As filed with the Securities and Exchange Commission on September 18, 1998
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. 15 [X]
----
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 16 [X]
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JNL SERIES TRUST
(Exact Name of Registrant as Specified in Charter)
5901 Executive Drive, Lansing, Michigan 48911
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (517) 394-3400
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
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box)
immediately upon filing pursuant to paragraph (b)
- -----
on (date) pursuant to paragraph (b)
- -----
X 60 days after filing pursuant to paragraph (a)(1)
- -----
on July 1, 1998 pursuant to paragraph (a)(1)
- -----
75 days after filing pursuant to paragraph (a)(2)
- -----
on (date) pursuant to paragraph (a)(2) of Rule 485
- -----
This post-effective amendment designates a new effective date for a
- ----- previously filed post-effective amendment.
Title of Securities Being Registered: Shares of beneficial interest
<PAGE>
JNL SERIES TRUST
CROSS-REFERENCE SHEET
(as required by Rule 495)
Caption in Prospectus or Statement
of Additional Information relating
N-1A Item No. to each Series
- ------------- ------------------------------------
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 Front Cover Page; Investment
Registrant 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 Additional Information;
Securities Performance Advertising for the
Series
Item 7. Purchase of Securities Investment in Trust Shares;
Being Offered 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 Investment Restrictions Applicable
and Policies 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 Investment Adviser and Other
Other Services Services
Item 17. Brokerage Allocation and Investment Adviser and Other
Other Practices Services
Item 18. Capital Stock and Other Additional Information
Securities
Item 19. Purchase, Redemption and Purchases, Redemptions and Pricing
Pricing of Securities of Shares
Being Offered
Item 20. Tax Status Tax Status
Item 21. Underwriters Not Applicable
Item 22. Calculation of Performance Performance
Data
Item 23. Financial Statements Financial Statements
Part C
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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.
<PAGE>
JNL(R) SERIES TRUST
OCTOBER 1, 1998
<PAGE>
PROSPECTUS
October 1, 1998
JNL(R) SERIES TRUST
5901 Executive Drive o Lansing, Michigan 48911
This Prospectus provides you with the basic information you should know
before investing in the JNL Series Trust ("Trust"). You should read it and keep
it for future reference. A Statement of Additional Information, dated October 1,
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 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.
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.
JNL AGGRESSIVE GROWTH SERIES 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 as its investment objective 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 as its investment
objective 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 as its investment objective 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
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.
JNL/S&P CONSERVATIVE GROWTH SERIES I is a non-diversified Series that seeks
as its investment objective capital growth and current income by investing in a
diversified group of underlying Series of the JNL Series Trust.
JNL/S&P MODERATE GROWTH SERIES I is a non-diversified Series that seeks as
its investment objective capital growth. Current income is a secondary
objective. The Series seeks to achieve its objectives by investing in a
diversified group of underlying Series of the JNL Series Trust.
JNL/S&P AGGRESSIVE GROWTH SERIES I is a non-diversified Series that seeks as
its investment objective capital growth by investing in a diversified group of
underlying Series of the JNL Series Trust.
JNL/S&P VERY AGGRESSIVE GROWTH SERIES I is a non-diversified Series that
seeks as its investment objective capital growth by investing in a diversified
group of underlying Series of the JNL Series Trust.
JNL/S&P EQUITY GROWTH SERIES I is a non-diversified Series that seeks as its
investment objective capital growth by investing in a diversified group of
underlying Series of the JNL Series Trust.
JNL/S&P EQUITY AGGRESSIVE GROWTH SERIES I is a non-diversified Series that
seeks as its investment objective capital growth by investing in a diversified
group of underlying Series of the JNL Series Trust.
JNL/S&P CONSERVATIVE GROWTH SERIES II is a non-diversified Series that seeks
as its investment objective capital growth and current income by investing in a
diversified group of underlying Series of the JNL Series Trust.
JNL/S&P MODERATE GROWTH SERIES II is a non-diversified Series that seeks as
its investment objective capital growth. Current income is a secondary
objective. The Series seeks to achieve its objectives by investing in a
diversified group of underlying Series of the JNL Series Trust.
