generally unsecured and are often subordinated to other creditors of the
issuer.

HYBRID INSTRUMENTS. Hybrid instruments have recently been developed and
combine the elements of futures contracts or options with those of debt,
preferred equity or a depository instrument. Often these hybrid instruments
are indexed to the price of commodity, a particular currency, or a domestic or
foreign debt or equity securities index. Hybrid instruments may take a variety
of forms, including, but not limited to, debt instruments with interest or
principal payments or redemption terms determined by reference to the value of
a currency or commodity or securities index at a future point in time,
preferred stock with dividend rates determined by reference to the value of a
currency, or convertible securities with the conversion terms related to a
particular commodity.

<PAGE> 80

MORTGAGE-BACKED SECURITIES. Mortgage-backed securities are securities
representing an interest in a pool of mortgages. The mortgages may be of a
variety of types, including adjustable rate, conventional 30-year fixed rate,
graduated payment, and 15-year. Principal and interest payments made on the
mortgages in the underlying mortgage pool are passed through to the Series.
This is in contrast to traditional bonds where principal is normally paid back
at maturity in a lump sum. Unscheduled prepayments of principal shorten the
securities' weighted average life and may lower their total return. (When a
mortgage in the underlying mortgage pool is prepaid, an unscheduled principal
prepayment is passed through to the Series. This principal is returned to the
Series at par. As a result, if a mortgage security were trading at a discount,
its total return would be increased by prepayments). The value of these
securities also may change because of changes in the market's perception of the
creditworthiness of the federal agency that issued them. In addition, the
mortgage securities market in general may be adversely affected by
changes in governmental regulation or tax policies.

MUNICIPAL OBLIGATIONS. Municipal Obligations include debt obligations issued
to obtain funds for various public purposes, including the construction of a
wide range of public facilities such as bridges, highways, housing, hospitals,
mass transportation, schools, streets and water and sewer works. Other public
purposes for which Municipal Obligations may be issued include refunding
outstanding obligations, obtaining funds for general operating expenses, and
obtaining funds to loan to other public institutions and facilities. In
addition, certain types of industrial development bonds are issued by or on
behalf of public authorities to obtain funds to provide privately-operated
housing facilities, sports facilities, convention or trade show facilities,
airport, mass transit, port or parking facilities, air or water pollution
control facilities for water supply, gas, electricity or sewage or solid waste
disposal. Such obligations are included with the term Municipal Obligations if
the interest paid thereon qualifies as exempt from federal income tax.

Other types of industrial development bonds, the proceeds of which are
used for the construction, equipment, repair or improvement of privately
operated industrial or commercial facilities, may constitute Municipal
Obligations, although the current federal tax laws place substantial
limitations on the size of such issues.

REPURCHASE AGREEMENTS. A Repurchase Agreement may be considered a loan
collateralized by securities. The Series must take physical possession of the
security or receive written confirmation of the purchase and a custodial or
safekeeping receipt from a third party or be recorded as the owner of the
security through the Federal Reserve Book Entry System. The Series may invest
in open repurchase agreements which vary from the typical agreement in the
following respects: (1) the agreement has no set maturity, but instead matures
upon 24 hours' notice to the seller; and (2) the repurchase price is not
determined at the time the agreement is entered into, but is instead based on a
variable interest rate and the duration of the agreement.

SAVINGS AND LOAN OBLIGATIONS. Savings and loan obligations include negotiable
certificates of deposit and other short-term debt obligations of savings and
loan associations.

<PAGE> 81

SHORT-TERM CORPORATE DEBT SECURITIES. Short-term corporate debt securities are
outstanding non-convertible corporate debt securities (e.g., bonds and
debentures) which have one year or less remaining to maturity. Corporate notes
may have fixed, variable, or floating rates.

STRIPPED AGENCY MORTGAGE-BACKED SECURITIES. Stripped Agency Mortgage-Backed
Securities represent interests in a pool of mortgages, the cash flow of
which has been separated into its interest and principal components. "IOs"
(interest only securities) receive the interest portion of the cash flow
while "POs" (principal only securities) receive the principal portion.
Stripped Agency Mortgage-Backed Securities may be issued by U.S. Government
agencies or by private issuers similar to those described with respect to CMOs
and privately-issued mortgage-backed certificates. As interest rates rise
and fall, the value of IOs tends to move in the same direction as interest
rates. The value of the other mortgage-backed securities described herein,
like other debt instruments, will tend to move in the opposite direction
compared to interest rates. Under the Internal Revenue Code of 1986, as
amended (the "Code"), POs may generate taxable income from the current accrual
of original issue discount, without a corresponding distribution of cash to
the Series.

The cash flows and yields on IO and PO classes are extremely sensitive to
the rate of principal payments (including prepayments) on the related
underlying mortgage assets. For example, a rapid or slow rate of principal
payments may have a material adverse effect on the prices of IOs or POs,
respectively. If the underlying mortgage assets experience greater than
anticipated prepayments of principal, an investor may fail to recoup fully its
initial investment in an IO class of a stripped mortgage-backed security, even
if the IO class is rated AAA or Aaa or is derived from a full faith and credit
obligation. Conversely, if the underlying mortgage assets experience slower
than anticipated prepayments of principal, the price on a PO class will be
affected more severely than would be the case with a traditional
mortgage-backed security.

SUPRANATIONAL AGENCY SECURITIES. Supranational Agency Securities are
securities issued or guaranteed by certain supranational entities, such as the
International Development Bank.

U.S. GOVERNMENT AGENCY SECURITIES. U.S. Government Agency Securities are
issued or guaranteed by U.S. Government sponsored enterprises and federal
agencies. These include securities issued by the Federal National Mortgage
Association, Government National Mortgage Association, 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 are supported by the
full faith and credit of the U.S. Treasury; the remainder are supported only by
the credit of the instrumentality, which may or may not include the right of
the issuer to borrow from the Treasury.

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.

<PAGE> 82

VARIABLE RATE SECURITIES. Variable Rate Securities provide for a periodic
adjustment in the interest rate paid on the obligations. The terms of such
obligations must provide that interest rates are adjusted periodically based
upon some appropriate interest rate adjustment index as provided in the
respective obligations. The adjustment intervals may be regular and range from
daily up to annually, or may be event based, such as on a change in the prime
rate. Variable Rate Securities that cannot be disposed of promptly within
seven days and in the usual course of business without taking a reduced price
will be treated as illiquid and subject to the limitation on investments in
illiquid securities.

WARRANTS. A Series may invest in warrants. Warrants have no voting rights,
pay no dividends and have no rights with respect to the assets of the
corporation issuing them. Warrants basically are options to purchase equity
securities at a specific price valid for a specific period of time. They do
not represent ownership of the securities, but only the right to buy them.
Warrants differ from call options in that warrants are issued by the issuer of
the security which may be purchased on their exercise, whereas call options may
be written or issued by anyone. The prices of warrants do not necessarily move
parallel to the prices of the underlying securities.

WHEN-ISSUED SECURITIES AND FORWARD COMMITMENT CONTRACTS. A Series may purchase
securities on a when-issued or delayed delivery basis ("When-Issueds") and may
purchase securities on a forward commitment basis ("Forwards"). Any or all of
the Series' investments in debt securities may be in the form of When-Issueds
and Forwards. The price of such securities, which may be expressed in yield
terms, is fixed at the time the commitment to purchase is made, but delivery
and payment take place at a later date. Normally, the settlement date occurs
within 90 days of the purchase for When-Issueds, but may be substantially
longer for Forwards. During the period between purchase and settlement, no
payment is made by the Series to the issuer and no interest accrues to the
Series. The purchase of these securities will result in a loss if their value
declines prior to the settlement date. This could occur, for example, if
interest rates increase prior to settlement. The longer the period between
purchase and settlement, the greater the risks. At the time the Series makes
the commitment to purchase these securities, it will record the transaction and
reflect the value of the security in determining its net asset value. The
Series will segregate for these securities by maintaining cash and/or liquid
assets with its custodian bank equal in value to commitments for them during
the time between the purchase and the settlement. Therefore, the longer this
period, the longer the period during which alternative investment options are
not available to the Series (to the extent of the securities used for cover).
Such securities either will mature or, if necessary, be sold on or before the
settlement date.

ZERO COUPON BONDS. A Series may invest up to 10% of its assets in zero coupon
bonds or strips. Zero coupon bonds do not make regular interest payments;
rather, they are sold at a discount from face value. Principal and accreted
discount (representing interest accrued but not paid) are paid at maturity.
Strips are debt securities that are stripped of their interest after the
securities are issued, but otherwise are comparable to zero coupon bonds. The
market value of strips and zero coupon bonds generally fluctuates in response
to changes in interest rates to a greater degree than interest-paying
securities of comparable term and quality.

<PAGE> 83

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 each Series 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. The mailing address of
the officers and trustees, unless otherwise noted, is 5901 Executive Drive,
Lansing, Michigan 48911.

<PAGE> 84

ANDREW B. HOPPING* (Age 39), Trustee, President and Chief Executive Officer,
August 1997 to present, Vice President, Treasurer & Chief Financial Officer,
August 1996 to August 1997; Director, June 1997 to present, President and Chief
Executive Officer, July 1997 to present, Jackson National Financial Services,
Inc.; Senior Vice President, June 1994 to present, Jackson National Life
Insurance Company; Executive Vice President, 1991 to June 1994, Countrywide
Credit.

JOSEPH FRAUENHEIM (Age 62), 1405 Cambridge, Lansing, MI 48911, Trustee,
December 1994 to present; Consultant, 1991 to present; President & CEO,
Manufacturers Bank of Lansing.

ROBERT A. FRITTS* (Age 48), Trustee, Treasurer and Chief Financial Officer,
August 1997 to present, Vice President, December 1994 to present, Assistant
Treasurer, February 1996 to August 1997, Assistant Secretary, December 1994 to
February 1996; Assistant Treasurer, Vice President, Jackson National Life
Insurance Company.

THOMAS J. MEYER (Age 50), Vice President, Counsel and Secretary, December 1994
to present; Secretary and Chief Legal Officer, November 1991 to present, Vice
President September 1994 to present, Director, June 1995 to present, Jackson
National Financial Services, Inc.; Secretary, September 1994 to present, Vice
President, and General Counsel, March 1985 to present, Jackson National Life
Insurance Company.

RICHARD MCLELLAN (Age 54), 1191 Carriageway North, East Lansing, MI 48823,
Trustee, December 1994 to present; Attorney, Dykema Gossett PLLC.

PETER MCPHERSON (Age 56), 1 Abbott Road, East Lansing, MI 48824, Trustee,
December 1994 to present; President, October 1993 to present, Michigan State
University; Group Executive Vice President, November 1990 to October 1993, Bank
of America.

<PAGE> 85

MARK D. NERUD (Age 31), Vice President and Assistant Treasurer, August 1997 to
present; Chief Operating Officer and Treasurer, July 1997 to present, Jackson
National Financial Services, Inc.; Assistant Vice President - Mutual Fund
Operations, October 1997 to present, Assistant Vice President, March 1997 to
October 1997, Assistant Controller, October 1996 to October 1997, Senior
Manager - Mutual Fund Operations, April 1996 to October 1996, Jackson National
Life Insurance Company; Manager - Mutual Fund Accounting, May 1993 to April
1996, Voyageur Asset Management Company; Manager - Financial Services, June
1988 to May 1993, KPMG Peat Marwick.

AMY D. EISENBEIS (Age 33), Vice President and Assistant Secretary, August 1997
to present; Assistant Secretary, June 1997 to present, Jackson National
Financial Services, Inc.; Associate General Counsel, July 1995 to present,
Jackson National Life Insurance Company; Staff Attorney, January 1994 to July
1995, Waddell & Reed, Inc.; Staff Attorney, October 1991 to January 1994,
Security Benefit Life Insurance Company.

___________
*Trustees who are interested persons as defined in the Investment Company Act
of 1940.

On October 3, 1997, the officers and trustees of the Trust, as a group,
owned less than 1% of the then outstanding shares of the Trust. To the extent
required by applicable law, Jackson National Life Insurance Company will
solicit voting instructions from owners of variable insurance or variable
annuity contracts. All shares of each Series of the Trust will be voted by
Jackson National Life Insurance Company in accordance with voting instructions
received from such variable contract owners. Jackson National Life Insurance
Company will vote all of the shares which it is entitled to vote in the same
proportion as the voting instructions given by variable contract owners, on the
issues presented, including shares which are attributable to Jackson National
Life Insurance Company's interest in the Trust.

The trustees who are "interested persons" and officers as designated above
receive no compensation from the Trust. Disinterested Trustees will be paid
$2,500 for each meeting they attend. For the year ended December 31, 1996,
the Disinterested Trustees received the following fees for service as Trustee:

<TABLE>
<CAPTION>
PENSION OR
AGGREGATE RETIREMENT BENEFITS TOTAL COMPENSATION
COMPENSATION FROM ACCRUED AS PART OF FROM TRUST AND FUND
TRUSTEE TRUST TRUST EXPENSES COMPLEX
- ----------------- -------------------- -------------------- --------------------
<S> <C> <C> <C>
</TABLE>

<PAGE> 86

<TABLE>

<S> <C> <C> <C>
Joseph Frauenheim $10,000 0 $10,000
Richard McLellan 10,000 0 10,000
Peter McPherson 7,500 0 7,500
</TABLE>

PERFORMANCE

As described in the Prospectus, a Series' historical performance may be
shown in the form of total return and yield. These performance measures are
described below. Performance advertised for a Series may or may not reflect the
effect of any charges that are imposed under a variable annuity or variable
life contract that is funded by the Trust. Such charges, described in the
variable annuity or variable life prospectus, will have the effect of reducing
a Series' performance.

Standardized average annual total return and non-standardized total return
measure both the net investment income generated by, and the effect of any
realized and unrealized appreciation or depreciation of, the underlying
investments of a Series. Yield is a measure of the net investment income per
share earned over a specific one month or 30-day period (seven-day period for
the PPM America/JNL Money Market Series) expressed as a percentage of the net
asset value.

A Series' standardized average annual total return quotation is computed
in accordance with a standardized method prescribed by rules of the Securities
and Exchange Commission. The standardized average annual total return for a
Series for a specific period is found by first taking a hypothetical $1,000
investment ("initial investment") in the Series' shares on the first day of the
period, adjusting to deduct the applicable charges, if any, and computing the
"redeemable value" of that investment at the end of the period. The redeemable
value is then divided by the initial investment, and this quotient is taken to
the Nth root (N representing the number of years in the period) and 1 is
subtracted from the result, which is then expressed as a percentage. The
calculation assumes that all income and capital gains dividends paid by the
Series have been reinvested at net asset value on the reinvestment dates during
the period.

The standardized average annual total return for each Series (except the
PPM America/JNL Money Market Series) for the periods indicated was as follows:

One Year Period Commencement
Ended of Operations
June 30, to
1997 June 30, 1997

<S> <C> <C>
JNL Aggressive Growth Series* 11.72% 23.44%
JNL Capital Growth Series* 4.60% 25.92%
JNL Global Equities Series* 27.08% 38.42%
JNL/Alger Growth Series** 24.93% 16.74%
JNL/Eagle Core Equity Series*** N/A% 26.42%****
</TABLE>

<PAGE> 87

<TABLE>
<S> <C> <C>
*
JNL/Eagle SmallCap Equity Series*** N/A% 34.90%**
**
JNL/Putnam Growth Series* 14.71% 30.42%
JNL/Putnam Value Equity Series* 27.47% 29.53%
PPM America/JNL Balanced Series* 16.69% 17.04%
PPM America/JNL High Yield Bond Series* 17.49% 12.25%
Salomon Brothers/JNL Global Bond Series* 13.67% 12.79%
Salomon Brothers/JNL U.S. Government and
Quality Bond Series* 6.86% 5.58%
T. Rowe Price/JNL Established Growth Series* 30.90% 30.06%
T. Rowe Price/JNL International Equity
Investment Series* 17.16% 15.62%
T. Rowe Price/JNL Mid-Cap Growth Series* 16.79% 28.02%
</TABLE>

*Commenced operations on May 15, 1995.
**Commenced operations on October 16, 1995.
***Commenced operations on September 16, 1996.
****Not annualized.

Prior to May 1, 1997, the PPM America/JNL Balanced Series was the JNL/Phoenix
Investment Counsel Balanced Series and was sub-advised by Phoenix Investment
Counsel Inc., the JNL/Putnam Growth Series was the JNL/Phoenix Investment
Counsel Growth Series and was sub-advised by Phoenix Investment Counsel, Inc.,
and the JNL/Putnam Value Equity Series was the PPM America/JNL Value Equity
Series and was sub-advised by PPM America, Inc.

The standardized average annual total return quotations will be current to
the last day of the calendar quarter preceding the date on which an
advertisement is submitted for publication. The standardized average annual
total return will be based on rolling calendar quarters and will cover at least
periods of one, five and ten years, or a period covering the time the Series
has been in existence, if it has not been in existence for one of the
prescribed periods.

Non-standardized total return may also be advertised. Non-standardized
total return may be for periods other than those required to be presented or
may otherwise differ from standardized average annual total return.
Non-standardized total return for a specific period is calculated by first
taking an investment ("initial investment") in the Series' shares on the first
day of the period and computing the "end value" of that investment at the end
of the period. The total return percentage is then determined by subtracting
the initial investment from the ending value and dividing the remainder by the
initial investment and expressing the result as a percentage. The calculation
assumes that all income and capital gains dividends paid by the Series have
been reinvested at net asset value on the reinvestment dates during the period.
Non-standardized total return may also be shown as the increased dollar value
of the hypothetical investment over the period.

Quotations of standardized average annual total return and
non-standardized total return are based upon historical earnings and will
fluctuate. Any quotation of performance, therefore, should

<PAGE> 88

not be considered a guarantee of future performance. Factors affecting the
performance of a Series include general market conditions, operating expenses
and investment management.

The yield for a Series other than the PPM America/JNL Money Market Series
is computed in accordance with a standardized method prescribed by the rules of
the SEC. Under that method, yield is computed by dividing the net investment
income per share earned during the specified one month or 30-day period by the
offering price per share on the last day of the period, according to the
following formula:

a-b 6
YIELD = [(2 --- +1) -1]
cd

Where:
a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the
period that were entitled to receive dividends
d = the offering price (net asset value) per share on the last day of the
period.

The yield for the 30-day period ended June 30, 1997, for each of the
referenced Series was as follows:

PPM America/JNL Balanced Series 3.09%
PPM America/JNL High Yield Bond Series 8.27%
Salomon Brothers/JNL Global Bond Series 6.83%
Salomon Brothers/JNL U.S. Government and Quality Bond Series 6.35%

Prior to May 1, 1997, the PPM America/JNL Balanced Series was the JNL/Phoenix
Investment Counsel Balanced Series and was sub-advised by Phoenix Investment
Counsel, Inc.

In computing the foregoing yield, the Series follow certain standardized
accounting practices specified by SEC rules. These practices are not
necessarily consistent with those that the Series use to prepare annual and
interim financial statements in accordance with generally accepted accounting
principles.

The PPM America/JNL Money Market Series' yield is also computed in
accordance with a standardized method prescribed by rules of the SEC. Under
that 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, 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

<PAGE> 89

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 PPM America/JNL Money Market Series' yield for
the seven-day period ended June 30, 1997, was 4.98%.

The PPM America/JNL Money Market Series' 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. The PPM America/JNL Money Market Series'
effective yield for the seven-day period ended June 30, 1997, was 5.10%.

A Series' performance quotations are based upon historical results and are
not necessarily representative of future performance. The Series' shares are
sold at net asset value. Returns and net asset value will fluctuate, except
that the PPM America/JNL Money Market Series seeks to maintain a $1.00 net
asset value per share. Factors affecting a Series' performance include general
market conditions, operating expenses and investment management. Shares of a
Series are redeemable at the then current net asset value, which may be more or
less than original cost.

The performance of the Series may be compared to various other selected
recognized market indicators. There are differences and similarities between
the investments which a Series may purchase and the investments measured by the
market indicators. Each Series may compare its performance to one or more of
the Consumer Price Index, the Standard & Poor's 500 Index, the Standard &
Poor's MidCap 400 Index, the Morgan Stanley Capital International World Index,
the Lehman Brothers Aggregate Bond Index, the Lehman Brothers High Yield Index,
the Salomon Brothers Broad Investment Grade Index, the Salomon Brothers
Treasury Index, the Russell 2000 Index, the Russell Midcap Index or the Morgan
Stanley Europe and Australasia, Far East Equity Index. The foregoing bond
indexes are unmanaged. The market prices and yields of corporate and government
bonds will fluctuate. Lipper and CDA are widely recognized independent mutual
fund reporting services. Lipper and CDA indexes are weighted performance
averages of other mutual funds with similar investment objectives. The net
asset values and returns of the Series will also fluctuate. No adjustments are
made for taxes payable on dividends.

A Series may periodically advertise tax-deferred compounding charts and
other hypothetical illustrations.

INVESTMENT ADVISER AND OTHER SERVICES

JNFSI, 5901 Executive Drive, Lansing, Michigan 48911, is the investment
adviser of each Series and provides each Series with professional investment
supervision and management. JNFSI is a wholly-owned subsidiary of Jackson
National Life Insurance Company, which is in turn wholly-owned by Prudential
Corporation plc, the largest life insurance company in the United Kingdom.
JNFSI provides, preparation of financial statements, tax services and
regulatory reports.

<PAGE> 90

Pursuant to an Amended Investment Advisory and Management Agreement, JNFSI
acts as the Trust's investment adviser, administers its business affairs,
furnishes office facilities and equipment, provides clerical, bookkeeping and
administrative services, and permits any of its officers or employees to serve
without compensation as trustees or officers of the Trust if elected to such
positions. The Amended Investment Advisory and Management Agreement continues
in effect for each Series 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 each Series 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 Series with respect to that Series, and will terminate
automatically upon assignment. Additional Series may be subject to a different
agreement. The Amended Investment Advisory and Management Agreement provides
that JNFSI shall not be liable for any error of judgment, or for any loss
suffered by the Series 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 JNFSI 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 Trust pays JNFSI a
fee as described in the Prospectus. The fees paid by the Trust to JNFSI
pursuant to the Amended Investment Advisory and Management Agreement from the
commencement of operations to March 31, 1996 were $701,004 and from April 1,
1996 to December 31, 1996 were $1,884,328.

In addition to providing the services described above JNFSI selects,
contracts with and compensates sub-advisers to manage the investment and
reinvestment of the assets of the Series of the Trust. JNFSI monitors the
compliance of such sub-advisers with the investment objectives and related
policies of each Series and reviews the performance of such sub-advisers and
reports periodically on such performance to the Trustees of the Trust.

Janus Capital Corporation ("Janus Capital") serves as sub-adviser for the
JNL Capital Growth, JNL Aggressive Growth and JNL Global Equities Series; Fred
Alger Management, Inc. ("Alger Management") serves as sub-adviser for the
JNL/Alger Growth Series; Alliance Capital Management L.P. ("Alliance") serves
as sub-adviser for the JNL/Alliance Growth Series; Eagle Asset Management, Inc.
("Eagle") serves as sub-adviser to the JNL/Eagle Core Equity Series and the
JNL/Eagle SmallCap Equity Series; Goldman Sachs Asset Management ("Goldman
Sachs") serves as sub-adviser for the Goldman Sachs/JNL Growth & Income Series;
J.P. Morgan Investment Management Inc. ("JPM") serves as sub-adviser for the
JNL/JPM International & Emerging Markets Series; Pacific Investment Management
Company ("PIMCO") serves as sub-adviser for the JNL/PIMCO Total Return Bond
Series; Lazard Asset Management ("Lazard") serves as sub-adviser for the
Lazard/JNL Small Cap Value and Lazard/JNL Mid Cap Value Series, PPM America,
Inc. ("PPM") serves as sub-adviser for the PPM America/JNL Balanced, PPM
America/JNL High Yield Bond, and PPM America/JNL Money Market Series; Putnam
Investment Management, Inc. ("Putnam") serves as sub-adviser to the JNL/Putnam
Growth and JNL/Putnam Value Equity Series; Salomon Brothers Asset Management
Inc ("SBAM") serves as sub-adviser for the Salomon Brothers/JNL Balanced,
Salomon Brothers/JNL U.S. Government & Quality Bond, Salomon Brothers/JNL High
Yield Bond and Salomon Brothers/JNL Global Bond Series; T. Rowe

<PAGE> 91

Price Associates, Inc. ("T. Rowe") serves as sub-adviser for the T. Rowe
Price/JNL Established Growth and T. Rowe Price/JNL Mid-Cap Growth
Series; and Rowe Price-Fleming International, Inc. ("Price-Fleming") serves as
sub-adviser for the T. Rowe Price/JNL International Equity Investment Series.
Prior to May 1, 1997, the PPM America/JNL Balanced Series was the JNL/Phoenix
Investment Counsel Balanced Series and was sub-advised by Phoenix Investment
Counsel Inc., the JNL/Putnam Growth Series was the JNL/Phoenix Investment
Counsel Growth Series and was sub-advised by Phoenix Investment Counsel, Inc.,
and the JNL/Putnam Value Equity Series was the PPM America/JNL Value Equity
Series and was sub-advised by PPM.

Subject to the supervision of JNFSI and the Trustees pursuant to
investment sub-advisory agreements entered into between JNFSI and each of the
sub-advisers, respectively, the sub-advisers invest and reinvest the Series'
assets consistent with the Series' respective investment objectives and
policies. The investment sub-advisory agreement continues in effect for each
Series 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 Series and by the shareholders of
each Series 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 Series with respect to that Series, and will terminate automatically upon
assignment or upon the termination of the investment management agreement
between JNFSI and the Series. Additional Series may be subject to a different
agreement. The sub-advisers are responsible for compliance with or have agreed
to use their best efforts to manage the Series to comply with the provisions of
Section 817(h) of the Internal Revenue Code of 1986, as amended, applicable to
each Series (relating to the diversification requirements applicable to
investments in underlying variable annuity contracts).

The Trust pays the compensation of the Trustees who are not affiliated
with JNFSI and all expenses (other than those assumed by JNFSI), including
governmental fees, interest charges, taxes, membership dues in certain industry
associations allocable to the Trust, fees and expenses of independent certified
public accountants, legal counsel, and any transfer agent, registrar, and
dividend disbursing agent of the Trust, expenses of preparing, printing, and
mailing shareholders' reports, notices, proxy statements, and reports to
governmental offices and commissions, expenses connected with the execution,
recording, and settlement of portfolio security transactions, insurance
premiums, fees and expenses of the custodian for all services to the Trust and
expenses of calculating the net asset value of shares of the Trust, and
expenses relating to the issuance, registration, and qualification of shares of
the Trust.

CUSTODIAN AND TRANSFER AGENT

State Street Bank and Trust Company ("State Street"), 1776 Heritage Drive,
North Quincy, Massachusetts 02171, acts as custodian for each Series of the
Trust. The custodian has custody of all securities and cash of the Trust
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.

<PAGE> 92

JNFSI is the transfer agent and dividend-paying agent for each Series of
the Trust.

INDEPENDENT ACCOUNTANTS

The Series' independent accountants, Price Waterhouse LLP, 100 East
Wisconsin Avenue, Milwaukee, Wisconsin 53202, audit and report on the Series'
annual financial statements, prepare the Series' federal income and excise tax
returns, and perform other professional accounting, auditing and advisory
services when engaged to do so by the Series.

SERIES TRANSACTIONS AND BROKERAGE

The primary consideration in portfolio security transactions is "best
execution," i.e., execution at the most favorable prices and in the most
effective manner possible. JNFSI and the sub-advisers always attempt to
achieve best execution and have complete freedom as to the markets in and the
broker/dealers through which they seek this result. Subject to the requirement
of seeking best execution, securities may be bought from or sold to
broker/dealers who have furnished statistical, research, and other information
or services to JNFSI or the sub-advisers. In placing orders with such
broker/dealers, JNFSI and the sub-advisers will, where possible, take into
account the comparative usefulness of such information. Such information is
useful to JNFSI and the sub-advisers even though its dollar value may be
indeterminable and its receipt or availability generally does not reduce
JNFSI's or the sub-advisers' normal research activities or expenses.

Trust portfolio transactions may be effected with broker/dealers who have
assisted investors in the purchase of policies. However, neither such
assistance nor sale of other investment company shares is a qualifying or
disqualifying factor in a broker/dealer's selection, nor is the selection of
any broker/dealer based on the volume of shares sold.

There may be occasions when portfolio transactions for the Trust are
executed as part of concurrent authorizations to purchase or sell the same
security for trusts or other accounts served by affiliated companies of JNFSI
or the sub-advisers. Although such concurrent authorizations potentially could
be either advantageous or disadvantageous to the Trust, they are effected only
when JNFSI and the sub-advisers believe that to do so is in the interest of the
Trust. When such concurrent authorizations occur the executions will be
allocated in an equitable manner.

During the periods indicated, the Series paid the following amounts in
brokerage commissions:

<TABLE>
<CAPTION>
Commencement
April 1, 1996 to of Operations to
December 31, 1996* March 31, 1996
-------------------- --------------------
<S> <C> <C>
JNL Aggressive Growth Series** $16,981 $19,654

</TABLE>

<PAGE> 93

<S> <C> <C>
JNL Capital Growth Series** 34,515 16,905
JNL Global Equities Series** 47,800 72,359
JNL/Alger Growth Series*** 22,155 9,414
JNL/Eagle Core Equity Series**** 1,785 N/A
JNL/Eagle SmallCap Equity Series**** 4,389 N/A
JNL/Putnam Growth Series** 33,185 8,008
JNL/Putnam Value Equity Series** 3,587 2,888
PPM America/JNL Balanced Series** 17,054 5,077
PPM America/JNL High Yield Bond Series** 500 0
PPM America/JNL Money Market Series** 0 0
Salomon Brothers/JNL Global Bond Series** 0 1,399
Salomon Brothers/JNL U.S. Government and Quality Bond
Series** 0 0
T. Rowe Price/JNL Established Growth Series** 5,706 20,293
T. Rowe Price/JNL International Equity Investment Series** 17,105 63,341
T. Rowe Price/JNL Mid-Cap Growth Series** 19,868 25,663
</TABLE>

*The JNL Series Trust changed its fiscal year end from March 31 to December 31.
**Commenced operations on May 15, 1995.
***Commenced operations on October 16, 1995.
****Commenced operations on September 16, 1996.

As of December 31, 1996, the following Series owned securities of one of
the Trust's regular broker/dealers:

<TABLE>
<CAPTION>
Amount of Securities
Series Broker/Dealer Owned
- ------------------------------- --------------------- ------------------------
<S> <C> <C>
JNL Aggressive Growth Series Chase Manhattan Corp. $301,219
JNL/Alger Growth Series Chase Manhattan Corp. $803,250
JNL/Eagle Core Equity Series Chase Manhattan Corp. $ 35,700
JNL/Putnam Growth Series Chase Manhattan Corp. $321,300
JNL/Putnam Value Equity Series Chase Manhattan Corp. $339,150
PPM America/JNL Balanced Series Chase Manhattan Corp. $116,025
</TABLE>

PURCHASES, REDEMPTIONS AND PRICING OF SHARES

<PAGE> 94

An insurance company or certain tax qualified retirement plans may
purchase shares of the Series at their net asset value. For an insurance
company, shares are purchased using premiums received on policies issued by
separate accounts. These separate accounts are funded by shares of the Trust.

As stated in the Prospectus, the net asset value ("NAV") of Series shares
is determined once each day on which the New York Stock Exchange (the "NYSE")
is open ("Business Day") at the close of the regular trading session of the
Exchange (normally 4:00 p.m., Eastern Time, Monday through Friday). The NAV of
Series shares is not determined on the days the NYSE is closed, which days
generally are New Year's Day, President's Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving and Christmas. The per share NAV of
a Series is determined by dividing the total value of the securities and other
assets, less liabilities, by the total number of shares outstanding. In
determining NAV, securities listed on the national securities exchanges, the
NASDAQ National Market and foreign markets are valued at the closing prices on
such markets, or if such price is lacking for the trading period immediately
preceding the time of determination, such securities are valued at their
current bid price. Securities that are traded on the over-the-counter market
are valued at their closing bid prices. Foreign securities and currencies are
converted to U.S. dollars using exchange rates in effect at the time of
valuation. A Series will determine the market value of individual securities
held by it, by using prices provided by one or more professional pricing
services which may provide market prices to other funds, or, as needed, by
obtaining market quotations from independent broker-dealers. Short-term
securities maturing within 60 days are valued on the amortized cost basis.
Securities for which quotations are not readily available, and other assets,
are valued at fair values determined in good faith under procedures established
by and under the supervision of the Trustees.

Trading in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed well before the close of
business on each Business Day. In addition, European and Far Eastern securities
trading generally or in a particular country or countries may not take place on
all Business Days. Furthermore, trading takes place in Japanese markets on
certain Saturdays and in various foreign markets on days which are not Business
Days and on which a Series' net asset value is not calculated. A Series
calculates net asset value per share, and therefore effects sales, redemptions
and repurchases of its shares, as of the close of the NYSE once on each day on
which the NYSE is open. Such calculation does not take place contemporaneously
with the determination of the prices of the majority of the foreign portfolio
securities used in such calculation.

For the PPM America/JNL Money Market Series, securities are valued at
amortized cost, which approximates market value, in accordance with Rule 2a-7
under the Investment Company Act of 1940. The net income of the PPM
America/JNL Money Market Series is determined once each day, on which the NYSE
is open, at the close of the regular trading session of the NYSE

<PAGE> 95

(normally 4:00 p.m., Eastern time, Monday through Friday). All the net income
of the Series, so determined, is declared as a dividend to shareholders
of record at the time of such determination. Shares purchased become entitled
to dividends declared as of the first day following the date of investment.
Dividends are distributed in the form of additional shares of the Series on the
last business day of each month at the rate of one share (and fraction thereof)
of the Series for each one dollar (and fraction thereof) of dividend income.

For this purpose, the net income of the PPM America/JNL Money Market
Series (from the time of the immediately preceding determination thereof) shall
consist of: (a) all interest income accrued on the portfolio assets of the
Series, (b) less all actual and accrued expenses, and (c) plus or minus net
realized gains and losses on the assets of the Series determined in accordance
with generally accepted accounting principles. Interest income shall include
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
Investment Company Act of 1940.

Because the net income of the PPM America/JNL Money Market Series 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 Series 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 Series, representing the reinvestment of
dividend income, is reflected by an increase in the number of shares of the
Series in its account. Pursuant to its objective of maintaining a fixed one
dollar share price, the Series 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 for any Series only under
the following unusual circumstances: (a) when the New York Stock Exchange 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 each Series 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 a Series represents an equal
proportionate interest in that Series with each other share. The Trust
reserves the right to create and issue a number of Series of shares. In that
case, the shares of each Series would participate equally in the earnings,
dividends, and assets of the particular Series. Upon liquidation of a Series,
shareholders are entitled to share pro rata in the net assets of such Series
available for distribution to shareholders.

<PAGE> 96

VOTING RIGHTS - Shareholders are entitled to one vote for each share
held. Shareholders may vote in the election of Trustees and on other matters
submitted to meetings of shareholders. 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:

- designate Series of the Trust; or

- change the name of the Trust; or

- 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.

Shares have no pre-emptive or conversion rights. Shares are fully paid
and non-assessable, except as set forth in the prospectus. In regard to
termination, sale of assets, or change of investment restrictions, the right to
vote is limited to the holders of shares of the particular Series affected by
the proposal. When a majority is required, it means the lesser of 67% or more
of the shares present at a meeting when the holders of more than 50% of the
outstanding shares are present or represented by proxy, or more than 50% of the
outstanding shares.

SHAREHOLDER INQUIRIES - All inquiries regarding the Trust should be
directed to the Trust at the telephone number or address shown on the cover
page of the Prospectus.

TAX STATUS

The Trust's policy is to meet the requirements of Subchapter M of the
Internal Revenue Code. Each Series intends to distribute taxable net
investment income and capital gains to shareholders in amounts that will avoid
federal income or excise tax. In addition, each Series intends to comply with
the diversification requirements of Code Section 817(h) related to the
tax-deferred status of insurance company separate accounts.

All income, dividends, and capital gains distributions, if any, on Series
shares are reinvested automatically in additional shares of the Series at the
NAV determined on the first Business Day following the record date, unless
otherwise requested by a shareholder.

Each Series of the Trust is treated as a separate entity for purpose of
the regulated investment company provisions of the Internal Revenue Code and,
therefore, the assets, income, and distributions of each Series are considered
separately for purposes of determining whether or not the Series qualifies as a
regulated investment company.

<PAGE> 97

JNL SERIES TRUST

FINANCIAL STATEMENTS

<PAGE> 98
JNL SERIES TRUST

STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
JNL JNL JNL JNL/EAGLE
AGGRESSIVE CAPITAL GLOBAL JNL/ALGER CORE
GROWTH GROWTH EQUITIES GROWTH EQUITY
SERIES SERIES SERIES SERIES SERIES
----------------- ----------------- ----------------- ----------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at cost.... $57,386,835 $52,783,377 $ 93,106,846 $54,714,690 $5,664,300
=========== =========== ============ =========== ==========
Investments in securities, at value... $62,267,285 $61,247,396 $110,948,045 $65,096,135 $6,445,300
Cash.................................. 7,682 58,071 - - 480,265
Foreign currency...................... 35,267 12,850 3,733,813 - -
Deposit at broker for short sales..... - - - - -
Receivables:
Dividends and interest............... 17,662 4,632 144,424 61,335 10,895
Forward foreign currency
exchange contracts.................. 44,699 17,378 565,282 - -
Foreign taxes recoverable............ 5,827 2,510 82,834 - 76
Fund shares sold..................... 173,220 127,052 473,965 147,688 29,048
Investment securities sold........... 240,626 406,429 7,549,398 460,656 417
Reimbursement from Adviser........... 3,083 1,876 9,941 - 2,941
----------- ----------- ------------ ----------- ----------
TOTAL ASSETS.......................... 62,795,351 61,878,194 123,507,702 65,765,814 6,968,942
----------- ----------- ------------ ----------- ----------
LIABILITIES
Payables:
Investment advisory fees............. 46,311 46,058 86,803 48,599 4,650
Custodian overdraft.................. - - 5,070,659 - -
Forward foreign currency
exchange contracts.................. 14,872 76,218 187,346 - -
Dividends to shareholders............ - - - - -
Fund shares redeemed................. 21,942 30,741 30,960 37,191 2,475
Investment securities purchased...... 474,265 702,506 5,656,962 2,532,199 151,373
Securities sold short, at value
(Proceeds of $8,248,773)............ - - - - -
Call options written, at value
(Premiums received $2,848).......... - - - - 3,713
Other liabilities..................... 65,258 53,477 142,348 38,489 23,594
----------- ----------- ------------ ----------- ----------
TOTAL LIABILITIES..................... 622,648 909,000 11,175,078 2,656,478 185,805
----------- ----------- ------------ ----------- ----------
NET ASSETS............................ $62,172,703 $60,969,194 $112,332,624 $63,109,336 $6,783,137
=========== =========== ============ =========== ==========
NET ASSETS CONSIST OF:
Paid-in capital....................... $56,582,013 $54,627,799 $ 92,557,071 $51,987,984 $5,966,727
Undistributed net investment income... 288,795 106,682 348,042 (16,761) 21,760
Accumulated net realized gain (loss)
on investments and foreign
currency related items............... 392,025 (2,170,339) 1,188,668 756,668 14,515
Net unrealized appreciation
(depreciation) on:
Investments.......................... 4,880,450 8,464,019 17,841,199 10,381,445 781,000
Foreign currency related items....... 29,420 (58,967) 397,644 - -
Options written...................... - - - - (865)
Short positions...................... - - - - -
----------- ----------- ------------ ----------- ----------
NET ASSETS............................ $62,172,703 $60,969,194 $112,332,624 $63,109,336 $6,783,137
=========== =========== ============ =========== ==========
TOTAL SHARES OUTSTANDING (NO PAR
VALUE), UNLIMITED SHARES AUTHORIZED.. 4,378,694 4,024,407 6,274,355 4,843,749 538,082
=========== =========== ============ =========== ==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE........... $ 14.20 $ 15.15 $ 17.90 $ 13.03 $ 12.61
=========== =========== ============ =========== ==========

<CAPTION>
JNL/EAGLE
SMALLCAP JNL/PUTNAM
EQUITY GROWTH
SERIES SERIES
----------------- -----------------
<S> <C> <C>
ASSETS
Investments in securities, at cost..... $5,694,744 $63,755,698
========== ===========
Investments in securities, at value.... $6,669,744 $68,616,738
Cash................................... 294,510 -
Foreign currency....................... - -
Deposit at broker for short sales...... - 746,286
Receivables:
Dividends and interest................ 3,978 94,367
Forward foreign currency
exchange contracts................... - -
Foreign taxes recoverable............. - 602
Fund shares sold...................... 42,327 220,364
Investment securities sold............ - 51,111
Reimbursement from Adviser............ 2,642 -
---------- -----------
TOTAL ASSETS........................... 7,013,201 69,729,468
---------- -----------
LIABILITIES
Payables:
Investment advisory fees.............. 4,864 44,000
Custodian overdraft................... - -
Forward foreign currency
exchange contracts................... - -
Dividends to shareholders............. - -
Fund shares redeemed.................. 3,315 216,549
Investment securities purchased....... - 284,903
Securities sold short, at value
(Proceeds of $8,248,773)............ - 8,785,053
Call options written, at value
(Premiums received $2,848).......... - -
Other liabilities...................... 22,164 73,978
---------- -----------
TOTAL LIABILITIES...................... 30,343 9,404,483
---------- -----------
NET ASSETS............................. $6,982,858 $60,324,985
========== ===========
NET ASSETS CONSIST OF:
Paid-in capital........................ $5,943,206 $55,227,459
Undistributed net investment income.... (11,734) 123,788
Accumulated net realized gain (loss)
on investments and foreign
currency related items................ 76,386 648,978
Net unrealized appreciation
(depreciation) on:
Investments........................... 975,000 4,861,040
Foreign currency related items........ - -
Options written....................... - -
Short positions....................... - (536,280)
---------- -----------
NET ASSETS............................. $6,982,858 $60,324,985
========== ===========
TOTAL SHARES OUTSTANDING (NO PAR
VALUE), UNLIMITED SHARES AUTHORIZED... 517,462 3,892,704
========== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE............ $ 13.49 $ 15.50
========== ===========
</TABLE>

See notes to the financial statements.

PPM PPM SALOMON
JNL/PUTNAM PPM AMERICA/JNL AMERICA/JNL BROTHERS/JNL
VALUE AMERICA/JNL HIGH YIELD MONEY GLOBAL
EQUITY BALANCED BOND MARKET BOND
SERIES SERIES SERIES SERIES SERIES
- ------------------- ------------------- ------------------- -------------------- -------------------
<S> <C> <C> <C> <C>
$51,682,727 $40,854,996 $37,672,042 $37,888,743 $26,030,482
=========== =========== =========== =========== ===========

$54,696,151 $42,358,157 $38,694,896 $37,888,743 $26,784,706
- - - - -
- - - - -
- - - - -
127,288 269,366 613,633 97 323,378
- - - - 8,931
4,921 - - - -
402,153 111,180 281,931 199,181 71,627
419,802 206,046 - - 1,125,439
1,651 1,390 215 530 5,511
----------- ----------- ----------- ----------- -----------
55,651,966 42,946,139 39,590,675 38,088,551 28,319,592
----------- ----------- ----------- ----------- -----------
36,169 25,379 22,831 19,026 17,737
- - - - 2,854
- - - - 3,833
- - - 4,070 -
9,919 14,473 11,509 176,066 8,669
1,604,135 368,802 798,640 - 1,868,289
- - - - -
- - - - -
48,943 41,985 29,367 33,168 52,034
----------- ----------- ----------- ----------- -----------
1,699,166 450,639 862,347 232,330 1,953,416
----------- ----------- ----------- ----------- -----------
$53,952,800 $42,495,500 $38,728,328 $37,856,221 $26,366,176
=========== =========== =========== =========== ===========

$47,454,185 $38,151,519 $36,251,362 $37,856,221 $25,000,314
317,693 530,284 1,032,166 - 688,276
3,167,498 2,310,536 421,946 - (81,643)
3,013,424 1,503,161 1,022,854 - 754,224
- - - - 5,005
- - - - -
- - - - -
----------- ----------- ----------- ----------- -----------
$53,952,800 $42,495,500 $38,728,328 $37,856,221 $26,366,176
=========== =========== =========== =========== ===========

3,267,397 3,261,326 3,402,292 37,856,221 2,352,786
=========== =========== =========== =========== ===========

$ 16.51 $ 13.03 $ 11.38 $ 1.00 $ 11.21
=========== =========== =========== =========== ===========

<CAPTION>
T.ROWE
SALOMON T. ROWE PRICE/JNL T. ROWE
BROTHERS/JNL PRICE/JNL INTERNATIONAL PRICE/JNL
U.S. GOVERNMENT ESTABLISHED EQUITY MID-CAP
& QUALITY BOND GROWTH INVESTMENT GROWTH
SERIES SERIES SERIES SERIES
---------------------- ----------------- ------------------ --------------------
<S> <C> <C> <C>
$21,752,277 $70,522,410 $63,174,874 $81,830,188
=========== =========== =========== ===========
$21,828,286 $81,262,589 $74,180,154 $92,378,697
- - - -
- 53,115 570,919 234
- - - -
134,435 67,471 321,821 21,035
- 2 191 -
- 6,419 58,926 314
70,922 236,854 121,044 297,195
2,037,328 228,261 18,110 1,163,462
2,098 - 5,616 -
----------- ----------- ----------- -----------
24,073,069 81,854,711 75,276,781 93,860,937
----------- ----------- ----------- -----------
9,656 53,558 63,924 69,083
- - - -
- 815 135 -
- - - -
9,365 25,494 13,159 54,424
6,622,782 729,705 627,750 2,109,452
- - - -
- - - -
30,678 47,226 85,965 54,870
----------- ----------- ----------- -----------
6,672,481 856,798 790,933 2,287,829
----------- ----------- ----------- -----------
$17,400,588 $80,997,913 $74,485,848 $91,573,108
=========== =========== =========== ===========

$16,970,288 $67,111,227 $61,959,817 $80,428,659
407,981 152,783 525,964 (71,068)
(53,690) 2,994,098 988,182 667,215
76,009 10,740,179 11,005,280 10,548,509
- (374) 6,605 (207)
- - - -
- - - -
----------- ----------- ----------- -----------
$17,400,588 $80,997,913 $74,485,848 $91,573,108
=========== =========== =========== ===========

1,666,186 5,482,303 5,524,808 5,796,131
=========== =========== =========== ===========

$ 10.44 $ 14.77 $ 13.48 $ 15.80
=========== =========== =========== ===========
</TABLE>

<PAGE> 100
JNL SERIES TRUST

STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1997

<TABLE>
<CAPTION>
JNL JNL JNL
AGGRESSIVE CAPITAL GLOBAL JNL/ALGER
GROWTH GROWTH EQUITIES GROWTH
SERIES SERIES SERIES SERIES
---------- ------- -------- ---------
INVESTMENT INCOME
<S> <C> <C> <C> <C>
Dividends............................................ $ 151,294 $ 49,084 $ 807,064 $ 172,280
Interest............................................. 378,241 183,169 217,734 86,317
Foreign tax withholding.............................. (8,931) (2,475) (102,665) (1,366)
---------- ---------- ----------- ----------
TOTAL INVESTMENT INCOME............................... 520,604 229,778 922,133 257,231
---------- ---------- ----------- ----------
EXPENSES
Investment advisory fees............................. 206,843 221,929 369,034 237,460
Custodian fees....................................... 28,097 19,263 78,285 5,694
Portfolio accounting fees............................ 11,891 11,891 20,725 11,951
Professional fees.................................... 11,096 12,047 16,122 12,645
Trustee fees......................................... 950 955 975 955
Other................................................ 10,441 11,521 12,177 10,717
---------- ---------- ----------- ----------
TOTAL OPERATING EXPENSES.............................. 269,318 277,606 497,318 279,422
Less:
Reimbursement from Advisor........................... (29,815) (20,634) (72,586) (5,430)
---------- ---------- ----------- ----------
NET OPERATING EXPENSES BEFORE
INTEREST EXPENSE AND DIVIDENDS
ON SHORT POSITIONS................................... 239,503 256,972 424,732 273,992
---------- ---------- ----------- ----------
Interest expense..................................... - - - -
Dividends on short positions......................... - - - -
---------- ---------- ----------- ----------
NET EXPENSES.......................................... 239,503 256,972 424,732 273,992
---------- ---------- ----------- ----------
NET INVESTMENT INCOME (LOSS).......................... 281,101 (27,194) 497,401 (16,761)
========== ========== =========== ==========

REALIZED AND UNREALIZED GAINS (LOSSES)
Net realized gain (loss) on:
Investments.......................................... 395,724 (1,984,964) 1,372,355 1,457,247
Foreign currency related items....................... 58,782 2,777 (109,388) -
Options written...................................... - - - -
Short transactions................................... - - - -
Futures transactions................................. (10,119) - (47,070) -
Net change in unrealized appreciation
(depreciation) on:
Investments.......................................... 3,044,663 5,837,684 11,203,814 6,716,761
Foreign currency related items...................... 33,453 13,265 256,433 -
Options written...................................... - - - -
Short positions...................................... - - - -
---------- ---------- ----------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS).......................................... 3,522,503 3,868,762 12,676,144 8,174,008
---------- ---------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................................... $3,803,604 $3,841,568 $13,173,545 $8,157,247
========== ========== =========== ==========

<CAPTION>
JNL/EAGLE JNL/EAGLE
CORE SMALLCAP JNL/PUTNAM
EQUITY EQUITY GROWTH
SERIES SERIES SERIES
---------- ------- --------

INVESTMENT INCOME
<S> <C> <C> <C>
Dividends............................................ $ 39,325 $ 5,765 $ 247,216
Interest............................................. 2,917 3,318 125,466
Foreign tax withholding.............................. (514) - (1,776)
-------- -------- ----------
TOTAL INVESTMENT INCOME............................... 41,728 9,083 370,906
-------- -------- ----------

EXPENSES
Investment advisory fees............................. 17,115 17,978 177,534
Custodian fees....................................... 1,692 782 9,031
Portfolio accounting fees............................ 11,946 11,946 11,951
Professional fees.................................... 4,706 4,706 8,838
Trustee fees......................................... 915 915 940
Other................................................ 2,049 2,049 7,780
-------- -------- ----------
TOTAL OPERATING EXPENSES.............................. 38,423 38,376 216,074
Less:
Reimbursement from Advisor........................... (18,455) (17,559) (8,952)
-------- -------- ----------
NET OPERATING EXPENSES BEFORE
INTEREST EXPENSE AND DIVIDENDS
ON SHORT POSITIONS................................... 19,968 20,817 207,122
-------- -------- ----------
Interest expense..................................... - - 5,966
Dividends on short positions......................... - - 34,030
-------- -------- ----------
NET EXPENSES.......................................... 19,968 20,817 247,118
-------- -------- ----------
NET INVESTMENT INCOME (LOSS).......................... 21,760 (11,734) 123,788
======== ======== ==========

REALIZED AND UNREALIZED GAINS (LOSSES)
Net realized gain (loss) on:
Investments.......................................... 21,129 85,723 (327,211)
Foreign currency related items....................... - - (4)
Options written...................................... (2,187) - -
Short transactions................................... - - 317,885
Futures transactions................................. - - -
Net change in unrealized appreciation
(depreciation) on:
Investments.......................................... 701,271 761,291 4,570,692
Foreign currency related items...................... - - -
Options written...................................... (408) - -
Short positions...................................... - - (536,280)
-------- -------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS).......................................... 719,805 847,014 4,025,082
-------- -------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................................... $741,565 $835,280 $4,148,870
======== ======== ==========
</TABLE>

SEE NOTES TO THE FINANCIAL STATEMENTS.

<PAGE> 101

PPM PPM
JNL/PUTNAM PPM AMERICA/JNL AMERICA/JNL SALOMON
VALUE AMERICA/JNL HIGH YIELD MONEY BROTHERS/JNL
EQUITY BALANCED BOND MARKET GLOBAL BOND
SERIES SERIES SERIES SERIES SERIES
---------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
$ 425,633 $ 141,914 $ 11,975 $ - $ -
38,625 545,877 1,125,085 897,712 756,069
(1,976) (284) - - (131)
---------- ---------- ---------- -------- ----------
462,282 687,507 1,137,060 897,712 755,938
---------- ---------- ---------- -------- ----------
126,716 135,150 92,446 96,101 78,137
18,922 10,908 4,712 6,428 14,844
11,951 11,956 11,951 11,956 20,725
8,855 9,322 6,657 9,177 6,677
940 915 945 940 927
5,879 6,924 3,986 3,527 4,586
---------- ---------- ---------- -------- ----------
173,263 175,175 120,697 128,129 125,896
(23,402) (15,866) (9,762) (8,002) (33,328)
---------- ---------- ---------- -------- ----------
149,861 159,309 110,935 120,127 92,568
---------- ---------- ---------- -------- ----------
- - - - -
- - - - -
---------- ---------- ---------- -------- ----------
149,861 159,309 110,935 120,127 92,568
---------- ---------- ---------- -------- ----------
312,421 528,198 1,026,125 777,585 663,370
========== ========== ========== ======== ==========
3,035,341 1,681,791 252,381 - (113,274)
(5) - - - (25,816)
- - - - -
- - - - -
- - - - -
1,062,329 889,072 608,904 - 550,860
- - - - 20,666
- - - - -
- - - - -
---------- ---------- ---------- -------- ----------
4,097,665 2,570,863 861,285 - 432,436
---------- ---------- ---------- -------- ----------
$4,410,086 $3,099,061 $1,887,410 $777,585 $1,095,806
========== ========== ========== ======== ==========

<CAPTION>
T. ROWE
SALOMON T. ROWE PRICE/JNL T. ROWE
BROTHERS/JNL PRICE/JNL INTERNATIONAL PRICE/JNL
U.S. GOVERNMENT ESTABLISHED EQUITY MID-CAP
& QUALITY BOND GROWTH INVESTMENT GROWTH
SERIES SERIES SERIES SERIES
--------------- ----------- ------------- ---------
<S> <C> <C> <C>
$ - $ 332,334 $ 834,213 $ 86,454
464,746 104,304 85,498 206,708
- (15,888) (99,374) (468)
--------- ---------- ---------- ----------
464,746 420,750 820,337 292,694
--------- ---------- ---------- ----------
46,747 224,144 316,085 313,898
4,952 15,253 38,535 14,988
11,906 11,896 20,725 11,936
5,300 11,261 15,169 15,309
922 960 965 970
3,160 10,020 8,879 12,698
--------- ---------- ---------- ----------
72,987 273,534 400,358 369,799
(16,222) (9,463) (40,446) (6,338)
--------- ---------- ---------- ----------
56,765 264,071 359,912 363,461
--------- ---------- ---------- ----------
- - - -
- - - -
--------- ---------- ---------- ----------
56,765 264,071 359,912 363,461
--------- ---------- ---------- ----------
407,981 156,679 460,425 (70,767)
========= ========== ========== ==========
(63,645) 3,051,814 1,116,702 695,662
- (22,159) (144,993) (11,782)
- - - -
- - - -
- - - -
26,228 6,745,522 5,871,412 5,437,730
- (430) 3,545 (207)
- - - -
- - - -
--------- ---------- ---------- ----------
(37,417) 9,774,747 6,846,666 6,121,403
--------- ---------- ---------- ----------
$ 370,564 $9,931,426 $7,307,091 $6,050,636
========= ========== ========== ==========
</TABLE>

<PAGE> 102
JNL SERIES TRUST

STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)

<TABLE>
<CAPTION>
JNL AGGRESSIVE GROWTH SERIES JNL CAPITAL GROWTH SERIES
---------------------------------------- --------------------------------------
PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, SIX MONTHS APRIL 1,
ENDED 1996 TO ENDED 1996 TO
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
------------------ -------------------- ------------------ ------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............... $ 281,101 $ 119,340 $ (27,194) $ 163,301
Net realized gain (loss) on:
Investments............................... 385,605 602,416 (1,984,964) (221,942)
Foreign currency related
items..................................... 58,782 9,765 2,777 28,945
Net change in unrealized
appreciation (depreciation) on:
Investments............................... 3,044,663 999,505 5,837,684 872,041
Foreign currency related
items..................................... 33,453 (4,062) 13,265 (71,967)
------------ ----------- ----------- -----------
Net increase in net assets
from operations........................... 3,803,604 1,726,964 3,841,568 770,378
------------ ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income................. - (104,404) - (3)
From net realized gains on
investment transactions................... - (1,470,576) - (390,495)
Return of capital.......................... - (289,382) - -
------------ ----------- ----------- -----------

Total distributions to
shareholders............................. - (1,864,362) - (390,498)
------------ ----------- ----------- -----------
SHARE TRANSACTIONS:
Proceeds from the sale of
shares................................... 33,320,171 26,877,906 27,250,998 34,276,844
Reinvestment of distributions............. - 1,746,593 - 374,294
Cost of shares redeemed................... (4,505,717) (7,459,511) (7,069,523) (7,662,400)
----------- ----------- ----------- -----------
Net increase in net assets
from share transactions.................. 28,814,454 21,164,988 20,181,475 26,988,738
----------- ----------- ----------- -----------
Net increase in net assets................ 32,618,058 21,027,590 24,023,043 27,368,618
Net assets beginning of
period................................... 29,554,645 8,527,055 36,946,151 9,577,533
----------- ----------- ----------- -----------
NET ASSETS END OF PERIOD.................. $62,172,703 $29,554,645 $60,969,194 $36,946,151
=========== =========== =========== ===========
UNDISTRIBUTED NET
INVESTMENT INCOME........................ $ 288,795 $ 7,694 $ 106,682 $ 133,876
=========== =========== =========== ===========

<CAPTION>
JNL GLOBAL EQUITIES SERIES
-----------------------------------
PERIOD FROM
SIX MONTHS APRIL 1,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
---------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)................... $ 497,401 $ 92,001
Net realized gain (loss) on:
Investments................................... 1,325,285 1,196,113
Foreign currency related
items......................................... (109,388) (2,943)
Net change in unrealized
appreciation (depreciation) on:
Investments................................... 11,203,814 4,236,085
Foreign currency related
items......................................... 256,433 128,253
------------ ------------
Net increase in net assets
from operations............................... 13,173,545 5,649,509
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income..................... - (238,326)
From net realized gains on
investment transactions....................... - (2,687,572)
Return of capital.............................. - (955,663)
------------ ------------
Total distributions to
shareholders.................................. - (3,881,561)
------------ ------------
SHARE TRANSACTIONS:
Proceeds from the sale of
shares........................................ 60,633,846 38,726,566
Reinvestment of distributions.................. - 3,277,573
Cost of shares redeemed........................ (10,113,241) (11,274,162)
------------ ------------
Net increase in net assets
from share transactions....................... 50,520,605 30,729,977
------------ ------------
Net increase in net assets..................... 63,694,150 32,497,925
Net assets beginning of
period........................................ 48,638,474 16,140,549
------------ ------------
NET ASSETS END OF PERIOD....................... $112,332,624 $ 48,638,474
============ ============
UNDISTRIBUTED NET
INVESTMENT INCOME............................. $ 348,042 $ (149,359)
============ ============
</TABLE>

- ------------------------------
* Commencement of operations.

See notes to the financial statements.

<PAGE> 103

<TABLE>
<CAPTION>
JNL/EAGLE SMALLCAP
JNL/ALGER GROWTH SERIES JNL/EAGLE CORE EQUITY SERIES EQUITY SERIES
- ------------------------------------------ ------------------------------------------- ------------------------------------------
PERIOD FROM PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, SIX MONTHS SEPTEMBER 16, SIX MONTHS SEPTEMBER 16,
ENDED 1996 TO ENDED 1996* TO ENDED 1996* TO
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
- ----------------- ----------------------- ------------------ ----------------------- ----------------- -----------------------
<S> <C> <C> <C> <C> <C>
$ (16,761) $ (3,590) $ 21,760 $ 4,657 $ (11,734) $ (1,017)
1,457,247 (523,886) 18,942 (4,427) 85,723 (9,337)
- - - - - -
6,716,761 3,281,071 700,863 79,272 761,291 213,709
- - - - - -
----------- ----------- ---------- ---------- ---------- ----------
8,157,247 2,753,595 741,565 79,502 835,280 203,355
----------- ----------- ---------- ---------- ---------- ----------
- - - (4,657) - -
- - - - - -
- - - (320) - -
----------- ----------- ---------- ---------- ---------- ----------
- - - (4,977) - -
----------- ----------- ---------- ---------- ---------- ----------
21,190,205 34,332,656 4,164,355 2,027,399 4,747,096 1,760,997
- - - 2,270 - -
(4,490,207) (7,483,397) (76,980) (149,997) (543,607) (20,263)
----------- ----------- ---------- ---------- ---------- ----------
16,699,998 26,849,259 4,087,375 1,879,672 4,203,489 1,740,734
----------- ----------- ---------- ---------- ---------- ----------
24,857,245 29,602,854 4,828,940 1,954,197 5,038,769 1,944,089
38,252,091 8,649,237 1,954,197 - 1,944,089 -
----------- ----------- ---------- ---------- ---------- ----------
$63,109,336 $38,252,091 $6,783,137 $1,954,197 $6,982,858 $1,944,089
=========== =========== ========== ========== ========== ==========
$ (16,761) $ - $ 21,760 $ - $ (11,734) $ -
=========== =========== ========== ========== ========== ==========

JNL/PUTNAM GROWTH SERIES
------------------------------------------
PERIOD FROM
SIX MONTHS APRIL 1,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
----------------- -----------------------
<S> <C>
$ 123,788 $ 80,288
(9,326) 1,130,393
(4) -
4,034,412 152,651
- -
------------ -----------
4,148,870 1,363,332
------------ -----------
- (83,226)
- (608,389)
- -
------------ -----------
- (691,615)
------------ -----------
44,384,677 21,124,451
- 673,981
(11,012,077) (2,184,704)
------------ -----------
33,372,600 19,613,728
------------ -----------
37,521,470 20,285,445
22,803,515 2,518,070
------------ -----------
$ 60,324,985 $22,803,515
============ ===========
$ 123,788 $ -
============ ===========
</TABLE>

<PAGE> 104
JNL SERIES TRUST

STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
JNL/PUTNAM VALUE PPM AMERICA/JNL
EQUITY SERIES BALANCED SERIES
------------------------------------ ------------------------------------
PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, SIX MONTHS APRIL 1,
ENDED 1996 TO ENDED 1996 TO
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
---------------- ------------------ ---------------- ------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ 312,421 $ 174,463 $ 528,198 $ 279,327
Net realized gain (loss) on:
Investments........................ 3,035,341 299,700 1,681,791 933,110
Foreign currency related
items............................ (5) - - -
Net change in unrealized
appreciation (depreciation) on:
Investments........................ 1,062,329 1,455,960 889,072 476,858
Foreign currency related
items............................ - - - -
--------------- ----------------- --------------- -----------------
Net increase in net assets
from operations.................... 4,410,086 1,930,123 3,099,061 1,689,295
--------------- ----------------- --------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income.......... - (183,956) - (301,815)
From net realized gain on
investment transactions............ - (226,911) - (364,079)
Return of capital................... - - - -
--------------- ----------------- --------------- -----------------
Total distributions to
shareholders....................... - (410,867) - (665,894)
--------------- ----------------- --------------- -----------------
SHARE TRANSACTIONS:
Proceeds from the sale of
shares............................. 33,836,730 15,648,559 17,448,456 21,937,839
Reinvestment of distributions....... - 398,998 - 652,446
Cost of shares redeemed............. (2,054,694) (3,171,440) (2,470,594) (3,955,738)
--------------- ----------------- --------------- -----------------
Net increase in net assets
from share transactions............ 31,782,036 12,876,117 14,977,862 18,634,547
--------------- ----------------- --------------- -----------------
Net increase in net assets.......... 36,192,122 14,395,373 18,076,923 19,657,948
Net assets beginning of
period............................. 17,760,678 3,365,305 24,418,577 4,760,629
--------------- ----------------- --------------- -----------------
NET ASSETS END OF PERIOD............ $53,952,800 $17,760,678 $42,495,500 $24,418,577
=============== ================= =============== =================
UNDISTRIBUTED NET
INVESTMENT INCOME.................. $ 317,693 $ 5,272 $ 530,284 $ 2,086
=============== ================= =============== =================

PPM AMERICA/JNL
HIGH YIELD BOND SERIES
-----------------------------------
PERIOD FROM
SIX MONTHS APRIL 1,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
--------------- ------------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ 1,026,125 $ 691,766
Net realized gain (loss) on:
Investments....................... 252,381 217,828
Foreign currency related
items........................... - -
Net change in unrealized
appreciation (depreciation) on:
Investments....................... 608,904 383,145
Foreign currency related
items........................... - -
-------------- -----------------
Net increase in net assets
from operations................... 1,887,410 1,292,739
-------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income.......... - (798,203)
From net realized gain on
investment transactions........... - (23,388)
Return of capital................... - -
-------------- -----------------
Total distributions to
shareholders...................... - (821,591)
-------------- -----------------
SHARE TRANSACTIONS:
Proceeds from the sale of
shares............................ 26,437,309 12,401,767
Reinvestment of distributions....... - 790,186
Cost of shares redeemed............. (2,992,787) (6,422,234)
-------------- -----------------
Net increase in net assets
from share transactions........... 23,444,522 6,769,719
-------------- -----------------
Net increase in net assets.......... 25,331,932 7,240,867
Net assets beginning of
period............................ 13,396,396 6,155,529
-------------- -----------------
NET ASSETS END OF PERIOD............ $38,728,328 $13,396,396
============== =================
UNDISTRIBUTED NET
INVESTMENT INCOME................... $ 1,032,166 $ 6,041
============== =================
</TABLE>

See notes to the financial statements.

<PAGE> 105

<TABLE>
<CAPTION>
SALOMON BROTHERS/JNL
PPM AMERICA/JNL SALOMON BROTHERS/JNL U.S. GOVERNMENT
MONEY MARKET SERIES GLOBAL BOND SERIES & QUALITY BOND SERIES
- ------------------------------------------------ ------------------------------------- ------------------------------------------
PERIOD FROM PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, SIX MONTHS APRIL 1, SIX MONTHS APRIL 1,
ENDED 1996 TO ENDED 1996 TO ENDED 1996 TO
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996 1997 1996
- ----------------------- ----------------------- ----------------- ------------------ ----------------- -----------------------
<S> <C> <C> <C> <C> <C>
$ 777,585 $ 614,491 $ 663,370 $ 574,698 $ 407,981 $ 288,314
- - (113,274) 275,846 (63,645) 29,022
- - (25,816) 57,170 - -
- - 550,860 178,039 26,228 82,805
- - 20,666 (21,421) - -
------------- ------------ ----------- ----------- ----------- -----------
777,585 614,491 1,095,806 1,064,332 370,564 400,141
------------- ------------ ----------- ----------- ----------- -----------
(777,585) (614,491) - (754,598) - (318,115)
- - - (280,691) - (30,967)
- - - - - -
------------- ------------ ----------- ----------- ----------- -----------
(777,585) (614,491) - (1,035,289) - (349,082)
------------- ------------ ----------- ----------- ----------- -----------
49,513,756 43,176,521 15,544,519 9,953,802 9,604,691 8,748,229
753,715 606,298 - 870,854 - 330,365
(36,163,437) (26,846,271) (2,757,092) (4,750,819) (2,406,407) (2,304,702)
------------- ------------ ----------- ----------- ----------- -----------
14,104,034 16,936,548 12,787,427 6,073,837 7,198,284 6,773,892
------------- ------------ ----------- ----------- ----------- -----------
14,104,034 16,936,548 13,883,233 6,102,880 7,568,848 6,824,951
23,752,187 6,815,639 12,482,943 6,380,063 9,831,740 3,006,789
------------- ------------ ----------- ----------- ----------- -----------
$ 37,856,221 $ 23,752,187 $26,366,176 $12,482,943 $17,400,588 $ 9,831,740
============= ============ =========== =========== =========== ===========
$ - $ - $ 688,276 $ 24,906 $ 407,981 $ -
============= ============ =========== =========== =========== ===========

T. ROWE PRICE/JNL
ESTABLISHED GROWTH SERIES
-------------------------------------
PERIOD FROM
SIX MONTHS APRIL 1,
ENDED 1996 TO
JUNE 30, DECEMBER 31,
1997 1996
----------------- ------------------
<S> <C>
$ 156,679 $ 93,779
3,051,814 93,499
(22,159) (12,360)
6,745,522 3,384,049
(430) 44
---------------- -----------------
9,931,426 3,559,011
---------------- -----------------
- (91,356)
- (212,086)
- (1,234,953)
---------------- -----------------
- (1,538,395)
---------------- -----------------
42,450,763 27,757,264
- 1,489,773
(3,675,217) (7,748,754)
---------------- -----------------
38,775,546 21,498,283
---------------- -----------------
48,706,972 23,518,899
32,290,941 8,772,042
---------------- -----------------
$80,997,913 $32,290,941
================ =================
$ 152,783 $ (3,896)
================ =================
</TABLE>

<PAGE> 106

JNL SERIES TRUST

STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
T. ROWE PRICE/JNL
INTERNATIONAL T. ROWE PRICE/JNL
EQUITY INVESTMENT SERIES MID-CAP GROWTH SERIES
------------------------------------- -----------------------------------
PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, SIX MONTHS APRIL 1,
ENDED 1996 TO ENDED 1996 TO
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1996 1997 1996
----------------- ------------------ --------------- ----------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $ 460,425 $ 294,949 $ (70,767) $ (39,345)
Net realized gain (loss) on:
Investments........................ 1,116,702 203,836 695,662 750,795
Foreign currency related
items.............................. (144,993) 25,484 (11,782) (3)
Net change in unrealized
appreciation (depreciation) on:
Investments........................ 5,871,412 2,679,873 5,437,730 3,708,604
Foreign currency related
items.............................. 3,545 2,709 (207) -
---------------- -------------- --------------- -----------------
Net increase in net assets
from operations.................... 7,307,091 3,206,851 6,050,636 4,420,051
---------------- -------------- --------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income......... - (465,733) - (144,094)
From net realized gain on
investment transactions............ - (51,200) - (1,107,685)
Return of capital................... - - - -
---------------- -------------- --------------- -----------------
Total distributions to
shareholders....................... - (516,933) - (1,251,779)
---------------- -------------- --------------- -----------------
SHARE TRANSACTIONS:
Proceeds from the sale of
shares............................. 21,608,084 22,581,023 44,299,012 41,147,930
Reinvestment of distributions....... - 255,509 - 1,198,205
Cost of shares redeemed............. (2,633,656) (1,533,092) (5,881,029) (8,955,066)
---------------- -------------- --------------- -----------------
Net increase in net assets
from share transactions............ 18,974,428 21,303,440 38,417,983 33,391,069
---------------- -------------- --------------- -----------------
Net increase in net assets.......... 26,281,519 23,993,358 44,468,619 36,559,341
Net assets beginning of
period............................. 48,204,329 24,210,971 47,104,489 10,545,148
---------------- -------------- --------------- -----------------
NET ASSETS END OF PERIOD............ $ 74,485,848 $48,204,329 $91,573,108 $47,104,489
================ ============== =============== =================
UNDISTRIBUTED NET
INVESTMENT INCOME................. $ 525,964 $ 65,539 $ (71,068) $ (301)
================ ============== =============== =================
</TABLE>

See notes to the financial statements.

<PAGE> 107
JNL SERIES TRUST

FINANCIAL HIGHLIGHTS (UNAUDITED)

<TABLE>
<CAPTION>
JNL AGGRESSIVE GROWTH SERIES JNL CAPITAL GROWTH SERIES
-------------------------------------- --------------------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, MAY 15, SIX MONTHS APRIL 1, MAY 15,
ENDED 1996 TO 1995* ENDED 1996 TO 1995*
JUNE 30, DECEMBER 31, TO MARCH 31, JUNE 30, DECEMBER 31, TO MARCH 31,
1997 1996 1996 1997 1996 1996
---------- ------------ ------------ ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF
PERIOD........................................ $ 13.38 $ 13.13 $ 10.00 $ 14.46 $ 13.86 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss).................................... 0.06 0.05 0.01 (0.03) 0.06 -
Net realized and unrealized gains on
investments and foreign currency
related items............................. 0.76 1.10 3.53 0.72 0.70 4.70
--------- ----------- ---------- -------- ----------- ----------
Total income from investment
operations................................ 0.82 1.15 3.54 0.69 0.76 4.70
--------- ----------- ---------- -------- ----------- ----------
LESS DISTRIBUTIONS:
From net investment income.................. - (0.05) - - - -
From net realized gains on investment
transactions.............................. - (0.71) (0.41) - (0.16) (0.84)
Return of capital........................... - (0.14) - - - -
--------- ----------- ---------- -------- ----------- ----------
Total distributions......................... - (0.90) (0.41) - (0.16) (0.84)
--------- ----------- ---------- -------- ----------- ----------
Net increase............................... 0.82 0.25 3.13 0.69 0.60 3.86
--------- ----------- ---------- -------- ----------- ----------
NET ASSET VALUE, END OF PERIOD............... $ 14.20 $ 13.38 $ 13.13 $ 15.15 $ 14.46 $ 13.86
========= =========== ========== ======== =========== ==========
TOTAL RETURN (a)............................. 6.13% 8.72% 35.78% 4.77% 5.45% 47.94%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................... $62,173 $29,555 $ 8,527 $60,969 $36,946 $ 9,578
Ratio of net operating expenses
to average net assets (b) (c)............ 1.10% 1.09% 1.09% 1.10% 1.09% 1.09%
Ratio of net investment income to average
net assets (b)(c)........................ 1.29% 0.77% 0.27% (0.11)% 0.91% (0.49)%
Ratio of interest expense and dividends
on short positions to average net assets
(b)...................................... - - - - - -
Portfolio turnover......................... 75.11% 85.22% 163.84% 51.45% 115.88% 128.56%
Average commission rate paid (d)........... $0.0262 $0.0242 n/a $0.0367 $0.0196 n/a

RATIO INFORMATION ASSUMING NO EXPENSE
REIMBURSEMENT OR FEES PAID INDIRECTLY
Ratio of expenses to average net assets
(b)...................................... 1.24% 1.40% 2.77% 1.19% 1.27% 2.08%
Ratio of net investment income to average
net assets (b)........................... 1.15% 0.46% (1.41)% (0.20)% 0.73% (1.48)%
</TABLE>

- ---------------
* Commencement of operations
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all distributions, and a complete redemption of the
investment at the net asset value at the end of the period. Total return
is not annualized.
(b) Annualized.
(c) Computed after giving effect to the Advisor's expense reimbursement and
fees paid indirectly.
(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

<PAGE> 108

<TABLE>
<CAPTION>
JNL GLOBAL EQUITIES SERIES JNL/ALGER GROWTH SERIES JNL/EAGLE CORE EQUITY SERIES
- -------------------------------------- -------------------------------------- ------------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, MAY 15, SIX MONTHS APRIL 1, OCTOBER 16, SIX MONTHS SEPTEMBER 16,
ENDED 1996 TO 1995* ENDED 1996 TO 1995* ENDED 1996* TO
JUNE 30, DECEMBER 31, TO MARCH 31, JUNE 30, DECEMBER 31, TO MARCH 31, JUNE 30, DECEMBER 31,
1997 1996 1996 1997 1996 1996 1997 1996
- ---------- ------------ ------------ ---------- ------------ ------------ -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>

$ 15.20 $ 13.75 $ 10.00 $ 11.16 $ 10.38 $ 10.00 $ 10.62 $ 10.00

0.10 0.03 0.10 - - - 0.04 0.03

2.60 2.72 4.02 1.87 0.78 0.38 1.95 0.62
- ---------- ---------- ---------- ------- -------- -------- ------- -------

2.70 2.75 4.12 1.87 0.78 0.38 1.99 0.65
- ---------- ---------- ---------- ------- -------- -------- ------- -------

- (0.08) - - - - - (0.03)

- (0.90) (0.37) - - - - -
- (0.32) - - - - - -
- ---------- ---------- ---------- ------- -------- -------- ------- -------
- (1.30) (0.37) - - - - (0.03)
- ---------- ---------- ---------- ------- -------- -------- ------- -------
2.70 1.45 3.75 1.87 0.78 0.38 1.99 0.62
- ---------- ---------- ---------- ------- -------- -------- ------- -------
$ 17.90 $ 15.20 $ 13.75 $ 13.03 $ 11.16 $ 10.38 $ 12.61 $ 10.62
========== ========== ========== ======= ======== ======== ======= =======
17.76% 19.99% 41.51% 16.76% 7.51% 3.80% 18.74% 6.47%

$112,333 $ 48,638 $ 16,141 $63,109 $ 38,252 $ 8,649 $ 6,783 $ 1,954

1.15% 1.14% 1.15% 1.125% 1.07% 1.03% 1.05% 1.05%

1.35% 0.37% 0.39% (0.07)% (0.02)% (0.17)% 1.14% 1.10%

- - - - - - - -
40.70% 52.02% 142.36% 51.91% 59.92% 50.85% 22.58% 1.36%
$ 0.0043 $ 0.0162 n/a $0.0720 $ 0.0441 n/a $0.0591 $0.0452

1.35% 1.63% 2.25% 1.15% 1.19% 1.89% 2.02% 4.57%

1.15% (0.12)% (0.71)% (0.09)% (0.14)% (1.03)% 0.17% (2.42)%
</TABLE>

<PAGE> 109

JNL SERIES TRUST

FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
JNL/EAGLE SMALLCAP
EQUITY SERIES JNL/PUTNAM GROWTH SERIES
------------------------- --------------------------------------
PERIOD FROM PERIOD FROM PERIOD FROM
SIX MONTHS SEPTEMBER 16, SIX MONTHS APRIL 1, MAY 15,
ENDED 1996* TO ENDED 1996 TO 1995*
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, TO MARCH 31,
1997 1996 1997 1996 1996
---------- ------------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF
PERIOD........................................ $ 11.54 $ 10.00 $ 14.21 $ 12.50 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss)...................................... (0.02) (0.01) 0.03 0.04 0.01
Net realized and unrealized gains on
investments and foreign currency related
items....................................... 1.97 1.55 1.26 2.12 3.66
-------- -------- --------- ----------- ----------
Total income from investment
operations.................................. 1.95 1.54 1.29 2.16 3.67
-------- -------- --------- ----------- ----------
LESS DISTRIBUTIONS:
From net investment
income...................................... - - - (0.05) -
From net realized gains on investment
transactions................................ - - - (0.40) (1.17)
Return of capital............................ - - - - -
-------- -------- --------- ---------- ---------
Total distributions.......................... - - - (0.45) (1.17)
-------- -------- --------- ---------- ----------
Net increase................................. 1.95 1.54 1.29 1.71 2.50
-------- -------- --------- ----------- ----------
NET ASSET VALUE, END OF PERIOD................ $ 13.49 $ 11.54 $ 15.50 $ 14.21 $ 12.50
======== ======== ========= =========== ==========

TOTAL RETURN (a).............................. 16.90% 15.40% 9.08% 17.28% 37.69%
RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (in
thousands).................................. $ 6,983 $ 1,944 $ 60,325 $ 22,804 $ 2,518
Ratio of net operating expenses to average
net assets (b) (c) (e)...................... 1.10% 1.10% 1.05% 1.04% 0.95%
Ratio of net investment income to average
net assets (b) (c).......................... (0.62)% (0.26)% 0.63% 0.94% 0.28%
Ratio of interest expense and dividends on
short positions to average net assets
(b)......................................... - - 0.25% - -
Portfolio turnover........................... 26.30% 28.01% 220.95% 184.33% 255.03%
Average commission rate paid (d)............. $0.0593 $0.0264 $ 0.0481 $ 0.0175 n/a
RATIO INFORMATION ASSUMING NO EXPENSE
REIMBURSEMENT OR FEES PAID INDIRECTLY
Ratio of expenses to average net assets (b)
(f)......................................... 2.03% 4.77% 1.10% 1.27% 5.38%
Ratio of net investment income to average
net assets (b).............................. (1.55)% (3.93)% 0.58% 0.71% (4.15)%
</TABLE>

* Commencement of operations
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all distributions, and a complete redemption of the
investment at the net asset value at the end of the period. Total return
is not annualized.
(b) Annualized.
(c) Computed after giving effect to the Advisor's expense reimbursement and
fees paid indirectly.
(d) Disclosure required for fiscal years beginning after September 1, 1995.
(e) For the JNL/Putnam Growth Series during the six months ended June 30, 1997,
the net operating expense ratio excludes interest expense and dividends on
short positions. The ratio including interest expense and dividends on
short positions during the six months ended June 30, 1997 was 1.25%.
(f) For the JNL/Putnam Growth Series during the six months ended June 30, 1997,
the expense ratio excludes interest expense and dividends on short
positions. The ratio including interest expense and dividends on short
positions during the six months ended June 30, 1997 was 1.30%.

See notes to the financial statements.

<PAGE> 110

<TABLE>
<CAPTION>
JNL/PUTNAM VALUE EQUITY SERIES PPM AMERICA/JNL BALANCED SERIES PPM AMERICA/JNL HIGH YIELD BOND SERIES
- -------------------------------------- --------------------------------------- -------------------------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, MAY 15, SIX MONTHS APRIL 1, MAY 15, SIX MONTHS APRIL 1, MAY 15,
ENDED 1996 TO 1995* ENDED 1996 TO 1995* ENDED 1996 TO 1995*
JUNE 30, DECEMBER 31, TO MARCH 31, JUNE 30, DECEMBER 31, TO MARCH 31, JUNE 30, DECEMBER 31, TO MARCH 31,
1997 1996 1996 1997 1996 1996 1997 1996 1996
- ---------- ------------ ------------ ----------- ------------ ------------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>

$ 14.50 $ 12.77 $10.00 $ 11.92 $ 11.17 $ 10.00 $ 10.67 $ 10.23 $ 10.00

0.09 0.10 0.23 0.16 0.10 0.25 0.30 0.51 0.73

1.92 1.97 2.86 0.95 0.98 1.40 0.41 0.64 0.04
- ---------- ----------- ----------- ---------- ----------- ----------- ------------ --------- ------------

2.01 2.07 3.09 1.11 1.08 1.65 0.71 1.15 0.77
- ---------- ----------- ----------- ---------- ----------- ----------- ------------ --------- ------------

- (0.15) (0.17) - (0.15) (0.19) - (0.69) (0.54)

- (0.19) (0.15) - (0.18) (0.29) - (0.02) -
- - - - - - - - -
- ---------- ----------- ----------- ---------- ----------- ----------- ------------ --------- ------------
- (0.34) (0.32) - (0.33) (0.48) - (0.71) (0.54)
- ---------- ----------- ----------- ---------- ----------- ----------- ------------ --------- ------------
2.01 1.73 2.77 1.11 0.75 1.17 0.71 0.44 0.23
- ---------- ----------- ----------- ---------- ----------- ----------- ------------ --------- ------------
$ 16.51 $ 14.50 $12.77 $ 13.03 $ 11.92 $ 11.17 $ 11.38 $ 10.67 $ 10.23
========== =========== =========== ========== =========== =========== ============ ========= ============

13.86% 16.25% 31.14% 9.31% 9.72% 16.60% 6.65% 11.24% 7.82%

$53,953 $17,761 $ 3,365 $42,495 $24,419 $ 4,761 $38,728 $13,396 $ 6,156

0.97% 0.85% 0.87% 0.99% 1.04% 1.01% 0.90% 0.88% 0.88%

2.02% 2.29% 2.33% 3.28% 2.39% 2.99% 8.33% 8.64% 8.34%

- - - - - - - - -
92.65% 13.71% 30.12% 121.49% 158.15% 115.84% 94.25% 113.08% 186.21%
$0.0370 $0.0259 n/a $0.0347 $0.0494 n/a n/a n/a n/a

1.12% 1.53% 2.28% 1.09% 1.22% 3.71% 0.98% 1.21% 1.50%

1.87% 1.61% 0.91% 3.18% 2.21% 0.29% 8.25% 8.31% 7.72%
</TABLE>

<PAGE> 111

JNL SERIES TRUST

FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
PPM AMERICA/JNL MONEY MARKET SERIES SALOMON BROTHERS/JNL GLOBAL BOND SERIES
---------------------------------------- --------------------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, MAY 15, SIX MONTHS APRIL 1, MAY 15,
ENDED 1996 TO 1995* ENDED 1996 TO 1995*
JUNE 30, DECEMBER 31, TO MARCH 31, JUNE 30, DECEMBER 31, TO MARCH 31,
1997 1996 1996 1997 1996 1996
------------ ------------ ------------ ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD............. $ 1.00 $ 1.00 $ 1.00 $ 10.63 $ 10.46 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).................... 0.02 0.04 0.04 0.27 0.42 0.81
Net realized and unrealized gains on
investments and foreign currency related
items.......................................... - - - 0.31 0.70 0.24
-------- ----------- ----------- --------- ----------- -----------
Total income from investment
operations..................................... 0.02 0.04 0.04 0.58 1.12 1.05
-------- ----------- ----------- --------- ----------- -----------
LESS DISTRIBUTIONS:
From net investment income...................... (0.02) (0.04) (0.04) - (0.69) (0.56)
From net realized gains on investment
transactions................................... - - - - (0.26) (0.03)
Return of capital............................... - - - - - -
------- ----------- ----------- --------- ----------- -----------
Total distributions............................. (0.02) (0.04) (0.04) - (0.95) (0.59)
------- ----------- ----------- --------- ----------- -----------
Net increase.................................... - - - 0.58 0.17 0.46
------- ----------- ----------- --------- ----------- -----------
NET ASSET VALUE, END OF PERIOD................. $ 1.00 $ 1.00 $ 1.00 $ 11.21 $ 10.63 $ 10.46
======= =========== =========== ========= =========== ===========
TOTAL RETURN (a)................................. 2.41% 3.61% 4.59% 5.46% 10.68% 10.74%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)..................................... $37,856 $23,752 $6,816 $26,366 $12,483 $ 6,380
Ratio of net operating expenses to average
net assets (b) (c)............................. 0.75% 0.75% 0.75% 1.00% 0.99% 1.00%
Ratio of net investment income to average
net assets (b) (c)............................. 4.85% 4.75% 5.06% 7.21% 7.52% 9.01%
Ratio of interest expense and dividends on
short positions to average net assets (b)...... - - - - - -
Portfolio turnover.............................. - - - 84.42% 109.85% 152.89%
Average commission rate paid (d)................ n/a n/a n/a n/a n/a n/a

RATIO INFORMATION ASSUMING NO EXPENSE
REIMBURSEMENT OR FEES PAID INDIRECTLY
Ratio of expenses to average net assets (b)...... 0.80% 0.85% 1.30% 1.36% 1.44% 2.14%
Ratio of net investment income to average
net assets (b).................................. 4.80% 4.65% 4.51% 6.85% 7.07% 7.87%
</TABLE>

- ---------------------------------------
* Commencement of operations
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all distributions, and a complete redemption of the
investment at the net asset value at the end of the period. Total return
is not annualized.
(b) Annualized.
(c) Computed after giving effect to the Advisor's expense reimbursement and
fees paid indirectly.
(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

<PAGE> 112

<TABLE>
<CAPTION>
SALOMON BROTHERS/JNL U.S. T. ROWE PRICE/JNL T. ROWE PRICE/JNL INTERNATIONAL
GOVERNMENT & QUALITY BOND SERIES ESTABLISHED GROWTH SERIES EQUITY INVESTMENT SERIES
- --------------------------------------- -------------------------------------- ---------------------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, MAY 15, SIX MONTHS APRIL 1, MAY 15, SIX MONTHS APRIL 1, MAY 15,
ENDED 1996 TO 1995* ENDED 1996 TO 1995* ENDED 1996 TO 1995*
JUNE 30, DECEMBER 31, TO MARCH 31, JUNE 30, DECEMBER 31, TO MARCH 31, JUNE 30, DECEMBER 31, TO MARCH 31,
1997 1996 1996 1997 1996 1996 1997 1996 1996
- ----------- ------------ ------------ ---------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>

$ 10.20 $ 10.09 $ 10.00 $ 12.56 $ 11.36 $ 10.00 $ 12.08 $ 11.25 $ 10.00

0.24 0.24 0.45 0.03 0.03 0.07 0.08 0.06 0.04

- 0.24 0.02 2.18 1.81 2.68 1.32 0.90 1.21
- ----------- -------- -------- -------- ------- -------- ------- ------- -------

0.24 0.48 0.47 2.21 1.84 2.75 1.40 0.96 1.25
- ----------- -------- -------- -------- ------- -------- ------- ------- -------

- (0.34) (0.34) - (0.04) (0.06) - (0.12) -

- (0.03) (0.04) - (0.09) (1.33) - (0.01) -
- - - - (0.51) - - - -
- ----------- -------- -------- -------- ------- -------- ------- ------- -------
- (0.37) (0.38) - (0.64) (1.39) - (0.13) -
- ----------- -------- -------- -------- ------- -------- ------- ------- -------
0.24 0.11 0.09 2.21 1.20 1.36 1.40 0.83 1.25
- ----------- -------- -------- -------- ------- -------- ------- ------- -------
$ 10.44 $ 10.20 $ 10.09 $ 14.77 $ 12.56 $ 11.36 $ 13.48 $ 12.08 $ 11.25
=========== ======== ======== ======== ======= ======== ======= ======= =======
2.35% 4.82% 4.65% 17.60% 16.12% 28.23% 11.59% 8.54% 12.50%

$ 17,401 $ 9,832 $ 3,007 $ 80,998 $32,291 $ 8,772 $74,486 $48,204 $24,211

0.85% 0.84% 0.84% 1.00% 1.00% 1.00% 1.24% 1.25% 1.25%

6.11% 5.72% 5.41% 0.60% 0.59% 0.75% 1.59% 1.09% 0.78%

- - - - - - - - -
152.20% 218.50% 253.37% 36.76% 36.41% 101.13% 7.86% 5.93% 16.45%
n/a n/a n/a $ 0.0349 $0.0288 n/a $0.0018 $0.0257 n/a

1.09% 1.37% 2.53% 1.04% 1.11% 1.11% 1.38% 1.29% 2.14%

5.87% 5.19% 3.72% 0.56% 0.48% 0.48% 1.45% 1.05% (0.11)%
</TABLE>

<PAGE> 113

JNL SERIES TRUST

FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
T. ROWE PRICE/JNL
MID-CAP GROWTH SERIES
--------------------------------------
PERIOD FROM PERIOD FROM
SIX MONTHS APRIL 1, MAY 15,
ENDED 1996 TO 1995*
JUNE 30, DECEMBER 31, TO MARCH 31,
1997 1996 1996
---------- ------------ ------------
<S> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD...... $ 14.89 $ 13.43 $ 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income
(loss)................................ (0.01) (0.05) 0.06
Net realized and unrealized gains on
investments and foreign currency
related items.......................... 0.92 1.92 3.90
------- ------- -------
Total income from investment
operations............................. 0.91 1.87 3.96
------- ------- -------
LESS DISTRIBUTIONS:
From net investment income................ - (0.05) -
From net realized gains on investment
transactions........................... - (0.36) (0.53)
Return of capital......................... - - -
------- ------- -------
Total distributions....................... - (0.41) (0.53)
------- ------- -------
Net increase.............................. 0.91 1.46 3.43
------- ------- -------
NET ASSET VALUE, END OF PERIOD............ $ 15.80 $ 14.89 $ 13.43
======= ======= =======
TOTAL RETURN (A)........................... 6.11% 13.91% 40.06%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in thousands)... $91,573 $47,104 $10,545
Ratio of net operating expenses to average
net assets (b) (c)...................... 1.10% 1.10% 1.10%
Ratio of net investment income to average
net assets (b) (c)...................... (0.21)% (0.18)% 0.82%
Ratio of interest expense and dividends on
short postions to average net assets
(b)..................................... - - -
Portfolio turnover......................... 22.65% 25.05% 66.04%
Average commission rate paid (d)........... $0.0487 $0.0326 n/a

RATIO INFORMATION ASSUMING NO EXPENSE
REIMBURSEMENT OR FEES PAID INDIRECTLY
Ratio of expenses to average net assets
(b) .................................... 1.12% 1.14% 2.10%
Ratio of net investment income to average
net assets (b).......................... (0.23)% (0.22)% (0.18)%
</TABLE>

- ----------------------------
* Commencement of operations
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all distributions, and a complete
redemption of the investment at the net asset value at the end of the
period. Total return is not annualized.
(b) Annualized.
(c) Computed after giving effect to the Advisor's expense reimbursement and
fees paid indirectly.
(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

<PAGE> 114

JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. ORGANIZATION

JNL Series Trust ("Trust") is an open-end management investment company
organized under the laws of Massachusetts, by a Declaration of Trust, dated
June 1, 1994. The Trust is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940. The Trust currently
offers shares in sixteen (16) separate Series, each with its own investment
objective. The shares of the Trust are sold primarily to life insurance
company separate accounts to fund the benefits of variable annuity policies.