JNL/S&P AGGRESSIVE GROWTH SERIES II is a non-diversified Series that seeks
as its investment objective capital growth by investing in a diversified group
of underlying Series of the JNL Series Trust.
JNL/S&P VERY AGGRESSIVE GROWTH SERIES II is a non-diversified Series that
seeks as its investment objective capital growth by investing in a diversified
group of underlying Series of the JNL Series Trust.
JNL/S&P EQUITY GROWTH SERIES II is a non-diversified Series that seeks as
its investment objective capital growth by investing in a diversified group of
underlying Series of the JNL Series Trust.
JNL/S&P EQUITY AGGRESSIVE GROWTH SERIES II is a non-diversified Series that
seeks as its investment objective capital growth by investing in a diversified
group of underlying Series of the JNL Series Trust.
GOLDMAN SACHS/JNL GROWTH & INCOME SERIES seeks as its investment objective
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 is a non-diversified Series that seeks as
its investment objective 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 is a non-diversified Series that seeks as
its investment objective 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 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.
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. THE JNL/S&P CONSERVATIVE GROWTH
SERIES I, JNL/S&P MODERATE GROWTH SERIES I, JNL/S&P AGGRESSIVE GROWTH SERIES I,
JNL/S&P VERY AGGRESSIVE GROWTH SERIES I, JNL/S&P EQUITY GROWTH SERIES I, JNL/S&P
EQUITY AGGRESSIVE GROWTH SERIES I, JNL/S&P CONSERVATIVE GROWTH SERIES II,
JNL/S&P MODERATE GROWTH SERIES II, JNL/S&P AGGRESSIVE GROWTH SERIES II, JNL/S&P
VERY AGGRESSIVE GROWTH SERIES II, JNL/S&P EQUITY GROWTH SERIES II, AND JNL/S&P
EQUITY AGGRESSIVE GROWTH SERIES II MAY INVEST IN UNDERLYING SERIES OF THE JNL
SERIES TRUST WHOSE ASSETS MAY CONSIST OF 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".)
S&P is a registered trademark of The McGraw-Hill Companies, Inc.
---------------
THE STATEMENT OF ADDITIONAL INFORMATION, DATED OCTOBER 1, 1998,
IS INCORPORATED HEREIN BY REFERENCE.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
TOPIC PAGE
----------------------------------------------------------------- ----
TRUST EXPENSES...................................................
FINANCIAL HIGHLIGHTS.............................................
INVESTMENT OBJECTIVES AND POLICIES...............................
COMMON TYPES OF SECURITIES AND MANAGEMENT PRACTICES..............
MANAGEMENT OF THE TRUST..........................................
INVESTMENT IN TRUST SHARES.......................................
SHARE REDEMPTION.................................................
ADDITIONAL INFORMATION...........................................
PERFORMANCE ADVERTISING FOR THE SERIES...........................
TAX STATUS.......................................................
<PAGE>
TRUST EXPENSES
SHAREHOLDER TRANSACTION EXPENSES
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
ANNUAL SERIES OPERATING EXPENSES (As a percentage of average net assets.)
<TABLE>
<CAPTION>
MANAGEMENT
AND OTHER TOTAL SERIES
ADMINISTRATIVE EXPENSES OPERATING
FEE EXPENSES
-------------- -------- ------------
<S> <C> <C> <C>
JNL Aggressive Growth Series...................... 1.05% 0% 1.05%
JNL Capital Growth Series......................... 1.05% 0% 1.05%
JNL Global Equities Series........................ 1.10% 0% 1.10%
JNL/Alger Growth Series........................... 1.075% 0% 1.075%
JNL/Alliance Growth Series........................ .875% 0% .875%
JNL/Eagle Core Equity Series...................... 1.00% 0% 1.00%
JNL/Eagle SmallCap Equity Series.................. 1.05% 0% 1.05%
JNL/JPM International & Emerging Markets Series... 1.075% 0% 1.075%
JNL/PIMCO Total Return Bond Series................ .80% 0% .80%
JNL/Putnam Growth Series.......................... 1.00% 0% 1.00%
JNL/Putnam Value Equity Series.................... 1.00% 0% 1.00%
JNL/S&P Conservative Growth Series I*............. .20% 0% .20%
JNL/S&P Moderate Growth Series I*................. .20% 0% .20%
JNL/S&P Aggressive Growth Series I*............... .20% 0% .20%
JNL/S&P Very Aggressive Growth Series I*.......... .20% 0% .20%
JNL/S&P Equity Growth Series I*................... .20% 0% .20%
JNL/S&P Equity Aggressive Growth Series I*........ .20% 0% .20%
JNL/S&P Conservative Growth Series II*............ .20% 0% .20%
JNL/S&P Moderate Growth Series II*................ .20% 0% .20%
JNL/S&P Aggressive Growth Series II*.............. .20% 0% .20%
JNL/S&P Very Aggressive Growth Series II*......... .20% 0% .20%
JNL/S&P Equity Growth Series II*.................. .20% 0% .20%
JNL/S&P Equity Aggressive Growth Series II*....... .20% 0% .20%
Goldman Sachs/JNL Growth & Income Series.......... 1.025% 0% 1.025%
Lazard/JNL Small Cap Value Series................. 1.15% 0% 1.15%
Lazard/JNL Mid Cap Value Series................... 1.075% 0% 1.075%
PPM America/JNL Balanced Series................... .84% 0% .84%
PPM America/JNL High Yield Bond Series............ .84% 0% .84%
PPM America/JNL Money Market Series............... .70% 0% .70%
Salomon Brothers/JNL Balanced Series.............. .90% 0% .90%
Salomon Brothers/JNL Global Bond Series........... .95% 0% .95%
Salomon Brothers/JNL High Yield Bond Series....... .90% 0% .90%
Salomon Brothers/JNL U.S. Government & Quality
Bond Series..................................... .80% 0% .80%
T. Rowe Price/JNL Established Growth Series....... .95% 0% .95%
T. Rowe Price/JNL International Equity Investment
Series.......................................... 1.18% 0% 1.18%
T. Rowe Price/JNL Mid-Cap Growth Series........... 1.05% 0% 1.05%
</TABLE>
Explanation of Annual Series Operating Expenses
Effective October 1, 1998, each Series pays Jackson National Financial Services,
LLC, the adviser, an Administrative Fee of .10% for certain services provided to
the Trust by Jackson National Financial Services, LLC. The Annual Series
Operating Expenses have been restated to reflect the Administrative Fee.
* Underlying Series Expenses
The expenses shown above are the annual operating expenses for these Series.
Because these Series invest in other Series of the JNL Series Trust, these
Series will indirectly bear their pro rata share of fees and expenses of the
underlying Series in addition to the expenses shown.
The table below shows the pro rata share of expenses that these Series would
indirectly bear if they invested in a hypothetical mix of underlying Series. The
table below does not include these Series' annual operating expenses which are
shown above. The actual expenses of each of these Series will be based on the
actual mix of underlying Series in which it invests. The actual expenses may be
greater or lesser than those shown.