The Trust is comprised of the following Series: JNL Aggressive Growth, JNL
Capital Growth and JNL Global Equities for which Janus Capital Corporation
serves as the sub-adviser; JNL/Alger Growth for which Fred Alger Management,
Inc. serves as the sub-adviser; JNL/Eagle Core Equity and JNL/Eagle SmallCap
Equity for which Eagle Asset Management, Inc. serves as sub-adviser; JNL/Putnam
Growth and JNL/Putnam Value Equity for which Putnam Investments, Inc. serves as
the sub-advisor; PPM America/JNL Balanced, PPM America/JNL High Yield Bond and
PPM America/JNL Money Market for which PPM America, Inc. serves as the
sub-adviser; Salomon Brothers/JNL Global Bond and Salomon Brothers/JNL U.S.
Government & Quality Bond for which Salomon Brothers Asset Management Inc.
serves as the sub-adviser; T. Rowe Price/JNL Established Growth and T. Rowe
Price/JNL Mid-Cap Growth for which T. Rowe Price Associates, Inc. serves as the
sub-adviser; and T. Rowe Price/JNL International Equity Investment for which
Rowe Price-Fleming International, Inc. serves as the sub-adviser. Salomon
Brothers Asset Management Inc. has entered into a sub-advisory consulting
agreement with its London based affiliate, Salomon Brothers Asset Management
Limited pursuant to which it will provide certain sub-advisory services to
Salomon Brothers Asset Management Inc. relating to currency transactions and
investments in non-dollar denominated debt securities for the benefit of the
Series. Effective May 1, 1997, the JNL/Phoenix Investment Counsel Balanced
Series is the PPM America/JNL Balanced Series and is managed by PPM America,
Inc., the JNL/Phoenix Investment Counsel Growth Series is the JNL/Putnam Growth
Series and is managed by Putnam Investment Management, Inc., and the PPM
America/JNL Value Equity Series is the JNL/Putnam Value Equity Series and is
managed by Putnam Investment Management, Inc. Jackson National Financial
Services, Inc. ("JNFSI"), a wholly-owned subsidiary of Jackson National Life
Insurance Company ("Jackson National"), serves as investment adviser
("Adviser") for all the Series of the Trust. PPM America, Inc. is an affiliate
of the Adviser. Shares are presently offered only to Jackson National and its
separate accounts.

As of June 30, 1997, Jackson National's investment in the Trust totaled
$52,523,453.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements.

USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of net increase (decrease) in
net assets from operations during the reporting period. Actual results could
differ from those estimates.

SECURITY VALUATION -- Bonds are valued on the basis of prices furnished by
a service which determines prices for normal institutional size trading units
of bonds, without regard to exchange or over-the-counter prices. When
quotations are not readily available, bonds are valued at fair market value
determined by procedures approved by the Board of Trustees. Stocks listed on a
national or foreign stock exchange are valued at the final sale price, or final
bid price in absence of a sale. Stocks not listed on a national or foreign
stock exchange are valued at the closing bid price on the over-the-counter
market. Short-term securities maturing within 60 days of purchase, and all
securities in the PPM America/JNL Money Market Series, are valued at amortized
cost, which approximates market value. American Depository Receipts ("ADRs"),
which are certificates representing shares of foreign securities deposited in
domestic and foreign banks, are traded and valued in U.S. dollars.

<PAGE> 115

JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for no later than trade date plus one. Dividend income is recorded
on the exdividend date or, in the case of certain foreign securities, as soon
as reliable information is available to the Trust. Interest income, including
level-yield amortization of discounts and premiums, is accrued daily. Realized
gains and losses are determined on the specific identification basis, which is
the same basis used for federal income tax purposes.

FOREIGN CURRENCY TRANSLATIONS -- The accounting records of the Trust are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S. dollars
using exchange rates in effect at the close of the New York Stock Exchange.
Purchases and sales of investment securities, income receipts, and expense
payments are translated into U.S. dollars at the exchange rates prevailing on
the respective dates of such transactions.

Realized gains and losses arising from selling foreign currencies and
certain non-dollar denominated fixed income securities, entering into forward
foreign currency exchange contracts, and accruing income or settling portfolio
purchases and sales denominated in a foreign currency paid or received at a
later date are recorded as net realized foreign currency related gains (losses)
and are considered ordinary income for tax purposes. Realized and unrealized
gains and losses on investments which result from changes in foreign currency
exchange rates are primarily included in net realized gains (losses) on
investments and net unrealized appreciation (depreciation) on investments,
respectively.

FOREIGN CURRENCY CONTRACTS -- Some of the Series may enter into foreign
currency contracts ("contracts"), generally to hedge foreign currency exposure
between trade date and settlement date on security purchases and sales ("spot
hedges") or to minimize foreign currency risk on portfolio securities
denominated in foreign currencies ("position hedges"). All contracts are
valued at the forward currency exchange rate and are marked-to-market daily.
When the contract is open, the change in market value is recorded as net
unrealized appreciation (depreciation) on foreign currency related items.
When the contract is closed, the difference between the value of the contract
at the time it was opened and the value at the time it was closed is recorded
as net realized gain (loss) on foreign currency related items.

The use of forward foreign currency exchange contracts does not eliminate
fluctuations in the underlying prices of the Series' portfolio securities, but
it does establish a rate of exchange that can be achieved in the future.
Although contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain that might result should
the value of the currency increase. Additionally, the Series could be exposed
to the risk of a previously hedged position becoming unhedged if the
counterparties to the contracts are unable to meet the terms of the contracts.
See Note 7 for a listing of open forward foreign currency exchange contracts as
of June 30, 1997.

WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The Series may purchase
securities on a when-issued or delayed delivery basis. On the trade date, the
Series record purchases of when-issued securities and reflects the values of
such securities in determining net asset value in the same manner as other
portfolio securities. Income is not accrued until settlement date.

UNREGISTERED SECURITIES -- Some of the Series own certain investment
securities which are unregistered and thus restricted to resale. These
securities are valued by the Series after giving due consideration to pertinent
factors including recent private sales, market conditions and the issuer's
financial performance. Where future dispositions of the securities require
registration under the Securities Act of 1933, the Series have the right to
include their securities in such registration generally without cost to the
Series. The Series have no right to require registration of unregistered
securities. Unregistered and other illiquid securities are limited to 15% (10%
in the case of PPM America/JNL Money Market Series and the JNL/Alger Growth
Series) of the net assets of a Series.

OPTIONS TRANSACTIONS -- Some of the Series may write covered call options
on portfolio securities. The risk in writing a call option is that the Series
gives up the opportunity of profit if the market price of the security
increases. Option contracts are valued at the closing prices on their
exchanges and the Series will realize a gain or loss upon expiration or closing
of the option transaction. When an option is exercised, the proceeds on sales
for a written call option are adjusted by the amount of premium received.

<PAGE> 116

JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

FUTURES CONTRACTS -- Certain Series in the Trust may utilize futures
contracts to a limited extent. The risk associated with the use of futures
contracts includes the possibility of an illiquid market. Futures contracts
are valued based upon their quoted daily settlement prices. Changes in initial
settlement value are accounted for as unrealized appreciation (depreciation)
until the contracts are terminated at which time realized gains and losses are
recognized.

SHORT POSITIONS -- Certain Series in the Trust may sell securities short
for hedging purposes. For financial statement purposes, an amount equal to the
settlement amount is included in the Statement of Assets and Liabilities as an
asset and equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current value of the short position. The
Series is liable for any dividends payable on securities while those securities
are in a short position. As collateral for its short positions, the Series is
required under the 1940 Act to maintain segregated assets consisting of cash,
cash equivalents or liquid securities. These segregated assets are required to
be adjusted daily to reflect changes in the value of the securities sold short.

DOLLAR ROLL TRANSACTIONS -- The Salomon Brothers/JNL Global Bond Series
and the Salomon Brothers/JNL U.S. Government & Quality Bond Series entered
into dollar roll transactions with respect to mortgage securities in which the
Series sells mortgage securities and simultaneously agrees to repurchase
similar (same type, coupon and maturity) securities at a later date at an
agreed upon price. During the period between the sale and repurchase, the
Series forgoes principal and interest paid on the mortgage securities sold.
The Series is compensated by the interest earned on the cash proceeds of the
initial sale and from negotiated fees paid by brokers offered as an inducement
to the Series to "roll over" its purchase commitments.

REPURCHASE AGREEMENTS -- Certain Series in the Trust may invest in
repurchase agreements. A repurchase agreement involves the purchase of a
security by a Series and a simultaneous agreement (generally by a bank or
broker-dealer) to repurchase that security back from the Series at a specified
price and date or upon demand. Securities pledged as collateral for repurchase
agreements are held by the Series custodian bank until the maturity of the
repurchase agreement. Procedures for all repurchase agreements have been
designed to assure that the daily market value of the collateral is in excess
of the repurchase agreement in the event of default.

DISTRIBUTIONS TO SHAREHOLDERS -- The PPM America/JNL Money Market Series
declares dividends daily and pays dividends monthly. For all other Series,
dividends from net investment income are declared and paid annually, but may
be done more frequently to avoid excise tax. Distributions of net realized
capital gains, if any, will be distributed at least annually. All income,
dividends, and capital gains distributions, if any, on Series shares are
reinvested automatically in additional shares of the Series at the NAV
determined on the first business day following the record date, unless
otherwise requested by the shareholder.

FEDERAL INCOME TAXES -- The Trust's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute income in amounts that will avoid federal income or
excise taxes for each Series. The Trust may periodically make
reclassifications among certain of its capital accounts as a result of the
recognition and characterization of certain income and capital gain
distributions determined annually in accordance with federal tax regulations
which may differ from generally accepted accounting principles.

For federal income tax purposes, JNL Capital Growth Series, JNL/Alger
Growth Series and JNL/Eagle SmallCap Equity Series have capital loss carryovers
totaling $168,603, $696,137 and $5,034, respectively, expiring in 2004, which
can be used to offset future realized capital gains.

NOTE 3. INVESTMENT MANAGEMENT FEES AND TRANSACTIONS WITH AFFILIATES

JNFSI is the investment adviser of each Series and provides each Series
with professional investment supervision and management. JNFSI provides
accounting services, preparation of financial statements, tax services, and
regulatory reports to the Trust. In addition to providing the services
described above, JNFSI selects, contracts with, and compensates sub-advisers to
manage of the assets of the Trust.

As compensation for its services, JNFSI receives a fee from the Trust
computed separately for each Series. The fee, which is accrued daily and
payable monthly, is based on the average daily net assets of each Series. The
following is a schedule of the fees each Series is currently obligated to pay
JNFSI.

<PAGE> 117

JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
$0 TO $50 TO $150 TO $300 TO OVER
(M - MILLIONS) $50 M $150 M $300 M $500 M $500 M
- -------------- ----- ------ ------- ------- ------
<S> <C> <C> <C> <C> <C>
JNL Aggressive Growth Series.............................. .95% .95% .90% .85% .85%
JNL Capital Growth Series................................. .95% .95% .90% .85% .85%
JNL Global Equities Series................................ 1.00% 1.00% .95% .90% .90%
JNL/Alger Growth Series................................... .975% .975% .975% .95% .90%
JNL/Eagle Core Equity Series.............................. .90% .85% .85% .75% .75%
JNL/Eagle SmallCap Equity Series.......................... .95% .95% .90% .90% .85%
JNL/Putnam Growth Series*................................. .90% .90% .85% .80% .80%
JNL/Putnam Value Equity Series**.......................... .90% .90% .85% .80% .80%
PPM America/JNL Balanced Series***........................ .75% .70% .675% .65% .625%
PPM America/JNL High Yield Bond Series.................... .75% .70% .675% .65% .625%
PPM America/JNL Money Market Series....................... .60% .60% .575% .55% .525%
Salomon Brothers/JNL Global Bond Series................... .85% .85% .80% .80% .75%
Salomon Brothers/JNL U.S. Government & Quality Bond Series .70% .70% .65% .60% .55%
T. Rowe Price/JNL Established Growth Series............... .85% .85% .80% .80% .80%
T. Rowe Price/JNL International Equity Investment Series.. 1.10% 1.05% 1.00% .95% .90%
T. Rowe Price/JNL Mid-Cap Growth Series................... .95% .95% .90% .90% .90%
</TABLE>

* Prior to May 1, 1997, the fee for the JNL/Putnam Growth Series was .90%,
.85%, .80%, .75% and .70%, respectively.
** Prior to May 1, 1997, the fee for the JNL/Putnam Value Equity Series was
.75%, .70%, .675%, .65% and .625%, respectively.
*** Prior to May 1, 1997, the fee for the PPM America/JNL Balanced Series was
.90%, .80%, .75%, .70% and .65%, respectively.

As compensation for their services, the sub-advisers receive fees from
JNFSI computed separately for each Series. The fees are calculated on the basis
of the average net assets of each Series. The following is a schedule of the
management fees JNFSI currently is obligated to pay the sub-advisers out of the
advisory fee it receives from each Series as specified above.

<TABLE>
<CAPTION>
$0 TO $50 TO $100 TO $150 TO $300 TO OVER
(M - MILLIONS) $50 M $100 M $150M $300 M $500M $500 M
- -------------- ---------- -------- ---------- ---------- ---------- ------
<S> <C> <C> <C> <C> <C> <C>
JNL Aggressive Growth Series.............................. .55% .55% .50% .50% .50% .45%
JNL Capital Growth Series................................. .55% .55% .50% .50% .50% .45%
JNL Global Equities Series................................ .55% .55% .50% .50% .50% .45%
JNL/Alger Growth Series................................... .55% .55% .55% .55% .50% .45%
JNL/Eagle Core Equity Series.............................. .45% .40% .40% .40% .30% .30%
JNL/Eagle SmallCap Equity Series.......................... .50% .50% .50% .45% .45% .40%
JNL/Putnam Growth Series*................................. .50% .50% .50% .45% .35% .35%
JNL/Putnam Value Equity Series**.......................... .50% .50% .50% .45% .35% .35%
PPM America/JNL Balanced Series*.......................... .25% .20% .20% .175% .15% .125%
PPM America/JNL High Yield Series......................... .25% .20% .20% .175% .15% .125%
PPM America/JNL Money Market Series....................... .20% .15% .15% .125% .10% .075%
Salomon Brothers/JNL Global Bond Series................... .375% .35% .35% .30% .30% .25%
Salomon Brothers/JNL U.S. Government & Quality Bond Series .225% .225% .225% .175% .15% .10%

<CAPTION>
$0 TO $20 TO $50 TO
$20 M $50 M $200 M $200 M+
--------- ---------- ---------- ------------
T. Rowe Price/JNL Established Growth Series............................ .45% .40% .40%*** .40%
T. Rowe Price/JNL International Equity Investment Series............... .75% .60% .50% .50%***
T. Rowe Price/JNL Mid-Cap Growth Series................................ .60% .50% .50%*** .50%
</TABLE>

* Prior to May 1, 1997, the sub-advisory fees for these Series were payable to
Phoenix Investment Counsel, Inc. and were: $0 to $50 million - .50%; $50 to
$150 million - .40%; $150 to $300 million - .30%; $300 to $500 million - .25%;
over $500 million - .20%.

<PAGE> 118

JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

** Prior to May 1, 1997, the sub-advisory fee for this Series was payable to
PPM and was: $0 to $50 million - .25%; $50 to $150 million - .20%; $150 to
$300 million - .175%; $300 to $500 million - .15%; over $500 million -
.125%.
*** When average assets exceed this amount, the sub-advisory fee asterisked is
applicable to all amounts in this Series.

Trustees not affiliated with Jackson National receive a fee of $4,000
for each meeting of the Board of Trustees attended as well as certain out of
pocket expenses. No remuneration has been paid by the Trust to any of the
officers or affiliated Trustees. The Trust paid fees of $7,500 to
non-affiliated Trustees for the six month period ended June 30, 1996.

Each Series is also charged for operating expenses, including trustee
fees, custodian and accounting services fees, legal and auditing services, and
other miscellaneous expenses. Currently, the Adviser reimburses each of the
Series for annual expenses (excluding the management fee) in excess of .15% of
average daily net assets. These voluntary reimbursements may be modified or
discontinued by the Adviser at any time.

NOTE 4. SECURITY TRANSACTIONS

During the six months ended June 30, 1997, cost of purchases and proceeds
from sales and maturities of securities, other than short-term investments,
were as follows (in thousands):

<TABLE>
<CAPTION>
COST OF PROCEEDS FROM SALES
PURCHASES AND MATURITIES
---------------- -------------------
<S> <C> <C>
JNL Aggressive Growth Series.............................. $ 40,326 $23,223
JNL Capital Growth Series................................. 40,207 21,233
JNL Global Equities Series................................ 77,933 27,996
JNL/Alger Growth Series................................... 39,306 23,966
JNL/Eagle Core Equity Series.............................. 4,752 826
JNL/Eagle SmallCap Equity Series.......................... 4,958 952
JNL/Putnam Growth Series.................................. 107,046 67,500
JNL/Putnam Value Equity Series............................ 59,583 28,682
PPM America/JNL Balanced Series........................... 52,362 34,574
PPM America/JNL High Yield Bond Series.................... 46,169 22,118
Salomon Brothers/JNL Global Bond Series................... 27,150 19,586
Salomon Brothers/JNL U.S. Government & Quality Bond Series 44,068 40,374
T. Rowe Price/JNL Established Growth Series............... 53,868 18,481
T. Rowe Price/JNL International Equity Investment Series.. 22,503 4,334
T. Rowe Price/JNL Mid-Cap Growth Series................... 47,431 13,398
</TABLE>

Included in these transactions were purchases and sales of U.S. Government
obligations of $8,007,083 and $5,008,162 in the PPM America/JNL Balanced
Series; $4,419,278 and $4,439,684 in the Salomon Brothers/JNL Global Bond
Series; $20,784,518 and $14,886,113 in the Salomon Brothers/JNL U.S. Government
& Quality Bond Series, respectively.

<PAGE> 119
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

The federal income tax cost basis and gross unrealized appreciation and
depreciation on investments as of June 30, 1997 were as follows (in thousands):

<TABLE>
<CAPTION>
TAX GROSS GROSS NET
COST UNREALIZED UNREALIZED UNREALIZED
BASIS APPRECIATION DEPRECIATION APPRECIATION
----------- ---------------- -------------------- ------------------
<S> <C> <C> <C> <C>
JNL Aggressive Growth Series............................ $57,697 $ 5,489 $ (919) $ 4,570
JNL Capital Growth Series............................... 52,803 8,838 (394) 8,444
JNL Global Equities Series.............................. 93,117 19,518 (1,687) 17,831
JNL/Alger Growth Series................................. 54,716 10,745 (365) 10,380
JNL/Eagle Core Equity Series............................ 5,677 800 (32) 768
JNL/Eagle SmallCap Equity Series........................ 5,695 1,129 (154) 975
JNL/Putnam Growth Series................................ 64,090 4,417 (426) 3,991
JNL/Putnam Value Equity Series.......................... 52,017 3,212 (533) 2,679
PPM America/JNL Balanced Series......................... 40,862 1,617 (121) 1,496
PPM America/JNL High Yield Bond Series.................. 37,672 1,048 (25) 1,023
Salomon Brothers/JNL Global Bond Series................. 26,033 817 (65) 752
Salomon Brothers/JNL U.S. Government & Quality
Bond Series........................................... 21,752 107 (31) 76
T. Rowe Price/JNL Established Growth Series............. 70,553 11,365 (655) 10,710
T. Rowe Price/JNL International Equity Investment Series 63,181 12,379 (1,380) 10,999
T. Rowe Price/JNL Mid-Cap Growth Series................. 81,830 13,428 (2,879) 10,549
</TABLE>

NOTE 5. TRUST TRANSACTIONS

Transactions of trust shares for the six months ended June 30, 1997 were
as follows:

<TABLE>
<CAPTION>
SHARES DISTRIBUTIONS SHARES NET
PURCHASED REINVESTED REDEEMED INCREASE
---------------- ------------- --------------- ------------

<S> <C> <C> <C> <C>
JNL Aggressive Growth Series...................... 2,510,471 - (340,727) 2,169,744
JNL Capital Growth Series......................... 1,987,917 - (518,548) 1,469,369
JNL Global Equities Series........................ 3,712,508 - (637,801) 3,074,707
JNL/Alger Growth Series........................... 1,799,987 - (385,136) 1,414,851
JNL/Eagle Core Equity Series...................... 360,605 - (6,581) 354,024
JNL/Eagle SmallCap Equity Series.................. 395,670 - (46,714) 348,956
JNL/Putnam Growth Series *........................ 3,030,429 - (742,073) 2,288,356
JNL/Putnam Value Equity Series *.................. 2,174,911 - (132,787) 2,042,124
PPM America/JNL Balanced Series *................. 1,413,155 - (201,046) 1,212,109
PPM America/JNL High Yield Bond Series............ 2,420,716 - (273,571) 2,147,145
PPM America/JNL Money Market Series............... 49,513,756 753,715 (36,163,437) 14,104,034
Salomon Brothers/JNL Global Bond Series........... 1,434,402 - (255,743) 1,178,659
Salomon Brothers/JNL U.S Government & Quality Bond
Series.......................................... 937,619 - (234,913) 702,706
T. Rowe Price/JNL Established Growth Series....... 3,185,601 - (274,508) 2,911,093
T. Rowe Price/JNL International Equity Investment
Series.......................................... 1,750,794 - (215,579) 1,535,215
T. Rowe Price/JNL Mid-Cap Growth Series........... 3,037,669 - (404,713) 2,632,956
</TABLE>

<PAGE> 120

JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Transactions of trust shares for the period ending December 31, 1996 were
as follows:

<TABLE>
<CAPTION>
SHARES DISTRIBUTIONS SHARES NET
PURCHASED REINVESTED REDEEMED INCREASE
---------------- ------------- --------------- ------------
<S> <C> <C> <C> <C>
JNL Aggressive Growth Series...................... 1,957,943 130,538 (528,956) 1,559,525
JNL Capital Growth Series......................... 2,355,859 25,885 (517,730) 1,864,014
JNL Global Equities Series........................ 2,508,660 215,630 (698,526) 2,025,764
JNL/Alger Growth Series........................... 3,282,099 - (686,090) 2,596,009
JNL/Eagle Core Equity Series...................... 198,190 214 (14,346) 184,058
JNL/Eagle SmallCap Equity Series.................. 170,418 - (1,912) 168,506
JNL/Phoenix Investment Counsel Growth Series...... 1,507,501 47,430 (151,986) 1,402,945
JNL/Phoenix Investment Counsel Balanced Series.... 1,895,883 54,735 (327,417) 1,623,201
PPM America/JNL Value Equity Series............... 1,153,246 27,517 (219,113) 961,650
PPM America/JNL High Yield Bond Series............ 1,157,121 74,057 (577,564) 653,614
PPM America/JNL Money Market Series............... 43,176,521 606,298 (26,846,271) 16,936,548
Salomon Brothers/JNL Global Bond Series........... 898,823 81,924 (416,558) 564,189
Salomon Brothers/JNL U.S Government & Quality Bond
Series........................................... 852,084 32,389 (218,886) 665,587
T. Rowe Price/JNL Established Growth Series....... 2,278,033 118,612 (597,638) 1,799,007
T. Rowe Price/JNL International Equity Investment
Series........................................... 1,947,418 21,151 (131,846) 1,836,723
T. Rowe Price/JNL Mid-Cap Growth Series........... 2,905,453 80,471 (608,146) 2,377,778
</TABLE>

* Effective May 1, 1997, the JNL/Phoenix Investment Counsel Balanced Series
is the PPM America/JNL Balanced Series and is managed by PPM America,
Inc., the JNL/Phoenix Investment Counsel Growth Series is the JNL/Putnam
Growth Series and is managed by Putnam Investment Management, Inc., and
the PPM America/JNL Value Equity Series is the JNL/Putnam Value Equity
Series and is managed by Putnam Investment Management, Inc.

NOTE 6. FOREIGN SECURITIES

Investing in securities of foreign companies and foreign governments
involves special risks and considerations not typically associated with
investing in U.S. companies and the U.S. Government. These risks include
revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more volatile
than those of securities of comparable U.S. companies and the U.S. Government.

NOTE 7. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS

At June 30, 1997, the following Series had entered into "position hedge"
forward foreign currency exchange contracts that obligate the Series to deliver
and receive currencies at specified future dates. The unrealized appreciation
(depreciation) of $29,827, ($58,732), $375,570 and $5,098, in the JNL
Aggressive Growth Series, JNL Capital Growth Series, JNL Global Equities
Series, and Salomon Brothers/JNL Global Bond Series, respectively, is included
in net unrealized appreciation on foreign currency related items in the
accompanying financial statements. The terms of the open contracts are as
follows:

JNL AGGRESSIVE GROWTH SERIES

<TABLE>
<CAPTION>
SETTLEMENT U.S. $ VALUE U.S. $ VALUE
DATE CURRENCY TO BE DELIVERED AT 6/30/97 CURRENCY TO BE RECEIVED AT 6/30/97
- ---------- ---------------------------- ------------ --------------------------- ------------
<S> <C> <C> <C> <C> <C> <C>
8/11/97 335,000 Deutsche Mark $192,671 202,756 US $ $202,756
8/11/97 113,537 US $ 113,537 190,000 Deutsche Mark 109,276
8/13/97 250,000 Deutsche Mark 143,804 149,986 US $ 149,986
10/23/97 275,000 Deutsche Mark 158,997 164,197 US $ 164,197
7/15/97 150,000 Finnish Markka 28,921 32,408 US $ 32,408
7/23/97 10,000 Finnish Markka 1,929 2,120 US $ 2,120
</TABLE>

<PAGE> 121

JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

JNL AGGRESSIVE GROWTH SERIES (CONTINUED)

<TABLE>
<CAPTION>
SETTLEMENT U.S. $ VALUE U.S. $ VALUE
DATE CURRENCY TO BE DELIVERED AT 6/30/97 CURRENCY TO BE RECEIVED AT 6/30/97
- ---------- ------------------------------------ ------------ ------------------------------------ -------------
<S> <C> <C> <C> <C> <C> <C>
9/25/97 250,000 Finnish Markka $ 48,457 50,261 US $ $ 50,261
10/22/97 15,000 Finnish Markka 2,913 2,951 US $ 2,951
11/28/97 1,000,000 Finnish Markka 194,737 198,681 US $ 198,681
12/4/97 130,000 Finnish Markka 25,327 25,750 US $ 25,750
7/15/97 20,000 British Sterling Pound 33,292 33,691 US $ 33,691
7/15/97 32,733 US $ 32,733 20,000 British Sterling Pound 33,292
7/18/97 35,000 British Sterling Pound 58,255 58,349 US $ 58,349
7/18/97 57,251 US $ 57,251 35,000 British Sterling Pound 58,255
9/25/97 50,000 British Sterling Pound 83,050 79,845 US $ 79,845
10/22/97 4,000 British Sterling Pound 6,639 6,512 US $ 6,512
11/28/97 120,000 British Sterling Pound 198,936 194,412 US $ 194,412
12/4/97 47,000 British Sterling Pound 77,903 76,726 US $ 76,726
7/15/97 25,000,000 Italian Lira 14,702 16,151 US $ 16,151
7/15/97 15,925 US $ 15,925 25,000,000 Italian Lira 14,702
9/25/97 470,000 Netherlands Guilder 240,902 250,493 US $ 250,493
9/25/97 10,607 US $ 10,607 20,000 Netherlands Guilder 10,251
12/4/97 347,000 Swedish Krona 45,143 45,392 US $ 45,393
------------ -------------
$1,786,631 $1,816,458
============ =============
</TABLE>

JNL CAPITAL GROWTH SERIES

JNL GLOBAL EQUITIES SERIES

<TABLE>
<CAPTION>
SETTLEMENT U.S. $ VALUE U.S. $ VALUE
DATE CURRENCY TO BE DELIVERED AT 6/30/97 CURRENCY TO BE RECEIVED AT 6/30/97
- ---------- ------------------------------------ --------------- ------------------------------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
7/18/97 600,000 Swiss Franc $ 411,884 444,685 US $ $ 444,985
7/23/97 150,000 Swiss Franc 103,035 107,976 US $ 107,976
7/24/97 600,000 Swiss Franc 412,193 427,198 US $ 427,198
8/11/97 400,000 Swiss Franc 275,370 277,681 US $ 277,681
8/11/97 282,267 US $ 282,267 400,000 Swiss Franc 275,370
9/12/97 1,500,000 Swiss Franc 1,036,393 1,037,775 US $ 1,037,775
11/12/97 122,000 Swiss Franc 84,918 87,455 US $ 87,455
7/17/97 275,000 Deutsche Mark 157,877 175,710 US $ 175,170
7/18/97 30,000 Deutsche Mark 17,224 19,134 US $ 19,134
7/23/97 400,000 Deutsche Mark 229,744 249,196 US $ 249,196
7/24/97 200,000 Deutsche Mark 114,880 123,343 US $ 123,343
8/11/97 75,000 Deutsche Mark 43,135 45,715 US $ 45,715
7/18/97 750,000 Finnish Markka 144,638 160,875 US $ 160,875
11/12/97 93,000 Finnish Markka 18,089 18,467 US $ 18,467
7/18/97 500,000 French Franc 85,187 94,434 US $ 94,434
7/31/97 159,417 US $ 159,417 924,620 French Franc 157,673
8/4/97 3,000,000 French Franc 511,709 547,815 US $ 547,815
8/11/97 2,000,000 French Franc 341,286 358,025 US $ 358,025
11/28/97 6,000,000 French Franc 1,031,281 1,057,222 US $ 1,057,222
7/2/97 231,546 US $ 231,546 139,143 British Sterling Pound 231,702
7/24/97 1,955,640 US $ 1,955,640 1,200,000 British Sterling Pound 1,996,965
7/24/97 1,800,000 British Sterling Pound 2,995,447 2,949,120 US $ 2,949,120
7/28/97 1,200,000 British Sterling Pound 1,996,732 1,940,711 US $ 1,940,711
7/18/97 115,250,000 Japanese Yen 1,008,257 1,016,628 US $ 1,016,628
</TABLE>

<PAGE> 122

JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

JNL GLOBAL EQUITIES SERIES (CONTINUED)

SALOMON BROTHERS/JNL GLOBAL BOND SERIES

<TABLE>
<CAPTION>
SETTLEMENT U.S. $ VALUE U.S. $ VALUE
DATE CURRENCY TO BE DELIVERED AT 6/30/97 CURRENCY TO BE RECEIVED AT 6/30/97
- ---------- --------------------------- ------------- --------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
7/3/97 423,631 French Franc $ 72,101 75,784 US $ $ 75,784
7/3/97 73,460 US $ 73,460 426,763 French Franc 72,635
7/16/97 19,362 Australian $ 14,608 14,997 US $ 14,997
7/16/97 719,750 Canadian $ 521,778 520,051 US $ 520,051
7/16/97 443,781 US $ 443,781 616,412 Canadian $ 446,863
7/16/97 521,738 Danish Kroner 78,651 80,070 US $ 80,071
7/16/97 29,476 US $ 29,476 521,738 Danish Kroner 28,749
10/3/97 54,901 Canadian $ 39,984 39,668 US $ 39,668
10/3/97 70,547 Irish Punts 106,662 107,020 US $ 107,020
10/6/97 18,992 US $ 18,992 32,477 Deutsche Mark 18,753
---------- ----------
$1,399,493 $1,404,591
========== ==========
</TABLE>

<PAGE> 123
JNL AGGRESSIVE GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
---------------- -------------
COMMON STOCKS -- 72.95%
- -----------------------
<S> <C> <C>
FINLAND -- 1.14%
- ----------------
CONGLOMERATES -- 1.14%
Metra Oy, B Shares.......................... 23,650 $ 712,768
FRANCE -- 1.07%
- ---------------
CHEMICALS -- 0.92%
Rhone Poulenc SA............................. 14,005 571,954

COMPUTERS & TECHNOLOGY -- 0.15%
Axime (En Segin) (a)........................ 806 95,320
----------
Total France............................. 667,274

GERMANY -- 2.64%
- ----------------
AUTOMOBILES -- 2.64%
Volkswagen AG................................ 2,146 1,645,090

NETHERLANDS-- 0.53%
- -------------------
CHEMICALS -- 0.38%
Akzo Nobel NV................................ 1,706 233,794

HOUSEHOLD APPLIANCES & FURNISHINGS -- 0.15%
Philips Electronic NV....................... 1,337 95,767
----------
Total Netherlands........................ 329,561

SWEDEN -- 0.37%
- ---------------
INSURANCE -- 0.27%
Skandia Foersaekrings AB..................... 4,474 164,836

SECURITY SYSTEMS -- 0.10%
Securitas AB................................ 2,307 65,015
----------
Total Sweden............................. 229,851

UNITED KINGDOM -- 0.98%
- -----------------------
CONGLOMERATES -- 0.98%
Rentokil Initial PLC......................... 174,760 612,905

UNITED STATES -- 66.22%
- -----------------------
APPAREL & TEXTILES -- 0.60%
Gucci Group N.V.-N.Y......................... 5,750 370,156

BANKS -- 4.43%
Ambanc Holding Co., Inc..................... 1,950 31,687
Bank of New York, Inc....................... 9,350 406,725
BankAmerica Corp............................ 9,500 613,344
Citicorp.................................... 6,175 744,473
Fleet Financial Group, Inc.................. 1,175 74,319
Klamath First Bancorp, Inc.................. 1,950 37,294
PFF Bancorp, Inc. (a)....................... 2,125 39,844
Provident Financial Holdings, Inc. (a)...... 1,400 23,275
Roslyn Bancorp, Inc......................... 5,075 116,091
State Street Corporation.................... 3,700 171,125
Wells Fargo & Co............................ 1,841 496,150
----------
2,754,327
<CAPTION>

SHARES MARKET VALUE
---------------- -------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
BUSINESS SERVICES -- 4.62%
First Data Corp............................. 18,200 $ 799,662
Intelliquest Information Group (a).......... 6,275 141,187
Lamar Advertising Co. Class A (a)........... 6,275 160,013
Nokia Corp. ADR............................. 17,900 1,320,125
Outdoor Systems, Inc........................ 3,600 137,700
Technology Solutions Co. (a)................ 1,875 74,063
Teletech Holdings, Inc...................... 9,350 245,438
----------
2,878,188
CHEMICALS -- 2.65%
Monsanto Co................................. 38,350 1,651,447

COMPUTERS & BUSINESS EQUIPMENT -- 3.45%
Cisco Systems, Inc. (a)..................... 12,025 807,178
Compaq Computer Corp........................ 5,675 563,244
EMC Corp. (a)............................... 7,775 303,225
Indus Group, Inc. (a)....................... 3,775 76,444
Intelligroup, Inc. (a)...................... 20,000 192,500
Sapient Corp. (a)........................... 4,075 201,713
----------
2,144,304
DRUGS & HEALTH CARE -- 10.31%
Fresenius Medical Care ADR (a).............. 5,700 166,012
Idexx Laboratories, Inc. (a)................ 10,100 125,619
Omnicare, Inc............................... 25,950 814,181
Pacificare Health Systems Class B........... 2,450 156,494
Protein Design Labs, Inc. (a)............... 2,925 83,362
Rhone Poulenc Rorer, Inc.................... 11,300 1,026,888
Sofamor Danek Group, Inc. (a) ............. 6,625 303,094
Teva Pharmaceutical Industries, Ltd. ADR.... 20,725 1,341,944
Warner Lambert Co........................... 19,325 2,401,131
----------
6,418,725
ELECTRICAL EQUIPMENT -- 3.58%
ASM Lithography Holdings NV (a)............. 3,125 182,812
Philips Electronics NV...................... 13,423 964,778
UCAR International, Inc. (a)................ 15,150 693,113
Westinghouse Electric Corp.................. 16,275 386,766
----------
2,227,469
ELECTRONICS -- 4.50%
Analog Devices, Inc. (a).................... 28,383 753,923
Intel Corp.................................. 6,950 985,597
KLA-Tencor Corp. (a)........................ 2,225 108,469
Pittway Corp., Class A...................... 19,125 951,469
----------
2,799,458
FINANCIAL SERVICES -- 3.38%
Amresco, Inc. (a)........................... 1,950 41,925
Associates First Capital Corp. Class A...... 16,325 906,038
Astoria Financial Corp...................... 1,375 65,312
Catskill Financial Corp..................... 1,075 16,663
Charles Schwab Corp......................... 8,975 365,170
First USA Paymentech, Inc................... 8,950 258,991
</TABLE>
See notes to the financial statements.

<PAGE> 124

JNL AGGRESSIVE GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
COMMON STOCKS (CONTINUED) -------- ------------
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
FINANCIAL SERVICES (CONTINUED)
Household International, Inc................ 575 $ 67,527
Peekskill Financial Corp.................... 1,025 15,375
TF Financial Corp........................... 1,700 33,363
Travelers Group, Inc........................ 4,750 299,547
Western National Corp....................... 1,350 36,197
----------
2,106,108
GAS EXPLORATION -- 0.41%
Triton Energy Corp. Class A (a)............. 5,600 256,550
HOUSEHOLD APPLIANCES & FURNISHINGS -- 0.31%
Industrie Natuzzi SPA ADR................... 7,525 192,828
INDUSTRIAL MACHINERY -- 0.20%
Chicago Bridge & Iron NV.................... 5,700 126,112
INSURANCE -- 3.57%
Equifax, Inc................................ 9,875 367,227
Nationwide Financial Services, Inc. Class A. 14,325 380,508
Reliance Group Holdings, Inc................ 4,675 55,516
UNUM Corp................................... 33,854 1,421,868
----------
2,225,119
MINING -- 1.16%
Minnesota Mining & Manufacturing Co......... 5,400 550,800
Potash Corp. of Saskatchewan, Inc........... 2,308 173,244
----------
724,044
OIL -- 0.42%
Texaco, Inc................................ 2,400 261,000
PETROLEUM SERVICES -- 3.20%
Noble Drilling Corp. (a).................... 26,975 608,623
Santa Fe International Corp. (a)............ 40,700 1,383,800
----------
1,992,423
PUBLISHING -- 0.28%
Scholastic Corp. (a)...................... 5,000 175,000
REAL ESTATE -- 0.50%
Redwood Trust, Inc........................ 6,700 313,225
RETAIL -- 2.13%
Abercrombie & Fitch Co. Class A (a)....... 11,825 218,762
Costco Cos., Inc. (a)..................... 18,925 622,159
Linens & Things, Inc. (a)................. 10,900 322,912
Nordstrom, Inc............................ 3,350 164,359
----------
1,328,192
SAVINGS & LOAN -- 0.73%
Dime Bancorp, Inc......................... 3,275 57,312
FSF Financial Corp........................ 200 3,475

SHARES MARKET VALUE
-------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
SAVINGS & LOAN (CONTINUED)
First Defiance Financial Corp............ 1,725 $ 25,012
First Savings Bancorp.................... 325 7,231
Great Western Financial Corp............. 5,250 282,188
North Central Bancshares, Inc............ 1,050 16,275
Queens County Bancorp.................... 1,350 61,425
----------
452,918
SOFTWARE -- 9.34%
Aspen Technology, Inc. (a)............... 22,250 837,156
HBO & Co................................. 13,700 943,587
JDA Software Group, Inc. (a)............. 1,875 63,984
Microsoft Corp. (a)...................... 1,700 214,838
Parametric Technology Corp. (a).......... 65,025 2,767,627
Peoplesoft, Inc. (a)..................... 7,750 408,813
Rational Software Corp. (a).............. 3,625 60,945
Wind River Systems, Inc. (a)............. 13,550 518,288
----------
5,815,238
TELECOMMUNICATIONS -- 5.34%
Ascend Communications, Inc. (a)........... 7,050 277,594
Cincinnati Bell, Inc...................... 50,760 1,598,940
Lucent Technologies, Inc.................. 11,400 821,512
Millicom International Cellular SA (a).... 1,050 50,137
Pricellular Corp., Class A (a)............ 5,750 52,828
Worldcom, Inc. (a)........................ 16,304 521,728
----------
3,322,739
TRANSPORTATION -- 1.11%
Caliber Systems, Inc..................... 16,600 618,350
Wisconsin Central Transportation Corp.(a) 1,950 72,638
----------
690,988
----------
Total United States................. 41,226,558
----------
Total Common Stock
(cost $40,545,619)................ 45,424,007
----------
<CAPTION>

PRINCIPAL AMOUNT
----------------
SHORT TERM INVESTMENTS -- 27.05%
- --------------------------------
<S> <C> <C>

U.S. GOVERNMENT AGENCIES -- 27.05%
Federal Home Loan Bank Discount Note
5.63%, 10/15/1997....................... $3,500,000 3,444,042
Federal Home Loan Mortgage Discount Note
5.75%, 07/01/1997........................ 8,400,000 8,400,000
Federal National Mortgage Assoc. Discount Note
5.50%, 07/02/1997........................ 5,000,000 4,999,236
----------
Total Short Term Investments
(cost $16,841,216)....................... 16,843,278
----------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $57,386,835)....................... $62,267,285
===========
</TABLE>
- ------------------------------------------------------

(a) Non-income producing security.

See notes to the financial statements.

29
<PAGE> 125
JNL CAPITAL GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS -- 92.19%
- -----------------------
<S> <C> <C>
UNITED KINGDOM -- 10.86%
- ------------------------
CONGLOMERATES -- 0.59%
Rentokil Initial PLC.......................... 102,950 $ 361,058

FOOD & BEVERAGES -- 10.27%
Pizza Express................................ 270,377 2,836,633
J.D. Wetherspoon PLC......................... 153,044 3,453,412
------------
6,290,045
------------
Total United Kingdom....................... 6,651,103

UNITED STATES --81.33%
- ----------------------
AIRLINES -- 0.34%
Ryanair Holdings PLC ADR (a)................. 7,625 206,828

APPAREL & TEXTILES -- 0.12%
G & K Services, Inc. Class A................. 2,025 75,431

AUTOMOBILE -- 0.86%
O'Reilly Automotive, Inc. (a)................ 13,625 524,563

BANKS -- 0.63%
First Empire State Corp...................... 1,100 370,700
Northern Trust Corp.......................... 350 16,931
------------
387,631
BROADCASTING & MEDIA -- 6.11%
Central Newspapers, Inc. Class A............. 5,675 406,472
Clear Channel Communications, Inc. (a)....... 29,200 1,795,800
Evergreen Media Corp. Class A (a)............ 22,050 983,981
Heftel Broadcasting Corp. (a)................ 10,125 559,406
------------
3,745,659
BUILDING & CONSTRUCTION -- 7.61%
Fastenal Co.................................. 95,175 4,663,575

BUSINESS SERVICES -- 7.21%
Apollo Group, Inc. (a)....................... 39,925 1,407,356
Catalina Marketing Corp. (a)................. 2,800 134,750
Coinmachine Laundry Corp. (a)................ 20,700 491,625
Outdoor Systems, Inc. (a).................... 21,400 818,550
Paychex, Inc................................. 34,850 1,324,300
Profit Recovery Group International, Inc.(a). 14,950 207,431
Robert Half International, Inc. (a).......... 675 31,767
------------
4,415,779
CHEMICALS -- 0.47%
Minerals Technologies, Inc................... 7,750 290,625

COMPUTERS & BUSINESS EQUIPMENT -- 0.10%
Amdahl Corp. (a)............................. 6,925 60,594

DRUGS & HEALTH CARE -- 11.22%
Depotech Corp. (a)........................... 19,875 270,797
Healthcare Financial Partners, Inc. (a)...... 17,650 359,619
Karrington Health, Inc. (a).................. 12,775 191,625
Omnicare, Inc................................ 49,850 1,564,044

SHARES MARKET VALUE
--------------- ------------

<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -------------------------
UNITED STATES (CONTINUED)
- -------------------------
DRUGS & HEALTH CARE (CONTINUED)
Sofamor Danek Group, Inc. (a).................... 50,900 $ 2,328,675
Sunrise Assisted Living, Inc. (a)................ 8,400 294,000
Sybron International Corp. (a)................... 350 13,956
Teva Pharmaceutical Industries ADR............... 28,550 1,848,612
------------
6,871,328
ELECTRICAL EQUIPMENT -- 4.11%
Barnett, Inc. (a)................................ 45,200 1,107,400
Dentsply International, Inc...................... 3,500 171,500
Littlefuse, Inc. (a)............................. 43,800 1,237,350
------------
2,516,250
ELECTRONICS -- 0.55%
Methode Electronics, Inc. Class A................ 16,800 333,900

FINANCIAL SERVICES -- 6.57%
Associates First Capital Corp.................... 3,975 220,612
Charles Schwab Corp.............................. 14,075 572,677
Credit Acceptance Corp. (a)...................... 16,875 217,266
Federal Agricultural Mortgage Corp. Class C (a).. 3,975 144,094
Finova Group, Inc................................ 925 70,762
Household International, Inc..................... 1,050 123,309
Insignia Financial Group, Inc. (a)............... 83,550 1,514,344
Medallion Financial Corp......................... 33,475 640,209
Regions Financial Corp........................... 3,600 113,850
TCF Financial Corp............................... 1,250 61,719
Travelers Group, Inc............................. 2,800 176,575
Western National Corp............................ 6,275 168,248
------------
4,023,665
FOOD & BEVERAGES -- 0.89%
JP Foodservice, Inc. (a)......................... 14,475 415,252
Weider Nutrition International, Inc. Class A..... 8,300 131,762
------------
547,014
GAS EXPLORATION -- 1.13%
Trigen Energy Corp............................... 27,675 691,875

HOTELS & RESTAURANTS -- 7.94%
Choice Hotels Holdings, Inc. (a)................. 8,800 149,050
HFS, Inc. (a).................................... 38,975 2,260,550
Papa John's International, Inc. (a).............. 66,787 2,454,422
------------
4,864,022
INDUSTRIAL MACHINERY -- 0.20%
JLK Direct Distribution, Inc. (a)................ 4,850 124,281

INSURANCE -- 5.13%
AFLAC, Inc....................................... 2,250 106,312
Hartford Life, Inc. Class A...................... 16,800 630,000
Nationwide Financial Services, Inc. Class A...... 5,150 136,797
Progressive Corp................................. 6,900 600,300
Protective Life Corp............................. 24,650 1,238,663
UICI (a)......................................... 14,625 431,438
------------
3,143,510

</TABLE>

See notes to the financial statements.

<PAGE> 126
JNL CAPITAL GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
LEISURE TIME -- 5.14%
Family Golf Centers, Inc. (a)................ 39,475 $ 907,925
Premier Parks, Inc........................... 22,700 837,063
Regal Cinemas, Inc. (a)...................... 27,000 891,000
Royal Caribbean Cruises, Ltd................. 14,575 509,214
------------
3,145,202
PLASTICS -- 1.85%
Sealed Air Corp. (a)......................... 23,825 1,131,688

POLLUTION CONTROL -- 2.32%
Culligan Water Technologies, Inc. (a)........ 31,700 1,418,575

RETAIL -- 6.02%
Costco Cos., Inc. (a)........................ 4,325 142,184
Meyer Fred, Inc. (a)......................... 6,125 316,586
MSC Industrial Direct, Inc. (a).............. 7,275 291,909
Petco Animal Supplies (a).................... 82,690 2,480,700
Quality Food Centers, Inc.................... 8,900 338,200
Safeway, Inc. (a)............................ 2,500 115,313
------------
3,684,892
TELECOMMUNICATIONS -- 2.28%
Cincinnati Bell, Inc......................... 8,700 274,050
Comnet Cellular, Inc. (a).................... 3,125 108,594
Pricellular Corp. Class A (a)................ 76,032 698,544
Univision Communications, Inc. Class A....... 8,100 316,913
------------
1,398,101
<CAPTION>

SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
TRANSPORTATION -- 2.53%
Wisconsin Central Transportation Corp. (a)... 41,575 $ 1,548,669
------------
Total United States.......................... 49,813,657
------------
Total Common Stocks
(cost $48,036,316)........................... 56,464,760
------------
WARRANTS -- 0.14%
- -----------------
ELECTRICAL EQUIPMENT -- 0.14%
Littlefuse, Inc. Series A, (Expire 12/27/2001)
(cost $48,137)............................... 3,700 83,712

PRINCIPAL AMOUNT
----------------
SHORT TERM INVESTMENTS -- 7.67%
- -------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 0.81%
Ford Motor Credit Co., 5.55%, 07/11/1997..... $ 500,000 499,229

U.S. GOVERNMENT AGENCIES -- 6.86%
Federal Home Loan Mortgage Discount Note
5.75%, 07/01/1997......................... 2,200,000 2,200,000
Federal National Mortgage Assoc. Discount Note
5.50%, 07/02/1997......................... 2,000,000 1,999,695
------------
4,199,695
------------
Total Short Term Investments
(cost $4,698,924)......................... 4,698,924
------------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $52,783,377)........................ $61,247,396
===========
</TABLE>

- ---------------------------------
(a) Non-income producing security.

See notes to the financial statements.

<PAGE> 127
JNL GLOBAL EQUITIES SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION> MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 98.38%
- -----------------------

AUSTRALIA -- 0.41%
- ------------------
INVESTMENT COMPANY -- 0.01%
Colonial Ltd.................................................... 4,601 $ 11,753

SOFTWARE -- 0.40%
CI Technology Group............................................. 390,241 442,387
----------

Total Australia............................................... 454,140

AUSTRIA -- 0.26%
- ----------------
APPAREL & TEXTILES -- 0.26%
Wolford AG...................................................... 3,016 292,660

BELGIUM -- 0.30%
- ----------------
FINANCIAL SERVICES -- 0.09%
Credit Communal Holding Dexia................................... 962 103,339

TELECOMMUNICATIONS -- 0.21%
Telinfo SA (a).................................................. 3,799 231,762
----------
Total Belgium................................................. 335,101

BRAZIL -- 0.12%
- ---------------
TOBACCO -- 0.12%
Souza Cruz SA................................................... 13,500 142,330

DENMARK -- 1.60%
- ----------------
BANKS -- 0.69%
Amtssparekassen Fyn............................................. 2,930 188,864
BG Bank......................................................... 1,942 107,338
Jyske Bank...................................................... 2,023 174,273
Spar Nord Holding............................................... 185 8,637
Sydbank......................................................... 4,691 214,065
Unidanmark Series A............................................. 1,193 67,017
----------
760,194
CONGLOMERATES -- 0.75%
Sophus Berendsen Series B....................................... 5,784 836,254

INVESTMENT COMPANIES -- 0.01%
FIH Series B.................................................... 559 14,228
TRANSPORTATION -- 0.15%
SAS Danmark A/S................................................. 13,907 162,321
----------
Total Denmark................................................. 1,772,997

FINLAND -- 1.81%
- ----------------
COMPUTERS & SOFTWARE -- 0.37%
Tietotehdas Oy, Class B......................................... 4,775 413,798
CONGLOMERATES -- 0.48%
Amer Group Ltd. Series B........................................ 17,561 316,201
Metra AB Series B............................................... 7,132 214,946
----------
531,147

<CAPTION>
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- (CONTINUED)
- ----------------------------
<S> <C> <C>
FINLAND -- (CONTINUED)
- ----------------------
DRUGS & HEALTH CARE -- 0.61%
Orion - Yhtyma Oy................................................. 17,654 $ 669,069

FOOD & BEVERAGES -- 0.35%
Raision Tehtaat Oy................................................ 5,668 389,673
----------

Total Finland................................................... 2,003,687

FRANCE -- 8.06%
- ---------------
BANKS -- 1.11%
Banque National Paris............................................. 20,620 849,825
Dexia France...................................................... 3,885 378,141
----------
1,227,966
BUSINESS SERVICES -- 1.22%
Cap Gemini........................................................ 11,865 625,887
Grandoptical Photo................................................ 4,790 727,054
----------
1,352,941
CHEMICALS -- 1.49%
Rhone Poulenc SA.................................................. 40,513 1,654,520

COMPUTER SERVICES -- 0.63%
Axime (a)......................................................... 5,891 696,691

ELECTRICAL EQUIPMENT -- 0.44%
Alcatel Alsthom................................................... 2,804 351,174
Carbone Lorraine.................................................. 557 135,537
----------
486,711
FINANCIAL SERVICES -- 0.02%
Compagnie de Suez................................................. 7,040 17,310

GAS EXPLORATION -- 1.35% ----------
Elf Aquitaine..................................................... 13,909 1,500,554

PUBLISHING -- 0.77%
Lagardere......................................................... 29,686 862,287

RETAIL -- 0.33%
Carrefour......................................................... 495 359,498

RUBBER & TIRES -- 0.70%
Michelin.......................................................... 12,996 780,419
----------

Total France.................................................... 8,938,897

GERMANY -- 8.64%
- ----------------
APPAREL & TEXTILES -- 0.51%
Adidas AG......................................................... 5,148 569,672

AUTOMOBILE & PARTS -- 2.93%
Bayerische Motoren Werke.......................................... 475 392,996
Volkswagen AG..................................................... 3,729 2,858,594
----------
3,251,590
</TABLE>

See notes to the financial statements.

<PAGE> 128

<TABLE>
<CAPTION> MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- (CONTINUED)
- ----------------------------
<S> <C> <C>
GERMANY -- (CONTINUED)
- ----------------------
BANKS -- 3.22%
Deutsche Bank AG....................................................... 42,803 $ 2,500,789
Pfandbriefbank Schweizerischer Hypothek................................ 18,544 1,066,432
-----------
3,567,221

BUILDING & CONSTRUCTION -- 0.25%
Tarkett AG........................................................... 10,649 274,758

CHEMICALS -- 0.08%
SGL Carbon AG........................................................ 684 93,652

DRUGS & HEALTH CARE -- 0.63%
Altana AG............................................................ 657 700,659

ELECTRICAL ENERGY -- 0.47%
Veba AG.............................................................. 9,187 516,212

ELECTRICAL EQUIPMENT -- 0.18%
Siemens AG........................................................... 3,321 197,173

TRANSPORTATION -- 0.37%
Lufthansa AG......................................................... 21,550 413,306
-----------
Total Germany...................................................... 9,584,243

GREECE -- 0.14%
- ---------------
TELECOMMUNICATIONS -- 0.14%
Hellenic Telecommunication Organization SA........................... 6,454 151,558

HONG KONG -- 2.04%
- ------------------
CONGLOMERATES -- 0.43%
Hutchison Whampoa.................................................... 55,000 475,650

FINANCIAL SERVICES -- 0.81%
First Pacific Co. ................................................... 650,000 830,612
JCG Holdings Limited................................................. 86,000 69,379
-----------
899,991
TRANSPORTATION -- 0.80%
Jiangsu Expressway................................................... 1,396,000 495,527
Pacific Ports Company (a)............................................ 1,636,000 327,314
Shenzhen Expressway.................................................. 244,000 66,926
-----------
889,767
-----------
Total Hong Kong.................................................... 2,265,408

INDONESIA -- 0.95%
- ------------------
FINANCIAL SERVICES -- 0.89%
Putra Surya Multidana (a)............................................ 619,000 986,277

TOBACCO -- 0.06%
HM Sampoerna......................................................... 17,000 64,833
-----------
Total Indonesia.................................................... 1,051,110

<CAPTION> MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
- ----------------------------

ITALY -- 2.18%
- --------------
BANKS -- 0.31%
Credito Italiano.................................................... 184,989 $ 338,507

ELECTRICAL EQUIPMENT -- 0.67%
Gewiss.............................................................. 43,492 748,507

FOOD & BEVERAGES -- 0.24%
Parmalat Finanziaria SPA............................................ 188,469 266,696

RUBBER & TIRES -- 0.18%
Pirelli SPA......................................................... 82,564 204,519

TELECOMMUNICATIONS -- 0.78%
Stet SPA (a) ....................................................... 97,392 567,308
Telecom Italia Mobile (a)........................................... 42,479 137,467
Telecom Italia...................................................... 52,359 156,809
----------
861,584
----------
Total Italy...................................................... 2,419,813

JAPAN -- 12.25%
- ---------------
AUTOMOBILES & PARTS -- 1.02%
Denso Corp. ......................................................... 28,000 669,342
Mitsubishi Motor..................................................... 61,000 436,399
Yamaha Motor Co...................................................... 3,000 29,838
----------
1,135,579
BANKS -- 0.90%
Mitsubishi Trust & Banking........................................... 13,000 205,287
Mitsui Trust & Banking............................................... 43,000 324,507
Sumitomo Trust & Banking............................................. 44,000 472,169
----------
1,001,963

COMPUTERS & BUSINESS EQUIPMENT -- 1.60%
Fujitsu.............................................................. 39,000 541,005
NTT Data Corp........................................................ 32 1,236,782
----------
1,777,787

DRUGS & HEALTH CARE -- 2.27%
Eisai Co............................................................. 11,000 208,253
Shiseido Co.......................................................... 31,000 511,167
Takeda Chemical Industries........................................... 29,000 814,692
Torii Pharmaceutical Co.............................................. 42,000 985,692
----------
2,519,804

ELECTRICAL EQUIPMENT -- 0.98%
Hitachi.............................................................. 97,000 1,083,232

FINANCIAL SERVICES -- 0.47%
Nomura Securities.................................................... 38,000 523,818

HOUSEHOLD FURNITURE & APPLIANCES -- 0.90%
Sony Corp............................................................ 11,400 993,596

INSURANCE -- 0.46%
Tokio Marine & Fire.................................................. 39,000 510,382

</TABLE>

See notes to the financial statements.

33
<PAGE> 129

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- (CONTINUED)
- ----------------------------
<S> <C> <C>
JAPAN -- (CONTINUED)
- --------------------
PHOTOGRAPHY -- 0.32%
Canon, Inc................................................................. 13,000 $ 353,865

REAL ESTATE -- 1.27%
Mitsubishi Estate Co. Ltd.................................................. 65,000 941,372
Mitsui Fudosan Co.......................................................... 34,000 468,679
-----------
1,410,051
RETAIL -- 0.36%
Isetan..................................................................... 7,000 86,721
Mitsubishi Corp............................................................ 8,000 99,808
Mitsui & Co................................................................ 22,000 211,133
-----------
397,662
TELECOMMUNICATIONS -- 1.70%
Nippon Telegraph & Telephone Corp.......................................... 196 1,880,998
-----------

Total Japan.............................................................. 13,588,737

MEXICO -- 0.38%
- ---------------
FOOD & BEVERAGES -- 0.38%
Fomento Economico Mexico................................................... 70,000 416,609

NETHERLANDS -- 7.16%
- --------------------
BANKS -- 1.09%
ING Groep NV .............................................................. 26,173 1,206,713

BUSINESS SERVICES -- 0.90%
CMG ....................................................................... 35,955 798,634
Vedior (a)................................................................. 7,395 195,527
-----------
994,161
CHEMICALS -- 0.85%
Akzo Nobel NV.............................................................. 6,885 943,535

COMPUTERS & BUSINESS EQUIPMENT -- 0.77%
Getronics NV............................................................... 20,865 673,922
Oce NV..................................................................... 1,433 184,846
-----------
858,768
ENTERTAINMENT -- 0.05%
Polygram NV................................................................ 963 50,532

FOOD & BEVERAGES -- 0.39%
Nutricia Verenigde Bedrijuen............................................... 2,737 432,253

HOUSEHOLD FURNITURE & APPLIANCES -- 2.61%
Hunter Douglas N.V......................................................... 2,433 206,995
Philips Electronics........................................................ 37,503 2,686,292
-----------
2,893,287
PUBLISHING -- 0.37%
Wolters Kluwer NV.......................................................... 3,374 410,814

<CAPTION>
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- (CONTINUED)
- ----------------------------
<S> <C> <C>
NETHERLANDS -- (CONTINUED)
- --------------------------

TRANSPORTATION -- 0.13%
Koninklijke Nedlloyd Groep NV................................................. 5,133 $ 148,271
----------
Total Netherlands............................................................ 7,938,334

NORWAY -- 0.75%
- ---------------
COMPUTERS & BUSINESS EQUIPMENT -- 0.10%
Merkantildata AS.............................................................. 5,594 110,671

INDUSTRIAL MACHINERY -- 0.18%
Tomra System AS............................................................... 9,800 200,568

TELECOMMUNICATIONS -- 0.20%
Tandberg AS (a)............................................................... 7,635 81,254
Tandberg Televisjo (a)........................................................ 19,444 144,586
----------
225,840

TRANSPORTATION -- 0.27%
SAS Norge ASA B shares........................................................ 28,208 296,351
----------
Total Norway................................................................. 833,430

PHILIPPINES -- 0.09%
- --------------------
BANKS -- 0.07%
Equitable Banking Corp........................................................ 20,500 74,225

ELECTRIC UTILITIES -- 0.02%
Manila Electric Co............................................................ 4,880 24,052
----------
Total Philippines............................................................ 98,277

PORTUGAL -- 0.17%
- -----------------
ELECTRIC UTILITIES -- 0.17%
Electridad de Portugal........................................................ 10,544 193,495

SINGAPORE -- 1.08%
- ------------------
TELECOMMUNICATIONS -- 1.08%
Datacraft Asia................................................................ 376,000 1,195,680

SPAIN -- 1.37%
- --------------
APPAREL & TEXTILES -- 0.33%
Adolfo Dominguez (a).......................................................... 9,300 366,067

BANKS -- 0.05%
Corporacion Financiera Reunida................................................ 14,586 61,373

BUILDING & CONSTRUCTION -- 0.16%
Grupo Acciona................................................................. 1,608 181,152

COMMERCIAL SERVICES -- 0.18%
Prosegur, Companhia de Seguridad.............................................. 15,975 195,148

CONGLOMERATES -- 0.04%
Azkoyen....................................................................... 400 49,678
</TABLE>

See notes to the financial statements.

34
<PAGE> 130

<TABLE>
<CAPTION> MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
- ----------------------------

SPAIN -- (CONTINUED)
- --------------------

FOOD & BEVERAGES -- 0.58%
Telepizza.................................................................... 11,090 $ 647,260

RETAIL -- 0.03%
Cortefiel SA................................................................. 644 28,103
----------
Total Spain................................................................ 1,528,781

SWEDEN -- 7.94%
- ---------------
AUTOMOBILE & PARTS -- 0.18%
Autoliv, Inc................................................................. 5,204 200,141

BANKS -- 0.16%
Nordbanken AB................................................................ 3,110 104,933
Sparbanken Sverige Series A.................................................. 3,416 75,955
-----------
180,888
BUSINESS SERVICES -- 1.13%
Securitas AB, Class B........................................................ 26,891 757,836
WM-Data AB B Shares.......................................................... 28,290 497,374
-----------
1,255,210
COMPUTERS & BUSINESS EQUIPMENT -- 0.43%
Enator AB.................................................................... 26,718 476,644

CONGLOMERATES -- 0.19%
Kinnevik Investment Series B................................................. 7,623 212,366

DRUGS & HEALTH CARE -- 1.56%
Astra AB Series A............................................................ 25,405 472,920
Ortivus Series B............................................................. 30,829 1,259,384
-----------
1,732,304
ELECTRONICS -- 0.59%
Pricer AB Series B (a)....................................................... 18,985 652,836

HOUSEHOLD FURNITURE & APPLIANCES -- 1.17%
Electrolux AB Series B....................................................... 17,987 1,297,492

INSURANCE -- 0.44%
Skandia Forsakrings AB....................................................... 13,490 497,014

INVESTMENT COMPANIES -- 0.22%
Bure Investment AB........................................................... 9,821 123,786
Incentive AB Series B........................................................ 1,278 116,805
-----------
240,591
NON-FERROUS METALS -- 1.07%
Assa Abloy AB Series B....................................................... 58,124 1,187,201

REAL ESTATE -- 0.33%
Tornet Fastighet............................................................. 30,814 362,494

TELECOMMUNICATIONS -- 0.14%
Ericcson LM Tel Series B.................................................... 4,046 159,267

<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
- ----------------------------

SWEDEN -- (CONTINUED)
- ---------------------

TRANSPORTATION -- 0.32%
SAS Sverige AB................................................................. 28,856 $ 350,651
-----------

Total Sweden................................................................. 8,805,099

SWITZERLAND -- 6.28%
- --------------------
BANKS -- 1.15%
Credit Suisse Group............................................................ 4,356 559,418
Schw Bankgesellsch............................................................. 623 712,610
-----------
1,272,028
BUSINESS SERVICES -- 0.31%
Fotolabo S.A................................................................... 84 26,753
Kuoni Reisen AG................................................................ 92 315,068
-----------
341,821
DRUGS & HEALTH CARE -- 2.54%
Ares Serono SA................................................................. 121 175,285
Novartis AG.................................................................... 973 1,555,467
Roche Holding AG............................................................... 120 1,085,343
-----------
2,816,095
FOOD & BEVERAGES -- 0.41%
Hero........................................................................... 818 456,623

INDUSTRIAL MACHINERY -- 0.23%
Sulzer AG...................................................................... 297 254,281

INSURANCE -- 1.24%
Baloise Holdings............................................................... 134 319,397
Zurich Versicherun............................................................. 2,655 1,056,545
-----------
1,375,942

RETAIL -- 0.27%
Selecta Gruppe................................................................. 1,626 247,241
Tag Heuer International SA..................................................... 336 50,400
-----------
297,641
TRANSPORTATION -- 0.13%
Sairgroup...................................................................... 134 150,153
-----------
Total Switzerland............................................................ 6,964,584

UNITED KINGDOM -- 13.99%
- ------------------------
BANKS -- 2.14%
Barclays PLC................................................................... 30,316 601,784
Lloyd's TSB Group PLC.......................................................... 173,060 1,778,176
-----------
2,379,960
BROADCASTING -- 0.06%
Pearson PLC.................................................................... 5,614 65,069

BUILDING & CONSTRUCTION -- 0.73%
Powerscreen International PLC.................................................. 74,340 813,356

</TABLE>

See notes to the financial statements.

35
<PAGE> 131
JNL CAPITAL GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -------
COMMON STOCKS -- (CONTINUED)
- ----------------------------
<S> <C> <C>
UNITED KINGDOM -- (CONTINUED)
- -----------------------------

BUSINESS SERVICES -- 1.31%
BTG PLC......................................................................... 59,538 $ 622,654
Logica PLC...................................................................... 72,529 827,361
-----------
1,450,015
CHEMICALS -- 0.14%
Victrex PLC..................................................................... 52,695 153,568

CONGLOMERATES -- 6.18%
Hays PLC........................................................................ 122,753 1,165,198
Misys PLC....................................................................... 23,591 530,756
Rentokil Initial PLC............................................................ 746,851 2,619,299
Siebe PLC....................................................................... 122,291 2,073,171
Ti Group PLC.................................................................... 53,613 467,390
-----------
6,855,814
DRUGS & HEALTH CARE -- 0.71%
Biocompatibles International PLC................................................ 5,117 111,459
Glaxo Wellcome PLC.............................................................. 10,168 210,390
London International Group PLC.................................................. 36,736 105,224
SmithKline Beecham PLC.......................................................... 19,464 358,331
-----------
785,404
ELECTRONICS -- 0.64%
Electrocomponents PLC........................................................... 95,469 710,661

FINANCIAL SERVICES -- 0.34%
JBA Holdings PLC................................................................ 25,709 376,756

FOOD & BEVERAGES -- 0.07%
Wetherspoon (JD) PLC............................................................ 3,662 82,632

LEISURE & ENTERTAINMENT -- 0.77%
Compass Group PLC............................................................... 55,727 623,631
London Clubs International PLC.................................................. 36,132 227,445
-----------
851,076
PRECIOUS METALS -- 0.05%
Johnson Matthey PLC............................................................. 5,443 52,210

RETAIL -- 0.16%
Harvey Nichols PLC.............................................................. 38,612 181,971

SOFTWARE -- 0.08%
Sema Group PLC.................................................................. 4,350 89,826

TELECOMMUNICATIONS -- 0.27%
Freepages Group PLC (a)......................................................... 492,475 295,243

TRANSPORTATION -- 0.34%
Stagecoach Holdings PLC......................................................... 35,805 377,433
-----------

Total United Kingdom.......................................................... 15,520,994

<CAPTION>
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- (CONTINUED)
- ----------------------------
<S> <C> <C>
UNITED STATES -- 20.42%
- -----------------------

AEROSPACE -- 0.06%
Computer Sciences Corp......................................................... 975 $ 70,322

APPAREL & TEXTILES -- 0.43%
Gucci Group NV................................................................. 7,350 473,156

AUTOMOBILE & PARTS -- 0.23%
Mahindra & Mahindra GDR........................................................ 3,807 55,677
Tata Engineering GDR (144a).................................................... 5,968 90,415
Tata Engineering & Locomotive Co. Ltd. (144a).................................. 700 8,838
Tata Engineering & Locomotive Co. Ltd. (144a).................................. 8,025 101,320
----------
256,250
BANKS -- 1.74%
Banco Frances Del Rio La Plata ADR............................................. 3,166 102,895
BankAmerica Corp............................................................... 2,850 184,003
Citicorp....................................................................... 3,575 431,011
Uniao de Bancos Brasileiros GDR................................................ 13,125 487,266
Wells Fargo & Co............................................................... 2,708 729,806
----------
1,934,981
BROADCAST & COMMUNICATIONS -- 0.87%
Canwest Global Communications Corp............................................. 6,150 91,097
Global Star Telecom............................................................ 4,950 151,594
Grupo Television SA de CV ADR.................................................. 20,225 614,334
TV Filme, Inc. (a)............................................................. 10,825 112,309
----------
969,334
BUSINESS SERVICES -- 0.59%
Danka Business Systems ADR..................................................... 4,425 180,872
Manpower, Inc. ................................................................ 7,400 329,300
Robert Half International, Inc................................................. 3,000 141,188
----------
651,360
COMPUTERS & BUSINESS EQUIPMENT -- 0.87%
Dassault Systems SA ADR........................................................ 1,500 106,875
Electronics For Imaging, Inc. (a).............................................. 3,625 171,281
International Business Machines Corp. ......................................... 5,650 509,559
Wang Labs, Inc................................................................. 8,150 173,697
----------
961,412
COSMETICS & TOILETRIES -- 0.15%
Nu Skin Asia Pacific Inc. Class A.............................................. 6,200 164,300

DRUGS & HEALTH CARE -- 3.86%
Amway Asia Pacific Ltd......................................................... 10,050 438,431
Elan PLC ADR (a)............................................................... 9,325 421,956
Fresenius Medical Care ADR..................................................... 29,100 847,538
Gedeon Richter Ltd. GDR (144a)................................................. 6,075 558,171
Grupo Casa Autrey SA de CV ADR................................................. 11,950 242,734
Omnicare, Inc.................................................................. 12,600 395,325
Pfizer Inc..................................................................... 4,100 489,950
Rhone Poulenc Rorer, Inc....................................................... 3,175 288,528

</TABLE>

See notes to the financial statements.

<PAGE> 132
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- (CONTINUED)
- ----------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------

DRUGS & HEALTH CARE (CONTINUED)
- -------------------------------
SmithKline Beecham PLC ADR...................................................... 4,150 $ 380,244
Teva Pharmaceutical Industries ADR.............................................. 2,775 179,681
United Healthcare Corp.......................................................... 775 40,300
-----------
4,282,858
ELECTRICAL EQUIPMENT -- 2.26%
Philips Electronics............................................................. 32,794 2,357,069
UCAR International, Inc. (a).................................................... 3,300 150,975
-----------
2,508,044
ENERGY -- 0.13%
Companhia Energetica de Minas Gerais ADR........................................ 1,875 94,399
Mosenergo ADR (144a)............................................................ 1,325 54,988
-----------
149,387
FINANCIAL SERVICES -- 0.73%
Associates First Capital Corp. Class A.......................................... 1,650 91,575
Romania Investment Fund......................................................... 230 223,790
Student Loan Marketing Association.............................................. 3,875 492,125
-----------
807,490
HOTELS & RESTAURANTS -- 0.08%
Indian Hotels, Ltd. GDR (144a).................................................. 5,161 93,993

INDUSTRIAL MACHINERY -- 1.06%
Pfeiffer Vacuum Technology AG ADR (a)........................................... 18,825 548,278
Rofin-Sinar Technologies, Inc. (a).............................................. 33,050 632,081
-----------
1,180,359
OIL -- 0.77%
Magyar Olaj-es Gazipari Rt. GDR (144a).......................................... 13,487 299,062
Oil Co Lukoil ADR............................................................... 3,225 254,503
Tatneft ADR (a)................................................................. 2,750 296,335
-----------
849,900
RETAIL -- 0.08%
Disco SA ADR (a)................................................................ 2,300 91,137

SOFTWARE -- 0.98%
Parametric Technology Corp. (a)................................................. 25,350 1,078,959

TELECOMMUNICATIONS -- 4.71%
Cincinnati Bell, Inc............................................................ 1,950 61,425
Ericcson LM Tel Co. ADR Class B................................................. 12,100 476,437
Iridium World Communications, Ltd. Class A...................................... 11,275 204,359
Lucent Technologies, Inc........................................................ 7,525 542,270
Mas Technology, Ltd.(a)......................................................... 11,600 172,550
Millicom International Cellular SA (a)......................................... 6,125 292,469
Nokia Corp. ADR................................................................. 6,825 503,344
Nortel Inversora SA ADR Series B (a)............................................ 36,400 987,350
Quinenco SA ADR (a)............................................................. 22,725 420,413
Portugal Telecom SA ADR......................................................... 3,600 144,450

MARKET
SHARES VALUE
-------- --------
COMMON STOCKS -- (CONTINUED)
- ----------------------------
<S> <C> <C>
UNITED STATES -- (CONTINUED)
- ----------------------------

TELECOMMUNICATIONS -- (CONTINUED)
- ---------------------------------
SK Telecom ADR............................................................................ 3,816 $ 38,399
Telecom Argentina Stet France ADR Class B................................................. 1,875 98,438
Telefonica de Argentina SA ADR............................................................ 4,325 149,753
Telecommunicacoes Brasileiras SA ADR...................................................... 5,975 906,706
Telefonica del Peru SA ADR................................................................ 8,625 225,867
-----------
5,224,230
TRANSPORTATION -- 0.82%
Ryanair Holdings PLC ADR (a).............................................................. 33,375 905,297
-----------
Total United States..................................................................... 22,652,769
-----------
Total Common Stocks
(cost $91,580,485)............................................................... 109,148,733
-----------
PREFERRED STOCKS -- 1.62%
- -------------------------

BRAZIL -- 0.98%
- ---------------

FOOD & BEVERAGES -- 0.02%
Companhia Cervejaria Brahma................................................................ 21,000 15,996

ELECTRIC UTILITIES -- 0.35%
Centrais Eletricas Brasileiras SA.......................................................... 20,000 29,725
Companhia Energetica de Minas Gerais....................................................... 6,241,000 321,746
Companhia Paranaense de Energia - Copel.................................................... 2,000,000 37,156
-----------
388,627
TELECOMMUNICATIONS -- 0.61%
Ericsson Telecom SA........................................................................ 11,400,000 677,721
-----------
Total Brazil............................................................................. 1,082,344

FINLAND -- 0.11%
- ----------------

TELECOMMUNICATIONS -- 0.11%
Nokia Oy AB................................................................................ 1,703 127,215

GERMANY -- 0.53%
- ----------------

AUTOMOBILES & PARTS -- 0.08%
Porsche AG................................................................................. 64 85,133

DRUGS & HEALTH CARE -- 0.45%
Fresenius AG............................................................................... 1,888 428,673
Fresenius Medical Care AG (a).............................................................. 1,058 75,947
-----------
504,620
-----------
Total Germany............................................................................ 589,753
-----------
Total Preferred Stocks
(cost $1,526,361).................................................................. 1,799,312
-----------
</TABLE>

See notes to the financial statements.

37
<PAGE> 133

JNL GLOBAL EQUITIES SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)(continued)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
RIGHTS & WARRANTS -- 0.00%
- --------------------------

GREECE -- 0.00%
- ---------------
TELECOMMUNICATIONS -- 0.00%
Hellenic Telecommunication Organization SA
(cost $0)........................................ 6,454 $ -
------------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $93,106,846)................................ $110,948,045
============
</TABLE>

(a) Non-income producing security.

See notes to the financial statements.

38
<PAGE> 134
JNL/ALGER GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS -- 91.48%
- -----------------------
<S> <C> <C>
AEROSPACE & DEFENSE -- 5.23%
AlliedSignal, Inc........................... 9,900 $831,600
Boeing, Co.................................. 22,400 1,188,600
Gulfstream Aerospace Corp. (a).............. 12,100 356,950
United Technologies, Inc.................... 12,400 1,029,200
------------
3,406,350
AIRLINES -- 0.80%
AMR Corp. (a)............................... 5,600 518,000

APPAREL & TEXTILES -- 2.94%
Cintas Corp................................. 6,300 433,125
Gucci Group NV N.Y.......................... 14,100 907,687
Tommy Hilfiger Corp. (a).................... 14,300 574,681
------------
1,915,493
BANKS -- 2.84%
Banc One Corp............................... 6,878 333,192
Citicorp.................................... 12,600 1,519,087
------------
1,852,279
BUSINESS SERVICES -- 4.65%
ADT Ltd. (a)................................ 9,600 316,800
CUC International, Inc. (a)................. 28,600 738,238
First Data Corp............................. 14,956 657,129
Nokia Corp.................................. 14,600 1,076,750
Service Corp International, Inc............. 7,200 236,700
------------
3,025,617
CHEMICALS -- 3.05%
DuPont E.I. De Nemours & Co................. 20,600 1,295,225
IMC Global, Inc............................. 8,100 283,500
Monsanto Co................................. 9,400 404,788
------------
1,983,513
COMPUTERS & TECHNOLOGY -- 6.15%
Bay Networks, Inc. (a)...................... 13,600 361,250
Cisco Systems, Inc. (a)..................... 23,600 1,584,150
Hewlett-Packard, Inc........................ 11,200 627,200
International Business Machines, Inc........ 10,000 901,875
Sundstrand Corp............................. 9,500 530,219
------------
4,004,694
DRUGS & HEALTH CARE -- 11.28%
Becton Dickinson & Co....................... 11,000 556,875
Biochem Pharmaceuticals, Inc. (a)........... 7,000 155,750
Bristol Myers Squibb Co..................... 7,000 567,000
Eli Lilly & Co.............................. 16,500 1,803,656
McKesson Corp............................... 3,700 286,750
Merck & Co.................................. 17,500 1,811,250
Oxford Health Plans, Inc. (a)............... 4,300 308,525
Pfizer, Inc................................. 5,200 621,400
Schering-Plough, Inc........................ 6,200 296,825
Warner-Lambert, Inc......................... 7,500 931,875
------------
7,339,906

SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT -- 2.95%
General Electric Co......................... 20,000 $1,307,500
Westinghouse Electric Corp.................. 26,500 612,813
------------
1,920,313
ELECTRONICS -- 11.53%
Adaptec, Inc. (a)........................... 8,500 295,375
Altera Corp. (a)............................ 13,300 671,650
Ericsson LM Tel Co.......................... 4,500 177,187
Intel Corp.................................. 3,900 553,069
Linear Technology Corp...................... 24,700 1,278,225
Maxim Integrated Products (a)............... 20,200 1,148,875
Motorola, Inc............................... 8,700 661,200
Tellabs, Inc. (a)........................... 12,000 670,500
Texas Instruments, Inc...................... 15,300 1,286,156
Xilinx, Inc. (a)............................ 15,500 760,469
------------
7,502,706
FINANCIAL SERVICES -- 4.94%
Charles Schwab Corp......................... 11,900 484,181
Household International, Inc................ 1,400 164,413
Money Store (The), Inc...................... 12,000 344,250
Morgan Stanley, Dean Witter, Discover & Co.. 38,775 1,669,748
PaineWebber Group, Inc...................... 15,800 553,000
------------
3,215,592
FOOD & BEVERAGES -- 1.56%
Pepsico, Inc................................ 15,600 585,975
Pioneer Hi-Bred International, Inc.......... 5,400 432,000
------------
1,017,975
HOTELS & RESTAURANTS -- 0.33%
Mirage Resorts, Inc. (a).................... 8,500 214,625

HOUSEHOLD APPLIANCES & FURNISHINGS -- 1.80%
Sunbeam Corp................................ 31,100 1,174,025

HOUSEHOLD PRODUCTS -- 5.18%
Colgate Palmolive Co........................ 14,800 965,700
Corning, Inc................................ 11,500 639,688
Gillette, Inc............................... 16,900 1,601,275
Newell Co................................... 4,100 163,355
------------
3,370,018
INDUSTRIAL MACHINERY -- 2.87%
Applied Materials, Inc. (a)................. 8,700 616,069
Tyco International, Ltd..................... 18,000 1,252,125
------------
1,868,194
INSURANCE -- 3.70%
American International Group, Inc........... 10,000 1,493,750
Equifax, Inc................................ 12,500 464,844
MGIC Investment Corp........................ 9,400 450,613
------------
2,409,207

</TABLE>

See notes to the financial statements.

<PAGE> 135

JNL/ALGER GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
LEISURE TIME -- 2.23%
Carnival Corp............................... 22,900 $ 944,625
International Game Technology, Inc.......... 28,500 505,875
------------
1,450,500
PETROLEUM SERVICES -- 4.00%
Diamond Offshore Drilling, Inc. (a)......... 9,000 703,125
EVI, Inc. (a)............................... 7,800 327,600
Halliburton Co.............................. 8,900 705,325
Schlumberger, Ltd........................... 5,000 625,000
Smith International, Inc. (a)............... 4,000 243,000
------------
2,604,050
POLLUTION CONTROL -- 1.41%
USA Waste Services, Inc. (a)................ 14,500 560,063
United Waste Systems, Inc. (a).............. 8,800 360,800
------------
920,863
RETAIL -- 5.09%
Home Depot, Inc............................. 24,500 1,688,969
Rite Aid Corp............................... 5,000 249,375
TJX Cos, Inc................................ 8,000 211,000
Wal-Mart Stores, Inc........................ 34,500 1,166,531
------------
3,315,875
SOFTWARE -- 5.38%
Microsoft Corp. (a)......................... 9,000 1,137,375
Oracle Corp. (a)............................ 26,100 1,314,787
Parametric Technology Corp. (a)............. 24,600 1,047,037
------------
3,499,199

MARKET
SHARES VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 1.57%
Worldcom, Inc. (a).......................... 32,000 $ 1,024,000
-------------
Total Common Stocks
(cost $49,171,549).......................... 59,552,994
-------------
<CAPTION>
PRINCIPAL AMOUNT
----------------
SHORT TERM INVESTMENTS -- 8.52%
- -------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 4.45%
Merrill Lynch & Co., Inc.
5.56%, 07/02/1997....................... $ 900,000 899,861
OGE Energy Corp.
5.65%, 07/07/1997....................... 1,000,000 999,058
South Western Electric
5.80%, 07/10/1997....................... 1,000,000 998,550
-----------
2,897,469
MONEY MARKET FUNDS -- 4.07%
State Street Global Advisor Fund,
5.29% (b)................................ 2,645,672 2,645,672
-----------
Total Short Term Investments
(cost $5,543,141).................... 5,543,141
-----------
TOTAL INVESTMENTS -- 100%
(cost $54,714,690)................... $65,096,135
===========
</TABLE>

- ---------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1997.

See notes to the financial statements.

40
<PAGE> 136
JNL/EAGLE CORE EQUITY SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
---------------- -------------
COMMON STOCKS -- 97.40%
- -----------------------
<S> <C> <C>
APPAREL & TEXTILES -- 0.55%
Intimate Brands, Inc......................... 1,700 $ 35,700
AUTOMOBILES & PARTS -- 0.59%
Ford Motor Company........................... 1,000 37,750
BANKS -- 3.16%
BankAmerica Corp............................. 1,200 77,475
Mellon Bank Corp............................. 800 36,100
NationsBank Corp............................. 1,400 90,300
-------------
203,875
BUILDING & CONSTRUCTION -- 0.50%
Harsco Corp.................................. 800 32,400
BUSINESS SERVICES -- 5.45%
CUC International, Inc....................... 2,500 64,531
Nokia Corp. ADR.............................. 1,000 73,750
Omnicom Group................................ 2,200 135,575
Service Corp. International.................. 1,000 32,875
Unisource Worldwide.......................... 2,800 44,800
-------------
351,531
CHEMICALS -- 3.36%
Crompton & Knowles Corp...................... 2,000 44,500
DuPont E I De Nemours & Co................... 800 50,300
Imperial Chemical Industries PLC ADR......... 1,000 56,875
Monsanto Co.................................. 1,500 64,594
-------------
216,269
COMPUTERS & BUSINESS EQUIPMENT -- 2.12%
Cisco Systems, Inc........................... 1,200 80,550
Hewlett Packard, Co.......................... 1,000 56,000
-------------
136,550
CONGLOMERATES -- 1.04%
Fortune Brands, Inc.......................... 1,800 67,163
DRUGS & HEALTH CARE -- 8.81%
Abbott Laboratories.......................... 400 26,700
Bausch & Lomb, Inc........................... 1,200 56,550
Columbia/HCA Healthcare Corp................. 1,600 62,900
Eli Lilly & Co............................... 800 87,450
Johnson & Johnson Co......................... 1,200 77,250
Merck & Co................................... 800 82,800
Pharmacia & Upjohn........................... 1,200 41,700
Pfizer, Inc.................................. 800 95,600
SmithKline Beecham PLC ADR................... 400 36,650
-------------
567,600
ELECTRIC UTILITIES -- 2.26%
FPL Group, Inc............................... 700 32,244
Nipsco Industries, Inc....................... 900 37,181
Sierra Pacific Resources, Inc................ 700 22,400
Teco Energy, Inc............................. 2,100 53,681
-------------
145,506

<Caption
SHARES MARKET VALUE
---------------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -------------------------
ELECTRICAL EQUIPMENT -- 7.80%
Atmel Corp. (a).............................. 1,500 $ 42,000
Essex International, Inc. (a)................ 3,200 89,200
Fisher Scientific International, Inc......... 1,600 76,000
General Electric Co.......................... 2,100 137,287
Philips Electronics N V...................... 1,300 93,438
Westinghouse Electric Corp................... 2,800 64,750
-------------
502,675
ELECTRONICS -- 4.81%
Intel Corp................................... 500 70,906
Lexmark International Group, Inc. Class A (a) 2,000 60,750
Raytheon Co.................................. 1,100 56,100
S3, Inc. (a)................................. 4,500 49,500
Tellabs, Inc. (a)............................ 1,300 72,638
-------------
309,894
FINANCIAL SERVICES -- 8.40%
American Express Corp........................ 1,000 74,500
Charles Schwab Corp.......................... 1,500 61,031
Chase Manhattan Corp......................... 500 48,531
Federal Home Loan Mortgage Corp.............. 2,500 85,938
Federal National Mortgage Association........ 2,500 109,063
Student Loan Marketing Association........... 500 63,500
Travelers Group, Inc......................... 1,566 98,756
-------------
541,319
FOOD & BEVERAGES -- 2.19%
Coca-Cola Co................................. 1,000 67,500
Heinz H J Co................................. 900 41,513
Nabisco Holdings Corp. Class A............... 800 31,900
-------------
140,913
GAS & PIPELINE UTILITIES -- 2.16%
American WaterWorks, Inc..................... 1,600 34,200
UGI Corp..................................... 1,200 26,550
Wicor, Inc................................... 1,000 38,938
Williams Cos., Inc........................... 900 39,375
-------------
139,063
GAS EXPLORATION -- 0.82%
Enron Corp................................... 1,300 53,056
HOTELS & RESTAURANTS -- 1.43%
Marriott International, Inc.................. 1,500 92,062
HOUSEHOLD APPLIANCES & FURNISHINGS -- 1.17%
Sunbeam Corp................................. 2,000 75,500
HOUSEHOLD PRODUCTS -- 3.43%
Black & Decker Corp.......................... 1,500 55,781
Gillette Co.................................. 1,000 94,750
Procter & Gamble Co.......................... 500 70,625
-------------
221,156
INDUSTRIAL MACHINERY -- 1.18%
American Standard Cos., Inc. (a)............. 1,700 76,075
</TABLE>

See notes to the financial statements.

<PAGE> 137

JNL/EAGLE CORE EQUITY SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
SHARES MARKET VALUE
---------------- -------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
INSURANCE -- 2.05%
American International Group, Inc............ 600 $ 89,625
Marsh & McLennan Cos., Inc................... 600 42,825
-------------
132,450
METALS -- 1.00%
Allegheney Teldyne, Inc...................... 2,400 64,800
MUTUAL FUNDS -- 3.84%
SPDR Trust................................... 2,800 247,275
OIL -- 4.56%
Ashland, Inc................................. 1,200 55,650
British Petroleum Co. PLC ADR................ 800 59,900
Exxon Corp................................... 600 36,900
Mobil Corp................................... 1,400 97,825
Royal Dutch Petroleum Co..................... 800 43,500
-------------
293,775
PETROLEUM SERVICES -- 3.45%
Baker Hughes, Inc............................ 1,500 58,031
Halliburton Co............................... 500 39,625
Schlumberger Ltd............................. 1,000 125,000
-------------
222,656
PLASTICS -- 1.55%
Illinois Tool Works, Inc..................... 2,000 99,875
PUBLISHING -- 0.73%
McGraw Hill Cos., Inc........................ 800 47,050
REAL ESTATE -- 1.39%
Haagen Alexander Properties, Inc............. 1,000 16,250
Nationwide Health Properties, Inc............ 600 13,200
Public Storage, Inc.......................... 500 14,625
Rouse Co..................................... 1,100 32,450
Sun Communities, Inc......................... 400 13,425
-------------
89,950
RETAIL -- 5.64%
CompUSA, Inc. (a)............................ 2,800 60,200
Federated Department Stores, Inc. (a)........ 1,600 55,600
Home Depot, Inc.............................. 1,500 103,406
Kohl's Corp.................................. 1,500 79,406
Walgreen Co.................................. 1,200 64,350
-------------
362,962
SOFTWARE -- 2.32%
Microsoft Corp. (a).......................... 600 75,825
Peoplesoft, Inc. (a)......................... 1,400 73,850
-------------
149,675
<CAPTION>

SHARES MARKET VALUE
---------------- -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -------------------------
TELECOMMUNICATIONS -- 5.02%
AT & T Corp.................................. 1,800 $ 63,113
Alltel Corp.................................. 1,100 36,781
Bell Atlantic Corp........................... 800 60,700
Frontier Corp................................ 1,200 23,925
GTE Corp..................................... 800 35,100
Telecomunicacoes Brasileiras ADR............. 400 60,700
Telefonica de Espana SA ADR.................. 500 43,125
-------------
323,444
TOBACCO -- 4.62%
Philip Morris Cos., Inc...................... 2,300 102,062
RJR Nabisco Holdings Corp.................... 3,400 112,200
UST, Inc..................................... 3,000 83,250
-------------
297,512
-------------
Total Common Stocks
(cost $5,513,027)............................ 6,277,481
-------------
PREFERRED STOCKS -- 2.16%
- -------------------------
GAS & PIPELINE UTILITIES -- 0.59%
MCN Energy Group, Inc........................ 700 38,063
HOTELS & RESTAURANTS -- 0.46%
Wendy's Financing, Inc....................... 500 29,312
INSURANCE -- 0.53%
Jefferson Pilot Corp......................... 300 34,425
LEISURE TIME -- 0.20%
AMC Entertainment, Inc....................... 400 12,700
RETAIL -- 0.38%
Kmart Financing I............................ 450 24,694
-------------
Total Preferred Stocks
(cost $125,547).............................. 139,194
-------------
<CAPTION>
PRINCIPAL AMOUNT
----------------
<S> <C> <C>
CORPORATE BONDS -- 0.44%
- ------------------------
RETAIL -- 0.44%
Home Depot, Inc.
3.25%, 10/01/2001, convertable until
10/01/2001 (cost $25,726).................. $25,000 28,625
-------------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $5,664,300)............................ $6,445,300
=============

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

(a) Non-income producing security

</TABLE>

See notes to the financial statements.

<PAGE> 138

JNL/EAGLE CORE EQUITY SERIES

SCHEDULE OF CALL OPTIONS WRITTEN (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
CONTRACTS
(100 SHARES
PER CONTRACT) MARKET VALUE
- ------------- -------------
<S> <C> <C>
3 Nabisco Holdings Corp, Class A
Expiration September, 1997, Exercise Price $40.00..... $(1,050)
1 Schlumberger Ltd.
Expiration August, 1997, Exercise Price $120.00....... (900)
1 Schlumberber Ltd
Expiration November, 1997, Exercise Price $120.00..... (1,388)
2 SmithKline Beecham PLC ADR
Expiration August, 1997, Exercise Price $95.00........ (375)
------------
Total Call Options Written
(Premiums received $2,848).......................... $(3,713)
============
</TABLE>

See notes to the financial statements.