JNL/S&P Conservative Growth Series I...................... .964%
JNL/S&P Moderate Growth Series I.......................... 1.002%
JNL/S&P Aggressive Growth Series I........................ 1.044%
JNL/S&P Very Aggressive Growth Series I................... 1.061%
JNL/S&P Equity Growth Series I............................ 1.053%
JNL/S&P Equity Aggressive Growth Series I................. 1.054%
JNL/S&P Conservative Growth Series II..................... .948%
JNL/S&P Moderate Growth Series II......................... .971%
JNL/S&P Aggressive Growth Series II....................... 1.009%
JNL/S&P Very Aggressive Growth Series II.................. 1.021%
JNL/S&P Equity Growth Series II........................... 1.036%
JNL/S&P Equity Aggressive Growth Series II................ 1.029%
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 $ 33 $58 $128
JNL Capital Growth Series.................................. $ 11 $ 33 $58 $128
JNL Global Equities Series................................. $ 11 $ 35 $61 $134
JNL/Alger Growth Series.................................... $ 11 $ 34 $59 $131
JNL/Alliance Growth Series................................. $ 9 $ 28 N/A N/A
JNL/Eagle Core Equity Series............................... $ 10 $ 32 $55 $122
JNL/Eagle SmallCap Equity Series........................... $ 11 $ 33 $58 $128
JNL/JPM International & Emerging Markets Series............ $ 11 $ 34 N/A N/A
JNL/PIMCO Total Return Bond Series......................... $ 8 $ 26 N/A N/A
JNL/Putnam Growth Series................................... $ 10 $ 32 $55 $122
JNL/Putnam Value Equity Series............................. $ 10 $ 32 $55 $122
JNL/S&P Conservative Growth Series I*...................... $ 2 $ 6 N/A N/A
JNL/S&P Moderate Growth Series I*.......................... $ 2 $ 6 N/A N/A
JNL/S&P Aggressive Growth Series I*........................ $ 2 $ 6 N/A N/A
JNL/S&P Very Aggressive Growth Series I*................... $ 2 $ 6 N/A N/A
JNL/S&P Equity Growth Series I*............................ $ 2 $ 6 N/A N/A
JNL/S&P Equity Aggressive Growth Series I*................. $ 2 $ 6 N/A N/A
JNL/S&P Conservative Growth Series II*..................... $ 2 $ 6 N/A N/A
JNL/S&P Moderate Growth Series II*......................... $ 2 $ 6 N/A N/A
JNL/S&P Aggressive Growth Series II*....................... $ 2 $ 6 N/A N/A
JNL/S&P Very Aggressive Growth Series II*.................. $ 2 $ 6 N/A N/A
JNL/S&P Equity Growth Series II*........................... $ 2 $ 6 N/A N/A
JNL/S&P Equity Aggressive Growth Series II*................ $ 2 $ 6 N/A N/A
Goldman Sachs/JNL Growth & Income Series................... $ 10 $ 33 N/A N/A
Lazard/JNL Small Cap Value Series.......................... $ 12 $ 37 N/A N/A
Lazard/JNL Mid Cap Value Series............................ $ 11 $ 34 N/A N/A
PPM America/JNL Balanced Series............................ $ 9 $ 27 $47 $104
PPM America/JNL High Yield Bond Series..................... $ 9 $ 27 $47 $104
PPM America/JNL Money Market Series........................ $ 7 $ 22 $39 $87
Salomon Brothers/JNL Balanced Series....................... $ 9 $ 29 N/A N/A
Salomon Brothers/JNL Global Bond Series.................... $ 10 $ 30 $53 $117
Salomon Brothers/JNL High Yield Bond Series................ $ 9 $ 29 N/A N/A
Salomon Brothers/JNL U.S. Government & Quality Bond Series. $ 8 $ 26 $44 $99
T. Rowe Price/JNL Established Growth Series................ $ 10 $ 30 $53 $117
T. Rowe Price/JNL International Equity Investment Series... $ 12 $ 37 $65 $143
T. Rowe Price/JNL Mid-Cap Growth Series.................... $ 11 $ 33 $58 $128
</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.
* This example does not include these Series' pro rata share of the expenses
of the underlying Series in which they invest.
<PAGE>
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 each of the periods shown below, except the six month
period ended 6/30/98, has been audited by PricewaterhouseCoopers LLP,
independent accountants, and should be read in conjunction with the financial
statements and notes thereto, together with the report of PricewaterhouseCoopers
LLP thereon, in the Annual Report included in the Statement of Additional
Information. The information for the six months ended June 30, 1998 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 (UNAUDITED)
<TABLE>
<CAPTION>
Income from Operations
----------------------------------
Net realized &
unrealized gains
Net Asset Net on investments
value, investment & foreign
beginning income currency
Period or Year Ended of period (loss) related items
- -------------------- --------- ------------- ----------------
<S> <C> <C> <C>
JNL Aggressive Growth Series
Six months ended 6/30/98 ........................... $ 14.53 $ (0.03) $ 4.39
Year ended 12/31/97 ................................ 13.38 0.04 1.65
Period from 4/1/96 to 12/31/96 ..................... 13.13 0.05 1.10
Period from 5/15/95* to 3/31/96 .................... 10.00 0.01 3.53
JNL Capital Growth Series
Six months ended 6/30/98 ........................... 16.50 (0.06) 2.90
Year ended 12/31/97 ................................ 14.46 (0.06) 2.23
Period from 4/1/96 to 12/31/96 ..................... 13.86 0.06 0.70
Period from 5/15/95* to 3/31/96 .................... 10.00 -- 4.70
JNL Global Equities Series
Six months ended 6/30/98 ........................... 17.48 0.06 4.61
Year ended 12/31/97 ................................ 15.20 0.07 2.84
Period from 4/1/96 to 12/31/96 ..................... 13.75 0.03 2.72
Period from 5/15/95* to 3/31/96 .................... 10.00 0.10 4.02
JNL/Alger Growth Series
Six months ended 6/30/98 ........................... 13.56 (0.01) 3.42
Year ended 12/31/97 ................................ 11.16 (0.01) 2.93
Period from 4/1/96 to 12/31/96 ..................... 10.38 -- 0.78
Period from 10/16/95* to 3/31/96 ................... 10.00 -- 0.38
JNL/Alliance Growth Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.01 1.27
JNL/Eagle Core Equity Series
Six months ended 6/30/98 ........................... 13.75 0.06 1.39
Year ended 12/31/97 ................................ 10.62 0.08 3.35
Period from 9/16/96* to 12/31/96 ................... 10.00 0.03 0.62
JNL/Eagle SmallCap Equity Series
Six months ended 6/30/98 ........................... 14.73 (0.04) 1.28
Year ended 12/31/97 ................................ 11.54 (0.07) 3.26
Period from 9/16/96* to 12/31/96 ................... 10.00 (0.01) 1.55
JNL/JPM International & Emerging Markets Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.07 0.16
JNL/PIMCO Total Return Bond Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.15 0.18
</TABLE>
<TABLE>
<CAPTION>
Distributions
---------------------------------------------------
From net
From net realized gains
investment on investment Return of
Period or Year Ended income transactions Capital
- -------------------- ---------- -------------- ----------------
<S> <C> <C> <C>
JNL Aggressive Growth Series
Six months ended 6/30/98 ........................... $ -- $ -- $ --
Year ended 12/31/97 ................................ -- (0.54) --
Period from 4/1/96 to 12/31/96 ..................... (0.05) (0.71) (0.14)
Period from 5/15/95* to 3/31/96 .................... -- (0.41) --
JNL Capital Growth Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.02) (0.04) (0.07)
Period from 4/1/96 to 12/31/96 ..................... -- (0.16) --
Period from 5/15/95* to 3/31/96 .................... -- (0.84) --
JNL Global Equities Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ -- (0.63) --
Period from 4/1/96 to 12/31/96 ..................... (0.08) (0.90) (0.32)
Period from 5/15/95* to 3/31/96 .................... -- (0.37) --
JNL/Alger Growth Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ -- (0.52) --
Period from 4/1/96 to 12/31/96 ..................... -- -- --
Period from 10/16/95* to 3/31/96 ................... -- -- --
JNL/Alliance Growth Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
JNL/Eagle Core Equity Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.08) (0.22) --
Period from 9/16/96* to 12/31/96 ................... (0.03) -- --
JNL/Eagle SmallCap Equity Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ -- -- --
Period from 9/16/96* to 12/31/96 ................... -- -- --
JNL/JPM International & Emerging Markets Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
JNL/PIMCO Total Return Bond Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
</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 for the periods ended June 30, 1998, December 31, 1996 and March
31, 1996.