<PAGE> 139
JNL/EAGLE SMALLCAP EQUITY SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

SHARES MARKET VALUE
------ -------------
COMMON STOCKS -- 100.00%
- ------------------------
<S> <C> <C>
APPAREL & TEXTILES -- 1.82%
Barry R.G. Corp. (a)........................ 10,000 $ 121,250
BUILDING & CONSTRUCTION -- 8.30%
C.D.I. Corp. (a)............................ 6,000 250,125
Hughes Supply, Inc.......................... 2,000 80,000
Lennar Corp................................. 7,000 223,563
-------------
553,688
BUSINESS SERVICES -- 8.12%
Interim Services, Inc. (a).................. 5,000 222,500
RCM Technologies, Inc. (a).................. 15,000 159,375
Wackenhut Corp. Class B..................... 8,000 159,500
-------------
541,375
COMMERCIAL SERVICES -- 2.09%
Steiner Leisure Ltd. (a).................... 5,000 139,375

DRUGS & HEALTH CARE -- 8.88%
Alternative Living Services, Inc. (a)....... 5,200 116,675
Angeion Corp. (a)........................... 15,000 64,687
Arbor Health Care Co. (a)................... 5,000 155,000
Nabi, Inc. (a).............................. 30,000 198,750
Protein Design Labs, Inc. (a)............... 2,000 57,000
-------------
592,112
EDUCATION -- 2.85%
Strayer Education, Inc...................... 5,000 190,000

ELECTRICAL EQUIPMENT -- 6.96%
Coherent, Inc. (a).......................... 3,500 155,750
Pioneer Standard Electronics, Inc........... 9,000 121,500
SymmetriCom, Inc. (a)....................... 13,000 186,875
-------------
464,125
ELECTRONICS -- 11.17%
Computer Products, Inc. (a)................. 9,000 225,000
Sawtek, Inc. (a)............................ 6,000 202,500
Trident International, Inc. (a)............. 10,000 180,000
TriQuint Semiconductor, Inc. (a)............ 4,000 137,500
-------------
745,000
FINANCIAL SERVICES -- 7.93%
Advest Group, Inc........................... 9,000 213,750
Ampex Corp. Class A (a)..................... 26,500 154,031
Legg Mason, Inc............................. 3,000 161,438
-------------
529,219
GAS EXPLORATION -- 2.63%
Chieftain International, Inc. (a)........... 8,000 175,500

SHARES MARKET VALUE
------ -------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
HOTELS AND RESTAURANTS -- 3.08%
Apple South, Inc............................ 3,000 $ 45,750
Capstar Hotel Co. (a)....................... 5,000 160,000
-------------
205,750
HOUSEHOLD, APPLIANCES & FURNISHINGS -- 5.52%
Chicago Miniature Lamp, Inc. (a)............ 7,000 174,125
Furniture Brands International, Inc......... 10,000 193,750
-------------
367,875
LEISURE TIME -- 1.47%
International Speedway Corp. Class B........ 5,000 98,125

NON-FERROUS METALS -- 2.26%
Imco Recycling, Inc......................... 8,000 151,000

PETROLEUM SERVICES -- 7.98%
Gulf Island Fabrication, Inc. (a)........... 6,000 153,750
Marine Drilling Companies, Inc. (a)......... 4,100 80,463
Precision Drilling Corp. (a)................ 4,000 193,500
Seacor Smit, Inc. (a)....................... 2,000 104,625
-------------
532,338
POLLUTION CONTROL -- 1.25%
Superior Services, Inc. (a)................. 3,500 83,125

PUBLISHING -- 5.05%
Houghton Mifflin Co......................... 2,200 146,850
World Color Press, Inc. (a)................. 8,000 190,000
-------------
336,850
RETAIL -- 5.52%
Cash America International, Inc............. 10,000 105,000
Claire's Stores, Inc........................ 7,000 122,500
Footstar, Inc............................... 3,000 78,375
Ugly Duckling Corp. (a)..................... 4,000 62,000
-------------
367,875
STEEL -- 1.43%
Envirosource, Inc. (a)...................... 13,300 26,600
UNR Industries, Inc......................... 10,000 68,750
-------------
95,350
TELECOMMUNICATIONS -- 3.87%
Spectrian Corp. (a)......................... 7,000 258,125

TRANSPORTATION -- 1.82%
Hvide Marine, Inc. Class A (a).............. 5,500 121,687
-------------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $5,694,744)........................... $6,669,744
=============
</TABLE>
- --------------------------

(a) Non-income producing security.

See notes to the financial statements.

44
<PAGE> 140
JNL/PUTNAM GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
------- ------------
COMMON STOCKS -- 95.55%
- -----------------------
<S> <C> <C>
AEROSPACE --2.39%
Boeing Co.................................... 17,200 $ 912,675
United Technologies Corp..................... 8,800 730,400
-----------
1,643,075
AIRLINES --0.55%
U.S. Airways Group, Inc. (c)................ 13,800 378,603
ALUMINUM --0.60%
Aluminum Company of America (c)............. 5,500 414,563
APPAREL & TEXTILES --0.71%
Liz Claiborne, Inc.......................... 10,400 484,900
BANKS -- 8.87%
Banc One Corp............................... 12,800 620,000
BankAmerica Corp. (c)....................... 35,000 2,259,688
BankBoston Corp............................. 800 57,650
Barnett Banks, Inc.......................... 16,500 866,250
Citicorp.................................... 9,900 1,193,569
Comerica, Inc............................... 4,600 312,800
MBNA Corp................................... 21,200 776,450
-----------
6,086,407
BUSINESS SERVICES -- 0.39%
Service Corp. International................. 8,200 269,575
CHEMICALS -- 2.35%
Du Pont E I De Nemours & Co................. 12,600 792,225
Morton International, Inc................... 2,400 72,450
Praxair, Inc................................ 13,300 744,800
-----------
1,609,475
COMPUTERS & BUSINESS EQUIPMENT -- 3.02%
Cisco Systems, Inc. (a)..................... 2,900 194,663
Compaq Computer Corp. (a)................... 3,200 317,600
Dell Computer Corp. (a) (c)................. 7,100 833,806
EMC Corp. (a)............................... 18,600 725,400
-----------
2,071,469
CONGLOMERATES -- 1.28%
Textron, Inc................................ 13,200 876,150
COSMETICS & TOILETRIES -- 0.74%
Avon Products, Inc.......................... 7,200 508,050
DRUGS & HEALTH CARE --16.60%
Abbott Laboratories, Inc.................... 17,800 1,188,150
Bristol Myers Squibb Co..................... 15,200 1,231,200
Cardinal Health, Inc........................ 11,000 629,750
Eli Lilly & Co. (c)......................... 11,700 1,278,956
Healthsouth Corp. (a)....................... 29,400 733,162
Johnson & Johnson Co. (c)................... 12,400 798,250
Merck & Co., Inc............................ 16,200 1,676,700
Oxford Health Plans, Inc. (a)............... 6,600 473,550
Pfizer, Inc. (c)............................ 17,000 2,031,500

SHARES MARKET VALUE
------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -------------------------
DRUGS & HEALTH CARE (CONTINUED)
- -------------------------------
Tenet Healthcare Corp....................... 2,300 $ 67,994
United States Surgical Corp................. 15,300 569,925
Warner-Lambert Co........................... 5,700 708,225
-----------
11,387,362
ELECTRICAL EQUIPMENT -- 3.28%
General Electric Co......................... 29,400 1,922,025
Westinghouse Electric Corp.................. 14,300 330,688
-----------
2,252,713
ELECTRONICS -- 4.75%
Honeywell, Inc.............................. 12,800 971,200
Intel Corp.................................. 4,000 567,250
Motorola, Inc............................... 13,000 988,000
Philips Electronics NV N.Y. (c)............ 16,000 731,903
-----------
3,258,353
FINANCIAL SERVICES -- 4.00%
American Express Co......................... 12,900 961,050
Chase Manhattan Corp........................ 6,000 582,375
Traveler's Group, Inc....................... 19,000 1,198,188
-----------
2,741,613
FOOD & BEVERAGES -- 4.01%
Campbell Soup Co............................ 11,800 590,000
Coca-Cola Co................................ 17,500 1,181,250
ConAgra, Inc................................ 7,200 461,700
Sara Lee Corp............................... 12,400 516,150
-----------
2,749,100
GAS & PIPELINE UTILITIES -- 1.87%
Sonat, Inc. (c)............................. 25,000 1,281,250
HOTELS & RESTAURANTS -- 1.29%
HFS, Inc.
(c).......................................... 4,200 230,076

Marriott International, Inc.................. 10,700 656,712
-----------
886,788
HOUSEHOLD PRODUCTS -- 4.33%
Clorox Co................................... 3,800 501,600
Colgate Palmolive Co........................ 7,800 508,950
Gillette Co................................. 14,700 1,392,825
Proctor & Gamble Co......................... 4,000 565,000
-----------
2,968,375
INDUSTRIAL MACHINERY -- 1.39%
American Standard Cos., Inc. (a)............. 7,200 322,200
Tyco International, Ltd..................... 9,100 633,019
-----------
955,219
INSURANCE -- 3.65%
Aetna, Inc.................................. 6,500 665,437
American International Group, Inc........... 6,600 985,875
Conseco, Inc................................ 14,200 525,400
MGIC Investment Corp........................ 6,800 325,975
-----------
2,502,687
</TABLE>

See notes to the financial statements.

45
<PAGE> 141
JNL/PUTNAM GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

SHARES MARKET VALUE
------- -----------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
LEISURE TIME -- 1.11%
Walt Disney Co.............................. 9,500 $ 762,375
MINING -- 0.50%
Potash Corp. (c)............................ 4,500 343,732
NEWSPAPERS -- 1.76%
Gannett, Inc................................ 12,200 1,204,750
OIL -- 3.16%
British Petroleum PLC ADR................... 11,200 838,600
Exxon Corp.................................. 10,000 615,000
Mobil Corp.................................. 10,200 712,725
-----------
2,166,325
PACKAGING -- 0.85%
Illinois Tool Works, Inc. (c)............... 13,200 585,398
PETROLEUM SERVICES -- 4.98%
Baker Hughes, Inc........................... 8,800 340,450
Elf Aquitaine PLC ADR....................... 4,500 244,969
Halliburton Co. (c)......................... 16,600 1,315,550
Noble Drilling Corp. (c).................... 4,200 70,149
Schlumberger, Ltd........................... 5,900 737,500
Transocean Offshore, Inc. (c)............... 11,800 709,105
-----------
3,417,723
RETAIL -- 6.12%
Consolidated Stores Corp.................... 13,625 473,469
Costco Cos., Inc. (a)....................... 20,400 670,650
CVS Corp.................................... 19,996 1,024,795
Home Depot, Inc............................. 2,500 172,344
Lowe's Cos., Inc............................ 900 33,412
Safeway, Inc. (a)........................... 14,700 678,038
TJX Cos, Inc................................ 20,400 538,050
Walgreen Co................................. 11,400 611,325
-----------
4,202,083
SAVINGS & LOAN -- 0.84%
Washington Mutual, Inc...................... 9,700 579,575
SOFTWARE --6.34%
BMC Software, Inc. (a)...................... 10,800 598,050
Computer Associates International, Inc...... 14,000 779,625
HBO & Co.................................... 8,500 585,437

<CAPTION>
SHARES MARKET VALUE
------ ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
SOFTWARE (CONTINUED)
- --------------------
Microsoft Corp. (a)......................... 11,800 $ 1,491,225
Parametric Technology Corp. (a)............. 9,600 408,600
Peoplesoft, Inc. (a)........................ 9,200 485,300
-----------
4,348,237
TELECOMMUNICATIONS -- 3.40%
Ascend Communcations, Inc. (a).............. 8,100 318,937
Lucent Technologies, Inc.................... 4,300 309,869
Sprint Corp................................. 17,900 941,988
Telefonos de Mexico SA ADR (c).............. 9,000 367,290
Tellabs, Inc. (a)........................... 7,100 396,713
-----------
2,334,797
WASTE MANAGEMENT -- 0.42%
Republic Industries, Inc. (a)............... 11,700 291,036
-----------
Total Common Stocks
(cost $60,700,718)........................... 65,561,758
-----------
WARRANTS -- 0.53%
- -----------------
ELECTRONICS -- 0.53%
Intel Corp. (a) (c) (cost $362,503)......... 3,500 362,503
-----------
<CAPTION>

PRINCIPAL AMOUNT
----------------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 3.92%
- -------------------------------
MONEY MARKET FUNDS -- 0.00%
State Street Global Advisor Funds, 5.29%, (b)...... $ 477 477
REPURCHASE AGREEMENTS -- 3.92%
Repurchase Agreement with United Bank of
Switzerland, 5.90% (Collateralized by
$1,830,000 U.S. Treasury Bond, 11.25%,
due 02/15/2015, market value, $2,737,711)
acquired on 06/30/1997, due
07/01/1997............ 2,692,000 2,692,000
-----------
Total Short Term Investments
(cost $2,692,477)......................... 2,692,477
-----------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $63,755,698).......................... $68,616,738
===========
</TABLE>
- --------------------------

(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of June 30, 1997.
(c) Securities have been pledged as collateral for open short positions.

See notes to the financial statements.

46
<PAGE> 142
JNL/PUTNAM GROWTH SERIES

SCHEDULE OF SECURITIES SOLD SHORT (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
COMMON STOCK SOLD SHORT
- -----------------------
<S> <C> <C>
Aluminum Company of America............................... 2,600 $ 195,975
BankAmerica Corp.......................................... 13,800 890,963
Dell Computer Corp........................................ 4,600 540,213
Eli Lilly & Co............................................ 4,700 513,769
Halliburton Co............................................ 8,400 665,700
HFS, Inc.................................................. 4,200 230,076
Illinois Tool Works, Inc.................................. 13,200 585,398
Johnson & Johnson......................................... 5,600 360,500
Noble Drilling Corp....................................... 4,200 70,149
Pfizer, Inc............................................... 8,400 1,003,800
Philips Electronics NV.................................... 16,000 731,903
Potash Corp............................................... 4,500 343,732
Sonat, Inc................................................ 16,300 835,375
Telefonos de Mexico SA ADR................................ 9,000 367,290
Transocean Offshore, Inc.................................. 11,800 709,105
U.S. Airways Group, Inc................................... 13,800 378,602
------------
Total Common Stock Sold Short
(Proceeds $7,849,950)................................... $8,422,550
============
WARRANTS SOLD SHORT
- -------------------
Intel Corp. (Proceeds $398,824)........................... 3,500 $ 362,503
============
</TABLE>

See notes to the financial statements.

<PAGE> 143
JNL/PUTNAM VALUE EQUITY SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- 95.40%
- -----------------------
<S> <C> <C>
AEROSPACE -- 3.69%
Northrop Grumman Corp...................... 6,200 $ 544,437
Rockwell International Corp................ 7,000 413,000
TRW, Inc................................... 12,600 715,838
United Technologies Corp................... 4,135 343,205
------------
2,016,480
AGRICULTURAL MACHINERY -- 1.05%
New Holland NV............................. 21,000 574,875

AIRLINES -- 0.80%
Delta Air Lines, Inc....................... 5,310 435,420

AUTOMOBILE & PARTS -- 4.93%
Dana Corp.................................. 11,110 422,180
Eaton Corp................................. 4,620 403,384
Ford Motor Co.............................. 13,235 499,621
General Motors Corp........................ 11,000 612,562
Lear Corp.................................. 7,860 348,788
Tenneco, Inc............................... 9,075 410,077
------------
2,696,612
BANKS -- 10.29%
Banc One Corp.............................. 12,545 607,648
Bankers Trust NY Corp...................... 5,900 513,300
First Tennessee National Corp.............. 2,600 124,800
Fleet Financial Group, Inc................. 11,200 708,400
Huntington Bancshares, Inc................. 4,200 123,375
JP Morgan & Co., Inc....................... 9,200 960,250
KeyCorp.................................... 8,400 469,350
Mellon Bank Corp........................... 6,600 297,825
Mercantile Bancorporation, Inc............. 3,500 212,625

Old Kent Financial Corp.................... 2,310 124,740
PNC Bank Corp.............................. 22,600 940,725
Summit Bancorp............................. 5,300 265,662
Union Planters Corp........................ 5,355 277,791
------------
5,626,491
BUILDING & CONSTRUCTION -- 1.96%
Armstrong World Industries................. 6,700 491,612
Masco Corp................................. 13,925 581,369
------------
1,072,981
BUSINESS SERVICES -- 0.73%
NCR Corp................................... 13,500 401,625

CHEMICALS -- 3.85%
DuPont E I DeNemours & Co.................. 9,000 565,875
Eastman Chemical Co........................ 8,400 533,400
Hercules, Inc.............................. 7,395 354,036
Witco Corp................................. 17,200 652,525
------------
COMPUTERS & BUSINESS EQUIPMENT -- 5.97%
Hewlett Packard Co......................... 11,000 616,000
Intel Corp................................. 2,995 424,728
International Business Machines Corp....... 12,200 1,100,287
Xerox Corp................................. 14,275 1,125,941
------------
3,266,956

MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>

CONGLOMERATES -- 0.78%
Fortune Brands, Inc........................ 11,400 $ 425,362

CONTAINERS & GLASS -- 2.28%
Crown Cork & Seal, Inc..................... 8,800 470,250
Owens Illinois, Inc........................ 17,740 549,940
Temple Inland, Inc......................... 4,200 226,800
------------
1,246,990
DRUGS & HEALTH CARE -- 5.42%
American Home Products Corp................ 8,200 627,300
Baxter International, Inc.................. 16,750 875,188
Bristol Myers Squibb Co.................... 7,200 583,200
Pharmacia & Upjohn, Inc.................... 25,300 879,175
------------
ELECTRIC UTILITIES -- 0.79%
2,964,863
Duke Power Co.............................. 9,068 434,722

ELECTRICAL EQUIPMENT -- 1.57%
Cooper Industries, Inc..................... 10,200 507,450
General Signal Corp........................ 8,000 349,000
------------
856,450
ELECTRONICS -- 2.60%
General Motors Corp. Class H............... 8,100 467,775
Motorola, Inc.............................. 7,475 568,100
Texas Instruments, Inc..................... 4,575 384,586
------------
1,420,461
FINANCIAL SERVICES -- 1.36%
Beneficial Corp............................ 3,930 279,276
Regions Financial Corp..................... 6,100 192,912
Salomon, Inc............................... 4,900 272,563
------------
744,751
FOOD & BEVERAGES -- 2.57%
General Mills, Inc......................... 7,700 501,462
Sara Lee Corp.............................. 11,600 482,850
Whitman Corp............................... 16,550 418,922
------------
1,403,234
FOREST PRODUCTS -- 1.36%
Weyerhauser Co............................. 14,300 743,600

GAS EXPLORATION -- 0.90%
Occidental Petroleum Corp.................. 19,700 493,731

GAS & PIPELINE UTILITIES -- 0.70%
Coastal Corp............................... 7,200 382,950

HOUSEHOLD APPLIANCES & FURNISHINGS -- 0.80%
Whirlpool Corp............................. 8,000 436,500

HOUSEHOLD PRODUCTS -- 2.00%
Colgate Palmolive Co....................... 8,100 528,525
Tupperware Corp............................ 14,430 566,845
------------
1,095,370

</TABLE>
See notes to the financial statements.

<PAGE> 144

JNL/PUTNAM VALUE EQUITY SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

MARKET
SHARES VALUE
------ ------

COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
INSURANCE -- 3.34%
American General Corp...................... 11,600 $553,900
Aon Corp................................... 12,100 626,175
CIGNA Corp................................. 1,065 189,037
USF & G Corp............................... 19,200 460,800
------------
1,829,912

LIQUOR -- 0.63%
Anheuser Busch Cos., Inc................... 8,180 343,049

MINING -- 0.96%
Freeport McMoran Copper & Gold............. 17,890 523,283

OIL -- 5.38%
Amoco Corp................................. 7,400 643,337
Atlantic Richfield Co...................... 4,475 315,487
British Petroleum PLC ADR.................. 7,780 582,528
ENI SPA ADR................................ 1,900 107,350
Exxon Corp................................. 8,880 546,120
Mobil Corp................................. 8,200 572,975
YPF Sociedad Anonima ADR................... 5,600 172,200
------------
2,939,997
PAPER -- 3.68%
Kimberly Clark Corp........................ 19,400 965,150
Minnesota Mining & Manufacturing Co........ 10,300 1,050,600
------------
PETROLEUM SERVICES -- 2.39% 2,015,750
Elf Aquitane............................... 13,300 724,019
Total SA ADR............................... 11,500 582,188
------------
PHOTOGRAPHY -- 3.10% 1,306,207
Eastman Kodak Co........................... 9,600 736,800
Polaroid Corp.............................. 17,300 960,150
------------
POLLUTION CONTROL -- 0.44% 1,696,950
Waste Management, Inc...................... 7,460 239,653

PUBLISHING -- 1.04%
McGraw Hill Cos., Inc...................... 9,665 568,423

RAILROADS & EQUIPMENT -- 2.50%
Canadian National Railway Co............... 6,400 280,000
Norfolk Southern Corp...................... 5,200 523,900
Union Pacific Corp......................... 8,000 564,000
------------
1,367,900
RETAIL -- 2.96%
Kmart Corp................................. 47,300 579,425
Lowe's Cos., Inc........................... 14,405 534,786
Sears Roebuck & Co......................... 9,400 505,250
------------
1,619,461

<CAPTION>
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
SAVINGS & LOAN -- 0.69%
Ahmanson HF & Co........................... 8,800 $378,400

SOFTWARE -- 1.01%
Computer Associates International, Inc..... 9,900 551,306

TELECOMMUNICATIONS -- 6.85%
Ameritech Corp............................. 7,910 537,385
AT&T Corp.................................. 9,055 317,491
Bellsouth Corp............................. 13,700 635,338
Lucent Technologies, Inc................... 900 64,856
SBC Communications, Inc.................... 12,110 749,306
Sprint Corp................................ 20,500 1,078,813
US West, Inc............................... 9,600 361,800
------------
3,744,989
TIRES & RUBBER -- 1.11%
Goodyear Tire & Rubber, Inc................ 9,570 605,901

TOBACCO -- 2.29%
Gallaher Group PLC ADR..................... 10,600 195,437
Phillip Morris Cos., Inc................... 15,150 672,281
RJR Nabisco Holdings Corp.................. 11,720 386,760
------------
1,254,478
TRANSPORTATION -- 0.63%
Ryder Systems, Inc......................... 10,500 346,500
------------
Total Common Stocks
(cost $49,233,140)..................... 52,178,419
------------
PREFERRED STOCK -- 0.84%

AGRICULTURAL MACHINERY -- 0.84%
Case Corp. (cost $392,805)................. 2,800 460,950
------------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 3.76%

MONEY MARKET FUNDS -- 0.00%
State Street Global Advisor Fund,
5.29%, (a)................................. $782 82

REPURCHASE AGREEMENTS -- 3.76%
Repurchase agreement with United Bank of
Switzerland, 5.90% (Collateralized by
$1,397,000 U.S. Treasury Bond, 11.25%, due
02/15/2015, market value - $2,089,936),
acquired on 6/30/1997, due 07/01/1997...... 2,056,000 2,056,000
------------
Total Short Term Investments
(cost $2,056,782).......................... 2,056,782
------------
TOTAL INVESTMENTS -- 100%

(cost $51,682,727)......................... $54,696,151
===========
</TABLE>

(a) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of June 30, 1997.

See notes to the financial statements.

49
<PAGE> 145
PPM AMERICA/JNL BALANCED SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS -- 48.91%
- -----------------------
<S> <C> <C>
AEROSPACE -- 2.60%
Lockheed Martin Corp......................... 3,600 $ 372,825
TRW, Inc..................................... 7,400 420,413
United Technologies Corp..................... 3,700 307,100
------------
1,100,338
APPAREL & TEXTILES -- 1.14%

VF Corp...................................... 5,700 483,075

AUTOMOBILES & PARTS -- 1.92%
Ford Motor Co................................ 10,900 411,475
General Motors Corp.......................... 7,200 400,950
------------
812,425
BANKS -- 3.37%
BankAmerica Corp............................. 3,000 193,687
Charter One Financial, Inc................... 8,300 447,162
KeyCorp...................................... 7,300 407,888
Mellon Bank Corp............................. 8,400 379,050
------------
1,427,787
CHEMICALS -- 2.58%
Grace W.R. & Co.............................. 4,900 270,112
PPG Industries, Inc.......................... 7,000 406,875
Rohm & Haas Co............................... 4,600 414,288
------------
1,091,275
COMPUTERS & BUSINESS EQUIPMENT -- 2.39%
International Business Machines Corp......... 5,700 514,069
Xerox Corp................................... 6,300 496,913
------------
1,010,982
CONGLOMERATES -- 0.31%
Fortune Brands, Inc.......................... 3,500 130,594

DRUGS & HEALTH CARE -- 2.22%
Columbia/HCA Healthcare Corp................. 10,000 393,125
Pharmacia & Upjohn, Inc...................... 6,100 211,975
Wellpoint Health Networks, Inc. (a).......... 7,300 334,888
------------
939,988
ELECTRIC UTILITIES -- 2.97%
GPU, Inc..................................... 11,600 416,150
Ohio Edison Co............................... 19,200 418,800
Peco Energy Co............................... 20,200 424,200
------------
1,259,150
ELECTRICAL EQUIPMENT -- 0.94%

Cooper Industries, Inc....................... 8,000 398,000

ELECTRONICS -- 0.75%
Harris Corp.................................. 3,800 319,200

<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
FINANCIAL SERVICES -- 2.57%
<S> <C> <C>
American Financial Group, Inc................ 5,000 $ 212,600
Beneficial Corp.............................. 6,200 440,587
Chase Manhattan Corp......................... 4,500 436,781
------------
1,089,968
GAS EXPLORATION -- 1.15%

Occidental Petroleum Corp.................... 19,400 486,213

INDUSTRIAL MACHINERY -- 1.06%

Parker Hannifin Corp......................... 7,400 449,088

INSURANCE -- 4.60%
Aegon NV..................................... 1 66
Aetna, Inc................................... 3,900 399,262
American General Corp........................ 8,400 401,100
Cigna Corp................................... 2,200 390,500
Hartford Financial Services Group, Inc....... 5,000 413,750
TransAmerica Corp............................ 3,700 346,181
------------
1,950,859
LIQUOR -- 0.66%
Anheuser Busch Cos., Inc..................... 6,700 280,981

MINING -- 0.91%
Phelps Dodge Corp............................ 4,500 383,344

OIL & GAS -- 2.24%
Ashland, Inc................................. 6,500 301,437
Chevron Corp................................. 5,600 414,050
Exxon Corp................................... 3,800 233,700
------------
949,187
PAPER -- 0.96%
Mead Corp.................................... 6,500 404,625

PHOTOGRAPHY -- 0.89%
Polaroid Corp................................ 6,800 377,400

RETAIL -- 1.94%
Federated Department Stores, Inc............. 11,800 410,050
J.C. Penney, Inc............................. 7,900 412,281
------------
822,331
STEEL -- 0.52%

Nucor Corp................................... 3,900 220,350

TELECOMMUNICATIONS -- 5.33%
AT&T Corp.................................... 11,400 399,712
GTE Corp..................................... 9,500 416,812
SBC Communications, Inc...................... 6,900 426,938
Sprint Corp.................................. 9,800 515,725
U S West, Inc................................ 13,200 497,475
------------
2,256,662
</TABLE>

See notes to the financial statements.

<PAGE> 146

PPM AMERICA/JNL BALANCED SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
TOBACCO -- 2.00%
Philip Morris Cos., Inc...................... 9,600 $ 426,000
RJR Nabisco Holdings Corp.................... 12,700 419,100
------------
845,100
TOYS -- 0.88%
Hasbro, Inc.................................. 13,200 374,550

TRANSPORTATION -- 2.01%
Burlington Northern Santa Fe................. 4,800 431,400
CSX Corp..................................... 7,600 421,800
------------
853,200
------------
Total Common Stocks
(cost $19,336,972)......................... 20,716,672
------------
<CAPTION>
PRINCIPAL AMOUNT
----------------
CORPORATE BONDS -- 18.86%
- -------------------------
<S> <C> <C>
AUTOMOBILES & PARTS -- 0.73%
Exide Corp.,
10.00%, 04/15/2005........................... $ 300,000 310,500

BROADCASTING -- 0.75%
Capstar Broadcasting Partners, Inc. (144a),
(step-up bond), 12.75%, 02/01/2009........... 500,000 317,500

BUILDING & CONSTRUCTION -- 0.70%
D R Horton, Inc.,
8.375%, 06/15/2004........................... 300,000 297,750

CONSUMER PRODUCTS -- 1.39%
Coty, Inc.,
10.25%, 05/01/2005........................... 300,000 318,000
Revlon Worldwide Corp. (144a), Zero Coupon,
03/15/2001................................... 400,000 271,000
------------
589,000
DEFENSE -- 0.78%
Alliant Techsystems, Inc.
11.75%, 03/01/2003........................... 300,000 331,875

FABRICATED METALS PRODUCTS -- 0.80%
UCAR Global Enterprises, Inc.
12.00%, 01/15/2005........................... 300,000 337,500

GAMING -- 2.22%
Horseshoe Gaming, Inc, Series B,
12.75%, 09/30/2000........................... 300,000 334,500
Rio Hotel & Casino, Inc.,
9.50%, 04/15/2007............................ 300,000 309,000
Station Casinos, Inc. (144a),
9.75%, 04/15/2007............................ 300,000 297,375
------------
940,875
<CAPTION>

PRINCIPAL AMOUNT MARKET VALUE
---------------- ------------
CORPORATE BONDS (CONTINUED)
- ---------------------------
<S> <C> <C>
INDUSTRIAL MACHINERY -- 1.98%
Mesa Operating Co. (step-up bond),
11.625%, 07/01/2006.......................... $ 400,000 $ 308,000
Therma Wave, Inc. (144a),
10.625%, 05/15/2004.......................... 200,000 212,000
U.S. Can Corp., Series B,
10.125%, 10/15/2006.......................... 300,000 318,750
------------
838,750
MEDIA & CABLE -- 1.36%
Century Communications Corp.
9.50%, 08/15/2000............................ 250,000 258,750
Rogers Cantel, Inc.
9.375%, 06/01/2008........................... 300,000 316,500
------------
575,250
PAPER -- 1.55%
Buckeye Cellulose Corp.,
9.25%, 09/15/2008............................ 15,000 15,675
S.D. Warren Co., Series B
12.00%, 12/15/2004........................... 300,000 333,000
Stone Container Corp.,
12.25%, 04/01/2002........................... 300,000 306,000
------------
654,675
PETROLEUM SERVICES -- 2.18%
DI Industries, Inc.,
8.875%, 07/01/2007........................... 300,000 298,524
Nuevo Energy Co.,
9.50%, 04/15/2006............................ 300,000 312,000
Pride Petroleum Services,
9.375%, 05/01/2007........................... 300,000 313,500
------------
924,024
POLLUTION CONTROL -- 0.73%
Allied Waste Industries, Inc. (144a),
(step-up bond), 11.30%, 07/01/2007........... 500,000 307,500

RETAIL -- 1.54%
Smith's Food & Drug Co.,
11.25%, 05/15/2007........................... 300,000 351,000
Specialty Retailers, Inc. (144a),
8.50%, 07/15/2005............................ 300,000 300,000
------------
651,000
STEEL -- 0.71%
W.R. Carpenter North America, Inc. (144a),
10.625%, 07/15/2007.......................... 300,000 301,500

TRANSPORTATION -- 1.44%
Coach USA, Inc. (144a),
9.375%, 07/01/2007........................... 300,000 297,000
Continental Airlines, Inc.,
9.50%, 12/15/2001............................ 300,000 313,500
------------
610,500
------------
Total Corporate Bonds
(cost $7,889,961)......................... 7,988,199
------------
</TABLE>

See notes to the financial statements.

<PAGE> 147
PPM AMERICA/JNL BALANCED SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

PRINCIPAL AMOUNT MARKET VALUE
---------------- ------------
U.S. GOVERNMENT SECURITIES -- 30.21%
- ------------------------------------
<S> <C> <C>
U.S. GOVERNMENTAL AGENCIES -- 15.98%
Federal Home Loan Mortgage Corp.
6.75%, 06/15/2004............................ $ 631,461 $ 631,179
6.50%, 04/01/2012............................ 745,092 730,653
7.50%, 03/01/2027............................ 747,137 749,938
Federal National Mortgage Association
7.50%, 04/01/2012............................ 745,429 756,140
8.00%, 08/01/2026............................ 740,024 756,438
Government National Mortgage Association
6.50%, 12/15/2023............................ 259,113 249,720
6.50%, 04/15/2026............................ 2,473,283 2,365,843
9.00%, 04/15/2027............................ 501,537 530,059
------------
6,769,970
U.S. TREASURY BONDS -- 3.29%
6.97%, 11/15/2016, principal only (c)........ 1,100,000 297,913
7.625%, 02/15/2025........................... 1,000,000 1,095,000
------------
1,392,913
U.S. TREASURY NOTES -- 10.94%
5.125%, 07/30/1998........................... 500,000 496,875
5.875%, 03/31/1999........................... 1,600,000 1,596,000
6.875%, 07/31/1999........................... 200,000 202,906
5.875%, 11/30/2001........................... 1,000,000 980,780
6.625%, 03/31/2002........................... 500,000 504,530
5.875%, 11/15/2005........................... 300,000 287,016
6.50%, 10/15/2006............................ 570,000 567,595
------------
4,635,702
------------
Total U.S. Government Securities
(cost $12,779,630)......................... 12,798,585
------------
<CAPTION>

PRINCIPAL AMOUNT MARKET VALUE
---------------- ------------
MORTGAGE BACKED SECURITIES -- 1.19%
- -----------------------------------
<S> <C> <C>
Prudential Home Loan Mortgage Securities Co.,
Series 1993-44, Class A5
6.00%, 11/25/2023............................ $ 520,936 $ 503,355
------------
Total Mortgage Backed Securities
(cost $497,087)........................... 503,355
------------
SHORT TERM INVESTMENTS -- 0.83%
- -------------------------------
COMMERCIAL PAPER -- 0.81%
American Express Credit Corp.
5.50%, 07/01/1997............................ 120,000 120,000
5.56%, 07/02/1997............................ 125,000 124,980
Household Financial Corp.
6.08%, 07/01/1997............................ 100,000 100,000
------------
344,980
MONEY MARKET FUNDS -- 0.02%
State Street Global Advisor Fund,
5.29% (b).................................... 6,365 6,365
------------
Total Short Term Investments
(cost $351,345)........................... 351,345
------------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $40,854,996)........................... $42,358,157
============
</TABLE>

(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of June 30, 1997.
(c) The interest rate disclosed for principal only strip represents effective
Myield at June 30, 1997, based upon estimated future cash flows.

See notes to the financial statements.

52
<PAGE> 148
PPM AMERICA/JNL HIGH YIELD BOND SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE BONDS -- 94.63%
- -------------------------
<S> <C> <C>
AGRICULTURAL MACHINERY -- 0.79%
AGCO Corp. (144a), 8.50%, 03/15/2006.............. $300,000 $306,750

APPAREL & TEXTILES -- 3.62%
Pillowtex Corp., 10.00%, 11/15/2006............... 830,000 871,500
Tultex Corp. (144a), 9.625%, 04/15/2007........... 500,000 531,250
-------------
1,402,750
AUTOMOBILES & PARTS -- 2.77%
Exide Corp., (step-up bond), 10.00%,
04/15/2005 (a).................................. 700,000 724,500
Lear Seating Corp., 9.50%, 07/15/2006.............. 325,000 346,125
-------------
1,070,625
BANKS -- 1.98%
First Nationwide Holdings, 10.625%, 10/01/2003.... 700,000 766,500

BROADCASTING -- 1.64%
Capstar Broadcasting Partners (144a),
(step-up bond), 12.75%, 02/01/2009.............. 1,000,000 635,000

BUILDING & CONSTRUCTION -- 3.51%
D.R. Horton, Inc., 8.375%, 06/15/2004............. 500,000 496,250
Johns Manville International Group, Inc.,
10.875%, 12/15/2004............................. 500,000 555,000
Toll Corp., 8.75%, 11/15/2006..................... 300,000 306,000
-------------
1,357,250
CHEMICALS -- 4.07%
Freedom Chemical Co., 10.625%, 10/15/2006......... 500,000 524,375
Key Plastics, Inc. (144a), 10.25%, 03/15/2007..... 500,000 525,000
Laroche Industries, Inc., 13.00%, 08/15/2004...... 475,000 524,875
-------------
1,574,250
COMMUNICATIONS -- 3.48%
Centennial Cellular Corp., 8.875%, 11/01/2001..... 300,000 298,500
Gray Communications, 10.625%, 10/01/2006.......... 200,000 214,000
K-III Communications, Ser. B, 8.50%, 02/01/2006... 200,000 200,000
Rogers Cantel Mobile, Inc., 9.375%, 06/01/2008.... 300,000 316,500
Rogers Cantel Mobile, Inc., 9.75%, 06/01/2016..... 200,000 213,000
Rogers Communications, Inc.,
10.875%, 04/15/2004............................. 100,000 104,750
-------------
1,346,750
CONSUMER PRODUCTS -- 3.94%
Coty, Inc., 10.25%, 05/01/2005.................... 600,000 636,000
Revlon Worldwide Corp. (144a), Zero Coupon,
03/15/2001 (a).................................. 1,000,000 677,500
Simmons Co., 10.75%, 04/15/2006.................. 200,000 210,500
-------------
1,524,000
DEFENSE -- 1.43%
Alliant Techsystems, Inc., 11.75%, 03/01/2003..... 500,000 553,125

DRUGS & HEALTH CARE -- 2.62%
Leiner Health Products (144a),
9.625%, 07/01/2007.............................. 1,000,000 1,012,500

PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE BONDS (CONTINUED)
- ---------------------------
<S> <C> <C>
ELECTRONICS -- 1.81%
Tracor, Inc. (144a), 8.50%, 03/01/2007............ $700,000 $700,000

FABRICATED METAL PRODUCTS -- 0.60%
UCAR Global Enterprises, Inc.,
12.00%, 01/15/2005.............................. 207,000 232,875

FOOD & BEVERAGES -- 3.86%
Dominick's Finer Foods, Series B,
10.875%, 05/01/2005............................. 600,000 663,000
International Home Foods, Inc.,
10.375%, 11/01/2006............................. 700,000 717,500
Keebler Corp., 10.75%, 07/01/2006................. 100,000 112,000
-------------
1,492,500
GAMING -- 5.74%
Harvey's Casino Resorts, 10.625%, 06/01/2006...... 200,000 212,000
Horseshoe Gaming, Series B, 12.75%, 09/30/2000.... 800,000 892,000
Rio Hotel & Casino, Inc. (144a),
9.50%, 04/15/2007............................... 400,000 412,000
Station Casinos, Inc., 10.125%, 03/15/2006........ 700,000 705,250
-------------
2,221,250
INDUSTRIAL MACHINERY -- 5.51%
Day International Group, Inc., Series B,
11.125%, 06/01/2005............................. 100,000 106,000
Mesa Operating Co., (step-up bond), 11.625%,
07/01/2006...................................... 700,000 539,000
Therma-Wave, Inc. (144a), 10.625%, 05/15/2004..... 800,000 848,000
U.S. Can Corp., Series B, 10.125%, 10/15/2006..... 600,000 637,500
-------------
2,130,500
MEDIA CABLE -- 7.13%
Century Communications
9.75%, 02/15/2002................................ 400,000 417,000
9.50%, 03/01/2005................................ 100,000 102,500
Frontiervision, 11.00%,10/15/2006................. 400,000 419,000
Jones Intercable, Inc., 9.625%, 03/15/2002........ 425,000 445,187
Marcus Cable Co., 11.875%,10/01/2005.............. 735,000 793,800
Rogers Cablesystems Limited
9.625%, 08/01/2002............................... 450,000 474,750
10.00%, 03/15/2005............................... 100,000 108,000
-------------
2,760,237
MERCHANDISING -- 1.08%
E & S Holdings Corp.,
10.375%, 10/01/2006............................. 400,000 416,000

PACKAGING -- 0.81%
Printpack, Inc., Series B, 10.625%, 08/15/2006.... 300,000 315,000

PAPER -- 4.57%
Doman Industries Ltd., 8.75%, 03/15/2004.......... 200,000 193,000
S.D. Warren Co., Series B, 12.00%, 12/15/2004..... 500,000 555,000
Stone Container Corp., 12.25%, 04/01/2002......... 1,000,000 1,020,000
-------------
1,768,000
</TABLE>

See notes to the financial statements.

<PAGE> 149

PPM AMERICA/JNL HIGH YIELD BOND SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
CORPORATE BONDS (CONTINUED)
- ---------------------------
<S> <C> <C>
PETROLEUM SERVICES -- 13.62%
Cliffs Drilling Co., Series B,
10.25%, 05/03/2015.............................. $300,000 $319,500
Cross Timbers Oil Co., Series B (144a),
9.25%, 04/01/2007............................... 400,000 413,000
DI Industries, Inc., 8.875%, 07/01/2007........... 500,000 497,540
Nuevo Energy Co., 9.50%, 04/15/2006............... 700,000 728,000
Ocean Energy, Inc. (144a), 8.875%, 07/15/2007..... 800,000 798,640
Parker Drilling Co., Series B, 9.75%, 11/15/2006 700,000 735,875
Pride Petroleum Services, Inc.,
9.375%, 05/01/2007.............................. 1,000,000 1,045,000
Veritas DGC, Inc., 9.75%, 10/15/2003.............. 700,000 731,500
-------------
5,269,055
POLLUTION CONTROL -- 2.24%
Allied Waste Industries, Inc. (144a),
(step-up bond), 11.30%, 06/01/2007.............. 500,000 307,500
Norcal Waste System, Inc., Series B,
(step-up bond), 13.00%, 11/15/2005.............. 500,000 560,000
-------------
867,500
PRINTING & PUBLISHING -- 1.32%
Hollinger International Publishing, Inc.,
9.25%, 03/15/2007............................... 500,000 510,000

RETAIL -- 5.38%
Finlay Enterprises, Inc., (step-up bond),
12.00%, 05/01/2005.............................. 400,000 380,000
Smith's Food & Drug, 11.25%,05/15/2007............ 600,000 702,000
Specialty Retailers, Inc. (144a),
8.50%, 07/15/2005............................... 1,000,000 1,000,000
-------------
2,082,000
STEEL -- 4.79%
Carpenter W.R. North America Inc. (144a),
10.625%, 06/15/2007............................. 1,000,000 1,005,000
NS Group, Inc., 13.50%, 07/15/2003................ 450,000 526,500
Oregon Steel Mills, Inc., 11.00%, 06/15/2003...... 300,000 321,000
-------------
1,852,500
TOBACCO -- 1.88%
Dimon, Inc., 8.875%, 06/01/2006................... 700,000 728,075

TRANSPORTATION -- 4.44%
Coach USA, Inc. (144a), 9.375%, 07/01/2007........ 1,000,000 990,000
Continental Airlines, Inc., 9.50%, 12/15/2001..... 500,000 522,500
Viking Star Shipping, Inc., 9.625%, 07/15/2003... 200,000 204,000
-------------
1,716,500
-------------
Total Corporate Bonds
(cost $35,644,193)............................ 36,611,492
-------------

MARKET
SHARES VALUE
------ ------
COMMON STOCKS -- 0.71%
- ----------------------
<S> <C> <C>
CHEMICALS -- 0.17%
General Chemical Group, Inc....................... 2,500 $66,875

ELECTRONICS -- 0.22%
Bell & Howell Co.................................. 2,700 83,194

FOREST PRODUCTS -- 0.18%
Buckeye Cellulose Corp............................ 2,100 70,875

INDUSTRIAL MACHINERY -- 0.14%
U.S. Can Corp..................................... 3,800 54,150
-------------

Total Common Stocks
(cost $255,854)............................... 275,094
-------------
PREFERRED STOCKS -- 1.52%
- -------------------------

BROADCASTING -- 1.52%
American Radio Systems Corp. (144a)
(cost $556,665)................................. 5,533 589,211
-------------
WARRANTS & RIGHTS -- 0.00%
- --------------------------

INDUSTRIAL MACHINERY -- 0.00%
Terex Corp.
(cost $831)..................................... 400 4,600
-------------

<CAPTION>
PRINCIPAL
AMOUNT
---------

SHORT TERM INVESTMENTS -- 3.14%
- -------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 3.10%
- -------------------------
Disney Walt Co., 5.45%, 07/01/1997................ $325,000 325,000
Ford Motor Credit Co., 5.46%, 07/01/1997.......... 600,000 600,000
Household Financial Corp., 6.08%, 07/01/1997...... 275,000 275,000
-------------
1,200,000
MONEY MARKET FUNDS -- 0.04%
- ---------------------------
State Street Global Advisor Fund, 5.29%, (b)...... 14,499 14,499
-------------
Total Short Term Investments
(cost $1,214,499)............................. 1,214,499
-------------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $37,672,042)................................ $ 38,694,896
=============
</TABLE>

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

(a) Denotes deferred interest security that receives no coupon payments until
a predetermined date at which time the stated coupon rate becomes
effective.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of June 30, 1997.

See notes to the financial statements.

54
<PAGE> 150
PPM AMERICA/JNL MONEY MARKET SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
---------------- ------------
COMMERCIAL PAPER -- 99.99%
- --------------------------
<S> <C> <C>
CAPTIVE FINANCE -- 17.90%
American Express Credit Corp.
5.53%, 07/01/1997........................... $ 500,000 $ 500,000
Chrysler Financial Corp.
5.52%, 07/10/1997........................... 500,000 499,310
5.52%, 07/17/1997........................... 230,000 229,436
5.57%, 07/25/1997........................... 437,000 435,377
Ford Motor Credit Co.
5.35%, 07/07/1997........................... 150,000 149,866
5.70%, 07/07/1997........................... 150,000 149,857
5.35%, 07/23/1997........................... 370,000 368,790
5.35%, 07/25/1997........................... 225,000 224,198
5.58%, 08/26/1997........................... 560,000 555,139
General Motors Acceptance Corp.
5.37%, 07/07/1997........................... 200,000 199,821
5.44%, 07/14/1997........................... 135,000 134,735
5.61%, 09/04/1997........................... 250,000 247,468
5.77%, 10/20/1997........................... 270,000 265,196
5.69%, 10/27/1997........................... 425,000 417,074
5.77%, 12/08/1997........................... 300,000 292,307
J C Penney Corp.
5.55%, 08/22/1997........................... 250,000 247,996
John Deere Capital Corp.
5.70%, 09/26/1997........................... 305,000 300,799
Sears Roebuck Acceptance Corp.
5.54%, 07/15/1997........................... 125,000 124,731
5.52%, 07/16/1997........................... 250,000 249,425
5.53%, 07/18/1997........................... 250,000 249,347
5.55%, 07/29/1997........................... 350,000 348,489
5.61%, 08/28/1997........................... 250,000 247,740
5.65%, 11/03/1997........................... 350,000 343,134
----------
6,780,235
CASINOS -- 1.20%
Circus Circus Enterprises, Inc.
5.93%, 08/20/1997........................... 460,000 456,211

CHEMICALS -- 0.77%
DuPont E I DeNemours & Co.
5.62%, 12/02/1997........................... 300,000 292,788

COMPUTERS -- 2.65%
International Business Machines Credit Corp.
5.50%, 07/08/1997........................... 500,000 499,465
5.51%, 07/15/1997........................... 100,000 99,786
5.54%, 07/18/1997........................... 165,000 164,568
5.54%, 07/25/1997........................... 240,000 239,114
---------
1,002,933
CONSUMER FINANCE -- 18.20%
American General Financial Corp.
5.61%, 07/16/1997........................... 300,000 299,299
5.65%, 07/28/1997........................... 250,000 248,941
5.59%, 08/28/1997........................... 295,000 292,343
5.56%, 09/15/1997........................... 220,000 217,418
5.59%, 10/08/1997........................... 275,000 270,773
5.71%, 11/10/1997........................... 215,000 210,499

PRINCIPAL AMOUNT MARKET VALUE
---------------- ------------
COMMERCIAL PAPER (CONTINUED)
- ----------------------------
<S> <C> <C>
CONSUMER FINANCE (CONTINUED)
Beneficial Corp.
5.63%, 07/15/1997........................... $ 300,000 $ 299,343
5.58%, 08/28/1997........................... 205,000 203,157
5.56%, 09/18/1997........................... 715,000 706,276
5.54%, 10/14/1997........................... 410,000 403,375
Heller Financial, Inc.
5.40%, 07/08/1997........................... 275,000 274,711
5.57%, 07/15/1997........................... 120,000 119,740
5.62%, 07/17/1997........................... 400,000 399,001
5.55%, 07/18/1997........................... 250,000 249,345
5.75%, 10/14/1997........................... 210,000 206,478
5.73%, 10/28/1997........................... 300,000 294,318
Household Financial Corp.
6.08%, 07/01/1997........................... 190,000 190,000
5.62%, 07/30/1997........................... 280,000 278,732
5.59%, 08/25/1997........................... 650,000 644,449
5.59%, 09/03/1997........................... 425,000 420,776
Northwest Financial, Inc.
5.54%, 07/22/1997........................... 370,000 368,804
5.55%, 07/24/1997........................... 300,000 298,936
------------
6,896,714
CONSUMER PRODUCTS -- 6.39%
Conagra, Inc.
5.72%, 07/03/1997........................... 530,000 529,832
5.75%, 08/27/1997........................... 250,000 247,724
Hasbro, Inc.
5.62%, 07/21/1997........................... 850,000 847,346
5.64%, 08/08/1997........................... 500,000 497,023
5.63%, 08/20/1997........................... 300,000 297,654
------------
2,419,579
DRUGS & HEALTH CARE -- 9.36%
A H Robins Co., Inc.
5.65%, 08/04/1997........................... 314,000 312,324
5.56%, 08/27/1997........................... 392,000 388,549
Allergan
5.53%, 07/02/1997........................... 350,000 349,946
5.58%, 09/09/1997........................... 305,000 301,691
American Home Products Corp.
6.07%, 07/01/1997........................... 500,000 500,000
5.60%, 07/07/1997........................... 415,000 414,613
Schering Corp.
5.31%, 07/22/1997........................... 150,000 149,535
5.32%, 07/22/1997........................... 150,000 149,535
5.33%, 07/22/1997........................... 400,000 398,756
5.64%, 09/02/1997........................... 390,000 386,150
5.70%, 10/16/1997........................... 200,000 196,612
------------
3,547,711
FINANCIAL SERVICES -- 4.13%
Merrill Lynch & Co.
5.65%, 08/12/1997........................... 500,000 496,704
5.65%, 10/01/1997........................... 400,000 394,224
5.70%, 10/01/1997........................... 405,000 399,101
5.75%, 10/20/1997........................... 280,000 275,036
------------
1,565,065

</TABLE>

See notes to financial statements.
55
<PAGE> 151

PPM AMERICA/JNL MONEY MARKET SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
---------------- ------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
- ----------------------------
INDEPENDENT FINANCE -- 11.72%
Associates Corp. of North America
5.52%, 07/17/1997........................... $ 290,000 $ 289,289
5.54%, 07/23/1997........................... 300,000 298,984
5.63%, 07/31/1997........................... 800,000 796,247
CIT Group Holdings, Inc.
5.55%, 07/28/1997........................... 515,000 512,856
5.54%, 08/13/1997........................... 550,000 546,361
5.59%, 08/27/1997........................... 500,000 495,575
General Electric Capital Corp.
5.35%, 07/28/1997........................... 290,000 288,836
5.40%, 08/04/1997........................... 125,000 124,363
5.76%, 10/22/1997........................... 250,000 245,480
5.63%, 10/30/1997........................... 487,000 477,784
5.72%, 12/08/1997........................... 375,000 365,467
----------
4,441,242
INSURANCE -- 0.65%
USAA Capital Corp.
5.26%, 08/25/1997........................... 250,000 247,991

LEISURE TIME -- 2.08%
Walt Disney Co.
5.35%, 07/09/1997........................... 550,000 549,346
5.35%, 07/10/1997........................... 240,000 239,679
----------
789,025
MORTGAGE BANKING -- 4.04%
Countrywide Credit Corp.
5.67%, 07/23/1997........................... 200,000 199,307
5.61%, 08/11/1997........................... 300,000 298,083
5.59%, 09/10/1997........................... 425,000 420,314
5.59%, 09/16/1997........................... 620,000 612,587
----------
1,530,291
OIL -- 2.61%
Chevron UK Investment PLC
5.57%, 09/17/1997........................... 1,000,000 987,932

OFFICE EQUIPMENT -- 2.30%
Pitney Bowes Credit Corp.
5.67%, 09/16/1997........................... 535,000 528,511
5.62%, 12/02/1997........................... 350,000 341,586
----------
870,097
<CAPTION>

PRINCIPAL AMOUNT MARKET VALUE
---------------- ------------
COMMERCIAL PAPER (CONTINUED)
- ----------------------------
<S> <C> <C>
PACKAGING -- 1.55%
Crown Cork & Seal, Inc.
5.80%, 07/10/1997........................... $ 180,000 $ 179,739
5.77%, 07/14/1997........................... 100,000 99,792
5.80%, 08/08/1997........................... 190,000 188,837
5.82%, 08/25/1997........................... 120,000 118,933
----------
587,301
PUBLISHING -- 2.70%
McGraw Hill, Inc.
5.58%, 07/14/1997........................... 600,000 598,791
5.44%, 08/11/1997........................... 427,000 424,355
----------
1,023,146
TELECOMMUNICATIONS -- 8.61%
American Telephone & Telegraph Co.
6.05%, 07/01/1997........................... 500,000 500,000
Ameritech Corp.
5.33%, 07/11/1997........................... 732,000 730,916
GTE Corp.
5.58%, 09/12/1997........................... 1,540,000 1,522,575
Southwestern Bell Telephone Co.
5.60%, 07/09/1997........................... 510,000 509,365
----------
3,262,856
UTILITIES -- 3.12%
Pacific Gas & Electric Co.
5.56%, 07/24/1997........................... 500,000 498,224
5.55%, 08/04/1997........................... 400,000 397,903
5.59%, 08/26/1997........................... 290,000 287,478
----------
1,183,605
----------
TOTAL COMMERCIAL PAPER
- ----------------------
(cost $37,884,722).......................... 37,884,722
----------
MONEY MARKET FUNDS -- 0.01%
- ---------------------------
State Street Global Advisor Fund
5.29% (a) (cost $4,021).................... 4,021 4,021
----------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $37,888,743).......................... $ 37,888,743
============
</TABLE>

(a) Dividend yields change daily to reflect current market conditions. Rate
shown is the quoted yield as of June 30, 1997.

See notes to the financial statements.

56
<PAGE> 152
SALOMON BROTHERS/JNL GLOBAL BOND SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
---------------- -------------
CORPORATE BONDS -- 38.45%
- -------------------------
<S> <C> <C>
AEROSPACE INDUSTRIES -- 1.57%
Jordan Industries, Inc., 10.375%, 08/01/2003... $ 250,000 $ 265,000
Talley Industries, 10.75%, 10/15/2003.......... 150,000 157,500
-------------
422,500
BROADCASTING -- 1.62%
Cablevision Systems Corp., 10.50%, 05/15/2016.. 250,000 272,500
SFX Broadcasting, Inc., 10.75%, 05/15/2006..... 150,000 162,000
-------------
434,500
BUILDING & CONSTRUCTION -- 1.08%
Southdown, Inc. Series B, 10.00%, 03/01/2006... 125,000 135,938
Synthetic Industries, Inc. (144a), 9.25%, -------------
02/15/2007.................................. 150,000 152,250
-------------
288,188
BUSINESS SERVICES -- 1.93%
Iron Mountain, Inc., 10.125%, 10/01/2006....... 150,000 160,500
Ryder Trucks, Inc., 10.00%, 12/01/2006......... 200,000 206,000
Williams Scotsman, Inc. (144a), 9.875%, -------------
06/01/2007.................................. 150,000 151,500
-------------
518,000
CAPITAL GOODS -- 0.29%
Alvey Systems, 11.375%, 01/31/2003............. 75,000 77,625

CASINOS -- 0.55%
Trump Atlantic City Associates,
11.25%, 05/01/2006.......................... 150,000 146,625

CHEMICALS -- 1.11%
Freedom Chemical Co. (144a),
10.625%, 10/15/2006......................... 150,000 157,312
NL Industries (step-up bond),
13.00%, 10/15/2005 (a) (d).................. 150,000 140,250
-------------
297,562

CONTAINERS & GLASS -- 0.95%
Stone Container Corp., 12.25%, 04/01/2002...... 250,000 255,000

COSMETICS & TOILETRIES -- 1.60%
French Fragrances, Inc. (144a), 10.375%,
05/15/2007.................................. 250,000 260,000
Revlon Worldwide Corp. (144a),
Zero Coupon, 03/15/2001..................... 250,000 169,375
-------------
429,375

DRUGS & HEALTH CARE -- 2.67%
Eye Care Centers of America, Inc.,
12.00%, 10/01/2003.......................... 200,000 220,000
Integrated Health Services, Inc.,
9.50%, 09/15/2007........................... 100,000 102,250
Packard Bioscience, Inc., 9.375%, 03/01/2007... 150,000 150,000
Urohealth Systems, Inc. (144a), 12.50%, -------------
04/01/2004.................................. 250,000 242,500
-------------
714,750
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
---------------- -------------
CORPORATE BONDS (CONTINUED)
- ---------------------------
<S> <C> <C>
ELECTRONICS -- 0.99%
Clark-Schwebel, 10.50%, 04/15/2006............. $ 250,000 $ 266,250

FINANCIAL SERVICES -- 2.71%
Coleman Escrow Corp., Zero Coupon, 05/15/2001.. 300,000 189,750
Foamex LP/ Foamex Cap Corp. (144a),
9.875%, 06/15/2007.......................... 125,000 129,375
Midland Bank PLC, 7.65%, 05/01/2025............ 100,000 104,631
PaineWebber Group, Inc., 7.00%, 03/01/2000..... 300,000 302,043
-------------
725,799
FOOD & BEVERAGES -- 1.74%
CFP Holdings, Inc., 11.625%, 01/15/2004........ 200,000 207,000
Dole Foods, Inc., 6.75%, 07/15/2000............ 100,000 100,059
Twin Laboratories, Inc. (144a), 10.25%, -------------
05/15/2006.................................. 150,000 158,250
-------------
465,309
HOTELS & RESTAURANTS -- 0.42%
Wyndham Hotel Corp., 10.50%, 05/15/2006........ 100,000 112,000

HOUSEHOLD APPLIANCES & FURNISHINGS -- 1.16%
Collins & Aikman Floorcover,
10.00%, 01/15/2007.......................... 150,000 152,625
Rayovac Corp., 10.25%, 11/01/2006.............. 150,000 156,750
-------------
309,375
INDUSTRIAL MACHINERY -- 0.74%
Harnischfeger Industries, Inc.,
6.875%, 02/15/2027.......................... 200,000 197,564

LIQUOR -- 0.59%
Stroh Brewery Co., 11.10%, 07/01/2006.......... 150,000 156,750

METALS & MINING -- 0.60%
Renco Metals, Inc., 11.50%, 07/01/2003......... 150,000 159,750

OFFICE SUPPLIES -- 0.76%
Pen-Tab Industries, Inc., 10.875%, 02/01/2007.. 200,000 203,500

PACKAGING -- 0.41%
Tekni Plex, Inc., 11.25%, 04/01/2007........... 100,000 108,500

PAPER -- 0.72%
Doman Industries Ltd., 8.75%, 03/15/2004....... 200,000 193,000

PETROLEUM SERVICES -- 3.01%
Cliffs Drilling, 10.25%, 05/15/2003............ 150,000 159,750
Cross Timbers Oil Co., 9.25%, 04/01/2007....... 150,000 154,875
National Energy Group, Inc. (144a),
10.75%, 11/01/2006.......................... 150,000 156,375
Occidental Petroleum Corp., 9.25%, 08/01/2019.. 150,000 177,519
Parker Drilling Co., 9.75%, 11/15/2006......... 150,000 157,688
-------------
806,207
</TABLE>

See notes to the financial statements.

57
<PAGE> 153
SALOMON BROTHERS/JNL GLOBAL BOND SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
---------------- -------------
CORPORATE BONDS (CONTINUED)
- ---------------------------
<S> <C> <C>
POLLUTION CONTROL -- 1.81%
Allied Waste Industries, Inc. (144a),
(step-up bond), 11.30%, 07/01/2007 (a) (d).................................. $ 200,000 $ 123,000
Envirosource, Inc., 9.75%, 06/15/2003.......................................... 200,000 194,000
Norcal Waste System, (step-up bond), Series B
13.00%, 11/15/2005 (a) (d).................................................. 150,000 168,000
-------------
485,000

PUBLISHING -- 1.97%
American Media Operations Inc., 11.625%,
11/15/2004.................................................................. 250,000 272,500
Hollinger International Publishing, Inc.
9.25%, 03/15/2007........................................................... 250,000 255,000
-------------
527,500

RETAIL -- 2.33%
Pueblo Xtra, International, 9.50%, 08/01/2003.................................. 100,000 97,000
Riddell Sports, Inc., 10.50%, 07/15/2007....................................... 250,000 255,625
Selmer Inc. (144a), 11.00%, 05/15/2005......................................... 250,000 272,500
-------------
625,125
SOFTWARE -- 0.39%
Printpack, Inc. (144a), 10.625%, 08/15/2006.................................... 100,000 105,000

TELECOMMUNICATIONS -- 3.38%
Adelphia Communications, 12.50%, 05/15/2002.................................... 150,000 159,000
Diamond Cable Communications, Inc.,
(step-up bond), 11.75%, 12/15/2005 (a) (d).................................. 225,000 155,812
Intermedia Communications, (step-up bond),
12.50%, 05/15/2006 (a) (d).................................................. 244,000 175,680
International CableTel, Inc., (step-up bond),
11.50%, 02/01/2006 (a) (d).................................................. 225,000 156,375
Marcus Cable Co LP, (step-up bond), 14.25%,
12/15/2005 (a) (d) ......................................................... 200,000 158,000
U.S. West Capital Funding, 6.85%, 01/15/2002................................... 100,000 99,893
-------------
904,760

TRANSPORTATION -- 1.35%
Central Transport Rental Group,
9.50%, 04/30/2003........................................................... 150,000 144,000
Sun International Ltd., 9.00%, 03/15/2007...................................... 100,000 101,875
TFM SA de CV, 1.00%, 06/15/2009................................................ 200,000 116,000
-------------
361,875
-------------

Total Corporate Bonds
(cost $10,015,367).......................................................... 10,297,389
-------------

GOVERNMENT BONDS -- 33.51%
- --------------------------

ARGENTINA -- 2.38%
- ------------------
Argentina Floating Rate Bond,
6.75%, 03/31/2005 (b)....................................................... 679,000 638,260

AUSTRALIA -- 0.07%
- ------------------
Australia Government Bond, 10.00%, 10/15/2007.................................. 20,00 18,301

PRINCIPAL AMOUNT MARKET VALUE
---------------- -------------
GOVERNMENT BONDS (CONTINUED)
- ----------------------------
<S> <C> <C>
BRAZIL -- 3.96%
- ---------------
Brazil Government Bond, 10.125%, 05/15/2027.................................... $ 25,000 $ 24,063
Brazil C Bond (payment-in-kind bond),
8.00%, 04/15/2014 (b)(c).................................................... 1,288,748 1,035,831
-------------
Total Brazil............................................................. 1,059,894

CANADA -- 0.54%
- ---------------
Canadian Government Bond
7.50%, 09/01/2000........................................................... 150,000 115,292
7.00%, 12/01/2006........................................................... 40,000 30,385
-------------
Total Canada............................................................. 145,677

DENMARK -- 0.21%
- ----------------
Denmark Government Bond, 8.00%, 03/15/2006..................................... 330,000 55,932

ECUADOR -- 0.44%
- ----------------
Ecuador Pars (step-up bond),
3.50%, 02/28/2025 (a) (d)................................................... 250,000 117,500

GERMANY -- 0.19%
- ----------------
Germany (Federal Republic)
8.25%, 09/20/2001........................................................... 40,000 26,262
6.00%, 07/04/2007........................................................... 40,000 23,448
-------------
Total Germany............................................................ 49,710

IRELAND -- 0.40%
- ----------------
Ireland Government Bond, 6.25%, 04/01/1999..................................... 70,000 106,404

MEXICO -- 2.34%
- ---------------
Mexico Global Bond, 11.50%, 05/15/2026......................................... 550,000 626,175

MOROCCO -- 1.53%
- ----------------
Morocco Restructure & Consolidation Agreement,
6.8125%, 01/01/2009 (b)..................................................... 450,000 410,625

PANAMA -- 0.57%
- ---------------
Panama Government Bond, 3.703%,
07/17/2014 (b).............................................................. 200,000 154,000

RUSSIA -- 1.14%
- ---------------
Russia Interest Notes, 1.00%, 12/31/2016....................................... 400,000 305,500

SOUTH KOREA -- 0.81%
- --------------------
Korea Development Bank, 9.60%, 12/01/2000...................................... 200,000 217,246

UNITED STATES -- 16.73%
- -----------------------
U.S. GOVERNMENT AGENCIES -- 9.91%
Federal Home Loan Mortgage Company
10.00%, 05/15/2020.......................................................... 50,000 45,969
6.50%, TBA (e)............................................................. 300,000 287,343
</TABLE>

See notes to the financial statements.
<PAGE> 154
SALOMON BROTHERS/JNL GLOBAL BOND SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
---------------- -------------
GOVERNMENT BONDS (CONTINUED)
- ----------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
U.S. GOVERNMENT AGENCIES (CONTINUED)
Federal National Mortgage Association
13.00%, 11/01/2015.............................................................. $ 15,000 $ 12,528
7.00%, 11/18/2015............................................................... 1,500,000 1,512,422
10.40%, 04/25/2019.............................................................. 100,000 75,147
8.77%, 03/17/2020, interest only (g)............................................ 841,140 26,516
6.50%, 02/01/2026............................................................... 300,675 272,577
9.02%, 10/17/2036, interest only (g)............................................ 4,295,000 129,018
7.00%, TBA (e).................................................................. 300,000 293,904
-------------
2,655,424
U.S. TREASURY BOND -- 0.22%
6.625%, 02/15/2027.............................................................. 60,000 58,706
U.S. TREASURY NOTES -- 6.60%
5.00%, 01/31/1998............................................................... 300,000 298,923
6.25%, 05/31/1999............................................................... 160,000 160,450
6.50%, 08/31/2001............................................................... 150,000 150,726
6.125%, 12/30/2001.............................................................. 40,000 39,606
6.625%, 03/31/2002.............................................................. 1,000,000 1,009,060
3.375%, 01/15/2007 (f).......................................................... 70,000 68,316
6.625%, 05/15/2007.............................................................. 40,000 40,331
-------------
1,767,412
-------------

Total United States.......................................................... 4,481,542

VENEZUELA -- 2.20%
Republic of Venezuela--Par, 6.75%, 03/31/2020................................... 750,000 589,687
-------------
Total Government Bonds
(cost $8,526,277)............................................................ 8,976,453
-------------
<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
---------------- ------------
ASSET BACKED SECURITIES -- 4.28%
- --------------------------------
<S> <C> <C>
Airplane Pass-through Trust, 10.875%,
03/15/2019...................................................................... $ 125,000 $ 141,245
Mid State Trust, Series VI, 7.34%, 07/01/2035...................................... 1,000,000 1,005,625
-------------
Total Asset Backed Securities
(cost $1,124,844).......................................................... 1,146,870
-------------
WARRANTS -- 0.00%
- -----------------
VENEZUELA -- 0.00%
Republic of Venezuela Warrants (cost $0)........................................ 1,250 0
-------------
SHORT TERM INVESTMENTS -- 23.76%
- --------------------------------
MONEY MARKET FUNDS -- 0.00%
State Street Global Advisor Fund, 5.29%, (f).................................... 994 994

REPURCHASE AGREEMENTS -- 23.76%
Repurchase Agreement with J P Morgan, 5.95%,
(Collateralized by $3,181,000 U.S. Treasury
Note 7.375% due 11/15/1997, market value -
$3,230,206), acquired on 06/30/1997, due
07/01/1997................................................................... 3,181,000 3,181,000
Repurchase agreement with United Bank of
Switzerland, 5.875%, (Collateralized by
$3,182,000 U.S. Treasury Bond 11.125% due
02/15/2015, market value - $4,760,326),
acquired on 06/30/1997, due
07/01/1997................................................................... 3,182,000 3,182,000
-------------
6,363,000
-------------
Total Short Term Investments
(cost $6,363,994).......................................................... 6,363,994
-------------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $26,030,482)........................................................... $26,784,706
=============
</TABLE>

(a) Denotes deferred interest security that receives no coupon payments until
a predetermined date at which time the stated coupon rate becomes
effective.
(b) Coupon is indexed to 6 Month Libor . Rate stated is rate in effect on
June 30, 1997.
(c) Currently a portion of this security's coupon payment is received in
additional principal.
(d) Coupon payment periodically increases over the life of the security. Rate
stated is in effect as of June 30, 1997.
(e) Investment purchased on a when-issued basis.
(f) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of June 30, 1997.
(g) The interest rates disclosed for interest only strips represent effective
yields at June 30, 1997 based upon estimated future cash flows.

See notes to the financial statements.

59
<PAGE> 155
SALOMON BROTHERS/JNL
U.S. GOVERNMENT & QUALITY BOND SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT ------------
-----------
U.S. GOVERNMENT SECURITIES -- 54.11%
- ------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY & AGENCY
BACKED ISSUES -- 40.88%
Federal Home Loan Bank
5.94%, 06/13/2000.................................................................... $ 300,000 $ 296,577
Federal Home Loan Mortgage Corp.
6.00%, 09/01/2010.................................................................... 4,209 4,092
11.75%, 01/01/2011................................................................... 4,999 5,536
7.00%, 07/01/2011.................................................................... 120,496 120,483
8.25%, 04/01/2017.................................................................... 479,887 500,618
Federal National Mortgage Association
14.50%, 11/01/2014................................................................... 9,302 11,500
12.50%, 08/01/2015................................................................... 7,390 8,537
12.50%, 09/01/2015................................................................... 25,917 30,452
13.00%, 11/01/2015................................................................... 22,941 26,726
12.00%, 01/01/2016................................................................... 768,514 888,066
12.50%, 01/15/2016................................................................... 387,691 454,810
11.50%, 04/01/2019................................................................... 8,126 9,147
10.50%, 08/01/2020................................................................... 144,055 158,054
11.00%, 09/01/2020................................................................... 397,456 443,592
6.50%, 03/01/2026.................................................................... 429,923 411,518
7.00%, 05/01/2026.................................................................... 338,051 331,713
7.00%, TBA (a)....................................................................... 2,650,000 2,582,652
7.50%, TBA (a)....................................................................... 1,700,000 1,703,706
Government National Mortgage Association
13.50%, 07/15/2010................................................................... 193,427 229,683
7.00%, TBA (a)....................................................................... 300,000 294,468
Student Loan Marketing Association
7.50%, 03/08/2000.................................................................... 400,000 411,064
----------
8,922,994
U.S. TREASURY BOND -- 10.53%
6.625%, 02/15/2027................................................................... 2,350,000 2,299,334
U.S. TREASURY NOTES -- 2.70%
5.625%, 02/28/2001................................................................... 500,000 488,830
6.50%, 05/31/2001.................................................................... 100,000 100,547
----------
589,377
----------
Total U.S. Government Securities
(cost $11,744,696).................................................................. 11,811,705
----------

<CAPTION>
PRINCIPAL AMOUNT MARKET VALUE
---------------- ------------
CORPORATE BONDS -- 3.90%
- ------------------------
<S> <C> <C>
BANKS -- 0.71%
Banc One Corp.
7.60%, 05/01/2007.................................................................... $ 150,000 $ 154,190
COMPUTERS & BUSINESS EQUIPMENT -- 0.48%
Xerox Corp.
8.125%, 04/15/2002................................................................... 100,000 105,215
PETROLEUM SERVICES -- 2.71%
Occidental Petroleum Corp.
9.25%, 08/01/2019.................................................................... 500,000 591,730
----------
Total Corporate Bonds
(cost $842,135)..................................................................... 851,135
----------
SHORT TERM INVESTMENTS -- 41.99%
- --------------------------------
MONEY MARKET FUNDS -- 0.00%
State Street Global Advisor Fund, 5.29% (b)........................................... 421 421
REPURCHASE AGREEMENTS -- 12.25%
Repurchase agreement with J.P. Morgan,
5.95% (Collateralized by $1,337,000
U.S. Treasury Note, 11.25% due 02/15/2015,
market value -- $2,000,175), acquired on
06/30/1997, due 07/01/1997.......................................................... 1,337,000 1,337,000
Repurchase agreement with United Bank of
Switzerland, 5.875% (Collateralized by
$1,337,000 U.S. Treasury Note, 8.875% due
02/15/1999, market value -- $1,439,327),
acquired on 06/30/1997, due 07/01/1997................................................ 1,337,000 1,337,000
----------
2,674,000
U.S. GOVERNMENT AGENCIES -- 29.74%
Federal Farm Credit Bank Discount Note
5.38%, 07/01/1997.................................................................... 3,500,000 3,500,000
5.40%, 07/11/1997.................................................................... 1,500,000 1,497,750
Student Loan Marketing Assoc. Discount Note
5.38%, 07/31/1997.................................................................... 1,500,000 1,493,275
----------
6,491,025
----------
Total Short Term Investments
(cost $9,165,446)................................................................... 9,165,446
----------
TOTAL INVESTMENTS -- 100%
-------------------------
(cost $21,752,277).................................................................. $21,828,286
===========
</TABLE>

(a) Investment purchased on a when-issued basis.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of June 30, 1997.

See notes to the financial statements.

60
<PAGE> 156
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS -- 93.75%
- -----------------------
<S> <C> <C>
FRANCE -- 0.33%
- ---------------
LIQUOR -- 0.33%
LVMH, Louis Vuitton Moet-Hennessy............. 990 $ 266,170

HONG KONG -- 0.61%
- ------------------
CONGLOMERATES -- 0.61%
Hutchinson Whampoa Ltd........................ 47,000 406,464
Swire Pacific................................. 10,000 90,032
-------------
496,496
ITALY -- 0.64%
- --------------
BANKS -- 0.47%
Banca Fideuram SPA............................ 118,200 386,334
TELECOMMUNICATIONS -- 0.17%
Telecom Italia SPA............................ 30,600 60,585
Telecom Italia Mobile (b)..................... 22,900 74,107
-------------
134,692
-------------
Total Italy................................ 521,026

MALAYSIA -- 0.43%
- -----------------
INDUSTRIAL MACHINERY -- 0.43%
United Engineers Ltd.......................... 47,900 345,396

MEXICO -- 0.37%
- ---------------
HOUSEHOLD PRODUCTS -- 0.37%
Kimberly Clark de Mexico, SA de CV............ 74,500 299,969

NETHERLANDS -- 2.24%
- --------------------
HOUSEHOLD PRODUCTS -- 0.31%
Hagemeyer N.V................................. 4,900 253,125
NEWSPAPERS -- 0.67%
Ver Ned Uitgevers N.V......................... 24,700 546,121
PUBLISHING -- 0.40%
Elsevier N.V.................................. 19,300 322,502
REAL ESTATE -- 0.30%
Security Capital U.S. Realty.................. 16,400 244,360
SOFTWARE -- 0.56%
Getronics N.V................................. 14,100 455,418
-------------
Total Netherlands.......................... 1,821,526

PORTUGAL -- 0.99%
- -----------------
TELECOMMUNICATIONS -- 0.99%
Telecel - Communicacoes Pessoais SA, (a)...... 9,700 804,613

SOUTH AFRICA -- 0.31%
- ---------------------
CHEMICALS -- 0.31%
Rustenburg Platinum Holdings.................. 13,900 254,287

SWEDEN -- 1.26%
- ---------------
DRUGS & HEALTH CARE -- 0.56%
Astra AB Class B.............................. 25,800 455,265

<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
SWEDEN (CONTINUED)
- ------------------
FINANCIAL SERVICES -- 0.27%
Kinnevik AB Class B.......................... 7,800 $ 217,297
RETAIL -- 0.43%
Hennes & Mauritz AB Class B................... 10,000 351,625
-------------
Total Sweden............................... 1,024,187

SWITZERLAND -- 1.45%
- --------------------
CONGLOMERATES -- 0.17%
Sig Schweizerische Industrie AG............... 45 136,387
DRUGS & HEALTH CARE -- 1.28%
Novartis AG................................... 650 1,039,110
-------------
Total Switzerland.......................... 1,175,497

UNITED KINGDOM -- 2.26%
- -----------------------
CONGLOMERATES -- 1.85%
Rentokil Initial PLC.......................... 152,000 533,083
Tomkins PLC................................... 224,600 972,469
-------------
1,505,552
TELECOMMUNICATIONS -- 0.41%
Vodafone Group PLC............................ 67,300 328,379
-------------
Total United Kingdom....................... 1,833,931

UNITED STATES -- 82.86%
- -----------------------
AEROSPACE -- 1.87%
AlliedSignal, Inc............................. 14,200 1,192,800
Boeing Co..................................... 6,200 328,987
-------------
1,521,787
APPAREL & TEXTILES -- 0.36%
Nike, Inc. Class B............................ 5,000 291,875
AUTOMOBILE & PARTS -- 1.85%
Danaher Corp.................................. 29,500 1,498,969
BANKS -- 4.35%
Citicorp...................................... 6,600 795,712
Mellon Bank Corp.............................. 4,100 185,012
Northern Trust Corp........................... 11,700 565,987
Norwest Corp.................................. 17,300 973,125
Toronto Dominion Bank......................... 7,800 231,075
Wells Fargo & Co.............................. 2,900 781,550
-------------
3,532,461
BUILDING & CONSTRUCTION -- 0.69%
Masco Corp.................................... 13,500 563,625
BUSINESS SERVICES -- 5.30%
ADT Ltd....................................... 7,100 234,300
Automatic Data Processing, Inc................ 10,100 474,700
CUC International (a)......................... 20,400 526,575
First Data Corp............................... 31,702 1,392,907
H&R Block, Inc................................ 22,400 722,400
</TABLE>
See notes to the financial statements.

<PAGE> 157
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

June 30, 1997

SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
BUSINESS SERVICES (CONTINUED)
Interpublic Group Cos., Inc................... 8,600 $ 527,288
Service Corp. International, Inc.............. 13,100 430,662
-------------
4,308,832
CHEMICALS --1.39%
Great Lakes Chemical Corp..................... 14,700 769,912
Rustenburg Platinum Holdings ADR (a).......... 19,418 355,346
-------------
1,125,258
COMPUTERS & BUSINESS EQUIPMENT -- 2.61%
Cisco Systems, Inc. (a)....................... 11,600 778,650
Dell Computer Corp. (a)....................... 1,600 187,900
Fore Systems, Inc. (a)........................ 3,900 53,137
Hewlett Packard Co............................ 9,900 554,400
3Com Corp. (a)................................ 12,100 544,500
-------------
2,118,587
DRUGS & HEALTH CARE -- 9.09%
Baxter International, Inc..................... 8,800 459,800
Biogen, Inc. (a).............................. 7,300 247,288
Columbia/HCA Healthcare Corp.................. 21,200 833,425
Genentech, Inc. (a)........................... 12,300 724,931
Healthsouth Corp. (a)......................... 23,700 591,019
Johnson & Johnson Co.......................... 17,000 1,094,375
Medtronic, Inc................................ 5,300 429,300
Merck & Co., Inc.............................. 7,900 817,650
Pacificare Health Systems Class B (a)......... 3,700 236,337
Pfizer, Inc................................... 10,200 1,218,900
Warner Lambert Co............................. 5,900 733,075
-------------
7,386,100
ELECTRICAL EQUIPMENT -- 3.73%
Boston Scientific Corp. (a)................... 10,300 632,806
General Electric Co........................... 36,700 2,399,262
-------------
3,032,068
ELECTRONICS -- 4.55%
Analog Devices, Inc. (a)...................... 13,200 350,625
Electronic Data Systems Corp.................. 1,700 69,700
Ericcson LM Tel Co. Class B ADR............... 2,900 114,187
Intel Corp.................................... 5,100 723,244
Linear Technology Corp........................ 10,500 543,375
Maxim Integrated Products, Inc. (a)........... 10,900 619,938
Molex, Inc. Class A........................... 7,275 253,716
Motorola, Inc................................. 4,200 319,200
Teleflex, Inc................................. 17,600 550,000
Xilinx, Inc. (a).............................. 3,100 152,094
-------------
3,696,079
FINANCIAL SERVICES -- 5.21%
Corporate Express, Inc. (a)................... 15,100 218,006
Federal Home Loan Mortgage Corp............... 74,400 2,557,500
Federal National Mortgage Association......... 25,400 1,108,075
Green Tree Financial Corp..................... 9,700 345,563
-------------
4,229,144
<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
FOOD & BEVERAGES -- 4.17%
CPC International, Inc........................ 5,200 $ 480,025
Coca-Cola Co.................................. 9,100 614,250
Hershey Foods Corp............................ 2,200 121,688
Pepsico, Inc.................................. 23,100 867,694
Pioneer Hi-Bred International, Inc............ 6,900 552,000
Sara Lee Corp................................. 11,300 470,363
Unilever N.V.................................. 1,300 283,400
-------------
3,389,420
GOLD -- 1.05%
Barrick Gold Corp............................. 13,400 294,800
Newmont Mining Corp........................... 14,300 557,700
-------------
852,500
HOUSEHOLD PRODUCTS -- 1.72%
Corning, Inc.................................. 16,700 928,937
Proctor & Gamble Co........................... 3,300 466,125
-------------
1,395,062
INDUSTRIAL MACHINERY -- 1.28%
Trimas Corp................................... 14,300 402,187
Tyco International, Ltd....................... 9,100 633,019
-------------
1,035,206
INSURANCE -- 8.60%
Ace Ltd....................................... 21,300 1,573,537
Berkshire Hathaway, Inc. Class A (a).......... 25 1,180,000
Exel Ltd...................................... 8,800 464,200
Fairfax Financial Holdings, Ltd. (a).......... 1,300 376,552
Mutual Risk Management, Ltd................... 12,700 582,612
PartnerRe Ltd................................. 2,400 91,500
St. Paul Cos., Inc............................ 6,300 480,375
Traveler's Group, Inc.,....................... 20,300 1,280,169
UNUM Corp..................................... 22,900 961,800
-------------
6,990,745
LEISURE TIME -- 1.68%
Carnival Corp. Class A........................ 10,300 424,875
Walt Disney Co................................ 11,700 938,925
-------------
1,363,800
NEWSPAPERS -- 1.12%
Reuters Holdings ADR.......................... 3,400 214,200
Tribune Co.................................... 14,500 696,906
-------------
911,106
OFFICE FURNISHINGS & SUPPLIES -- 0.41%
Ikon Office Solutions, Inc.................... 13,500 336,656
OIL -- 2.20%
Mobil Corp.................................... 8,200 572,975
Royal Dutch Petroleum Co...................... 22,400 1,218,000
-------------
1,790,975
</TABLE>

See notes to the financial statements.

<PAGE> 158

T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
PAPER -- 0.80%
Kimberly Clark Corp........................... 13,100 $ 651,725
PETROLEUM SERVICES -- 1.35%
Halliburton Co................................ 4,200 332,850
Schlumberger Ltd.............................. 2,100 262,500
Western Atlas, Inc. (a)....................... 6,900 505,425
------------
1,100,775
POLLUTION CONTROL -- 0.44%
USA Waste Services, Inc. (a).................. 9,300 359,213
REAL ESTATE -- 0.80%
Starwood Lodging Trust Co..................... 15,200 648,850
RESTAURANTS -- 0.38%
Boston Chicken, Inc. (a)...................... 1,700 23,800
McDonald's Corp............................... 5,900 285,044
------------
308,844
RETAIL -- 3.97%
Circuit City Stores, Inc...................... 10,000 355,625
CVS Corp...................................... 4,336 222,220
Home Depot, Inc............................... 6,300 434,306
Kohl's Corp. (a).............................. 6,200 328,213
Safeway, Inc. (a)............................. 7,100 327,488
Tag Heuer International ADR (a)............... 61,900 932,369
Wal-Mart Stores, Inc.......................... 18,600 628,912
------------
3,229,133
SOFTWARE -- 4.52%
BMC Software, Inc. (a)........................ 17,600 974,600
Microsoft Corp. (a)........................... 8,600 1,086,825
Oracle Corp. (a).............................. 19,350 974,756
Parametric Technology Corp. (a)............... 15,000 638,438
------------
3,674,619
STEEL -- 0.07%
Pohang Iron & Steel Co. ADR................... 1,700 54,400
TELECOMMUNICATIONS -- 4.46%
Ascend Communications, Inc. (a)............... 6,600 259,875
Cox Communications, Inc. Class A (a).......... 14,400 345,600
Grupo Iusacell Series D ADR (a)............... 54,800 808,300
Lucent Technologies, Inc...................... 2,600 187,362
Telecomunicacoes Brasileiras ADR.............. 4,900 743,575
Vodafone Group PLC ADR........................ 12,400 600,625
Worldcom, Inc. (a)............................ 21,300 681,600
------------
3,626,937

<CAPTION>
SHARES MARKET VALUE
---------------- ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
TOBACCO -- 1.50%
Philip Morris Cos., Inc....................... 27,500 $ 1,220,313
TOYS -- 0.85%
Hasbro, Inc................................... 4,950 140,456
Mattel, Inc................................... 16,300 552,163
------------
692,619
TRANSPORTATION -- 0.49%
Tranz Rail Holdings Ltd. ADR (a).............. 23,700 399,938
------------
Total United States......................... 67,337,621
------------
Total Common Stock
(cost $65,440,540)......................... 76,180,719
------------

<CAPTION>
PRINCIPAL
AMOUNT
---------
SHORT TERM INVESTMENTS -- 6.25%
- -------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 6.02%
Archer Daniels Midland Co., 5.52%, 07/15/1997. $ 268,000 267,425
Chubb Capital Corp., 5.53%, 07/21/1997........ 545,000 543,326
Kellogg Co., 5.50%, 07/24/1997................ 719,000 716,473
Met Life Funding, Inc., 5.50%, 07/08/1997..... 149,000 148,841
Motorola Credit Corp., 5.50%, 08/18/1997...... 1,150,000 1,141,567
Pfizer, Inc., 5.52%, 08/05/1997............... 1,234,000 1,227,377
Preferred Receivables Funding Corp.,
5.57%, 07/02/1997............................ 199,000 198,969
5.58%, 08/04/1997............................ 656,000 652,543
------------
4,896,521
FOREIGN GOVERNMENT AGENCIES -- 0.18%
Western Australian Treasury, 5.50%, 07/11/1997 146,000 145,777
MONEY MARKET FUNDS -- 0.00%
State Street Global Advisor Fund 5.29%, (b)... 878 878
U.S. GOVERNMENT AGENCIES -- 0.05%
Federal National Mortgage Association,
5.45%, 09/08/1997............................ 10,000 9,895
U.S. Treasury Bill, 4.90%, 08/21/1997......... 29,000 28,799
------------
38,694
------------
Total Short Term Investments
(cost $5,081,870).......................... 5,081,870
------------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $70,522,410)........................... $81,262,589
============
</TABLE>

(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of June 30, 1997.

See notes to the financial statements.

<PAGE> 159
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997

<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ ---------------
COMMON STOCKS -- 92.60%
- -----------------------
<S> <C> <C>
ARGENTINA -- 0.21%
- ------------------
OIL -- 0.20%
Perez Companc Class B............................ 18,903 $ 151,815
TELECOMMUNICATIONS -- 0.01%
Telecom Argentina................................ 1,630 8,510
---------------
Total Argentina................................. 160,325
AUSTRALIA -- 1.70%
- ------------------
BANKS -- 0.42%
Australia & New Zealand Bank Group Ltd........... 7,000 52,373
Commonwealth Installment Receipt Trustee Ltd..... 10,300 90,647
National Australia Bank.......................... 5,113 73,303
St. George Bank Ltd.............................. 8,000 53,265
Westpac Banking Corp............................. 8,000 48,187
---------------
317,775
BROADCASTING -- 0.23%
Publishing & Broadcasting Ltd.................... 13,000 74,963
News Corp........................................ 20,330 97,564
---------------
172,527
BUILDING & CONSTRUCTION -- 0.04%
Boral Ltd........................................ 9,000 28,363
ELECTRIC UTILITIES -- 0.14%
Australia Gas & Light Co., Ltd................... 18,237 107,504
FINANCIAL SERVICES -- 0.16%
Lend Lease Corp.................................. 2,365 50,046
Tab Corp. Holdings Ltd........................... 12,000 65,297
---------------
115,343
INSURANCE -- 0.03%
National Mutual Holdings, Ltd.................... 15,000 24,260
LIQUOR -- 0.09%
Fosters Brewing Group, Ltd....................... 34,000 63,211
METALS & MINING -- 0.09%
WMC, Ltd......................................... 10,000 63,105
OIL -- 0.46%
Broken Hill Proprietary Co....................... 11,843 218,552
Woodside Petroleum, Ltd.......................... 14,000 120,618
---------------
339,170
PUBLISHING -- 0.04%
Fairfax (John) Holdings, Ltd..................... 12,000 28,477
---------------
Total Australia................................. 1,259,735

<CAPTION>
SHARES MARKET VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
AUSTRIA -- 0.02%
- ----------------
BUSINESS SERVICES -- 0.01%
Flughafen Wien AG................................ 190 $ 8,026
ENERGY -- 0.01%
EVN-Energie Versorgung Niederoesterreich AG...... 60 7,730
---------------
Total Austria................................... 15,756

BELGIUM -- 1.12%
- ----------------
BANKS -- 0.98%
Credit Communal Dexia............................ 545 58,545
Generale de Banque............................... 356 137,037
Kredietbank...................................... 1,320 531,962
---------------
727,544
BASIC INDUSTRY -- 0.14%
UCB.............................................. 33 104,558
---------------
Total Belgium................................... 832,102

BRAZIL -- 0.21%
- ---------------
BASIC INDUSTRY -- 0.05%
White Martins SA................................. 11,320,000 33,122
BROADCASTING -- 0.10%
Telecommunicacoes Brasileiras SA................. 562,439 76,277
ELECTRONICS -- 0.03%
Sider Nacional................................... 706,000 23,281
ENERGY -- 0.03%
Centrais Electricas Brasileiras SA (a)........... 42,330 23,671
---------------
Total Brazil.................................... 156,351

CANADA -- 0.27%
- ---------------
BASIC INDUSTRY -- 0.19%
Alcon Aluminium.................................. 4,160 142,789
FINANCIAL COMPANIES -- 0.18%
Royal Bank of Canada, Montreal................... 1,310 59,431
---------------
Total Canada.................................... 202,220

CZECHOSLOVAKIA -- 0.02%
- -----------------------
TELECOMMUNICATION SERVICES -- 0.02%
SPT Telecommunications AS........................ 130 13,633

DENMARK -- 0.17%
- ----------------
BANKS -- 0.16%
Den Danske Bank.................................. 800 77,832
Unidanmark....................................... 670 37,638
---------------
115,470
</TABLE>

See notes to the financial statements.