(c) Computed after giving effect to the Adviser's expense reimbursement and
fees paid indirectly.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ratios and Supplemental Data
---------------------------------------------
Ratio of net Ratio of net
operating investment
Net asset Net assets, expenses to income to
value, end Total Return end of period average net average net Portfolio
Period or Year Ended of period (a) (in thousands) assets (b) (c) assets (b) (c) turnover
- -------------------- --------- ------------ ----------------------------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
JNL Aggressive Growth Series
Six months ended 6/30/98 .................... $ 18.89 30.01 % $ 117,259 1.10 % (0.35)% 67.57 %
Year ended 12/31/97 ......................... 14.53 12.67 % 78,870 1.10 % 0.39 % 137.26 %
Period from 4/1/96 to 12/31/96 .............. 13.38 8.72 % 29,555 1.09 % 0.77 % 85.22 %
Period from 5/15/95* to 3/31/96 ............. 13.13 35.78 % 8,527 1.09 % 0.27 % 163.84 %
JNL Capital Growth Series
Six months ended 6/30/98 .................... 19.34 17.21 % 94,397 1.07 % (0.70)% 59.38 %
Year ended 12/31/97 ......................... 16.50 15.01 % 73,749 1.10 % (0.30)% 131.43 %
Period from 4/1/96 to 12/31/96 .............. 14.46 5.45 % 36,946 1.09 % 0.91 % 115.88 %
Period from 5/15/95* to 3/31/96 ............. 13.86 47.94 % 9,578 1.09 % (0.49)% 128.56 %
JNL Global Equities Series
Six months ended 6/30/98 .................... 22.15 26.72 % 219,243 1.14 % 0.60 % 32.13 %
Year ended 12/31/97 ......................... 17.48 19.12 % 151,050 1.15 % 0.33 % 97.21 %
Period from 4/1/96 to 12/31/96 .............. 15.2 19.99 % 48,638 1.14 % 0.37 % 52.02 %
Period from 5/15/95* to 3/31/96 ............. 13.75 41.51 % 16,141 1.15 % 0.39 % 142.36 %
JNL/Alger Growth Series
Six months ended 6/30/98 .................... 16.97 25.15 % 127,203 1.05 % (0.08)% 43.09 %
Year ended 12/31/97 ......................... 13.56 26.20 % 85,877 1.10 % (0.07)% 125.44 %
Period from 4/1/96 to 12/31/96 .............. 11.16 7.51 % 38,252 1.07 % (0.02)% 59.92 %
Period from 10/16/95* to 3/31/96 ............ 10.38 3.80 % 8,649 1.03 % (0.17)% 50.85 %
JNL/Alliance Growth Series
Period from 3/2/98* to 6/30/98 .............. 11.28 12.80 % 2,553 0.93 % 0.24 % 142.01 %
JNL/Eagle Core Equity Series
Six months ended 6/30/98 .................... 15.20 10.55 % 23,599 1.03 % 1.09 % 33.43 %
Year ended 12/31/97 ......................... 13.75 32.35 % 11,896 1.05 % 1.00 % 51.48 %
Period from 9/16/96* to 12/31/96 ............ 10.62 6.47 % 1,954 1.05 % 1.10 % 1.36 %
JNL/Eagle SmallCap Equity Series
Six months ended 6/30/98 .................... 15.97 8.42 % 25,517 1.10 % (0.57)% 30.46 %
Year ended 12/31/97 ......................... 14.73 27.64 % 13,493 1.10 % (0.54)% 60.78 %
Period from 9/16/96* to 12/31/96 ............ 11.54 15.40 % 1,944 1.10 % (0.26)% 28.01 %
JNL/JPM International & Emerging Markets Series
Period from 3/2/98* to 6/30/98 .............. 10.23 2.30 % 5,129 1.13 % 2.04 % 129.65 %
JNL/PIMCO Total Return Bond Series
Period from 3/2/98* to 6/30/98 .............. 10.33 3.30 % 3,731 0.85 % 4.88 % 371.87 %
</TABLE>
Ratio information assuming
no expense reimbursement
or fees paid indirectly
-----------------------
Ratio of net
Ratio of investment
expenses to income to
average net average net
assets (b) assets (b)
---------- ----------
JNL Aggressive Growth Series
Six months ended 6/30/98 .................... 1.10 % (0.35)%
Year ended 12/31/97 ......................... 1.17 % 0.32 %
Period from 4/1/96 to 12/31/96 .............. 1.40 % 0.46 %
Period from 5/15/95* to 3/31/96 ............. 2.77 % (1.41)%
JNL Capital Growth Series
Six months ended 6/30/98 .................... 1.08 % (0.71)%
Year ended 12/31/97 ......................... 1.11 % (0.31)%
Period from 4/1/96 to 12/31/96 .............. 1.27 % 0.73 %
Period from 5/15/95* to 3/31/96 ............. 2.08 % (1.48)%