<PAGE> 160

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

SHARES MARKET VALUE
------------ ---------------

COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
DENMARK (CONTINUED)
- -------------------
TELECOMMUNICATIONS -- 0.01%
Tele Danmark Class B............................. 200 $ 10,392
---------------
Total Denmark................................... 125,862

FRANCE -- 8.08%
- ---------------
BANKS -- 0.26%
Dexia France..................................... 838 81,566
Societe Generale................................. 1,020 113,860
---------------
195,426
BROADCASTING -- 0.34%
Canal Plus....................................... 530 103,174
Societe Television Francaise 1................... 1,660 148,297
---------------
251,471
BUILDING & CONSTRUCTION -- 0.14%
GTM Entrepose.................................... 410 20,518
Lapeyre.......................................... 1,290 85,609
---------------
106,127
BUSINESS SERVICES -- 1.38%
Eaux (Cie Generale).............................. 7,750 993,032
Havas............................................ 400 28,826
---------------
1,021,858
CONGLOMERATES -- 0.02%
Chargeurs International.......................... 250 14,404
CONTAINERS & GLASS -- 0.33%
Compagnie de Saint Gobain........................ 1,650 240,620
DRUGS & HEALTH CARE -- 0.46%
L'Oreal.......................................... 162 68,255
Sanofi........................................... 2,779 272,381
---------------
340,636
ELECTRICAL EQUIPMENT -- 0.48%
Alcatel Alsthom.................................. 2,340 293,062
Legrand.......................................... 359 63,227
---------------
356,289
ELECTRONICS -- 0.35%
Schneider........................................ 4,916 261,665
GAS EXPLORATION -- 0.37%
Elf Aquitaine.................................... 2,530 272,946
INSURANCE -- 0.24%
AXA.............................................. 2,341 145,598
Assurances Generales de France................... 1,086 34,705
---------------
180,303

<CAPTION>
SHARES MARKET VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
FRANCE (CONTINUED)
- ------------------
LEISURE & RECREATION -- 0.67%
Accor............................................ 405 $ 60,646
Pathe (a)........................................ 370 73,412
Sodexho Alliance................................. 710 363,536
---------------
497,594
LIQUOR -- 0.67%
LVMH Luis Vuitton Moet-Hennessy.................. 1,835 493,355
OIL -- 0.83%
Primagaz (Cie Des Gaz Petrole)................... 755 66,806
Total Class B.................................... 5,437 549,556
---------------
616,362
PAPER -- 0.11%
Guilbert SA...................................... 598 84,662
RETAIL -- 1.37%
Carrefour Super Marche........................... 674 489,498
Pinault Printemps Redoute........................ 1,090 523,791
---------------
1,013,289
TRANSPORTATION -- 0.06%
Rexel............................................ 153 46,967
---------------
Total France.................................... 5,993,974

GERMANY -- 3.84%
- ----------------
AUTOMOBILES -- 0.20%
Buderus AG....................................... 78 42,933
Volkswagen AG.................................... 140 107,322
---------------
150,255
BANKS -- 0.56%
Bayerische Hypotheken - und Wechsel Gank AG...... 3,778 112,965
Commerzbank AG................................... 2,210 62,596
Deutsche Bank AG................................. 4,136 241,648
---------------
417,209
BASIC INDUSTRY -- 0.51%
Bayer AG......................................... 8,074 310,257
Hoechst AG....................................... 1,640 69,564
---------------
378,821
BUILDING & CONSTRUCTION -- 0.09%
Bilfinger & Berger Bau AG........................ 1,100 44,780
Hornback Baumarkt AG............................. 200 8,428
Praktiker Bau - und Heimwerkemaekte AG........... 629 11,180
---------------
64,388
DRUGS & HEALTH CARE -- 0.94%
Gehe AG.......................................... 7,164 488,800
Rhon Klinikum AG................................. 1,230 162,204
Schering AG...................................... 434 46,371
---------------
697,375
</TABLE>

See notes to the financial statements.

<PAGE> 161
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ -----------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
GERMANY (CONTINUED)
- -------------------
ELECTRIC UTILITIES -- 0.51%
Veba AG.......................................... 6,775 $ 380,684

INDUSTRIAL MACHINERY -- 0.24%
Mannesmann AG.................................... 238 106,030
Siemens AG....................................... 1,212 71,958
-----------
177,988
INSURANCE -- 0.35%
Allianz Holdings AG............................. 1,240 259,504

SOFTWARE -- 0.23%
SAP AG.......................................... 850 170,575

TELECOMMUNICATIONS -- 0.21%
Deutsche Telekom................................. 6,320 152,193
-----------
Total Germany.................................. 2,849,992

HONG KONG -- 3.43%
- ------------------
APPAREL & TEXTILES -- 0.03%
Yizheng Chemical Fiber Co., Ltd.................. 144,000 25,650

CONGLOMERATES -- 1.36%
First Pacific Co. ............................... 149,315 190,804
Hutchinson Whampoa, Ltd.......................... 55,000 475,650
Swire Pacific.................................... 38,000 342,119
-----------
1,008,573
ELECTRIC UTILITIES -- 0.10%
China Light & Power.............................. 13,000 73,664

FINANCE SERVICES -- 0.53%
Dao Heng Bank Group, Ltd......................... 31,000 169,659
Guoco Group, Inc. ............................... 43,000 226,453
-----------
396,112
OIL -- 0.06%
Shanghai Petrochemical Co., Ltd. Class H.......... 180,000 43,215

REAL ESTATE -- 1.17%
New World Development Co., Ltd.................... 87,034 519,016
Wharf Holdings.................................... 81,000 351,297
-----------
870,313
TRANSPORTATION -- 0.18%
Cathay Pacific Air................................ 63,000 130,517
-----------
Total Hong Kong................................. 2,548,044

ITALY -- 2.18%
- --------------
BANKS -- 0.36%
Banca Commerciale Italiana........................ 14,000 28,996

<CAPTION>
MARKET
SHARES VALUE
------------ --------

COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
ITALY (CONTINUED)
- -----------------
BANKS (CONTINUED)
Banca Fideuram................................... 21,040 $ 68,769
Credito Italiano................................. 90,833 166,213
-----------
263,978
FINANCIAL COMPANIES -- 0.25%
IMI Spa.......................................... 10,040 90,383
Mediolanum....................................... 8,108 91,453
-----------
181,836
GAS EXPLORATION -- 0.40%
Ente Nazionale Idrocarburi Spa (ENI)............. 52,818 299,119

GAS & PIPELINE UTILITIES -- 0.04%
Ital Gas (Societa Italiana II Gas) Spa........... 10,000 32,361

PUBLISHING -- 0.02%
Seat SPA RNC (a)................................. 13,000 2,715
Seat SPA (a)..................................... 38,000 12,252
----------
14,967
RETAIL -- 0.02%
La Rinascente.................................... 3,000 16,672

TELECOMMUNICATIONS -- 1.09%
Stet Societa' Finanziaria Telefonica............. 51,000 297,075
Telecom Italia Mobile............................ 10,797 19,312
Telecom Italia Mobile............................ 112,601 364,389
Telecom Italia SPA............................... 42,979 128,717
----------
809,493
----------
Total Italy.................................... 1,618,426

JAPAN -- 22.66%
- ---------------

AUTOMOBILES -- 0.08%
Honda Motor Co................................. 2,000 60,199

AUTOMOBILE PARTS -- 0.90%
Denso Corp..................................... 28,000 669,342

BUILDING & CONSTRUCTION -- 0.91%
Daiwa House Industry Co.......................... 24,000 293,142
Inax Corp........................................ 5,000 37,428
Kumagai Gumi..................................... 10,000 16,664
National House Industrial........................ 3,000 39,522
Nippon Hodo...................................... 3,000 25,938
Sekisui House.................................... 14,000 141,686
Sumitomo Forestry Co., Ltd....................... 11,000 120,921
----------
675,301
BUSINESS SERVICES -- 0.65%
Kokuyo Co........................................ 9,000 243,413
Toppan Printing Co............................... 15,000 235,561
----------
478,974

</TABLE>

See notes to the financial statements.

<PAGE> 162

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------- ------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
JAPAN (CONTINUED)
- -----------------
CHEMICALS -- 1.41%
Kuraray Co....................................... 16,000 $ 159,134
Mitsui Petrochemical Industries.................. 5,000 24,080
Sekisui Chemical Co., Ltd........................ 25,000 253,010
Shin-Etsu Chemical Co............................ 15,000 397,836
Teijin........................................... 45,000 212,005
-------------
1,046,065
CONSUMER PRODUCTS -- 0.28%
Kao Corp......................................... 15,000 208,079

DRUGS & HEALTH CARE -- 1.45%
Daiichi Pharmecutical Co......................... 19,000 334,846
Sankyo Co........................................ 20,000 671,785
Shiseido Co...................................... 4,000 65,957
-------------
1,072,588
ELECTRICAL EQUIPMENT -- 2.80%
Hitachi, Ltd..................................... 31,000 346,187
Makita Corp...................................... 13,000 190,543
NEC Corp......................................... 56,000 781,713
Sumitomo Electric Industires, Ltd................ 44,000 737,044
Yurtec Corp...................................... 2,100 24,367
-------------
2,079,854
ELECTRONICS -- 3.13%
Advantest........................................ 1,210 92,898
Alps Electric Co................................. 6,000 83,755
Dai Nippon Screen Manufacturing.................. 14,000 131,914
Fanuc Co., Ltd................................... 3,900 149,712
Kyocera Corp..................................... 10,000 793,928
Murata Manufacturing Co., Ltd.................... 10,000 397,836
TDK Corp......................................... 7,000 513,610
Tokyo Electron, Ltd.............................. 3,300 157,774
-------------
2,321,427
FINANCIAL COMPANIES -- 0.48%
Nomura Securities Co., Ltd....................... 26,000 358,402

HOUSEHOLD APPLIANCES -- 2.56%
Matsushita Electric Industrial Co................ 30,000 604,606
Pioneer Electronic Corp.......................... 11,000 266,795
Sangetsu Co...................................... 1,000 21,288
Sharp Corp....................................... 26,000 358,402
Sony Corp........................................ 7,400 644,966
--------------
1,896,057
INDUSTRIAL MACHINERY -- 1.82%
Amada Co., Ltd................................... 16,000 140,988
Daifuku Co. Ltd.................................. 2,000 26,348

Hitachi Zosen Corp............................... 24,000 95,481
Ishihara Sangyo Kaisha (a)....................... 6,000 17,746
Komatsu, Ltd..................................... 24,000 194,730
Komori Corp...................................... 8,000 189,845
Mitsubishi Heavy Industires, Ltd................. 89,000 682,525
-------------
1,347,663
<CAPTION>
MARKET
SHARES VALUE
------ ------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
JAPAN (CONTINUED)
- -----------------
INSURANCE -- 0.01%
Tokio Marine & Fire Insurance Co................. 6,000 $ 78,520

LEISURE & RECREATION -- 0.09%
Sega Enterprises................................. 2,000 66,306

PAPER -- 0.04%
Mitsubishi Paper Mills, Ltd...................... 8,000 31,269

PHOTOGRAPHY -- 1.17%
Canon, Inc....................................... 32,000 871,052

REAL ESTATE -- 0.85%
Mitsui Fudosan Co................................ 46,000 634,095

RETAIL -- 2.33%
Citizen Watch Co................................. 7,000 53,987
Ito-Yokado Co.................................... 7,000 406,125
Marui Co., Ltd................................... 19,000 353,080
Mitsubishi Corp.................................. 16,000 199,616
Seven Eleven Japan Co., Ltd...................... 3,000 226,662
Sumitomo Corp.................................... 35,000 332,839
UNY Co........................................... 8,000 156,343
-------------
1,729,652
STEEL -- 0.59%
Kawada Industries................................ 1,000 4,484
Nippon Steel Corp................................ 114,000 364,020
Tokyo Steel Manufacturing........................ 6,000 67,004
-------------
435,508
TELECOMMUNICATIONS -- 0.68%
DDI Corp......................................... 36 265,713
Nippon Telephone & Telegraph Corp................ 25 239,923
-------------
505,636
TRANSPORTATION -- 0.33%
East Japan Railway............................... 47 241,110
-------------
Total Japan.................................... 16,806,099

MALAYSIA -- 1.75%
- -----------------
CONGLOMERATES -- 0.33%
Multi Purpose Holding Berhad..................... 53,000 74,335
Renong Berhad.................................... 130,000 169,968
--------------
244,303
ELECTRICAL EQUIPMENT -- 0.05%
Technology Resources Industries Berhad (a)....... 23,000 39,548

FINANCIAL COMPANIES -- 0.24%
Affin Holdings Berhad............................ 30,000 71,316
Commerce Asset Holdings Berhad................... 40,000 105,388
--------------
176,704

</TABLE>
See notes to the financial statements.

<PAGE> 163

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

SHARES MARKET VALUE
------ ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
MALAYSIA (CONTINUED)
INDUSTRIAL MACHINERY -- 0.57%
Time Engineering Berhad.......................... 23,000 $ 34,810
United Engineers Berhad.......................... 54,000 389,382
-----------
424,192

LEISURE & RECREATION -- 0.32%
Berjaya Sports Toto Berhad....................... 37,000 174,445
Resorts World Berhad............................. 21,000 63,232
-----------
237,678

MINING -- 0.24%
Tanjong.......................................... 51,000 175,792
-----------
Total Malaysia................................... 1,298,217

MEXICO -- 0.50%
BANKS -- 0.06%
Grupo Financiero Bancomer Series B (a)........... 14,288 36,675
Grupo Financiero Bancomer Series L............... 465 1,100
-----------
37,775

BASIC INDUSTRY -- 0.10%
Cemex SA......................................... 12,063 52,365
Cemex SA Class B................................. 4,950 24,104
-----------
76,469

FOOD & BEVERAGES -- 0.11%
Fomento Economico Mexicano Class A............... 4,629 27,550
Gruma SA de CV Series B.......................... 11,762 54,759
-----------
82,309

HOUSEHOLD PRODUCTS -- 0.11%
Kimberly Clark Mexicano Class A.................. 20,211 81,378

INDUSTRIAL MACHINERY -- 0.04%
Grupo Industrial Maseca SA De Cv Class B......... 28,800 31,527

LIQUOR -- 0.08%
Grupo Modelo SA Class C.......................... 8,844 61,315
-----------
Total Mexico................................... 370,773

NETHERLANDS -- 9.72%
BANKS -- 0.44%
ABN Amro Holdings NV............................. 17,500 326,303

CHEMICALS -- 0.08%
Akzo Nobel NV.................................... 458 62,765

CONGLOMERATES -- 0.07%
Koninkliijke Pitt Nederland NV................... 1,407 55,193

CONSUMER PRODUCTS -- 0.09%
Hagemeyer NV..................................... 1,252 64,676

SHARES MARKET VALUE
------ ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
NETHERLANDS (CONTINUED)
ELECTRICAL EQUIPMENT -- 0.01%
Otra NV.......................................... 670 $ 10,752

FINANCIAL COMPANIES -- 1.35%
Fortis AMEV NV................................... 5,125 228,196
Internationale Nederlanden Groep NV.............. 16,810 775,029
-----------
1,003,225

FOOD & BEVERAGES -- 0.55%
CSM NV........................................... 5,676 284,537
Koninklijke Nutricia Verenigde Bedrijven NV...... 770 121,606
-----------
406,143

HOUSEHOLD PRODUCTS -- 0.69%
Unilever NV...................................... 2,430 511,527

LEISURE & RECREATION -- 0.67%
Polygram NV...................................... 9,407 493,617

OIL -- 2.38%
Royal Dutch Petroleum Co. NV..................... 33,960 1,766,425

PUBLISHING -- 2.90%
Elsevier NV...................................... 53,329 891,126
Wolters Kluwer NV................................ 10,324 1,257,036
-----------
2,148,162

RETAIL -- 0.49%
Koninklijke Ahold NV............................. 4,309 363,529
-----------
Total Netherlands.............................. 7,212,317

NEW ZEALAND -- 0.46%
BUILDING CONSTRUCTION -- 0.17%
Fletcher Challange Building (a).................. 22,050 66,350
Fletcher Challange Forest Division............... 41,365 60,128
-----------
126,478

ENERGY -- 0.01%
Fletcher Challange Energy........................ 1,750 5,290

PAPER -- 0.07%
Carter Holt Harvey............................... 9,400 24,326
Fletcher Challange Paper (a)..................... 10,500 25,462
-----------
49,788

TELECOMMUNICATIONS -- 0.09%
Telecom Corp. of New Zealand, Ltd................ 14,000 71,321

TRANSPORTATION -- 0.12%
Air New Zealand.................................. 20,909 63,911
Tranz Rail Holdings.............................. 4,000 22,823
-----------
86,734
-----------
Total New Zealand.............................. 339,611

</TABLE>

See notes to the financial statements.

<PAGE> 164

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
NORWAY -- 1.61%
- ---------------
CONGLOMERATES -- 0.67%

Orkla AS......................................... 6,740 $ 497,509

ENERGY -- 0.92%
Norsk Hydro AS................................... 12,140 660,899
Saga Petroleum AS Class B........................ 1,190 20,782
---------------
681,681
TRANSPORTATION -- 0.02%
Bergesen D-Y AS.................................. 650 15,387
---------------
Total Norway.................................... 1,194,577

PHILLIPINES -- 0.24%
- --------------------
BANKS -- 0.13%
Philippine National Bank......................... 13,612 92,378

TELECOMMUNICATIONS -- 0.11%
Philippine Long Distance Telephone Co............ 2,600 84,281
---------------
Total Philippines............................... 176,659

PORTUGAL -- 0.38%
- -----------------
RETAIL -- 0.38%
Jeronimo Martins SGPS............................ 3,999 279,346

SINGAPORE -- 1.81%
- ------------------
BANKS -- 0.86%
Development Bank of Singapore.................... 6,000 75,540
Overseas Chinese Bank............................ 4,800 49,689
Overseas Union Bank.............................. 33,000 205,428
United Overseas Bank............................. 30,000 308,456
---------------
639,113
CONGLOMERATES -- 0.02%
United Industrial Corp........................... 22,000 16,619

FOOD & BEVERAGES -- 0.11%
Fraser & Neave................................... 11,400 81,332

INDUSTRIAL MACHINERY -- 0.02%
Keppel Corp...................................... 2,000 8,883
Keppel Corp. Class A............................. 500 2,168
---------------
11,051
PUBLISHING -- 0.34%
Singapore Press Holdings, Ltd.................... 12,400 249,787

REAL ESTATE -- 0.46%
City Developments................................ 8,000 78,338
DBS Land......................................... 23,000 72,714
Singapore Land................................... 31,000 140,939
Wing Tai Holdings................................ 18,000 51,871
---------------
343,862
---------------
Total Singapore................................. 1,341,764

COMMON STOCKS (CONTINUED)
- -------------------------
SHARES MARKET VALUE
------------ ---------------
<S> <C> <C>

SOUTH KOREA -- 0.48%
- --------------------
BANKS -- 0.09%
Kook Min Bank.................................... 2,202 $ 31,493
Shinhan Bank..................................... 2,840 35,180
---------------
66,673
ELECTRICAL EQUIPMENT -- 0.17%
Samsung Electronics.............................. 1,600 127,027

ELECTRIC UTILITIES -- 0.15%
Korea Electric Power Corp........................ 3,600 107,432

STEEL -- 0.07%
Pohang Iron & Steel.............................. 700 50,135
---------------
Total South Korea............................... 351,267

SPAIN -- 2.03%
- --------------
BANKS -- 0.79%
Argentaria Corp. SA.............................. 1,205 67,467
Banco Bilbao Vizcaya SA.......................... 910 73,924
Banco Popular Espanol SA......................... 614 150,427
Banco Santander SA............................... 9,642 297,080
---------------
588,898
OIL -- 0.16%
Respol SA........................................ 2,882 121,852

RETAIL -- 0.05%
Centros Comerciales Pryca SA..................... 1,524 32,993

TELECOMMUNICATIONS -- 0.32%
Telefonica de Espana SA.......................... 8,191 236,808

UTILITIES -- 0.71%
Aguas de Barcelona SA............................ 9 363
Empressa Nacional de Electricid SA............... 2,292 192,413
Gas Natural SDG SA............................... 738 161,223
Iberdrola SA..................................... 13,608 171,774
---------------
525,773
---------------
Total Spain..................................... 1,506,324

SWEDEN -- 2.59%
- ---------------
BANKS -- 0.13%
Nordbanken AB.................................... 2,910 98,185

BUSINESS SERVICES -- 0.02%
Esselte AB Class B............................... 560 13,175

CONSTRUCTION & MINING EQUIPMENT -- 0.32%
ABB AB........................................... 8,300 116,418
Atlas Copco AB................................... 4,770 124,561
---------------
240,979
DRUGS & HEALTH CARE -- 0.95%
Astra AB......................................... 39,893 703,949
</TABLE>

See notes to the financial statements.

<PAGE> 165

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
SHARES MARKET VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
SWEDEN (CONTINUED)
- ------------------
HOUSEHOLD APPLIANCES -- 0.39%
Electrolux AB.................................... 3,980 $ 287,097

METALS & MINING -- 0.32%
Granges AB....................................... 1,990 26,369
Sandvik AB Class A............................... 560 15,890
Sandvik AB Class B............................... 6,830 193,806
---------------
236,065
OFFICE FURNITURE & SUPPLIES -- 0.01%
Scribona AB...................................... 750 8,726

RETAIL -- 0.45%
Hennes & Mauritz AB Class B...................... 9,500 334,044
---------------
Total Sweden.................................... 1,922,220

SWITZERLAND -- 5.98%
- --------------------
BANKS -- 0.41%
Credit Suisse Group AG........................... 850 109,161
Schweizerischer Bankverein AG.................... 720 192,575
---------------
301,736
BUSINESS SERVICES -- 0.56%
Adecco SA (a).................................... 1,073 411,562

CHEMICALS -- 0.07%
Ciba Specialty Chemicals AG (a).................. 543 50,209

DRUGS & HEALTH CARE -- 3.10%
Novartis AG...................................... 873 1,395,604
Roche Holdings AG................................ 100 904,452
---------------
2,300,056
ELECTRICAL EQUIPMENT -- 0.83%
ABB AG........................................... 407 616,075

FOOD & BEVERAGES -- 1.01%
Nestle SA........................................ 570 751,932
---------------
Total Switzerland............................... 4,431,570

THAILAND -- 0.11%
- -----------------
BANKS -- 0.04%
Bangkok Bank Ltd................................. 4,700 32,295

BUILDING & CONSTRUCTION -- 0.05%
Siam Cement Public Co............................ 1,900 32,858

BUSINESS SERVICES -- 0.02%
Advanced Information Service Public Co., Ltd..... 2,540 16,865
---------------
Total Thailand.................................. 82,018

<CAPTION>
SHARES MARKET VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>

UNITED KINGDOM -- 15.57%
- ------------------------

APPAREL & TEXTILES -- 0.03%
Coats Viyella PLC................................ 12,000 $ 25,179

AUTOMOBILES -- 0.04%
Rolls-Royce PLC.................................. 7,000 26,695

BANKS -- 2.16%
Abbey National PLC............................... 24,000 327,731
National Westminster Bank PLC.................... 95,000 1,277,494
---------------
1,605,225
BUILDING & CONSTRUCTION -- 0.07%
Laing (John) PLC................................. 7,000 43,481
Heywood Williams Group PLC....................... 3,000 10,242
---------------
53,723
CONGLOMERATES -- 1.41%
Grand Metropolitan PLC........................... 64,000 616,028
Tomkins PLC...................................... 98,000 424,319
---------------
1,040,347
CONTAINERS & GLASS -- 0.17%
Caradon PLC...................................... 37,800 126,526

DRUGS & HEALTH CARE -- 3.04%
Glaxo Wellcome PLC............................... 37,000 765,581
SmithKline Beecham PLC........................... 80,700 1,485,679
---------------
2,251,260
ELECTRONICS -- 0.15%
Electrocomponents PLC............................ 15,000 111,658

FOOD & BEVERAGES -- 1.07%
Cadbury Schweppes PLC............................ 33,000 294,558
Guinness PLC..................................... 48,000 470,015
Hillsdown Holdings PLC........................... 11,000 31,050
---------------
795,623
GAS & PIPELINE UTILITIES -- 0.07%
British Gas PLC.................................. 14,000 51,291

HOTELS & RESTAURANTS -- 0.13%
Ladbroke Group PLC............................... 24,000 94,323

INDUSTRIAL MACHINERY -- 0.15%
GKN PLC.......................................... 2,000 34,305
T&N PLC.......................................... 31,000 73,823
---------------
108,128
LEISURE & RECREATION -- 0.50%
Compass Group PLC................................ 19,000 212,626
Rank Group PLC................................... 25,000 158,412
---------------
371,038
MINING -- 0.54%
Rio Tinto........................................ 23,000 400,830
</TABLE>

See notes to the financial statements.

<PAGE> 166

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------------ -----------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>

UNITED KINGDOM (CONTINUED)
- --------------------------
OIL -- 1.55%
British Petroleum PLC............................ 21,000 $ 261,236
Shell Transport & Trading Co..................... 130,500 891,019
-----------
1,152,255
PAPER -- 0.11%
David S. Smith Holdings.......................... 25,000 78,269

PUBLISHING -- 1.86%
Reed International PLC........................... 96,000 927,240
United Newspapers & Media PLC.................... 39,000 452,354
-----------
1,379,594
RETAIL -- 1.91%
Argos PLC........................................ 23,200 210,561
ASDA Group....................................... 84,000 173,458
Kingfisher PLC................................... 55,000 624,654
Safeway PLC...................................... 37,000 214,116
Sears Holdings PLC............................... 8,000 9,059
Tesco PLC........................................ 30,000 185,348
-----------
1,417,196
TELECOMMUNICATION SERVICES -- 0.59%
Cable & Wireless PLC............................. 48,000 439,639

UTILITIES -- 0.02%
Centrica PLC..................................... 14,000 17,019
-----------
Total United Kingdom............................. 11,545,818

UNITED STATES -- 5.46%
- ----------------------

APPAREL & TEXTILES -- 0.13%
Gucci Group NV N.Y............................... 1,553 99,974

BANKS -- 0.18%
Banco de Galicia Buenos Aires Class B ADR........ 1,571 41,699
Banco Frances del Rio La Plata ADR............... 2,147 69,778
Banco Latinoamericano de Exportaciones SA ADR.... 477 20,571
-----------
132,048
BROADCASTING -- 0.02%
Grupo Television SA de CV ADR.................... 531 16,129

BUILDING & CONSTRUCTION -- 0.16%
Cemex SA ADR..................................... 13,410 116,322

CONTAINERS & GLASS -- 0.02%
Compania Cervecerias Unidas ADR.................. 530 11,627

ELECTRIC UTILITIES -- 0.78%
Centrais Electricas Brasileiras ADR.............. 5,000 139,799
Chilectra SA ADR................................. 1,400 40,293
Chilenger SA ADR................................. 604 16,912
Companhia Energetica De Minas Gerais ADR......... 2,595 130,648
Empresa Nacional Electricidad ADR................ 3,254 73,418

<CAPTION>
MARKET
SHARES VALUE
------------ ----------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>

UNITED STATES (CONTINUED)
- -------------------------

ELECTRIC UTILITIES (CONTINUED)
- ------------------------------
Enersis SA ADR................................... 1,180 $ 41,964
Huaneng Power International, Inc. ADR (a)........ 5,400 137,700
-----------
580,734
ELECTRONICS -- 0.13%
Samsung Electronics Ltd. (144a).................. 1,674 97,092

FINANCIAL SERVICES -- 0.26%
Administradora de Fondas de Pensiones
Provida ADR...................................... 178 3,894
Chile Fund, Inc.................................. 1,320 34,485
Cifra SA de CV ADR............................... 72,603 133,248
Creditcorp Ltd................................... 1,080 23,760
Korea Fund, Inc.................................. 70 1,032
-----------
196,419
FOOD & BEVERAGES -- 0.40%
Gruma SA de CV ADR (144a) (a).................... 3,057 56,876
Panamerican Beverages, Inc. Class A.............. 4,840 159,115
-----------
293,770
GAS EXPLORATION -- 0.03%
Companhia Energetica de Sao Paulo ADR (144a)..... 1,050 21,067

GAS & PIPELINE UTILITIES -- 0.01%
Transportadora de Gas del Sur ADR................ 600 7,500

HOUSEHOLD APPLIANCES -- 0.06%
Industrie Natuzzi SPA ADR........................ 1,810 46,381

OIL & GAS -- 0.17%
YPF Sociedad Anonima ADR......................... 4,166 128,105

REAL ESTATE -- 0.40%
Hong Kong Land Holdings.......................... 105,908 281,715
Sociedad Comercial del Plata ADR (144a) (a)...... 500 16,702
-----------
298,417
RETAIL -- 0.04%
Santa Isabel SA ADR.............................. 959 30,928

SOFTWARE -- 0.12%
Baan Co. (a)..................................... 1,250 86,094

TELECOMMUNICATIONS -- 2.55%
Compania Anonima Nacional Telefonos de Venezuela
ADR (a)........................................ 960 41,400
Compania De Telecomunicaciones de Chile ADR...... 2,195 72,435
Telecom Argentina Stet France ADR................ 180 9,450
Telecomunicacoes Brasileiras ADR................. 8,422 1,278,038
Telefonica de Argentina ADR...................... 3,640 126,035
Telefonica del Peru ADR.......................... 1,717 44,964
Telefonos de Mexico ADR.......................... 6,615 315,866
-----------
1,888,188
-----------

</TABLE>

See notes to the financial statements.

<PAGE> 167

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

SHARES MARKET VALUE
------------ ---------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
UNITED STATES (CONTINUED)
- -------------------------
Total United States.............................. $ 4,050,795
---------------
Total Common Stocks
(cost $58,095,508)............................. 68,685,795
---------------
RIGHTS & WARRANTS -- 0.01%
- --------------------------

BELGIUM -- 0.00%
- ----------------
BANKS -- 0.00%
Generale De Banque (a)........................... 26 12

BRAZIL -- 0.00%
- ---------------
BANKS -- 0.00%
Uniiao de Bancos Brasileiros SA (a).............. 153,825 0

MALAYSIA -- 0.00%
- -----------------
FINANCIAL SERVICES -- 0.00%
Commerce Asset Holdings.......................... 8,000 285
Commerce Asset Holdings.......................... 5,000 773
---------------
1,058
SINGAPORE -- 0.01%
- ------------------
BANKS -- 0.01%
Overseas Union Bank.............................. 6,600 8,817

SOUTH KOREA -- 0.00%
- --------------------
ELECTRONICS -- 0.00%
Samsung Electronics.............................. 1,600 743
---------------
Total Rights & Warrants
(cost $13,926)................................
10,630
---------------
PREFERRED STOCK -- 2.61%
- ------------------------
AUSTRALIA -- 0.07%
- ------------------
Sydney Harbor Casino Holdings (a)................. 31,000 48,731

BRAZIL -- 1.82%
- ---------------
Banco BradescoSA................................. 10,019,953 100,986
Banco Itau SA.................................... 46,000 25,766
Brasmotor SA..................................... 82,150 18,314
Companhia Cervejaria Brahma...................... 181,043 137,899
Companhia Cimento Partland Itau.................. 73,000 25,090
Companhia de Tecidos Norte de Mina............... 55,000 21,457
Companhia Energetica de Minas Gerais............. 3,311,597 170,725
Lojas Americanas................................. 815,665 11,062
Petrol Brasileiros SA............................ 550,745 152,969
Telecommunicacoes Brasileiras SA................. 1,751,910 265,744
Telecommunicacoes de Rio de Janiero SA........... 165,546 25,527
Telecommunicacoes de Minas Gerais................ 159,959 25,305

<CAPTION>
SHARES MARKET VALUE
------------ ---------------
PREFERRED STOCKS (CONTINUED)
- ----------------------------
<S> <C> <C>
BRAZIL (CONTINUED)
- ------------------
Telecommunicacoes de Sao Paulo................... 712,142 $ 232,519
Uniiao de Bancos Brasileiros SA.................. 3,055,333 112,075
Usinas Siderurgicas de Minas Gerais ADR.......... 2,288 25,487
---------------
Total Brazil................................... 1,353,925

FINLAND -- 0.24%
- ----------------
Nokia AB Series A................................ 2,350 175,546

GERMANY -- 0.24%
- ----------------
Fielmann AG...................................... 336 10,076
Hornbach Holdings AG............................. 510 43,277
Krones AG........................................ 70 28,576
Sap AG........................................... 467 96,929
---------------
Total Germany.................................. 178,858

UNITED STATES -- 0.24%
- ----------------------
Usinas Siderurgicas de Minas Gerais ADR........... 16,320 177,895
---------------
Total Preferred Stocks
(cost $1,510,853)............................. 1,934,955
---------------
<CAPTION>
PRINCIPAL
AMOUNT
------------
<S> <C> <C>
CORPORATE BONDS -- 0.04%
- ------------------------
MALAYSIA -- 0.04%
- -----------------
CAPITAL GOODS -- 0.04%
Multi Purpose Holdings
3.00%, 11/13/2001............................... $ 86,000 28,962
Renong Berhard
4.00%, 05/22/2001............................... 3,288 2,599
---------------
Total Corporate Bonds
(cost $37,374)................................ 31,561
---------------
SHORT TERM INVESTMENTS -- 4.74%
- -------------------------------
MONEY MARKET FUNDS -- 4.74%
State Street Global Advisor Money Market Fund
5.29% (b)....................................... 1,332,327 1,332,327
State Street Global Advisor Government Fund
5.16% (b) (b)................................... 2,184,886 2,184,886
---------------
Total Short Term Investments
(cost $3,517,213)............................. 3,517,213
---------------
TOTAL INVESTMENTS -- 100%
- -------------------------
(cost $63,174,874)............................... $ 74,180,154
===============
</TABLE>
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of June 30, 1997.

See notes to the financial statements.

72
<PAGE> 168
T. ROWE PRICE/JNL MID-CAP GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1996

<TABLE>
<CAPTION>
SHARES MARKET VALUE
------ ------------
COMMON STOCKS -- 89.79%
- -----------------------
<S> <C> <C>
AEROSPACE & AIRCRAFT -- 2.70%
BE Aerospace, Inc. (a)......................... 45,000 $ 1,423,125
OEA, Inc....................................... 27,000 1,066,500
-----------
2,489,625
APPAREL & TEXTILES -- 1.93%
Warnaco Group, Inc............................. 56,000 1,785,000

AUTOMOBILES & PARTS -- 1.76%
Danaher Corp................................... 32,000 1,626,000

BROADCASTING -- 1.64%
Comcast Corp................................... 44,000 940,500
Jacor Communications, Inc. (a)................. 15,000 573,750
-----------
1,514,250

BUILDING & CONSTRUCTION -- 0.64%
Fastenal Co.................................... 12,000 588,000

BUSINESS SERVICES -- 11.10%
Accustaff, Inc. (a)............................ 36,000 852,750
ADVO, Ltd...................................... 16,000 260,000
Catalina Marketing Corp. (a)................... 26,500 1,275,312
CUC International, Inc. (a).................... 38,400 991,200
Gartner Group, Inc. (a) 39,000 39,000 1,401,562
Gymboree Corp. (a)............................. 44,000 1,056,000
Interim Services, Inc. (a)..................... 34,000 1,513,000
National Data Corp............................. 22,000 952,875
Outdoor Systems, Inc. (a)...................... 24,300 929,475
Sungard Data Systems, Inc. (a)................. 22,000 1,023,000
-----------
10,255,174

CHEMICALS -- 1.47%
Great Lakes Chemical Corp...................... 26,000 1,361,750

COMPUTERS & BUSINESS EQUIPMENT -- 4.29%
Affiliated Computer Services, Inc. (a)......... 36,000 1,008,000
BDM International, Inc. (a).................... 37,000 851,000
Checkfree Corp. (a)............................ 31,000 546,375
DST Systems, Inc. (a).......................... 30,700 1,022,694
Network General Corp. (a)...................... 36,000 535,500
-----------
3,963,569

DRUGS & HEALTH CARE -- 11.65%
Apria Healthcare Group, Inc. (a)............... 9,100 161,525
Biogen, Inc. (a)............................... 27,000 914,625
Cardinal Health, Inc........................... 15,000 858,750
Covance, Inc. (a).............................. 56,000 1,081,500
General Nutrition Cos., Inc. (a)............... 47,000 1,316,000
Gilead Sciences, Inc. (a)...................... 34,000 939,250
Polymer Group, Inc. (a)........................ 21,000 338,625
Quest Diagnostics, Inc. (a).................... 51,000 1,048,688
Quorum Health Group, Inc. (a).................. 33,000 1,179,750
St. Jude Medical, Inc.......................... 25,000 975,000
Sybron International Corp. (a)................. 35,000 1,395,625
US Surgical Corp............................... 14,800 551,300
-----------
10,760,638

<CAPTION>
SHARES MARKET VALUE
------ ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
ELECTRICAL EQUIPMENT -- 0.47%
Anixter International, Inc. (a)................ 25,000 $ 429,687

ELECTRONICS -- 3.88%
Analog Devices, Inc. (a)....................... 28,000 743,750
Maxim Integrated Products, Inc. (a)............ 15,000 853,125
Teleflex, Inc.................................. 40,000 1,250,000
Xilinx, Inc. (a)............................... 15,000 735,938
-----------
3,582,813

FINANCIAL SERVICES -- 4.82%
Corporate Express, Inc. (a).................... 66,000 952,875
Fairfax Financial Holdings, Ltd................ 3,300 955,864
Mercury Finance Co. (a)........................ 33,000 80,437
Money Store, Inc............................... 41,000 1,176,188
Partner Re, Ltd. 34,000 34,000 1,296,250
-----------
4,461,614

FOOD & BEVERAGES -- 2.32%
JP Foodservice, Inc............................ 46,000 1,319,625
Outback Steakhouse, Inc. (a)................... 34,000 822,375
-----------
2,142,000

FUNERAL SERVICES -- 1.23%
Stewart Enterprises............................ 27,000 1,134,000

GAS & PIPELINE UTILITIES -- 1.37%
Cooper Cameron Corp. (a)....................... 27,000 1,262,250

GAS EXPLORATION -- 1.07%
Weatherford Enterra, Inc. (a).................. 25,600 985,600

GOLD -- 2.50%
Battle Mountain Gold Co........................ 141,000 801,937
Cambior, Inc................................... 68,000 769,250
TVX Gold, Inc.................................. 139,000 738,438
-----------
2,309,625

HOTELS & RESTAURANTS -- 2.73%
Boston Chicken, Inc............................ 34,100 477,400
Hospitality Franchise Systems, Inc. (a)........ 13,000 754,000
La Quinta Inns, Inc............................ 59,000 1,290,625
-----------
2,522,025

INDUSTRIAL MACHINERY -- 1.80%
Trimas Corp.................................... 59,000 1,659,375

INSURANCE -- 3.95%
Ace Ltd........................................ 25,000 1,846,875
Nationwide Financial Services, Inc............. 35,000 929,687
PMI Group, Inc................................. 14,000 873,250
-----------
3,649,812
INVESTMENT COMPANIES -- 1.57%
Franklin Resources, Inc. ...................... 20,000 1,451,250

</TABLE>
See notes to the financial statements.

<PAGE> 169

T. ROWE PRICE/JNL MID-CAP GROWTH SERIES

SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED)

<TABLE>
<Caption
SHARES MARKET VALUE
------ ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
LEISURE TIME -- 1.15%
Royal Carribean Cruises, Ltd................... 30,500 $ 1,065,594

OFFICE FURNISHINGS & SUPPLIES -- 2.06%
American Pad & Paper Co. (a)................... 42,000 708,750
Ikon Office Solutions, Inc..................... 48,000 1,197,000
-----------
1,905,750

PETROLEUM SERVICES -- 4.12%
Camco International, Inc....................... 27,000 1,478,250
Smith International, Inc. (a).................. 25,000 1,518,750
United Meridian Corp. (a)...................... 27,000 810,000
-----------
3,807,000

POLLUTION CONTROL -- 2.06%
Culligan Water Technologies, Inc. (a).......... 9,200 411,700
Republic Industries, Inc....................... 21,000 522,375
USA Waste Services, Inc. (a)................... 25,000 965,625
-----------
1,899,700

RETAIL -- 7.49%
Circuit City Stores, Inc....................... 32,000 1,138,000
Costco Cos., Inc. (a).......................... 29,000 953,375
Kohls Corp. (a)................................ 18,000 952,875
MSC Industrial Direct, Inc..................... 23,800 954,975
Richfood Holdings, Inc......................... 39,000 1,014,000
Shopko Stores, Inc............................. 32,000 816,000
Waban, Inc..................................... 34,000 1,094,375
-----------
6,923,600

SOFTWARE -- 3.54%
BMC Software, Inc. (a)......................... 19,000 1,052,125
Intuit, Inc. (a)............................... 16,000 367,000
Platinum Technology, Inc. (a).................. 31,000 410,750
Sterling Communications, Inc. (a).............. 17,000 558,875
Synopsys, Inc. (a)............................. 24,000 882,000
-----------
3,270,750

TELECOMMUNICATIONS -- 4.41%
Aerial Communications, Inc. (a)................ 19,600 166,600
Cascade Communications Corp. (a)............... 17,000 469,625

<Caption
SHARES MARKET VALUE
------ ------------
COMMON STOCKS (CONTINUED)
- -------------------------
<S> <C> <C>
TELECOMMUNICATIONS (CONTINUED)
Cox Communications, Inc. (a)................... 36,000 $ 864,000
Omnipoint Corp. (a)............................ 29,000 482,125
Palmer Wireless, Inc. (a)...................... 34,800 587,250
360 Communications Co. (a)..................... 64,900 1,111,413
Vanguard Cellular Systems, Inc. (a)............ 29,000 395,125
-----------
4,076,138

TOBACCO -- 0.07%
Consolidated Cigar Holdings, Inc. (a).......... 2,300 63,825
-----------

Total Common Stocks
(cost $72,397,905)........................... 82,946,414
-----------
<CAPTION>

PRINCIPAL AMOUNT
----------------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 10.21%

U.S. GOVERNMENTAL AGENCIES -- 10.21%
Federal Farm Credit Bank Discount Notes
5.50%, 07/14/1997............................ $ 530,000 528,947
Federal Home Loan Mortgage Discount Notes
5.42%, 07/02/1997............................ 1,786,000 1,785,731
5.44%, 07/02/1997............................ 423,000 422,936
5.40%, 07/08/1997............................ 1,251,000 1,249,686
5.50%, 07/15/1997............................ 715,000 713,471
5.52%, 07/25/1997............................ 386,000 384,580
Federal National Mortgage Assoc. Discount Notes
5.50%, 07/16/1997............................ 245,000 244,439
5.41%, 07/25/1997............................ 745,000 742,313
5.42%, 08/07/1997............................ 195,000 193,914
5.43%, 08/28/1997............................ 335,000 332,069
5.45%, 09/08/1997............................ 2,860,000 2,830,125
-----------
9,428,211

MONEY MARKET FUNDS -- 0.00%
State Street Global Advisor Fund, 5.29% (b).... 4,072 4,072
-----------
Total Short Term Investments
(cost $9,432,283).......................... 9,432,283
-----------
TOTAL INVESTMENTS -- 100%
(cost $81,830,188)............................. $92,378,697
===========
</TABLE>

- ---------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of June 30, 1997.

See notes to the financial statements.

74
<PAGE> 170

- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------

To the Shareholders and Board of Trustees of
JNL Series Trust

In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the JNL Aggressive Growth Series,
JNL Capital Growth Series, JNL Global Equities Series, JNL/Alger Growth Series,
JNL/Eagle Core Equity Series, JNL/Eagle SmallCap Equity Series, JNL/Phoenix
Investment Counsel Balanced Series, JNL/Phoenix Investment Counsel Growth
Series, PPM America/JNL High Yield Bond Series, PPM America/JNL Money Market
Series, PPM America/JNL Value Equity Series, Salomon Brothers/JNL Global Bond
Series, Salomon Brothers/JNL U.S. Government & Quality Bond Series, T. Rowe
Price/JNL Established Growth Series, T. Rowe Price/JNL International Equity
Investment Series and T. Rowe Price/JNL Mid-Cap Growth Series (constituting JNL
Series Trust, hereafter referred to as the "Trust") at December 31, 1996, and
the results of each of their operations, changes in each of their net assets and
the financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1996 by
correspondence with the custodians and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.

PRICE WATERHOUSE LLP
Milwaukee, Wisconsin
February 14, 1997

17
<PAGE> 171

JNL SERIES TRUST

STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996

<TABLE>
<CAPTION>
JNL/PHOENIX
JNL JNL/EAGLE JNL/EAGLE INVESTMENT
AGGRESSIVE JNL CAPITAL JNL GLOBAL JNL/ALGER CORE SMALLCAP COUNSEL
GROWTH GROWTH EQUITIES GROWTH EQUITY EQUITY BALANCED
SERIES SERIES SERIES SERIES SERIES SERIES SERIES
----------- ----------- ----------- ----------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at
cost............................ $28,034,841 $34,996,580 $42,282,196 $34,475,613 $1,716,644 $1,603,053 $23,665,613
=========== =========== =========== =========== ========== ========== ===========
Investments in securities, at
value........................... $29,870,628 $37,622,915 $48,919,581 $38,140,297 $1,796,373 $1,816,762 $24,279,702
Cash.............................. 52,939 85,390 29,133 -- 200,612 288,068 --
Foreign currency.................. -- 167,261 103,663 -- -- -- --
Receivables:
Dividends and interest.......... 5,869 964 37,956 30,860 2,342 455 94,610
Forward foreign currency
exchange contracts............ 1,310,318 1,577,985 7,119,501 -- -- -- --
Foreign taxes recoverable....... 1,100 2,522 15,309 -- -- -- --
Fund shares sold................ 277,666 273,586 300,349 167,463 -- -- 104,931
Investment securities sold...... 76,634 983,969 272,901 424,266 1,042 -- --
Reimbursements from Advisor..... -- -- 29,212 -- 4,995 4,381 --
Prepaid expenses.................. -- -- -- -- -- -- --
----------- ----------- ----------- ----------- ---------- ---------- -----------
TOTAL ASSETS...................... 31,595,154 40,714,592 56,827,605 38,762,886 2,005,364 2,109,666 24,479,243
----------- ----------- ----------- ----------- ---------- ---------- -----------
LIABILITIES
Payables:
Advisor......................... 30,608 33,921 41,135 42,247 1,401 1,374 20,342
Custodian foreign currency
overdraft..................... 16,829 -- -- -- -- -- --
Custodian overdraft............. -- -- -- -- -- -- 3,563
Forward foreign currency
exchange contracts............ 1,314,817 1,655,680 6,981,532 -- -- -- --
Dividends to shareholders....... 117,769 16,204 603,988 -- 2,707 -- 13,449
Fund shares redeemed............ 357,911 3,665 360,582 2,127 34 30 1,099
Investment securities
purchased..................... 181,141 2,041,254 159,458 449,595 35,152 154,312 3,630
Options written, at value
(premiums received $1,043)...... -- -- -- -- 1,500 -- --
Accrued expenses and other
liabilities..................... 21,434 17,717 42,436 16,826 10,373 9,861 18,583
----------- ----------- ----------- ----------- ---------- ---------- -----------
TOTAL LIABILITIES................. 2,040,509 3,768,441 8,189,131 510,795 51,167 165,577 60,666
----------- ----------- ----------- ----------- ---------- ---------- -----------
NET ASSETS........................ $29,554,645 $36,946,151 $48,638,474 $38,252,091 $1,954,197 $1,944,089 $24,418,577
=========== =========== =========== =========== ========== ========== ===========
NET ASSETS CONSIST OF:
Paid-in capital................. $27,767,559 $34,446,324 $42,036,466 $35,287,986 $1,879,352 $1,739,717 $23,173,657
Undistributed net investment
income........................ 7,694 133,876 (149,359) -- -- -- 2,086
Accumulated net realized gain
(loss) on investments and
foreign currency related
items......................... (52,362) (188,152) (27,229) (700,579) (4,427) (9,337) 628,745
Net unrealized appreciation
(depreciation) on:
Investments................... 1,835,787 2,626,335 6,637,385 3,664,684 79,729 213,709 614,089
Foreign currency related
items....................... (4,033) (72,232) 141,211 -- -- -- --
Options written............... -- -- -- -- (457) -- --
----------- ----------- ----------- ----------- ---------- ---------- -----------
NET ASSETS........................ $29,554,645 $36,946,151 $48,638,474 $38,252,091 $1,954,197 $1,944,089 $24,418,577
=========== =========== =========== =========== ========== ========== ===========
TOTAL SHARES OUTSTANDING (NO PAR
VALUE), UNLIMITED SHARES
AUTHORIZED...................... 2,208,950 2,555,038 3,199,648 3,428,898 184,058 168,506 2,049,217
=========== =========== =========== =========== ========== ========== ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE...... $13.38 $14.46 $15.20 $11.16 $10.62 $11.54 $11.92
=========== =========== =========== =========== ========== ========== ===========
</TABLE>

See notes to the financial statements.

18
<PAGE> 172
<TABLE>
<CAPTION>
SALOMON T. ROWE
JNL/PHOENIX PPM PPM PPM SALOMON BROTHERS/JNL T. ROWE PRICE/JNL
INVESTMENT AMERICA/JNL AMERICA/JNL AMERICA/JNL BROTHERS/JNL U.S. PRICE/JNL INTERNATIONAL
COUNSEL HIGH YIELD MONEY VALUE GLOBAL GOVERNMENT ESTABLISHED EQUITY
GROWTH BOND MARKET EQUITY BOND & QUALITY BOND GROWTH INVESTMENT
SERIES SERIES SERIES SERIES SERIES SERIES SERIES SERIES
----------- ----------- ----------- ----------- ------------ -------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$23,800,643 $13,109,087 $23,003,245 $16,392,155 $13,370,742 $11,866,620 $28,994,231 $42,636,723
============ ============== ============ ============ ============ ============== ============ ============
$24,090,991 $13,523,037 $23,003,245 $18,343,250 $13,574,106 $11,916,401 $32,988,888 $47,770,591
10,359 -- -- -- -- -- -- --
-- -- -- -- -- -- 532 548,170
18,717 292,496 31 36,625 240,675 115,022 30,238 87,212
-- -- -- -- 5,599,964 -- -- --
272 -- -- -- -- -- 464 36,889
256,232 253,885 783,413 110,290 58,862 26,556 212,122 170,174
1,206,353 1,300 -- -- -- -- -- 11,116
3,965 -- -- 11,144 15 -- 5,058 --
-- 813 227 -- -- -- 3,747 --
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
25,586,889 14,071,531 23,786,916 18,501,309 19,473,622 12,057,979 33,241,049 48,624,152
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
16,199 8,431 11,965 10,663 9,100 5,537 22,257 45,096
-- -- -- -- 2,416 -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- 5,615,570 -- -- --
17,634 31,405 8,194 11,867 164,436 18,716 48,622 261,424
912 1,691 843 39,394 73,501 3,845 28,431 4,756
2,731,642 615,535 -- 661,506 1,102,544 2,184,744 833,185 72,609
16,987 18,073 13,727 17,201 23,112 13,397 17,613 35,938
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
2,783,374 675,135 34,729 740,631 6,990,679 2,226,239 950,108 419,823
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$22,803,515 $13,396,396 $23,752,187 $17,760,678 $12,482,943 $ 9,831,740 $32,290,941 $48,204,329
============ ============== ============ ============ ============ ============== ============ ============
$21,854,859 $12,806,840 $23,752,187 $15,672,149 $12,212,887 $ 9,772,004 $28,335,681 $42,985,389
-- 6,041 -- 5,272 24,906 -- (3,896) 65,539
658,308 169,565 -- 132,162 57,447 9,955 (35,557) 16,473
290,348 413,950 -- 1,951,095 203,364 49,781 3,994,657 5,133,868
-- -- -- -- (15,661) -- 56 3,060
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$22,803,515 $13,396,396 $23,752,187 $17,760,678 $12,482,943 $ 9,831,740 $32,290,941 $48,204,329
============ ============== ============ ============ ============ ============== ============ ============
1,604,348 1,255,147 23,752,187 1,225,273 1,174,127 963,480 2,571,210 3,989,593
============ ============== ============ ============ ============ ============== ============ ============
$14.21 $10.67 $1.00 $14.50 $10.63 $10.20 $12.56 $12.08
============ ============== ============ ============ ============ ============== ============ ============

T. ROWE
PRICE/JNL
MID-CAP
GROWTH
SERIES
---------
<S> <C>
$42,772,841
===========
$47,883,620
==
12,339
--
314
280,259
115,264
806
--
-----------
48,292,602
-----------
35,547
==
--
53,574
2,647
1,075,875
20,470
-----------
1,188,113
-----------
$47,104,489
===========
$42,010,676
(301)
(16,665)
5,110,779
--
-----------
$47,104,489
===========

===========

===========
</TABLE>

19
<PAGE> 173

JNL SERIES TRUST

STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1996*

<TABLE>
<CAPTION>
JNL/PHOENIX
JNL JNL JNL JNL/ JNL/EAGLE INVESTMENT
AGGRESSIVE CAPITAL GLOBAL JNL/ALGER EAGLE CORE SMALLCAP COUNSEL
GROWTH GROWTH EQUITIES GROWTH EQUITY EQUITY BALANCED
SERIES SERIES SERIES SERIES SERIES* SERIES* SERIES
---------- ------- -------- --------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends............................ $ 68,842 $ 276,523 $ 270,951 $ 121,872 $ 8,749 $ 2,525 $ 65,313
Interest............................. 221,102 83,548 128,161 99,498 328 753 335,923
Foreign tax withholding.............. (2,804) (2,253) (23,275) -- (4) -- (274)
-------- ---------- ---------- ---------- -------- -------- ----------
TOTAL INVESTMENT INCOME................ 287,140 357,818 375,837 221,370 9,073 3,278 400,962
-------- ---------- ---------- ---------- -------- -------- ----------
EXPENSES
Investment advisory fees............. 145,930 169,538 247,941 195,472 3,785 3,709 104,754
Custodian fees....................... 38,301 25,104 117,996 11,344 1,040 537 9,088
Transfer agent fees.................. 1,266 1,266 1,266 1,066 -- -- 1,066
Portfolio accounting fees............ 3,438 3,516 3,749 2,866 -- -- 2,479
Registration fees.................... 58 118 88 99 322 322 50
Professional fees.................... 18,559 18,558 24,358 19,258 12,862 12,862 19,258
Trustee fees......................... 1,357 1,362 1,357 1,357 440 440 1,356
Other................................ 7,023 7,594 8,003 8,079 851 851 4,916
-------- ---------- ---------- ---------- -------- -------- ----------
TOTAL EXPENSES......................... 215,932 227,056 404,758 239,541 19,300 18,721 142,967
Less:
Reimbursement from Advisor........... (45,898) (29,898) (118,829) (4,467) (14,884) (14,426) (20,493)
Fees paid indirectly................. (2,234) (2,641) (2,093) (10,114) -- -- (839)
-------- ---------- ---------- ---------- -------- -------- ----------
NET EXPENSES........................... 167,800 194,517 283,836 224,960 4,416 4,295 121,635
-------- ---------- ---------- ---------- -------- -------- ----------
NET INVESTMENT INCOME (LOSS)........... 119,340 163,301 92,001 (3,590) 4,657 (1,017) 279,327
-------- ---------- ---------- ---------- -------- -------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES)
Net realized gain (loss) on:
Investments.......................... 602,416 (221,942) 1,196,113 (523,886) (4,427) (9,337) 933,110
Foreign currency related items....... 9,765 28,945 (2,943) -- -- -- --
Net change in unrealized appreciation
(depreciation) on:
Investments........................ 999,505 872,041 4,236,085 3,281,071 79,272 213,709 476,858
Foreign currency related items..... (4,062) (71,967) 128,253 -- -- -- --
-------- ---------- ---------- ---------- -------- -------- ----------
NET REALIZED AND UNREALIZED GAIN
(LOSS)............................... 1,607,624 607,077 5,557,508 2,757,185 74,845 204,372 1,409,968
-------- ---------- ---------- ---------- -------- -------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $1,726,964 $ 770,378 $5,649,509 $2,753,595 $ 79,502 $203,355 $1,689,295
======== ========== ========== ========== ======== ======== ==========
</TABLE>

- -------------------------
* For period beginning September 16, 1996, commencement of operations, for
JNL/Eagle Core Equity Series and JNL/Eagle SmallCap Equity Series.

See notes to the financial statements.

20
<PAGE> 174
<TABLE>
<CAPTION>
T. ROWE
JNL/PHOENIX PPM SALOMON T. ROWE PRICE/JNL
INVESTMENT PPM AMERICA/JNL PPM SALOMON BROTHERS/JNL PRICE/JNL INTERNATIONAL
COUNSEL AMERICA/JNL MONEY AMERICA/JNL BROTHERS/JNL U.S. GOVERNMENT ESTABLISHED EQUITY
GROWTH HIGH YIELD MARKET VALUE EQUITY GLOBAL BOND & QUALITY BOND GROWTH INVESTMENT
SERIES BOND SERIES SERIES SERIES SERIES SERIES SERIES SERIES
----------- ----------- ----------- ------------ ------------ --------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 72,873 $ 4,681 $ -- $ 235,569 $ -- $ -- $ 196,524 $ 568,552
96,978 758,156 711,067 3,240 651,374 330,690 60,800 111,792
(640) (502) -- -- (878) -- (6,107) (46,836)
-------- ---------- ---------- ---------- -------- -------- ----------
169,211 762,335 711,067 238,809 650,496 330,690 251,217 633,508
-------- ---------- ---------- ---------- -------- -------- ----------
76,618 59,890 77,345 56,818 64,789 35,080 133,940 297,941
4,983 7,083 8,291 31,960 11,067 7,581 10,126 15,444
1,066 1,066 1,065 1,066 1,166 1,266 1,266 1,266
1,080 2,458 2,457 2,479 3,196 2,747 3,443 3,883
50 99 75 24 77 37 195 77
18,358 21,457 17,058 18,358 24,858 18,159 18,957 24,858
1,356 1,356 1,356 1,356 1,357 1,357 1,357 1,357
5,164 3,443 2,722 4,245 3,491 2,683 6,426 6,200
-------- ---------- ---------- ---------- -------- -------- ----------
108,675 96,852 110,369 116,306 110,001 68,910 175,710 351,026
(19,190) (24,657) (13,678) (46,993) (33,688) (26,313) (18,006) (12,467)
(562) (1,626) (115) (4,967) (515) (221) (266) --
-------- ---------- ---------- ---------- -------- -------- ----------
88,923 70,569 96,576 64,346 75,798 42,376 157,438 338,559
-------- ---------- ---------- ---------- -------- -------- ----------
80,288 691,766 614,491 174,463 574,698 288,314 93,779 294,949
-------- ---------- ---------- ---------- -------- -------- ----------
1,130,393 217,828 -- 299,700 275,846 29,022 93,499 203,836
-- -- -- -- 57,170 -- (12,360) 25,484
152,651 383,145 -- 1,455,960 178,039 82,805 3,384,049 2,679,873
-- -- -- -- (21,421) -- 44 2,709
-------- ---------- ---------- ---------- -------- -------- ----------
1,283,044 600,973 -- 1,755,660 489,634 111,827 3,465,232 2,911,902
-------- ---------- ---------- ---------- -------- -------- ----------
$1,363,332 $1,292,739 $614,491 $1,930,123 $1,064,332 $400,141 $3,559,011 $3,206,851
======== ========== ========== ========== ======== ======== ==========

T. ROWE
PRICE/JNL
MID-CAP
GROWTH
SERIES
---------
<S> <C>
$ 72,375
132,476
(234)
204,617
210,778
10,199
1,066
3,376
99
19,258
1,356
8,667
254,799
(10,714)
(123)
243,962
(39,345)
750,795
(3)
3,708,604
--
4,459,396
$4,420,051
</TABLE>

21
<PAGE> 175

JNL SERIES TRUST

STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
JNL AGGRESSIVE JNL CAPITAL JNL GLOBAL
GROWTH SERIES GROWTH SERIES EQUITIES SERIES
--------------------------- --------------------------- ---------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 1, MAY 15, APRIL 1, MAY 15, APRIL 1, MAY 15,
1996 TO 1995* 1996 TO 1995* 1996 TO 1995*
DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31,
1996 1996 1996 1996 1996 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................... $ 119,340 $ 14,650 $ 163,301 $ (27,120) $ 92,001 $ 41,731
Net realized gain (loss)
on:
Investments.............. 602,416 1,017,633 (221,942) 822,061 1,196,113 1,904,209
Foreign currency related
items.................. 9,765 (27,706) 28,945 (6,783) (2,943) (114,384)
Net change in unrealized
appreciation
(depreciation) on:
Investments.............. 999,505 836,282 872,041 1,754,294 4,236,085 2,401,300
Foreign currency related
items.................. (4,062) 29 (71,967) (265) 128,253 12,958
----------- ---------- ----------- ---------- ----------- -----------
Net increase in net assets
from operations.......... 1,726,964 1,840,888 770,378 2,542,187 5,649,509 4,245,814
----------- ---------- ----------- ---------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income...... (104,404) -- (3) -- (238,326) (2,088)
Net realized gain on
investment
transactions............. (1,470,576) (205,786) (390,495) (422,240) (2,687,572) (365,329)
Return of capital.......... (289,382) -- -- -- (955,663) --
----------- ---------- ----------- ---------- ----------- -----------
Total distributions to
shareholders............. (1,864,362) (205,786) (390,498) (422,240) (3,881,561) (367,417)
----------- ---------- ----------- ---------- ----------- -----------
SHARE TRANSACTIONS:
Proceeds from the sale of
shares................... 26,877,906 6,815,571 34,276,844 7,274,705 38,726,566 11,922,082
Reinvestment of
distributions............ 1,746,593 205,786 374,294 422,240 3,277,573 367,417
Cost of shares redeemed.... (7,459,511) (129,404) (7,662,400) (239,359) (11,274,162) (27,347)
----------- ---------- ----------- ---------- ----------- -----------
Net increase in net assets
from share
transactions............. 21,164,988 6,891,953 26,988,738 7,457,586 30,729,977 12,262,152
----------- ---------- ----------- ---------- ----------- -----------
Net increase in net
assets................... 21,027,590 8,527,055 27,368,618 9,577,533 32,497,925 16,140,549
Net assets beginning of
period................... 8,527,055 -- 9,577,533 -- 16,140,549 --
----------- ---------- ----------- ---------- ----------- -----------
NET ASSETS END OF PERIOD... $29,554,645 $8,527,055 $36,946,151 $9,577,533 $48,638,474 $16,140,549
=========== ========== =========== ========== =========== ===========
UNDISTRIBUTED NET
INVESTMENT INCOME........ $ 7,694 $ 7,691 $ 133,876 $ -- $ (149,359) $ 2,538
=========== ========== =========== ========== =========== ===========

<CAPTION>
JNL/ALGER
GROWTH SERIES
---------------------------
PERIOD FROM PERIOD FROM
APRIL 1, OCTOBER 16,
1996 TO 1995*
DECEMBER 31, TO MARCH 31,
1996 1996
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income
(loss)................... $ (3,590) $ (4,334)
Net realized gain (loss)
on:
Investments.............. (523,886) (176,693)
Foreign currency related
items.................. -- --
Net change in unrealized
appreciation
(depreciation) on:
Investments.............. 3,281,071 383,613
Foreign currency related
items.................. -- --
----------- ----------
Net increase in net assets
from operations.......... 2,753,595 202,586
----------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income...... -- --
Net realized gain on
investment
transactions............. -- --
Return of capital.......... -- --
----------- ----------
Total distributions to
shareholders............. -- --
----------- ----------
SHARE TRANSACTIONS:
Proceeds from the sale of
shares................... 34,332,656 8,603,764
Reinvestment of
distributions............ -- --
Cost of shares redeemed.... (7,483,397) (157,113)
----------- ----------
Net increase in net assets
from share
transactions............. 26,849,259 8,446,651
----------- ----------
Net increase in net
assets................... 29,602,854 8,649,237
Net assets beginning of
period................... 8,649,237 --
----------- ----------
NET ASSETS END OF PERIOD... $38,252,091 $8,649,237
=========== ==========
UNDISTRIBUTED NET
INVESTMENT INCOME........ $ -- $ --
=========== ==========
</TABLE>

- -------------------------
* Commencement of operations.

See notes to the financial statements.

22
<PAGE> 176

<TABLE>
<CAPTION>
JNL/ JNL/EAGLE
EAGLE CORE SMALLCAP JNL/PHOENIX INVESTMENT JNL/PHOENIX INVESTMENT PPM AMERICA/JNL
EQUITY SERIES EQUITY SERIES COUNSEL BALANCED SERIES COUNSEL GROWTH SERIES HIGH YIELD BOND SERIES
------------- ------------- --------------------------- --------------------------- ---------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
SEPTEMBER 16, SEPTEMBER 16, APRIL 1, MAY 15, APRIL 1, MAY 15, APRIL 1, MAY 15,
1996* TO 1996* TO 1996 TO 1995* 1996 TO 1995* 1996 TO 1995*
DECEMBER 31, DECEMBER 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31,
1996 1996 1996 1996 1996 1996 1996 1996
------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 4,657 $ (1,017) $ 279,327 $ 64,994 $ 80,288 $ 3,173 $ 691,766 $ 384,605
(4,427) (9,337) 933,110 121,825 1,130,393 254,010 217,828 (24,875)
-- -- -- -- -- -- -- --
79,272 213,709 476,858 137,231 152,651 137,697 383,145 30,805
-- -- -- -- -- -- -- --
---------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
79,502 203,355 1,689,295 324,050 1,363,332 394,880 1,292,739 390,535
---------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
(4,657) -- (301,815) (40,871) (83,226) (235) (798,203) (272,127)
-- -- (364,079) (61,660) (608,389) (117,706) (23,388) --
(320) -- -- -- -- -- -- --
---------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
(4,977) -- (665,894) (102,531) (691,615) (117,941) (821,591) (272,127)
---------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
2,027,399 1,760,997 21,937,839 4,496,694 21,124,451 2,128,041 12,401,767 5,775,829
2,270 -- 652,446 102,531 673,981 117,941 790,186 272,127
(149,997) (20,263) (3,955,738) (60,115) (2,184,704) (4,851) (6,422,234) (10,835)
---------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
1,879,672 1,740,734 18,634,547 4,539,110 19,613,728 2,241,131 6,769,719 6,037,121
---------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
1,954,197 1,944,089 19,657,948 4,760,629 20,285,445 2,518,070 7,240,867 6,155,529
-- -- 4,760,629 -- 2,518,070 -- 6,155,529 --
---------- ---------- ----------- ---------- ----------- ---------- ----------- ----------
$1,954,197 $1,944,089 $24,418,577 $4,760,629 $22,803,515 $2,518,070 $13,396,396 $6,155,529
========== ========== =========== ========== =========== ========== =========== ==========
$ -- $ -- $ 2,086 $ 24,386 $ -- $ 2,938 $ 6,041 $ 112,478
========== ========== =========== ========== =========== ========== =========== ==========
</TABLE>

23
<PAGE> 177

JNL SERIES TRUST

STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)

<TABLE>
<CAPTION>
PPM AMERICA/JNL PPM AMERICA/JNL SALOMON BROTHERS/JNL
MONEY MARKET SERIES VALUE EQUITY SERIES GLOBAL BOND SERIES
---------------------------- ---------------------------- ----------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 1, MAY 15, APRIL 1, MAY 15, APRIL 1, MAY 15,
1996 TO 1995* 1996 TO 1995* 1996 TO 1995*
DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31,
1996 1996 1996 1996 1996 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....... $ 614,491 $ 234,137 $ 174,463 $ 48,909 $ 574,698 $ 417,787
Net realized gain (loss) on:
Investments...................... -- -- 299,700 90,665 275,846 76,520
Foreign currency related items... -- -- -- -- 57,170 14,461
Net change in unrealized
appreciation (depreciation) on:
Investments...................... -- -- 1,455,960 495,135 178,039 25,325
Foreign currency related items... -- -- -- -- (21,421) 5,760
----------- ---------- ----------- ---------- ----------- ----------
Net increase in net assets from
operations....................... 614,491 234,137 1,930,123 634,709 1,064,332 539,853
----------- ---------- ----------- ---------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.............. (614,491) (234,137) (183,956) (34,144) (754,598) (284,881)
Net realized gain on investment
transactions..................... -- -- (226,911) (31,292) (280,691) (13,959)
Return of capital.................. -- -- -- -- -- --
----------- ---------- ----------- ---------- ----------- ----------
Total distribution to
shareholders..................... (614,491) (234,137) (410,867) (65,436) (1,035,289) (298,840)
----------- ---------- ----------- ---------- ----------- ----------
SHARE TRANSACTIONS:
Proceeds from the sale of shares... 43,176,521 7,080,475 15,648,559 2,744,940 9,953,802 5,906,032
Reinvestment of distributions...... 606,298 234,137 398,998 65,436 870,854 298,840
Cost of shares redeemed............ (26,846,271) (498,973) (3,171,440) (14,344) (4,750,819) (65,822)
----------- ---------- ----------- ---------- ----------- ----------
Net increase in net assets from
share transactions............... 16,936,548 6,815,639 12,876,117 2,796,032 6,073,837 6,139,050
----------- ---------- ----------- ---------- ----------- ----------
Net increase in net assets......... 16,936,548 6,815,639 14,395,373 3,365,305 6,102,880 6,380,063
Net assets beginning of period..... 6,815,639 -- 3,365,305 -- 6,380,063 --
----------- ---------- ----------- ---------- ----------- ----------
NET ASSETS END OF PERIOD........... $ 23,752,187 $6,815,639 $17,760,678 $3,365,305 $12,482,943 $6,380,063
=========== ========== =========== ========== =========== ==========
UNDISTRIBUTED NET INVESTMENT
INCOME........................... $ -- $ -- $ 5,272 $ 14,765 $ 24,906 $ 154,263
=========== ========== =========== ========== =========== ==========
</TABLE>

- ------------------------
* Commencement of operations.

See notes to the financial statements.

24
<PAGE> 178

<TABLE>
<CAPTION>
SALOMON BROTHERS/JNL T. ROWE PRICE/JNL
U.S. GOVERNMENT & T. ROWE PRICE/JNL INTERNATIONAL T. ROWE PRICE/JNL
QUALITY BOND SERIES ESTABLISHED GROWTH SERIES EQUITY INVESTMENT SERIES MID-CAP GROWTH SERIES
---------------------------- ---------------------------- ---------------------------- ----------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 1, MAY 15, APRIL 1, MAY 15, APRIL 1, MAY 15, APRIL 1, MAY 15,
1996 TO 1995* 1996 TO 1995* 1996 TO 1995* 1996 TO 1995*
DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31,
1996 1996 1996 1996 1996 1996 1996 1996
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 288,314 $ 101,972 $ 93,779 $ 39,667 $ 294,949 $ 144,763 $ (39,345) $ 45,840
29,022 16,922 93,499 755,376 203,836 28,284 750,795 646,003
-- -- (12,360) (688) 25,484 (98,371) (3) (638)
82,805 (33,024) 3,384,049 610,608 2,679,873 2,453,995 3,708,604 1,402,175
-- -- 44 12 2,709 351 -- --
----------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
400,141 85,870 3,559,011 1,404,975 3,206,851 2,529,022 4,420,051 2,093,380
----------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
(318,115) (69,090) (91,356) (32,938) (465,733) -- (144,094) (1,703)
(30,967) (8,103) (212,086) (672,346) (51,200) -- (1,107,685) (266,093)
-- -- (1,234,953) -- -- -- -- --
----------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
(349,082) (77,193) (1,538,395) (705,284) (516,933) -- (1,251,779) (267,796)
----------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
8,748,229 2,948,026 27,757,264 7,552,012 22,581,023 21,710,034 41,147,930 8,712,257
330,365 77,193 1,489,773 705,284 255,509 -- 1,198,205 267,796
(2,304,702) (27,107) (7,748,754) (184,945) (1,533,092) (28,085) (8,955,066) (260,489)
----------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
6,773,892 2,998,112 21,498,283 8,072,351 21,303,440 21,681,949 33,391,069 8,719,564
----------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
6,824,951 3,006,789 23,518,899 8,772,042 23,993,358 24,210,971 36,559,341 10,545,148
3,006,789 -- 8,772,042 -- 24,210,971 -- 10,545,148 --
----------- ---------- ----------- ---------- ----------- ----------- ----------- -----------
$ 9,831,740 $3,006,789 $32,290,941 $8,772,042 $48,204,329 $24,210,971 $47,104,489 $10,545,148
=========== ========== =========== ========== =========== =========== =========== ===========
$ -- $ 31,823 $ (3,896) $ 6,828 $ 65,539 $ 80,214 $ (301) $ 44,137
=========== ========== =========== ========== =========== =========== =========== ===========
</TABLE>

25
<PAGE> 179

JNL SERIES TRUST

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
JNL AGGRESSIVE JNL CAPITAL JNL GLOBAL
GROWTH SERIES GROWTH SERIES EQUITIES SERIES
---------------------------- ---------------------------- ----------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 1, MAY 15, APRIL 1, MAY 15, APRIL 1, MAY 15,
1996 TO 1995* 1996 TO 1995* 1996 TO 1995*
DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31,
1996 1996 1996 1996 1996 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF
PERIOD............................. $ 13.13 $10.00 $ 13.86 $10.00 $ 13.75 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)......... 0.05 0.01 0.06 -- 0.03 0.10
Net realized and unrealized gains on
investments and foreign currency
related items...................... 1.10 3.53 0.70 4.70 2.72 4.02
------- ------- ------- ------ ------- ------
Total income from investment
operations......................... 1.15 3.54 0.76 4.70 2.75 4.12
------- ------- ------- ------ ------- ------
LESS DISTRIBUTIONS:
From net investment income........... (0.05) -- -- -- (0.08) --
From net realized gains on investment
transactions....................... (0.71) (0.41) (0.16) (0.84) (0.90) (0.37)
Return of capital.................... (0.14) -- -- -- (0.32) --
------- ------- ------- ------ ------- ------
Total distributions.................. (0.90) (0.41) (0.16) (0.84) (1.30) (0.37)
------- ------- ------- ------ ------- ------
Net increase......................... 0.25 3.13 0.60 3.86 1.45 3.75
------- -------- ------- ------ ------- -------
NET ASSET VALUE, END OF PERIOD....... $ 13.38 $ 13.13 $ 14.46 $13.86 $ 15.20 $ 13.75
======= ======== ======= ====== ======= =======
TOTAL RETURN(A)...................... 8.72% 35.78% 5.45% 47.94% 19.99% 41.51%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)......................... $29,555 $ 8,527 $36,946 $9,578 $48,638 $16,141
Ratio of net expenses to average net
assets(b)(c)....................... 1.09% 1.09% 1.09% 1.09% 1.14% 1.15%
Ratio of net investment income to
average net assets(b)(c)........... 0.77% 0.27% 0.91% (0.49)% 0.37% 0.39%
Portfolio turnover rate.............. 85.22% 163.84% 115.88% 128.56% 52.02% 142.36%
Average commission rate paid(d)...... $0.0242 n/a $0.0196 n/a $0.0162 n/a
RATIO INFORMATION ASSUMING NO EXPENSE
REIMBURSEMENT OR FEES PAID
INDIRECTLY
Ratio of expenses to average net
assets(b).......................... 1.40% 2.77% 1.27% 2.08% 1.63% 2.25%
Ratio of net investment income to
average net assets(b).............. 0.46% (1.41)% 0.73% (1.48)% (0.12)% (0.71)%
</TABLE>

- -------------------------
* Commencement of operations.

(b) Annualized.

(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

26
<PAGE> 180
<TABLE>
<CAPTION>
JNL/EAGLE JNL/EAGLE
CORE EQUITY SMALLCAP JNL/PHOENIX INVESTMENT JNL/PHOENIX INVESTMENT
JNL/ALGER GROWTH SERIES SERIES EQUITY SERIES COUNSEL BALANCED SERIES COUNSEL GROWTH SERIES
-------------------------- ------------- ------------- -------------------------- --------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 1, OCTOBER 16, SEPTEMBER 16, SEPTEMBER 16, APRIL 1, MAY 15, APRIL 1, MAY 15,
1996 TO 1995* TO 1996* TO 1996* TO 1996 TO 1995* TO 1996 TO 1995* TO
DECEMBER 31, MARCH 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, MARCH 31, DECEMBER 31, MARCH 31,
1996 1996 1996 1996 1996 1996 1996 1996
------------ ----------- ------------- ------------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
$10.38 $10.00 $10.00 $10.00 $11.17 $10.00 $12.50 $10.00
-- -- 0.03 (0.01) 0.10 0.25 0.04 0.01
0.78 0.38 0.62 1.55 0.98 1.40 2.12 3.66
------- ------ ------ ------ ------- ------ ------- ------
0.78 0.38 0.65 1.54 1.08 1.65 2.16 3.67
------- ------ ------ ------ ------- ------ ------- ------
-- -- (0.03) -- (0.15) (0.19) (0.05) --
-- -- -- -- (0.18) (0.29) (0.40) (1.17)
-- -- -- -- -- -- -- --
------- ------ ------ ------ ------- ------ ------- ------
-- -- (0.03) -- (0.33) (0.48) (0.45) (1.17)
------- ------ ------ ------ ------- ------ ------- ------
0.78 0.38 0.62 1.54 0.75 1.17 1.71 2.50
------- ------ ------ ------ ------- ------ ------- ------
$11.16 $10.38 $10.62 $11.54 $11.92 $11.17 $14.21 $12.50
======= ====== ====== ====== ======= ====== ======= ======
7.51% 3.80% 6.47% 15.40% 9.72% 16.60% 17.28% 37.69%
$38,252 $8,649 $ 1,954 $ 1,944 $24,419 $4,761 $22,804 $2,518
1.07% 1.03% 1.05% 1.10% 1.04% 1.01% 1.04% 0.95%
(0.02)% (0.17)% 1.10% (0.26)% 2.39% 2.99% 0.94% 0.28%
59.92% 50.85% 1.36% 28.01% 158.15% 115.84% 184.33% 255.03%
$0.0441 n/a $0.0452 $0.0264 $0.0494 n/a $0.0175 n/a
1.19% 1.89% 4.57% 4.77% 1.22% 3.71% 1.27% 5.38%
(0.14)% (1.03)% (2.42)% (3.93)% 2.21% 0.29% 0.71% (4.15)%

PPM AMERICA/JNL HIGH
YIELD BOND SERIES
--------------------------
PERIOD FROM PERIOD FROM
APRIL 1, MAY 15,
1996 TO 1995* TO
DECEMBER 31, MARCH 31,
1996 1996
------------ -----------
<S> <C>
$10.23 $10.00
0.51 0.73
0.64 0.04
------- ------
1.15 0.77
------- ------
(0.69) (0.54)
(0.02) --
-- --
------- ------
(0.71) (0.54)
------- ------
0.44 0.32
------- ------
$10.67 $10.23
======= ======
11.24% 7.82%
$13,396 $6,156
0.88% 0.88%
8.64% 8.34%
113.08% 186.21%
n/a n/a
1.21% 1.50%
8.31% 7.72%
</TABLE>

27
<PAGE> 181

JNL SERIES TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

<TABLE>
<CAPTION>
PPM AMERICA/JNL PPM AMERICA/JNL SALOMON BROTHERS/JNL
MONEY MARKET SERIES VALUE EQUITY SERIES GLOBAL BOND SERIES
--------------------------- --------------------------- ---------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 1, MAY 15, APRIL 1, MAY 15, APRIL 1, MAY 15,
1996 TO 1995* 1996 TO 1995* 1996 TO 1995*
DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31,
1996 1996 1996 1996 1996 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 1.00 $1.00 $ 12.77 $10.00 $ 10.46 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............ 0.04 0.04 0.10 0.23 0.42 0.81
Net realized and unrealized gains on
investments and foreign currency
related items......................... -- -- 1.97 2.86 0.70 0.24
------- ----- ------- ------ ------- ------
Total income from investment
operations............................ 0.04 0.04 2.07 3.09 1.12 1.05
------- ------ ------- ------ ------- ------
LESS DISTRIBUTIONS:
From net investment income.............. (0.04) (0.04) (0.15) (0.17) (0.69) (0.56)
From net realized gains on investment
transactions.......................... -- -- (0.19) (0.15) (0.26) (0.03)
Return of capital....................... -- -- -- -- -- --
------- ------ ------- ------ ------- ------
Total distributions..................... (0.04) (0.04) (0.34) (0.32) (0.95) (0.59)
------- ------ ------- ------ ------- ------
Net increase............................ -- -- 1.73 2.77 0.17 0.46
------- ------ ------- ------ ------- ------
NET ASSET VALUE, END OF PERIOD.......... $ 1.00 $ 1.00 $ 14.50 $12.77 $ 10.63 $10.46
======= ====== ======= ====== ======= ======
TOTAL RETURN(A)......................... 3.61% 4.59% 16.25% 31.14% 10.68% 10.74%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)............................ $23,752 $6,816 $17,761 $3,365 $12,483 $6,380
Ratio of net expenses to average net
assets(b)(c).......................... 0.75% 0.75% 0.85% 0.87% 0.99% 1.00%
Ratio of net investment income to
average net assets(b)(c).............. 4.75% 5.06% 2.29% 2.33% 7.52% 9.01%
Portfolio turnover rate................. -- -- 13.71% 30.12% 109.85% 152.89%
Average commission rate paid(d)......... n/a n/a $0.0259 n/a n/a n/a
RATIO INFORMATION ASSUMING NO EXPENSE
REIMBURSEMENT OR FEES PAID INDIRECTLY
Ratio of expenses to average net
assets(b)............................. 0.85% 1.30% 1.53% 2.28% 1.44% 2.14%
Ratio of net investment income to
average net assets(b)................. 4.65% 4.51% 1.61% 0.91% 7.07% 7.87%
</TABLE>

- -------------------------
* Commencement of operations.

(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period. Total
return is not annualized.

(b) Annualized.

(d) Disclosure required for fiscal years beginning after September 1, 1995.

See notes to the financial statements.

28
<PAGE> 182

<TABLE>
<CAPTION>
SALOMON BROTHERS/JNL U.S. T. ROWE PRICE/
GOVERNMENT & QUALITY T. ROWE PRICE/JNL JNL INTERNATIONAL T. ROWE PRICE/JNL
BOND SERIES ESTABLISHED GROWTH SERIES EQUITY INVESTMENT SERIES MID-CAP GROWTH SERIES
--------------------------- --------------------------- --------------------------- ---------------------------
PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM PERIOD FROM
APRIL 1, MAY 15, APRIL 1, MAY 15, APRIL 1, MAY 15, APRIL 1, MAY 15,
1996 TO 1995* 1996 TO 1995* 1996 TO 1995* 1996 TO 1995*
DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31, DECEMBER 31, TO MARCH 31,
1996 1996 1996 1996 1996 1996 1996 1996
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 10.09 $ 10.00 $ 11.36 $ 10.00 $ 11.25 $ 10.00 $ 13.43 $ 10.00
0.24 0.45 0.03 0.07 0.06 0.04 (0.05) 0.06
0.24 0.02 1.81 2.68 0.90 1.21 1.92 3.90
-------- -------- -------- -------- -------- ------- -------- --------
0.48 0.47 1.84 2.75 0.96 1.25 1.87 3.96
-------- -------- -------- -------- -------- ------- -------- --------
(0.34) (0.34) (0.04) (0.06) (0.12) -- (0.05) --
(0.03) (0.04) (0.09) (1.33) (0.01) -- (0.36) (0.53)
-- -- (0.51) -- -- -- -- --
-------- -------- -------- -------- -------- ------- -------- --------
(0.37) (0.38) (0.64) (1.39) (0.13) -- (0.41) (0.53)
-------- -------- -------- -------- -------- ------- -------- --------
0.11 0.09 1.20 1.36 0.83 1.25 1.46 3.43
-------- -------- -------- -------- -------- ------- -------- --------
$ 10.20 $ 10.09 $ 12.56 $ 11.36 $ 12.08 $ 11.25 $ 14.89 $ 13.43
======== ======== ======== ======== ======== ======== ======== ========
4.82% 4.65% 16.12% 28.23% 8.54% 12.50% 13.91% 40.06%
$ 9,832 $ 3,007 $ 32,291 $ 8,772 $ 48,204 $24,211 $ 47,104 $ 10,545
0.84% 0.84% 1.00% 1.00% 1.25% 1.25% 1.10% 1.10%
5.72% 5.41% 0.59% 0.75% 1.09% 0.78% (0.18)% 0.82%
218.50% 253.37% 36.41% 101.13% 5.93% 16.45% 25.05% 66.04%
n/a n/a $ 0.0288 n/a $ 0.0257 n/a $ 0.0326 n/a
1.37% 2.53% 1.11% 2.09% 1.29% 2.14% 1.14% 2.10%
5.19% 3.72% 0.48% (0.34)% 1.05% (0.11)% (0.22)% (0.18)%
</TABLE>

29
<PAGE> 183

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

JNL SERIES TRUST

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1996

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

NOTE 1. ORGANIZATION

JNL Series Trust ("Trust") is an open-end management investment company
organized under the laws of Massachusetts, by a Declaration of Trust, dated June
1, 1994. The Trust is registered with the Securities and Exchange Commission
under the Investment Company Act of 1940. The Trust currently offers shares in
sixteen (16) separate Series, each with its own investment objective. The shares
of the Trust are sold primarily to life insurance company separate accounts to
fund the benefits of variable annuity policies.

The Trust is composed of the following Series: JNL Aggressive Growth, JNL
Capital Growth and JNL Global Equities for which Janus Capital Corporation
serves as the sub-advisor; JNL/Alger Growth for which Fred Alger Management,
Inc. serves as the sub-advisor; JNL/Eagle Core Equity and JNL/Eagle SmallCap
Equity for which Eagle Asset Management, Inc. serves as sub-advisor; JNL/Phoenix
Investment Counsel Balanced and JNL/Phoenix Investment Counsel Growth for which
Phoenix Investment Counsel, Inc. serves as the sub-advisor; PPM America/JNL High
Yield Bond, PPM America/JNL Money Market and PPM America/JNL Value Equity for
which PPM America, Inc. serves as the sub-advisor; Salomon Brothers/JNL Global
Bond and Salomon Brothers/JNL U.S. Government & Quality Bond for which Salomon
Brothers Asset Management Inc serves as the sub-advisor; T. Rowe Price/JNL
Established Growth and T. Rowe Price/JNL Mid-Cap Growth for which T. Rowe Price
Associates, Inc. serves as the sub-advisor; and T. Rowe Price/JNL International
Equity Investment for which Rowe Price-Fleming International, Inc. serves as the
sub-advisor. Salomon Brothers Asset Management Inc has entered into a
sub-advisory consulting agreement with its London based affiliate, Salomon
Brothers Asset Management Limited pursuant to which it will provide certain
sub-advisory services to Salomon Brothers Asset Management Inc relating to
currency transactions and investments in non-dollar denominated debt securities
for the benefit of the Series. Jackson National Financial Services, Inc.
("JNFSI"), a wholly-owned subsidiary of Jackson National Life Insurance Company
("Jackson National"), serves as investment advisor ("Advisor") for all the
Series of the Trust. PPM America, Inc. is an affiliate of the Advisor. Shares
are presently offered only to Jackson National and its separate account. As of
December 31, 1996, Jackson National's investment in the Trust totaled
$45,710,487.

The costs associated with the organization of the Trust and certain other
initial period costs have been borne by Jackson National.

Effective December 31, 1996, the Trust changed its fiscal year end to
December 31.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements.

USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses during
the reported period. Actual results could differ from those estimates.

SECURITY VALUATION -- Bonds are valued on the basis of prices furnished by
a service which determines prices for normal institutional size trading units of
bonds, without regard to exchange or over-the-counter prices. When quotations
are not readily available, bonds are valued at fair market value determined by
procedures approved by the Board of Trustees. Stocks listed on a national or
foreign stock exchange are valued at the final sale price, or final bid price in
absence of a sale. Stocks not listed on a national or foreign stock exchange are
valued at the closing bid price on the over-the-counter market. Short-term
securities maturing within 60 days of purchase, and all securities in the PPM
America/JNL Money Market Series, are valued at amortized cost, which
approximates market value. American Depository Receipts ("ADRs"), which are
certificates representing shares of foreign securities deposited in domestic and
foreign banks, are traded and valued in U.S. dollars.

30
<PAGE> 184

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

JNL SERIES TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on a trade date basis. Dividend income is recorded on the
ex-dividend date. Interest income, including level-yield amortization of
discounts and premiums, is accrued daily. Realized gains and losses are
determined on the specific identification basis, which is the same basis used
for federal income tax purposes.

FOREIGN CURRENCY CONTRACTS -- Some of the Series may enter into foreign
currency contracts ("contracts"), generally to hedge foreign currency exposure
between trade date and settlement date on security purchases and sales ("spot
hedges") or to minimize foreign currency risk on portfolio securities
denominated in foreign currencies ("position hedges"). All contracts are valued
at the forward currency exchange rate and are marked-to-market daily. When the
contract is open, the change in market value is recorded as net unrealized
appreciation (depreciation) on foreign currency related items. When the contract
is closed, the difference between the value of the contract at the time it was
opened and the value at the time it was closed is recorded as net realized gain
(loss) on foreign currency related items.

The use of forward foreign currency exchange contracts does not eliminate
fluctuations in the underlying prices of the Series' portfolio securities, but
it does establish a rate of exchange that can be achieved in the future.
Although contracts limit the risk of loss due to a decline in the value of the
hedged currency, they also limit any potential gain that might result should the
value of the currency increase. Additionally, the Series could be exposed to the
risk of a previously hedged position becoming unhedged if the counterparties to
the contracts are unable to meet the terms of the contracts. See Note 7 for a
listing of open forward foreign currency exchange contracts as of December 31,
1996.

OPTIONS TRANSACTIONS -- Some of the Series may write covered call options
on portfolio securities. The risk in writing a call option is that the Series
gives up the opportunity of profit if the market price of the security
increases. Option contracts are valued at the closing prices on their exchanges
and the Series will realize a gain or loss upon expiration or closing of the
option transaction. When an option is exercised, the proceeds on sales for a
written call option are adjusted by the amount of premium received.

DOLLAR ROLL TRANSACTIONS -- The Salomon Brothers/ JNL Global Bond Series
and the Salomon Brothers/JNL

31
<PAGE> 185

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

JNL SERIES TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

U.S. Government & Quality Bond Series entered into dollar roll transactions with
respect to mortgage securities in which the Series sells mortgage securities and
simultaneously agrees to repurchase similar (same type, coupon and maturity)
securities at a later date at an agreed upon price. During the period between
the sale and repurchase, the Series forgoes principal and interest paid on the
mortgage securities sold. The Series is compensated by the interest earned on
the cash proceeds of the initial sale and from negotiated fees paid by brokers
offered as an inducement to the Series to "roll over" its purchase commitments.

REPURCHASE AGREEMENTS -- Certain Series in the Trust may invest in
repurchase agreements. A repurchase agreement involves the purchase of a
security by a Series and a simultaneous agreement (generally by a bank or
broker-dealer) to repurchase that security back from the Series at a specified
price and date or upon demand. Securities pledged as collateral for repurchase
agreements are held by the Series custodian bank until the maturity of the
repurchase agreement. Procedures for all repurchase agreements have been
designed to assure that the daily market value of the collateral is in excess of
the repurchase agreement in the event of default.

DISTRIBUTIONS TO SHAREHOLDERS -- The PPM America/JNL Money Market Series
declares dividends daily and pays dividends monthly. For all other Series,
dividends from net investment income are declared and paid annually, but may be
done more frequently to avoid excise tax. Distributions of net realized capital
gains, if any, will be distributed annually. All income, dividends, and capital
gains distributions, if any, on Series shares are reinvested automatically in
additional shares of the Series at the net asset value determined on the first
business day following the record date, unless otherwise requested by the
shareholder.

FEDERAL INCOME TAXES -- The Trust's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute income in amounts that will avoid federal income or
excise taxes for each Series. The Trust may periodically make reclassifications
among certain of its capital accounts as a result of the recognition and
characterization of certain income and capital gain distributions determined
annually in accordance with federal tax regulations which may differ from
generally accepted accounting principles.

For federal income tax purposes, JNL Capital Growth Series, JNL/Alger
Growth Series and JNL/Eagle SmallCap Equity Series have capital loss carryovers
totalling $168,603, $696,137 and $5,034, respectively, expiring in 2004 which
can be used to offset future realized capital gains.

NOTE 3. INVESTMENT MANAGEMENT FEES AND TRANSACTIONS WITH AFFILIATES

JNFSI is the investment advisor of each Series and provides each Series
with professional investment supervision and management. JNFSI provides
accounting services, preparation of financial statements, tax services and
regulatory reports to the Trust. In addition to providing the services described
above, JNFSI selects, contracts with, and compensates sub-advisors to manage the
investment and reinvestment of the assets of the Trust.

As compensation for its services, JNFSI receives a fee from each Series.
The fees, which are accrued daily and payable monthly, are calculated on the
basis of the average daily net assets of each Series. Once the average net
assets of a Series exceed specified amounts, the fee is reduced with respect to
such excess. The following is a schedule of the fees each Series is currently
obligated to pay JNFSI.

</TABLE>

32
<PAGE> 186

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

JNL SERIES TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
$0 TO $50 TO $150 TO $300 TO OVER
(M - MILLIONS) $50 M $150 M $300 M $500 M $500 M
- -------------- ----- ------ ------- ------- ------
<S> <C> <C> <C> <C> <C>
JNL/Eagle Core Equity Series................................ .90% .85% .85% .75% .75%
JNL/Eagle SmallCap Equity Series............................ .95% .95% .90% .90% .85%
JNL/Phoenix Investment Counsel Balanced Series.............. .90% .80% .75% .70% .65%
JNL/Phoenix Investment Counsel Growth Series................ .90% .85% .80% .75% .70%
PPM America/JNL High Yield Bond Series...................... .75% .70% .675% .65% .625%
PPM America/JNL Money Market Series......................... .60% .60% .575% .55% .525%
PPM America/JNL Value Equity Series......................... .75% .70% .675% .65% .625%
Salomon Brothers/JNL Global Bond Series..................... .85% .85% .80% .80% .75%
Salomon Brothers/JNL U.S. Government & Quality Bond
Series.................................................... .70% .70% .65% .60% .55%
T. Rowe Price/JNL Established Growth Series................. .85% .85% .80% .80% .80%
T. Rowe Price/JNL International Equity Investment Series.... 1.10% 1.05% 1.00% .95% .90%
T. Rowe Price/JNL Mid-Cap Growth Series..................... .95% .95% .90% .90% .90%
</TABLE>

As compensation for their services, the sub-advisors receive fees from
JNFSI computed separately for each Series. The fee for each Series is stated as
an annual percentage of the net assets of such Series. The following is a
schedule of the management fees JNFSI currently is obligated to pay the
sub-advisors out of the advisory fee it receives from each Series as specified
above.