JNL Global Equities Series
Six months ended 6/30/98 .................... 1.26 % 0.48 %
Year ended 12/31/97 ......................... 1.37 % 0.11 %
Period from 4/1/96 to 12/31/96 .............. 1.63 % (0.12)%
Period from 5/15/95* to 3/31/96 ............. 2.25 % (0.71)%
JNL/Alger Growth Series
Six months ended 6/30/98 .................... 1.05 % (0.08)%
Year ended 12/31/97 ......................... 1.10 % (0.07)%
Period from 4/1/96 to 12/31/96 .............. 1.19 % (0.14)%
Period from 10/16/95* to 3/31/96 ............ 1.89 % (1.03)%
JNL/Alliance Growth Series
Period from 3/2/98* to 6/30/98 .............. 2.73 % (1.56)%
JNL/Eagle Core Equity Series
Six months ended 6/30/98 .................... 1.22 % 0.90 %
Year ended 12/31/97 ......................... 1.54 % 0.51 %
Period from 9/16/96* to 12/31/96 ............ 4.57 % (2.42)%
JNL/Eagle SmallCap Equity Series
Six months ended 6/30/98 .................... 1.23 % (0.70)%
Year ended 12/31/97 ......................... 1.51 % (0.95)%
Period from 9/16/96* to 12/31/96 ............ 4.77 % (3.93)%
JNL/JPM International & Emerging Markets Series
Period from 3/2/98* to 6/30/98 .............. 2.36 % 0.81 %
JNL/PIMCO Total Return Bond Series
Period from 3/2/98* to 6/30/98 .............. 2.06 % 3.67 %
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (continued)
<TABLE>
<CAPTION>
Income from Operations
---------------------------------
Net realized &
unrealized gains
Net Asset Net on investments
value, investment & foreign
beginning income currency
Period or Year ended of period (loss) related items
- -------------------- ---------- ----------- ----------------
<S> <C> <C> <C>
JNL/Putnam Growth Series
Six months ended 6/30/98 ........................... $ 16.99 $ -- $ 3.85
Year ended 12/31/97 ................................ 14.21 0.04 3.07
Period from 4/1/96 to 12/31/96 ..................... 12.50 0.04 2.12
Period from 5/15/95* to 3/31/96 .................... 10.00 0.01 3.66
JNL/Putnam Value Equity Series
Six months ended 6/30/98 ........................... 16.82 0.09 1.32
Year ended 12/31/97 ................................ 14.50 0.13 3.03
Period from 4/1/96 to 12/31/96 ..................... 12.77 0.10 1.97
Period from 5/15/95* to 3/31/96 .................... 10.00 0.23 2.86
Goldman Sachs/JNL Growth & Income Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.03 (0.29)
Lazard/JNL Small Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 -- (0.36)
Lazard/JNL Mid Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.01 (0.34)
PPM America/JNL Balanced Series
Six months ended 6/30/98 ........................... 13.06 0.24 0.79
Year ended 12/31/97 ................................ 11.92 0.36 1.83
Period from 4/1/96 to 12/31/96 ..................... 11.17 0.10 0.98
Period from 5/15/95* to 3/31/96 .................... 10.00 0.25 1.40
PPM America/JNL High Yield Bond Series
Six months ended 6/30/98 ........................... 11.48 0.43 0.16
Year ended 12/31/97 ................................ 10.67 0.59 1.02
Period from 4/1/96 to 12/31/96 ..................... 10.23 0.51 0.64
Period from 5/15/95* to 3/31/96 .................... 10.00 0.73 0.04
PPM America/JNL Money Market Series
Period ended 6/30/98 ............................... 1.00 0.02 --
Year ended 12/31/97 ................................ 1.00 0.05 --
Period from 4/1/96 to 12/31/96 ..................... 1.00 0.04 --
Period from 5/15/95* to 3/31/96 .................... 1.00 0.04 --
Salomon Brothers/JNL Balanced Series
Period from 3/2/98* to 6/30/98 .................... 10.00 0.11 0.12
Salomon Brothers/JNL Global Bond Series
Six months ended 6/30/98 ........................... 11.12 0.39 (0.11)
Year ended 12/31/97 ................................ 10.63 0.54 0.59
Period from 4/1/96 to 12/31/96 ..................... 10.46 0.42 0.70
Period from 5/15/95* to 3/31/96 .................... 10.00 0.81 0.24