<TABLE>
<CAPTION>
$0 TO $50 TO $100 TO $150 TO $300 TO OVER
(M - MILLIONS) $50 M $100 M $150 M $300 M $500 M $500 M-
- -------------- ----- ------ ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
JNL Aggressive Growth Series*.......................... .55% .55% .50% .50% .50% .45%
JNL Capital Growth Series*............................. .55% .55% .50% .50% .50% .45%
JNL Global Equities Series*............................ .55% .55% .50% .50% .50% .45%
JNL/Alger Growth Series................................ .55% .55% .55% .55% .50% .45%
JNL/Eagle Core Equity Series........................... .45% .40% .40% .40% .30% .30%
JNL/Eagle SmallCap Equity Series....................... .50% .50% .50% .45% .45% .40%
JNL/Phoenix Investment Counsel Balanced Series......... .50% .40% .40% .30% .25% .20%
JNL/Phoenix Investment Counsel Growth Series........... .50% .40% .40% .30% .25% .20%
PPM America/JNL High Yield Bond Series................. .25% .20% .20% .175% .15% .125%
PPM America/JNL Money Market Series.................... .20% .15% .15% .125% .10% .075%
PPM America/JNL Value Equity Series.................... .25% .20% .20% .175% .15% .125%
Salomon Brothers/JNL Global Bond Series................ .375% .35% .35% .30% .30% .25%
Salomon Brothers/JNL U.S. Government & Quality Bond
Series............................................... .225% .225% .225% .175% .15% .10%
</TABLE>

<TABLE>
<CAPTION>
$0 TO $20 TO $50 TO $200
$20 M $50 M $200 M M+
----- ------ ------ ----
<S> <C> <C> <C> <C>
T. Rowe Price/JNL Established Growth Series................. .45% .40% .40%** .40%
T. Rowe Price/JNL International Equity Investment Series.... .75% .60% .50% .50%**
T. Rowe Price/JNL Mid-Cap Growth Series..................... .60% .50% .50%** .50%
</TABLE>

* Prior to September 16, 1996, the sub-advisory fees payable to Janus for these
Series were: $0 to $50 million -- .60%; $50 to $150 million -- .55%; $150 to
$300 million -- .45%; $300 to $500 million -- .40%; over $500 million -- .40%.

** When average net assets exceed this amount, the sub-advisory fee asterisked
is applicable to all amounts in this Series.

Trustees not affiliated with Jackson National receive a fee of $2,500 for
each meeting of the Board of Trustees attended as well as certain out of pocket
expenses. No remuneration has been paid by the Trust to any of the officers or
affiliated Trustees. The Trust paid fees of $20,000 to non-affiliated Trustees
for the period ended December 31, 1996.

Each Series is charged for those expenses that are directly attributable to
it, such as advisory, custodian, accounting services and certain shareholder
service fees, while other expenses that cannot be directly attributable to a
Series are allocated in equal proportion to each Series.

33
<PAGE> 187

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

JNL SERIES TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

Currently, the Advisor reimburses each of the Series for annual expenses
(excluding the investment advisory fee) prior to fees paid indirectly in excess
of .15 % of average daily net assets. These voluntary reimbursements may be
modified or discontinued by the Advisor at any time.

During the period ended December 31, 1996, the Series earned credits on
uninvested cash balances held by certain Series at the custodian. These credits
were used to reduce custodian expenses. Of the credits for the JNL/Alger Growth
Series, $10,114 was used to reduce expenses and the remaining $58,958 in credits
are included in interest income.

NOTE 4. SECURITY TRANSACTIONS

During the period ended December 31, 1996, cost of purchases and proceeds
from sales and maturities of securities, other than short-term investments, were
as follows (in thousands):

<TABLE>
<CAPTION>
COST OF PROCEEDS FROM SALES
PURCHASES AND MATURITIES
--------- -------------------
<S> <C> <C>
JNL Aggressive Growth Series................................ $29,706 $12,904
JNL Capital Growth Series................................... 49,090 25,376
JNL Global Equities Series.................................. 42,931 16,034
JNL/Alger Growth Series..................................... 39,382 13,988
JNL/Eagle Core Equity Series................................ 1,739 18
JNL/Eagle SmallCap Equity Series............................ 1,967 355
JNL/Phoenix Investment Counsel Balanced Series.............. 37,329 20,960
JNL/Phoenix Investment Counsel Growth Series................ 36,290 17,825
PPM America/JNL High Yield Bond Series...................... 17,786 11,343
PPM America/JNL Value Equity Series......................... 14,173 1,628
Salomon Brothers/JNL Global Bond Series..................... 18,882 12,774
Salomon Brothers/JNL U.S. Government & Quality Bond
Series.................................................... 21,718 15,072
T. Rowe Price/JNL Established Growth Series................. 26,615 7,325
T. Rowe Price/JNL International Equity Investment Series.... 22,137 2,036
T. Rowe Price/JNL Mid-Cap Growth Series..................... 35,253 6,673
</TABLE>

Included in these transactions were purchases and sales of U.S. Government
obligations of $13,728,073 and $6,229,697 in the JNL/Phoenix Investment Counsel
Balanced Series; $3,608,199 and $1,501,046 in the Salomon Brothers/JNL Global
Bond Series; $11,928,476 and $4,375,100 in the Salomon Brothers/JNL U.S.
Government & Quality Bond Series, respectively.

The federal income tax cost basis and gross unrealized appreciation and
depreciation on investments as of December 31, 1996, were as follows (in
thousands):

<TABLE>
<CAPTION>
TAX GROSS GROSS
COST UNREALIZED UNREALIZED NET UNREALIZED
BASIS APPRECIATION DEPRECIATION APPRECIATION
----- ------------ ------------ --------------
<S> <C> <C> <C> <C>
JNL Aggressive Growth Series............................. $28,099 $2,522 $ (750) $1,772
JNL Capital Growth Series................................ 34,938 4,094 (1,409) 2,685
JNL Global Equities Series............................... 42,410 7,450 (940) 6,510
JNL/Alger Growth Series.................................. 34,480 4,738 (1,078) 3,660
JNL/Eagle Core Equity Series............................. 1,717 103 (24) 79
JNL/Eagle SmallCap Equity Series......................... 1,603 264 (50) 214
JNL/Phoenix Investment Counsel Balanced Series........... 23,695 876 (291) 585
JNL/Phoenix Investment Counsel Growth Series............. 23,812 689 (410) 279
PPM America/JNL High Yield Bond Series................... 13,109 435 (21) 414
PPM America/JNL Value Equity Series...................... 16,392 1,997 (46) 1,951
Salomon Brothers/JNL Global Bond Series.................. 13,367 412 (205) 207
</TABLE>

34
<PAGE> 188

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

JNL SERIES TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAX GROSS GROSS
COST UNREALIZED UNREALIZED NET UNREALIZED
BASIS APPRECIATION DEPRECIATION APPRECIATION
----- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Salomon Brothers/JNL U.S. Government & Quality
Bond Series............................................ $11,871 $ 66 $ (21) $ 45
T. Rowe Price/JNL Established Growth Series.............. 29,030 4,544 (585) 3,959
T. Rowe Price/JNL International Equity Investment
Series................................................. 42,818 6,723 (1,770) 4,953
T. Rowe Price/JNL Mid-Cap Growth Series.................. 42,790 6,400 (1,306) 5,094
</TABLE>

NOTE 5. TRUST TRANSACTIONS

Transactions of trust shares for the period ending December 31, 1996 were
as follows:

<TABLE>
<CAPTION>
SHARES DISTRIBUTIONS SHARES NET
PURCHASED REINVESTED REDEEMED INCREASE
--------- ------------- -------- --------
<S> <C> <C> <C> <C>
JNL Aggressive Growth Series........................... 1,957,943 130,538 (528,956) 1,559,525
JNL Capital Growth Series.............................. 2,355,859 25,885 (517,730) 1,864,014
JNL Global Equities Series............................. 2,508,660 215,630 (698,526) 2,025,764
JNL/Alger Growth Series................................ 3,282,099 -- (686,090) 2,596,009
JNL/Eagle Core Equity Series........................... 198,190 214 (14,346) 184,058
JNL/Eagle SmallCap Equity Series....................... 170,418 -- (1,912) 168,506
JNL/Phoenix Investment Counsel Balanced Series......... 1,895,883 54,735 (327,417) 1,623,201
JNL/Phoenix Investment Counsel Growth Series........... 1,507,501 47,430 (151,986) 1,402,945
PPM America/JNL High Yield Bond Series................. 1,157,121 74,057 (577,564) 653,614
PPM America/JNL Money Market Series.................... 43,176,521 606,298 (26,846,271) 16,936,548
PPM America/JNL Value Equity Series.................... 1,153,246 27,517 (219,113) 961,650
Salomon Brothers/JNL Global Bond Series................ 898,823 81,924 (416,558) 564,189
Salomon Brothers/JNL U.S. Government & Quality Bond
Series............................................... 852,084 32,389 (218,886) 665,587
T. Rowe Price/JNL Established Growth Series............ 2,278,033 118,612 (597,638) 1,799,007
T. Rowe Price/JNL International Equity Investment
Series............................................... 1,947,418 21,151 (131,846) 1,836,723
T. Rowe Price/JNL Mid-Cap Growth Series................ 2,905,453 80,471 (608,146) 2,377,778
</TABLE>

Transactions of trust shares for the period ending March 31, 1996 were as
follows:

<TABLE>
<CAPTION>
SHARES DISTRIBUTIONS SHARES NET
PURCHASED REINVESTED REDEEMED INCREASE
--------- ------------- -------- --------
<S> <C> <C> <C> <C>
JNL Aggressive Growth Series........................... 642,443 17,149 (10,167) 649,425
JNL Capital Growth Series.............................. 675,761 33,752 (18,489) 691,024
JNL Global Equities Series............................. 1,146,694 29,253 (2,063) 1,173,884
JNL/Alger Growth Series................................ 848,221 -- (15,332) 832,889
JNL/Phoenix Investment Counsel Balanced Series......... 422,105 9,270 (5,359) 426,016
JNL/Phoenix Investment Counsel Growth Series........... 191,590 10,203 (390) 201,403
PPM America/JNL High Yield Bond Series................. 575,596 26,997 (1,060) 601,533
PPM America/JNL Money Market Series.................... 7,080,475 234,137 (498,973) 6,815,639
PPM America/JNL Value Equity Series.................... 259,328 5,480 (1,185) 263,623
Salomon Brothers/JNL Global Bond Series................ 586,655 29,530 (6,247) 609,938
Salomon Brothers/JNL U.S. Government & Quality Bond
Series............................................... 293,083 7,487 (2,677) 297,893
T. Rowe Price/JNL Established Growth Series............ 723,123 65,547 (16,467) 772,203
T. Rowe Price/JNL International Equity Investment
Series............................................... 2,155,419 -- (2,549) 2,152,870
T. Rowe Price/JNL Mid-Cap Growth Series................ 783,616 21,614 (19,833) 785,397
</TABLE>

35
<PAGE> 189

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

JNL SERIES TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

NOTE 6. FOREIGN SECURITIES

NOTE 7. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS

At December 31, 1996, the following Series had entered into "position
hedge" forward foreign currency exchange contracts that obligate the Series to
deliver and receive currencies at specified future dates. The unrealized
appreciation (depreciation) of $(4,194), $(71,007), $139,453, and $(15,606) in
the JNL Aggressive Growth Series, JNL Capital Growth Series, JNL Global Equities
Series, and Salomon Brothers/JNL Global Bond Series, respectively, is included
in net unrealized appreciation on foreign currency related items in the
accompanying financial statements. The terms of the open contracts are as
follows:

JNL AGGRESSIVE GROWTH SERIES

<TABLE>
<CAPTION>
SETTLEMENT U.S. $ VALUE U.S. $ VALUE
DATE CURRENCY TO BE DELIVERED AT 12/31/96 CURRENCY TO BE RECEIVED AT 12/31/96
- ---------- ------------------------ ------------ ----------------------- ------------
<C> <S> <C> <C> <C>
4/22/97 99,832 US $ $ 99,832 150,000 Deutsche Mark $ 98,200
4/22/97 150,000 Deutsche Mark 98,200 98,457 US $ 98,457
1/27/97 10,000 Finnish Marka 2,178 2,234 US $ 2,234
4/22/97 15,000 Finnish Marka 3,285 3,292 US $ 3,292
5/27/97 1,000,000 Finnish Marka 219,527 223,140 US $ 223,140
6/4/97 130,000 Finnish Marka 28,554 28,341 US $ 28,341
1/16/97 35,000 British Sterling Pound 59,943 54,600 US $ 54,600
4/22/97 4,000 British Sterling Pound 6,833 6,340 US $ 6,340
5/27/97 120,000 British Sterling Pound 204,783 201,576 US $ 201,576
6/04/97 47,000 British Sterling Pound 80,188 78,729 US $ 78,729
1/27/97 35,786 US $ 35,786 55,000,000 Italian Lire 36,203
1/27/97 70,000,000 Italian Lire 46,076 45,625 US $ 45,625
2/10/97 30,000,000 Italian Lire 19,734 19,526 US $ 19,526
5/12/97 50,000,000 Italian Lire 32,790 32,731 US $ 32,731
5/27/97 35,765 US $ 35,765 55,000,000 Italian Lire 36,056
5/27/97 110,000,000 Italian Lire 72,111 72,746 US $ 72,746
1/27/97 80,000 Swedish Kronor 11,744 12,164 US $ 12,164
3/11/97 235,000 Swedish Kronor 34,565 34,417 US $ 34,417
4/22/97 29,228 US $ 29,228 200,000 Swedish Kronor 29,474
4/22/97 400,000 Swedish Kronor 58,948 60,441 US $ 60,441
5/27/97 190,000 Swedish Kronor 28,046 28,847 US $ 28,847
6/04/97 577,000 Swedish Kronor 85,202 85,985 US $ 85,985
---------- ----------
$1,293,318 $1,289,124
========== ==========

</TABLE>

36
<PAGE> 190

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

JNL SERIES TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

JNL CAPITAL GROWTH SERIES

JNL GLOBAL EQUITIES SERIES

<TABLE>
<CAPTION>
SETTLEMENT U.S. $ VALUE U.S. $ VALUE
DATE CURRENCY TO BE DELIVERED AT 12/31/96 CURRENCY TO BE RECEIVED AT 12/31/96
- ---------- ------------------------ ------------ ----------------------- ------------
<C> <S> <C> <C> <C> <C>
1/16/97 600,000 Swiss Franc $ 448,999 484,539 US $ $ 484,539
1/17/97 150,000 Swiss Franc 112,377 125,408 US $ 125,408
3/04/97 1,400,000 Swiss Franc 1,052,746 1,058,809 US $ 1,058,809
5/12/97 122,000 Swiss Franc 92,398 98,125 US $ 98,125
1/16/97 30,000 Deutsche Mark 19,516 19,840 US $ 19,840
1/17/97 275,000 Deutsche Mark 178,909 183,541 US $ 183,541
1/27/97 400,000 Deutsche Mark 260,402 272,067 US $ 272,067
3/04/97 1,400,000 Deutsche Mark 913,560 900,354 US $ 900,354
1/16/97 750,000 Finnish Marka 163,222 165,213 US $ 165,213
5/12/97 93,000 Finnish Marka 20,395 20,701 US $ 20,701
1/16/97 500,000 French Franc 96,458 97,656 US $ 97,656
1/16/97 164,211 US $ 164,211 100,000 British Sterling Pound 171,265
1/16/97 100,000 British Sterling Pound 171,265 156,000 US $ 156,000
1/17/97 345,213 US $ 345,213 210,000 British Sterling Pound 359,649
1/17/97 210,000 British Sterling Pound 359,649 324,971 US $ 324,971
1/16/97 115,250,000 Japanese Yen 997,420 1,057,276 US $ 1,057,276
3/11/97 9,000,000 Japanese Yen 78,489 80,413 US $ 80,413
6/17/97 21,000,000 Japanese Yen 185,716 189,309 US $ 189,309
1/17/97 6,400,000 Swedish Kronor 939,106 970,727 US $ 970,727
1/27/97 700,000 Swedish Kronor 102,758 106,727 US $ 106,727
11/03/97 118,000 South African Rand 22,925 22,597 US $ 22,597
---------- ----------
$6,725,734 $6,865,187
========== ==========
</TABLE>

37
<PAGE> 191

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

JNL SERIES TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------

SALOMON BROTHERS/JNL GLOBAL BOND SERIES

NOTE 8. RECLASSIFICATION OF PERMANENT BOOK-TO-TAX DIFFERENCES

As a result of permanent book-to-tax differences, the following
reclassifications were made to the statement of assets and liabilities. For the
period ended December 31, 1996, accumulated net realized gain (loss) on
investments and foreign currency related items was increased (decreased) by
$14,933, $29,422, $5,572, ($188), ($50,543), $2,022, $13,147, ($156,109) and
($39,044), respectively, for the JNL Aggressive Growth Series, JNL Capital
Growth Series, JNL Global Equities Series, JNL/Phoenix Investment Counsel
Balanced Series, Salomon Brothers/JNL Global Bond Series, Salomon Brothers/JNL
U.S. Government & Quality Bond Series, T. Rowe Price/JNL Established Growth
Series, T. Rowe Price/JNL International Equity Investment Series and T. Rowe
Price/JNL Mid-Cap Growth Series; undistributed net investment income was
increased (decreased) by ($14,933), ($29,422), ($5,572), $3,590, $1,017, $188,
$50,543, ($2,022), ($13,147), $156,109 and $139,001, respectively, for JNL
Aggressive Growth Series, JNL Capital Growth Series, JNL Global Equities Series,
JNL/Alger Growth Series, JNL/Eagle SmallCap Equity Series, JNL/Phoenix
Investment Counsel Balanced Series, Salomon Brothers/JNL Global Bond Series,
Salomon Brothers/JNL U.S. Government & Quality Bond Series, T. Rowe Price/JNL
Established Growth Series, T. Rowe Price/JNL International Equity Investment
Series and T. Rowe Price/JNL Mid-Cap Growth Series; and net increases
(decreases) of ($3,590), ($1,017) and ($99,957), respectively, for the JNL/Alger
Growth Series, JNL/Eagle SmallCap Equity Series and T. Rowe Price/JNL Mid-Cap
Growth Series, were reclassified in the Series' paid-in capital.

38
<PAGE> 192

JNL AGGRESSIVE GROWTH SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 83.26%
- -----------------------------------------
FINLAND -- 0.81%
- -----------------------------------------
DURABLE GOODS -- 0.81%
Metra Oy, B Shares..................... 4,307 $ 241,567
FRANCE -- 0.31%
- -----------------------------------------
COMPUTER SERVICES -- 0.31%
Axime (a).............................. 806 93,206
ITALY -- 0.43%
- -----------------------------------------
BANKS -- 0.06%
Banca Popolare Di Bergamo.............. 1,047 17,254
TELECOMMUNICATIONS -- 0.37%
Telecom Italia Mobile (a).............. 43,732 110,555
-----------
Total Italy.......................... 127,809
MEXICO -- 0.05%
- -----------------------------------------
BROKERAGE -- 0.05%
Grupo Financiero Inbursa, S.A. de
C.V. .................................. 4,300 14,694
SWEDEN -- 0.66%
- -----------------------------------------
HOLDING COMPANY -- 0.28%
Kinnevik AB, B Shares.................. 3,018 83,195
SECURITY SYSTEMS -- 0.22%
Securitas AB, B Shares................. 2,307 67,148
TELECOMMUNICATIONS -- 0.16%
Netcom Systems AB (a).................. 2,940 47,636
-----------
Total Sweden......................... 197,979
UNITED KINGDOM -- 1.74%
- -----------------------------------------
BUSINESS SERVICES -- 1.24%
Rentokil Group......................... 49,326 371,825
DRUGS -- 0.06%
Glaxo Wellcome......................... 1,128 18,359
FINANCIAL -- 0.44%
Barclays............................... 7,653 131,177
-----------
Total United Kingdom................. 521,361
UNITED STATES -- 79.26%
- -----------------------------------------
AEROSPACE & AIRCRAFT -- 0.66%
U.S. Robotics Corp. (a) ............... 2,725 196,200
APPAREL -- 3.86%
Abercrombie & Fitch Co. (a)............ 15,225 251,212
Nike, Inc., Class B.................... 6,975 416,756
Nordstrom, Inc. ....................... 1,150 40,753
Gucci Group N.V.-N.Y................... 6,650 424,769
Tommy Hilfiger Corp. (a)............... 400 19,200
-----------
1,152,690
BANKS -- 7.50%
Chase Manhattan Corp. ................. 3,375 301,219
Wells Fargo & Co. ..................... 7,191 1,939,772
-----------
2,240,991
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------
UNITED STATES (CONTINUED)
- -----------------------------------------
BUSINESS SERVICES -- 1.51%
Intelliquest Information Group, Inc.
(a).................................... 6,750 $ 153,563
Lamar Advertising Co. (a).............. 5,475 132,769
Outdoor Systems Inc. (a)............... 5,175 145,547
Quintiles Transnational Corp. (a)...... 75 4,969
West Teleservices Corp. (a)............ 625 14,219
-----------
451,067
CHEMICALS -- 3.70%
Lilly Eli & Co. ....................... 7,475 545,675
Monsanto Co. .......................... 8,950 347,931
Praxair, Inc. ......................... 1,300 59,963
SmithKline Beecham PLC -- ADR.......... 2,225 151,300
-----------
1,104,869
COMPUTERS & TECHNOLOGY -- 23.73%
Baan Co NVF (a)........................ 425 14,769
Black Box Corp. (a).................... 825 34,031
Cisco Systems, Inc. (a)................ 16,025 1,019,591
Documentum, Inc. (a)................... 950 32,062
Ecsoft Group, PLC (a).................. 4,800 46,200
First Data Corp. ...................... 16,100 587,650
HBO & Co. ............................. 16,525 981,172
HNC Software, Inc. (a)................. 6,600 206,250
Indus Group, Inc. (a).................. 3,775 97,206
Intel Corp. ........................... 3,150 412,453
Intelligroup, Inc. (a)................. 20,000 220,000
International Business Machines
Corp. ............................... 3,250 490,750
JDA Software, Inc. (a)................. 6,200 176,700
Keane, Inc. (a)........................ 10,000 317,500
Meta Group, Inc. (a)................... 9,150 247,050
Microsoft Corp. (a).................... 1,500 123,938
Netscape Communications Corp. (a)...... 5,600 318,500
Oracle Systems Corp. (a)............... 1,650 68,887
Parametric Technology Corp. (a)........ 9,875 507,328
Peoplesoft, Inc. (a)................... 11,550 553,678
Sapient Corp. (a)...................... 800 33,700
Sun Microsystems, Inc. (a)............. 9,750 250,453
Verifone, Inc. (a)..................... 3,000 88,500
Xylan Corp. (a)........................ 9,150 258,488
-----------
7,086,856
CONSTRUCTION -- 0.12%
Fastenal Co. .......................... 825 37,744
DRUGS -- 2.31%
Centocor, Inc (a)...................... 14,700 525,525
Glaxo Wellcome -- ADR.................. 1,175 37,306
Pharmaceutical Product Development,
Inc. (a)............................. 5,050 127,513
-----------
690,344
</TABLE>

See notes to the financial statements.

39
<PAGE> 193

JNL AGGRESSIVE GROWTH SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------
UNITED STATES (CONTINUED)
- -----------------------------------------
ELECTRONICS -- 2.79%
Advanced Micro Devices, Inc. (a)....... 950 $ 24,462
Analog Devices, Inc. (a)............... 8,425 285,397
Cambridge Technology Partners, Inc.
(a).................................. 425 14,264
Etec Systems, Inc. (a)................. 750 28,688
Pittway Corp., Class A (a)............. 8,975 480,163
-----------
832,974
FINANCIAL SERVICES -- 5.05%
Associates First Capital Corp. ........ 7,025 309,978
Concord EFS, Inc. (a).................. 2,775 78,394
First USA Paymentech, Inc. (a)......... 29,725 1,006,935
National Processing, Inc. (a).......... 5,575 89,200
Schwab, Charles Corp. ................. 750 24,000
-----------
1,508,507
FOOD SERVICE & RESTAURANT -- 0.05%
Papa John's International, Inc. (a).... 412 13,905
GAMES & TOYS -- 0.15%
Galoob Toys, Inc. (a).................. 3,125 43,750
HEALTH PRODUCTS -- 3.62%
Bristol-Myers Squibb Co. .............. 2,375 258,281
Fresenius Medical Care -- ADR (a)...... 8,225 231,328
Omnicare, Inc. ........................ 12,275 394,334
Warner Lambert Co. .................... 2,650 198,750
-----------
1,082,693
HOTEL & MOTEL -- 2.83%
Doubletree Corp. (a)................... 5,725 257,625
Extended Stay America, Inc. (a)........ 950 19,119
Hospitality Franchise System, Inc.
(a).................................. 9,500 567,625
-----------
844,369
INSURANCE -- 1.62%
Compdent Corp. (a)..................... 5,300 186,825
SunAmerica, Inc. ...................... 1,700 75,438
UNUM Corp. ............................ 3,075 222,169
-----------
484,432
MACHINERY -- 1.00%
Rofin-Sinar Technologies, Inc. (a)..... 25,450 299,037
MEDICAL SERVICES & SUPPLIES -- 0.99%
Target Therapeutics, Inc. (a).......... 7,025 295,050
MINING -- 1.00%
Potash Corp. of Saskatchewan, Inc. .... 3,520 299,200
OFFICE EQUIPMENT & SUPPLIES -- 0.16%
Danka Business Systems PLC............. 1,400 49,525
OIL & GAS -- 1.26%
Triton Energy Corp. (a)................ 7,750 375,875
REAL ESTATE -- 0.26%
Redwood Trust, Inc. ................... 2,050 76,363
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------
UNITED STATES (CONTINUED)
- -----------------------------------------
RECREATION -- 0.07%
Universal Outdoor Holdings, Inc. (a)... 900 $ 21,150
RESTAURANTS -- 0.15%
Planet Hollywood International, Inc.
(a).................................... 2,325 45,919
RETAIL -- 0.20%
Linen N Things, Inc. (a)............... 3,050 59,856
TELECOMMUNICATIONS -- 13.62%
Ascend Communications, Inc. (a)........ 6,100 378,962
Cincinnati Bell, Inc. ................. 12,250 754,906
Comnet Cellular, Inc. (a).............. 1,750 48,781
Lucent Technologies, Inc. ............. 4,000 185,000
MFS Communications Co., Inc. (a)....... 19,747 1,076,212
Millicom International Cellular S.A.
(a).................................. 1,050 33,731
Nokia Corp. ........................... 4,775 275,159
Paging Network, Inc. (a)............... 5,900 89,975
Palmer Wireless, Inc. (a).............. 5,800 60,900
Premiere Technologies, Inc. (a)........ 1,225 30,625
Pricellular Corp., Class A (a)......... 6,375 73,312
Telecomunicacoes Brasileiras SA........ 1,475 112,837
Teletech Holdings, Inc. (a)............ 12,600 327,600
WorldCom, Inc. (a)..................... 23,800 620,287
-----------
4,068,287
TRANSPORTATION -- 0.26%
Wisconsin Central Transportation Corp.
(a).................................... 1,950 77,269
WHOLESALE -- 0.79%
Alco Standard Corp. (a)................ 4,575 236,184
-----------
Total United States.................. 23,675,106
-----------
Total Common Stocks
(cost $23,035,935)............... 24,871,722
-----------

</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 16.74%
- --------------------------------------
U.S. TREASURY BILLS -- 0.67%
5.11%, 01/09/1997................... $ 200,000 199,773
COMMERCIAL PAPER -- 16.07%
Federal Home Discount Note
6.50%, 01/02/1997................. 4,800,000 4,799,133
----------
Total Short Term Investments
(cost $4,998,906)............. 4,998,906
----------
TOTAL INVESTMENTS -- 100%
- --------------------------------------
(cost $28,034,841).................. $29,870,628
==========
</TABLE>

- -------------------------
(a) Non-income producing.

See notes to the financial statements.

40
<PAGE> 194

JNL CAPITAL GROWTH SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 89.31%
- ----------------------------------------
FRANCE -- 0.47%
- ----------------------------------------
CONSUMER PRODUCTS -- 0.47%
Grand Optical Photoservice............ 1,086 $ 176,029
UNITED KINGDOM -- 12.61%
- ----------------------------------------
BUSINESS SERVICES -- 2.89%
Rentokil Group........................ 144,216 1,087,117
CONFECTIONS & BEVERAGES -- 4.01%
PizzaExpress PLC...................... 166,850 1,507,853
FOOD SERVICE/RESTAURANT -- 5.71%
J.D. Wetherspoon PLC.................. 108,196 2,150,203
-----------
Total United Kingdom................ 4,745,173
UNITED STATES -- 76.23%
- ----------------------------------------
AUTOMOBILES & PARTS -- 0.69%
O'Reilly Automotive, Inc.(a).......... 8,125 260,000
BANKS -- 0.51%
Fifth Third Bancorp................... 2,700 169,594
First Empire State Corp. ............. 75 21,600
-----------
191,194
BROADCASTING & COMMUNICATIONS -- 0.80%
Univision Communications, Inc. (a).... 8,100 299,700
BUILDING MATERIALS -- 1.50%
Barnett, Inc.(a)...................... 7,675 209,144
Boston Scientific Corp.(a)............ 5,950 357,000
-----------
566,144
BUSINESS SERVICES -- 4.76%
CUC International, Inc.(a)............ 39,388 935,465
Paychex, Inc. ........................ 4,075 209,608
Pet Food Warehouse, Inc.(a)........... 80,800 338,350
Profit Recovery Group International,
Inc.(a)............................. 11,525 184,400
Robert Half International, Inc.(a).... 3,575 122,891
-----------
1,790,714
COMPUTERS & SOFTWARE -- 0.75%
Sanchez Computer Associates,
Inc.(a)............................... 425 3,347
Safeguard Scientifics, Inc.(a)........ 8,800 279,400
-----------
282,747
CONSUMER PRODUCTS -- 4.13%
CoinMachine Laundry Corp.(a).......... 48,150 866,700
Culligan Water Technologies,
Inc.(a)............................. 16,925 685,462
-----------
1,552,162
CONTAINERS -- 1.93%
Sealed Air Corp.(a)................... 17,475 727,399
DRUGS -- 0.98%
Depotech Corp.(a)..................... 11,425 187,084
Teva Pharmaceutical Industries --
ADR................................. 3,600 180,900
-----------
367,984
ELECTRONICS -- 0.49%
Littlefuse, Inc.(a)................... 3,825 185,513
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- ----------------------------------------
UNITED STATES (CONTINUED)
- ----------------------------------------
FINANCIAL SERVICES -- 6.90%
APS Holding Corp.(a).................. 7,950 $ 123,225
Associates First Capital Corp. ....... 8,425 371,753
Concord EFS, Inc.(a).................. 4,475 126,419
First USA Paymentech, Inc.(a)......... 8,725 295,559
Insignia Financial Group, Inc.(a)..... 57,525 1,294,312
Schwab, Charles Corp. ................ 12,050 385,600
-----------
2,596,868
FOOD SERVICE -- 4.18%
JP Foodservice, Inc.(a)............... 14,750 411,156
Papa John's International, Inc.(a).... 34,387 1,160,561
-----------
1,571,717
HEALTH PRODUCTS & CARE -- 0.25%
Forest Labs, Inc.(a).................. 2,825 92,519
HOTEL & MOTEL -- 6.59%
Choice Hotels Holdings, Inc.(a)....... 22,550 397,444
Doubletree Corp.(a)................... 8,000 360,000
Hospitality Franchise Systems,
Inc.(a)............................. 28,825 1,722,294
-----------
2,479,738
HOUSING -- 1.24%
Karrington Health, Inc.(a)............ 12,775 159,688
Omnicare, Inc. ....................... 9,575 307,597
-----------
467,285
INSURANCE -- 2.22%
Protective Life Corp. ................ 11,775 469,528
UICI(a)............................... 11,250 365,625
-----------
835,153
MACHINERY -- 0.67%
MSC Industrial Direct Co., Inc.(a).... 6,850 253,450
MEDICAL SERVICES & SUPPLIES -- 0.73%
Fresenius Medical Care -- ADR (a)..... 9,750 274,219
MINING -- 1.38%
Minerals Technologies, Inc. .......... 12,700 520,700
OFFICE EQUIPMENT & SUPPLIES -- 2.82%
Viking Office Products, Inc. (a)...... 39,725 1,060,161
RECREATION -- 2.10%
Family Golf Centers, Inc.(a).......... 26,200 789,275
RESTAURANTS -- 0.46%
Planet Hollywood International,
Inc.(a)............................... 8,800 173,800
RETAIL -- 13.37%
Fastenal Co. ......................... 55,375 2,533,406
Global DirectMail Corp.(a)............ 40,025 1,746,091
Petco Animal Supplies(a).............. 36,100 749,075
-----------
5,028,572
TELECOMMUNICATIONS -- 11.22%
Cincinnati Bell, Inc. ................ 2,900 178,713
Comnet Cellular, Inc.(a).............. 9,950 277,356

</TABLE>

See notes to the financial statements.

41
<PAGE> 195

JNL CAPITAL GROWTH SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- ----------------------------------------
UNITED STATES (CONTINUED)
- ----------------------------------------
TELECOMMUNICATIONS (CONTINUED)
- ----------------------------------------
Millicom International Cellular
SA(a)............................... 11,250 $ 361,403
Omnipoint Corp.(a).................... 27,650 532,263
Paging Network, Inc.(a)............... 115,625 1,763,281
Pricellular Corp. -- Class A(a)....... 34,207 393,381
Teletech Holdings, Inc.(a)............ 27,450 713,700
-----------
4,220,097
TRANSPORTATION -- 3.45%
Wisconsin Central Transportation
Corp.(a).............................. 32,725 1,296,727
UTILITIES -- 2.11%
Trigen Energy Corp. .................. 27,675 795,656
-----------
Total United States................. 28,679,494
-----------
Total Common Stocks
(cost $30,999,299).............. 33,600,696
-----------
OPTIONS -- 0.19%
- ----------------------------------------
WARRANTS -- 0.19%
Littlefuse, Inc. (a) (Expire
12/27/2001)
(cost $48,137)...................... 1,850 73,075
-----------
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 10.50%
- -------------------------------------
U.S. TREASURY BILL -- 0.40%
5.11%, 01/09/1997.................. $ 150,000 $ 149,830
COMMERCIAL PAPER -- 10.10%
Federal Home Discount Note
6.50%, 01/02/1997................ 3,800,000 3,799,314
----------
Total Short-Term Investments
(cost $3,949,144)............ 3,949,144
----------
TOTAL INVESTMENTS -- 100%
- -------------------------------------
(cost $34,996,580)................. $37,622,915
==========
</TABLE>

- -------------------------
(a) Non-income producing.

See notes to the financial statements.

42
<PAGE> 196

JNL GLOBAL EQUITIES SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 98.51%
- --------------------------------------
AUSTRALIA -- 1.75%
- --------------------------------------
HOTELS -- 1.07%
Crown Ltd.(a)....................... 250,726 $ 524,131
LEISURE -- 0.68%
Aristocrat Leisure Ltd.............. 127,384 331,091
----------
Total Australia................... 855,222
BELGIUM -- 0.50%
- --------------------------------------
BANKS -- 0.18%
Credit Communal Holding Dexia(a).... 962 87,778
TELECOMMUNICATIONS -- 0.32%
Telinfo SA(a)....................... 3,799 154,941
----------
Total Belgium..................... 242,719
BRAZIL -- 0.26%
- --------------------------------------
TOBACCO -- 0.26%
Souza Cruz SA....................... 19,000 124,704
FINLAND -- 3.45%
- --------------------------------------
COMPUTERS & SOFTWARE -- 0.69%
Tietotehdas Oy, Class B............. 3,978 336,314
CONSUMER PRODUCTS -- 0.67%
Amer Group Ltd...................... 6,327 130,666
Metra AB............................ 3,566 200,006
----------
330,672
FOOD SERVICE -- 2.09%
Huhtamaki Oy........................ 14,290 664,796
Raision Tehtaat Oy.................. 5,678 357,961
----------
1,022,757
----------
Total Finland..................... 1,689,743
FRANCE -- 2.39%
- --------------------------------------
BUSINESS SERVICES -- 1.18%
Cap Gemini.......................... 6,284 303,875
Sligos.............................. 2,081 272,734
----------
576,609
COMPUTER SERVICES -- 0.77%
Axime(a)............................ 3,290 380,457
CONSUMER GOODS -- 0.41%
Grand Optical-Photoservice.......... 1,223 198,235
FURNITURE -- 0.02%
Moulinex(a)......................... 263 6,057
RECREATION -- 0.01%
Club Mediterranee................... 86 5,582
----------
Total France...................... 1,166,940
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
GERMANY -- 5.00%
- --------------------------------------
APPAREL -- 0.90%
Eurobike AG (a)..................... 2,408 $ 73,548
Wolford AG.......................... 3,016 364,867
----------
438,415
CHEMICALS -- 2.95%
BASF AG............................. 14,047 541,140
SGL Carbon AG....................... 1,338 168,685
Hoechst AG.......................... 15,500 732,291
----------
1,442,116
RETAIL -- 1.15%
Adidas AG........................... 6,531 564,481
----------
Total Germany..................... 2,445,012
HONG KONG -- 0.28%
- --------------------------------------
BUILDING EQUIPMENT -- 0.02%
New World Infrastructure Ltd.(a).... 3,400 9,935
HOLDING COMPANY -- 0.26%
First Pacific Company Ltd.(a)....... 35,000 45,478
JCG Holdings Limited................ 86,000 83,949
----------
129,427
----------
Total Hong Kong................... 139,362
INDONESIA -- 0.21%
- --------------------------------------
CONFECTIONS & BEVERAGES -- 0.21%
HM Sampoerna........................ 19,000 101,355
ITALY -- 1.91%
- --------------------------------------
AGRICULTURAL MACHINERY -- 0.59%
Parmalat Finanziaria SPA............ 188,469 288,232
FINANCIAL SERVICES -- 0.34%
BCA Pop Di Milano................... 33,268 168,862
MANUFACTURING -- 0.41%
Pagnossin SPA....................... 54,000 200,053
TELECOMMUNICATIONS -- 0.57%
Telecom Italia Mobile(a)............ 56,638 143,182
Telecom Italia SPA.................. 52,359 135,988
----------
279,170
----------
Total Italy....................... 936,317
JAPAN -- 4.90%
- --------------------------------------
AUTOMOBILE & PARTS -- 0.65%
Honda Motor Co...................... 8,000 228,650
Isuzu Motors Limited................ 14,000 62,257
Yamaha Motor Co..................... 3,000 26,941
----------
317,848

</TABLE>

See notes to the financial statements.

43
<PAGE> 197

JNL GLOBAL EQUITIES SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
JAPAN -- (CONTINUED)
- --------------------------------------
BUILDING EQUIPMENT -- 0.21%
Kawasaki Heavy Industries........... 25,000 $ 103,402
COMPUTERS & SOFTWARE -- 1.02%
NTT Data Communications Systems
Company(a)........................ 17 497,625
DRUGS -- 0.66%
Eisai Limited....................... 11,000 216,562
Takeda Chemical Industries.......... 5,000 104,913
----------
321,475
ELECTRONICS -- 0.19%
Sony Corp........................... 1,400 91,754
HOUSEHOLD FURNITURE & APPLIANCES --
0.07%
Amway Japan Limited................. 1,100 35,334
REAL ESTATE -- 0.36%
Mitsubishi Estate Co. Ltd........... 12,000 123,305
Mitsui Fudosan Co................... 6,000 60,098
----------
183,403
RETAIL -- 0.79%
Credit Saison Co.................... 9,900 221,406
Hankyu Department Stores............ 6,000 59,580
Isetan.............................. 8,000 103,618
----------
384,604
TELECOMMUNICATIONS -- 0.95%
Nippon Telegraph & Telephone
Corp.............................. 61 462,464
----------
Total Japan....................... 2,397,909
NETHERLANDS -- 4.92%
- --------------------------------------
BUILDING & CONSTRUCTION -- 0.33%
Hunter Douglas N.V.................. 2,433 164,173
COMPUTERS & SOFTWARE -- 1.16%
Getronics N.V....................... 20,865 566,793
CONSUMER PRODUCTS -- 0.91%
Nutricia Verenigde Bedrijven........ 2,929 445,330
ELECTRONICS -- 0.88%
Philips Electronics................. 10,617 430,460
ENTERTAINMENT -- 0.25%
Endomol Entertainment (a)........... 3,686 122,760
OFFICE EQUIPMENT & SUPPLIES -- 0.47%
Oce Grinten......................... 2,105 228,727
PRINTING & PUBLISHING -- 0.92%
Wolters Kluwer N.V.................. 3,374 448,499
----------
Total Netherlands................. 2,406,742
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
NORWAY -- 0.79%
- --------------------------------------
ENVIRONMENTAL SERVICES -- 0.31%
Tomra System AS..................... 9,800 $ 151,340
TELECOMMUNICATIONS -- 0.48%
Tandberg AS (a)..................... 7,635 235,813
----------
Total Norway...................... 387,153
PHILIPPINES -- 0.35%
- --------------------------------------
BUILDING & CONSTRUCTION -- 0.35%
Hi-Cement Corp.(a).................. 521,500 172,511
PORTUGAL -- 0.34%
- --------------------------------------
BUILDING & CONSTRUCTION -- 0.34%
Cimpor-Cimentos de Portugal -- SA... 7,656 164,822
SINGAPORE -- 1.28%
- --------------------------------------
TELECOMMUNICATIONS -- 1.28%
Datacraft Asia Ltd.................. 376,000 627,920
SOUTH AFRICA -- 0.10%
- --------------------------------------
METALS & MINING -- 0.10%
De Beers Centenary Link AG.......... 1,727 49,464
SOUTH KOREA -- 0.01%
- --------------------------------------
BANKS -- 0.01%
Kookmin Bank........................ 324 5,945
SPAIN -- 0.30%
- --------------------------------------
COMMERCIAL SERVICES -- 0.30%
Prosegur CIA de Seguridad SA(a)..... 15,975 147,660
SWEDEN -- 10.35%
- --------------------------------------
BANKS -- 0.55%
Bure Investment AB.................. 9,821 116,644
Nordbanken AB....................... 3,110 94,168
Sparbanken Sverige AB............... 3,416 58,604
----------
269,416
BUILDING & CONSTRUCTION -- 0.19%
Incentive AB........................ 1,278 92,759
COMMERCIAL SERVICES -- 1.60%
Securitas AB, Class B............... 26,891 782,689
COMPUTERS & SOFTWARE -- 1.76%
Enator AB(a)........................ 4,965 127,039
Enator AB(a)........................ 993 25,044
Frontec AB, Class B(a).............. 9,481 164,043
WM - Data AB........................ 6,301 545,109
----------
861,235
ELECTRONICS -- 1.96%
Assa Abloy AB(a).................... 52,840 960,741

</TABLE>

See notes to the financial statements.

44
<PAGE> 198

JNL GLOBAL EQUITIES SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
SWEDEN -- (CONTINUED)
- --------------------------------------
HEALTH PRODUCTS & CARE -- 2.49%
Althin Medical AB, Class B.......... 3,964 $ 86,024
Nobel Bio-Care AB................... 17,824 313,623
Medical Invest Svenska AB -- Ser. A
(a)............................... 3,711 97,946
Medical Invest Svenska AB -- Ser. B
(a)............................... 27,118 719,711
----------
1,217,304
HOLDING COMPANY -- 0.43%
Kinnevik AB......................... 7,623 210,139
INDUSTRIAL MACHINERY -- 0.05%
Atlas Copco AB...................... 949 22,960
NON-FERROUS METALS -- 0.10%
Sandvik AB.......................... 1,847 49,832
REAL ESTATE -- 0.96%
Tornet Fastighets AB(a)............. 30,814 469,898
TELECOMMUNICATIONS -- 0.26%
Ericsson (LM) Tel................... 4,046 125,179
----------
Total Sweden...................... 5,062,152
SWITZERLAND -- 6.75%
- --------------------------------------
BANKS -- 1.03%
Credit Suisse Group................. 4,894 502,746
BUILDING & CONSTRUCTION -- 0.37%
Sulzer AG........................... 313 180,761
BUSINESS SERVICES -- 0.29%
Fotolabo S.A........................ 84 32,634
SGS Holding......................... 44 108,151
----------
140,785
DRUGS -- 4.55%
Novartis AG (a)..................... 1,029 1,178,758
Roche Holding AG.................... 135 1,050,448
----------
2,229,206
INSURANCE -- 0.21%
SCHW Ruckversicher.................. 98 104,626
TRANSPORTATION -- 0.30%
SwissAir............................ 180 145,641
----------
Total Switzerland................. 3,303,765
THAILAND -- 0.14%
- --------------------------------------
BANKS -- 0.14%
Bangkok Bank Public Co. Ltd......... 7,200 69,625
UNITED KINGDOM -- 23.09%
- --------------------------------------
AUTOMOBILES -- 0.09%
Mahindra & Mahindra Ltd............. 3,807 42,829
BUSINESS SERVICES -- 8.59%
- --------------------------------------
CMG, (a)............................ 35,955 520,634
Freepages Group PLC (a)............. 123,635 91,079
Hays PLC............................ 132,309 1,273,902
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
UNITED KINGDOM -- (CONTINUED)
- --------------------------------------
BUSINESS SERVICES -- (CONTINUED)
- --------------------------------------
Page, Michael Group................. 8,729 $ 62,062
Rentokil Group...................... 299,007 2,253,950
----------
4,201,627
CHEMICALS -- 0.16%
Victrex............................. 17,447 80,704
COMPUTERS & SOFTWARE -- 2.12%
BTG................................. 58,900 459,131
Misys PLC........................... 26,216 498,989
Sema Group Systems AG............... 4,350 81,232
----------
1,039,352
CONSUMER PRODUCTS -- 0.37%
Compass Group PLC................... 7,436 78,984
London International Group.......... 36,736 103,845
----------
182,829
DRUGS -- 0.89%
Glaxo Wellcome PLC.................. 10,168 165,489
SmithKline Beecham -- ADR........... 19,464 269,435
----------
434,924
ELECTRONICS -- 1.07%
Electrocomponents................... 66,131 522,296
ENTERTAINMENT -- 0.77%
London Clubs International PLC...... 72,264 376,362
FINANCIAL -- 1.68%
Barclays............................ 19,057 326,649
JBA Holdings PLC.................... 25,709 235,640
Lloyd's TSB Group................... 35,000 258,438
----------
820,727
FOOD SERVICE -- 0.75%
Harvey Nichols PLC.................. 49,582 295,606
Wetherspoon PLC..................... 3,662 72,776
----------
368,382
MANUFACTURING -- 0.88%
Lucas Varity PLC, (a)............... 112,800 430,947
METALS & MINING -- 1.46%
Powerscreen International, PLC...... 73,539 711,830
PRINTING & PUBLISHING -- 2.15%
Dorling Kindersley.................. 7,795 54,720
EMAP................................ 2,114 26,674
Lagardere S.C.A..................... 25,512 700,185
Pearson PLC......................... 5,614 71,654
WPP Group........................... 45,864 198,794
----------
1,052,027
RETAIL -- 1.23%
ASDA Group.......................... 228,750 482,033
Thorn PLC........................... 27,165 117,744
----------
599,777

</TABLE>

See notes to the financial statements.

45
<PAGE> 199

JNL GLOBAL EQUITIES SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
UNITED KINGDOM -- (CONTINUED)
- --------------------------------------
TRANSPORTATION -- 0.88%
Stagecoach Holdings................. 35,805 $ 429,390
----------
Total United Kingdom.............. 11,294,003
UNITED STATES -- 29.44%
- --------------------------------------
AGRICULTURAL EQUIPMENT -- 0.58%
New Holland NV (a).................. 13,500 281,812
APPAREL -- 0.24%
Nike, Inc. Class B.................. 1,925 115,019
AUTOMOBILE & PARTS -- 0.33%
Lucas Varity PLC -- ADR (a)......... 425 16,150
Tata Engineering.................... 8,025 75,490
Tata Engineering & Locomotive Co.
Limited (144a).................... 700 6,585
Tata Engineering & Locomotive Co.
Limited (144a).................... 5,968 63,410
----------
161,635
BANKS -- 2.69%
Banco Frances Del Rio La Plata --
ADR............................... 7,791 214,259
Citicorp............................ 1,200 123,600
Wells Fargo & Co.................... 3,633 980,002
----------
1,317,861
BROADCAST & COMMUNICATIONS -- 0.93%
Canwest Global Communications
Corp.............................. 6,150 63,037
Grupo Televisa SA................... 9,825 251,766
TV Filme, Inc.(a)................... 10,825 138,019
----------
452,822
BUSINESS SERVICES -- 1.04%
Select Appointments Holdings PLC --
ADR (a)........................... 44,300 509,450
COMPUTERS & TECHNOLOGY -- 3.19%
Cisco Systems, Inc. (a)............. 3,175 202,009
Dassault Systemes SA(a)............. 1,975 91,344
First Data Corp..................... 7,200 262,800
International Business Machines
Corp.............................. 3,475 524,725
Parametric Technology Corp. (a)..... 9,050 464,944
SunGuard Data Systems, Inc.(a)...... 400 15,800
----------
1,561,622
CONFECTIONS & BEVERAGES -- 0.45%
Pepsico, Inc........................ 7,500 219,375
DRUGS -- 0.63%
Elan Corp.(a)....................... 9,325 310,056
ELECTRICAL -- 0.80%
Raychem Corp........................ 2,900 232,363
UCar International, Inc.(a)......... 4,175 157,084
----------
389,447
ELECTRONICS -- 1.58%
Philips Electronics................. 19,324 772,960
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
UNITED STATES -- (CONTINUED)
- --------------------------------------
ENERGY -- 0.18%
Gazprom -- ADR (144a) (a)........... 2,750 $ 48,813
Mosenergo -- ADR (144a) (a)......... 1,325 40,148
----------
88,961
FINANCIAL SERVICES -- 0.15%
Associates First Capital Corp....... 1,650 72,806
FOOD SERVICE/RESTAURANT -- 0.13%
Disco SA(a)......................... 2,300 64,975
HEALTH PRODUCTS & CARE -- 2.75%
Grupo Casa Autrey -- ADR............ 11,950 233,025
Pfizer Inc.......................... 4,100 339,788
Physio -- Control International
Corp. (a)......................... 12,925 290,813
SmithKline Beecham -- ADR........... 4,150 282,200
Vivra, Inc. (a)..................... 7,175 198,209
----------
1,344,035
HOTEL & MOTEL -- 0.48%
Hospitality Franchise Systems,
Inc.(a)........................... 1,100 65,725
Indian Hotels Co.(a)................ 5,161 102,067
Mandarin Oriental International
Ltd............................... 47,200 66,552
----------
234,344
MACHINERY -- 2.15%
Pfeiffer Vacuum Technology AG(a).... 18,825 338,850
Rofin-Sinar Technologies, Inc.(a)... 60,675 712,931
----------
1,051,781
MEDICAL-HOSPITAL SERVICES -- 1.70%
Fresenius Medical Care -- ADR(a).... 29,625 833,203
OFFICE EQUIPMENT & SUPPLIES -- 0.80%
Danka Business Systems PLC.......... 11,100 392,663
OIL -- 0.92%
Bouygues Offshore SA, (a)........... 21,225 273,272
Oil Co Lukoil (a)................... 1,075 48,295
Tatneft -- ADR (a).................. 2,750 126,500
----------
448,067
RETAIL -- 0.93%
Santa Isabel SA..................... 2,900 65,612
Gucci Group N.V.-N.Y................ 6,100 389,637
----------
455,249
TELECOMMUNICATIONS -- 5.74%
Airtouch Communications, Inc.(a).... 1,375 34,719
Ericsson LM Tel Co.................. 12,100 365,269
Korean Mobile Telecommunications,
Inc. (144a)(a).................... 13,442 173,059
Lucent Technologies, Inc............ 10,050 464,813
MFS Communications, Inc.(a)......... 5,300 288,850
Millicom International Cellular
SA(a)............................. 7,100 228,088
Nokia Corp. -- ADR.................. 6,825 393,291
Paging Network, Inc.(a)............. 75 1,144
Portugal Telecom SA -- ADR.......... 3,600 101,700

</TABLE>

See notes to the financial statements.

46
<PAGE> 200

JNL GLOBAL EQUITIES SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
UNITED STATES -- (CONTINUED)
- --------------------------------------
TELECOMMUNICATIONS -- (CONTINUED)
- --------------------------------------
Telecom Argentina Stet France -- ADR
Class B........................... 75 $ 3,028
Telefonos De Argentina -- ADR....... 4,325 111,909
Telecomunicacoes Brasileiras SA..... 6,250 478,125
Telefonica Del Peru SA.............. 8,625 162,797
----------
2,806,792
TRANSPORTATION -- 0.01%
Tranz Rail Holdings -- ADR(a)....... 300 5,306
WHOLESALE -- 1.04%
Alco Standard Corp. (a)............. 9,875 509,797
----------
Total United States............... 14,400,038
----------
Total Common Stocks
(cost $41,619,865).............. 48,191,083
----------
PREFERRED STOCKS -- 1.49%
- --------------------------------------
BRAZIL -- 0.14%
- --------------------------------------
BEVERAGES -- 0.03%
Brahma.............................. 21,000 11,479
ENERGY -- 0.11%
Cemig CIA Energetica Minas.......... 1,611,000 54,883
----------
Total Brazil...................... 66,362
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
PREFERRED STOCKS -- (CONTINUED)
- --------------------------------------
FINLAND -- 0.20%
- --------------------------------------
COMMUNICATIONS -- 0.20%
Nokia Oy AB......................... 1,703 $ 98,774
GERMANY -- 1.01%
- --------------------------------------
AUTOMOBILES -- 0.12%
Porsche AG.......................... 64 56,564
HEALTH PRODUCTS & CARE -- 0.89%
Fresenius AG........................ 1,700 351,313
Fresenius Medical Care AG........... 1,058 85,222
----------
436,535
----------
Total Germany..................... 493,099
UNITED STATES -- 0.14%
- --------------------------------------
FOOD & BEVERAGES -- 0.14%
Quilmes Industrial Quinsa -- ADR.... 7,700 70,263
----------
Total Preferred Stocks
(cost $662,331)................. 728,498
----------
TOTAL INVESTMENTS -- 100%
- --------------------------------------
(cost $42,282,196).................. $48,919,581
==========
</TABLE>

- -------------------------
(a) Non-income producing.

See notes to the financial statements.

47
<PAGE> 201

JNL/ALGER GROWTH SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 94.49%
- --------------------------------------
AEROSPACE & DEFENSE -- 3.77%
Boeing Co. ......................... 6,500 $ 691,437
Gulfstream Aerospace Corp.(a)....... 7,100 172,175
Ingram Micro, Inc.(a)............... 17,000 391,000
United Technologies Corp. .......... 2,800 184,800
-----------
1,439,412
APPAREL -- 0.57%
Tommy Hilfiger Corp.(a)............. 4,500 216,000
BANKS -- 4.43%
Chase Manhattan Corp. .............. 9,000 803,250
Citicorp............................ 8,600 885,800
-----------
1,689,050
BROADCASTING -- 0.44%
Univision Communications, Inc.(a)... 4,500 166,500
BUILDING & CONSTRUCTION -- 0.41%
Case Corp. ......................... 2,900 158,050
CHEMICALS -- 2.06%
Monsanto Co. ....................... 20,200 785,275
COMPUTERS & TECHNOLOGY -- 19.81%
Cisco Systems, Inc.(a).............. 19,000 1,208,875
Computer Associates International,
Inc. ............................. 2,900 144,275
Compuware Corp.(a).................. 8,000 401,000
First Data Corp. ................... 26,056 951,044
Hewlett Packard Co. ................ 5,500 276,375
Informix Corp.(a)................... 22,000 448,250
Intel Corp. ........................ 9,700 1,270,094
Linear Technology Corp. ............ 5,200 228,150
Microsoft Corp.(a).................. 9,000 743,625
Parametric Technology Corp.(a)...... 6,900 354,487
Sabre Group Holdings, Inc.(a)....... 5,400 150,525
Sun Microsystems, Inc.(a)........... 16,000 411,000
Sundstrand Corp. ................... 9,500 403,750
3Com Corp.(a)....................... 7,700 564,987
-----------
7,556,437
CONSUMER PRODUCTS -- 0.93%
CUC International, Inc.(a).......... 15,000 356,250
DRUGS -- 6.23%
Eli Lilly & Co. .................... 11,400 832,200
Merck & Company, Inc. .............. 13,000 1,030,250
Pfizer, Inc. ....................... 6,200 513,825
-----------
2,376,275
ELECTRICAL EQUIPMENT -- 2.52%
Boston Scientific Corp.(a).......... 4,500 270,000
General Electric Co. ............... 7,000 692,125
-----------
962,125
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
ELECTRONICS -- 7.64%
Adaptec, Inc(a)..................... 23,200 $ 928,000
Altera Corp.(a)..................... 10,300 748,681
Maxim Integrated Products(a)........ 3,900 168,675
Picturetel Corp.(a)................. 12,400 322,400
Tellabs, Inc.(a).................... 10,000 376,250
Xilinx, Inc.(a)..................... 10,000 368,125
-----------
2,912,131
ENERGY SERVICES -- 2.03%
Halliburton Co. .................... 8,900 536,225
Tidewater, Inc. .................... 5,300 239,825
-----------
776,050
FINANCE COMPANIES -- 4.11%
Green Tree Financial Corp. ......... 8,000 309,000
MBNA Corp. ......................... 4,550 188,825
MGIC Investment Corp. .............. 4,700 357,200
Money Store (The), Inc. ............ 12,000 331,500
Schwab Charles Corp. ............... 11,900 380,800
-----------
1,567,325
GAMING -- 0.73%
Mirage Resorts, Inc.(a)............. 12,800 276,800
HEALTH CARE & PRODUCTS -- 7.45%
Biochemical Pharmaceuticals,
Inc.(a)........................... 7,100 356,775
Bristol Myers Squibb Co. ........... 3,500 380,625
Columbia HCA/Healthcare Corp. ...... 15,500 631,625
Medtronic, Inc. .................... 10,100 686,800
Warner Lambert Co. ................. 10,500 787,500
-----------
2,843,325
HOSPITALITY -- 2.60%
Boston Chicken, Inc.(a)............. 10,900 391,038
Lone Star Steakhouse & Saloon(a).... 12,800 342,400
Outback Steakhouse, Inc.(a)......... 2,500 66,875
Safeway, Inc.(a).................... 4,500 192,375
-----------
992,688
INDUSTRIAL MACHINERY -- 0.56%
Tyco International, Ltd. ........... 4,000 211,500
INSURANCE -- 3.84%
American International Group,
Inc. ............................. 10,000 1,082,500
Equifax, Inc. ...................... 12,500 382,813
-----------
1,465,313
LEISURE TIME & RECREATION -- 1.36%
International Game Technology....... 28,500 520,125
MERCHANDISING -- 2.82%
Nike, Inc. Class B.................. 12,500 746,875
9 West Group, Inc.(a)............... 3,000 139,125
TJX Companies, Inc. ................ 4,000 189,500
-----------
1,075,500

</TABLE>

See notes to the financial statements.

48
<PAGE> 202

JNL/ALGER GROWTH SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
OIL -- 2.29%
BJ Services Co.(a).................. 3,800 $ 193,800
Schlumberger Ltd. .................. 5,000 499,375
Smith International, Inc.(a)........ 4,000 179,500
-----------
872,675
RETAIL -- 5.66%
Dollar General Corp. ............... 7,000 224,000
Gucci Group N V..................... 7,600 485,450
Home Depot, Inc. ................... 19,500 977,438
Office Max, Inc.(a)................. 25,800 274,125
Rite Aid Corp. ..................... 5,000 198,750
-----------
2,159,763
SERVICE INDUSTRIES -- 3.49%
Loewen Group, Inc. ................. 13,200 516,450
Service Corp. International......... 29,000 812,000
-----------
1,328,450
TELECOMMUNICATIONS -- 5.51%
Ascend Communications, Inc.(a)...... 6,100 378,962
Cascade Communications Co.(a)....... 4,400 242,550
LCI International, Inc.(a).......... 4,700 101,050
Nokia Corp.......................... 4,100 236,263
Pairgain Technologies, Inc. (a)..... 4,400 133,925
Qualcomm, Inc. (a).................. 5,000 199,375
Telecomunicacoes Brasileiras SA --
ADR............................... 6,400 489,600
WorldCom, Inc.(a)................... 12,300 320,569
-----------
2,102,294
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
TEXTILES -- 0.97%
Cintas Corp. ....................... 6,300 $ 370,125
WASTE DISPOSAL -- 2.26%
United Waste Systems, Inc.(a)....... 8,800 302,500
USA Waste Services, Inc.(a)......... 17,500 557,812
-----------
860,312
-----------
Total Common Stocks
(cost $32,375,066).............. 36,039,750
-----------

PRINCIPAL
AMOUNT
----------
SHORT-TERM INVESTMENTS -- 5.51%
- --------------------------------------
MONEY MARKET FUNDS -- 4.47%
State Street Global Advisor Fund,
5.38%(b).......................... $1,703,214 1,703,214
U.S. TREASURY BILLS -- 1.04%
4.80%, 02/20/1997................... 400,000 397,333
-----------
Total Short-Term Investments
(cost $2,100,547)............... 2,100,547
-----------
TOTAL INVESTMENTS -- 100%
- --------------------------------------
(cost $34,475,613).................. $38,140,297
===========
</TABLE>

- -------------------------
(a) Non-income producing.

(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1996.

See notes to the financial statements.

49
<PAGE> 203

JNL/EAGLE CORE EQUITY SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 96.42%
- ---------------------------------------
APPAREL & TEXTILES -- 0.57%
Intimate Brands, Inc. ............... 600 $ 10,200
AUTOMOBILES -- 0.53%
Ford Motor Co. ...................... 300 9,562
BANKS -- 2.79%
BankAmerica Corp. ................... 200 19,950
Mellon Bank Corp. ................... 150 10,650
NationsBank Corp. ................... 200 19,550
----------
50,150
BUILDING CONSTRUCTION -- 0.38%
Harsco Corp. ........................ 100 6,850
BUSINESS SERVICES -- 4.18%
CUC International Inc.(a)............ 850 20,187
First Data Corp. .................... 500 18,250
Omnicom Group........................ 800 36,600
----------
75,037
COMPUTERS AND BUSINESS EQUIPMENT -- 3.02%
Cisco Systems, Inc.(a)............... 300 19,088
Hewlett Packard Co. ................. 700 35,175
----------
54,263
DOMESTIC OIL -- 1.95%
Ashland, Inc. ....................... 800 35,100
DRUGS & HEALTH CARE -- 6.44%
Abbott Laboratories.................. 200 10,150
Johnson & Johnson.................... 500 24,875
Lilly Eli & Co....................... 300 21,900
Merck & Co., Inc. ................... 300 23,775
Pfizer, Inc. ........................ 300 24,862
SmithKline Beecham PLC............... 150 10,200
----------
115,762
ELECTRIC UTILITIES -- 4.76%
FPL Group, Inc. ..................... 250 11,500
Nipsco Industries, Inc. ............. 300 11,888
Pacificorp........................... 1,500 30,750
Teco Energy, Inc. ................... 1,300 31,363
----------
85,501
ELECTRICAL EQUIPMENT -- 8.15%
Atmel Corp.(a)....................... 1,000 33,125
General Electric Co. ................ 400 39,550
Philips Electronics NV............... 1,000 40,000
Westinghouse Electric Corp. ......... 1,700 33,787
----------
146,462
ELECTRONICS -- 4.20%
Ericsson L M Tel Co. ................ 700 21,131
General Motors Corp. Series E........ 500 28,125
Intel Corp. ......................... 200 26,188
----------
75,444
FINANCIAL SERVICES -- 7.09%
American Express Corp................ 300 16,950
Chase Manhattan Corp................. 400 35,700
Federal Home Loan Mortgage Corp. .... 200 22,025
Federal National Mortgage
Association........................ 600 22,350
Travelers Group, Inc. ............... 666 30,220
----------
127,245
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- ---------------------------------------
FOOD & BEVERAGES -- 1.57%
Heinz H J Co. ....................... 300 $ 10,725
Pepsico, Inc. ....................... 600 17,550
----------
28,275
GAS AND PIPELINE UTILITIES -- 2.69%
American Water Works, Inc............ 600 12,375
UGI Corp. ........................... 500 11,188
Wicor, Inc. ......................... 300 10,763
Williams Cos., Inc. ................. 375 14,063
----------
48,389
GAS EXPLORATION -- 1.80%
Enron Corp. ......................... 750 32,344
HOTELS AND RESTAURANTS -- 1.54%
Marriott International, Inc. ........ 500 27,625
HOUSEHOLD APPLIANCES & FURNISHINGS --
1.72%
Sunbeam Corp. ....................... 1,200 30,900
HOUSEHOLD PRODUCTS -- 5.37%
Black & Decker Corp.................. 1,100 33,137
Gillette Co. ........................ 400 31,100
Procter & Gamble Co. ................ 300 32,250
----------
96,487
INDUSTRIAL MACHINERY -- 1.84%
Thermo Electron Corp(a).............. 800 33,000
INSURANCE -- 3.68%
Allstate Corp........................ 400 23,150
American International Group,
Inc. .............................. 300 32,475
Marsh & McLennan Companies, Inc. .... 100 10,400
----------
66,025
INTERNATIONAL OIL -- 4.77%
Exxon Corp........................... 100 9,800
Mobil Corp. ......................... 100 12,225
Royal Dutch Petroleum Co. ........... 200 34,150
Texaco, Inc. ........................ 300 29,437
----------
85,612
OFFICE FURNISHINGS AND SUPPLIES --
0.58%
Wallace Computer Services, Inc. ..... 300 10,350
PLASTICS -- 1.33%
Illinois Tool Works, Inc. ........... 300 23,962
PUBLISHING -- 0.64%
McGraw Hill Companies, Inc. ......... 250 11,531
REAL ESTATE -- 3.45%
Cali Realty Corp. ................... 300 9,263
Duke Realty Investments, Inc. ....... 200 7,700
Haagen Alexander Properties, Inc. ... 450 6,638
Nationwide Health Properties,
Inc. .............................. 300 7,275
Rouse Co. ........................... 450 14,288
Storage Trust Realty................. 300 8,100
Sun Communities, Inc. ............... 250 8,625
----------
61,889
RETAIL TRADE -- 3.83%
Home Depot, Inc. .................... 500 25,062
Kohls Corp. (a)...................... 500 19,625
Walgreen Co. ........................ 600 24,000
----------
68,687

</TABLE>

See notes to the financial statements.

50
<PAGE> 204

JNL/EAGLE CORE EQUITY SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- ---------------------------------------
SOFTWARE -- 2.08%
Microsoft Corp.(a)................... 200 $ 16,525
Oracle Systems Corp.(a).............. 500 20,875
----------
37,400
TELECOMMUNICATIONS -- 7.53%
AT&T................................. 900 39,150
Alltel Corp. ........................ 350 10,981
Bell Atlantic Corp. ................. 500 32,375
Frontier Corp. ...................... 400 9,050
GTE Corp. ........................... 200 9,100
Telefonica de Espana SA.............. 500 34,625
----------
135,281
TELECOMMUNICATION SERVICES -- 1.70%
Telecomunicacoes Brasileiras......... 400 30,600
TOBACCO -- 6.24%
American Brands, Inc. ............... 700 34,737
Philip Morris Companies Inc. ........ 400 45,050
UST, Inc. ........................... 1,000 32,375
----------
112,162
----------
Total Common Stocks
(cost $1,651,495)................ 1,732,095
----------
PREFERRED STOCKS -- 3.58%
- ---------------------------------------
FINANCIAL SERVICES -- 0.65%
Sci Finances LLC..................... 125 11,766
HOUSEHOLD PRODUCTS -- 0.71%
Corning Delaware LP.................. 200 12,725
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
PREFERRED STOCKS (CONTINUED)
- ---------------------------------------
INSURANCE -- 0.51%
Jefferson Pilot Corp. ............... 100 $ 9,100
LEISURE TIME -- 0.45%
AMC Entertainment, Inc. ............. 300 8,100
RESTAURANT -- 0.58%
Wendy's.............................. 200 10,400
RETAIL TRADE -- 0.68%
Kmart................................ 250 12,187
----------
Total Preferred Stocks
(cost $65,149)................... 64,278
----------
TOTAL INVESTMENTS -- 100%
- ---------------------------------------
(cost $1,716,644).................... $1,796,373
==========
CALL OPTIONS WRITTEN
- ---------------------------------------

COMMON STOCK/EXPIRATION MARKET
DATE/EXERCISE PRICE CONTRACTS VALUE
- --------------------------------------- ----- ----------
<S> <C> <C>
General Motors Corp./January 17,
1997/$55(b).......................... 5 $ (1,500)

</TABLE>

- -------------------------
(a) Non-income producing.

(b) Security represents the only call option written in reporting period.

See notes to the financial statements.

51
<PAGE> 205

JNL/EAGLE SMALLCAP EQUITY SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 100%
- ------------------------------------------
APPAREL & TEXTILES -- 3.63%
Barry R G Corp(a)....................... 6,000 $ 66,000
BUSINESS SERVICES -- 2.60%
Wackenhut Corp.......................... 3,100 47,275
CHEMICALS -- 2.64%
Tetra Technologies, Inc.(a)............. 1,900 47,975
COMMERCIAL SERVICES -- 4.39%
NCO Group Inc.(a)....................... 500 8,437
Superior Services, Inc(a)............... 3,500 71,313
----------
79,750
COMMUNICATIONS EQUIPMENT -- 4.59%
Ampex Corp.(a).......................... 7,000 65,625
RMH Teleservices Inc.(a)................ 2,300 17,825
----------
83,450
CONSTRUCTION -- 8.50%
Hughes Supply Inc....................... 2,000 86,250
Lennar Corp............................. 2,500 68,125
----------
154,375
DRUGS & HEALTH CARE -- 2.89%
Angeion Corp.(a)........................ 15,000 52,500
ELECTRONICS -- 5.02%
Computational Systems, Inc.(a).......... 2,000 38,500
Computer Products Inc.(a)............... 2,700 52,650
----------
91,150
ENVIRONMENTAL -- 7.12%
Envirosource, Inc.(a)................... 13,300 35,744
IMCO Recycling, Inc..................... 6,400 93,600
----------
129,344
FINANCIAL SERVICES -- 4.24%
Legg Mason, Inc......................... 2,000 77,000
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- ------------------------------------------
HOTELS AND RESTAURANTS -- 10.05%
Apple South, Inc........................ 3,000 $ 40,500
Bristol Hotel Co.(a).................... 2,000 63,500
Capstar Hotel Co.(a).................... 4,000 78,500
----------
182,500
MAINTENANCE -- 3.73%
American Residential Services,
Inc.(a)............................... 2,500 67,812
PETROLEUM SERVICES -- 13.57%
Camco International, Inc................ 1,100 50,737
Marine Drilling Companies, Inc.(a)...... 4,100 80,719
Precision Drilling Corp(a).............. 1,100 38,225
Trico Marine Services, Inc.(a).......... 1,600 76,800
----------
246,481
PUBLISHING -- 11.12%
Houghton Mifflin Co..................... 1,200 67,950
National Education Corp(a).............. 5,000 76,250
World Color Press, Inc.(a).............. 3,000 57,750
----------
201,950
RACETRACKS -- 3.39%
International Speedway Corp(a).......... 3,000 61,500
REAL ESTATE -- 5.78%
Mid-America Apartment Communities,
Inc................................... 1,600 46,200
Public Storage, Inc..................... 1,900 58,900
----------
105,100
RETAIL -- 6.74%
Cash America International, Inc......... 8,000 68,000
Ugly Duckling Corp.(a).................. 2,800 54,600
----------
122,600
----------
TOTAL INVESTMENTS -- 100%
- ------------------------------------------
(cost $1,603,053)....................... $1,816,762
- ------------------------- ==========
(a) Non-income producing.
</TABLE>

See notes to the financial statements.

52
<PAGE> 206

JNL/PHOENIX INVESTMENT COUNSEL BALANCED SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 51.05%
- --------------------------------------
AEROSPACE & AIRCRAFT -- 1.21%
AlliedSignal, Inc. ................. 1,700 $ 113,900
Boeing Co. ......................... 1,700 180,838
----------
294,738
APPAREL -- 0.71%
Nike, Inc., Class B................. 2,900 173,275
AUTOMOBILES -- 0.18%
Chrysler Corp. ..................... 1,300 42,900
BROADCASTING -- 0.44%
Westinghouse Electric Corp. ........ 5,400 107,325
BANKS -- 3.01%
BankAmerica Corp. .................. 1,300 129,675
Chase Manhattan Corp. .............. 1,300 116,025
Citicorp............................ 1,500 154,500
First USA, Inc. .................... 5,300 183,513
Mellon Bank Corp. .................. 1,250 88,750
NationsBank Corp. .................. 600 58,650
----------
731,113
BUSINESS SERVICES -- 1.52%
Cognizant Corp. .................... 4,000 132,000
First Data Corp. ................... 3,800 138,700
New York Times Co. ................. 1,500 57,000
Service Corp. International......... 1,500 42,000
----------
369,700
CHEMICALS -- 1.43%
DuPont EI & Co. De Neumours......... 1,700 160,437
Monsanto Co. ....................... 4,800 186,600
----------
347,037
COMPUTERS & TECHNOLOGY -- 7.27%
Computer Associates International,
Inc. ............................. 3,250 161,688
Cisco Systems, Inc.(a).............. 6,600 419,925
GT Interactive Software Corp.(a) ... 3,000 21,375
International Business Machines
Corp. ............................ 2,000 302,000
Microsoft Corp.(a).................. 1,500 123,938
Oracle Systems Corp.(a)............. 5,000 208,750
Sun Microsystems, Inc.(a)........... 8,000 205,500
3Com Corp.(a)....................... 3,100 227,463
Xerox Corp. ........................ 1,800 94,725
----------
1,765,364
CONGLOMERATES -- 1.46%
General Electric Co. ............... 3,000 296,625
Tyco International, Ltd. ........... 1,100 58,163
----------
354,788
CONSUMER PRODUCTS -- 2.36%
Colgate Palmolive Co. .............. 800 73,800
Gillette Co. ....................... 2,100 163,275
Minnesota Mining & Manufacturing
Co. .............................. 1,200 99,450
Proctor & Gamble Co. ............... 2,200 236,500
----------
573,025
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
DRUGS -- 0.94%
Bristol Myers Squibb Co. ........... 1,700 $ 184,875
Lilly Eli & Co. .................... 600 43,800
----------
228,675
ELECTRONICS -- 3.58%
Boston Scientific Corp.(a) ......... 2,000 120,000
Emerson Electric Co. ............... 300 29,025
Honeywell, Inc. .................... 2,000 131,500
Intel Corp. ........................ 2,700 353,531
Micron Technology, Inc. ............ 1,800 52,425
Perkin-Elmer Corp. ................. 1,900 111,862
Texas Instruments, Inc. ............ 1,100 70,125
----------
868,468
ENTERTAINMENT -- 0.43%
Disney, Walt Co. ................... 1,500 104,437
FINANCIAL SERVICES -- 2.33%
Conseco, Inc. ...................... 2,800 178,500
MBNA Corp. ......................... 2,000 83,000
T. Rowe Price & Assoc., Inc. ....... 3,150 137,025
Travelers Group, Inc. .............. 3,666 166,345
----------
564,870
FOOD & BEVERAGES -- 2.06%
Campbell Soup Co. .................. 1,300 104,325
Coca-Cola Co. ...................... 2,300 121,038
Pepsico, Inc. ...................... 8,600 251,550
Seagram Ltd. ....................... 600 23,250
----------
500,163
HEALTH PRODUCTS & CARE -- 4.40%
Abbott Laboratories................. 1,200 60,900
American Home Products Corp. ....... 2,600 152,425
Amgen, Inc.(a)...................... 1,600 87,000
Columbia/HCA Healthcare Corp. ...... 6,000 244,500
Johnson & Johnson................... 2,000 99,500
Merck & Co., Inc. .................. 2,800 221,900
Pfizer, Inc. ....................... 1,900 157,462
Warner Lambert Co. ................. 600 45,000
----------
1,068,687
HOTEL -- 1.42%
Hospitality Franchise Systems,
Inc.(a)........................... 2,500 149,375
Hilton Hotels Corp. ................ 3,500 91,438
Marriott International, Inc. ....... 1,900 104,975
----------
345,788
</TABLE>
See notes to the financial statements.

53
<PAGE> 207

JNL/PHOENIX INVESTMENT COUNSEL BALANCED SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>

COMMON STOCKS (CONTINUED)
- --------------------------------------
INSURANCE -- 2.90%
Allstate Corp. ..................... 4,200 $ 243,075
American International Group,
Inc. ............................. 1,400 151,550
Chubb Corp. ........................ 900 48,375
ITT Hartford Group, Inc. ........... 500 33,750
Marsh & McLennan Cos., Inc. ........ 1,000 104,000
TIG Holdings, Inc. ................. 3,600 121,950
----------
702,700
MACHINERY -- 0.98%
Deere & Co. ........................ 2,700 109,687
Dover Corp. ........................ 1,400 70,350
Thermo Electron Corp.(a)............ 1,400 57,750
----------
237,787
OIL & GAS -- 7.01%
Anadarko Petroleum Corp. ........... 1,500 97,125
Apache Corp. ....................... 2,700 95,513
Baker Hughes, Inc. ................. 3,300 113,850
Chevron Corp. ...................... 2,800 182,000
Columbia Gas Systems, Inc. ......... 1,500 95,437
Consolidated Natural Gas Co. ....... 2,000 110,500
Enron Oil & Gas Co. ................ 3,200 80,800
Ensco International, Inc.(a)........ 2,000 97,000
Exxon Corp. ........................ 1,500 147,000
Halliburton Co. .................... 2,000 120,500
Mobil Corp. ........................ 200 24,450
Noble Affiliates, Inc. ............. 3,500 167,562
Royal Dutch Petroleum Co. .......... 700 119,525
Schlumberger Ltd. .................. 1,500 149,813
Transocean Offshore, Inc. .......... 1,600 100,200
----------
1,701,275
REAL ESTATE -- 0.21%
Redwood Trust, Inc. ................ 1,400 52,150
RETAIL -- 3.32%
CVS Corp. .......................... 1,400 57,925
Home Depot, Inc. ................... 3,500 175,437
Lowe's Companies, Inc. ............. 3,000 106,500
Office Depot, Inc.(a)............... 500 8,875
Petsmart, Inc.(a)................... 4,500 98,437
Safeway Stores, Inc.(a)............. 5,200 222,300
Staples, Inc.(a).................... 7,500 135,469
----------
804,943
TELECOMMUNICATIONS -- 0.61%
Ameritech Corp. .................... 1,000 60,625
Bell Atlantic Corp. ................ 1,000 64,750
Lucent Technologies, Inc. .......... 500 23,125
----------
148,500
TRANSPORTATION -- 0.39%
Tidewater, Inc. .................... 2,100 95,025
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>

COMMON STOCKS (CONTINUED)
- --------------------------------------

WASTE DISPOSAL -- 0.88%
Philip Environmental, Inc.(a)....... 3,500 50,750
Republic Industries, Inc.(a)........ 1,500 46,781
USA Waste Services, Inc.(a)......... 3,600 114,750
----------
212,281
----------
Total Common Stocks
(cost $11,738,209).............. 12,395,014
----------
<CAPTION>
PRINCIPAL
CORPORATE BONDS -- 0.11% AMOUNT
- -------------------------------------- ----------
<S> <C> <C>
FINANCIAL -- 0.04%
Astra (144a)
8.750%, 08/07/2003................ $ 10,000 10,150
INDUSTRIAL -- 0.07%
Buckeye Cellulos
9.250%, 09/15/2008................ 15,000 15,600
----------
Total Corporate Bonds
(cost $24,875).................. 25,750
----------
MUNICIPAL BONDS -- 0.17%
- --------------------------------------
CALIFORNIA -- 0.06%
Long Beach Pension Obligation -- FSA
Insured, 6.87%, 09/01/2006........ 5,000 4,961
San Bernardino County Authority
Pension -- MBIA Insured, 6.94%,
08/01/2009........................ 5,000 4,962
Ventura County Municipal Bond -- FSA
Insured, 6.58%, 11/01/2006........ 5,000 4,902
----------
14,825
FLORIDA -- 0.11%
Miami Beach Pension Project -- AMBAC
Insured, 8.60%, 09/01/2021........ 10,000 10,698
University of Miami -- MBIA Insured
Adjustable Rate, 7.65%,
04/01/2020........................ 15,000 15,132
----------
25,830
----------
Total Municipal Bonds
(cost $40,970).................. 40,655
----------
U.S. GOVERNMENT SECURITIES -- 36.57%
- --------------------------------------
U.S. TREASURY NOTES -- 20.20%
6.875%, 07/31/1999.................. 200,000 204,062
6.250%, 10/31/2001.................. 500,000 500,470
5.875%, 11/30/2001.................. 1,000,000 985,470
5.875%, 11/15/2005.................. 300,000 289,266
6.500%, 10/15/2006.................. 2,900,000 2,915,863
6.000%, 02/15/2026.................. 10,000 9,102
----------
4,904,233
U.S. GOVERNMENTAL AGENCIES -- 16.37%
Resolution Trust Corporation Strip
Interest, 6.80%, 05/25/2027....... 95,896 94,901

See notes to the financial statements.

</TABLE>

54
<PAGE> 208

JNL/PHOENIX INVESTMENT COUNSEL BALANCED SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES (CONTINUED)
- --------------------------------------
U.S. GOVERNMENTAL AGENCIES (CONTINUED)
- --------------------------------------
Government National Mortgage
Association
6.50%, 12/15/2023................. $ 270,829 $ 259,912
6.50%, 04/15/2026................. 3,795,555 3,620,010
----------
3,879,922
----------
Total U.S. Government Securities
(cost $8,920,638)............... 8,879,056
----------
MORTGAGE BACKED SECURITIES -- 1.26%
- --------------------------------------
Countrywide Mortgage Backed
Securities, Inc., 8.00%,
12/25/2026........................ 95,806 97,213
DLJ Mortgage Acceptance Corp. 1996-
CF1 A1B, (144a), 7.58%,
03/13/2028........................ 50,000 51,688
Green Tree 1996-4 A6, 7.40%,
06/15/2027........................ 15,000 15,126
Residential Funding Mortgage
Security I
6.75%, 03/25/2011................. 97,126 95,062
TLFC Equipment Lease Trust
5.98%, 11/20/2002................. 48,244 48,123
----------
Total Mortgage Backed Securities
(cost $308,906)................. 307,212
----------
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 10.84%
- --------------------------------------
COMMERCIAL PAPER -- 10.84%
Albertsons, Inc.
5.38%, 01/28/1997................. $ 265,000 $ 263,931
Amoco Co.
5.25%, 01/06/1997................. 315,000 314,770
Gannett, Inc.
5.35%, 01/10/1997................. 550,000 549,264
General Electric Capital Corp.
5.37%, 01/13/1997................. 300,000 299,463
Proctor & Gamble
5.33%, 01/07/1997................. 330,000 329,707
Receivables Capital Corp.
5.55%, 02/14/1997................. 525,000 521,439
Schering Corp.
5.45%, 01/30/1997................. 355,000 353,441
----------
Total Short-Term Investments
(cost $2,632,015)............... 2,632,015
----------
TOTAL INVESTMENTS -- 100%
- --------------------------------------
(cost $23,665,613).................. $24,279,702
==========
</TABLE>

- -------------------------
(a) Non-income producing.

See notes to the financial statements.

55
<PAGE> 209

JNL/PHOENIX INVESTMENT COUNSEL GROWTH SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 90.56%
- ---------------------------------------
AEROSPACE & AIRCRAFT -- 2.64%
AlliedSignal, Inc. .................. 3,200 $ 214,400
Boeing Co. .......................... 2,100 223,387
United Technologies Corp. ........... 3,000 198,000
-----------
635,787
BANKS -- 6.33%
Ahmanson H F & Co. .................. 6,700 217,750
BankAmerica Corp. ................... 2,200 219,450
Citicorp............................. 3,100 319,300
MBNA Corp. .......................... 5,600 232,400
NationsBank Corp. ................... 1,100 107,525
Republic NY Corp..................... 2,600 212,225
Wells Fargo & Co. ................... 800 215,800
-----------
1,524,450
BUSINESS SERVICES -- 2.67%
ADT Ltd. ............................ 9,500 217,312
Cognizant Corp. ..................... 6,700 221,100
First Data Corp...................... 5,600 204,400
-----------
642,812
CHEMICALS -- 2.74%
Du Pont E I De Nemours & Co. ........ 2,300 217,063
IMC Global, Inc. .................... 5,700 223,013
Potash Corp. ........................ 2,600 221,000
-----------
661,076
COMPUTERS & SOFTWARE -- 11.07%
Cisco Systems, Inc.(a)............... 10,600 674,425
Compaq Computer Corp(a).............. 4,400 326,700
Computer Associates International,
Inc. .............................. 5,800 288,550
Hewlett Packard Co. ................. 2,100 105,525
International Business Machines
Corp............................... 3,000 453,000
Microsoft Corp.(a)................... 5,300 437,912
3Com Corp(a)......................... 5,200 381,550
-----------
2,667,662
CONFECTIONS & BEVERAGES -- 2.59%
Coca-Cola Co. ....................... 9,000 473,625
Pepsico, Inc. ....................... 5,100 149,175
-----------
622,800
CONSUMER PRODUCTS -- 8.85%
Colgate Palmolive Co. ............... 2,400 221,400
Crown Cork & Seal, Inc. ............. 4,300 233,813
Eastman Kodak Co. ................... 1,300 104,325
Gillette Co. ........................ 3,100 241,025
Philip Morris Cos, Inc. ............. 6,000 675,750
Procter & Gamble Co. ................ 2,000 215,000
Seagram Co. Ltd. .................... 5,500 213,125
Unilever NV.......................... 1,300 227,825
-----------
2,132,263
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- ---------------------------------------
DIVERSIFIED -- 0.90%
Tyco International, Ltd. ............ 4,100 $ 216,787

ELECTRONICS -- 9.93%
Adaptec, Inc.(a)..................... 5,100 204,000
Atmel Corp.(a)....................... 3,100 102,687
Boston Scientific Corp.(a)........... 3,600 216,000
Checkpoint Systems, Inc.(a).......... 3,100 76,725
General Electric Corp. .............. 4,600 454,825
Intel Corp. ......................... 5,300 693,969
Perkin Elmer Corp. .................. 3,900 229,612
Raychem Corp. ....................... 4,000 320,500
S3, Inc.(a).......................... 5,700 92,625
-----------
2,390,943
FINANCIAL SERVICES -- 5.99%
Allstate Corp. ...................... 3,700 214,137
American Express Co. ................ 4,000 226,000
Chase Manhattan Corp................. 3,600 321,300
Federal National Mortgage
Association........................ 6,200 230,950
First USA Inc. ...................... 6,600 228,525
Travelers Group, Inc. ............... 4,900 222,337
-----------
1,443,249
HEALTH PRODUCTS & CARE -- 1.79%
Columbia/HCA Healthcare Corp. ....... 5,300 215,975
Mallinckrodt, Inc. .................. 4,900 216,213
-----------
432,188
INSURANCE -- 2.03%
Conseco, Inc. ....................... 3,400 216,750
Equifax, Inc. ....................... 5,100 156,187
SunAmerica, Inc. .................... 2,600 115,375
-----------
488,312
MEDICAL SERVICES & SUPPLIES -- 10.02%
American Home Products Corp. ........ 3,700 216,913
Amgen, Inc.(a)....................... 3,800 206,625
Centocor(a).......................... 3,100 110,825
Johnson & Johnson.................... 4,300 213,925
Medtronic, Inc. ..................... 3,200 217,600
Merck & Co. ......................... 8,400 665,700
Pharmacia & Upjohn, Inc. ............ 5,600 221,900
Pfizer, Inc. ........................ 5,500 455,813
Warner Lambert, Co. ................. 1,400 105,000
-----------
2,414,301

</TABLE>

See notes to the financial statements.

56
<PAGE> 210

JNL/PHOENIX INVESTMENT COUNSEL GROWTH SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- ---------------------------------------
OIL & GAS -- 11.28%
Anadarko Petroleum Corp. ............ 3,200 $ 207,200
BJ Services Co.(a)................... 6,500 331,500
Burlington Resources, Inc. .......... 2,100 105,788
Diamond Offshore Drilling(a)......... 5,900 336,300
Dresser Industries, Inc. ............ 4,100 127,100
Elf Aquitaine Sponsored -- ADR....... 5,500 248,875
Ensco International, Inc.(a)......... 5,300 257,050
Halliburton Co. ..................... 5,300 319,325
Louisiana Land & Exploration Co. .... 3,900 209,138
Rowan Cos, Inc.(a)................... 4,500 101,813
Schlumberger, Ltd. .................. 2,100 209,737
Tidewater, Inc. ..................... 5,800 262,450
-----------
2,716,276
RETAIL -- 7.51%
American Stores, Co. ................ 5,300 216,638
CVS Corp. ........................... 5,400 223,425
Federated Department Stores,
Inc.(a)............................ 6,500 221,813
Home Depot, Inc. .................... 9,000 451,125
Price/Costco, Inc.(a)................ 13,600 341,700
TJX Cos, Inc. ....................... 7,500 355,312
-----------
1,810,013
TELECOMMUNICATIONS -- 2.86%
Ameritech Corp. ..................... 3,800 230,375
GTE Corp............................. 5,100 232,050
SBC Communications, Inc. ............ 4,400 227,700
-----------
690,125
TRANSPORTATION -- 1.36%
Burlington Northern Sante Fe......... 3,800 328,225
-----------
Total Common Stocks
(cost $21,526,921)............... 21,817,269
-----------

<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
------ ------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 9.44%
- ---------------------------------------
U.S. GOVERNMENT AGENCIES -- 0.40%
Federal Home Loan Mortgage,
5.23%, 01/16/1997.................. $ 97,000 $ 96,789
COMMERCIAL PAPER -- 9.04%
Amoco
5.25%, 01/06/1997.................. 485,000 484,646
Ciesco L P
5.38%, 01/09/1997.................. 300,000 299,642
5.38%, 01/13/1997.................. 255,000 254,543
Gannett, Inc.
5.35%, 01/10/1997.................. 55,000 54,926
General Electric Co.
5.28%, 01/08/1997.................. 420,000 419,569
General Electric Cap Corp.
5.37%, 01/14/1997.................. 430,000 429,166
International Lease Finance Corp.
5.35%, 01/17/1997.................. 235,000 234,441
-----------
2,176,933
-----------
Total Short-Term Investments
(cost $2,273,722)................ 2,273,722
-----------
TOTAL INVESTMENTS -- 100%
- ---------------------------------------
(cost $23,800,643)................... $24,090,991
===========
</TABLE>

- -------------------------
(a) Non-income producing.

See notes to the financial statements.

57
<PAGE> 211

PPM AMERICA/JNL HIGH YIELD BOND SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
CORPORATE BONDS -- 92.93%
- -----------------------------------------------------------------
AGRICULTURAL MACHINERY -- 0.76%
AGCO Corp. (144a), 8.50%,
03/15/2006....................... $100,000 $ 102,625
AUTOMOTIVE & ACCESSORIES -- 5.74%
Exide Corp., (Step-Up), 12.25%,
12/15/2004(a).................... 200,000 184,000
Hayes Wheels International, Inc.,
11.00%, 07/15/2006............... 100,000 109,125
Lear Seating Corp., 9.50%,
07/15/2006....................... 200,000 216,000
Speedy Muffler King, Inc., 10.875%,
10/01/2006....................... 250,000 266,562
-----------
775,687
BANKS -- 2.40%
First Nationwide Bank, (144a),
10.625%, 10/01/2003.............. 300,000 324,000
BUILDING PRODUCTS -- 2.23%
Toll Corp., 8.75%, 11/15/2006...... 300,000 301,500
CHEMICALS -- 2.41%
Laroche Industries, Inc., 13.00%,
08/15/2004....................... 300,000 325,500
COMMUNICATIONS -- 9.80%
Bell & Howell Co. Ser. B (Step-Up),
11.50%, 03/01/2005............... 300,000 217,500
Centennial Cellular Corp., 8.875%,
11/01/2001....................... 300,000 289,500
Gray Communications, 10.625%,
10/01/2006....................... 200,000 212,000
K-III Communications, 8.50%,
02/01/2006....................... 200,000 196,500
Paging Network, Inc., 10.125%,
08/01/2007....................... 300,000 306,000
Rogers Communications, Inc.,
10.875%, 04/15/2004.............. 100,000 105,000
-----------
1,326,500
CONSUMER PRODUCTS -- 6.32%
Coty, Inc., 10.25%, 05/01/2005..... 400,000 434,000
Celestica International, Inc.,
10.50%, 12/31/2006............... 400,000 420,000
-----------
854,000
DEFENSE -- 0.83%
Alliant Techsystems, Inc., 11.75%,
03/01/2003....................... 100,000 112,250
FABRICATED METAL PRODUCTS -- 3.28%
Ryerson Tull, Inc., 8.50%,
07/15/2001....................... 200,000 205,000
UCAR Global Enterprises, Inc.,
12.00%, 01/15/2005............... 207,000 238,568
-----------
443,568

<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
- -------------------------------------
FINANCIAL -- 2.47%
Schuller International Group, Inc.,
10.875%, 12/15/2004.............. $300,000 $ 333,750
FOOD & BEVERAGES -- 6.33%
Americold Corp., 11.50%,
03/01/2005....................... 100,000 105,000
Dominick's Finer Foods, 10.875%,
05/01/2005....................... 300,000 332,250
International Home Foods, Inc.,
10.375%, 11/01/2006.............. 300,000 309,750
Keebler Corp., (144a), 10.75%,
07/01/2006....................... 100,000 109,000
-----------
856,000
GAMING -- 5.92%
Argosy Gaming Co., (144a) 13.25%,
06/01/2004....................... 200,000 186,500
Aztar Corp.
11.00%, 10/01/2002............... 100,000 96,750
13.75%, 10/01/2004............... 100,000 106,500
Harvey's Casino Resorts, 10.625%,
06/01/2006....................... 200,000 210,000
Station Casinos, Inc., 10.125%,
03/15/2006....................... 200,000 201,000
-----------
800,750
INDUSTRIAL -- 9.44%
Clark-Schwebel, Inc., 10.50%,
04/15/2006....................... 100,000 106,000
Freedom Chemical Co., 10.625%,
10/15/2006....................... 300,000 315,000
Norcal Waste System, Inc.,
(Step-Up) 12.75%,
11/15/2005(a).................... 300,000 331,500
U.S. Can Corp., 10.125%,
10/15/2006....................... 300,000 315,375
Veritas DGC, Inc., 9.75%,
10/15/2003....................... 200,000 208,000
-----------
1,275,875
MACHINERY -- 0.80%
Terex Corp., (144a), 13.25%,
05/15/2002....................... 100,000 107,750
MEDIA CABLE -- 7.69%
Century Communications
9.75%, 02/15/2002................ 100,000 103,000
9.50%, 03/01/2005................ 100,000 102,500
Frontiervision, 11.00%,
10/15/2006....................... 200,000 202,937
Jones Intercable, Inc., 9.625%,
03/15/2002....................... 200,000 210,000
Marcus Cable Co., 11.875%,
10/01/2005....................... 200,000 211,750
Rogers Cablesystems Limited
9.625%, 08/01/2002............... 100,000 104,250
10.00%, 03/15/2005............... 100,000 106,500
-----------
1,040,937

</TABLE>

See notes to the financial statements.

58
<PAGE> 212

PPM AMERICA/JNL HIGH YIELD BOND SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
- -------------------------------------
MERCHANDISING -- 3.87%
E&S Holdings Corp., (144a),
10.375%, 10/01/2006.............. $400,000 $ 419,000
Simmons Co., 10.75%, 04/15/2006.... 100,000 105,250
-----------
524,250
OIL & GAS -- 5.09%
Cliffs Drilling Co., 10.25%,
05/15/2003....................... 300,000 319,125
Parker Drilling Co., 9.75%,
11/15/2006....................... 350,000 369,250
-----------
688,375
PAPER -- 3.29%
Doman Industries Ltd., 8.75%,
03/15/2004....................... 200,000 187,000
Quno Corp., 9.125%, 05/15/2005..... 250,000 258,125
-----------
445,125
PETROLEUM -- 1.58%
Nuevo Energy Co., 9.50%,
04/15/2006....................... 100,000 106,250
Plains Resources, Inc., 10.25%,
03/15/2006....................... 100,000 107,000
-----------
213,250
PRINTING & PUBLISHING -- 3.28%
Big Flower Press, Inc., 10.75%
08/01/2003....................... 125,000 131,250
Printpack Inc., (144a), 10.625%,
08/15/2006....................... 300,000 312,000
-----------
443,250
RETAIL -- 1.63%
Smith's Food & Drug, 11.25%,
05/15/2007....................... 200,000 221,000
STEEL -- 1.51%
Bar Technologies, Inc., 13.50%,
04/01/2001....................... 100,000 101,500
NS Group, Inc., 13.50%,
07/15/2003....................... 100,000 102,250
-----------
203,750
TEXTILES -- 2.41%
Day International Group, 11.125%,
06/01/2005....................... 100,000 105,000
Synthetic Industries, Inc., 12.75%,
12/01/2002....................... 200,000 220,500
-----------
325,500

<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
- -------------------------------------
TOBACCO -- 2.30%
Dimon, Inc., 8.875%, 06/01/2006.... $300,000 $ 311,250
TRANSPORTATION -- 1.55%
Viking Star Shipping, Inc., 9.625%,
07/15/2003....................... 200,000 209,250
-----------
Total Corporate Bonds
(cost $12,152,861)........... 12,565,692
-----------
WARRANTS & RIGHTS -- 0.01%
- -------------------------------------
STEEL -- 0.00%
Bar Technologies, Inc.............. 100 550
MISCELLANEOUS -- 0.01%
Terex Corp......................... 400 1,400
-----------
Total Warrants & Rights
(cost $831).................... 1,950
-----------
SHORT TERM INVESTMENTS -- 7.06%
- -------------------------------------
COMMERCIAL PAPER -- 6.69%
- -------------------------------------
American Express Corp.,
5.90%, 01/02/1997................ 250,000 249,959
Disney Walt Co., 5.47%,
01/02/1997....................... 250,000 249,962
Ford Motor Credit Co., 6.00%,
01/02/1997....................... 225,000 224,962
General Motors Acceptance Corp.,
5.78%, 01/06/97.................. 180,000 179,856
-----------
904,739
MONEY MARKET FUNDS -- 0.37%
- -------------------------------------
State Street Global Advisor Fund,
5.38%(b)......................... 50,656 50,656
-----------
Total Short Term Investments
(cost $955,395).............. 955,395
-----------
TOTAL INVESTMENTS -- 100%
- -------------------------------------
(cost $13,109,087)................. $13,523,037
==========

</TABLE>

- -------------------------
(a) Denotes deferred interest security that receives no coupon payments until a
predetermined date at which time the stated coupon rate becomes effective.

(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1996.

See notes to the financial statements.

59
<PAGE> 213

PPM AMERICA/JNL MONEY MARKET SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
COMMERCIAL PAPER -- 99.99%
- --------------------------------------
CAPTIVE FINANCE -- 25.09%
American Express Credit Corp.
5.32%, 01/08/1997................. $ 250,000 $ 249,741
5.30%, 01/21/1997................. 130,000 129,617
5.31%, 01/27/1997................. 125,000 124,521
5.30%, 03/17/1997................. 160,000 158,233
5.31%, 03/17/1997................. 300,000 296,681
5.27%, 03/28/1997................. 170,000 167,860
Chrysler Financial Corp.
5.31%, 01/08/1997................. 109,000 108,887
5.33%, 01/09/1997................. 274,000 273,675
5.33%, 01/28/1997................. 250,000 249,001
5.41%, 01/30/1997................. 260,000 258,867
Ford Motor Credit Co.
5.31%, 01/15/1997................. 100,000 99,794
5.33%, 01/23/1997................. 225,000 224,267
5.34%, 01/23/1997................. 145,000 144,527
5.31%, 01/24/1997................. 215,000 214,271
5.32%, 03/17/1997................. 105,000 103,836
5.33%, 04/01/1997................. 200,000 197,335
General Motors Acceptance Corp.
5.45%, 01/06/1997................. 110,000 109,917
5.31%, 01/13/1997................. 110,000 109,805
5.46%, 01/27/1997................. 110,000 109,566
5.32%, 02/03/1997................. 100,000 99,512
5.48%, 02/24/1997................. 100,000 99,178
5.38%, 04/22/1997................. 100,000 98,341
J C Penney Corp.
5.30%, 02/20/1997................. 300,000 297,792
5.31%, 02/28/1997................. 191,000 189,366
5.33%, 03/07/1997................. 190,000 188,172
John Deere Capital Corp.
5.42%, 02/24/1997................. 325,000 322,358
5.40%, 02/28/1997................. 175,000 173,478
Sears Roebuck Acceptance Corp.
5.32%, 01/13/1997................. 125,000 124,778
5.45%, 01/13/1997................. 200,000 199,637
5.40%, 01/17/1997................. 100,000 99,760
5.32%, 01/23/1997................. 400,000 398,700
5.35%, 01/31/1997................. 150,000 149,331
-----------
5,770,804
COMPUTERS -- 4.08%
International Business Machines
Credit Corp.
5.40%, 01/08/1997................. 310,000 309,675
5.31%, 01/14/1997................. 450,000 449,137
5.29%, 01/31/1997................. 180,000 179,207
-----------
938,019

<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
- --------------------------------------
CONSUMER FINANCE -- 20.83%
American General Financial Corp.
5.45%, 01/14/1997................. $ 250,000 $ 249,508
5.50%, 01/17/1997................. 195,000 194,523
5.29%, 01/29/1997................. 165,000 164,321
5.50%, 01/30/1997................. 200,000 199,114
Beneficial Corp.
5.33%, 01/06/1997................. 165,000 164,878
5.30%, 01/10/1997................. 195,000 194,742
5.30%, 01/28/1997................. 150,000 149,405
5.29%, 02/07/1997................. 250,000 248,638
5.32%, 02/10/1997................. 150,000 149,113
Heller Financial, Inc.
5.47%, 01/09/1997................. 200,000 199,757
5.45%, 01/31/1997................. 105,000 104,523
5.36%, 02/21/1997................. 410,000 406,887
5.33%, 04/25/1997................. 190,000 186,793
Household Financial Corp.
5.32%, 01/08/1997................. 130,000 129,866
5.29%, 01/17/1997................. 320,000 319,248
5.30%, 01/17/1997................. 130,000 129,694
5.53%, 01/21/1997................. 300,000 299,078
5.29%, 01/30/1997................. 150,000 149,361
Norwest Financial, Inc.
5.30%, 01/06/1997................. 200,000 199,853
5.41%, 01/07/1997................. 250,000 249,775
5.31%, 01/15/1997................. 105,000 104,783
5.30%, 01/17/1997................. 100,000 99,764
5.39%, 01/24/1997................. 225,000 224,225
5.30%, 02/07/1997................. 150,000 149,183
5.29%, 02/10/1997................. 125,000 124,265
-----------
4,791,297
CONSUMER PRODUCTS -- 9.67%
Coca-Cola Co., 5.95%, 01/10/1997.... 200,000 199,703
Conagra, Inc.
5.45%, 01/24/1997................. 100,000 99,652
5.49%, 02/18/1997................. 150,000 148,900
5.49%, 02/21/1997................. 270,000 267,900
Heinz H J Co.
5.28%, 01/03/1997................. 480,000 479,859
5.28%, 01/07/1997................. 200,000 199,824
5.40%, 01/24/1997................. 255,000 254,120
Proctor & Gamble Co.
5.60%, 01/14/1997................. 200,000 199,596
5.27%, 01/21/1997................. 220,000 219,356
Tyson Foods, Inc., 5.55%,
01/08/1997........................ 155,000 154,833
-----------
2,223,743

</TABLE>

See notes to the financial statements.

60
<PAGE> 214

PPM AMERICA/JNL MONEY MARKET SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
- --------------------------------------
HEALTH CARE -- 6.56%
American Home Products Corp., 5.33%,
01/28/1997........................ $ 650,000 $ 647,402
Schering Corp.
5.30%, 01/29/1997................. 220,000 219,093
5.32%, 01/29/1997................. 185,000 184,235
5.35%, 02/11/1997................. 65,000 64,604
5.30%, 04/22/1997................. 400,000 393,463
-----------
1,508,797
INDEPENDENT FINANCE -- 5.99%
Associates Corp. -- North America
5.31%, 01/14/1997................. 110,000 109,789
5.38%, 01/23/1997................. 300,000 299,014
General Electric Capital Corp.
5.56%, 01/07/1997................. 200,000 199,815
5.55%, 01/29/1997................. 350,000 348,530
5.41%, 01/30/1997................. 105,000 104,541
5.30%, 02/28/1997................. 200,000 198,291
5.34%, 06/16/1997................. 120,000 117,045
-----------
1,377,025
INSURANCE -- 3.89%
USAA Capital Corp.
5.35%, 01/16/1997................. 250,000 249,443
5.29%, 02/06/1997................. 400,000 397,884
5.32%, 02/25/1997................. 250,000 247,968
-----------
895,295
MORTGAGE BANKING -- 4.88%
Countrywide Corp.
5.36%, 01/15/1997................. 150,000 149,687
5.35%, 01/16/1997................. 750,000 748,328
5.36%, 01/22/1997................. 225,000 224,297
-----------
1,122,312
OIL & GAS -- 6.45%
Chevron UK Investment PLC, 5.30%,
01/27/1997........................ 1,000,000 996,172
Consolidated Natural Gas Co.
5.60%, 01/16/1997................. 220,000 219,487
5.62%, 01/22/1997................. 270,000 269,115
-----------
1,484,774

<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
- --------------------------------------
PACKAGING -- 1.86%
Crown, Cork & Seal, Inc.
5.78%, 01/15/1997................. $ 140,000 $ 139,684
5.70%, 01/28/1997................. 290,000 288,760
-----------
428,444
TELECOMMUNICATIONS -- 9.21%
American Telephone & Telegraph Co.,
5.40%, 04/07/1997................. 185,000 182,335
Ameritech Corp.
5.27%, 01/10/1997................. 140,000 139,816
5.33%, 07/11/1997................. 732,000 711,300
Bell South Telecommunications Corp.,
5.50%, 02/13/1997................. 150,000 149,015
GTE Corp.
6.17%, 01/02/1997................. 270,000 269,954
5.47%, 01/14/1997................. 165,000 164,674
5.55%, 01/31/1997................. 360,000 358,335
5.55%, 02/19/1997................. 145,000 143,905
-----------
2,119,334
UTILITIES -- 1.48%
Florida Power Corp., 5.58%,
01/08/1997........................ 342,000 341,629
-----------
TOTAL COMMERCIAL PAPER
- --------------------------------------
(cost $23,001,473).................. 23,001,473
-----------
MONEY MARKET FUNDS -- 0.01%
- --------------------------------------
State Street Global Advisor Fund,
5.38%,(a) (cost $1,772)........... 1,772 1,772
-----------
TOTAL INVESTMENTS -- 100%
- --------------------------------------
(cost $23,003,245).................. $23,003,245
===========
</TABLE>

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

(a) Dividend yields change daily to reflect current market conditions. Rate
shown is the quoted yield as of December 31, 1996.

See notes to the financial statements.

61
<PAGE> 215

PPM AMERICA/JNL VALUE EQUITY SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 96.17%
- ---------------------------------------
AEROSPACE -- 5.69%
Lockheed Martin Corp. ............... 1,900 $ 173,850
Rockwell International Corp.......... 4,400 267,850
TRW, Inc. ........................... 7,100 351,450
United Technologies Corp. ........... 3,800 250,800
-----------
1,043,950
AUTOMOTIVE -- 3.78%
Ford Motor Co. ...................... 11,100 353,812
General Motors Corp. ................ 6,100 340,075
-----------
693,887
BANKS -- 6.46%
BankAmerica Corp. ................... 2,700 269,325
Charter One Financial, Inc. ......... 5,500 231,000
KeyCorp.............................. 6,800 343,400
Mellon Bank Corp. ................... 4,800 340,800
-----------
1,184,525
CHEMICALS -- 4.38%
Grace (W.R.) & Co. .................. 3,500 181,125
PPG Industries, Inc. ................ 6,300 353,587
Rohm & Haas Co. ..................... 3,300 269,363
-----------
804,075
COMPUTERS AND BUSINESS MACHINES --
4.49%
International Business Machines
Corp. ............................. 2,800 422,800
Xerox Corp. ......................... 7,600 399,950
-----------
822,750
DOMESTIC OIL -- 1.39%
Ashland, Inc. ....................... 5,800 254,475
DRUGS & HEALTH CARE -- 6.21%
Baxter International, Inc. .......... 4,400 180,400
Bristol Myers Squibb Co. ............ 2,300 250,125
Columbia/HCA Healthcare Corp. ....... 6,900 281,175
Pharmacia & Upjohn Co. .............. 4,200 166,425
Wellpoint Health Networks, Inc.(a)... 7,600 261,250
-----------
1,139,375
ELECTRIC UTILITIES -- 7.68%
Edison International................. 17,900 355,763
General Public Utilities Corp. ...... 10,300 346,338
Ohio Edison Co. ..................... 15,500 352,625
PECO Energy Co. ..................... 14,000 353,500
-----------
1,408,226
ELECTRICAL EQUIPMENT -- 1.95%
Cooper Industries, Inc. ............. 8,500 358,062
ELECTRONICS & INSTRUMENTATION -- 2.02%
Harris Corp. ........................ 5,400 370,575
FINANCIAL SERVICES -- 3.75%
Beneficial Corp. .................... 5,500 348,562
Chase Manhattan Corp New............. 3,800 339,150
-----------
687,712
FOOD, BEVERAGE, AND TOBACCO -- 7.45%
American Brands, Inc. ............... 7,900 392,037
Anheuser-Busch Cos., Inc. ........... 5,900 236,000
Philip Morris Co., Inc. ............. 3,300 371,663
RJR Nabisco Holdings Corp. .......... 10,800 367,200
-----------
1,366,900
GAS EXPLORATION -- 1.91%
Occidental Petroleum Corp. .......... 15,000 350,625

<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>

COMMON STOCKS (CONTINUED)
- ---------------------------------------
INDUSTRIAL MACHINERY -- 1.94%
Parker Hannifin Corp................. 9,200 $ 356,500
INSURANCE -- 10.67%
Aetna, Inc. ......................... 4,700 376,000
American General Corp. .............. 6,500 265,687
CIGNA Corp. ......................... 2,600 355,225
ITT Hartford Group, Inc. ............ 5,100 344,250
Providian Corp. ..................... 6,900 354,488
TransAmerica Corp. .................. 3,300 260,700
-----------
1,956,350
INTERNATIONAL OIL -- 3.84%
Chevron Corp. ....................... 5,400 351,000
Exxon Corp. ......................... 3,600 352,800
-----------
703,800
LEISURE & ENTERTAINMENT -- 1.76%
Hasbro, Inc. ........................ 8,300 322,663
MERCHANDISING -- 3.64%
Federated Department Stores,
Inc.(a)............................ 9,400 320,775
Penney (J.C.) Co., Inc. ............. 7,100 346,125
-----------
666,900
MINING -- 1.91%
Phelps Dodge Corp. .................. 5,200 351,000
PAPER -- 1.93%
Mead Corp. .......................... 6,100 354,562
PHOTOGRAPHY -- 1.66%
Polaroid Corp. ...................... 7,000 304,500
RAILROADS -- 3.06%
Burlington Northern Sante Fe,
Inc. .............................. 2,400 207,300
CSX Corp. ........................... 8,400 354,900
-----------
562,200
TELECOMMUNICATIONS -- 6.69%
AT&T................................. 9,200 400,200
Sprint Corp. ........................ 10,200 406,725
US West, Inc. ....................... 13,000 419,250
-----------
1,226,175
TEXTILES -- 1.91%
VF Corporation....................... 5,200 351,000
-----------
TOTAL COMMON STOCKS
- ---------------------------------------
(cost $15,689,692)................... 17,640,787
-----------

PRINCIPAL
AMOUNT
--------
SHORT-TERM INVESTMENTS -- 3.83%
- ---------------------------------------
MONEY MARKET FUNDS -- 3.83%
State Street Global Advisor Fund,
5.38%,(b) (cost $702,463).......... $702,463 702,463
-----------
TOTAL INVESTMENTS -- 100%
- ---------------------------------------
(cost $16,392,155)................... $18,343,250
===========
</TABLE>

- -------------------------
(a) Non-income producing.

(b) Dividend yield change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1996.

See notes to the financial statements.

62
<PAGE> 216

SALOMON BROTHERS/JNL GLOBAL BOND SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
CORPORATE BONDS -- 40.37%
- --------------------------------------
UNITED STATES -- 40.37%
- --------------------------------------
AEROSPACE INDUSTRIES -- 1.14%
Talley Industries, 10.75%,
10/15/2003........................ $ 150,000 $ 154,875
CAPITAL GOODS -- 1.15%
Alvey Systems, 11.375%,
01/31/2003........................ 150,000 156,375
FINANCIAL -- 5.69%
Foamex LP/ Foamex Capital Corp.,
11.875%, 10/01/2004............... 250,000 266,250
Mellon Financial, 9.75%,
06/15/2001........................ 50,000 55,584
Paine Webber Group, Inc., 7.00%,
03/01/2000........................ 300,000 302,061
Trump Atlantic City Associates,
11.25%, 05/01/2006................ 150,000 148,500
-----------
772,395
INDUSTRIAL -- 23.59%
Clark-Schwebel, 10.50%,
04/15/2006........................ 250,000 266,250
Cliffs Drilling, 10.25%,
05/15/2003........................ 150,000 159,563
Dole Foods, Inc., 6.75%,
07/15/2000........................ 100,000 99,848
Freedom Chemical Co., 10.625%,
10/15/2006 (144a)................. 150,000 157,500
Iron Mountain, Inc., 10.125%,
10/01/2006........................ 150,000 159,000
Jordan Industries, Inc.,
10.375%, 08/01/2003............... 250,000 246,250
NL Industries, (Step-Up), 13.00%,
10/15/2005(a)..................... 150,000 129,000
National Energy Group, Inc., 10.75%,
11/01/2006 (144a)................. 150,000 158,250
Norcal Waste System,
13.00%, (Step-Up), 11/15/2005..... 150,000 165,750
Parker Drilling Co.,
9.75%, 11/15/2006................. 150,000 158,250
Penn Traffic Co., 9.625%,
04/15/2005........................ 250,000 140,000
Printpack, Inc., 10.625%, 08/15/2006
(144a)............................ 100,000 104,000
Rayovac Corp., 10.25%, 11/01/2006... 150,000 153,750
Remington Product Co., 11.00%,
05/15/2006 (144a)................. 150,000 128,250
Renco Metals, Inc.,
11.50%, 07/01/2003................ 150,000 156,750
Selmer Co., Inc., (144a), 11.00%,
05/15/2005........................ 250,000 270,000
Southdown, Inc. Ser. B, 10.00%,
03/01/2006........................ 125,000 131,875
Stroh Brewery Co., 11.10%,
07/01/2006........................ 150,000 156,375
Twin Labs, Inc., (144a), 10.25%,
05/15/2006........................ 150,000 154,500
Wyndham Hotel Corp., 10.50%,
05/15/2006........................ 100,000 106,500
-----------
3,201,661

<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
- --------------------------------------
UNITED STATES (CONTINUED)
- ----------------------------------------------------------------
PUBLISHING -- 1.98%
American Media Operations,
11.625%, 11/15/2004............... $ 250,000 $ 268,750
TELECOMMUNICATION -- 5.03%
Adelphia Communications,
12.50%, 05/15/2002................ 150,000 153,750
Diamond Cable Communications, Inc.,
11.75%, 12/15/2005................ 225,000 162,000
People's Choice (Step-Up), 13.125%,
06/01/2004(a)..................... 200,000 84,000
Telex Communications, Inc., 12.00%,
07/15/2004........................ 200,000 222,000
Winstar Communications, Inc., (Step-
Up), 14.00%, 10/15/2005(a)........ 100,000 61,000
-----------
682,750
TRANSPORTATION -- 1.02%
Airplanes Pass-through Trust,
10.875%, 03/15/2019............... 125,000 137,664
UTILITIES -- 0.77%
Arkla, Inc., 8.875%, 07/15/1999..... 100,000 105,044
-----------
Total Corporate Bonds
(Cost $5,455,638)............... 5,479,514
-----------
GOVERNMENT BONDS -- 51.37%
- --------------------------------------
ARGENTINA -- 4.40%
- --------------------------------------
Argentina Floating Rate Bond,
6.625%, 03/31/2005(b)............. 686,000 596,820
AUSTRALIA -- 0.11%
- --------------------------------------
Australia Government Bond, 6.75%,
11/15/2006........................ 20,000 15,223
BRAZIL -- 3.16%
- --------------------------------------
Brazil IDU Trust -- Merrill,
6.6875%, 01/01/2001(b)............ 227,500 220,106
Brazil C Bond (payment-in-kind
bond), 8.00%, 04/15/2014(c)....... 275,343 208,990
-----------
429,096
CANADA -- 3.41%
- --------------------------------------
Canadian Government Bond, 6.50%,
08/01/1999........................ 330,000 251,851
7.50%, 09/01/2000................. 150,000 118,028
7.00%, 09/01/2001................. 120,000 93,069
-----------
Total Canada...................... 462,948
DENMARK -- 0.67%
- --------------------------------------
Denmark Government Bond, 8.00%,
11/15/2001........................ 480,000 90,446
ECUADOR -- 0.86%
- --------------------------------------
Ecuador Pars (Step-Up), 3.25%,
02/28/2025(d)..................... 250,000 116,250

</TABLE>

See notes to the financial statements.

63
<PAGE> 217

SALOMON BROTHERS/JNL GLOBAL BOND SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
GOVERNMENT BONDS (CONTINUED)
- --------------------------------------

GERMANY -- 0.86%
- --------------------------------------
Germany (Federal Republic),
8.25%, 09/20/2001................. $ 40,000 $ 29,761
7.50%, 11/11/2004................. 120,000 87,177
-----------
Total Germany..................... 116,938
IRELAND -- 1.39%
- --------------------------------------
Ireland Government Bond,
6.25%, 04/01/1999................. 50,000 85,197
6.50%, 10/18/2001................. 60,000 103,355
-----------
Total Ireland..................... 188,552
MEXICO -- 1.93%
- --------------------------------------
Mexico Global Bond, 11.50%,
05/15/2026........................ 250,000 262,500
MOROCCO -- 2.72%
- --------------------------------------
Morocco Loan Participation, 6.4375%,
01/01/2009(b)..................... 450,000 369,563
PANAMA -- 1.02%
- --------------------------------------
Panama Government Bond, 3.50%,
07/17/2014........................ 200,000 139,000
PHILIPPINES -- 1.79%
- --------------------------------------
Philippines Debt Conversion Bond,
6.375%, 12/01/2009(b)............. 250,000 243,125
SOUTH KOREA -- 1.62%
- --------------------------------------
Korea Development Bank, 9.60%,
12/01/2000........................ 200,000 220,222
UNITED STATES -- 26.02%
- --------------------------------------
U.S. GOVERNMENT AGENCIES -- 7.50%
Federal Home Loan Mortgage Company
10.00%, 05/15/2020................ 49,212 52,796
6.50%, 10/01/2026(e).............. 300,000 286,779
Federal National Mortgage
Association
13.00%, 11/01/2015................ 12,339 14,571
10.40%, 04/25/2019................ 80,186 86,501
7.00%, 03/01/2026(e).............. 300,000 293,343
6.50%, 02/01/2026................. 297,604 283,839
-----------
1,017,829
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
GOVERNMENT BONDS (CONTINUED)
- --------------------------------------
UNITED STATES (CONTINUED)
- ----------------------------------------------------------------
U.S. TREASURY NOTES -- 18.52%
U.S. Treasury Note
5.00%, 01/31/1998................. $ 300,000 $ 297,890
5.625%, 02/28/2001................ 650,000 637,104
6.25%, 04/30/2001................. 300,000 300,657
6.50%, 08/31/2001................. 150,000 151,641
5.875%, 11/15/2005................ 275,000 265,161
6.875%, 05/15/2006................ 190,000 195,789
7.00%, 07/15/2006................. 50,000 51,946
6.75%, 08/15/2026................. 60,000 60,450
6.50%, 10/15/2026................. 550,000 553,008
-----------
2,513,646
-----------
Total United States............. 3,531,475
-----------
VENEZUELA -- 1.41%
- --------------------------------------
Republic of Venezuela-Par, 6.75%,
03/31/2020........................ 250,000 190,938
-----------
Total Government Bonds
(Cost $6,793,608)............. 6,973,096
-----------
WARRANTS -- 0.00%
- --------------------------------------
VENEZUELA -- 0.00%
Republic of Venezuela Warrants (cost
$0)............................... 1,250 --
-----------
SHORT TERM INVESTMENTS -- 8.26%
- --------------------------------------
MONEY MARKET FUNDS -- 0.00%
State Street Global Advisor Fund,
5.38%(f).......................... 496 496
REPURCHASE AGREEMENTS -- 8.26%
Repurchase Agreement with J P
Morgan, 6.60% (Collateralized by
$933,000 U.S. Treasury Bond 8.50%
due 02/15/20, market value --
$1,179,661), acquired on 12/31/96,
due 01/02/97...................... 1,121,000 1,121,000
-----------
Total Short Term Investments
(Cost $1,121,496)............. 1,121,496
-----------
TOTAL INVESTMENTS -- 100%
- --------------------------------------
(Cost $13,370,742).................. $13,574,106
===========
</TABLE>

- -------------------------
(a) Denotes deferred interest security that receives no coupon payments until a
predetermined date at which time the stated coupon rate becomes effective.

(b) Coupon is indexed to 6 Month Libor. Rate stated is rate in effect on
December 31, 1996.

(d) Coupon payment periodically increases over the life of the security. Rate
stated is in effect as of December 31, 1996.

(e) Investment purchased on a when-issued basis.

(f) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1996.

See notes to the financial statements.

64
<PAGE> 218

SALOMON BROTHERS/JNL
U.S. GOVERNMENT & QUALITY BOND SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES -- 73.58%
- --------------------------------------
U.S. TREASURY NOTES -- 35.22%
U.S. Treasury Note
5.75%, 12/31/1998................. $1,000,000 $ 998,203
5.625%, 02/28/2001................ 500,000 490,080
6.50%, 05/31/2001................. 100,000 101,094
6.625%, 07/31/2001................ 300,000 304,782
6.50%, 08/31/2001................. 500,000 505,470
6.50%, 08/15/2005................. 80,000 80,513
5.875%, 11/15/2005................ 185,000 178,381
6.875%, 05/15/2006................ 250,000 257,616
7.00%, 07/15/2006................. 725,000 753,210
6.50%, 10/15/2006................. 525,000 527,872
-----------
4,197,221
U.S. TREASURY BONDS -- 5.80%
8.125%, 08/15/2019................ 140,000 161,941
6.75%, 08/15/2026................. 525,000 528,937
-----------
690,878
U.S. GOVERNMENT AGENCY & AGENCY BACKED
ISSUES -- 32.56%
Federal Home Loan Mortgage Corp.
5.94%, 06/13/2000................. 300,000 297,141
6.00%, 09/01/2010................. 4,465 4,333
11.75%, 01/01/2011................ 5,802 6,396
7.00%, 07/01/2011................. 127,812 127,732
8.25%, 04/01/2017................. 496,983 513,950
Federal National Mortgage
Association
14.50%, 11/01/2014................ 11,225 13,845
12.50%, 08/01/2015................ 7,833 9,201
12.50%, 09/01/2015................ 28,513 33,494
13.00%, 11/15/2015................ 26,078 30,797
12.00%, 01/01/2016................ 26,999 31,209
11.50%, 04/01/2019................ 8,665 9,880
11.50%, 02/01/2020................ 39,814 45,401
10.50%, 08/01/2020................ 160,644 176,709
7.00%, 08/01/2025(a).............. 100,000 97,781
6.50%, 03/01/2026................. 440,611 420,783
7.00%, 05/01/2026................. 342,833 335,225
7.00%, 10/01/2026(a).............. 800,000 782,248
Government National Mortgage
Association
13.50%, 07/15/2010................ 196,013 235,996
7.00%, 12/25/2025(a).............. 300,000 293,436
Student Loan Marketing Association
7.50%, 03/08/2000................. 400,000 414,436
-----------
3,879,993
-----------
Total U.S. Government Securities
(cost $8,708,609)............. 8,768,092
</TABLE> -----------

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
CORPORATE BONDS -- 2.00%
- --------------------------------------
FINANCIAL -- 2.00%
Associate Corp.
5.60%, 01/15/2001................. $ 100,000 $ 96,399
Ford Motor Credit Co.
6.25%, 12/08/2005................. 150,000 142,122
-----------
Total Corporate Bonds
(cost $248,223)............... 238,521
-----------
SHORT TERM INVESTMENTS -- 24.42%
- --------------------------------------
MONEY MARKET FUNDS -- 0.01%
State Street Global Advisor Fund,
5.38%,(b)......................... 788 788
REPURCHASE AGREEMENTS -- 24.41%
Repurchase agreement with J.P.
Morgan, 6.60% (Collateralized by
$2,787,000 U.S. Treasury Bond
7.125% due 02/15/23, market value
-- $2,931,419), acquired on
12/31/1996, due 01/02/1997........ 2,909,000 2,909,000
-----------
Total Short Term Investments
(cost $2,909,788)............. 2,909,788
-----------
TOTAL INVESTMENTS -- 100%
- --------------------------------------
(cost $11,866,620).................. $11,916,401
</TABLE> ===========
- -------------------------
(a) Investment purchased on a when-issued basis.

(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1996.

See notes to the financial statements.

65
<PAGE> 219

T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 93.81%
- --------------------------------------
FRANCE -- 0.53%
- --------------------------------------
CONFECTIONS & BEVERAGES -- 0.53%
LVMH (Louis Vuitton
Moet-Hennessy)...................... 630 $ 175,941
HONG KONG -- 0.88%
- --------------------------------------
FINANCE COMPANIES -- 0.88%
Hutchinson Whampoa Ltd.............. 37,000 290,613
ITALY -- 0.87%
- --------------------------------------
FINANCE COMPANIES -- 0.51%
Banca Fideuram SPA.................. 77,200 169,718
TELECOMMUNICATIONS -- 0.36%
Telecom Italia SPA.................. 18,600 36,293
Telecom Italia Mobile (a)........... 32,000 80,897
-----------
117,190
-----------
Total Italy....................... 286,908
MALAYSIA -- 0.90%
- --------------------------------------
BUILDING & CONSTRUCTION -- 0.90%
United Engineers (Malaysia) Ltd. ... 32,900 297,018
MEXICO -- 0.61%
- --------------------------------------
CONSUMER PRODUCTS -- 0.61%
Kimberly-Clark De Mexico, SA de
CV.................................. 10,200 201,486
NETHERLANDS -- 2.39%
- --------------------------------------
CONSUMER PRODUCTS -- 1.65%
Elsevier NV......................... 12,700 214,793
Hagemeyer NV........................ 1,650 131,981
Ver Ned Uitgevers................... 9,400 196,548
-----------
543,322
COMPUTERS & TECHNOLOGY -- 0.74%
Getronic NV......................... 9,000 244,483
-----------
Total Netherlands................. 787,805
PORTUGAL -- 1.16%
- --------------------------------------
TELECOMMUNICATIONS -- 1.16%
Telecel -- Communicacoes Pessoais,
SA, (a)........................... 6,000 383,102
SOUTH AFRICA -- 0.38%
- --------------------------------------
METALS & MINING -- 0.38%
Rustenburg Platinum Holdings........ 9,100 124,484
SWEDEN -- 3.18%
- --------------------------------------
DRUGS -- 2.25%
Astra AB -- Class B................. 4,700 226,734
Novartis AG (a)..................... 450 515,390
-----------
742,124
FINANCE COMPANIES -- 0.43%
Kinnevik AB -- Class B.............. 5,100 140,589
RETAIL -- 0.50%
Hennes & Mauritz -- Class B......... 1,200 166,102
-----------
Total Sweden...................... 1,048,815
SWITZERLAND -- 0.35%
- --------------------------------------
INDUSTRIAL MACHINERY -- 0.35%
Sig Schweizerische Industrie........ 45 113,970
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
UNITED KINGDOM -- 3.34%
- --------------------------------------
BUSINESS SERVICES -- 1.21%
Rentokil Group PLC.................. 52,700 $ 397,259
FINANCIAL SERVICES -- 1.63%
Tomkins PLC......................... 116,300 537,965
TELECOMMUNICATIONS -- 0.50%
Vodafone Group PLC.................. 39,000 165,033
-----------
Total United Kingdom.............. 1,100,257
UNITED STATES -- 79.22%
- --------------------------------------
AUTOMOBILE & PARTS -- 0.59%
Exide Corp. ........................ 8,500 195,500
BROADCAST & COMMUNICATIONS -- 1.52%
Walt Disney Co. .................... 7,200 501,300
BUSINESS SERVICES -- 2.00%
CUC International (a)............... 8,600 204,250
Gaylord Entertainment Co. .......... 15,035 343,926
Sabre Group Holdings, Inc., (a)..... 4,000 111,500
-----------
659,676
CHEMICALS -- 0.45%
Great Lakes Chemical Corp. ......... 3,200 149,600
COMPUTERS & SOFTWARE -- 7.53%
Automatic Data Processing, Inc...... 8,600 368,725
Cisco Systems, Inc. (a)............. 8,600 547,175
Ceridian Corp. (a).................. 3,200 129,600
First Data Corp. ................... 9,502 346,823
Microsoft Corp. (a)................. 4,200 347,025
Oracle Systems Corp. (a)............ 7,150 298,513
3Com Corp. (a)...................... 6,100 447,588
-----------
2,485,449
CONFECTIONS & BEVERAGES -- 5.26%
Anheuser-Busch Cos., Inc. .......... 6,800 272,000
Coca-Cola Co. ...................... 18,200 957,775
Pepsico, Inc. ...................... 17,300 506,025
-----------
1,735,800
CONSUMER PRODUCTS -- 4.65%
Crown Cork & Seal, Inc. ............ 4,900 266,437
Nike, Inc. Class B.................. 3,500 209,125
Philip Morris Cos., Inc. ........... 2,500 281,562
Pioneer HI Bred International,
Inc. ............................. 5,400 378,000
Proctor & Gamble Co. ............... 3,700 397,750
-----------
1,532,874
DIVERSIFIED -- 1.14%
Tyco International, Ltd. ........... 7,100 375,412
DRUGS -- 4.52%
Amgen, Inc. (a)..................... 7,300 396,937
Biogen, Inc. (a).................... 6,800 263,500
Cardinal Health, Inc. .............. 6,900 401,925
Merck & Co., Inc. .................. 5,400 427,950
-----------
1,490,312
</TABLE>
See notes to the financial statements.

66
<PAGE> 220

T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>

COMMON STOCKS (CONTINUED)
- --------------------------------------
UNITED STATES (CONTINUED)
- --------------------------------------
ELECTRONICS -- 8.38%
Electronic Data Systems Corp. ...... 6,800 $ 294,100
General Electric Co. ............... 10,800 1,067,850
Hewlett Packard Co. ................ 6,300 316,575
Intel Corp. ........................ 6,300 824,907
Maxim Integrated Products, Inc.
(a)............................... 2,900 125,425
Xilinx, Inc. (a).................... 3,700 136,206
-----------
2,765,063
FINANCIAL SERVICES -- 6.98%
Federal Home Loan Mortgage Corp. ... 9,900 1,090,238
Federal National Mortgage
Association....................... 25,400 946,150
Green Tree Financial Corp. ......... 6,900 266,513
-----------
2,302,901
FOOD SERVICE -- 0.75%
McDonald's Corp. ................... 5,500 248,875
HEALTH PRODUCTS & CARE -- 5.49%
Johnson & Johnson................... 12,500 621,875
Pfizer, Inc. ....................... 6,200 513,825
Warner-Lambert Co. ................. 9,000 675,000
-----------
1,810,700
INSURANCE -- 6.77%
Ace Limited......................... 5,400 324,675
Fairfax Financial Holding........... 850 180,019
Partner Re Holdings Limited......... 13,700 465,800
Traveler's/Aetna Property Casualty
Corp. ............................ 19,400 686,275
UNUM Corp. ......................... 8,000 578,000
-----------
2,234,769
MEDICAL SERVICES & SUPPLIES -- 5.69%
Boston Scientific Corp. (a)......... 2,600 156,000
Columbia / HCA Health Corp. ........ 9,200 374,900
Genentech, Inc. (a)................. 8,900 477,262
Medtronic, Inc. .................... 3,500 238,000
Tag Heuer International, SA (a)..... 39,100 630,488
-----------
1,876,650
MERCHANDISING -- 1.01%
Tupperware Corp. ................... 6,200 332,475
METALS & MINING -- 1.09%
Barrick Gold Corp................... 9,100 261,625
Pohang Iron & Steel Co. -- ADR...... 800 16,200
Rustenburg Platinum Holdings........ 6,008 82,204
-----------
360,029
OIL & GAS -- 2.00%
Royal Dutch Petroleum Co. -- ADR.... 1,700 290,275
Western Atlas, Inc. (a)............. 5,200 368,550
-----------
658,825
PACKAGED FOOD -- 0.95%
Heinz H J Co. ...................... 8,800 314,600
PRINTING & PUBLISHING -- 0.93%
Reuters Holdings PLC -- ADR......... 4,000 306,000
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- --------------------------------------
UNITED STATES (CONTINUED)
- --------------------------------------
RETAIL -- 6.66%
American Stores Co.................. 5,000 $ 204,375
Circuit City Stores, Inc. .......... 11,000 331,375
Gucci Group N V..................... 1,700 108,587
Hasbro, Inc. ....................... 6,900 268,238
Home Depot, Inc. ................... 6,400 320,800
Revco D.S., Inc. (a)................ 17,800 658,600
Walmart Stores, Inc. ............... 13,300 304,237
-----------
2,196,212
TELECOMMUNICATIONS -- 3.15%
Compania Anon Nacional Telecom De
Venezuela -- ADR (a).............. 7,100 199,688
Grupo Iusacell S.A. -- ADR (a)...... 1,900 14,488
Grupo Iusacell S.A. DE CV (a)....... 36,300 208,725
Telecomunicacoes Brasileiras
Telebras SA -- ADR................ 3,400 260,100
Vodafone Group PLC -- ADR........... 8,600 355,825
-----------
1,038,826
TRANSPORTATION -- 0.86%
Tranz Rail Holdings -- ADR (a)...... 16,100 284,769
WHOLESALE -- 0.85%
Alco Standard Corp. (a)............. 5,400 278,775
-----------
Total United States............... 26,135,392
-----------
Total Common Stock
(cost $26,952,849)............ 30,945,791
-----------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
CORPORATE BONDS -- 0.19%
- --------------------------------------
INDUSTRIAL -- 0.19%
Reliance Industries Ltd. Convertible
B, 3.50%, 11/03/1999, convertible
until 10/03/1999.................... $ 60,000 63,381
----------
Total Corporate Bonds
(cost $61,666).................. 63,381
----------
SHORT-TERM INVESTMENTS -- 6.00%
- --------------------------------------
COMMERCIAL PAPER -- 5.22%
Abbott Laboratories
6.15%, 01/03/1997................. 1,260,000 1,259,569
Ciesco L P
5.45%, 02/06/1997................. 100,000 99,455
Dillard Investment Company
5.52%, 01/10/1997................. 181,000 180,750
Kellogg Company
5.38%, 02/07/1997................. 185,000 183,977
-----------
1,723,751
FEDERAL HOME LOAN MORTGAGE NOTES -- 0.60%
5.50%, 01/09/1997................... 197,000 196,759
</TABLE>

See notes to the financial statements.

67
<PAGE> 221

T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES

SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
SHORT-TERM INVESTMENTS (CONTINUED)
- --------------------------------------

UNITED STATES (CONTINUED)
- --------------------------------------
MONEY MARKET FUNDS -- 0.00%
State Street Global Advisor Fund
5.38% (b)......................... $ 386 $ 386
U.S. TREASURY BILLS -- 0.18%
4.98%, 01/23/1997................. 59,000 58,820
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- ------
<S> <C> <C>
SHORT-TERM INVESTMENTS (CONTINUED)
- --------------------------------------

UNITED STATES (CONTINUED)
- --------------------------------------
Total Short Term Investments
(cost $1,979,716)................. $ 1,979,716
-----------
TOTAL INVESTMENTS -- 100%
- --------------------------------------
(cost $28,994,231).................. $32,988,888
===========

</TABLE>

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

(a) Non-income producing.

(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted as of December 31, 1996.

See notes to the financial statements.

68
<PAGE> 222

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 93.73%
- ---------------------------------------
ARGENTINA -- 0.23%
- ----------------
ENERGY -- 0.21%
Naviera Perez Compano -- Class B..... 13,430 $ 94,432
Sociedad Comercial Del Plata......... 2,790 7,144
-----------
101,576
TELECOMMUNICATIONS -- 0.02%
Telecom Argentina STET............... 1,630 6,717
-----------
Total Argentina.................... 108,293
AUSTRALIA -- 1.64%
- ---------------------------------------
BASIC INDUSTRY -- 0.59%
Broken Hill Properties Co............ 8,043 114,562
Lend Lease Corp...................... 2,365 45,868
Smith (Howard) Ltd................... 3,113 25,610
Tab Corp. Holdings Ltd............... 12,000 57,229
Western Mining Corp. Holdings Ltd.... 6,000 37,819
-----------
281,088
CONSUMER PRODUCTS -- 0.27%
Coca-Cola Amatil..................... 971 10,381
News Corp............................ 16,330 86,186
Publishing & Broadcasting Ltd........ 7,000 34,051
-----------
130,618
FINANCIAL COMPANIES -- 0.41%
Australia & New Zealand Bank Group
Ltd................................ 7,000 44,122
Commonwealth Installment Receipts.... 7,300 45,433
National Australia Bank.............. 3,113 36,621
Westpac Banking Corp................. 12,000 68,293
-----------
194,469
ENERGY -- 0.32%
Australia Gas Light Co............... 14,237 81,024
Woodside Petroleum Ltd............... 10,000 73,047
-----------
154,071
INSURANCE -- 0.05%
National Mutual Holdings............. 15,000 22,415
-----------
Total Australia.................... 782,661
AUSTRIA -- 0.04%
- ---------------------------------------
ENERGY -- 0.02%
EVN-Energie Versorgung Niedr......... 60 9,032
TRANSPORTATION & STORAGE -- 0.02%
Flughafen Wien AG.................... 190 9,686
-----------
Total Austria...................... 18,718
BELGIUM -- 0.99%
- ---------------------------------------
BASIC INDUSTRY -- 0.18%
UCB.................................. 33 86,017
FINANCIAL COMPANIES -- 0.81%
Credit Communal Holding Dexia(a)..... 241 21,990
Generale Banque...................... 356 127,634
Kredietbank.......................... 730 239,288
-----------
388,912
-----------
Total Belgium...................... 474,929
</TABLE>

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ --------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
BRAZIL -- 0.47%
- ---------------------------------------
BASIC INDUSTRY -- 0.08%
Sider Nacional....................... 706,000 $ 20,043
White Martins SA..................... 11,320,000 16,341
-----------
36,384
ENERGY -- 0.23%
Electrobras.......................... 42,330 15,154
Gruma SA De CV(a).................... 11,531 70,311
Gruma SA De CV -- ADR (144a)......... 1,047 25,180
-----------
110,645
TELECOMMUNICATIONS -- 0.16%
Telebras............................. 755,750 54,185
Companhia Brasileira De Dist......... 1,390 24,747
-----------
78,932
-----------
Total Brazil....................... 225,961
CANADA -- 0.29%
- ---------------------------------------
BASIC INDUSTRY -- 0.21%
Alcan Aluminium...................... 3,040 103,235
FINANCIAL COMPANIES -- 0.08%
Royal Bank of Canada................. 570 20,023
Royal Bank of Canada................. 740 16,397
-----------
36,420
-----------
Total Canada....................... 139,655
CZECH REPUBLIC -- 0.03%
- ---------------------------------------
TELECOMMUNICATIONS -- 0.03%
SPT Telecommunications AS............ 130 16,185
DENMARK -- 0.23%
- ---------------------------------------
FINANCIAL COMPANIES -- 0.21%
Den Danske Bank AB................... 800 64,507
Unidanmark........................... 670 34,690
-----------
99,197
TELECOMMUNICATIONS -- 0.02%
Teledanmark -- Class B............... 200 11,034
-----------
Total Denmark...................... 110,231
FINLAND -- 0.21%
- ---------------------------------------
CAPITAL GOODS -- 0.21%
Nokia (AB) OY........................ 1,770 102,660
FRANCE -- 8.53%
- ---------------------------------------
BASIC INDUSTRY -- 0.67%
Cie De Saint Gobain.................. 1,350 190,980
GTM Entrepose........................ 410 18,965
Lapeyre.............................. 880 50,543
Pathe(a)............................. 250 60,229
-----------
320,717
CAPITAL GOODS -- 0.49%
Chargeurs............................ 250 12,383
Legrand.............................. 359 61,165
Rexel................................ 220 66,782
Schneider............................ 1,980 91,549
-----------
231,879
</TABLE>
See notes to the financial statements.

69
<PAGE> 223

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
FRANCE (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS -- 4.44%
Accor................................ 435 $ 55,082
Canal Plus........................... 420 92,767
Carrefour Super Marche............... 705 458,722
Castorama Dubois Investissment....... 212 36,488
Guilbert SA.......................... 598 116,984
Havas................................ 400 28,062
L'Oreal.............................. 162 61,010
LVMH Louis Vuitton Moet-Hennessy..... 1,240 346,297
Pinault Printemps Redoute............ 893 354,205
Sanofi............................... 1,467 145,894
Sodexho.............................. 480 267,361
Television Francais.................. 1,660 158,689
-----------
2,121,561
ENERGY -- 1.15%
Elf Aquitaine........................ 1,790 162,941
Primagaz (Cie Des Gaz Petrole)....... 755 88,909
Total SA -- Class B.................. 3,667 298,251
-----------
550,101
FINANCIAL COMPANIES -- 0.11%
CLF Dexia............................ 160 13,939
Credit Local De France............... 244 21,256
Societe Generale..................... 180 19,462
-----------
54,657
INSURANCE -- 0.18%
AXA.................................. 815 51,836
Assurances Generales................. 1,086 35,059
-----------
86,895
TELECOMMUNICATIONS -- 0.19%
Alcatel Alsthom...................... 1,110 89,168
UTILITIES -- 1.30%
Eaux (Cie Generale Des).............. 4,990 618,400
-----------
Total France....................... 4,073,378
GERMANY -- 3.55%
- ---------------------------------------
BASIC INDUSTRY -- 1.62%
Bayer AG............................. 9,116 372,033
Bilfinger & Berger Bauag............. 1,100 40,389
Hoechst AG........................... 1,110 52,442
Schering AG.......................... 434 36,637
Veba AG.............................. 4,685 270,968
-----------
772,469
CAPITAL GOODS -- 0.30%
Buderus AG........................... 78 38,524
Mannesmann AG........................ 238 103,162
-----------
141,686
CONSUMER PRODUCTS -- 0.91%
Altana AG............................ 31 24,134
Gehe AG.............................. 5,604 358,717
Hornbach Baumarkt AG................. 200 6,343
Praktiker Bau-und Heimwerkemaekte.... 629 12,590
Volkswagen AG........................ 80 33,273
-----------
435,057
<CAPTION>

MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
GERMANY (CONTINUED)
- -----------------------------------------------------------------
COMPUTERS & SOFTWARE -- 0.08%
Sap AG............................... 280 $ 38,121
FINANCIAL COMPANIES -- 0.45%
Allianz AG Holdings.................. 94 171,042
Deutsche Bank AG..................... 923 43,127
-----------
214,169
MEDICAL SERVICES & SUPPLIES -- 0.19%
Rhon-Klinikum AG..................... 900 94,164
-----------
Total Germany...................... 1,695,666
HONG KONG -- 3.58%
- ---------------------------------------
BASIC INDUSTRY -- 0.15%
Cathay Pacific Air................... 47,000 74,135
CHEMICALS -- 0.19%
Shanghai Petrochemical Co. Ltd....... 180,000 54,690
Yizheng Chemical Fiber Co. Ltd....... 144,000 35,002
-----------
89,692
FINANCE COMPANIES -- 3.24%
Dao Heng Bank Group Ltd.............. 23,000 110,324
Guangdong Investments Ltd............ 94,000 90,542
Guangzhou Investments................ 194,000 92,805
Hopewell Holdings.................... 251,000 162,260
Hutchison Whampoa Ltd................ 36,000 282,759
New World International.............. 50,205 339,157
Swire Pacific Co..................... 21,000 200,239
Wharf Holdings....................... 54,000 269,494
-----------
1,547,580
-----------
Total Hong Kong.................... 1,711,407
ITALY -- 1.70%
- ---------------------------------------
BASIC INDUSTRY -- 0.28%
Ente Nazionale Idrocarburi Spa
(ENI).............................. 24,000 123,164
Finanziaria Autogrill Spa(a)......... 3,031 2,937
Unicem (Union-Cem-March Emil)........ 1,400 9,136
-----------
135,237
CONSUMER PRODUCTS -- 0.04%
Rinascente (La)...................... 3,000 17,403
FINANCIAL COMPANIES -- 0.32%
Banca Fideuram....................... 21,040 46,255
IMI Spa.............................. 7,040 60,330
Istituto National Assicurazioni...... 8,000 10,421
Mediolanum(a)........................ 3,950 37,391
-----------
154,397
UTILITIES -- 0.09%
Italgas (Societa Italiana II Gas)
Spa................................ 10,000 41,760
TELECOMMUNICATIONS -- 0.97%
STET................................. 38,000 172,841
STET Di Risp......................... 13,000 43,919
Telecom Italia Di Risp............... 26,979 70,071
Telecom Italia Mobile(a)............. 63,601 160,784
Telecom Italia Spa................... 10,797 15,409
-----------
463,024
-----------
Total Italy........................ 811,821

</TABLE>

See notes to the financial statements.

70
<PAGE> 224

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
JAPAN -- 20.85%
- ---------------------------------------
BASIC INDUSTRY -- 5.12%
Daiwa House Industry Co.............. 16,000 $ 205,854
Denso Corp........................... 17,000 409,550
Inax................................. 5,000 37,043
Ishihara Sangyo Kaisha............... 6,000 14,507
Kawada Industries.................... 1,000 6,131
Kumagai Gumi......................... 10,000 24,782
Kuraray Co. Ltd...................... 16,000 147,828
Mitsubishi Paper Mills Ltd........... 8,000 31,293
National House Industry.............. 3,000 39,893
Nippon Hodo.......................... 3,000 34,712
Nippon Steel Corp.................... 74,000 218,530
Sangetsu Co. Ltd..................... 1,000 20,896
Sekisui Chemical Co. Ltd............. 19,000 191,952
Sekisui House........................ 14,000 142,647
Shinetsu Chemical Co. Ltd............ 11,000 200,414
Sumitomo Electric Industries Ltd..... 26,000 363,699
Sumitomo Forestry Co. Ltd............ 7,000 85,226
Teijin............................... 36,000 157,292
Tokyo Steel Manufacturing............ 6,000 85,485
Yurtec Corp.......................... 2,100 28,469
-----------
2,446,203
CAPITAL GOODS -- 7.55%
Advantest............................ 1,100 51,576
Alps Electric Co..................... 6,000 65,279
Amada Co. Ltd........................ 12,000 93,256
Canon, Inc........................... 19,000 419,998
Citizen Watch Co..................... 7,000 50,168
DDI Corp............................. 19 125,671
Dai Nippon Screen Manufacturing...... 11,000 81,211
Daifuku Co. Ltd...................... 2,000 25,214
Fanuc Co. Ltd........................ 3,000 96,106
Hitachi Ltd.......................... 21,000 195,838
Hitachi Zosen Corp................... 18,000 69,942
Kokuyo Co............................ 7,000 172,869
Komatsu Ltd.......................... 18,000 147,656
Komori Corp.......................... 5,000 106,208
Kyocera Corp......................... 6,000 374,061
Makita Corp.......................... 10,000 139,884
Mitsubishi Heavy Industries Ltd...... 54,000 428,978
Murata Manufacturing Co. Ltd......... 7,000 232,709
NEC Corp............................. 36,000 435,196
Nippon Telephone & Telegraph Corp.... 18 136,465
SEGA Enterprises..................... 2,000 67,352
Tokyo Electron Ltd................... 3,000 91,961
-----------
3,607,598
CONSUMER PRODUCTS -- 6.44%
Daiichi Pharmaceutical............... 13,000 208,790
Honda Motor Co....................... 2,000 57,163
Ito-Yokado Co........................ 5,000 217,598
Kao Corp............................. 6,000 69,942
Marui Co. Ltd........................ 12,000 216,562
Matsushita Electric Industrial Co.... 18,000 293,757
Mitsubishi Corp...................... 8,000 82,894
Pioneer Electronic Corp.............. 9,000 171,747
Sankyo............................... 12,000 339,867

MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
JAPAN (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
- -----------------------------------------------------------------
Seven Eleven Japan Co. Ltd........... 2,000 $ 117,088
Sharp Corp........................... 15,000 213,712
Shiseido Co.......................... 4,000 46,283
Sony Corp............................ 4,500 294,923
Sumitomo Corp........................ 24,000 189,206
TDK Corp............................. 4,000 260,772
Toppan Printing...................... 12,000 150,246
UNY Co............................... 8,000 146,447
-----------
3,076,997
ENERGY -- 0.05%
Mitsui Petrochemical Industries...... 5,000 25,904
FINANCIAL COMPANIES -- 1.29%
Mitsui Fudosan....................... 29,000 290,476
Nomura Securities Co. Ltd............ 18,000 270,443
Tokio Marine & Fire Insurance Co..... 6,000 56,472
-----------
617,391
TRANSPORTATION & STORAGE -- 0.40%
East Japan Railway................... 41 184,449
-----------
Total Japan........................ 9,958,542
MALAYSIA -- 3.24%
- ---------------------------------------
BASIC INDUSTRY -- 1.25%
Berjaya Sports Toto Berhad........... 34,000 169,630
Technology Resources Industries(a)... 29,000 57,185
Time Engineering..................... 23,000 42,621
United Engineers Berhad.............. 36,000 325,005
-----------
594,441
ENTERTAINMENT -- 0.47%
Resorts World Berhad................. 16,000 72,857
Tanjong.............................. 38,000 151,970
-----------
224,827
CAPITAL GOODS -- 0.36%
Renong Berhad........................ 97,000 172,069
FINANCIAL COMPANIES -- 1.16%
Affin Holdings Berhad................ 71,000 195,387
Commerce Asset Holdings.............. 13,000 97,802
MBF Capital Berhad................... 59,000 95,783
Multi-Purpose Holding................ 86,000 166,858
-----------
555,830
-----------
Total Malaysia..................... 1,547,167
MEXICO -- 0.43%
- ---------------------------------------
BASIC INDUSTRY -- 0.13%
Cemex SA............................. 12,063 43,443
Cemex SA -- Class B.................. 4,950 19,493
-----------
62,936
CONSUMER PRODUCTS -- 0.23%
Fomento Ecomomico Ser B.............. 4,629 15,877
Grupo Industrial Maseca SA De Cv --
Class B............................ 28,800 36,512
Grupo Modelo SA -- Class C........... 4,844 28,121
Kimberly-Clark Mexicano -- Class A... 1,532 30,262
-----------
110,772

</TABLE>

See notes to the financial statements.

71
<PAGE> 225

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
<S> <C> <C>

MEXICO (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
- -----------------------------------------------------------------
FINANCIAL COMPANIES -- 0.07%
Grupo Financiero Banamex -- Class
A.................................. 14,288 $ 30,166
Grupo Financiero Banamex -- Class
L.................................. 465 916
-----------
31,082
-----------
Total Mexico....................... 204,790
NETHERLANDS -- 10.20%
- ---------------------------------------
BASIC INDUSTRY -- 0.21%
Akzo Nobel NV........................ 238 32,533
Kon Pitt Nederland................... 1,407 53,705
Otra NV.............................. 670 11,526
-----------
97,764
CONSUMER PRODUCTS -- 6.27%
Ahold (Kon) NV....................... 3,249 203,239
CSM NV............................... 3,666 203,844
Elsevier NV.......................... 55,704 942,112
Hagemeyer NV......................... 780 62,391
Nutricia (Verenigde Bedrijven)....... 550 83,623
Polygram NV.......................... 5,187 264,382
Unilever NV.......................... 1,510 267,278
Wolters Kluwer NV.................... 7,290 969,044
-----------
2,995,913
ENERGY -- 2.10%
Royal Dutch Petroleum Co............. 5,710 1,001,772
FINANCIAL COMPANIES -- 1.62%
ABN AMRO Holdings NV................. 3,528 229,683
Fortis AMEV NV....................... 3,835 134,386
Internationale Nederlanden Groep
NV................................. 11,400 410,704
-----------
774,773
-----------
Total Netherlands.................. 4,870,222
NEW ZEALAND -- 0.61%
- ---------------------------------------
BASIC INDUSTRY -- 0.30%
Carter Holt Harvey................... 13,000 29,502
Fernz Corp........................... 5,000 17,144
Fletcher Challenge Building(a)....... 9,750 29,984
Fletcher Challenge Energy............ 1,750 5,072
Fletcher Challenge Forest Division... 32,993 55,280
Fletcher Challenge Paper(a).......... 3,500 7,200
-----------
144,182
TELECOMMUNICATIONS -- 0.26%
New Zealand Telecom.................. 24,000 122,503
TRANSPORTATION & STORAGE -- 0.05%
Air New Zealand -- Class B........... 8,909 24,186
-----------
Total New Zealand.................. 290,871
NORWAY -- 1.53%
- ---------------------------------------
CAPITAL GOODS -- 0.69%
Orkla AS............................. 4,780 330,136
ENERGY -- 0.81%
Norsk Hydro.......................... 6,890 368,930
Saga Petroleum -- Class B............ 1,190 18,469
-----------
387,399
</TABLE>

MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
<S> <C> <C>
NORWAY (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
- -----------------------------------------------------------------
TRANSPORTATION & STORAGE -- 0.03%
Bergesen D-Y AS...................... 650 $ 15,738
-----------
Total Norway....................... 733,273
PHILLIPPINES -- 0.17%
- ---------------------------------------
FINANCIAL -- 0.17%
Phillippine National Bank............ 6,900 81,987
PORTUGAL -- 0.43%
- ---------------------------------------
CONSUMER PRODUCTS -- 0.43%
Jeronimo Martins SGPS................ 2,000 103,154
Jeronimo Martins..................... 2,000 33,705
Jeronimo Martins..................... 1,333 68,752
-----------
Total Portugal..................... 205,611
SINGAPORE -- 2.21%
- ---------------------------------------
CAPITAL GOODS -- 0.13%
City Developments.................... 4,000 36,018
Far East-Levingston Shipbuilding..... 5,000 26,084
-----------
62,102
CONSUMER PRODUCTS -- 0.55%
Fraser & Neave Ltd................... 7,400 76,152
Singapore Press Holdings............. 9,400 185,407
-----------
261,559
FINANCIAL COMPANIES -- 1.43%
DBS Land............................. 15,000 55,206
Development Bank of Singapore........ 6,000 81,041
Overseas Union Bank.................. 26,000 200,672
Singapore Land....................... 21,000 116,308
United Industrial Corp............... 22,000 18,552
United Overseas Bank................. 19,000 211,820
-----------
683,599
TRANSPORTATION & STORAGE -- 0.10%
Keppel Corp.......................... 5,000 38,948
Singapore Airlines Ltd............... 1,000 9,076
-----------
48,024
-----------
Total Singapore.................... 1,055,284
SOUTH KOREA -- 0.67%
- ---------------------------------------
BASIC INDUSTRY -- 0.20%
Pohang Iron & Steel.................. 700 30,237
Samsung Electronics.................. 1,000 53,846
Yukong Ltd........................... 688 13,027
-----------
97,110
FINANCIAL COMPANIES -- 0.31%
Cho Hung Bank........................ 4,800 37,491
Hanil Bank........................... 2,900 19,905
Hanil Securities..................... 2,200 15,986
Kook Min Bank........................ 2,000 27,692
Samsung Fire & Marine Insurance...... 10 3,669
Seoul Bank........................... 1,100 5,533
Shin Han Bank........................ 2,840 38,651
-----------
148,927
</TABLE>
See notes to the financial statements.

72
<PAGE> 226

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
<S> <C> <C>

SOUTH KOREA (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
- -----------------------------------------------------------------
UTILITIES -- 0.16%
Korea Electric Power Corp............ 2,600 $ 75,692
-----------
Total South Korea.................. 321,729
SPAIN -- 2.58%
- ---------------------------------------
BASIC INDUSTRY -- 0.03%
Fomento de Construcciones y Contratas
SA................................. 144 13,421
CONSUMER PRODUCTS -- 0.09%
Centros Comerciales Pryca............ 1,524 32,282
Centros Commercial................... 610 12,498
-----------
44,780
ENERGY -- 0.40%
Repsol SA............................ 5,022 192,641
FINANCIAL COMPANIES -- 0.67%
Argentaria Corp...................... 1,205 53,927
Banco De Santander SA................ 2,024 129,555
Banco Popular Espanol................ 684 134,350
-----------
317,832
UTILITIES -- 1.39%
Aguas De Barcelona................... 408 16,971
Empresa Nacional De Elec (Endesa).... 3,785 269,389
Gas Natural Sdg SA................... 778 180,979
Iberdrola I SA....................... 10,268 145,528
Telefonica De Espana................. 2,160 50,163
-----------
663,030
-----------
Total Spain........................ 1,231,704
SWEDEN -- 2.66%
- ---------------------------------------
BASIC INDUSTRY -- 0.07%
Stora Kopparbergs Bergsl AB.......... 2,500 34,091
CAPITAL GOODS -- 0.54%
Atlas Copco AB -- Class B............ 4,770 116,104
Sandvik AB -- Class A................ 560 15,109
Sandvik AB -- Class B................ 4,290 116,373
Scribona AB.......................... 750 8,413
-----------
255,999
CONSUMER PRODUCTS -- 1.86%
Astra AB............................. 10,800 521,005
Electrolux Co. AB -- Class B......... 3,000 174,195
Esselte -- Class B................... 560 12,399
Hennes & Mauritz AB -- Class B....... 1,310 181,328
-----------
888,927
ELECTRICAL EQUIPMENT -- 0.19%
ABB AB............................... 830 93,711
-----------
Total Sweden....................... 1,272,728
SWITZERLAND -- 4.34%
- ---------------------------------------
BASIC INDUSTRY -- 0.72%
ABB AG............................... 277 344,569
BUSINESS SERVICES -- 0.38%
Adecco SA(a)......................... 723 181,493
CONSUMER PRODUCTS -- 2.82%
Nestle SA............................ 360 386,492
Novartis AG(a)....................... 433 495,139
Roche Holdings AG.................... 60 466,866
</TABLE>

MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
SWITZERLAND (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
- -----------------------------------------------------------------
FINANCIAL COMPANIES -- 0.42%
Credit Suisse Group.................. 610 $ 62,663
Schweizerischer Bankverein........... 720 136,900
-----------
199,563
-----------
Total Switzerland.................. 2,074,122
THAILAND -- 0.39%
- ---------------------------------------
BASIC INDUSTRY -- 0.02%
Siam Cement Public Co................ 300 9,405
CAPITAL GOODS -- 0.04%
Advanced Information Service PLC..... 2,540 21,195
FINANCIAL COMPANIES -- 0.30%
Bangkok Bank......................... 8,700 84,130
Siam Commercial Bank Public Co....... 4,080 29,591
Thai Farmers Bank Public............. 4,200 26,203
-----------
139,924
TELECOMMUNICATIONS -- 0.03%
Total Access Communications.......... 2,000 13,800
-----------
Total Thailand..................... 184,324
UNITED KINGDOM -- 16.61%
- ---------------------------------------
BASIC INDUSTRY -- 1.21%
Caradon PLC.......................... 42,000 172,691
Electrocomponents PLC................ 15,000 118,468
Heywood Williams Grp................. 3,000 12,232
Laing (John)......................... 7,000 33,339
RTZ Corp............................. 15,000 241,048
-----------
577,778
CAPITAL GOODS -- 0.65%
Rolls-Royce.......................... 7,000 30,821
Tomkins.............................. 61,000 282,166
-----------
312,987
CONSUMER GOODS -- 9.63%
ASDA Group........................... 84,000 177,009
Argos................................ 18,200 239,154
Cadbury Schweppes.................... 23,000 194,261
Coats Viyella........................ 12,000 27,548
Compass Group........................ 14,000 148,707
GKN PLC.............................. 2,000 34,298
Glaxo Wellcome....................... 24,000 390,612
Grand Metropolitan................... 38,000 298,167
Guiness.............................. 30,000 235,909
Hillsdown Holdings................... 11,000 37,691
Kingfisher........................... 33,000 356,176
Ladbroke Group....................... 16,000 63,594
Rank Group........................... 4,000 30,015
Rank Organisation.................... 21,000 157,581
Reed International................... 31,000 583,142
Safeway.............................. 31,000 214,031
</TABLE>

See notes to the financial statements.

73
<PAGE> 227

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
UNITED KINGDOM (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
- -----------------------------------------------------------------
Sears Holdings....................... 8,000 $ 12,883
Smith (David S)...................... 19,000 101,558
SmithKline Beecham................... 56,000 775,193
T&N PLC.............................. 21,000 62,601
Tesco PLC............................ 23,000 139,489
United Newspapers & Media............ 27,000 322,409
-----------
4,602,028
ENERGY -- 1.55%
British Gas.......................... 14,000 53,726
British Petroleum.................... 16,000 191,879
Shell Transport and Trading Co....... 28,500 494,124
-----------
739,729
FINANCIAL COMPANIES -- 2.59%
Abbey National....................... 36,000 471,201
National Westminster Bank............ 65,000 763,920
-----------
1,235,121
UTILITIES -- 0.98%
Cable & Wireless..................... 31,000 259,173
East Midland Electricity............. 5,000 56,707
London Electricity................... 12,857 149,892
-----------
465,772
-----------
Total United Kingdom............... 7,933,415
UNITED STATES -- 5.32%
- ---------------------------------------
BANKS -- 0.21%
Banco De Galicia Buenos Aires --
ADR................................ 1,581 38,339
Banco Frances Del Rio De La Plata --
ADR................................ 1,327 36,495
Banco Latinoamericano De
Exportaciones SA................... 477 24,208
-----------
99,042
BUILDING & CONSTRUCTION -- 0.20%
Cemex SA -- ADR...................... 13,410 96,248
CONFECTIONS & BEVERAGES -- 0.26%
Compania Cervecerias Unidas -- ADR... 530 8,546
Panamerican Beverages, Inc........... 2,420 113,437
-----------
121,983
DURABLE GOODS -- 0.39%
First Pacific Co..................... 111,315 144,640
Industrie Natuzzi -- ADR............. 1,810 41,630
-----------
186,270
ELECTRIC UTILITIES -- 0.73%
Cemig Cia Energetica Minas Gerais --
ADR................................ 2,595 88,405
Centrais Electricas Brasileiras --
ADR................................ 3,000 53,701
Cesp Cia Energetica De Sao Paolo --
ADR................................ 1,050 12,075
Chilgener SA -- ADR.................. 604 12,608
Empresa National Electric -- ADR..... 1,860 28,830
Enersis SA -- ADR.................... 1,180 32,745
Huaneng Power International, Inc. --
ADR(a)............................. 5,400 121,500
-----------
349,864
<CAPTION>

MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
UNITED STATES (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
- -----------------------------------------------------------------
ELECTRONICS -- 0.17%
Grupo Televisa GDR................... 531 13,607
Samsung Electronics Ltd.(144a)....... 1,650 68,269
-----------
81,876
FINANCIAL SERVICES -- 0.62%
AFP Provida -- ADR................... 178 $ 3,338
Brazil Fund, Inc..................... 870 19,358
Chile Fund, Inc...................... 1,320 27,555
Cifra SA De CV -- ADR................ 53,603 65,503
Guoco Group(a)....................... 32,000 179,145
Korea Fund, Inc...................... 213 3,195
-----------
298,094
METALS & MINING -- 0.26%
USINAS -- ADR........................ 12,080 123,229
OIL & GAS -- 0.22%
Enron Global Power & Pipeline
Partnership........................ 260 7,020
Chilectra SA -- ADR.................. 560 28,901
Repsol SA -- ADR..................... 130 4,956
Sociedad Comercial Del Plata(144a)... 500 12,802
Transportadora De Gas Del Sur --
ADR................................ 600 7,350
YPF Sociedad Anonima -- ADR.......... 1,696 42,824
-----------
103,853
REAL ESTATE -- 0.64%
Hong Kong Land Holdings.............. 109,908 305,544
RETAIL -- 0.04%
Gucci Group NV....................... 328 20,951
TELECOMMUNICATIONS -- 1.58%
Compania Anon Nacional Telefonos De
Vez -- ADR......................... 960 27,000
Compania De Telecomunicaciones Chile
-- ADR............................. 320 32,360
Telecom Argentina STET -- ADR........ 180 7,268
Telecomunicacoes Brasileiras Telebras
SA -- ADR.......................... 5,422 417,443
Telefonica De Argentina -- ADR....... 2,790 72,191
Telefonica De Mexico -- ADR.......... 5,615 185,295
Telefonica Del Peru -- ADR........... 591 11,155
-----------
752,712
-----------
Total United States.............. 2,539,666
-----------
Total Common Stock
(cost $39,621,098)............. 44,777,000
-----------
RIGHTS & WARRANTS -- 0.06%
- ---------------------------------------
BELGIUM -- 0.00%
- ---------------------------------------
BANK -- 0.00%
Generale De Banque(a)................ 26 15
FRANCE -- 0.00%
- ---------------------------------------
ENERGY -- 0.00%
Primagaz (Cie Des Gaz Petrole)
Warrants(a)........................ 15 373

</TABLE>

See notes to the financial statements.

74
<PAGE> 228

T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
RIGHTS & WARRANTS (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
- -----------------------------------------------------------------
ITALY -- 0.00%
- ---------------------------------------
BANKS -- 0.00%
Rinascente SPA Warrants(a)........... 150 $ 66
MALAYSIA -- 0.01%
- ---------------------------------------
FINANCIAL -- 0.01%
Multi Purpose Holdings Rights(a)..... 86,000 $ --
Renong Berhad Warrants(a)............ 5,125 2,516
-----------
2,516
PORTUGAL -- 0.03%
- ---------------------------------------
CONSUMER PRODUCTS -- 0.03%
Jeronimo Martins Bond Warrants(a).... 333 17,175
SINGAPORE -- 0.02%
- ---------------------------------------
FINANCIAL -- 0.02%
United Overseas Bank Warrants(a)..... 3,000 10,591
SPAIN -- 0.00%
- ---------------------------------------
UTILITIES -- 0.00%
Aguas De Barcelona(a)................ 5 208
THAILAND -- 0.00%
- ---------------------------------------
FINANCIAL -- 0.00%
Thai Farmers Bank Warrants(a)........ 525 415
-----------
Total Rights & Warrants
(cost $34,956)................... 31,359
-----------
PREFERRED STOCKS -- 1.80%
- ---------------------------------------
AUSTRALIA -- 0.06%
- ---------------------------------------
Sydney Harbour Casino................ 18,000 27,756
BRAZIL -- 1.43%
- ---------------------------------------
Banco Bradesco SA.................... 10,648,890 77,169
Banco Itau SA........................ 46,000 19,921
Brahma............................... 127,043 69,445
Brasmotor SA......................... 82,150 22,808
Cemig CIA Energy..................... 1,321,597 45,024
CIM Port Itau CIA.................... 73,000 25,640
Coteminas-CIA Tec.................... 55,000 17,552
Lojas Americanas..................... 815,665 10,754
Petrol Brasileiros................... 355,745 56,660
Telecomunicacoes Brasileiras SA...... 1,078,910 83,065
<CAPTION>

MARKET
SHARES VALUE
---------- -----------
<S> <C> <C>
PREFERRED STOCKS (CONTINUED)
- -----------------------------------------------------------------
BRAZIL (CONTINUED)
- -----------------------------------------------------------------
CONSUMER PRODUCTS (CONTINUED)
- -----------------------------------------------------------------
Telecommunicacoes de Rio de Janiero
SA................................. 148,000 $ 18,728
Telecommunicacoes De Minas Gerais --
Telemig............................ 158,000 19,539
Telesp -- Tel Sao Pau Pref........... 482,405 104,457
Unibanco Uniiao Banco................ 2,036,333 66,434
Usinas............................... 44,146,000 45,034
-----------
Total Brazil....................... 682,230
GERMANY -- 0.22%
- ---------------------------------------
Fielmann AG.......................... 336 10,481
Hornbach Holdings AG................. 510 36,457
Krones AG............................ 70 25,383
Sap AG............................... 257 35,908
-----------
Total Germany...................... 108,229
UNITED STATES -- 0.09%
- ---------------------------------------
Uniao Sid Minas -- ADS............... 4,150 41,915
-----------
Total Preferred Stocks
(cost $878,721).................. 860,130
-----------
PRINCIPAL
AMOUNT
----------
BONDS -- 0.01%
- ---------------------------------------
CAPITAL GOODS -- 0.01%
Renong Berhad...................... $ 8,200 3,442
-----------
Total Bonds
(cost $3,288).................... 3,442
-----------
SHORT TERM INVESTMENTS -- 4.40%
- ---------------------------------------
MONEY MARKET FUNDS -- 4.40%
State Street Global Advisor Fund,
5.38%,(b) (cost $2,098,660)...... 2,098,660 2,098,660
-----------
TOTAL INVESTMENTS -- 100%
- ---------------------------------------
(cost $42,636,723)................. $47,770,591
===========

</TABLE>

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

(a) Non-income producing.

(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1996.

See notes to the financial statements.

75
<PAGE> 229

T. ROWE PRICE/JNL MID-CAP GROWTH SERIES

SCHEDULE OF INVESTMENTS
DECEMBER 31, 1996

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS -- 89.36%
- -----------------------------------------
SOUTH AFRICA -- 0.14%
- -----------------------------------------
MINING -- 0.14%
Rustenburg Platinum Holdings........... 5,029 $ 68,795
UNITED STATES -- 89.22%
- -----------------------------------------
AEROSPACE & AIRCRAFT -- 2.82%
BE Aerospace, Inc., (a)................ 18,500 501,813
OEA, Inc. ............................. 18,500 846,375
-----------
1,348,188
APPAREL -- 2.40%
Tommy Hilfiger Corp.(a)................ 4,500 216,000
Warnaco Group, Inc. ................... 31,500 933,188
-----------
1,149,188
BROADCAST & COMMUNICATIONS -- 3.62%
Aerial Communications, Inc., (a)....... 34,700 281,937
Catalina Marketing Corp.(a)............ 7,000 385,875
Comcast Corp. ......................... 30,000 534,375
Cox Communications -- Class A(a)....... 23,000 531,875
-----------
1,734,062
BUSINESS SERVICES -- 4.40%
ADVO, Inc. ............................ 10,000 140,000
CUC International, Inc................. 16,000 380,000
Gymboree Corp., (a).................... 23,000 526,125
Interim Services, Inc., (a)............ 20,100 713,550
National Data Corp. ................... 8,000 348,000
-----------
2,107,675
CHEMICALS -- 1.13%
Airgas, Inc. (a)....................... 5,900 129,800
Great Lakes Chemical Corp. ............ 7,000 327,250
Petrolite Corp. ....................... 1,800 86,400
-----------
543,450
COMPUTERS & SOFTWARE -- 8.84%
Adobe Systems, Inc. ................... 5,800 216,775
BDM International, Inc. ............... 7,000 379,750
BMC Software, Inc. (a)................. 11,000 455,125
Ceridian Corp. ........................ 6,000 243,000
Checkfree Corp., (a)................... 14,000 239,750
DST Systems, Inc., (a)................. 5,400 169,425
Fore Systems, Inc., (a)................ 7,000 230,125
Intuit, Inc. (a)....................... 9,000 283,500
Network General Group, (a)............. 12,000 363,000
Platinum Technology, Inc. (a).......... 21,000 286,125
Shiva Corp.(a)......................... 8,000 279,000
Sterling Communications, Inc. ......... 7,000 246,750
SunGuard Data Systems.................. 13,000 513,500
Synopsys, Inc.(a)...................... 7,000 323,750
-----------
4,229,575
CONSUMER PRODUCTS -- 1.93%
American Pad & Paper Co.(a)............ 31,000 701,375
Polymer Group, Inc., (a)............... 16,000 222,000
-----------
923,375

<CAPTION>
MARKET
SHARES VALUE
------ ------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
UNITED STATES (CONTINUED)
- -----------------------------------------
DRUGS -- 2.59%
Biogen, Inc. .......................... 14,000 $ 542,500
Cardinal Health, Inc. ................. 12,000 699,000
-----------
1,241,500
DURABLE GOODS -- 3.80%
Alco Standard Corp. ................... 19,000 980,875
Danaher Corp. ......................... 18,000 839,250
-----------
1,820,125
ELECTRONICS -- 5.72%
ADT, Ltd............................... 38,000 869,250
Analog Devices, Inc., (a).............. 12,000 406,500
Dentsply International, Inc. .......... 2,100 99,750
Maxim Integrated Products, Inc. (a).... 12,000 519,000
Teleflex, Inc. ........................ 9,500 495,187
Xilinx, Inc.(a)........................ 9,500 349,719
-----------
2,739,406
ENVIRONMENT -- 1.36%
Philip Environmental, Inc. (a)......... 45,000 652,500
FINANCE COMPANIES -- 5.61%
Corporate Express, Inc., (a)........... 28,000 824,250
Franklin Resources, Inc. .............. 8,000 547,000
Mercury Finance Co..................... 62,000 759,500
Money Store, Inc. ..................... 20,100 555,262
-----------
2,686,012
HEALTH PRODUCTS & CARE -- 7.16%
Apria Healthcare Group, Inc. (a)....... 21,500 403,125
General Nutrition Cos., Inc., (a)...... 41,000 691,875
Gilead Sciences, Inc., (a)............. 12,000 300,000
Pacificare Health Systems, Inc. --
Class B(a)........................... 6,000 511,500
Quorum Health Group, Inc. (a).......... 30,000 892,500
Sybron International Corp.(a).......... 19,000 627,000
-----------
3,426,000
HOTEL & MOTEL -- 2.52%
Hospitality Franchise Systems, Inc. ... 9,000 537,750
La Quinta Inns, Inc. .................. 35,000 669,375
-----------
1,207,125
INSURANCE -- 4.86%
Ace Limited............................ 16,000 962,000
Partner Re Limited..................... 19,000 646,000
PMI Group, Inc. ....................... 13,000 719,875
-----------
2,327,875
MERCHANDISING -- 1.34%
Tupperware Corp. ...................... 12,000 643,500
MINING -- 3.28%
Cambior, Inc. ......................... 30,000 438,750
Oxford Res Corp -- Class A, (a)........ 21,000 648,375
TVX Gold, Inc. (a)..................... 62,300 482,825
-----------
1,569,950

</TABLE>

See notes to the financial statements.

76
<PAGE> 230

T. ROWE PRICE/JNL MID-CAP GROWTH SERIES

SCHEDULE OF INVESTMENTS -- (CONTINUED)

<TABLE>
<CAPTION>
MARKET
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------
UNITED STATES (CONTINUED)
- -----------------------------------------
OIL & GAS -- 6.08%
Camco International, Inc............... 17,000 $ 784,125
Cooper Cameron Corp.................... 9,000 688,500
Smith International, Inc.(a)........... 18,000 807,750
Weatherford Enterra, Inc............... 21,000 630,000
-----------
2,910,375
RESTAURANTS -- 4.30%
Boston Chicken, Inc.(a)................ 17,000 609,875
JP Foodservice, Inc.(a)................ 30,000 836,250
Outback Steakhouse, Inc.(a)............ 23,000 615,250
-----------
2,061,375
RETAIL -- 7.21%
Circuit City Stores, Inc. ............. 19,000 572,375
Eckerd Corp., (a)...................... 3,555 113,760
Kohls Corp.(a)......................... 13,000 510,250
MSC Industrial Direct, Inc............. 12,000 444,000
Price/Costco, Inc.(a).................. 29,000 728,625
Revco DS, Inc.(a)...................... 18,400 680,800
Scholastic Corp., (a).................. 6,000 403,500
-----------
3,453,310
STEEL -- 1.55%
Trimas Corp.(a)........................ 31,000 740,125
TELECOMMUNICATIONS -- 3.04%
Palmer Wireless, Inc. Class A(a)....... 21,800 228,900
Telephone & Data Systems, Inc. ........ 6,900 250,125
360 Communications Co. ................ 20,900 483,312
US Cellular Corp.(a)................... 7,000 195,125
Vanguard Cellular Systems -- Class
A(a)................................. 19,000 299,250
-----------
1,456,712
TOBACCO -- 1.15%
Consolidated Cigar Holdings, Inc.(a)... 22,200 549,450
WASTE DISPOSAL -- 2.51%
Republic Industries, Inc., (a)......... 14,000 436,625
USA Waste Services, Inc.(a)............ 24,000 765,000
-----------
1,201,625
-----------
Total United States.................. 42,722,478
-----------
Total Common Stock
(cost $37,680,609)............... 42,791,273
-----------

<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
--------- -----------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 10.64%
- -----------------------------------------
U.S. TREASURY BILLS -- 9.75%
U.S. Treasury Bill
4.85%, 01/02/1997.................... $221,000 $ 220,970
5.00%, 01/09/1997.................... 488,000 487,458
4.98%, 01/23/1997.................... 133,000 132,595
5.01%, 01/30/1997.................... 375,000 373,486
4.84%, 02/06/1997.................... 331,000 329,398
5.015%, 02/06/1997................... 465,000 462,668
5.06%, 02/06/1997.................... 293,000 291,517
5.02%, 02/13/1997.................... 165,000 164,011
5.045%, 02/13/1997................... 185,000 183,885
4.82%, 03/06/1997.................... 240,000 237,922
4.835%, 03/06/1997................... 56,000 55,515
4.90%, 03/06/1997.................... 365,000 361,820
4.91%, 03/06/1997.................... 255,000 252,792
4.885%, 03/13/1997................... 327,000 323,850
4.86%, 03/20/1997.................... 448,000 443,381
5.02%, 05/01/1997.................... 351,000 345,152
-----------
4,666,420
U.S. GOVERNMENTAL AGENCIES -- 0.89%
Federal Home Loan Mortgage Notes
5.50%, 01/09/1997.................... 185,000 184,774
5.51%, 01/14/1997.................... 241,000 240,520
-----------
425,294
MONEY MARKET FUNDS -- 0.00%
State Street Global Advisor Fund,
5.38%,(b)............................ 633 633
-----------
Total Short Term Investments
(cost $5,092,232)................ 5,092,347
-----------
TOTAL INVESTMENTS -- 100%
- -----------------------------------------
(cost $42,772,841)..................... $47,883,620
===========
</TABLE>

- -------------------------
(a) Non-income producing.

(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1996.

See notes to the financial statements.

77
<PAGE> 231

JNL SERIES TRUST

PART C
OTHER INFORMATION

Note: Items 24-32 have been answered with respect to all investment portfolios
(Series) of the Registrant.

Item 24. Financial Statements and Exhibits.

(a) Financial Statements

(i) Financial statements included in Part A of the
Registration Statement: Financial Highlights

(ii) Financial statements included in Part B of the
Registration Statement:

Statements of Assets and Liabilities at
June 30, 1997

Statements of Operations for Six Months Ended
June 30, 1997

Statements of Changes in Net Assets for the
Six Months Ended June 30, 1997

Financial Highlights for the Six Months Ended
June 30, 1997

Notes to Financial Statements

Schedules of Investments at June 30, 1997

Report of Independent Accountants

Statements of Assets and Liabilities at
December 31, 1996

Statements of Operations for Nine Months Ended
December 31, 1996

Statements of Changes in Net Assets for the
Periods May 15, 1995 through March 31, 1996 and
April 1, 1996 to December 31, 1996

Financial Highlights for the Periods May 15,
1995 through March 31, 1996 and April 1, 1996 to
December 31, 1996

Notes to Financial Statements

Schedules of Investments at December 31, 1996

<PAGE> 232

(b) Exhibits

Exhibit
Number Description
- ------- -----------

1. Agreement and Declaration of Trust of Registrant dated June 1, 1994,
incorporated by reference to Registrant's Post-Effective Amendment No. 5 filed
with the Securities and Exchange Commission on June 28, 1996.

2. Amended and Restated By-laws of Registrant, incorporated by reference to
Registrant's Post-Effective Amendment No. 7 filed with the Securities and
Exchange Commission on September 13, 1996.

3. Not Applicable

4. Not Applicable

5. (a) Amended Investment Advisory and Management Agreement between
Registrant and Jackson National Financial Services, Inc. dated
August 17, 1995, incorporated by reference to Registrant's Post-
Effective Amendment No. 5 filed with the Securities and Exchange
Commission on June 28, 1996.

(b) Investment Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Fred Alger Management, Inc. dated
August 16, 1995, incorporated by reference to Registrant's
Post-Effective Amendment No. 5 filed with the Securities and
Exchange Commission on June 28, 1996.

(c) Investment Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Janus Capital Corporation dated
February 28, 1995, incorporated by reference to Registrant's
Post-Effective Amendment No. 5 filed with the Securities and
Exchange Commission on June 28, 1996.

(d) Investment Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and PPM America, Inc. dated February 17,
1995, incorporated by reference to Registrant's Post-Effective
Amendment No. 5 filed with the Securities and Exchange Commission on
June 28, 1996.

(e) Investment Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Rowe Price-Fleming International, Inc.
dated February 20, 1995, incorporated by reference to Registrant's
Post-Effective Amendment No. 5 filed with the Securities and
Exchange Commission on June 28, 1996.

(f) Investment Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Salomon Brothers Asset Management Inc
dated February 8, 1995, incorporated by reference to Registrant's

<PAGE> 233

Post-Effective Amendment No. 5 filed with the Securities and
Exchange Commission on June 28, 1996.

(g) Investment Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and T. Rowe Price Associates, Inc. dated
February 20, 1995, incorporated by reference to Registrant's
Post-Effective Amendment No. 5 filed with the Securities and
Exchange Commission on June 28, 1996.

(h) Investment Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Salomon Brothers Asset Management
Limited, incorporated by reference to Registrant's Post-Effective
Amendment No. 5 filed with the Securities and Exchange Commission on
June 28, 1996.

(i) Amendment dated August 7, 1996 to Amended Investment Advisory
and Management Agreement between Registrant and Jackson National
Financial Services, Inc. dated August 17, 1995, incorporated by
reference to Registrant's Post-Effective Amendment No. 7 filed with
the Securities and Exchange Commission on September 13, 1996.

(j) Investment Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Eagle Asset Management, Inc. dated
August 9, 1996, incorporated by reference to Registrant's
Post-Effective Amendment No. 7 filed with the Securities and
Exchange Commission on September 13, 1996.

(k) Amendment dated August 21, 1996 to Investment Sub-Advisory
Agreement between Jackson National Financial Services, Inc. and
Janus Capital Corporation dated February 28, 1995, incorporated by
reference to Registrant's Post-Effective Amendment No. 7 filed with
the Securities and Exchange Commission on September 13, 1996.

(l) Amendment dated April 18, 1997 to Amended Investment Advisory
and Management Agreement between Registrant and Jackson National
Financial Services, Inc. dated August 17, 1995, attached hereto.

(m) Amendment dated April 18, 1997 to Investment Sub-Advisory
Agreement between Jackson National Financial Services, Inc. and PPM
America, Inc. dated February 17, 1995, attached hereto.

(n) Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Putnam Investment Management, Inc. dated April
22, 1997, attached hereto.

(o) Form of Amendment to Amended Investment Advisory and
Management Agreement between Registrant and Jackson National
Financial Services, Inc. dated August 17, 1995, attached hereto.

(p) Form of Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Alliance Capital Management L.P.,
attached hereto.

<PAGE> 234

(q) Form of Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Goldman Sachs Asset Management,
attached hereto.

(r) Form of Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and J.P. Morgan Investment Management Inc.,
attached hereto.

(s) Form of Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Lazard Asset Management, attached
hereto.

(t) Form of Sub-Advisory Agreement between Jackson National
Financial Services, Inc. and Pacific Investment Management Company,
attached hereto.

(u) Form of Amendment to Investment Sub-Advisory Agreement
between Jackson National Financial Services, Inc. and Salomon
Brothers Asset Management Inc dated February 8, 1995, attached
hereto.

6. (a) Amended Fund Participation Agreement between Registrant, Jackson
National Life Insurance Company and Jackson National Separate
Account I dated September 19, 1995, incorporated by reference to
Registrant's Post-Effective Amendment No. 5 filed with the Securi-
ties and Exchange Commission on June 28, 1996.

(b) Amendment dated August 7, 1996 to Amended Fund Participation
Agreement between JNL Series Trust, Jackson National Life Insurance
Company and Jackson National Separate Account I dated September 19,
1995, incorporated by reference to Registrant's Post-Effective
Amendment No. 7 filed with the Securities and Exchange Commission on
September 13, 1996.

(c) Amendment dated April 18, 1997 to Amended Fund Participation
Agreement between JNL Series Trust, Jackson National Life Insurance
Company and Jackson National Separate Account I dated September 19,
1995, attached hereto.

(d) Form of Fund Participation Agreement between Registrant,
Jackson National Life Insurance Company and Jackson National
Separate Account III, attached hereto.

7. Not Applicable

8. Custodian Contract between Registrant and State Street Bank and Trust
Company dated September 16, 1996, incorporated by reference to Registrant's
Post-Effective Amendment No. 10 filed with the Securities and Exchange
Commission on April 15, 1997.

9. Transfer Agency and Service Agreement between Registrant State Street Bank
and Trust Company dated September 16, 1996, incorporated by reference to
Registrant's Post-Effective Amendment No. 10 filed with the Securities and
Exchange Commission on April 15, 1997.

10. Opinion of Blazzard, Grodd & Hasenauer, PC, attached hereto.

<PAGE> 235

11. Consent of Price Waterhouse LLP, attached hereto.

12. Not Applicable

13. Not Applicable

14. Not Applicable

15. Not Applicable

16. Computation of Performance Quotations, incorporated by reference to
Registrant's Post-Effective Amendment No. 5 filed with the Securities and
Exchange Commission on June 28, 1996.

17. Financial Data Schedule, attached hereto.

18. Not Applicable

Item 25. Persons controlled by or under Common Control with Registrant.

Not Applicable.

Item 26. Number of Holders of Securities.

<TABLE>
<CAPTION>
NUMBER OF
HOLDERS AS OF
SERIES OCTOBER 3, 1997
----------------------------------------------------------------- ------------------
<S> <C>
JNL Aggressive Growth Series 3
JNL Capital Growth Series 3
JNL Global Equities Series 3
JNL/Alger Growth Series 3
JNL/Alliance Growth Series 0
JNL/Eagle Core Equity Series 2
JNL/Eagle SmallCap Equity Series 2
JNL/JPM International & Emerging Markets Series 0
JNL/PIMCO Total Return Bond Series 0
JNL/Putnam Growth Series 2
JNL/Putnam Value Equity Series 2
Goldman Sachs/JNL Growth & Income Series 0
Lazard/JNL Small Cap Value Series 0
Lazard/JNL Mid Cap Value Series 0
PPM America/JNL Balanced Series 2
PPM America/JNL High Yield Bond Series 3
PPM America/JNL Money Market Series 3
Salomon Brothers/JNL Balanced Series 0
Salomon Brothers/JNL Global Bond Series 3
Salomon Brothers/JNL High Yield Bond Series 0
Salomon Brothers/JNL U.S. Government & Quality Bond Series 3
T. Rowe Price/JNL Established Growth Series 3
T. Rowe Price/JNL International Equity Investment Series 3
T. Rowe Price/JNL Mid-Cap Growth Series 3

</TABLE>

<PAGE> 236

Item 27. 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 28. 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

<PAGE> 237

Services, Inc. ("JNFSI") contained in the sections entitled
"Management of the Trust" and "Investment Adviser and Other
Services" and the biographical information pertaining to Messrs.
Hopping, Meyer, Fritts and Nerud and Ms. Eisenbeis, contained in
the section entitled "Trustees and Officers of the Trust" of the
Statement of Additional Information.

Alliance Capital Management L.P., Eagle Asset Management, Inc.,
Fred Alger Management, Inc., Goldman Sachs Asset Management, Janus
Capital Corporation, J.P. Morgan Investment Management Inc., Lazard
Asset Management, Pacific Investment Management Company, PPM
America, Inc., Putnam Investment Management, Inc., Salomon Brothers
Asset Management Inc, Salomon Brothers Asset Management Limited, T.
Rowe Price Associates, Inc., and Rowe Price-Fleming International,
Inc., the sub-advisers of certain series of the Trust, are
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-advisers and other required information:

File No.
--------------
Alliance Capital Management L.P.
Eagle Asset Management, Inc. 801-21343
Fred Alger Management, Inc. 801-06709
Goldman Sachs Asset Management 801-16048
Janus Capital Corporation 801-13991
J.P. Morgan Investment Management Inc. 801-21011
Lazard Asset Management
Pacific Investment Management Company
PPM America, Inc. 801-40783
Putnam Investment Management, Inc. 801-7974
Salomon Brothers Asset Management Inc 801-32046
T. Rowe Price Associates, Inc. 801-856
Rowe Price-Fleming International, Inc. 801-14713
Salomon Brothers Asset Management Limited 801-43335

Item 29. Principal Underwriters.

Not Applicable.

Item 30. Location of Accounts and Records

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 5901 Executive
Drive, Lansing, Michigan 48911; 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 State Street Bank and
Trust Company, 1776 Heritage Drive, North Quincy, Massachusetts
02171.

<PAGE> 238

Item 31. Management Services.

Not Applicable.

Item 32. Undertakings.

(a) Not Applicable.

(b) Registrant hereby undertakes to file an amendment to the
Registration Statement, using unaudited financial statements,
within four to six months of the effective date of this
Post-Effective Amendment.

(c) Registrant hereby 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> 239

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940 the Registrant has duly caused this
Post-Effective Amendment to be signed on its behalf by the undersigned,
thereto duly authorized, in the City of Lansing and the State of Michigan on
the 16th day of October, 1997.

JNL SERIES TRUST

By: /s/ Andrew B. Hopping
---------------------
by Thomas J. Meyer
Andrew B. Hopping
President, CEO and
Trustee

Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment has been signed below by the following persons in the
capacities and on the date indicated.

/s/ Andrew B. Hopping President, CEO and October 16, 1997
by Thomas J. Meyer Trustee ----------------
- ------------------------
Andrew B. Hopping

/s/ Robert A. Fritts Vice President, October 16, 1997
by Thomas J. Meyer Treasurer, CFO and Trustee ----------------
- ------------------------
Robert A. Fritts

/s/ Joseph Frauenheim Trustee October 16, 1997
by Thomas J. Meyer ----------------
- ------------------------
Joseph Frauenheim

/s/ Richard McLellan Trustee October 16, 1997
by Thomas J. Meyer ----------------
- ------------------------
Richard McLellan

/s/ Peter McPherson Trustee October 16, 1997
by Thomas J. Meyer ----------------
- ------------------------
Peter McPherson

<PAGE> 240

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned as directors of
JNL 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 Series Trust, hereby
constitute and appoint Andrew B. Hopping, Thomas J. Meyer and Robert P.
Saltzman, his attorney, with full power of substitution and resubstitution, for
and in his 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 instrument
may be executed in one or more counterparts.

IN WITNESS WHEREOF, the undersigned have herewith set their names as of the
dates set forth below.

/s/ Andrew B. Hopping September 12, 1997
- --------------------- ------------------
Andrew B. Hopping Date

/s/ Robert A. Fritts September 12, 1997
- --------------------- ------------------
Robert A. Fritts Date

/s/ Joseph Frauenheim September 15, 1997
- --------------------- ------------------
Joseph Frauenheim Date

/s/ Richard McLellan September 15, 1997
- --------------------- ------------------
Richard McLellan Date

/s/ Peter McPherson September 15, 1997
- --------------------- ------------------
Peter McPherson Date

<PAGE> 241
EXHIBIT LIST

Exhibit
Number Description
- ------- -----------

5.(l) Amendment dated April 18, 1997 to Amended Investment Advisory and
Management Agreement between Registrant and Jackson National Financial
Services, Inc. dated August 17, 1995, attached hereto as EX-99.B5-l

5.(m) Amendment dated April 18, 1997 to Investment Sub-Advisory Agreement
between Jackson National Financial Services, Inc. and PPM America, Inc. dated
February 17, 1995, attached hereto as EX-99.B5-m

5.(n) Sub-Advisory Agreement between Jackson National Financial Services,
Inc. and Putnam Investment Management, Inc. dated April 22, 1997, attached
hereto as EX-99.B5-n

5.(o) Form of Amendment to Amended Investment Advisory and Management
Agreement between Registrant and Jackson National Financial Services, Inc.
dated August 17, 1995, attached hereto as EX-99.B5-o

5.(p) Form of Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Alliance Capital Management L.P., attached hereto as
EX-99.B5-p

5.(q) Form of Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Goldman Sachs Asset Management, attached hereto as
EX-99.B5-q

5.(r) Form of Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and J.P. Morgan Investment Management Inc., attached hereto as
EX-99.B5-r

5.(s) Form of Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Lazard Asset Management, attached hereto as EX-99.B5-s

5.(t) Form of Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Pacific Investment Management Company, attached hereto as
EX-99.B5-t

5.(u) Form of Amendment to Investment Sub-Advisory Agreement between
Jackson National Financial Services, Inc. and Salomon Brothers Asset Management
Inc, attached hereto as EX-99.B5-u

6.(c) Amendment dated April 18, 1997 to Amended Fund Participation
Agreement between JNL Series Trust, Jackson National Life Insurance Company and
Jackson National Separate Account I dated September 19, 1995, attached hereto as
EX-99.B6-c

6.(d) Form of Fund Participation Agreement between Registrant, Jackson
National Life Insurance Company and Jackson National Separate Account - III,
attached hereto as EX-99.B6-d

<PAGE> 242

6.(e) Form of Fund Participation Agreement between Registrant, Jackson
National Life Insurance Company of New York and JNLNY Separate Account I,
attached hereto as EX-99.B6-e

10. Opinion of Blazzard, Grodd & Hasenauer, PC, attached hereto as
EX-99.B10

11. Consent of Price Waterhouse LLP, attached hereto as EX-99.B11

17. Financial Data Schedule, attached hereto as EX-27

<PAGE> 1
EX-99.B5-l

AMENDMENT
TO
AMENDED INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT
BETWEEN
JNL SERIES TRUST
AND
JACKSON NATIONAL FINANCIAL SERVICES, INC.

This AMENDMENT is by and between JNL Series Trust, a Massachusetts
business trust (the "Trust") and Jackson National Financial Services, Inc., a
Delaware corporation (the "Adviser").

WHEREAS, the Trust and the Adviser entered into an Amended Investment
Advisory and Management Agreement dated August 17, 1995 (the "Agreement"),
whereby the Trust retained the Adviser to perform investment advisory and
management services for the Series of the Trust enumerated in the Agreement;
and

WHEREAS, the names of three existing Series of the Trust will be changed
effective May 1, 1997, and the Trust desires the Adviser to continue performing
investment advisory and management services for these Series of the Trust; and

WHEREAS, the Adviser agrees to continue serving as the investment adviser
and business manager for the above-referenced Series of the Trust on the terms
and conditions set forth in the Agreement.

NOW THEREFORE, in consideration of the mutual covenants contained herein
and for other good and valuable consideration, the Trust and the Adviser agree
as follows:

1. Effective May 1, 1997, the Adviser shall continue serving as the
investment adviser and business manager for the JNL/Phoenix Investment Counsel
Balanced Series, JNL/Phoenix Investment Counsel Growth Series and PPM
America/JNL Value Equity Series at which date the names of these Series shall
be changed to the PPM America/JNL Balanced Series, JNL/Putnam Growth Series and
JNL/Putnam Value Equity Series, respectively.

2. As compensation for services performed and the facilities and
personnel provided by the Adviser under the Agreement, the Trust will pay to
the Adviser, promptly after the end of each month for the services rendered by
the Adviser during the preceding month, the sum of the following amounts:

1
<PAGE> 2

<TABLE>
<CAPTION>
$0 to $50 to Over
(*M - Million) $50 M $150 M $150 to $300 M $300 to $500 M $500 M
----- ------ -------------- -------------- ------
<S> <C> <C> <C> <C> <C>
JNL/Putnam Growth Series .90% .90% .85% .80% .80%
JNL/Putnam Value Equity Series .90% .90% .85% .80% .80%
PPM America/JNL Balanced
Series .75% .70% .675% .65% .625%
</TABLE>

3. The Trust and the Adviser agree to abide and be bound by all of the
terms and conditions set forth in the Agreement.

IN WITNESS WHEREOF, the Trust and the Adviser have caused this Agreement
to be executed by their duly authorized officers as of the 18th day of April,
1997.

JNL SERIES TRUST

By: /s/ John A. Knutson
-----------------------------

Name: John A. Knutson
---------------------------

Title: President
--------------------------

JACKSON NATIONAL FINANCIAL
SERVICES, INC.

By: /s/ Larry C. Jordan
-----------------------------

Name: Larry C. Jordan
---------------------------

Title: Chief Operating Officer
and Treasurer
---------------------------

<PAGE> 1
EX-99.B5-m

AMENDMENT
TO
INVESTMENT SUB-ADVISORY AGREEMENT
BETWEEN
JACKSON NATIONAL FINANCIAL SERVICES, INC.
AND
PPM AMERICA, INC.

AMENDMENT effective as of May 1, 1997, by and between JACKSON NATIONAL
FINANCIAL SERVICES, INC., a Delaware corporation and registered investment
adviser ("Adviser"), and PPM AMERICA, INC., a Delaware corporation and
registered investment adviser ("Sub-Adviser").

WHEREAS, Adviser and Sub-Adviser entered into an Investment Sub-Advisory
Agreement executed as of February 17, 1995 ("Agreement"), whereby Adviser
appointed Sub-Adviser to provide certain sub-investment advisory services to
the investment portfolios of the JNL Series Trust; and

WHEREAS, the Agreement provides that the Adviser will pay the Sub-Adviser
for the services provided and the expenses assumed pursuant to the Agreement a
sub-advisory fee as set forth on Schedule B to the Agreement and the
Sub-Adviser agrees to accept such sub-advisory fee as full compensation for
such services and expenses; and

WHEREAS, effective May 1, 1997, the Adviser desires to appoint Sub-Adviser
to provide and Sub-Adviser agrees to provide sub-investment advisory services
to an additional investment portfolio of the JNL Series Trust and to terminate
the Sub-Adviser's services with respect to an existing investment portfolio of
the JNL Series Trust.

NOW THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereby agree to amend the Agreement as follows:

1. Schedule A to the Agreement shall be amended and replaced with
Schedule A dated May 1, 1997, attached hereto.

2. Schedule B to the Agreement shall be amended and replaced with
Schedule B dated May 1, 1997, attached hereto.

<PAGE> 2

IN WITNESS WHEREOF, the Adviser and the Sub-Adviser have caused this
Amendment to be executed as of this 18th day of April, 1997.

JACKSON NATIONAL FINANCIAL PPM AMERICA, INC.
SERVICES, INC.

By: /s/ John A. Knutson By: /s/ Mark Mandich
-------------------------- ---------------------------

Name: John A. Knutson Name: Mark Mandich
------------------------ ------------------------

Title: President Title: Sr. Vice President
----------------------- -------------------------

<PAGE> 3

SCHEDULE A
DATED MAY 1, 1997
TO
INVESTMENT SUB-ADVISORY AGREEMENT
BETWEEN
JACKSON NATIONAL FINANCIAL SERVICES, INC.
AND
PPM AMERICA, INC.

PPM America/JNL Balanced Series
PPM America/JNL High Yield Bond Series
PPM America/JNL Money Market Series

<PAGE> 4

SCHEDULE B
DATED MAY 1, 1997
TO
INVESTMENT SUB-ADVISORY AGREEMENT
BETWEEN
JACKSON NATIONAL FINANCIAL SERVICES, INC.
AND
PPM AMERICA, INC.

PPM America/JNL Balanced Series

Average Daily Net Assets Annual Rate
------------------------ -----------

$0 to $50 Million .25%
$50 Million to $150 Million .20%
$150 Million to $300 Million .175%
$300 Million to $500 Million .15%
Amounts over $500 Million .125%

PPM America/JNL High Yield Bond Series

Average Daily Net Assets Annual Rate
------------------------ -----------

$0 to $50 Million .25%
$50 Million to $150 Million .20%
$150 Million to $300 Million .175%
$300 Million to $500 Million .15%
Amounts over $500 Million .125%

PPM America/JNL Money Market Series

Average Daily Net Assets Annual Rate
------------------------ -----------

$0 to $50 Million .20%
$50 Million to $150 Million .15%
$150 Million to $300 Million .125%
$300 Million to $500 Million .10%
Amounts over $500 Million .075%

<PAGE> 1
EX-99.B5-n

SUB-ADVISORY AGREEMENT

JNL SERIES TRUST

APRIL 22, 1997

Jackson National Financial Services, Inc. (the "Adviser") confirms its
agreement with Putnam Investment Management, Inc. (the "Sub-Adviser") with
respect to the JNL/Putnam Growth Series and JNL/Putnam Value Equity Series
(each a "Portfolio") of the JNL Series Trust (the "Fund") as follows:

1. INVESTMENT DESCRIPTION; APPOINTMENT

The Fund employs the Adviser as the manager of the Portfolios pursuant to
an Amended Investment Advisory and Management Agreement dated August 17, 1995,
as amended (the "Management Agreement"), and the Fund and the Adviser desire to
employ and hereby appoint the Sub-Adviser to act as the sub-investment adviser
to the Portfolios. The investment objective(s), policies and limitations
governing each Portfolio are specified in the prospectus (the "Prospectus") and
the statement of additional information (the "Statement") of the Fund filed
with the Securities and Exchange Commission as part of the Fund's Registration
Statement on Form N-1A, as amended or supplemented from time to time, and in
the manner and to the extent as may from time to time be approved by the Board
of Trustees of the Fund (the "Board"). Copies of the Prospectus and the
Statement have been or will be submitted to the Sub-Adviser. The Adviser agrees
promptly to provide copies of all amendments and supplements to the current
Prospectus and the Statement to the Sub-Adviser on an on-going basis. Until
the Adviser delivers any such amendment or supplement to the Sub-Adviser, the
Sub-Adviser shall be fully protected in relying on the Prospectus and Statement
of Additional Information as previously furnished to the Sub-Adviser. The
Sub-Adviser accepts the appointment and agrees to furnish the services for the
compensation, as set forth below.

2. SERVICES AS SUB-ADVISER

(a) Subject to the supervision, direction and approval of the Board and
the Adviser, the Sub-Adviser shall conduct a continual program of investment,
evaluation and, if appropriate in the view of the Sub-Adviser, sale and
reinvestment of each Portfolio's assets. The Sub-Adviser is authorized, in its
sole discretion and without prior consultation with the Adviser, to: (i) manage
each Portfolio's assets in accordance with the Portfolio's investment
objective(s) and policies as stated in the Prospectus and the Statement; (ii)
make investment decisions for each Portfolio; (iii) place purchase and sale
orders for portfolio transactions on behalf of each Portfolio; and (iv) employ
professional portfolio managers and securities analysts who provide

<PAGE> 2

research services to each Portfolio. The Sub-Adviser shall not be responsible
for the administrative affairs of the Fund, including, but not limited to,
accounting for and pricing of the Portfolios. The Sub-Adviser will use its
best efforts to manage each Portfolio so that it complies with the provisions
of Section 817(h) of the Internal Revenue Code of 1986, as amended, as
applicable to the Fund. The Adviser acknowledges and agrees that the
Sub-Adviser's compliance with its obligations in the immediately preceding
sentence will be based on information supplied by the Adviser including, but
not limited to, portfolio lot level realized and unrealized gain/loss
allocation information. The Adviser agrees to supply all such information on a
timely basis.

In addition, the Sub-Adviser shall furnish the Adviser daily information
concerning portfolio transactions and monthly, quarterly and annual reports
concerning transactions and performance of each Portfolio in such form as may
be mutually agreed upon, and the Sub-Adviser agrees to review each Portfolio
and discuss the management of it from time to time with the Adviser and the
Board.

(b) Unless the Adviser gives the Sub-Adviser written instructions to the
contrary, the Sub-Adviser shall use its good faith judgment in a manner which
it reasonably believes best serves the interests of the Portfolio shareholders
to vote or abstain from voting all proxies solicited by or with respect to the
issuers of securities in which assets of a Portfolio may be invested.

(c) The Sub-Adviser shall maintain and preserve such records related to
each Portfolio's transactions as are required of a Sub-Adviser under the
Investment Advisers Act of 1940, as amended. The Sub-Adviser shall timely
furnish to the Adviser all information relating to the Sub-Adviser's services
hereunder reasonably requested by the Adviser to keep and preserve the books
and records of each Portfolio. The Sub-Adviser will promptly supply to the
Adviser copies of any of such records upon request.

3. BROKERAGE

In selecting brokers or dealers to execute transactions on behalf of a
Portfolio, the Sub-Adviser will seek the best overall terms available. In
assessing the best overall terms available for any transaction, the Sub-Adviser
will consider factors it deems relevant, including, but not limited to, the
breadth of the market in the security, the price of the security, the financial
condition and execution capability of the broker or dealer and the
reasonableness of the commission, if any, for the specific transaction and on a
continuing basis. In selecting brokers or dealers to execute a particular
transaction, and in evaluating the best overall terms available, the
Sub-Adviser is authorized to consider the brokerage and research services (as
those terms are defined in Section 28(e) of the Securities Exchange Act of
1934, as amended) provided to a Portfolio and/or other accounts over which the
Sub-Adviser or its affiliates exercise investment discretion. Nothing in this
paragraph shall be deemed to prohibit the Sub-Adviser from paying an amount of
commission for effecting a securities transaction in excess of the amount of

2
<PAGE> 3

commission another member of an exchange, broker, or dealer would have charged
for effecting that transaction, if the Sub-Adviser determined in good faith
that such amount of commission was reasonable in relation to the value of the
brokerage and research services provided by such member, broker, or dealer,
viewed in terms of either that particular transaction or its overall
responsibilities with respect to the relevant Portfolio and/or other accounts
over which the Sub-Adviser or its affiliates exercise investment discretion.

4. COMPENSATION

In consideration of the services rendered pursuant to this Agreement, the
Adviser will pay the Sub-Adviser an annual fee calculated at the rates set
forth in Exhibit A hereto of each Portfolio's average daily net assets; the fee
is calculated daily and paid monthly. The fee for the period from the
Effective Date (defined below) of the Agreement for a Portfolio to the end of
the month during which the Effective Date occurs shall be prorated according to
the proportion that such period bears to the full monthly period. Upon any
termination of this Agreement with respect to a Portfolio before the end of a
month, the fee for such part of that month for that Portfolio shall be prorated
according to the proportion that such period bears to the full monthly period
and shall be payable upon the date of termination of this Agreement. For the
purpose of determining fees payable to the Sub-Adviser, the value of a
Portfolio's net assets shall be computed at the times and in the manner
specified in the Prospectus and/or the Statement.

5. EXPENSES

The Sub-Adviser shall bear all expenses (excluding brokerage costs,
custodian fees, auditors fees or other expenses to be borne by the Portfolios)
in connection with the performance of its services under this Agreement. The
Fund will bear certain other expenses to be incurred in its operation,
including, but not limited to, investment advisory fees, sub-advisory fees
(other than sub-advisory fees paid pursuant to this Agreement) and
administration fees, fees for necessary professional and brokerage services,
costs relating to local administration of securities, fees for any pricing
service, the costs of regulatory compliance, and costs associated with
maintaining the Fund's legal existence and shareholder relations. The
Sub-Adviser shall only bear the expenses it has expressly agreed to assume
under this Agreement.

6. STANDARD OF CARE AND INDEMNIFICATION

In the performance of its duties, the Sub-Adviser will comply with the
stated investment objectives, policies and restrictions of the Portfolios as
set forth in the Prospectus and Statement and will conform in all material
respects in accordance with any applicable regulations of any governmental
authority pertaining to its activities hereunder.

The Sub-Adviser shall exercise its best judgment and shall act in good
faith in rendering the services listed in paragraphs 2 and 3 above. The
Sub-Adviser shall not be liable for any error of judgment or mistake of law or
for any loss suffered by the Portfolio or the Adviser in connection with the
matters to which this Agreement relates, provided that nothing in this
Agreement shall be deemed to protect or purport to protect the Sub-Adviser
against any liability

3
<PAGE> 4

to the Adviser, the Fund or to the shareholders of the Portfolio to which the
Sub-Adviser would otherwise be subject by reason of willful misfeasance, bad
faith or gross negligence on its part in the performance of its duties or by
reason of the Sub-Adviser's reckless disregard of its obligations and duties
under this Agreement ("Disabling Conduct"). Except for Disabling Conduct, the
Adviser shall indemnify and hold the Sub-Adviser (and its officers, directors,
employees, controlling persons, shareholders and affiliates) harmless from any
liability arising from the Sub-Adviser's conduct under this Agreement.

Notwithstanding the foregoing, the Sub-Adviser shall indemnify and hold
harmless the Adviser against any and all losses, claims, damages, liabilities,
or litigation (including legal and other expenses) to which an Adviser
Indemnified Person may become subject under the 1933 Act, 1940 Act, the
Advisers Act, the Internal Revenue Code, under any other statute, at common law
or otherwise, arising out of the Sub-Adviser's responsibilities as Sub-Adviser
to the Fund which (1) result from the Disabling Conduct by the Sub-Adviser, any
of its employees or representatives, or any affiliate of the Sub-Adviser, (2)
result from a failure to comply with Section 2 of this Agreement, or (3) result
from any untrue statement of a material fact contained in the Prospectus or
Statement covering the shares of the Fund or a Portfolio, or any amendment or
supplement thereto, or the omission to state therein a material fact known to
the Sub-Adviser and was required to be stated therein or necessary to make the
statements therein not misleading, if such a statement or omission was made in
reliance upon information furnished to the Adviser, the Fund, or any affiliated
person of the Adviser or Fund by the Sub-Adviser or any affiliated person of
the Sub-Adviser for use in the Prospectus or Statement; provided, however, that
in no case shall the indemnity in favor of an Adviser Indemnified Person be
deemed to protect such person against any liability to which any such person
would otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence in the performance of its duties, or by reason of its reckless
disregard of its obligations and duties under this Agreement.

Sub-Adviser will treat confidentially and as proprietary information of
the Fund all records and other information relative to the Fund maintained by
the Sub-Adviser, and will not use such records and information for any purpose
other than performance of its responsibilities and duties hereunder, except (1)
after prior notification to and approval in writing by the Fund, which approval
shall not be unreasonably withheld, (2) where required by law or required by a
regulatory authority, or (3) for use in a performance composite where the Fund
is not named.

7. TERM OF AGREEMENT

This Agreement shall become effective on May 1, 1997 (the "Effective
Date") and shall continue for an initial two-year term and shall continue
thereafter so long as such continuance is specifically approved at least
annually as required by the Investment Company Act of 1940 (the "1940 Act").
This Agreement is terminable, with respect to a Portfolio without penalty, on
60 days' written notice, by the Adviser, the Board or by vote of holders of a
majority (as defined in the 1940 Act and the rules hereunder) of the
outstanding voting securities of such Portfolio, or upon 60 days' written
notice, by the Sub-Adviser. This Agreement will also terminate automatically
in the event of its assignment (as defined in the 1940 Act and the rules
thereunder).

4
<PAGE> 5

8. SERVICES TO OTHER COMPANIES OR ACCOUNTS

The Adviser understands that the Sub-Adviser now acts, will continue to
act and may act in the future as investment manager or adviser to fiduciary and
other managed accounts, and as investment manager or adviser to other
investment companies, including any offshore entitled, or accounts, and the
Adviser has no objection to the Sub-Adviser's so acting, provided that whenever
a Portfolio and one or more other investment companies or accounts managed or
advised by the Sub-Adviser have available funds for investment, investments
suitable and appropriate for each will be allocated in accordance with a
formula believed to equitable to each company and account. The Adviser
recognizes that in some cases this procedure may adversely affect the size of
the position obtainable for a Portfolio. In addition, the Adviser understands
that the persons employed by the Sub-Adviser to assist in the performance of
the Sub-Adviser's duties under this Agreement will not devote their full time
to such service and nothing contained in this Agreement shall be deemed to
limit or restrict the right of the Sub-Adviser or any affiliate of the
Sub-Adviser to engage in and devote time and attention to other businesses or
to render services of whatever kind or nature.

9. REPRESENTATIONS

Each of the parties hereto represents that the Agreement has been duly
authorized, executed and delivered by all required corporate action and that
this Agreement does not violate any existing agreements or relationships
between such party and any other party.

The Adviser represents that the post-effective amendment to the
Registration Statement for the Fund filed with the Securities and Exchange
Commission contains, as of the date hereof, no untrue material fact and does
not omit any statement of a material fact which was required to be stated
therein or necessary to make the statements contained therein not misleading;
provided that the Adviser makes no representation as to the accuracy or
completeness of information or descriptions provided by sub-advisers.

The Sub-Adviser represents that it has reviewed the post-effective
amendment to the Registration Statement for the Fund filed with the Securities
and Exchange Commission that contains disclosure about the Sub-Adviser, and
represents and warrants that, with respect to the disclosure about the
Sub-Adviser, such Registration Statement contains, as of the date hereof, no
untrue statement of any material fact and does not omit any statement of a
material fact which was required to be stated therein or necessary to make the
statements contained therein not misleading. The Sub-Adviser further
represents and warrants that it is a duly registered investment adviser under
the Advisers Act and a duly registered investment adviser in all states in
which the Sub-Adviser is required to be registered.

10. USE OF NAME

(a) The Adviser may use (and shall cause any of its affiliates including
the Fund to use) the name "Putnam Investment Management, Inc.", "Putnam
Investment Management", "Putnam Management" or "Putnam" only for so long as
this Agreement or any extension, renewal, or amendment hereof remains in
effect. At such times as this agreement shall no longer

5
<PAGE> 6

be in effect, the Adviser shall cease (and shall cause its affiliates to cease
using) to use such a name or any other name indicating that it is advised by or
otherwise connected with the Sub-Adviser and shall promptly change its name
accordingly. The Adviser acknowledges that the Fund has included the term
"Putnam" in the names of the Portfolios through permission of the Sub-Adviser,
and agrees that the Sub-Adviser reserves to itself and any successor to its
business the right to grant the non-exclusive right to use the aforementioned
names or any similar names to any other corporation or entity, including but
not limited to any investment company of which the Sub-Adviser or any
subsidiary or affiliate thereof or any successor to the business of any thereof
shall be the investment adviser.

(b) The Adviser will not, and will cause its affiliates to not, refer to
the Sub-Adviser or any affiliate in any prospectus, proxy statement or sales
literature except with the written permission of the Sub-Adviser.

(c) The Adviser will permit the Portfolio to be used as a funding vehicle
only for Policies issued by Jackson National Life Insurance Company or any of
its affiliates.

(d) The Adviser will not (and will cause its affiliates to not) engage in
marketing programs (written or otherwise) directed toward the Putnam Capital
Managers contract ("PCM") which explicitly solicit transfers from PCM to the
Adviser's products or those of its affiliates. The Adviser will not (and will
cause its affiliates to not) create or use marketing materials which provide
direct comparisons between PCM and the Adviser's products or those of any of
its affiliates. The Adviser will not (and will cause its affiliates to not)
reimburse voluntarily, or enter into any contract or policy after the date
hereof providing for the reimbursement of any deferred sales charges to
encourage the transfer of assets from PCM to the Adviser's products or those of
any affiliate. For the purposes of this Section 10(d), the term affiliate
shall not include independent agents who are not employees of the Adviser or
its corporate affiliates.

11. MISCELLANEOUS

The name "JNL Series Trust" and "Trustees of JNL Series Trust" refer
respectively to the Trust created by, and the Trustees, as trustees but not
individually or personally, acting from time to time under, the Declaration of
Trust, to which reference is hereby made and a copy of which is on file at the
office of the Secretary of State of the Commonwealth of Massachusetts and
elsewhere as required by law, and to any and all amendments thereto so filed or
hereafter filed. The obligations of the "JNL Series Trust" entered in the name
or on behalf thereof by any of the Trustees, representatives or agents are made
not individually but only in such capacities and are not binding upon any of
the Trustees, Shareholders or representatives of Trust personally, but bind
only the assets of Trust, and persons dealing with the Fund must look solely to
the assets of Trust belonging to such Fund for the enforcement of any claims
against the Trust.

In the event the Fund designates one or more series other than the
Portfolio with respect to which the Fund and the Adviser wish to retain the
Sub-Adviser to render investment advisory services hereunder, they shall notify
the Sub-Adviser in writing. If the Sub-Adviser is willing to render such
services, it shall notify the Trust and the Adviser in writing, whereupon such
series shall become a Portfolio hereunder, and be subject to this Agreement.

6
<PAGE> 7

If the foregoing is in accordance with your understanding, kindly indicate
your acceptance of this Agreement by signing and returning the enclosed copy of
this Agreement.

Very truly yours,

JACKSON NATIONAL FINANCIAL SERVICES, INC.

By: /s/ John A. Knutson
-------------------------------------

Accepted:

PUTNAM INVESTMENT MANAGEMENT, INC.

By: /s/
----------------------------
Senior Managing Director

7
<PAGE> 8

EXHIBIT A

SUB-ADVISORY FEES

Portfolio Annual Rate
--------- ----------

JNL/Putnam Growth Series 1st $150m 0.50%
next $150m 0.45%
over $300m 0.35%

JNL/Putnam Value Equity Series 1st $150m 0.50%
next $150m 0.45%
over $300m 0.35%

<PAGE> 1
EX-99.B5-o

AMENDMENT
TO
AMENDED INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT
BETWEEN
JNL SERIES TRUST
AND
JACKSON NATIONAL FINANCIAL SERVICES, INC.

This AMENDMENT is by and between JNL Series Trust, a Massachusetts
business trust (the "Trust") and Jackson National Financial Services, Inc., a
Delaware corporation (the "Adviser").

WHEREAS, eight new Series will be added to the Trust effective January 1,
1998, and the Trust desires the Adviser to perform investment advisory and
management services for these Series of the Trust; and

WHEREAS, the Adviser agrees to serve as the investment adviser and
business manager for the above-referenced Series of the Trust on the terms and
conditions set forth in the Agreement.

NOW THEREFORE, in consideration of the mutual covenants contained herein
and for other good and valuable consideration, the Trust and the Adviser agree
as follows:

1. Effective January 1, 1998, the Adviser shall serve as the investment
adviser and business manager for the JNL/Alliance Growth Series, JNL/JPM
International & Emerging Markets Series, JNL/PIMCO Total Return Bond Series,
Goldman Sachs/JNL Growth & Income Series, Lazard/JNL Small Cap Value Series,
Lazard/JNL Mid Cap Value Series, Salomon Brothers/JNL Balanced Series and
Salomon Brothers/JNL High Yield Bond Series.

<PAGE> 2

(*M = Million)
$0 to $50 to $100 to $150 to $200 to $250 to $300 to $350 to Over
Series $50 M $100 M $150 M $200 M $250 M $300 M $350 M $500 M $500 M

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JNL/Alliance Growth
Series .775% .775% .775% .775% .775% .70% .70% .70% .70%
JNL/JPM
International &
Emerging Markets
Series .975% .95% .95% .95% .90% .90% .90% .85% .85%
JNL/PIMCO Total
Return Bond Series .70% .70% .70% .70% .70% .70% .70% .70% .70%
Goldman Sachs/JNL
Growth & Income
Series .925% .90% .90% .90% .85% .85% .85% .80% .80%
Lazard/JNL Small
Cap Value Series 1.05% 1.00% 1.00% .975% .975% .975% .925% .925% .925%
Lazard/JNL Mid Cap
Value Series .975% .975% .975% .925% .925% .925% .90% .90% .90%
Salomon
Brothers/JNL
Balanced Series .80% .75% .70% .70% .70% .70% .70% .70% .70%
Salomon
Brothers/JNL High
Yield Bond Series .80% .75% .70% .70% .70% .70% .70% .70% .70%
</TABLE>

3. The Trust and the Adviser agree to abide and be bound by all of the
terms and conditions set forth in the Agreement.

<PAGE> 3

IN WITNESS WHEREOF, the Trust and the Adviser have caused this Agreement
to be executed by their duly authorized officers as of the ____ day of
_______________, 1997.

JNL SERIES TRUST

By:
-----------------

Name: Andrew B. Hopping
-----------------

Title: President
------------------

JACKSON NATIONAL FINANCIAL
SERVICES, INC.

By:
-----------------

Name: Thomas J. Meyer
-----------------

Title: Vice President
-----------------

<PAGE> 1
EX-99.B5-p

INVESTMENT SUB-ADVISORY AGREEMENT

This AGREEMENT is effective this ____ day of _____________, 1997, by and
between JACKSON NATIONAL FINANCIAL SERVICES, INC., a Delaware Corporation and
registered investment adviser ("Adviser"), and Alliance Capital Management
L.P., a Delaware limited partnership and registered investment adviser
("Sub-Adviser").

WHEREAS, Adviser is the investment manager for the JNL Series Trust (the
"Trust"), an open-end management investment company registered under the
Investment Company Act of 1940, as amended ("1940 Act"); and

WHEREAS, the Trust is authorized to issue separate series, each series
having its own investment objective or objectives, policies and limitations;

WHEREAS, Adviser desires to retain Sub-Adviser as Adviser's agent to
furnish investment advisory services to the series of the Trust listed on
Schedule A hereto ("Fund").

NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:

1. Appointment. Adviser hereby appoints Sub-Adviser to provide certain
sub-investment advisory services to the Fund for the period and on the
terms set forth in this Agreement. Sub-Adviser accepts such appointment
and agrees to furnish the services herein set forth for the compensation
herein provided.

In the event the Adviser designates one or more series other than the
Fund with respect to which the Adviser wishes to retain the Sub-Adviser
to render investment advisory services hereunder, it shall notify the
Sub-Adviser in writing. If the Sub-Adviser is willing to render such
services, it shall notify the Adviser in writing, whereupon such series
shall become a Fund hereunder, and be subject to this Agreement.

2. Delivery of Documents. Adviser has or will furnish Sub-Adviser with
copies properly certified or authenticated of each of the following:

a) the Trust's Agreement and Declaration of Trust, as filed with
the Secretary of State of The Commonwealth of Massachusetts on June
1, 1994, and all amendments thereto or restatements thereof (such
Declaration, as presently in effect and as it shall from time to
time be amended or restated, is herein called the "Declaration of
Trust");

b) the Trust's By-Laws and amendments thereto;

c) resolutions of the Trust's Board of Trustees authorizing the
appointment of Sub-Adviser and approving this Agreement;

<PAGE> 2

d) the Trust's Notification of Registration on Form N-8A under
the 1940 Act as filed with the Securities and Exchange Commission
(the "SEC") and all amendments thereto;

e) the Trust's Registration Statement on Form N-1A under the
Securities Act of 1933, as amended ("1933 Act") and under the 1940
Act as filed with the SEC and all amendments thereto insofar as such
Registration Statement and such amendments relate to the Fund; and

f) the Trust's most recent prospectus and Statement of
Additional Information (collectively called the "Prospectus").

Adviser will furnish the Sub-Adviser from time to time with copies
of all amendments of or supplements to the foregoing.

3. Management. Subject always to the supervision of Trust's Board of
Trustees and the Adviser, Sub-Adviser will furnish an investment program
in respect of, and make investment decisions for, all assets of the Fund
and place all orders for the purchase and sale of securities, all on
behalf of the Fund. In the performance of its duties, Sub-Adviser will
satisfy its fiduciary duties to the Fund (as set forth below), and will
monitor the Fund's investments, and will comply with the provisions of
Trust's Declaration of Trust and By-Laws, as amended from time to time,
and the stated investment objectives, policies and restrictions of the
Fund. Sub-Adviser and Adviser will each make its officers and employees
available to the other from time to time at reasonable times to review
investment policies of the Fund and to consult with each other regarding
the investment affairs of the Fund. Sub-Adviser will report to the Board
of Trustees and to Adviser with respect to the implementation of such
program. Sub-Adviser is responsible for compliance with the provisions of
Section 817(h) of the Internal Revenue Code of 1986, as amended,
applicable to the Fund.

The Sub-Adviser further agrees that it:

a) will use the same skill and care in providing such services
as it uses in providing services to fiduciary accounts for which it
has investment responsibilities;

b) will conform with all applicable Rules and Regulations of the
Securities and Exchange Commission in all material respects and in
addition will conduct its activities under this Agreement in
accordance with any applicable regulations of any governmental
authority pertaining to its investment advisory activities;

c) will place orders pursuant to its investment determinations
for the Fund either directly with the issuer or with any broker or
dealer, including an affiliated broker-dealer which is a member of a
national securities exchange as permitted in accordance with
guidelines established by the Board of Trustees. In placing orders
with brokers and dealers, the Sub-Adviser will attempt to obtain the
best combination of prompt execution of orders in an effective
manner and at the most favorable price. Consistent with this
obligation, Sub-Adviser may, in its discretion, purchase and sell
portfolio securities to and from brokers and dealers who provide the
Sub-Adviser with research advice and other services. In no instance
will

<PAGE> 3

portfolio securities be purchased from or sold to the Adviser,
Sub-Adviser or any affiliated person of either the Trust, Adviser,
or Sub-Adviser, except as may be permitted under the 1940 Act;

d) will report regularly to Adviser and to the Board of Trustees
and will make appropriate persons available for the purpose of
reviewing with representatives of Adviser and the Board of Trustees
on a regular basis at reasonable times the management of the Fund,
including, without limitation, review of the general investment
strategies of the Fund, the performance of the Fund in relation to
standard industry indices, interest rate considerations and general
conditions affecting the marketplace and will provide various other
reports from time to time as reasonably requested by Adviser;

e) will prepare and maintain such books and records with respect
to the Fund's securities transactions and will furnish Adviser and
Trust's Board of Trustees such periodic and special reports as the
Board or Adviser may request;

f) will act upon instructions from Adviser not inconsistent with
the fiduciary duties hereunder;

g) will treat confidentially and as proprietary information of
Trust all such records and other information relative to Trust
maintained by the Sub-Adviser, and will not use such records and
information for any purpose other than performance of its
responsibilities and duties hereunder, except after prior
notification to and approval in writing by Trust, which approval
shall not be unreasonably withheld and may not be withheld where the
Sub-Adviser may be exposed to civil or criminal contempt proceedings
for failure to comply, when requested to divulge such information by
duly constituted authorities, or when so requested by Trust; and

h) will vote proxies received in connection with securities held
by the Fund consistent with its fiduciary duties hereunder.

4. Expenses. During the term of this Agreement, Sub-Adviser will pay all
expenses incurred by it in connection with its activities under this
Agreement other than the cost of securities (including brokerage
commission, if any) purchased for the Fund.

5. Books and Records. In compliance with the requirements of Rule 31a-3
under the 1940 Act, the Sub-Adviser hereby agrees that all records which
it maintains for the Trust are the property of the Trust and further
agrees to surrender promptly to the Trust any of such records upon the
Trust's request. Sub-Adviser further agrees to preserve for the periods
prescribed by Rule 31a-2 under the 1940 Act the records required to be
maintained by Rule 31a-1(b)(5), (6), (7), (9) and (10) under the 1940 Act.

<PAGE> 4

National Life Insurance Company in accordance with Schedule B hereto. From
time to time, the Sub-Adviser may agree to waive or reduce some or all of
the compensation to which it is entitled under this Agreement.

The Sub-Adviser represents and warrants that in no event shall the
Sub-Adviser provide similar investment advisory services to any client
comparable to the Fund being managed under this Agreement at a composite
rate of compensation less than that provided for herein.

7. Services to Others. Adviser understands, and has advised the Trust's
Board of Trustees, that Sub-Adviser now acts, or may in the future act, as
an investment adviser to fiduciary and other managed accounts, and as
investment adviser or sub-investment adviser to other investment
companies. Adviser has no objection to Sub-Adviser acting in such
capacities, provided that whenever the Fund and one or more other
investment advisory clients of Sub-Adviser have available funds for
investment, investments selected for each will be allocated in a manner
believed by Sub-Adviser to be equitable to each. Adviser recognizes, and
has advised Trust's Board of Trustees, that in some cases this procedure
may adversely affect the size of the position that the participating Fund
may obtain in a particular security. In addition, Adviser understands, and
has advised Trust's Board of Trustees, that the persons employed by
Sub-Adviser to assist in Sub-Adviser's duties under this Agreement will
not devote their full time to such service and nothing contained in this
Agreement will be deemed to limit or restrict the right of Sub-Adviser or
any of its affiliates to engage in and devote time and attention to other
businesses or to render services of whatever kind or nature.

8. Standard of Care and Limitation of Liability. The Sub-Adviser shall
exercise its best judgment and shall act in good faith in rendering the
services pursuant to this Agreement.

Sub-Adviser, its officers, directors, employees, agents or affiliates
will not be subject to any liability to the Adviser or the Fund or their
directors, officers, employees, agents or affiliates for any error of
judgment or mistake of law or for any loss suffered by the Fund in
connection with the performance of Sub-Adviser's duties under this
Agreement, except for a loss resulting from Sub-Adviser's willful
misfeasance, bad faith, or gross negligence in the performance of its
duties or by reason of its reckless disregard of its obligations and
duties under this Agreement.

9. Indemnification. Notwithstanding Section 8 of this Agreement, the
Sub-Adviser agrees to indemnify and hold harmless the Adviser, any
affiliated person of the Adviser, and each person, if any, who, within the
meaning of Section 15 of the 1933 Act, controls ("controlling person") the
Adviser (all of such persons being referred to as "Adviser Indemnified
Persons") against any and all losses, claims, damages, liabilities, or
litigation (including reasonable legal and other expenses) to which an
Adviser Indemnified Person may become subject under the 1933 Act, 1940
Act, the Investment Advisers Act of 1940, the Internal Revenue Code, under
any other statute, at common law or otherwise, arising out of the
Sub-Adviser's responsibilities as Sub-Adviser to the Fund and to the Trust
which (1) may be based upon any misfeasance, malfeasance, or nonfeasance
by the Sub-Adviser, any of its employees or representatives, or any
affiliate of or any person acting on behalf of the Sub-Adviser, (2) may be
based upon a failure to comply with Section 3 of this Agreement, or (3)
may be based upon any untrue

<PAGE> 5

statement or alleged untrue statement of a material fact contained in the
Prospectus, or any amendment or supplement thereto, or the omission or
alleged omission to state therein a material fact known or which should
have been known to the Sub-Adviser and was required to be stated therein
or necessary to make the statements therein not misleading, if such a
statement or omission was made in reliance upon information furnished to
the Adviser, the Trust, or any affiliated person of the Adviser or Trust
by the Sub-Adviser or any affiliated person of the Sub-Adviser; provided,
however, that in no case shall the indemnity in favor of an Adviser
Indemnified Person be deemed to protect such person against any liability
to which any such person would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence in the performance of its duties,
or by reason of its reckless disregard of its obligations and duties
under this Agreement.

10. Duration and Termination. This Agreement will become effective as to a
Fund upon execution or, if later, the date that initial capital for such
Fund is first provided to it and, unless sooner terminated as provided
herein, will continue in effect for two years from such date. Thereafter,
if not terminated as to a Fund, this Agreement will continue in effect as
to a Fund for successive periods of 12 months, provided that such
continuation is specifically approved at least annually by the Trust's
Board of Trustees or by vote of a majority of the outstanding voting
securities of such Fund, and in either event approved also by a majority
of the Trustees of the Trust who are not interested persons of the Trust,
or of the Adviser, or of the Sub-Adviser. Notwithstanding the foregoing,
this Agreement may be terminated as to a Fund at any time, without the
payment of any penalty, on sixty days' written notice by the Trust or
Adviser, or on ninety days' written notice by the Sub-Adviser. This
Agreement will immediately terminate in the event of its assignment. (As
used in this Agreement, the terms "majority of the outstanding voting
securities", "interested persons" and "assignment" have the same meanings
of such terms in the 1940 Act.) The Sub-Adviser agrees that it will
notify the Adviser of any changes in the membership of the general
partners of the Sub-Adviser within a reasonable time after such change.

11. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally; but only by an
instrument in writing signed by the party against which enforcement of the
change, waiver, discharge or termination is sought.

12 Notice. Any notice under this Agreement shall be in writing, addressed
and delivered or mailed, postage prepaid, to the other party at such
address as such other party may designate for the receipt of such notice.

13. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. If any
provision of this Agreement is held or made invalid by a court decision,
statute, rule or otherwise, the remainder of this Agreement will be
binding upon and shall inure to the benefit of the parties hereto.

<PAGE> 6

elsewhere as required by law, and to any and all amendments thereto so
filed or hereafter filed. The obligations of the "JNL Series Trust"
entered in the name or on behalf thereof by any of the Trustees,
representatives or agents are made not individually but only in such
capacities and are not binding upon any of the Trustees, Shareholders or
representatives of the Trust personally, but bind only the assets of the
Trust, and persons dealing with the Fund must look solely to the assets of
the Trust belonging to such Fund for the enforcement of any claims
against Trust.

14. Representations and Warranties of the Sub-Adviser.

The Sub-Adviser hereby represents that this Agreement does not violate
any existing agreements between the Sub-Adviser and any other party.

The Sub-Adviser further represents and warrants that it is a duly
registered investment adviser under the Investment Advisers Act of 1940,
as amended and has provided to the Adviser a copy of its most recent Form
ADV as filed with the Securities and Exchange Commission.

The Sub-Adviser further represents that is has reviewed the
post-effective amendment to the Registration Statement for the Trust
filed with the Securities and Exchange Commission that contains
disclosure about the Sub-Adviser, and represents and warrants that, with
respect to the disclosure about the Sub-Adviser or information relating,
directly or indirectly, to the Sub-Adviser, such Registration Statement
contains, as of the date hereof, no untrue statement of any material fact
and does not omit any statement of a material fact which was required to
be stated therein or necessary to make the statements contained therein
not misleading.

15. Applicable Law. This Agreement shall be construed in accordance with
applicable federal law and the laws of the State of Michigan.

IN WITNESS WHEREOF, the Adviser and the Sub-Adviser have caused this
Agreement to be executed as of this ____ day of _________________, 199_.

JACKSON NATIONAL FINANCIAL
SERVICES, INC.

By:
----------------------------

Name:
--------------------------

Title: President
-------------------------

<PAGE> 7

ALLIANCE CAPITAL MANAGEMENT L.P.

By: Alliance Capital Management
Corporation, its general partner

By:_________________________________

Name:_______________________________

Title:_______________________________

7
<PAGE> 8

SCHEDULE A
(Fund)

JNL/ALLIANCE GROWTH SERIES

8
<PAGE> 9

SCHEDULE B
(Compensation)

JNL/ALLIANCE GROWTH SERIES

Average Daily Net Assets Annual Rate
-------------------------- -----------

0 to $250 Million: .35%
Amounts over $250 Million: .25%

<PAGE> 1
EX-99.B5-q

INVESTMENT SUB-ADVISORY AGREEMENT

This AGREEMENT is effective this ____ day of _____________, 1997, by and
between JACKSON NATIONAL FINANCIAL SERVICES, INC., a Delaware Corporation and
registered investment adviser ("Adviser"), and GOLDMAN SACHS ASSET MANAGEMENT,
a separate operating division of Goldman, Sachs & Co., a New York limited
partnership and registered investment adviser ("Sub-Adviser").

WHEREAS, the Trust is authorized to issue separate series, each series
having its own investment objective or objectives, policies and limitations;

WHEREAS, Adviser desires to retain Sub-Adviser as Adviser's agent to
furnish investment advisory services to the series of the Trust listed on
Schedule A hereto ("Fund").

NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:

2. Delivery of Documents. Adviser has or will furnish Sub-Adviser with
copies properly certified or authenticated of each of the following:

b) the Trust's By-Laws and amendments thereto;

c) resolutions of the Trust's Board of Trustees authorizing the
appointment of Sub-Adviser and approving this Agreement;

<PAGE> 2

d) the Trust's Notification of Registration on Form N-8A under
the 1940 Act as filed with the Securities and Exchange Commission
(the "SEC") and all amendments thereto;

f) the Trust's most recent prospectus and Statement of
Additional Information (collectively called the "Prospectus").

Adviser will furnish the Sub-Adviser from time to time with copies
of all amendments of or supplements to the foregoing, in
particular, amendments to the Prospectus shall be furnished to the
Sub-Adviser in advance to the extent that the Fund is impacted by
the Amendment.

The Sub-Adviser further agrees that it:

a) will use the same skill and care in providing such services
as it uses in providing services to fiduciary accounts for which it
has investment responsibilities;

b) will conform with all applicable Rules and Regulations of the
Securities and Exchange Commission in all material respects and in
addition, and to the extent notified as set forth above with respect
to applicable state insurance laws, will conduct its activities
under this Agreement in accordance with any applicable regulations
of any governmental authority pertaining to its investment advisory
activities;

<PAGE> 3

exchange as permitted in accordance with guidelines established
by the Board of Trustees. In placing orders with brokers and
dealers, the Sub-Adviser will attempt to obtain the best combination
of prompt execution of orders in an effective manner and at the most
favorable price. Consistent with this obligation, when the execution
and price offered by two or more brokers or dealers are comparable
Sub-Adviser may, in its discretion, purchase and sell portfolio
securities to and from brokers and dealers who provide the
Sub-Adviser with research advice and other services. Therefore, the
Sub-Adviser is authorized to consider such services provided to the
Fund and other accounts over which Sub-Adviser or any of its
affiliates exercises investment discretion and to place orders for
the purchase and sale of securities for the Fund with such brokers,
subject to review by the Board of Trustees from time to time with
respect to the extent and continuation of this practice. It is
understood that the services provided by such brokers may be useful
to Sub-Adviser in connection with its services to other clients.
Sub-Adviser may, on occasions when it deems the purchase or sale of
a security to be in the best interests of the Fund as well as its
other clients, aggregate, to the extent permitted by applicable laws
and rules, the securities to be sold or purchased in order to obtain
the most favorable execution and net price. In such event,
allocation of the securities so purchase or sold, as well as the
expenses incurred in the transaction, will be made by Sub-Adviser in
the manner it considers to be the most equitable and consistent with
its obligations to the Fund and to such other clients. Sub-Adviser
is not, however, required to aggregate securities orders. In no
instance will portfolio securities be purchased from or sold to the
Adviser, Sub-Adviser or any affiliated person of either the Trust,
Adviser, or Sub-Adviser, except as may be permitted under the 1940
Act. In addition, joint repurchase or other accounts may not be
utilized by the Fund except to the extent permitted under any
exemptive order obtained by the Sub-Adviser provided that all
conditions of such order are complied with;

f) will act upon instructions from Adviser not inconsistent with
the fiduciary duties hereunder;

<PAGE> 4

provided that the Sub-Adviser may disclose any information
otherwise required to be kept confidential pursuant to this
subsection (i) to it employees, agents, affiliates and counsel on a
need-to-know basis, (ii) to its examiners, auditors or accountants
or any other governmental agency or similar authority exercising
jurisdiction over it, (iii) as may be required by applicable law,
legal process or in connection with any litigation arising out of
the subject matter of this Agreement, and (iv) to the extent that
such information is otherwise made public and such disclosure is not
in breach of any confidentiality restriction; and

h) will vote proxies received in connection with securities held
by the Fund consistent with its fiduciary duties hereunder.

4. Expenses. During the term of this Agreement, Sub-Adviser will pay all
expenses incurred by it in connection with its activities under this
Agreement other than the cost of securities (including taxes, brokerage
commissions and other transaction costs, if any) purchased for the Fund.

6. Compensation. For the services provided and the expenses assumed
pursuant to this Agreement, Adviser will pay the Sub-Adviser, and the
Sub-Adviser agrees to accept as full compensation therefor, a sub-advisory
fee, accrued daily and payable monthly on the average daily net assets in
the Fund or Funds excluding the net assets representing capital
contributed by Jackson National Life Insurance Company in accordance with
Schedule B hereto. From time to time, the Sub-Adviser may agree to waive
or reduce some or all of the compensation to which it is entitled under
this Agreement.

For the purpose of accruing compensation, the net assets of the Fund will
be determined in the manner provided in the then-current prospectus of
the Fund. In the event of termination of this Agreement, all
compensation due to Sub-Adviser through the date of termination will be
calculated on a pro-rated basis through the date of termination and paid
on the first business day after the next succeeding month end.

The Sub-Adviser represents and warrants that in no event shall the
Sub-Adviser provide substantially the same investment advisory services
to any client (excluding any existing proprietary product or client of
the Sub-Adviser or any of its affiliates) comparable to the Fund being
managed under this Agreement at a composite rate of compensation less
than that provided for herein.

<PAGE> 5

funds for investment, investments selected for each will be allocated in
a manner believed by Sub-Adviser to be equitable to each. Adviser
recognizes, and has advised Trust's Board of Trustees, that in some cases
this procedure may adversely affect the size of the position that the
participating Fund may obtain in a particular security. Adviser and
Board of Trustees also understand that Sub-Adviser and its affiliates may
give advice and take action with respect to any of its other clients or
for its own account which may differ from the timing or nature of action
taken by Sub-Adviser with respect to the Fund. Nothing in this Agreement
imposes upon Sub-Adviser any obligation to purchase or sell or to
recommend for purchase or sale, with respect to the Fund, any security
which Sub-Adviser or its partners, officers, employees or affiliates may
purchase or sell for its or their own account(s) or for the account of
any other client. In addition, Adviser understands, and has advised
Trust's Board of Trustees, that the persons employed by Sub-Adviser to
assist in Sub-Adviser's duties under this Agreement will not devote their
full time to such service and nothing contained in this Agreement will be
deemed to limit or restrict the right of Sub-Adviser or any of its
affiliates to engage in and devote time and attention to other businesses
or to render services of whatever kind or nature.

8. Standard of Care and Limitation of Liability. The Sub-Adviser shall
exercise its best judgment and shall act in good faith in rendering the
services pursuant to this Agreement.

Sub-Adviser, its officers, partners, managing directors, employees,
agents or affiliates ("associated persons") will not be subject to any
liability to the Adviser or the Fund or their trustees, directors,
officers, employees, agents or affiliates for any error of judgment or
mistake of law or for any loss suffered by the Fund in connection with
the performance of Sub-Adviser's duties under this Agreement or as a
result of the failure by the Adviser, or any of its affiliates, to comply
with this Agreement and/or any applicable insurance laws and rules,
except for a loss resulting from Sub-Adviser's willful misfeasance, bad
faith, or gross negligence in the performance of its duties or by reason
of its reckless disregard of its obligations and duties under this
Agreement.

<PAGE> 6

Trust, or any affiliated person of the Adviser or Trust by the
Sub-Adviser or any affiliated person of the Sub-Adviser; provided,
however, that in no case shall the indemnity in favor of an Adviser
Indemnified Person be deemed to protect such person against any liability
to which any such person would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence in the performance of its
duties, or by reason of its reckless disregard of its obligations and
duties under this Agreement.

The Adviser hereby indemnifies, defends and protects Sub-Adviser and
holds Sub-Adviser and its associated persons harmless from and against
any and all losses, claims, damages, liabilities or litigation (including
reasonable legal and other expenses) arising out of any breach by Adviser
of any representation or agreement contained in this Agreement (including
any failure by the Adviser to apprise Sub-Adviser of any changes in any
applicable state insurance laws and rules).

10. Duration and Termination. This Agreement will become effective as to a
Fund upon execution or, if later, on the date that initial capital for
such Fund is first provided to it and, unless sooner terminated as
provided herein, will continue in effect for two years from such date.
Thereafter, if not terminated as to a Fund, this Agreement will continue
in effect as to a Fund for successive periods of 12 months, provided that
such continuation is specifically approved at least annually by the
Trust's Board of Trustees or by vote of a majority of the outstanding
voting securities of such Fund, and in either event approved also by a
majority of the Trustees of the Trust who are not interested persons of
the Trust, or of the Adviser, or of the Sub-Adviser. Notwithstanding the
foregoing, this Agreement may be terminated as to a Fund at any time,
without the payment of any penalty, on sixty days' written notice by the
Trust or Adviser, or on sixty days' written notice by the Sub-Adviser.
This Agreement will immediately terminate in the event of its assignment.
(As used in this Agreement, the terms "majority of the outstanding voting
securities", "interested persons" and "assignment" have the same meanings
of such terms in the 1940 Act.)

12. Notice. Any notice under this Agreement shall be in writing, addressed
and delivered or mailed, postage prepaid, to the other party at such
address as such other party may designate for the receipt of such notice.

13. Reference to Sub-Adviser. Neither Adviser nor the Trust will publish or
distribute any information, including but not limited to registration
statements, advertising or promotional material, regarding the provision
of investment advisory services by Sub-Adviser pursuant to this Agreement,
or use in advertising, publicity or otherwise the name of Sub-Adviser or
any of its affiliates, or any trade name, trademark, trade device, service
mark, symbol or any abbreviation, contraction or simulation thereof of
Sub-Adviser or its affiliates without the prior written consent of
Sub-Adviser. Notwithstanding the foregoing, Adviser may distribute
information regarding the provision of investment advisory services by
Sub-Adviser to the Trust's Board of Trustees ("Board Materials") without
the prior written consent of Sub-Adviser.

<PAGE> 7

14. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. If any
provision of this Agreement is held or made invalid by a court decision,
statute, rule or otherwise, the remainder of this Agreement will be
binding upon and shall inure to the benefit of the parties hereto.

The name "JNL Series Trust" and "Trustees of JNL Series Trust" refer
respectively to the Trust created by, and the Trustees, as trustees but
not individually or personally, acting from time to time under, the
Declaration of Trust, to which reference is hereby made and a copy of
which is on file at the office of the Secretary of State of the
Commonwealth of Massachusetts and elsewhere as required by law, and to
any and all amendments thereto so filed or hereafter filed. The
obligations of the "JNL Series Trust" entered in the name or on behalf
thereof by any of the Trustees, representatives or agents are made not
individually but only in such capacities and are not binding upon any of
the Trustees, Shareholders or representatives of the Trust personally,
but bind only the assets of the Trust, and persons dealing with the Fund
must look solely to the assets of the Trust belonging to such Fund for
the enforcement of any claims against Trust. Sub-Adviser and its
affiliates will not, without the prior written consent of Adviser,
solicit for employment, or hire or retain as a consultant,
representative, agent or adviser, any person who is now employed by or
acting as a representative or agent for Adviser or Adviser's affiliates
(including, without limitation, Jackson National Life Distributors, Inc.)

The business unit within Sub-Adviser responsible for sub-advisory
relationships will not, without the prior written consent of Adviser,
solicit for employment, initiate a recommendation of employment or hire
or retain as a consultant, representative, agent or adviser, any person
who is now employed by or acting as a representative or agent for Adviser
or Adviser's affiliates (including, without limitation, Jackson National
Life Distributors, Inc.)

15. Representations and Warranties of the Sub-Adviser.

The Sub-Adviser hereby represents that this Agreement does not violate
any existing agreements between the Sub-Adviser and any other party.

16. Applicable Law. This Agreement shall be construed in accordance with
applicable federal law and the laws of the Commonwealth of Massachusetts.

<PAGE> 8

IN WITNESS WHEREOF, the Adviser and the Sub-Adviser have caused this
Agreement to be executed as of this ____ day of _________________, 199_.

JACKSON NATIONAL FINANCIAL
SERVICES, INC.

By:
-------------------------------

Name: Andrew B. Hopping
-----------------------------

Title: President
----------------------------

GOLDMAN SACHS ASSET MANAGEMENT, A SEPARATE
OPERATING DIVISION OF GOLDMAN, SACHS & CO.

By: Goldman, Sachs & Co.

By:
------------------------------

Name:
----------------------------

Title:
---------------------------

<PAGE> 9

SCHEDULE A
(Fund)

GOLDMAN SACHS/JNL GROWTH & INCOME SERIES

<PAGE> 10

SCHEDULE B
(Compensation)

GOLDMAN SACHS/JNL GROWTH & INCOME SERIES

Average Daily Net Assets Annual Rate
-----------------------------------------------------

0 to $50 Million: .50%
$50 Million to $200 Million: .45%
$200 Million to $350 Million: .40%
Amounts over $350 Million: .35%

<PAGE> 1

EX-99.B5-r

INVESTMENT SUB-ADVISORY AGREEMENT

This AGREEMENT is effective this ____ day of _____________, 1997, by and
between JACKSON NATIONAL FINANCIAL SERVICES, INC., a Delaware Corporation and
registered investment adviser ("Adviser"), and J.P. Morgan Investment
Management Inc., a New York trust company and registered investment adviser
("Sub-Adviser").

WHEREAS, the Trust is authorized to issue separate series, each series
having its own investment objective or objectives, policies and limitations;

WHEREAS, Adviser desires to retain Sub-Adviser as Adviser's agent to
furnish investment advisory services to the series of the Trust listed on
Schedule A hereto ("Fund").

NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:

2. Delivery of Documents. Adviser has or will furnish Sub-Adviser with
copies properly certified or authenticated of each of the following:

b) the Trust's By-Laws and amendments thereto;

c) resolutions of the Trust's Board of Trustees authorizing the
appointment of Sub-Adviser and approving this Agreement;

<PAGE> 2

d) the Trust's Notification of Registration on Form N-8A under
the 1940 Act as filed with the Securities and Exchange Commission
(the "SEC") and all amendments thereto;

f) the Trust's most recent prospectus and Statement of
Additional Information (collectively called the "Prospectus").

Adviser will furnish the Sub-Adviser from time to time with copies
of all amendments of or supplements to the foregoing.

The Sub-Adviser further agrees that it:

a) will use the same skill and care in providing such services
as it uses in providing services to fiduciary accounts for which it
has investment responsibilities;

<PAGE> 3

Board of Trustees. In placing orders with brokers and dealers,
the Sub-Adviser will attempt to obtain the best combination of
prompt execution of orders in an effective manner and at the most
favorable price. Consistent with this obligation, when the execution
and price offered by two or more brokers or dealers are comparable
Sub-Adviser may, in its discretion, purchase and sell portfolio
securities to and from brokers and dealers who provide the
Sub-Adviser with research advice and other services. In no instance
will portfolio securities be purchased from or sold to the
Adviser, Sub-Adviser or any affiliated person of either the Fund,
Adviser, or Sub-Adviser, except as may be permitted under the 1940
Act;

f) will act upon instructions from Adviser not inconsistent with
the fiduciary duties hereunder;

h) will vote proxies received in connection with securities held
by the Fund consistent with its fiduciary duties hereunder.

<PAGE> 4

6. Compensation. For the services provided and the expenses assumed
pursuant to this Agreement, Adviser will pay the Sub-Adviser, and the
Sub-Adviser agrees to accept as full compensation therefor, a sub-advisory
fee, accrued daily and payable monthly on the average daily net assets in
the Fund or Funds in accordance with Schedule B hereto. From time to time,
the Sub-Adviser may agree to waive or reduce some or all of the
compensation to which it is entitled under this Agreement.

8. Standard of Care and Limitation of Liability. The Sub-Adviser shall
exercise its best judgment and shall act in good faith in rendering the
services pursuant to this Agreement.

9. Indemnification. Adviser and Sub-Adviser each agree to indemnify the
other against any claim, loss or liability to such other party (including
reasonable attorneys' fees) arising out of any action on the part of the
indemnifying party which constitutes willful misfeasance, bad faith or
gross negligence.

<PAGE> 5

Adviser, or of the Sub-Adviser. Notwithstanding the foregoing, this
Agreement may be terminated as to a Fund at any time, without the payment
of any penalty, on sixty days' written notice by the Trust or Adviser, or
on ninety days' written notice by the Sub-Adviser. This Agreement will
immediately terminate in the event of its assignment. (As used in this
Agreement, the terms "majority of the outstanding voting securities",
"interested persons" and "assignment" have the same meanings of such
terms in the 1940 Act.)

The name "JNL Series Trust" and "Trustees of JNL Series Trust"
refer respectively to the Trust created by, and the Trustees, as trustees
but not individually or personally, acting from time to time under, the
Declaration of Trust, to which reference is hereby made and a copy of
which is on file at the office of the Secretary of State of the
Commonwealth of Massachusetts and elsewhere as required by law, and to any
and all amendments thereto so filed or hereafter filed. The obligations of
the "JNL Series Trust" entered in the name or on behalf thereof by any of
the Trustees, representatives or agents are made not individually but only
in such capacities and are not binding upon any of the Trustees,
Shareholders or representatives of the Trust personally, but bind only the
assets of the Trust, and persons dealing with the Fund must look solely to
the assets of the Trust belonging to such Fund for the enforcement of any
claims against Trust.

14. Disclosure. Neither the Trust, the Fund or the Adviser shall, without
the prior written consent of the Sub-Adviser, make representations
regarding or reference to the Sub-Adviser or any affiliates in any
disclosure document, advertisement, sales literature or other promotional
materials.

15. Representations and Warranties of the Sub-Adviser.

The Sub-Adviser hereby represents that this Agreement does not violate
any existing agreements between the Sub-Adviser and any other party.

<PAGE> 6

Under the United Kingdom Financial Services Act 1986, the Sub-Adviser is
a member of the Investment Management Regulatory Organization Limited
("IMRO") and as such is regulated by IMRO in the conduct of its
investment business in the United Kingdom and is subject to IMRO's
delegation rules. All services provided by the Sub-Adviser under this
Agreement are provided on the basis that the Trust and the Fund are a
non-private customer as that term is defined in IMRO's rules."

16. Applicable Law. This Agreement shall be construed in accordance with
applicable federal law and the laws of the State of Michigan.

IN WITNESS WHEREOF, the Adviser and the Sub-Adviser have caused this
Agreement to be executed as of this ____ day of _________________, 199_.

JACKSON NATIONAL FINANCIAL
SERVICES, INC.

By:
-----------------------------------

Name: Andrew B. Hopping
---------------------------------

Title: President
-------------------------------

J.P. MORGAN INVESTMENT MANAGEMENT INC.

By:
-----------------------------------

Name:
---------------------------------

Title:
--------------------------------

<PAGE> 7

SCHEDULE A
(Fund)

JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES

7
<PAGE> 8

SCHEDULE B
(Compensation)

JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES

<TABLE>
<CAPTION>
Average Daily Net Assets Annual Rate
-----------------------------------------------------------
<S> <C>
0 to $50 Million: .55%
$50 Million to $200 Million: .50%
$200 Million to $350 Million: .45%
Amounts over $350 Million: .40%
</TABLE>

<PAGE> 1

EX-99.B5-s

INVESTMENT SUB-ADVISORY AGREEMENT

This AGREEMENT is effective this ____ day of _____________, 1997, by and
between JACKSON NATIONAL FINANCIAL SERVICES, INC., a Delaware Corporation and
registered investment adviser ("Adviser"), and LAZARD ASSET MANAGEMENT, a
division of Lazard Freres & Co. LLC, a New York limited liability company, and
registered investment adviser ("Sub-Adviser").

WHEREAS, the Trust is authorized to issue separate series, each series
having its own investment objective or objectives, policies and limitations;

WHEREAS, Adviser desires to retain Sub-Adviser as Adviser's agent to
furnish investment advisory services to the series of the Trust listed on
Schedule A hereto ("Fund").

NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:

In the event the Adviser designates one or more series other than the
Fund with respect to which the Adviser wishes to retain the Sub-Adviser to
render investment advisory services hereunder, it shall notify the
Sub-Adviser in writing. If the Sub-Adviser is willing to render such
services, it shall notify the Adviser in writing, whereupon such series
shall become a Fund hereunder, and be subject to this Agreement.

2. Delivery of Documents. Adviser has or will furnish Sub-Adviser with
copies properly certified or authenticated of each of the following:

b) the Trust's By-Laws and amendments thereto;

c) resolutions of the Trust's Board of Trustees authorizing the
appointment of Sub-Adviser and approving this Agreement;

<PAGE> 2

d) the Trust's Notification of Registration on Form N-8A under
the 1940 Act as filed with the Securities and Exchange Commission
(the "SEC") and all amendments thereto;

f) the Trust's most recent prospectus and Statement of
Additional Information (collectively called the "Prospectus").

Adviser will furnish the Sub-Adviser from time to time with copies
of all amendments of or supplements to the foregoing.

The Sub-Adviser further agrees that it:

a) will use the same skill and care in providing such services
as it uses in providing services to fiduciary accounts for which it
has investment responsibilities;

c) will place orders pursuant to its investment determinations
for the Fund either directly with the issuer or with any broker or
dealer, including an affiliated broker-dealer which is a member of a
national securities exchange as permitted in accordance with
guidelines established by the Board of Trustees. In placing orders
with brokers and dealers, the Sub-Adviser will attempt to obtain the
best combination of prompt execution of orders in an effective
manner and at the most favorable price. Consistent with this
obligation, when the execution and price offered by two or more
brokers or dealers are comparable Sub-Adviser may, in its
discretion, purchase and sell portfolio securities to and from
brokers and dealers who

<PAGE> 3

provide the Sub-Adviser with research advice and other
services. In no instance will portfolio securities be purchased from
or sold to the Adviser, Sub-Adviser or any affiliated person of
either the Trust, Adviser, or Sub-Adviser, except as may be
permitted under the 1940 Act;

f) will act upon instructions from Adviser not inconsistent with
the fiduciary duties hereunder;

h) will vote proxies received in connection with securities held
by the Fund consistent with its fiduciary duties hereunder.

<PAGE> 4

accordance with Schedule B hereto. From time to time, the Sub-Adviser may
agree to waive or reduce some or all of the compensation to which it is
entitled under this Agreement.

The Sub-Adviser represents and warrants that the Sub-Adviser shall not
enter into a subadvisory agreement with a new mutual fund specifically
designed for variable insurance products with total relationship assets
under management less than the Trust to provide substantially similar
investment management services subject to substantially similar mandate,
guidelines and restrictions at a fee rate which produces a fee less than
the fee produced by the rate set forth in schedule B for the level of
assets in the Trust. This provision shall not apply to any accounts of
the Sub-Adviser, its employees or members or any client that has a
personal or familial relationship with the Sub-Adviser or its employees or
members.

8. Standard of Care and Limitation of Liability. The Sub-Adviser shall
exercise its best judgment and shall act in good faith in rendering the
services pursuant to this Agreement.

4
<PAGE> 5

under any other statute, at common law or otherwise, arising out of the
Sub-Adviser's responsibilities as Sub-Adviser to the Fund and to the Trust
which (1) may be based upon any misfeasance, malfeasance, or nonfeasance
by the Sub-Adviser, any of its employees or representatives, or any
affiliate of or any person acting on behalf of the Sub-Adviser, (2) may be
based upon a failure to comply with Section 3 of this Agreement, or (3)
may be based upon any untrue statement or alleged untrue statement of a
material fact contained in the Prospectus, or any amendment or supplement
thereto, or the omission or alleged omission to state therein a material
fact known or which should have been known to the Sub-Adviser and was
required to be stated therein or necessary to make the statements therein
not misleading, if such a statement or omission was made in reliance upon
information furnished to the Adviser, the Trust, or any affiliated person
of the Adviser or Trust by the Sub-Adviser or any affiliated person of the
Sub-Adviser; provided, however, that in no case shall the indemnity in
favor of an Adviser Indemnified Person be deemed to protect such person
against any liability to which any such person would otherwise be subject
by reason of willful misfeasance, bad faith, gross negligence in the
performance of its duties, or by reason of its reckless disregard of its
obligations and duties under this Agreement. Notwithstanding the
foregoing in Sections 8 and 9 the Sub-Adviser may be liable to the Adviser
and the Trust for Acts of good faith under law and nothing contained
herein shall constitute a waiver or limitation of rights that the Adviser
or Trust may have under federal or state securities laws.

10. Duration and Termination. This Agreement will become effective as to a
Fund upon execution, or if later, the date that initial capital for such
Fund is first provided, to it and, unless sooner terminated as provided
herein, will continue in effect for two years from such date. Thereafter,
if not terminated as to a Fund, this Agreement will continue in effect as
to a Fund for successive periods of 12 months, provided that such
continuation is specifically approved at least annually by the Trust's
Board of Trustees or by vote of a majority of the outstanding voting
securities of such Fund, and in either event approved also by a majority
of the Trustees of the Trust who are not interested persons of the Trust,
or of the Adviser, or of the Sub-Adviser. Notwithstanding the foregoing,
this Agreement may be terminated as to a Fund at any time, without the
payment of any penalty, on sixty days' written notice by the Trust or
Adviser, or on ninety days' written notice by the Sub-Adviser. This
Agreement will immediately terminate in the event of its assignment. (As
used in this Agreement, the terms "majority of the outstanding voting
securities", "interested persons" and "assignment" have the same meanings
of such terms in the 1940 Act.)

<PAGE> 6

of this Agreement will be binding upon and shall inure to the benefit
of the parties hereto.

The name "JNL Series Trust" and "Trustees of JNL Series Trust" refer
respectively to the Trust created by, and the Trustees, as trustees but
not individually or personally, acting from time to time under, the
Declaration of Trust, to which reference is hereby made and a copy of
which is on file at the office of the Secretary of State of the
Commonwealth of Massachusetts and elsewhere as required by law, and to any
and all amendments thereto so filed or hereafter filed. The obligations of
the "JNL Series Trust" entered in the name or on behalf thereof by any of
the Trustees, representatives or agents are made not individually but only
in such capacities and are not binding upon any of the Trustees,
Shareholders or representatives of the Trust personally, but bind only the
assets of the Trust, and persons dealing with the Fund must look solely to
the assets of the Trust belonging to such Fund for the enforcement of any
claims against Trust.

14. Representations and Warranties of the Sub-Adviser.

The Sub-Adviser hereby represents that this Agreement does not violate
any existing agreements between the Sub-Adviser and any other party.

The Sub-Adviser further represents that is has reviewed the
post-effective amendment to the Registration Statement for the Trust filed
with the Securities and Exchange Commission that contains disclosure about
the Sub-Adviser, and represents and warrants that, with respect to the
disclosure about the Sub-Adviser or information relating, directly or
indirectly, to the Sub-Adviser, such Registration Statement contains, as
of the date hereof, no untrue statement of any material fact and does not
omit any statement of a material fact which was required to be stated
therein or necessary to make the statements contained therein not
misleading.

15. Proprietary Rights. Adviser and the Trust represent, and the Sub-Adviser
acknowledges, that Adviser, the Trust and/or an affiliated party of the
Adviser or the Trust are the sole owner(s) of the names "JNL Series
Trust", "Jackson National Financial Services, Inc.", "Jackson National
Life Insurance Company", "JNL" and certain logos associated with such
names (the "JNL Marks"). Sub-Adviser represents, and the Trust and the
Adviser acknowledge, that Sub-Adviser is the sole owner of the names
"Lazard Asset Management " and certain logos associated with such name
(the "Lazard Marks").

The use by the Sub-Adviser, or its affiliates of any JNL Marks or any
representations regarding Adviser, the Trust or any affiliates thereof in
any disclosure document, advertisement, sales literature or other
materials shall remain subject to the approval of Adviser; provided,
however, that (i) Adviser's review of any material pursuant to this
Agreement shall be conducted in a

<PAGE> 7

reasonable and timely manner; (ii) Adviser's approval under this
Agreement shall not be unreasonably withheld; and (iii) Adviser's
approval under this Agreement shall not be required with respect to any
use which has been previously approved by Adviser. Sub-Adviser
acknowledges and agrees that it will not use the names JNL/Lazard Small
Cap Value Series or JNL/Lazard Mid Cap Value Series on its own behalf, or
in relation to any investment company for which Sub-Adviser or its
successors and any subsidiary or affiliate thereof acts as investment
adviser, without the express written permission of the Trust or the
Adviser, respectively, except that Sub-Adviser may state that it acts as a
sub-advisor to the Trust and the Adviser.

The use by the Trust and the Adviser, or their affiliates, on their own
behalf or on behalf of the JNL/Lazard Small Cap Value Series or JNL/Lazard
Mid Cap Value Series, of any Lazard Marks or any representations regarding
Sub-Adviser in any disclosure document, advertisement, sales literature or
other materials promoting the JNL/Lazard Small Cap Value Series or
JNL/Lazard Mid Cap Value Series shall remain subject to the approval of
Sub-Adviser; provided, however, that (i) Sub-Adviser's review of any
material pursuant to this Agreement shall be conducted in a reasonable and
timely manner; (ii) Sub-Adviser's approval under this Agreement shall not
be unreasonably withheld; and (iii) Sub-Adviser's approval under this
Agreement shall not be required with respect to any use which has been
previously approved by Sub-Adviser, including, but not limited to, any use
which has been derived from disclosure contained in the Trust's or the
Adviser's most recent Prospectus and/or Statement of Additional
Information, or any supplements thereto.

The parties hereby acknowledge that the Trust has adopted the names
"JNL/Lazard Small Cap Value Series" and "JNL/Lazard Mid Cap Value Series"
through the permission of Sub-Adviser.

16. Applicable Law. This Agreement shall be construed in accordance with
applicable federal law and the laws of the State of Michigan.

IN WITNESS WHEREOF, the Adviser and the Sub-Adviser have caused this
Agreement to be executed as of this ____ day of _________________, 199_.

JACKSON NATIONAL FINANCIAL
SERVICES, INC.

By:
------------------------------

Name: Andrew B. Hopping
----------------------------

Title: President
---------------------------

<PAGE> 8

LAZARD ASSET MANAGEMENT

By:
------------------------
Name:
----------------------
Title:
---------------------

<PAGE> 9

SCHEDULE A
(Fund)

JNL/LAZARD SMALL CAP VALUE SERIES

JNL/LAZARD MID CAP VALUE SERIES

<PAGE> 10

SCHEDULE B
(Compensation)

JNL/LAZARD SMALL CAP VALUE SERIES

Average Daily Net Assets Annual Rate
-----------------------------------------------------

0 to $50 Million: .625%
$50 Million to $150 Million: .575%
$150 Million to $300 Million: .525%
Amounts over $300 Million: .475%

JNL/LAZARD MID CAP VALUE SERIES

Average Daily Net Assets Annual Rate
-----------------------------------------------------

0 to $50 Million: .575%
$50 Million to $150 Million: .525%
$150 Million to $300 Million: .475%
Amounts over $300 Million: .45%

<PAGE> 1

EX-99.B5-t

INVESTMENT SUB-ADVISORY AGREEMENT

This AGREEMENT is effective this ____ day of _____________, 1997, by and
between JACKSON NATIONAL FINANCIAL SERVICES, INC., a Delaware Corporation and
registered investment adviser ("Adviser"), and PACIFIC INVESTMENT MANAGEMENT
COMPANY, a Delaware general partnership and registered investment adviser
("Sub-Adviser").

WHEREAS, the Trust is authorized to issue separate series, each series
having its own investment objective or objectives, policies and limitations;

WHEREAS, Adviser desires to retain Sub-Adviser as Adviser's agent to
furnish investment advisory services to the series of the Trust listed on
Schedule A hereto ("Fund").

NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:

In the event the Adviser designates one or more series other than the
Fund with respect to which the Adviser wishes to retain the Sub-Adviser to
render investment advisory services hereunder, it shall notify the
Sub-Adviser in writing. If the Sub-Adviser is willing to render such
services, it shall notify the Adviser in writing, whereupon such series
shall become a Fund hereunder, and be subject to this Agreement.

2. Delivery of Documents. Adviser has or will furnish Sub-Adviser with
copies properly certified or authenticated of each of the following:

b) the Trust's By-Laws and amendments thereto;

c) resolutions of the Trust's Board of Trustees authorizing the
appointment of Sub-Adviser and approving this Agreement;

<PAGE> 2

d) the Trust's Notification of Registration on Form N-8A under
the 1940 Act as filed with the Securities and Exchange Commission
(the "SEC") and all amendments thereto;

f) the Trust's most recent prospectus and Statement of
Additional Information (collectively called the "Prospectus").

Adviser will furnish the Sub-Adviser from time to time with copies
of all amendments of or supplements to the foregoing.

The Sub-Adviser further agrees that it:

a) will use the same skill and care in providing such services
as it uses in providing services to fiduciary accounts for which it
has investment responsibilities;

c) will place orders pursuant to its investment determinations
for the Fund either directly with the issuer or with any broker or
dealer, including an affiliated broker-dealer which is a member of a
national securities exchange as permitted in accordance with
guidelines established by the Board of Trustees. In placing orders
with brokers and dealers, the Sub-Adviser will attempt to obtain the
best combination of prompt execution of orders in an effective
manner and at the most favorable price. Consistent with this
obligation, when the execution and price offered by two or more
brokers or dealers are comparable Sub-Adviser may, in its
discretion, purchase and sell portfolio securities to and from
brokers and dealers who

<PAGE> 3

provide the Sub-Adviser with research advice and other services. In
no instance will portfolio securities be purchased from or sold to
the Adviser, Sub-Adviser or any affiliated person of either the
Trust, Adviser, or Sub-Adviser, except as may be permitted under the
1940 Act;

f) will act upon instructions from Adviser not inconsistent with
the fiduciary duties hereunder;

h) will vote proxies received in connection with securities held
by the Fund consistent with its fiduciary duties hereunder.

4. Aggregation of Orders. Provided the investment objectives of the Fund
are adhered to, the Adviser agrees that the Sub-Adviser may aggregate
sales and purchase orders of securities held in the Fund with similar
orders being made simultaneously for other accounts managed by the
Sub-Adviser or with accounts of the affiliates of the Sub-Adviser, if in
the Sub-Adviser's reasonable judgment such aggregation shall result in an
overall economic benefit to the Fund, taking into consideration the
advantageous selling or purchase price, brokerage commission and other
expenses. The Adviser acknowledges that the determination of such
economic benefit to the Fund by the Sub-Adviser is subjective and
represents the Sub-Adviser's evaluation that the Fund is benefited by
relatively better purchase or sales prices, lower commission expenses and
beneficial timing of transactions or a combination of these and other
factors.

5. Futures and Options. Provided the investment objectives of the Fund are
adhered to, the Sub-Adviser's investment authority shall include the
authority to purchase, sell, cover open positions, and generally to deal
in financial futures contracts and options thereon.

<PAGE> 4

The Adviser will (i) open and maintain brokerage accounts for financial
futures and options (such accounts hereinafter referred to as "brokerage
accounts") on behalf of and in the name of the Fund and (ii) execute for
and on behalf of the Fund, standard customer agreements with a broker or
brokers. The Sub-Adviser may, using such of the securities and other
property in the Fund as the Sub-Adviser deems necessary or desirable,
direct the Adviser to deposit on behalf of the Fund, original and
maintenance brokerage deposits and otherwise direct payments of cash, cash
equivalents and securities and other property into such brokerage accounts
and to such brokers as the Sub-Adviser deems desirable or appropriate.

Upon the solicitation of the Adviser, the Sub-Adviser delivered to the
Adviser a copy of its Disclosure Document, as amended, dated July 3, 1997,
on file with the Commodity Futures Trading Commission. The Adviser hereby
acknowledges receipt of such copy.

6. Expenses. During the term of this Agreement, Sub-Adviser will pay all
expenses incurred by it in connection with its activities under this
Agreement other than the cost of securities (including brokerage
commission, if any) purchased for the Fund.

7. Books and Records. In compliance with the requirements of Rule 31a-3
under the 1940 Act, the Sub-Adviser hereby agrees that all records which
it maintains for the Trust are the property of the Trust and further
agrees to surrender promptly to the Trust any of such records upon the
Trust's request. Sub-Adviser further agrees to preserve for the periods
prescribed by Rule 31a-2 under the 1940 Act the records required to be
maintained by Rule 31a-1 under the 1940 Act.

8. Compensation. For the services provided and the expenses assumed
pursuant to this Agreement, Adviser will pay the Sub-Adviser, and the
Sub-Adviser agrees to accept as full compensation therefor, a sub-advisory
fee, accrued daily and payable monthly on the average daily net assets in
the Fund or Funds excluding the net assets representing capital
contributed by Jackson National Life Insurance Company in accordance with
Schedule B hereto. From time to time, the Sub-Adviser may agree to waive
or reduce some or all of the compensation to which it is entitled under
this Agreement.

9. Services to Others. Adviser understands, and has advised the Trust's
Board of Trustees, that Sub-Adviser now acts, or may in the future act, as
an investment adviser to fiduciary and other managed accounts, and as
investment adviser or sub-investment adviser to other investment
companies. Adviser has no objection to Sub-Adviser acting in such
capacities, provided that whenever the Fund and one or more other
investment advisory clients of Sub-Adviser have available funds for
investment, investments selected for each will be allocated in a manner
believed by Sub-Adviser to be equitable to each. Adviser recognizes, and
has advised Trust's Board of Trustees, that in some cases this procedure
may adversely affect the size of the position that the participating Fund
may obtain in

<PAGE> 5

a particular security. In addition, Adviser understands, and has
advised Trust's Board of Trustees, that the persons employed by
Sub-Adviser to assist in Sub-Adviser's duties under this Agreement will
not devote their full time to such service and nothing contained in this
Agreement will be deemed to limit or restrict the right of Sub-Adviser or
any of its affiliates to engage in and devote time and attention to other
businesses or to render services of whatever kind or nature.

10. Standard of Care and Limitation of Liability. The Sub-Adviser shall
exercise its best judgment and shall act in good faith in rendering the
services pursuant to this Agreement.

11. Indemnification. Notwithstanding Section 10 of this Agreement, the
Sub-Adviser agrees to indemnify and hold harmless the Adviser, any
affiliated person of the Adviser, and each person, if any, who, within the
meaning of Section 15 of the 1933 Act, controls ("controlling person") the
Adviser (all of such persons being referred to as "Adviser Indemnified
Persons") against any and all losses, claims, damages, liabilities, or
litigation (including reasonable legal and other expenses) to which an
Adviser Indemnified Person may become subject under the 1933 Act, 1940
Act, the Investment Advisers Act of 1940, the Internal Revenue Code, under
any other statute, at common law or otherwise, arising out of the
Sub-Adviser's responsibilities as Sub-Adviser to the Fund and to the Trust
which is based upon the willful misfeasance, bad faith or negligence or
breach of this Agreement by Sub-Adviser or its agents, or may be based
upon any untrue statement of a material fact provided in writing by the
Sub-Adviser specifically for inclusion in the Prospectus, or any amendment
or supplement thereto, or the omission to state therein a material fact
known or which should have been known to the Sub-Adviser and was required
to be stated therein or necessary to make the statements therein not
misleading; provided, however, that in no case shall the indemnity in
favor of an Adviser Indemnified Person be deemed to protect such person
against any liability to which any such person would otherwise be subject
by reason of willful misfeasance, bad faith, negligence in the performance
of its duties, or by reason of its breach of this Agreement.

12. Duration and Termination. This Agreement will become effective as to a
Fund upon execution or, if later, on the date that initial capital for
such Fund is first provided to it and, unless sooner terminated as
provided herein, will continue in effect for two years from such date.
Thereafter, if not terminated as to a Fund, this Agreement will continue
in effect as to a Fund for successive periods of 12 months, provided that
such continuation is specifically approved at least annually by the
Trust's Board of Trustees or by vote of a majority of the outstanding
voting securities of such Fund, and in either event approved also by a
majority of the Trustees of the Trust who are not interested persons of
the Trust, or of the Adviser, or of the Sub-Adviser. Notwithstanding the
foregoing, this Agreement may be terminated as to a Fund at any time,
without the payment of any penalty,

<PAGE> 6

on sixty days' written notice by the Trust or Adviser, or on sixty
days' written notice by the Sub-Adviser. This Agreement will immediately
terminate in the event of its assignment. (As used in this Agreement, the
terms "majority of the outstanding voting securities", "interested
persons" and "assignment" have the same meanings of such terms in the 1940
Act.)

13. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally; but only by an
instrument in writing signed by the party against which enforcement of the
change, waiver, discharge or termination is sought.

14. Notice. Any notice under this Agreement shall be in writing, addressed
and delivered or mailed, postage prepaid, to the other party at such
address as such other party may designate for the receipt of such notice.

15. Proprietary Rights. Sub-Adviser represents, and the Trust and the
Adviser acknowledge, that Sub-Adviser is the sole owner of the names
"Pacific Investment Management Company" and "PIMCO" and certain logos
associated with such names (the "PIMCO Marks").

The use by the Trust and the Adviser, or their affiliates, on their own
behalf or on behalf of the JNL/PIMCO Total Return Bond Series, of any
PIMCO Marks or any representations regarding Sub-Adviser in any disclosure
document, advertisement, sales literature or other materials promoting the
JNL/PIMCO Total Return Bond Series shall remain subject to the approval of
Sub-Adviser; provided, however, that (i) Sub-Adviser's review of any
material pursuant to this Agreement shall be conducted in a reasonable and
timely manner; (ii) Sub-Adviser's approval under this Agreement shall not
be unreasonably withheld; and (iii) Sub-Adviser's approval under this
Agreement shall not be required with respect to any use which has been
previously approved by Sub-Adviser, including, but not limited to, any use
which has been derived from disclosure contained in the Trust's or the
Adviser's most recent Prospectus and/or Statement of Additional
Information, or any supplements thereto, regarding any PIMCO Marks, PIMCO,
or the JNL/PIMCO Total Return Bond Series, which has been previously
approved by Sub-Adviser.

Sub-Adviser acknowledges and agrees that it will not use the name the
JNL/PIMCO Total Return Bond Series on its own behalf, or in relation to
any investment company for which Sub-Adviser or its successors and any
subsidiary or affiliate thereof acts as investment adviser, without the
express written permission of the Trust or the Adviser, respectively,
except that Sub-Adviser may state that it acts as a sub-advisor to the
Trust and the Adviser.

The parties hereby acknowledge that the Trust has adopted the name the
"JNL/PIMCO Total Return Bond Series" through the permission of
Sub-Adviser.

16. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or

6
<PAGE> 7

otherwise affect their construction or effect. If any provision of this
Agreement is held or made invalid by a court decision, statute, rule or
otherwise, the remainder of this Agreement will be binding upon and shall
inure to the benefit of the parties hereto.

The name "JNL Series Trust" and "Trustees of JNL Series Trust" refer
respectively to the Trust created by, and the Trustees, as trustees but
not individually or personally, acting from time to time under, the
Declaration of Trust, to which reference is hereby made and a copy of
which is on file at the office of the Secretary of State of the
Commonwealth of Massachusetts and elsewhere as required by law, and to
any and all amendments thereto so filed or hereafter filed. The
obligations of the "JNL Series Trust" entered in the name or on behalf
thereof by any of the Trustees, representatives or agents are made not
individually but only in such capacities and are not binding upon any of
the Trustees, Shareholders or representatives of the Trust personally,
but bind only the assets of the Trust, and persons dealing with the Fund
must look solely to the assets of the Trust belonging to such Fund for
the enforcement of any claims against Trust.

17. Representations and Warranties of the Sub-Adviser.

The Sub-Adviser hereby represents that this Agreement does not violate
any existing agreements between the Sub-Adviser and any other party.

18. Applicable Law. This Agreement shall be construed in accordance with
applicable federal law and the laws of the State of Michigan.

<PAGE> 8

IN WITNESS WHEREOF, the Adviser and the Sub-Adviser have caused this
Agreement to be executed as of this ____ day of _________________, 199_.

JACKSON NATIONAL FINANCIAL
SERVICES, INC.

By:
--------------------------

Name:
-----------------------

Title: President
----------------------

PACIFIC INVESTMENT MANAGEMENT COMPANY

By: PIMCO Management, Inc., a general
partner

By:
-------------------------

Name:
-----------------------

Title:
-----------------------

<PAGE> 9

SCHEDULE A
(Fund)

JNL/PIMCO TOTAL RETURN BOND SERIES

<PAGE> 10

SCHEDULE B
(Compensation)

JNL/PIMCO TOTAL RETURN BOND SERIES

Average Daily Net Assets Annual Rate
------------------------------------------------

Amounts over $0: .25%

<PAGE> 1
EX-99.B5-u

AMENDMENT TO INVESTMENT SUB-ADVISORY AGREEMENT
BETWEEN JACKSON NATIONAL FINANCIAL SERVICES, INC.
AND SALOMON BROTHERS ASSET MANAGEMENT INC

AMENDMENT effective as of January 1, 1998, by and between JACKSON NATIONAL
FINANCIAL SERVICES, INC., a Delaware corporation and registered investment
adviser ("Adviser"), and SALOMON BROTHERS ASSET MANAGEMENT INC, a Delaware
corporation and registered investment adviser ("Sub-Adviser").

WHEREAS, Adviser and Sub-Adviser entered into an Investment Sub-Advisory
Agreement executed as of February 8, 1995 ("Agreement"), whereby Adviser
retained Sub-Adviser to provide certain sub-investment advisory services to the
investment portfolios of the JNL Series Trust; and

WHEREAS, effective January 1, 1998, the Adviser desires to retain
Sub-Adviser to provide and Sub-Adviser agrees to provide sub-investment
advisory services to additional investment portfolios of the JNL Series Trust.

NOW THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereby agree to amend the Agreement as follows:

1. Schedule A to the Agreement shall be amended and replaced with
Schedule A dated January 1, 1998, attached hereto.

2. Schedule B to the Agreement shall be amended and replaced with
Schedule B dated January 1, 1998, attached hereto.

IN WITNESS WHEREOF, the Adviser and the Sub-Adviser have caused this
Amendment to be executed as of this ____ day of ___________________, 1997.

JACKSON NATIONAL FINANCIAL SALOMON BROTHERS ASSET
SERVICES, INC. MANAGEMENT INC

By: By:
---------------------- ------------------

Name: Andrew B. Hopping Name:
-------------------- -----------------

Title: President Title:
------------------- ----------------

<PAGE> 2

SCHEDULE A
DATED JANUARY 1, 1998
TO
INVESTMENT SUB-ADVISORY AGREEMENT
BETWEEN
JACKSON NATIONAL FINANCIAL SERVICES, INC.
AND
SALOMON BROTHERS ASSET MANAGEMENT INC

Salomon Brothers/JNL U. S. Government & Quality Bond Series
Salomon Brothers/JNL Global Bond Series
Salomon Brothers/JNL High Yield Bond Series
Salomon Brothers/JNL Balanced Series

<PAGE> 3

SCHEDULE B
DATED JANUARY 1, 1998
TO
INVESTMENT SUB-ADVISORY AGREEMENT
BETWEEN
JACKSON NATIONAL FINANCIAL SERVICES, INC.
AND
SALOMON BROTHERS ASSET MANAGEMENT INC

SALOMON BROTHERS/JNL U. S. GOVERNMENT & QUALITY BOND SERIES

Average Daily Net Assets Annual Rate
----------------------------------------------------------

0 to $50 Million: .225%
$50 Million to $150 Million: .225%
$150 Million to $300 Million: .175%
$300 Million to $500 Million: .150%
Amounts over $500 Million: .100%

SALOMON BROTHERS/JNL GLOBAL BOND SERIES

Average Daily Net Assets Annual Rate
----------------------------------------------------------

0 to $50 Million: .375%
$50 Million to $150 Million: .350%
$150 Million to $300 Million: .300%
$300 Million to $500 Million: .300%
Amounts over $500 Million: .250%

SALOMON BROTHERS/JNL HIGH YIELD BOND SERIES

Average Daily Net Assets Annual Rate
----------------------------------------------------------

0 to $50 Million: .35%
$50 Million to $100 Million: .30%
Amounts over $100 Million: .25%

SALOMON BROTHERS/JNL BALANCED SERIES

Average Daily Net Assets Annual Rate
----------------------------------------------------------

0 to $50 Million: .35%
$50 Million to $100 Million: .30%
Amounts over $100 Million: .25%

<PAGE> 1
EX-99.B6-c

AMENDMENT TO
AMENDED FUND PARTICIPATION AGREEMENT
BETWEEN
JNL SERIES TRUST,
JACKSON NATIONAL LIFE INSURANCE COMPANY AND
JACKSON NATIONAL SEPARATE ACCOUNT I

This AMENDMENT, effective the 1st day of May, 1997, is by and between JNL
Series Trust (the "Trust"), Jackson National Life Insurance Company (the
"Company") and Jackson National Separate Account I (the "Separate Account").

WHEREAS, the Trust, the Company and the Separate Account entered into an
Amended Fund Participation Agreement dated September 19, 1995 (the
"Agreement"), whereby the Trust agreed to make its shares available to serve as
underlying investment media for the various portfolios of the Separate Account
of the Company; and

WHEREAS, the Trust has changed the names of three existing Series and
desires to make such Series available to serve as underlying investment media
for portfolios of the Separate Account of the Company in accordance with the
terms of the Agreement; and

WHEREAS, the Separate Account desires to purchase shares of such Series of
the Trust in accordance with the terms of the Agreement.

NOW THEREFORE, in consideration of the mutual covenants contained herein
and for other good and valuable consideration, the Trust, the Separate Account
and the Company agree to amend the Agreement as follows:

1. The Trust agrees to continue to make available its shares of the
JNL/Phoenix Investment Counsel Balanced Series, JNL/Phoenix Investment Counsel
Growth Series and PPM America/JNL Value Equity Series, the names of which
Series shall be changed to the PPM America/JNL Balanced Series, JNL/Putnam
Growth Series and JNL/Putnam Value Equity Series, respectively, to serve as
underlying investment media for the corresponding portfolios of the Separate
Account in accordance with the terms of the Agreement.

2. Exhibit A of the Agreement shall be replaced in its entirety with
Exhibit A dated May 1, 1997, attached hereto.

3. The Trust, the Company and the Separate Account agree to abide and be
bound by all of the terms and conditions set forth in the Agreement.

<PAGE> 2

IN WITNESS WHEREOF, the Trust, the Company and the Separate Account have
caused this Amendment to be executed by their duly authorized officers as of
the 18th day of April, 1997.

Attest: JNL SERIES TRUST

/s/ Amy D. Eisenbeis By: /s/ Larry C. Jordan
-------------------------- -------------------
Larry C. Jordan
Vice President & Asst. Secretary

JACKSON NATIONAL LIFE
Attest: INSURANCE COMPANY

/s/ Amy D. Eisenbeis By: /s/ John A. Knutson
-------------------------- -------------------
John A. Knutson
Chief Operating Officer

JACKSON NATIONAL
SEPARATE ACCOUNT I
JACKSON NATIONAL LIFE
Attest: INSURANCE COMPANY

/s/ Amy D. Eisenbeis By: /s/ John A. Knutson
-------------------------- -------------------
John A. Knutson
Chief Operating Officer

<PAGE> 3

EXHIBIT A
DATED MAY 1, 1997

JNL SERIES TRUST

JNL Aggressive Growth Series
JNL Capital Growth Series
JNL Global Equities Series
JNL/Alger Growth Series
JNL/Eagle Core Equity Series
JNL/Eagle SmallCap Equity Series
JNL/Putnam Growth Series
JNL/Putnam Value Equity Series
PPM America/JNL Balanced Series
PPM America/JNL High Yield Bond Series
PPM America/JNL Money Market Series
Salomon Brothers/JNL Global Bond Series
Salomon Brothers/JNL U.S. Government & Quality Bond Series
T. Rowe Price/JNL Established Growth Series
T. Rowe Price/JNL International Equity Investment Series
T. Rowe Price/JNL Mid-Cap Growth Series

<PAGE> 1
Ex-99.B6-d

FUND PARTICIPATION AGREEMENT

THIS FUND PARTICIPATION AGREEMENT, made on this the ____day of _________,
1997 among JNL Series Trust (the "Trust"), a business trust organized under the
laws of the Commonwealth of Massachusetts, and Jackson National Life Insurance
Company (the "Company"), a life insurance company organized under the laws of
the State of Michigan, on behalf of itself and on behalf of Jackson National
Separate Account - III ("Separate Account"), a separate account of the Company
existing pursuant to the Michigan Insurance Code.

WITNESSETH:

WHEREAS, the Trust is an open-end management investment company which is
divided into various investment series ("Series"), each Series being subject to
separate investment objectives and restrictions. (See Exhibit A for available
Series); and

WHEREAS, the Trust's shares may be offered to variable annuity and
variable life insurance separate accounts of insurance companies, which may or
may not be affiliated persons of each other ("Participating Insurers"),
pursuant to fund participation agreements substantially identical to this
Agreement; and

WHEREAS, the Company, by resolution, has established the Separate Account
on its books of account for the purpose of funding certain variable contracts
("Contracts"); and

WHEREAS, the Separate Account, registered with the Securities and
Exchange Commission as a unit investment trust under the Investment Company Act
of 1940 ("1940 Act"), is divided into various "Portfolios" under which the
income, gains and losses, whether or not realized, from assets allocated to
each such Portfolio are, in accordance with the Contracts, credited to or
charged against such Portfolio without regard to any other income, gains or
losses of other Portfolios or separate accounts or of the Company; and

WHEREAS, the Separate Account desires to purchase shares of the Trust; and

WHEREAS, the Trust agrees to make its shares available to serve as
underlying investment media for the various Portfolios of the Separate Account
with each Series of the Trust serving as the underlying investment medium for
the corresponding Portfolio of the Separate Account; and

<PAGE> 2

WHEREAS, the Trust has undertaken that its Board of Trustees ("Board")
will monitor the Trust for the existence of any material irreconcilable
conflicts that may arise between the contract owners of separate accounts of
insurance companies that invest in the Trust for the purpose of identifying and
remedying any such conflict;

NOW, THEREFORE, in consideration of the foregoing and of mutual covenants
and conditions set forth herein and for other good and valuable consideration,
the Trust and the Company (on behalf of itself and the Separate Account) hereby
agree as follows:

ARTICLE I

SALE OF TRUST SHARES

1.1 The Contracts funded by the Separate Account will provide for the
allocation of net amounts among the various Portfolios of the Separate Account
for investment in the shares of the particular Series of the Trust underlying
each Portfolio. The selection of a particular Portfolio is to be made (and
such selection may be changed) in accordance with the terms of the Contract.

1.2 Trust shares to be made available to the respective Portfolios of the
Separate Account shall be sold by each of the respective Series of the Trust
and purchased by the Company for that Portfolio at the net asset value next
computed after receipt of each order, as established in accordance with the
provisions of the then current prospectus of the Trust. Shares of a particular
Series of the Trust shall be ordered in such quantities and at such times as
determined by the Company to be necessary to meet the requirements of those
Contracts having amounts allocated to the Portfolio for which the Trust Series
shares serve as the underlying investment medium. Orders and payments for
shares purchased will be sent promptly to the Trust and will be made payable in
the manner established from time to time by the Trust for the receipt of such
payments. Notwithstanding the foregoing, the Board of the Trust may refuse to
sell shares of any Series to any person or suspend or terminate the offering of
shares of any Series if such action is required by law or by regulatory
authority having jurisdiction over the Trust or is, in the sole discretion of
the Board acting in good faith and in light of its fiduciary duties under
federal and any applicable state laws, necessary in the best interests of the
shareholders of such Series.

1.3 The Trust will redeem the shares of the various Series when requested
by the Company on behalf of the corresponding Portfolio of the Separate Account
at the net asset value next computed after receipt of each request for
redemption, as established in accordance with the provisions of the then
current prospectus of the Trust. The Trust will make payment in the manner
established from time to time by the Trust for the receipt of such redemption
requests, but in no event shall payment be delayed for a greater period than is
permitted by the 1940 Act.

1.35 For purposes of paragraphs 1.2 and 1.3 hereinabove, the Company
shall be the agent of the Trust for the receipt of (1) orders to purchase, and
(2) requests to redeem, shares of the

<PAGE> 3

Series of the Trust on behalf of the Separate Account, and receipt of such
orders and requests by such agent shall constitute receipt thereof by the
Trust, provided that the Trust receives actual notice of such order or request
by 12:00 noon (at the Trust's offices) on the next following Business Day.
"Business Day" shall mean any day on which the New York Stock Exchange is open
for trading and on which the Trust calculates its net asset value pursuant to
the rules of the Securities and Exchange Commission.

1.4 Transfer of the Trust's shares will be by book entry only. No stock
certificates will be issued to the Separate Account. Shares ordered from a
particular Series of the Trust will be recorded in an appropriate title for the
corresponding Portfolio of the Separate Account.

1.5 The Trust shall furnish same day notice to the Company of any
dividend or distribution payable on its shares. All of such dividends and
distributions as are payable on each of the Series shares in the title for the
corresponding Portfolio of the Separate Account shall be automatically
reinvested in additional shares of that Series of the Trust. The Trust shall
notify the Company of the number of shares so issued.

1.6 The Trust shall make the net asset value per share of each Series
available to the Company on a daily basis as soon as reasonably practical after
the net asset value per share is calculated and shall use its best efforts to
make such net asset value per share available by 6:00 p.m. Eastern Time.

ARTICLE II

SALES MATERIAL AND INFORMATION

2.1 The Company shall furnish to the Trust each piece of sales literature
or other promotional material in which the Trust or its investment adviser is
named at least ten business days prior to its use. No such material shall be
used if the Trust objects to such use within five business days after receipt
of such material.

2.2 The Company shall not give any information or make any representations
or statements on behalf of the Trust or concerning the Trust in connection with
the sale of the Contracts other than the information or representations
contained in the registration statement or prospectus for the Trust shares, as
such documents may be amended or supplemented from time to time, or in reports
or proxy statements for the Trust, or in sales literature or other promotional
material approved by the Trust, except with the permission of the Trust.

2.3 The Trust shall furnish to the Company each piece of sales literature
or other promotional material in which the Company or the Separate Account is
named at least ten business days prior to its use. No such material shall be
used if the Company objects to such use within five business days after receipt
of such material.

<PAGE> 4

2.4 The Trust shall not give any information or make any representations
on behalf of the Company or concerning the Company, the Separate Account, or
the Contracts other than the information or representations contained in the
registration statement or prospectus for the Contracts, as such registration
statement and prospectus may be amended or supplemented from time to time, or
in published reports for the Separate Account which are in the public domain
or approved by the Company for distribution to Contract owners, or in sales
literature or other promotional material approved by the Company, except with
the permission of the Company.

2.5 The Trust will provide to the Company at least one complete copy of
all registration statements, prospectuses, statements of additional
information, reports, proxy statements, sales literature and other
promotional materials, applications for exemptions, requests for no-action
letters, and all amendments to any of the above that relate to the Trust or
its shares, contemporaneously with the filing of such document with the
Securities and Exchange Commission or other regulatory authorities.

2.6 The Company will provide to the Trust at least one complete copy of
all registration statements, prospectuses, statements of additional
information, reports, solicitations for voting instructions, sales literature
and other promotional materials, applications for exemptions, requests for
no-action letters, and all amendments to any of the above, that relate to the
Contracts or the Separate Account, contemporaneously with the filing of such
documents with the Securities and Exchange Commission or other regulatory
authorities.

2.7 For purposes of this Article II, the phrase "sales literature or
other promotional material" includes, but is not limited to, advertisements
(such as material published, or designed for use in, a newspaper, magazine,
or other periodical, radio, television, telephone or tape recording,
videotape display, signs or billboards, motion pictures, or other public
media), sales literature (i.e., any written communication distributed or made
generally available to customers or the public, including brochures,
circulars, research reports, market letters, form letters, seminar texts,
reprints or excerpts of any other advertisement, sales literature, or
published article), educational or training materials or other communications
distributed or made generally available to some or all agents or employees,
and registration statements, prospectuses, statements of additional
information, shareholder reports, and proxy materials.

ARTICLE III

EXPENSES

<PAGE> 5

filing of proxy materials and reports; setting the prospectus in type;
setting in type the proxy materials and reports to shareholders; the
preparation of all statements and notices required of the Trust by any
federal or state law; and all taxes on the issuance or transfer of the
Trust's shares.

3.2 The Trust's prospectus shall state that the statement of additional
information for the Trust is available from the Trust, and the Trust, at its
expense, shall provide such statement free of charge to the Company and to
any Contract owner or prospective Contract owner who requests such statement.

3.3 The Trust, at its expense, shall provide the Company with copies of
its proxy material, reports to stockholders and other communications to
stockholders in such quantity as the Company shall reasonably require for
distributing to Contract owners.

ARTICLE IV

VOTING

4.1 The Company shall provide pass-through voting privileges to all
Contract owners so long as the Securities and Exchange Commission continues
to interpret the 1940 Act to require pass-through voting privileges for
variable contract owners. The Company shall be responsible for assuring that
the Separate Account calculates voting privileges in a manner consistent with
standards provided by the Trust, which standards will also be provided to
other Participating Insurers. To the extent required by law, the Company
will vote shares for which it has not received voting instructions as well as
shares attributable to the Company in the same proportion as it votes shares
for which it has received instructions.

4.2 The Trust will comply with all provisions of the 1940 Act requiring
voting by shareholders and, in particular, the Trust will either provide for
annual meetings or comply with Section 16(c) of the 1940 Act (although the
Trust is not one of the trusts described in Section 16(c) of that Act) as
well as with Sections 16(a) and, if and when applicable, 16(b). Further, the
Trust will act in accordance with the Securities and Exchange Commission's
interpretation of the requirements of Section 16(a) with respect to periodic
elections of directors and with whatever rules the Commission may promulgate
with respect thereto.

ARTICLE V

POTENTIAL CONFLICTS

<PAGE> 6

of which it is or becomes aware between any of its Contract owners, or between
any of its Contract owners and contract owners of other Participating Insurers.
The Company will be responsible for assisting the Board in carrying out its
responsibilities to identify and resolve material conflicts by providing the
Board with all information available to it that is reasonably necessary for the
Board to consider any issues raised, including information as to a decision by
the Company to disregard voting instructions of its Contract owners.

5.2 The Board's determination of the existence of any irreconcilable
material conflict and its implications shall be made known promptly by it to
the Company and other Participating Insurers. An irreconcilable material
conflict may arise for a variety of reasons, including: (a) an action by any
state insurance regulatory authority; (b) a change in applicable federal or
state insurance tax, or securities laws or regulations, or a public ruling,
private letter ruling, or any similar action by insurance, tax, or securities
regulatory authorities; (c) an administrative or judicial decision in any
relevant proceeding; (d) the manner in which the investments of any Series
are being managed; (e) a difference in voting instructions given by variable
annuity contract owners and variable life insurance contract owners or by
contract owners of different Participating Insurers; or (f) a decision by a
Participating Insurer to disregard the voting instructions of its variable
contract owners.

5.3 If it is determined by a majority of the Board or a majority of its
disinterested Trustees that a material irreconcilable conflict exists that
affects the interests of the Contract owners, the Company shall, to the
extent reasonably practicable (as determined by a majority of the Trust's
disinterested Trustees), take whatever steps are necessary to remedy or
eliminate the irreconcilable material conflict, which steps could include:
(a) withdrawing the assets allocable to the Separate Account from the Trust
or any Series and reinvesting such assets in a different investment medium,
including another Series of the Trust, or participating in the submission of
the question of whether such segregation should be implemented to a vote of
all affected contract owners and, as appropriate, segregating the assets of
any particular group (e.g. annuity contract owners or life insurance contract
owners) that votes in favor of such segregation, or offering to the affected
contract owners the option of making such a change; and (b) establishing a
new registered management investment company or managed separate account.
The Company shall take such steps at its expense if the conflict affects
solely the interests of the owners of the Company's Contracts, but shall bear
only its equitable portion of any such expense if the conflict also affects
the interests of the contract owners of one or more Participating Insurers
other than the Company, provided: that this sentence shall not be construed
to require the Trust to bear any portion of such expense. If a material
irreconcilable conflict arises because of the Company's decision to disregard
Contract owner voting instructions and that decision represents a minority
position or would preclude a majority vote, the Company may be required, at
Trust's election, to withdraw the investment of the Separate Account in the
Trust, and no charge or penalty will be imposed as a result of such a
withdrawal. The Company agrees to take such remedial action as may be
required under this paragraph 5.3 with a view only to the interests of its
Contract owners. For purposes of this paragraph 5.3, a majority of the
disinterested members of the Trust's Board

<PAGE> 7

shall determine whether or not any proposed action adequately remedies any
irreconcilable conflict, but in no event will Trust be required to establish a
new funding medium for any variable contract. The Company shall not be
required by this paragraph 5.3 to establish a new funding medium if any offer
to do so has been declined by vote of a majority of contract owners materially
and adversely affected by the irreconcilable material conflict.

Notwithstanding the foregoing, if the Company is required under this
paragraph 5.3 to withdraw the investment of the Separate Account in the
Trust, such withdrawal may take place within six (6) months after the Trust
gives written notice that this paragraph 5.3 is being implemented, provided:
That the Trust may require that such withdrawal must take place within a
shorter period of time after such notice if a majority of the disinterested
members of the Trust's Board determines that such shorter period is necessary
to avoid irreparable harm to its shareholders; and further provided: That
until the end of such six month (or shorter) period the Trust shall continue
to accept and implement orders by the Company for the purchase and redemption
of Trust Shares. The Company will not be required to withdraw investments in
the Separate Account of the Trust until all regulatory approval is obtained.

5.4 In discharging its responsibilities under this Article V, the
Company will cooperate and coordinate, to the extent necessary, with the
Board and with other Participating Insurers.

5.5 If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or
a subsequent Rule 6e-3 is adopted, to provide exemptive relief from any
provision of the Act or the rules promulgated thereunder with respect to
mixed or shared funding on terms and conditions materially different from
those contained in the Trust's mixed and shared funding order then the Trust
or the Participating Insurers, as appropriate, shall take such steps as may
be necessary to comply with Rules 6e-2 and 6e-3(T), and related Rules as
amended, to the extent such rules are applicable.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

6.1 The Company represents and warrants that the Contracts are or will be
registered under the Securities Act of 1933 ("1933 Act"), that the Contracts
will be issued and sold in compliance in all material respects with all
applicable federal and state laws, and that the sale of the Contracts shall
comply in all material respects with state insurance suitability requirements.
The Company further represents and warrants that it is an insurance company
duly organized and in good standing under applicable laws and that it has
legally and validly established the Separate Account prior to any issuance or
sale thereof as a segregated asset account under the Michigan Insurance Code
and has registered or, prior to any issuance or sale of the Contracts, will
register

<PAGE> 8

the Separate Account as a unit investment trust in accordance with the
provisions of the 1940 Act to serve as a segregated investment account for the
Contracts.

6.2 The Trust represents and warrants that Trust shares sold pursuant to
this Agreement shall be registered under the 1933 Act, shall be duly authorized
for issuance and sold in compliance with the laws of the State of Massachusetts
and all applicable federal and state securities laws and that the Trust is and
shall remain registered under the 1940 Act. The Trust shall amend the
Registration Statement for its shares under the 1933 Act and the 1940 Act from
time to time as required in order to effect the continuous offering of its
shares. The Trust represents that it is lawfully organized and validly
existing under the laws of the State of Massachusetts and that it does and will
comply in all material respects with the 1940 Act.

6.3 The Trust represents and warrants that it intends to qualify each of
its Series as a Regulated Investment Company under Subchapter M of the Internal
Revenue Code, as amended, (the "Code") and that it will make every effort to
maintain such qualification (under Subchapter M or any successor or similar
provision) and that it will notify the Company immediately upon having a
reasonable basis for believing that any such Series may not so qualify in the
future.

6.4 The Trust represents and warrants that it will at all times invest
money from the Contracts in such a manner as to ensure that the Contracts will
be treated as variable contracts under the Code and the regulations issued
thereunder. Without limiting the scope of the foregoing, the Trust will at all
times comply with Section 817(h) of the Code and the Regulations thereunder,
relating to the diversification requirements for annuity, endowment, or life
insurance contracts and any amendments or other modifications to such Section
or Regulation.

6.5 The Company represents that the Contracts are to be treated as
annuity, endowment, or life insurance contracts, under applicable provisions of
the Code, and that it will make every effort to maintain such treatment and
that it will notify the Trust immediately upon having a reasonable basis for
believing that the Contracts have ceased to be so treated or that they might
not be so treated in the future.

6.6 The Trust makes no representation as to whether any aspect of its
operations (including, but not limited to, fees and expenses and investment
policies) complies with the insurance laws or regulations of the various states
except that the Trust represents that its investment policies, fees and
expenses are and shall at all times remain in compliance with the laws of the
State of Massachusetts and the Trust represents that its operations are and
shall at all times remain in material compliance with the 1940 Act.

<PAGE> 9

Section 17(g) of the 1940 Act or related provisions as may be promulgated from
time to time. The aforesaid bond shall include coverage for larceny and
embezzlement and shall be issued by a reputable bonding company.

6.8 The Company represents and warrants that all of its directors,
officers, employees, and other persons who are directly dealing with the money
or securities of the Trust are and shall continue to be at all times covered by
a blanket fidelity bond or similar coverage in amounts which shall comply with
Rule 17g-1 under the 1940 Act.

6.9 The Trust represents and warrants that shares of the Trust will be
sold only to Participating Insurers and their separate accounts or to qualified
plans as permitted under section 817(h) of the Code. No shares of any Series
will be sold to the general public. The Trust further represents and warrants
that it will not sell Trust shares to any insurance company or separate account
except pursuant to an agreement containing provisions substantially the same as
those contained in Articles IV and V of this Agreement governing voting rights
and conflicts of interest, respectively.

6.10 The Company represents and warrants that it will make reasonable
efforts to market those Contracts it determines from time to time to offer for
sale and, although it is not required to offer for sale new Contracts in all
cases, will accept payments and otherwise service existing Contracts funded in
the Separate Account. No representation is made as to the number or amount of
such Contracts to be sold.

ARTICLE VII

INDEMNIFICATION

7.1 The Company agrees to indemnify and hold harmless the Trust and each
of the Trust's Trustees and officers and each person, if any, who controls the
Trust within the meaning of Section 15 of the 1933 Act against any and all
losses, claims, damages, liabilities or litigation (including legal and other
expenses), arising out of the acquisition of any shares of the Trust by any
person, to which the Trust or such Trustees, officers or controlling person may
become subject under the 1933 Act, under any other statute, at common law or
otherwise, which (i) may be based upon any wrongful act by the Company, any of
its employees or representatives, any affiliate of or any person acting on
behalf of the Company or a principal underwriter of its insurance products, or
(ii) may be based upon any untrue statement or alleged untrue statement of a
material fact contained in a registration statement or prospectus covering
shares of the Trust or any amendment thereof or supplement thereto or the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading if
such a statement or omission was made in reliance upon information furnished to
the Trust by the Company, or (iii) may be based on any untrue statement or
alleged untrue statement of a material fact contained in a registration
statement or prospectus covering the Contracts, or any amendments

<PAGE> 10

or supplement thereto, or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statement
or statements therein not misleading, unless such statement or omission was
made in reliance upon information furnished to the Company or such affiliate by
or on behalf of the Trust; provided, however, that in no case (i) is the
Company's indemnity in favor of a Trustee or officer or any other person deemed
to protect such Trustee or officer or other person against any liability to
which any such person would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence in the performance of his or her
duties or by reason of his or her reckless disregard of obligations and duties
under this Agreement or (ii) is the Company to be liable under its indemnity
agreement contained in this Paragraph 7.1 with respect to any claim made
against the Trust or any person indemnified unless the Trust or such person, as
the case may be, shall have notified the Company in writing pursuant to
Paragraph 10 of this Agreement within a reasonable time after the summons or
other first legal process giving information of the nature of the claims shall
have been served upon the Trust or upon such person (or after the Trust or such
person shall have received notice of such service on any designated agent), but
failure to notify the Company of any such claim shall not relieve the Company
from any liability which it has to the Trust or any person against whom such
action is brought otherwise than on account of its indemnity agreement
contained in this Paragraph 7.1. The Company shall be entitled to participate,
at its own expense, in the defense, or, if it so elects, to assume the defense
of any suit which could result in liability to it under this Paragraph 7.1,
but, if it elects to assume the defense, such defense shall be conducted by
counsel chosen by it and satisfactory to the Trust and to such of its officers,
Trustees and controlling person or persons as may be defendants in the suit.
In the event that the Company elects to assume the defense of any such suit and
retain such counsel, the Trust, such officers, Trustees and controlling person
or persons shall bear the fees and expenses of any additional counsel retained
by them, but, in case the Company does not elect to assume the defense of any
such suit, the Company will reimburse the Trust, such officers, Trustees and
controlling person or persons for the reasonable fees and expenses of any
counsel retained by them. The Company agrees promptly to notify the Trust
pursuant to Paragraph 10 of this Agreement of the commencement of any
litigation or proceedings against it in connection with the issue and sale of
any shares of the Trust.

7.2 The Trust agrees to indemnify and hold harmless the Company and its
affiliated principal underwriter of the Contracts and each of the Company's
Directors and officers and each person, if any, who controls the Company within
the meaning of Section 15 of the 1933 Act against any and all losses, claims,
damages, liabilities or litigation (including legal and other expenses) to
which it or such directors, officers or controlling person may become subject
under the 1933 Act, under any other statute, at common law or otherwise,
arising out of the acquisition of any shares of the Trust by any person which
(i) may be based upon any wrongful act by the Trust or any of its employees or
representatives, or (ii) may be based upon any untrue statement or alleged
untrue statement of a material fact contained in a registration statement or
prospectus covering shares of the Trust or any amendment thereof or supplement
thereto or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading unless such statement or omission was made in reliance

<PAGE> 11

upon information furnished to the Trust by the Company, or (iii) may be based
on any untrue statement or alleged untrue statement of a material fact
contained in a registration statement or prospectus covering the Contracts, or
any amendment or supplement thereto, or the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statement or statements therein not misleading, if such statement or
omission was made in reliance upon information furnished to the Company by or
on behalf of the Trust; provided, however, that in no case (i) is the Trust's
indemnity in favor of a Director or officer or any other person deemed to
protect such Director or officer or other person against any liability to which
any such person would otherwise be subject by reason of willful misfeasance,
bad faith, or gross negligence in the performance of his or her duties or by
reason of his or her reckless disregard of obligations and duties under this
Agreement or (ii) is the Trust to be liable under its indemnity agreement
contained in this Paragraph 7.2 with respect to any claims made against the
Company or any such Director, officer or controlling person unless it,
Director, officer or controlling person, as the case may be, shall have
notified the Trust in writing pursuant to Paragraph 10 of this Agreement within
a reasonable time after the summons or the first legal process giving
information of the nature of the claim shall have been served upon it or upon
such Director, officer or controlling person (or after the Company or such
Director, officer or controlling person shall have received notice of such
service on any designated agent), but failure to notify the Trust of any claim
shall not relieve it from any liability which it may have to the person against
whom such action is brought otherwise than on account of its indemnity
agreement contained in this Paragraph 7.2. The Trust will be entitled to
participate, at its own expense, in the defense, or, if it so elects, to assume
the defense of any suit which could result in liability to it under this
Paragraph 7.2, but, if the Trust elects to assume the defense, such defense
shall be conducted by counsel chosen by it and satisfactory to the Company and
to such of its Directors, officers and controlling person or persons as may be
defendants in the suit. In the event that the Trust elects to assume the
defense of any such suit and retain such counsel, the Company, such Directors,
officers and controlling person or persons shall bear the fees and expenses of
any additional counsel retained by them, but, in case the Trust does not elect
to assume the defense of any such suit, it will reimburse the Company, such
Directors, officers and controlling person or persons for the reasonable fees
and expenses of any counsel retained by them. The Trust agrees promptly to
notify the Company pursuant to Paragraph 10 of this Agreement of the
commencement of any litigation or proceedings against it or any of its officers
or Trustees in connection with the issue and sale of any of its shares.

ARTICLE VIII

CONFIDENTIALITY

<PAGE> 12

utilize confidential information without the express written consent of the
affected party until such time as it may come into the public domain.

ARTICLE IX

TERMINATION

9.1 This Agreement shall terminate:

(a) at the option of the Company or the Trust upon 90
days' advance written notice to all other parties to this
Agreement, provided, however, such notice shall not be given
earlier than twenty four months following the date of this
Agreement; or

(b) at the option of the Company if any of the
Trust's shares are not reasonably available to meet the
requirements of the Contracts funded in the Separate Account
as determined by the Company; or

(c) at the option of any party to this Agreement upon
institution of formal proceedings against any other party to
this Agreement by the Securities and Exchange Commission or any
other regulatory body; or

(d) upon the vote of Contract owners having an interest
in a particular Portfolio of the Separate Account. The Company
will give 30 days' prior written notice to the Trust of the
date of any proposed action to replace the Trust's shares; or

(e) at the option of the Company if the Trust's shares
are not registered, issued or sold in accordance with
applicable state and/or federal law or such law precludes the
use of such shares as the underlying investment medium of the
Contracts funded in the Separate Account; or

(f) at the option of the Company if any Series of the
Trust ceases to qualify as a Regulated Investment Company under
Subchapter M of the Code or under any successor similar
provision, or if the Company reasonably believes that any
Series of the Trust may fail to so qualify; or

(g) at the option of the Company if any Series of the
Trust fails to meet the diversification requirements specified
in paragraph 6.4 hereof.

9.2 Prompt notice of election to terminate under subparagraphs (b), (c),
(e), (f) and (g) of paragraph 9.1 shall be furnished by the electing party.

<PAGE> 13

9.3 Notwithstanding any termination of this Agreement, the Trust shall, at
the option of the Company, continue to make available additional shares of the
Trust pursuant to the terms and conditions of this Agreement for all Contracts
in effect on the effective date of termination of this Agreement (hereinafter
referred to as "Existing Contracts"). Specifically, without limitation, the
owners of the Existing Contracts shall be permitted to reallocate investments
in the Trust, redeem investments in the Trust or invest in the Trust upon the
making of additional purchase payments under the Existing Contracts. The
parties agree that this paragraph 9.3 shall not apply to any terminations under
Article V and the effect of such Article V terminations shall be governed by
Article V of this Agreement.

9.4 Notwithstanding Article V and the foregoing provisions of this Article
IX, the provisions of Article VII (Indemnification) and Article VIII
(Confidentiality) shall survive any termination of this Agreement.

ARTICLE X

NOTICES

10. Any notice shall be sufficiently given when sent by registered or
certified mail to each other party at the address of such party set forth below
or at such other address as such party may from time to time specify in writing
to the other party.

If to the Trust:

JNL Series Trust
ATTN: Robert A. Fritts
Vice President
5901 Executive Drive
Lansing, MI 48911

If to the Company or the Separate Account:

Jackson National Life Insurance Company
ATTN: Andrew B. Hopping
Sr. Vice President
5901 Executive Drive
Lansing, MI 48911

ARTICLE XI

APPLICABLE LAW

<PAGE> 14

11. This Agreement shall be construed in accordance with the laws of the
State of Michigan.

ARTICLE XII

MISCELLANEOUS

12.1 The captions in this Agreement are included for convenience of
reference only and in no way define or delineate any of the provisions hereof
or otherwise affect their construction or effect.

12.2 If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Agreement
shall not be affected thereby.

12.3 The rights, remedies and obligations contained in this Agreement are
cumulative and are in addition to any and all rights, remedies and obligations,
at law or in equity, which the parties hereto are entitled to under state and
federal laws.

12.4 This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.

12.5 The Trust and the Company agree that the obligations of the Trust
under this Agreement shall not be binding upon any of the Trustees,
shareholders, nominees, officers, employees or agents, whether past, present or
future, of the Trust individually, but are binding only upon the assets and
property of the Trust or of the appropriate Series thereof, as provided in the
Agreement and Declaration of Trust. The execution and delivery of this
Agreement has been authorized by the Trustees of the Trust, and signed by an
authorized officer of the Trust, acting as such, and neither such authorization
by such Trustees nor such execution and delivery by such officer shall be
deemed to have been made by any of them or any shareholder of the Trust
individually or to impose any liability on any of them or any shareholder of
the Trust personally, but shall bind only the assets and property of the Trust
or of the appropriate Series thereof as provided in the Agreement and
Declaration of Trust.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

Attest: JNL Series Trust

_________________________ By: ___________________________
Robert A. Fritts
Vice President

<PAGE> 15

Attest: Jackson National Life Insurance Company

_________________________ By: ___________________________
Andrew B. Hopping
Senior Vice President

Jackson National Separate Account - III
Attest: By: Jackson National Life Insurance Company

_________________________ By: ____________________________
Andrew B. Hopping
Senior Vice President

<PAGE> 16

EXHIBIT A

JNL SERIES TRUST

- JNL Aggressive Growth Series
- JNL Global Equities Series
- JNL/Alliance Growth Series
- JNL/JPM International & Emerging Markets Series
- JNL/PIMCO Total Return Bond Series
- JNL/Putnam Growth Series
- JNL/Putnam Value Equity Series
- Goldman Sachs/JNL Growth & Income Series
- Lazard/JNL Small Cap Value Series
- Lazard/JNL Mid Cap Value Series
- PPM America/JNL Money Market Series
- Salomon Brothers/JNL Balanced Series
- Salomon Brothers/JNL Global Bond Series
- Salomon Brothers/JNL High Yield Bond Series
- T. Rowe Price/JNL International Equity Investment Series
- T. Rowe Price/JNL Mid-Cap Growth Series

<PAGE> 17

EXHIBIT LIST

1. Investment Advisory and Sub-Advisory Agreement.
2. Investment Advisor and Sub-Advisor Commitment Letter.
3. Amended Fund Participation Agreement
4. JNL Series Trust and Statement of Additional Information.

<PAGE> 1
Ex-99.B6-e

FUND PARTICIPATION AGREEMENT

THIS FUND PARTICIPATION AGREEMENT, made on this the ____day of _________,
1997 among JNL Series Trust (the "Trust"), a business trust organized under the
laws of the Commonwealth of Massachusetts, and Jackson National Life Insurance
Company of New York(the "Company"), a life insurance company organized under
the laws of the State of New York, on behalf of itself and on behalf of JNLNY
Separate Account I ("Separate Account"), a separate account of the Company
existing pursuant to the Michigan Insurance Code.

WITNESSETH:

WHEREAS, the Company, by resolution, has established the Separate Account
on its books of account for the purpose of funding certain variable contracts
("Contracts"); and

WHEREAS, the Separate Account desires to purchase shares of the Trust; and

<PAGE> 2

ARTICLE I

SALE OF TRUST SHARES

<PAGE> 3

1.35 For purposes of paragraphs 1.2 and 1.3 hereinabove, the Company
shall be the agent of the Trust for the receipt of (1) orders to purchase, and
(2) requests to redeem, shares of the Series of the Trust on behalf of the
Separate Account, and receipt of such orders and requests by such agent shall
constitute receipt thereof by the Trust, provided that the Trust receives
actual notice of such order or request by 12:00 noon (at the Trust's offices)
on the next following Business Day. "Business Day" shall mean any day on which
the New York Stock Exchange is open for trading and on which the Trust
calculates its net asset value pursuant to the rules of the Securities and
Exchange Commission.

ARTICLE II

SALES MATERIAL AND INFORMATION

<PAGE> 4

2.3 The Trust shall furnish to the Company each piece of sales literature
or other promotional material in which the Company or the Separate
Account is named at least ten business days prior to its use. No such material
shall be used if the Company objects to such use within five business days
after receipt of such material.

ARTICLE III

EXPENSES

<PAGE> 5

3.1 The Trust shall pay no fee or other compensation to the Company
under this Agreement. All expenses incident to performance by the Trust
under this Agreement shall be paid by the Trust. The Trust shall bear the
expenses for: the cost of registration of the Trust's shares; preparation and
filing of the Trust's prospectus and registration statement; preparation and
filing of proxy materials and reports; setting the prospectus in type;
setting in type the proxy materials and reports to shareholders; the
preparation of all statements and notices required of the Trust by any
federal or state law; and all taxes on the issuance or transfer of the
Trust's shares.

ARTICLE IV

VOTING

ARTICLE V

<PAGE> 6

POTENTIAL CONFLICTS

5.1 The Board of the Trust will monitor the Trust for the existence of
any material irreconcilable conflict between the interests of the contract
owners of all separate accounts investing in the Trust. The Company will
report to the Board any potential or existing conflicts of which it is or
becomes aware between any of its Contract owners, or between any of its
Contract owners and contract owners of other Participating Insurers. The
Company will be responsible for assisting the Board in carrying out its
responsibilities to identify and resolve material conflicts by providing the
Board with all information available to it that is reasonably necessary for
the Board to consider any issues raised, including information as to a
decision by the Company to disregard voting instructions of its Contract
owners.

<PAGE> 7

bear any portion of such expense. If a material irreconcilable conflict
arises because of the Company's decision to disregard Contract owner voting
instructions and that decision represents a minority position or would
preclude a majority vote, the Company may be required, at Trust's election,
to withdraw the investment of the Separate Account in the Trust, and no
charge or penalty will be imposed as a result of such a withdrawal. The
Company agrees to take such remedial action as may be required under this
paragraph 5.3 with a view only to the interests of its Contract owners. For
purposes of this paragraph 5.3, a majority of the disinterested members of
the Trust's Board shall determine whether or not any proposed action
adequately remedies any irreconcilable conflict, but in no event will Trust
be required to establish a new funding medium for any variable contract. The
Company shall not be required by this paragraph 5.3 to establish a new
funding medium if any offer to do so has been declined by vote of a majority
of contract owners materially and adversely affected by the irreconcilable
material conflict.

5.4 In discharging its responsibilities under this Article V, the
Company will cooperate and coordinate, to the extent necessary, with the
Board and with other Participating Insurers.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

6.1 The Company represents and warrants that the Contracts are or will be
registered under the Securities Act of 1933 ("1933 Act"), that the Contracts
will be issued

<PAGE> 8

and sold in compliance in all material respects with all applicable federal and
state laws, and that the sale of the Contracts shall comply in all material
respects with state insurance suitability requirements. The Company further
represents and warrants that it is an insurance company duly organized and in
good standing under applicable laws and that it has legally and validly
established the Separate Account prior to any issuance or sale thereof as a
segregated asset account under the Michigan Insurance Code and has registered
or, prior to any issuance or sale of the Contracts, will register the Separate
Account as a unit investment trust in accordance with the provisions of the
1940 Act to serve as a segregated investment account for the Contracts.

<PAGE> 9

in compliance with the laws of the State of Massachusetts and the Trust
represents that its operations are and shall at all times remain in material
compliance with the 1940 Act.

6.7 The Trust represents and warrants that all of its Trustees, officers,
employees, investment advisers, and other persons dealing with the money or
securities of the Trust are and shall continue to be at all times covered by a
blanket fidelity bond or similar coverage for the benefit of the Trust in an
amount not less that the minimal coverage as required currently by Section
17(g) of the 1940 Act or related provisions as may be promulgated from time to
time. The aforesaid bond shall include coverage for larceny and embezzlement
and shall be issued by a reputable bonding company.

ARTICLE VII

INDEMNIFICATION

<PAGE> 10

thereof or supplement thereto or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading if such a statement or omission was made in
reliance upon information furnished to the Trust by the Company, or (iii) may
be based on any untrue statement or alleged untrue statement of a material fact
contained in a registration statement or prospectus covering the Contracts, or
any amendments or supplement thereto, or the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statement or statements therein not misleading, unless such statement
or omission was made in reliance upon information furnished to the Company or
such affiliate by or on behalf of the Trust; provided, however, that in no case
(i) is the Company's indemnity in favor of a Trustee or officer or any other
person deemed to protect such Trustee or officer or other person against any
liability to which any such person would otherwise be subject by reason of
willful misfeasance, bad faith, or gross negligence in the performance of his
or her duties or by reason of his or her reckless disregard of obligations and
duties under this Agreement or (ii) is the Company to be liable under its
indemnity agreement contained in this Paragraph 7.1 with respect to any claim
made against the Trust or any person indemnified unless the Trust or such
person, as the case may be, shall have notified the Company in writing pursuant
to Paragraph 10 of this Agreement within a reasonable time after the summons or
other first legal process giving information of the nature of the claims shall
have been served upon the Trust or upon such person (or after the Trust or such
person shall have received notice of such service on any designated agent), but
failure to notify the Company of any such claim shall not relieve the Company
from any liability which it has to the Trust or any person against whom such
action is brought otherwise than on account of its indemnity agreement
contained in this Paragraph 7.1. The Company shall be entitled to participate,
at its own expense, in the defense, or, if it so elects, to assume the defense
of any suit which could result in liability to it under this Paragraph 7.1,
but, if it elects to assume the defense, such defense shall be conducted by
counsel chosen by it and satisfactory to the Trust and to such of its officers,
Trustees and controlling person or persons as may be defendants in the suit.
In the event that the Company elects to assume the defense of any such suit and
retain such counsel, the Trust, such officers, Trustees and controlling person
or persons shall bear the fees and expenses of any additional counsel retained
by them, but, in case the Company does not elect to assume the defense of any
such suit, the Company will reimburse the Trust, such officers, Trustees and
controlling person or persons for the reasonable fees and expenses of any
counsel retained by them. The Company agrees promptly to notify the Trust
pursuant to Paragraph 10 of this Agreement of the commencement of any
litigation or proceedings against it in connection with the issue and sale of
any shares of the Trust.

<PAGE> 11

common law or otherwise, arising out of the acquisition of any shares of the
Trust by any person which (i) may be based upon any wrongful act by the Trust
or any of its employees or representatives, or (ii) may be based upon any
untrue statement or alleged untrue statement of a material fact contained in a
registration statement or prospectus covering shares of the Trust or any
amendment thereof or supplement thereto or the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading unless such statement or omission
was made in reliance upon information furnished to the Trust by the Company, or
(iii) may be based on any untrue statement or alleged untrue statement of a
material fact contained in a registration statement or prospectus covering the
Contracts, or any amendment or supplement thereto, or the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statement or statements therein not misleading, if such
statement or omission was made in reliance upon information furnished to the
Company by or on behalf of the Trust; provided, however, that in no case (i) is
the Trust's indemnity in favor of a Director or officer or any other person
deemed to protect such Director or officer or other person against any
liability to which any such person would otherwise be subject by reason of
willful misfeasance, bad faith, or gross negligence in the performance of his
or her duties or by reason of his or her reckless disregard of obligations and
duties under this Agreement or (ii) is the Trust to be liable under its
indemnity agreement contained in this Paragraph 7.2 with respect to any claims
made against the Company or any such Director, officer or controlling person
unless it, Director, officer or controlling person, as the case may be, shall
have notified the Trust in writing pursuant to Paragraph 10 of this Agreement
within a reasonable time after the summons or the first legal process giving
information of the nature of the claim shall have been served upon it or upon
such Director, officer or controlling person (or after the Company or such
Director, officer or controlling person shall have received notice of such
service on any designated agent), but failure to notify the Trust of any claim
shall not relieve it from any liability which it may have to the person against
whom such action is brought otherwise than on account of its indemnity
agreement contained in this Paragraph 7.2. The Trust will be entitled to
participate, at its own expense, in the defense, or, if it so elects, to assume
the defense of any suit which could result in liability to it under this
Paragraph 7.2, but, if the Trust elects to assume the defense, such defense
shall be conducted by counsel chosen by it and satisfactory to the Company and
to such of its Directors, officers and controlling person or persons as may be
defendants in the suit. In the event that the Trust elects to assume the
defense of any such suit and retain such counsel, the Company, such Directors,
officers and controlling person or persons shall bear the fees and expenses of
any additional counsel retained by them, but, in case the Trust does not elect
to assume the defense of any such suit, it will reimburse the Company, such
Directors, officers and controlling person or persons for the reasonable fees
and expenses of any counsel retained by them. The Trust agrees promptly to
notify the Company pursuant to Paragraph 10 of this Agreement of the
commencement of any litigation or proceedings against it or any of its officers
or Trustees in connection with the issue and sale of any of its shares.

ARTICLE VIII

<PAGE> 12

CONFIDENTIALITY

8. Subject to the requirements of legal process and regulatory authority,
each party shall treat as confidential all information reasonably identified as
confidential in writing by any other party hereto and, except as permitted by
this Agreement, shall not disclose, disseminate or utilize confidential
information without the express written consent of the affected party until
such time as it may come into the public domain.

ARTICLE IX

TERMINATION

9.1 This Agreement shall terminate:

(a) at the option of the Company or the Trust upon 90 days'
advance written notice to all other parties to this Agreement,
provided, however, such notice shall not be given earlier than
twenty four months following the date of this Agreement; or

(b) at the option of the Company if any of the Trust's shares
are not reasonably available to meet the requirements of the
Contracts funded in the Separate Account as determined by the
Company; or

(c) at the option of any party to this Agreement upon
institution of formal proceedings against any other party to this
Agreement by the Securities and Exchange Commission or any other
regulatory body; or

(d) upon the vote of Contract owners having an interest in a
particular Portfolio of the Separate Account. The Company will
give 30 days' prior written notice to the Trust of the date of
any proposed action to replace the Trust's shares; or

(e) at the option of the Company if the Trust's shares are not
registered, issued or sold in accordance with applicable state
and/or federal law or such law precludes the use of such shares
as the underlying investment medium of the Contracts funded in
the Separate Account; or

(f) at the option of the Company if any Series of the Trust
ceases to qualify as a Regulated Investment Company under
Subchapter M of the Code or under any successor similar
provision, or if the Company reasonably believes that any Series
of the Trust may fail to so qualify; or

<PAGE> 13

(g) at the option of the Company if any Series of
the Trust fails to meet the diversification requirements
specified in paragraph 6.4 hereof.

9.2 Prompt notice of election to terminate under subparagraphs (b), (c),
(e), (f) and (g) of paragraph 9.1 shall be furnished by the electing party.

ARTICLE X

NOTICES

If to the Trust:

JNL Series Trust
ATTN: Robert A. Fritts
Vice President
5901 Executive Drive
Lansing, MI 48911

If to the Company or the Separate Account:

Jackson National Life Insurance Company
ATTN: Andrew B. Hopping
Sr. Vice President
5901 Executive Drive
Lansing, MI 48911

<PAGE> 14

ARTICLE XI

APPLICABLE LAW

11. This Agreement shall be construed in accordance with the laws of the
State of Michigan.

ARTICLE XII

MISCELLANEOUS

12.1 The captions in this Agreement are included for convenience of
reference only and in no way define or delineate any of the provisions hereof
or otherwise affect their construction or effect.

12.2 If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Agreement
shall not be affected thereby.

12.4 This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

Attest: JNL Series Trust

________________________________ By: ______________________

<PAGE> 15

Robert A. Fritts
Vice President

Attest: Jackson National Life Insurance
Company of New York

_________________________ By: ___________________________
Andrew B. Hopping
Senior Vice President

JNLNY Separate Account I
Attest: By: Jackson National Life Insurance
Company of New York

_________________________ By: ____________________________
Andrew B. Hopping
Senior Vice President

<PAGE> 16

EXHIBIT A

JNL SERIES TRUST

- JNL Aggressive Growth Series
- JNL Capital Growth Series
- JNL Global Equities Series
- JNL/Alger Growth Series
- JNL/Eagle Core Equity Series
-JNL/Eagle SmallCap Equity Series
- JNL/Putnam Growth Series
- JNL/Putnam Value Equity Series
- PPM America/JNL Balanced Series
- PPM America/JNL High Yield Bond Series
- PPM America/JNL Money Market Series
- Salomon Brothers/JNL Global Bond Series
- Salomon Brothers/JNL U.S. Government &
Quality Bond Series
- T. Rowe Price/JNL Established Growth Series
- T. Rowe Price/JNL International Equity Investment Series
- T. Rowe Price/JNL Mid-Cap Growth Series

<PAGE> 17

EXHIBIT LIST

<PAGE> 1

EX-99.B10

BLAZZARD, GRODD & HASENAUER, P.C.
943 POST ROAD EAST
WESTPORT, CONNECTICUT 06881-5108

October 14, 1997

Board of Trustees
JNL Series Trust
5901 Executive Drive
Lansing, MI 48911

Re: Opinion of Counsel - JNL Series Trust

Gentlemen:

You have requested our Opinion of Counsel in connection with the filing
with the Securities and Exchange Commission of Post-Effective Amendment No. 11
to the Registration Statement on Form N-1A with respect to the JNL Series
Trust.

We have made such examination of the law and have examined such records
and documents as in our judgment are necessary or appropriate to enable us to
render the opinions expressed below.

We are of the following opinions:

1. JNL Series Trust ("Trust") is a valid and existing
unincorporated voluntary association, commonly known as a business
trust.

2. The Trust is a business Trust created and validly existing
pursuant to the Massachusetts Laws.

3. All of the prescribed Trust procedures for the issuance of
the shares have been followed, and, when such shares are issued in
accordance with the Prospectus contained in the Registration
Statement for such shares, all state requirements relating to such
Trust shares will have been complied with.

4. Upon the acceptance of purchase payments made by shareholders
in accordance with the Prospectus contained in the Registration
Statement

<PAGE> 2

Board of Trustees
JNL Series Trust
October 13, 1997
Page 2

and upon compliance with applicable law, such shareholders will
have legally-issued, fully paid, non-assessable shares of the
Trust.

You may use this opinion letter, or a copy thereof, as an exhibit to the
Registration.

We consent to the reference to our Firm contained in the Prospectus which
forms a part of the Registration Statement.

Sincerely,

BLAZZARD, GRODD & HASENAUER, P.C.

By: /s/ Raymond A. O'Hara III
--------------------------------
Raymond A. O'Hara III

<PAGE> 1
EXHIBIT 11

CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 11 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
February 14, 1997, relating to the financial statements and financial
highlights of JNL Series Trust, which appears in such Statement of Additional
Information, and to the incorporation by reference of our report into the
Prospectus which constitutes part of this Registration Statement. We also
consent to the reference to us under the heading "Independent Accountants" in
such Statement of Additional Information and to the references to us under the
headings "Financial Highlights" and "Independent Accountants" in such
Prospectus.

PRICE WATERHOUSE LLP
Milwaukee, Wisconsin
October 16, 1997

<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> JNL AGGRESSIVE GROWTH SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997
<PERIOD-END> JUN-30-1997 DEC-31-1997
<INVESTMENTS-AT-COST> 57359835 28034841
<INVESTMENTS-AT-VALUE> 62267285 29870628
<RECEIVABLES> 485117 1671587
<ASSETS-OTHER> 42949 52939
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 62795351 31595154
<PAYABLE-FOR-SECURITIES> 489137 1495958
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 133511 544551
<TOTAL-LIABILITIES> 622648 204059
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 56582013 27767559
<SHARES-COMMON-STOCK> 4378694 2208950
<SHARES-COMMON-PRIOR> 2208950 649425
<ACCUMULATED-NII-CURRENT> 288795 7694
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 392025 0
<OVERDISTRIBUTION-GAINS> 0 52362
<ACCUM-APPREC-OR-DEPREC> 4909870 1831754
<NET-ASSETS> 62172703 29554645
<DIVIDEND-INCOME> 142363 66038
<INTEREST-INCOME> 378241 221102
<OTHER-INCOME> 0 0
<EXPENSES-NET> 239503 167800
<NET-INVESTMENT-INCOME> 281101 119340
<REALIZED-GAINS-CURRENT> 444387 612181
<APPREC-INCREASE-CURRENT> 3078116 995443
<NET-CHANGE-FROM-OPS> 3803604 1726964
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 104404
<DISTRIBUTIONS-OF-GAINS> 0 1470576
<DISTRIBUTIONS-OTHER> 0 289382
<NUMBER-OF-SHARES-SOLD> 33320171 1957943
<NUMBER-OF-SHARES-REDEEMED> 4505717 528956
<SHARES-REINVESTED> 0 130538
<NET-CHANGE-IN-ASSETS> 32618058 21027590
<ACCUMULATED-NII-PRIOR> 7694 7691
<ACCUMULATED-GAINS-PRIOR> 0 791100
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 52362 0
<GROSS-ADVISORY-FEES> 206843 145930
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 269318 215932
<AVERAGE-NET-ASSETS> 45987957 20515672
<PER-SHARE-NAV-BEGIN> 13.38 13.13
<PER-SHARE-NII> 0.06 .05
<PER-SHARE-GAIN-APPREC> .76 1.1
<PER-SHARE-DIVIDEND> 0 .05
<PER-SHARE-DISTRIBUTIONS> 0 .71
<RETURNS-OF-CAPITAL> 0 .14
<PER-SHARE-NAV-END> 14.2 13.38
<EXPENSE-RATIO> 1.10 1.09
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> JNL CAPITAL GROWTH SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 52783377 34996580
<INVESTMENTS-AT-VALUE> 61247396 37622915
<RECEIVABLES> 559877 2839026
<ASSETS-OTHER> 70921 252651
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 61878194 40714592
<PAYABLE-FOR-SECURITIES> 778724 3696934
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 130276 71507
<TOTAL-LIABILITIES> 909000 3768441
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 54627799 34446324
<SHARES-COMMON-STOCK> 4024407 2555038
<SHARES-COMMON-PRIOR> 2555038 691024
<ACCUMULATED-NII-CURRENT> 106682 133876
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 0 0
<OVERDISTRIBUTION-GAINS> 2170339 188152
<ACCUM-APPREC-OR-DEPREC> 8405052 2554103
<NET-ASSETS> 60969194 36946151
<DIVIDEND-INCOME> 46609 274270
<INTEREST-INCOME> 183169 83548
<OTHER-INCOME> 0 0
<EXPENSES-NET> 256972 194517
<NET-INVESTMENT-INCOME> (27194) 163301
<REALIZED-GAINS-CURRENT> (1982187) (192997)
<APPREC-INCREASE-CURRENT> 5850949 800074
<NET-CHANGE-FROM-OPS> 3841568 770378
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 3
<DISTRIBUTIONS-OF-GAINS> 0 390495
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 27250998 2355859
<NUMBER-OF-SHARES-REDEEMED> 7069523 517730
<SHARES-REINVESTED> 0 25885
<NET-CHANGE-IN-ASSETS> 240230043 27368618
<ACCUMULATED-NII-PRIOR> 133876 0
<ACCUMULATED-GAINS-PRIOR> 0 365918
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 188152 0
<GROSS-ADVISORY-FEES> 221929 169538
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 277606 227056
<AVERAGE-NET-ASSETS> 48782883 23843238
<PER-SHARE-NAV-BEGIN> 14.46 13.86
<PER-SHARE-NII> .03 .06
<PER-SHARE-GAIN-APPREC> .072 .7
<PER-SHARE-DIVIDEND> 0 0
<PER-SHARE-DISTRIBUTIONS> 0 .16
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 15.15 14.46
<EXPENSE-RATIO> 1.10 1.09
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> JNL GLOBAL EQUITIES SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 93106846 42282196
<INVESTMENTS-AT-VALUE> 110948045 48919581
<RECEIVABLES> 8825844 7775228
<ASSETS-OTHER> 3733813 132796
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 123507702 56827605
<PAYABLE-FOR-SECURITIES> 5844308 7140990
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 5330770 1048141
<TOTAL-LIABILITIES> 11175078 8189131
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 92557071 42036466
<SHARES-COMMON-STOCK> 6274355 3199648
<SHARES-COMMON-PRIOR> 3199648 1173884
<ACCUMULATED-NII-CURRENT> 348042 0
<OVERDISTRIBUTION-NII> 0 149359
<ACCUMULATED-NET-GAINS> 1188668 0
<OVERDISTRIBUTION-GAINS> 0 27229
<ACCUM-APPREC-OR-DEPREC> 18238843 6778596
<NET-ASSETS> 112332624 48638474
<DIVIDEND-INCOME> 704399 247676
<INTEREST-INCOME> 217734 128161
<OTHER-INCOME> 0 0
<EXPENSES-NET> 424732 283836
<NET-INVESTMENT-INCOME> 497401 92001
<REALIZED-GAINS-CURRENT> 1215897 1193170
<APPREC-INCREASE-CURRENT> 11460247 4364338
<NET-CHANGE-FROM-OPS> 13173545 5649509
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 238326
<DISTRIBUTIONS-OF-GAINS> 0 2687572
<DISTRIBUTIONS-OTHER> 0 955633
<NUMBER-OF-SHARES-SOLD> 60633846 2508660
<NUMBER-OF-SHARES-REDEEMED> 10113241 698526
<SHARES-REINVESTED> 0 215630
<NET-CHANGE-IN-ASSETS> 63694150 32497925
<ACCUMULATED-NII-PRIOR> 0 2538
<ACCUMULATED-GAINS-PRIOR> 0 1461601
<OVERDISTRIB-NII-PRIOR> 149359 0
<OVERDIST-NET-GAINS-PRIOR> 27229 0
<GROSS-ADVISORY-FEES> 369034 247941
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 497318 404758
<AVERAGE-NET-ASSETS> 79364751 33105354
<PER-SHARE-NAV-BEGIN> 15.2 13.75
<PER-SHARE-NII> .10 .03
<PER-SHARE-GAIN-APPREC> 2.6 2.72
<PER-SHARE-DIVIDEND> 0 .08
<PER-SHARE-DISTRIBUTIONS> 0 .90
<RETURNS-OF-CAPITAL> 0 .32
<PER-SHARE-NAV-END> 17.9 15.20
<EXPENSE-RATIO> 1.15 1.14
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> PPM AMERICA/JNL BALANCED SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 40854996 23665613
<INVESTMENTS-AT-VALUE> 42358157 24279702
<RECEIVABLES> 587982 199541
<ASSETS-OTHER> 0 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 42946139 24479243
<PAYABLE-FOR-SECURITIES> 368802 3630
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 81837 57036
<TOTAL-LIABILITIES> 450639 60666
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 38151519 23173657
<SHARES-COMMON-STOCK> 3261326 2049217
<SHARES-COMMON-PRIOR> 2049217 426016
<ACCUMULATED-NII-CURRENT> 530284 2086
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 2310536 628745
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 1503161 614089
<NET-ASSETS> 42495500 24418577
<DIVIDEND-INCOME> 141630 65039
<INTEREST-INCOME> 545877 335923
<OTHER-INCOME> 0 0
<EXPENSES-NET> 159309 121635
<NET-INVESTMENT-INCOME> 528198 279327
<REALIZED-GAINS-CURRENT> 1681791 933110
<APPREC-INCREASE-CURRENT> 889072 476858
<NET-CHANGE-FROM-OPS> 3099061 1689295
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 301815
<DISTRIBUTIONS-OF-GAINS> 0 364079
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 17448456 1895883
<NUMBER-OF-SHARES-REDEEMED> 2470594 327417
<SHARES-REINVESTED> 0 54735
<NET-CHANGE-IN-ASSETS> 18076923 19657948
<ACCUMULATED-NII-PRIOR> 2086 24386
<ACCUMULATED-GAINS-PRIOR> 628745 59902
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 135150 104754
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 175175 142967
<AVERAGE-NET-ASSETS> 33866450 15546559
<PER-SHARE-NAV-BEGIN> 11.92 11.17
<PER-SHARE-NII> .16 .10
<PER-SHARE-GAIN-APPREC> .95 .98
<PER-SHARE-DIVIDEND> 0 .15
<PER-SHARE-DISTRIBUTIONS> 0 .18
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 13.03 11.92
<EXPENSE-RATIO> .99 1.04
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> JNL/PUTNAM GROWTH SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 63755698 23800643
<INVESTMENTS-AT-VALUE> 68616738 24090991
<RECEIVABLES> 366444 1485539
<ASSETS-OTHER> 746286 10359
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 69729468 25586889
<PAYABLE-FOR-SECURITIES> 284903 2731642
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 9119580 51732
<TOTAL-LIABILITIES> 9404483 2783374
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 55227459 21854859
<SHARES-COMMON-STOCK> 3892704 1604348
<SHARES-COMMON-PRIOR> 1604348 201403
<ACCUMULATED-NII-CURRENT> 123788 0
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 648978 658308
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 4324760 290348
<NET-ASSETS> 60324985 22803515
<DIVIDEND-INCOME> 245440 72233
<INTEREST-INCOME> 125466 96978
<OTHER-INCOME> 0 0
<EXPENSES-NET> 247118 88923
<NET-INVESTMENT-INCOME> 123788 80288
<REALIZED-GAINS-CURRENT> (9330) 1130393
<APPREC-INCREASE-CURRENT> 4034412 152651
<NET-CHANGE-FROM-OPS> 4148870 1363332
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 83226
<DISTRIBUTIONS-OF-GAINS> 0 608389
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 44384677 1507501
<NUMBER-OF-SHARES-REDEEMED> 11012077 151986
<SHARES-REINVESTED> 0 47430
<NET-CHANGE-IN-ASSETS> 37521470 20285445
<ACCUMULATED-NII-PRIOR> 0 2938
<ACCUMULATED-GAINS-PRIOR> 658308 136304
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 177534 76618
<INTEREST-EXPENSE> 5966 0
<GROSS-EXPENSE> 256070 108675
<AVERAGE-NET-ASSETS> 41783623 11373143
<PER-SHARE-NAV-BEGIN> 14.21 12.5
<PER-SHARE-NII> .03 .04
<PER-SHARE-GAIN-APPREC> 1.26 2.12
<PER-SHARE-DIVIDEND> 0 .05
<PER-SHARE-DISTRIBUTIONS> 0 .4
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 15.50 14.21
<EXPENSE-RATIO> 1.05 1.04
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> PPM AMERICA/JNL HIGH YIELD BOND SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 37672042 13109087
<INVESTMENTS-AT-VALUE> 38694896 13523037
<RECEIVABLES> 895779 547681
<ASSETS-OTHER> 0 813
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 39590675 14071531
<PAYABLE-FOR-SECURITIES> 798640 615535
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 63707 59600
<TOTAL-LIABILITIES> 862347 675135
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 36251362 12806840
<SHARES-COMMON-STOCK> 3402292 1255147
<SHARES-COMMON-PRIOR> 1255147 601533
<ACCUMULATED-NII-CURRENT> 1032166 6041
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 421946 169565
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 1022854 413950
<NET-ASSETS> 38728328 13396396
<DIVIDEND-INCOME> 11975 4179
<INTEREST-INCOME> 1125085 758156
<OTHER-INCOME> 0 0
<EXPENSES-NET> 110935 70569
<NET-INVESTMENT-INCOME> 1026125 691766
<REALIZED-GAINS-CURRENT> 252381 217828
<APPREC-INCREASE-CURRENT> 608904 383145
<NET-CHANGE-FROM-OPS> 1887410 1292739
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 798203
<DISTRIBUTIONS-OF-GAINS> 0 23388
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 26437309 1157121
<NUMBER-OF-SHARES-REDEEMED> 2992787 577564
<SHARES-REINVESTED> 0 74057
<NET-CHANGE-IN-ASSETS> 25331932 7240867
<ACCUMULATED-NII-PRIOR> 6041 112478
<ACCUMULATED-GAINS-PRIOR> 169565 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 24875
<GROSS-ADVISORY-FEES> 92446 59890
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 120697 96852
<AVERAGE-NET-ASSETS> 26854243 10651922
<PER-SHARE-NAV-BEGIN> 10.67 10.23
<PER-SHARE-NII> .3 .51
<PER-SHARE-GAIN-APPREC> .41 .64
<PER-SHARE-DIVIDEND> 0 .69
<PER-SHARE-DISTRIBUTIONS> 0 .02
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 11.38 10.67
<EXPENSE-RATIO> .9 .88
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> PPM AMERICA/JNL MONEY MARKET SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 37888743 23003245
<INVESTMENTS-AT-VALUE> 37888743 23003245
<RECEIVABLES> 199808 783444
<ASSETS-OTHER> 0 227
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 38088551 23786916
<PAYABLE-FOR-SECURITIES> 0 0
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 232330 34729
<TOTAL-LIABILITIES> 232330 34729
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 37856221 23752187
<SHARES-COMMON-STOCK> 37856221 23752187
<SHARES-COMMON-PRIOR> 23752187 6815639
<ACCUMULATED-NII-CURRENT> 0 0
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 0 0
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 0 0
<NET-ASSETS> 37856221 23752187
<DIVIDEND-INCOME> 0 0
<INTEREST-INCOME> 897712 711067
<OTHER-INCOME> 0 0
<EXPENSES-NET> 120127 96576
<NET-INVESTMENT-INCOME> 777585 614491
<REALIZED-GAINS-CURRENT> 0 0
<APPREC-INCREASE-CURRENT> 0 0
<NET-CHANGE-FROM-OPS> 777585 614491
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 777585 614491
<DISTRIBUTIONS-OF-GAINS> 0 0
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 49513756 43176521
<NUMBER-OF-SHARES-REDEEMED> 36163437 26846271
<SHARES-REINVESTED> 753715 606298
<NET-CHANGE-IN-ASSETS> 14104034 16936548
<ACCUMULATED-NII-PRIOR> 0 0
<ACCUMULATED-GAINS-PRIOR> 0 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 96101 77345
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 128129 110369
<AVERAGE-NET-ASSETS> 0 17218326
<PER-SHARE-NAV-BEGIN> 1.00 1.00
<PER-SHARE-NII> .02 .04
<PER-SHARE-GAIN-APPREC> 0 0
<PER-SHARE-DIVIDEND> .02 .04
<PER-SHARE-DISTRIBUTIONS> 0 0
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 1.00 1.00
<EXPENSE-RATIO> .75 .75
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 8
<NAME> JNL/PUTNAM VALUE EQUITY SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 51682727 16392155
<INVESTMENTS-AT-VALUE> 54696151 18343250
<RECEIVABLES> 955815 158059
<ASSETS-OTHER> 0 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 55651966 18501309
<PAYABLE-FOR-SECURITIES> 1604135 661506
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 95031 79125
<TOTAL-LIABILITIES> 1699166 740631
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 47454185 15672149
<SHARES-COMMON-STOCK> 3267397 1225273
<SHARES-COMMON-PRIOR> 1225273 263623
<ACCUMULATED-NII-CURRENT> 317693 5272
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 3167498 132162
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 3013424 1951095
<NET-ASSETS> 53952800 17760678
<DIVIDEND-INCOME> 423657 235569
<INTEREST-INCOME> 38625 3240
<OTHER-INCOME> 0 0
<EXPENSES-NET> 149861 64346
<NET-INVESTMENT-INCOME> 312421 174463
<REALIZED-GAINS-CURRENT> 3035336 299700
<APPREC-INCREASE-CURRENT> 1062329 1455960
<NET-CHANGE-FROM-OPS> 4410086 1930123
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 183956
<DISTRIBUTIONS-OF-GAINS> 0 226911
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 33836730 1153246
<NUMBER-OF-SHARES-REDEEMED> 2054694 219113
<SHARES-REINVESTED> 0 27517
<NET-CHANGE-IN-ASSETS> 36192122 14395373
<ACCUMULATED-NII-PRIOR> 5272 14765
<ACCUMULATED-GAINS-PRIOR> 132162 59373
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 126716 56818
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 173263 116306
<AVERAGE-NET-ASSETS> 34153870 10119937
<PER-SHARE-NAV-BEGIN> 14.50 12.77
<PER-SHARE-NII> .09 .1
<PER-SHARE-GAIN-APPREC> 1.92 1.97
<PER-SHARE-DIVIDEND> 0 .15
<PER-SHARE-DISTRIBUTIONS> 0 .19
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 16.51 14.5
<EXPENSE-RATIO> .97 .85
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 9
<NAME> SALOMON BROTHERS/JNL GLOBAL BOND SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 26030482 13370742
<INVESTMENTS-AT-VALUE> 26784706 13574106
<RECEIVABLES> 1534886 5899516
<ASSETS-OTHER> 0 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 28319592 19473622
<PAYABLE-FOR-SECURITIES> 1872122 6718114
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 81294 272565
<TOTAL-LIABILITIES> 1953416 6990679
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 25000314 12212887
<SHARES-COMMON-STOCK> 2352786 1174127
<SHARES-COMMON-PRIOR> 1174127 609938
<ACCUMULATED-NII-CURRENT> 688276 24906
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 0 57447
<OVERDISTRIBUTION-GAINS> 81643 0
<ACCUM-APPREC-OR-DEPREC> 759229 187703
<NET-ASSETS> 26366176 12482943
<DIVIDEND-INCOME> 0 0
<INTEREST-INCOME> 755938 650496
<OTHER-INCOME> 0 0
<EXPENSES-NET> 92568 75798
<NET-INVESTMENT-INCOME> 663370 574698
<REALIZED-GAINS-CURRENT> (139090) 333016
<APPREC-INCREASE-CURRENT> 571526 156618
<NET-CHANGE-FROM-OPS> 1095806 1064332
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 754598
<DISTRIBUTIONS-OF-GAINS> 0 280691
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 15544519 898823
<NUMBER-OF-SHARES-REDEEMED> 2757092 416558
<SHARES-REINVESTED> 0 81924
<NET-CHANGE-IN-ASSETS> 13883233 6102880
<ACCUMULATED-NII-PRIOR> 24906 154263
<ACCUMULATED-GAINS-PRIOR> 57447 55665
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 78137 64789
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 125896 110001
<AVERAGE-NET-ASSETS> 19517766 10170826
<PER-SHARE-NAV-BEGIN> 10.63 10.46
<PER-SHARE-NII> .27 .42
<PER-SHARE-GAIN-APPREC> .31 .70
<PER-SHARE-DIVIDEND> 0 .69
<PER-SHARE-DISTRIBUTIONS> 0 .26
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 11.21 10.63
<EXPENSE-RATIO> 1.00 .99
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 10
<NAME> SALOMON BROTHERS/U.S. GOVERNMENT AND QUALITY BOND SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 21752277 11866620
<INVESTMENTS-AT-VALUE> 21828286 11916401
<RECEIVABLES> 2244783 141578
<ASSETS-OTHER> 0 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 24073069 12057979
<PAYABLE-FOR-SECURITIES> 6622782 2184744
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 49699 41495
<TOTAL-LIABILITIES> 6672481 2226239
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 16970288 9772004
<SHARES-COMMON-STOCK> 1666186 963480
<SHARES-COMMON-PRIOR> 963480 297893
<ACCUMULATED-NII-CURRENT> 407981 0
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 0 9955
<OVERDISTRIBUTION-GAINS> 53690 0
<ACCUM-APPREC-OR-DEPREC> 76009 49781
<NET-ASSETS> 17400588 9831740
<DIVIDEND-INCOME> 0 0
<INTEREST-INCOME> 464746 330690
<OTHER-INCOME> 0 0
<EXPENSES-NET> 56765 42376
<NET-INVESTMENT-INCOME> 407981 288314
<REALIZED-GAINS-CURRENT> (63645) 29022
<APPREC-INCREASE-CURRENT> 26228 82805
<NET-CHANGE-FROM-OPS> 370564 400141
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 318115
<DISTRIBUTIONS-OF-GAINS> 0 30967
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 9604691 852084
<NUMBER-OF-SHARES-REDEEMED> 2406407 218886
<SHARES-REINVESTED> 0 32389
<NET-CHANGE-IN-ASSETS> 7568848 6824951
<ACCUMULATED-NII-PRIOR> 0 31823
<ACCUMULATED-GAINS-PRIOR> 9955 9878
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 0
<GROSS-ADVISORY-FEES> 46747 35080
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 72987 68910
<AVERAGE-NET-ASSETS> 13995885 6704257
<PER-SHARE-NAV-BEGIN> 10.20 10.09
<PER-SHARE-NII> .24 .24
<PER-SHARE-GAIN-APPREC> 0 .24
<PER-SHARE-DIVIDEND> 0 .34
<PER-SHARE-DISTRIBUTIONS> 0 .03
<RETURNS-OF-CAPITAL> 0 0
<PER-SHARE-NAV-END> 10.44 10.20
<EXPENSE-RATIO> .85 .84
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 70522410 28994231
<INVESTMENTS-AT-VALUE> 81262589 32988888
<RECEIVABLES> 539007 247882
<ASSETS-OTHER> 53115 4279
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 81854711 33241049
<PAYABLE-FOR-SECURITIES> 730520 833185
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 126278 116923
<TOTAL-LIABILITIES> 856798 950108
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 67111227 28335681
<SHARES-COMMON-STOCK> 5482303 2571210
<SHARES-COMMON-PRIOR> 2571210 772203
<ACCUMULATED-NII-CURRENT> 152783 0
<OVERDISTRIBUTION-NII> 0 3896
<ACCUMULATED-NET-GAINS> 2994098 0
<OVERDISTRIBUTION-GAINS> 0 35557
<ACCUM-APPREC-OR-DEPREC> 10739805 3994713
<NET-ASSETS> 80997913 32290941
<DIVIDEND-INCOME> 316446 190417
<INTEREST-INCOME> 104304 60800
<OTHER-INCOME> 0 0
<EXPENSES-NET> 264071 157438
<NET-INVESTMENT-INCOME> 156679 93779
<REALIZED-GAINS-CURRENT> 3029655 81139
<APPREC-INCREASE-CURRENT> 6745092 3384093
<NET-CHANGE-FROM-OPS> 9931426 3559011
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 91356
<DISTRIBUTIONS-OF-GAINS> 0 212086
<DISTRIBUTIONS-OTHER> 0 1234953
<NUMBER-OF-SHARES-SOLD> 42450763 2278033
<NUMBER-OF-SHARES-REDEEMED> 3675217 597638
<SHARES-REINVESTED> 0 118612
<NET-CHANGE-IN-ASSETS> 48706972 23518899
<ACCUMULATED-NII-PRIOR> 0 6828
<ACCUMULATED-GAINS-PRIOR> 0 82243
<OVERDISTRIB-NII-PRIOR> 3896 0
<OVERDIST-NET-GAINS-PRIOR> 35557 0
<GROSS-ADVISORY-FEES> 224144 133940
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 273534 175710
<AVERAGE-NET-ASSETS> 56813472 21047497
<PER-SHARE-NAV-BEGIN> 12.56 11.36
<PER-SHARE-NII> .03 .03
<PER-SHARE-GAIN-APPREC> 2.18 1.81
<PER-SHARE-DIVIDEND> 0 .04
<PER-SHARE-DISTRIBUTIONS> 0 .09
<RETURNS-OF-CAPITAL> 0 .51
<PER-SHARE-NAV-END> 14.77 12.56
<EXPENSE-RATIO> 1.00 1.00
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 63174874 42636723
<INVESTMENTS-AT-VALUE> 74180154 47770591
<RECEIVABLES> 525708 305391
<ASSETS-OTHER> 570919 548170
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 75276781 48624152
<PAYABLE-FOR-SECURITIES> 627885 72609
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 163048 347214
<TOTAL-LIABILITIES> 790933 419823
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 61959817 42985389
<SHARES-COMMON-STOCK> 5524808 3989593
<SHARES-COMMON-PRIOR> 3989593 2152870
<ACCUMULATED-NII-CURRENT> 525964 65539
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 988182 16473
<OVERDISTRIBUTION-GAINS> 0 0
<ACCUM-APPREC-OR-DEPREC> 11011885 5136928
<NET-ASSETS> 74485848 48204329
<DIVIDEND-INCOME> 734839 521716
<INTEREST-INCOME> 85498 111792
<OTHER-INCOME> 0 0
<EXPENSES-NET> 359912 338559
<NET-INVESTMENT-INCOME> 460425 294949
<REALIZED-GAINS-CURRENT> 971709 229320
<APPREC-INCREASE-CURRENT> 5874957 2682582
<NET-CHANGE-FROM-OPS> 7307091 3206851
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 465733
<DISTRIBUTIONS-OF-GAINS> 0 51200
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 21608084 1947418
<NUMBER-OF-SHARES-REDEEMED> 2633656 131846
<SHARES-REINVESTED> 0 21151
<NET-CHANGE-IN-ASSETS> 26281519 23993358
<ACCUMULATED-NII-PRIOR> 65539 80214
<ACCUMULATED-GAINS-PRIOR> 16473 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 0 5538
<GROSS-ADVISORY-FEES> 316085 297941
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 400358 351026
<AVERAGE-NET-ASSETS> 60334460 36113440
<PER-SHARE-NAV-BEGIN> 12.08 11.25
<PER-SHARE-NII> .08 .06
<PER-SHARE-GAIN-APPREC> 1.32 .90
<PER-SHARE-DIVIDEND> 0 .12
<PER-SHARE-DISTRIBUTIONS> 0 .01
<RETURNS-OF-CAPITAL> 0 .00
<PER-SHARE-NAV-END> 13.48 12.08
<EXPENSE-RATIO> 1.24 1.25
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> T. ROWE PRICE/JNL MID-CAP GROWTH SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 81830188 42772841
<INVESTMENTS-AT-VALUE> 92378697 47883620
<RECEIVABLES> 1482006 408982
<ASSETS-OTHER> 234 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 93860937 48292602
<PAYABLE-FOR-SECURITIES> 2109452 1075875
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 178377 112238
<TOTAL-LIABILITIES> 2287829 1188113
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 80428659 42010676
<SHARES-COMMON-STOCK> 5796131 3163175
<SHARES-COMMON-PRIOR> 3163175 785397
<ACCUMULATED-NII-CURRENT> 0 0
<OVERDISTRIBUTION-NII> 71068 301
<ACCUMULATED-NET-GAINS> 667215 0
<OVERDISTRIBUTION-GAINS> 0 16665
<ACCUM-APPREC-OR-DEPREC> 10548302 5110779
<NET-ASSETS> 91573108 47104489
<DIVIDEND-INCOME> 85986 72141
<INTEREST-INCOME> 206708 132476
<OTHER-INCOME> 0 0
<EXPENSES-NET> 363461 243962
<NET-INVESTMENT-INCOME> (70767) (39345)
<REALIZED-GAINS-CURRENT> 683880 750792
<APPREC-INCREASE-CURRENT> 5437523 3708604
<NET-CHANGE-FROM-OPS> 6050636 4420051
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 144094
<DISTRIBUTIONS-OF-GAINS> 0 1107685
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 44299012 2905453
<NUMBER-OF-SHARES-REDEEMED> 5881029 608146
<SHARES-REINVESTED> 0 80471
<NET-CHANGE-IN-ASSETS> 44468619 36559341
<ACCUMULATED-NII-PRIOR> 0 44137
<ACCUMULATED-GAINS-PRIOR> 0 379272
<OVERDISTRIB-NII-PRIOR> 301 0
<OVERDIST-NET-GAINS-PRIOR> 16665 0
<GROSS-ADVISORY-FEES> 313898 210778
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 369799 254799
<AVERAGE-NET-ASSETS> 69620015 29627763
<PER-SHARE-NAV-BEGIN> 14.89 13.43
<PER-SHARE-NII> .01 (.05)
<PER-SHARE-GAIN-APPREC> .92 1.92
<PER-SHARE-DIVIDEND> 0 .05
<PER-SHARE-DISTRIBUTIONS> 0 .36
<RETURNS-OF-CAPITAL> 0 .00
<PER-SHARE-NAV-END> 15.8 14.89
<EXPENSE-RATIO> 1.10 1.10
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 14
<NAME> JNL/ALGER GROWTH SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 54714690 34475613
<INVESTMENTS-AT-VALUE> 65096135 38140297
<RECEIVABLES> 669679 622589
<ASSETS-OTHER> 0 0
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 65765814 38762886
<PAYABLE-FOR-SECURITIES> 2532199 449595
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 124279 61200
<TOTAL-LIABILITIES> 2656478 510795
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 51987984 35287986
<SHARES-COMMON-STOCK> 4843749 3428898
<SHARES-COMMON-PRIOR> 3428898 832889
<ACCUMULATED-NII-CURRENT> 0 0
<OVERDISTRIBUTION-NII> 16761 0
<ACCUMULATED-NET-GAINS> 756668 0
<OVERDISTRIBUTION-GAINS> 0 700579
<ACCUM-APPREC-OR-DEPREC> 10381445 3664684
<NET-ASSETS> 63109336 38252091
<DIVIDEND-INCOME> 170914 121872
<INTEREST-INCOME> 86317 99498
<OTHER-INCOME> 0 0
<EXPENSES-NET> 273992 224960
<NET-INVESTMENT-INCOME> (16761) (3590)
<REALIZED-GAINS-CURRENT> 1457247 (523886)
<APPREC-INCREASE-CURRENT> 6716761 3281071
<NET-CHANGE-FROM-OPS> 8157247 2753595
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 0
<DISTRIBUTIONS-OF-GAINS> 0 0
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 21190205 3282099
<NUMBER-OF-SHARES-REDEEMED> 4490207 686090
<SHARES-REINVESTED> 0 0
<NET-CHANGE-IN-ASSETS> 24857245 29602854
<ACCUMULATED-NII-PRIOR> 0 0
<ACCUMULATED-GAINS-PRIOR> 0 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 700579 176693
<GROSS-ADVISORY-FEES> 237460 195472
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 279422 239541
<AVERAGE-NET-ASSETS> 50690070 26770937
<PER-SHARE-NAV-BEGIN> 11.16 10.38
<PER-SHARE-NII> 0 .00
<PER-SHARE-GAIN-APPREC> 1.87 .78
<PER-SHARE-DIVIDEND> 0 .00
<PER-SHARE-DISTRIBUTIONS> 0 .00
<RETURNS-OF-CAPITAL> 0 .00
<PER-SHARE-NAV-END> 13.03 11.16
<EXPENSE-RATIO> 1.125 1.07
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 15
<NAME> JNL/EAGLE CORE EQUITY SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS OTHER
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 5664300 1716644
<INVESTMENTS-AT-VALUE> 6445300 1796373
<RECEIVABLES> 43377 8379
<ASSETS-OTHER> 480265 200612
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 6968942 2005364
<PAYABLE-FOR-SECURITIES> 151373 35152
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 34432 16015
<TOTAL-LIABILITIES> 185805 51167
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 5966727 1879352
<SHARES-COMMON-STOCK> 538082 184058
<SHARES-COMMON-PRIOR> 184058 0
<ACCUMULATED-NII-CURRENT> 21760 0
<OVERDISTRIBUTION-NII> 0 0
<ACCUMULATED-NET-GAINS> 14515 0
<OVERDISTRIBUTION-GAINS> 0 4427
<ACCUM-APPREC-OR-DEPREC> 780135 79272
<NET-ASSETS> 6783137 1954197
<DIVIDEND-INCOME> 38811 8745
<INTEREST-INCOME> 2917 328
<OTHER-INCOME> 0 0
<EXPENSES-NET> 19968 4416
<NET-INVESTMENT-INCOME> 21760 4657
<REALIZED-GAINS-CURRENT> 18942 (4427)
<APPREC-INCREASE-CURRENT> 700863 79272
<NET-CHANGE-FROM-OPS> 741565 79502
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 4657
<DISTRIBUTIONS-OF-GAINS> 0 0
<DISTRIBUTIONS-OTHER> 0 320
<NUMBER-OF-SHARES-SOLD> 4164355 198190
<NUMBER-OF-SHARES-REDEEMED> 76980 14346
<SHARES-REINVESTED> 4828940 214
<NET-CHANGE-IN-ASSETS> 0 1954197
<ACCUMULATED-NII-PRIOR> 0 0
<ACCUMULATED-GAINS-PRIOR> 0 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 4427 0
<GROSS-ADVISORY-FEES> 17115 3785
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 38423 19300
<AVERAGE-NET-ASSETS> 4214390 1465780
<PER-SHARE-NAV-BEGIN> 10.62 10.00
<PER-SHARE-NII> .04 .03
<PER-SHARE-GAIN-APPREC> 1.95 .62
<PER-SHARE-DIVIDEND> 0 .03
<PER-SHARE-DISTRIBUTIONS> 0 .00
<RETURNS-OF-CAPITAL> 0 .00
<PER-SHARE-NAV-END> 12.61 10.62
<EXPENSE-RATIO> 1.05 1.05
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>

<ARTICLE> 6
<SERIES>
<NUMBER> 16
<NAME> JNL/EAGLE SMALLCAP EQUITY SERIES

<S> <C> <C>
<PERIOD-TYPE> 6-MOS OTHER
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 DEC-31-1996
<INVESTMENTS-AT-COST> 5694744 1603053
<INVESTMENTS-AT-VALUE> 6669744 1816762
<RECEIVABLES> 48947 4836
<ASSETS-OTHER> 294510 288068
<OTHER-ITEMS-ASSETS> 0 0
<TOTAL-ASSETS> 7013201 2109666
<PAYABLE-FOR-SECURITIES> 0 154312
<SENIOR-LONG-TERM-DEBT> 0 0
<OTHER-ITEMS-LIABILITIES> 30343 11265
<TOTAL-LIABILITIES> 30343 165577
<SENIOR-EQUITY> 0 0
<PAID-IN-CAPITAL-COMMON> 5943206 1739717
<SHARES-COMMON-STOCK> 517462 168506
<SHARES-COMMON-PRIOR> 168506 0
<ACCUMULATED-NII-CURRENT> 0 0
<OVERDISTRIBUTION-NII> 11734 0
<ACCUMULATED-NET-GAINS> 76386 0
<OVERDISTRIBUTION-GAINS> 0 9337
<ACCUM-APPREC-OR-DEPREC> 975000 213709
<NET-ASSETS> 6982858 1944089
<DIVIDEND-INCOME> 5765 2525
<INTEREST-INCOME> 3318 753
<OTHER-INCOME> 0 0
<EXPENSES-NET> 20817 4295
<NET-INVESTMENT-INCOME> (11734) (1017)
<REALIZED-GAINS-CURRENT> 85723 (9337)
<APPREC-INCREASE-CURRENT> 761291 213709
<NET-CHANGE-FROM-OPS> 835280 203355
<EQUALIZATION> 0 0
<DISTRIBUTIONS-OF-INCOME> 0 0
<DISTRIBUTIONS-OF-GAINS> 0 0
<DISTRIBUTIONS-OTHER> 0 0
<NUMBER-OF-SHARES-SOLD> 4747096 170418
<NUMBER-OF-SHARES-REDEEMED> 543607 1912
<SHARES-REINVESTED> 0 0
<NET-CHANGE-IN-ASSETS> 5038769 1944089
<ACCUMULATED-NII-PRIOR> 0 0
<ACCUMULATED-GAINS-PRIOR> 0 0
<OVERDISTRIB-NII-PRIOR> 0 0
<OVERDIST-NET-GAINS-PRIOR> 9337 0
<GROSS-ADVISORY-FEES> 17978 3709
<INTEREST-EXPENSE> 0 0
<GROSS-EXPENSE> 38376 18721
<AVERAGE-NET-ASSETS> 4236636 1361089
<PER-SHARE-NAV-BEGIN> 11.54 10.00
<PER-SHARE-NII> .02 (.01)
<PER-SHARE-GAIN-APPREC> 1.97 1.55
<PER-SHARE-DIVIDEND> 0 .00
<PER-SHARE-DISTRIBUTIONS> 0 .00
<RETURNS-OF-CAPITAL> 0 .00
<PER-SHARE-NAV-END> 13.49 11.54
<EXPENSE-RATIO> 1.10 1.10
<AVG-DEBT-OUTSTANDING> 0 0
<AVG-DEBT-PER-SHARE> 0 0

</TABLE>