</TABLE>
<TABLE>
<CAPTION>
Distributions
---------------------------------------------------
From net
From net realized gains
investment on investment Return of
Period or Year Ended income transactions Capital
- -------------------- ---------- -------------- ----------------
<S> <C> <C> <C>
JNL/Putnam Growth Series
Six months ended 6/30/98 ........................... $ -- $ -- $ --
Year ended 12/31/97 ................................ (0.02) (0.31) --
Period from 4/1/96 to 12/31/96 ..................... (0.05) (0.40) --
Period from 5/15/95* to 3/31/96 .................... -- (1.17) --
JNL/Putnam Value Equity Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.13) (0.71) --
Period from 4/1/96 to 12/31/96 ..................... (0.15) (0.19) --
Period from 5/15/95* to 3/31/96 .................... (0.17) (0.15) --
Goldman Sachs/JNL Growth & Income Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
Lazard/JNL Small Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
Lazard/JNL Mid Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
PPM America/JNL Balanced Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.36) (0.69) --
Period from 4/1/96 to 12/31/96 ..................... (0.15) (0.18) --
Period from 5/15/95* to 3/31/96 .................... (0.19) (0.29) --
PPM America/JNL High Yield Bond Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.59) (0.21) --
Period from 4/1/96 to 12/31/96 ..................... (0.69) (0.02) --
Period from 5/15/95* to 3/31/96 .................... (0.54) -- --
PPM America/JNL Money Market Series
Period ended 6/30/98 ............................... (0.02) -- --
Year ended 12/31/97 ................................ (0.05) -- --
Period from 4/1/96 to 12/31/96 ..................... (0.04) -- --
Period from 5/15/95* to 3/31/96 .................... (0.04) -- --
Salomon Brothers/JNL Balanced Series
Period from 3/2/98* to 6/30/98 .................... -- -- --
Salomon Brothers/JNL Global Bond Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.58) (0.05) (0.01)
Period from 4/1/96 to 12/31/96 ..................... (0.69) (0.26) --
Period from 5/15/95* to 3/31/96 .................... (0.56) (0.03) --
</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 for the periods ended June 30, 1998, December 31, 1996 and March
31, 1996.
(c) Computed after giving effect to the Adviser's expense reimbursement and
fees paid indirectly.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ratio and Supplemental Data
----------------------------------------------------
Ratio of net Ratio of net
operating investment
Net asset Total Net assets, expenses to income to
value, end Return end of period average net average net Portfolio
Period or Year ended of period (a) (in thousands) assets (b)(c) assets (b)(c) turnover
- -------------------- --------- ------ -------------- ------------- ------------- --------
<S> <C> <C> <C> <C> <C> <C>
JNL/Putnam Growth Series
Six months ended 6/30/98 ........................... 20.84 22.66 % $137,503 1.00 % (0.03)% 25.98 %
Year ended 12/31/97 ................................ 16.99 21.88 % 83,612 1.05 % 0.31 % 194.81 %
Period from 4/1/96 to 12/31/96 ..................... 14.21 17.28 % 22,804 1.04 % 0.94 % 184.33 %
Period from 5/15/95* to 3/31/96 .................... 12.5 37.69 % 2,518 0.95 % 0.28 % 255.03 %
JNL/Putnam Value Equity Series
Six months ended 6/30/98 ........................... 18.23 8.38 % 167,142 0.99 % 1.03 % 43.15 %
Year ended 12/31/97 ................................ 16.82 21.82 % 108,565 1.03 % 1.43 % 112.54 %
Period from 4/1/96 to 12/31/96 ..................... 14.50 16.25 % 17,761 0.85 % 2.29 % 13.71 %
Period from 5/15/95* to 3/31/96 .................... 12.77 31.14 % 3,365 0.87 % 2.33 % 30.12 %
Goldman Sachs/JNL Growth & Income Series
Period from 3/2/98* to 6/30/98 ..................... 9.74 (2.60)% 3,245 1.07 % 1.22 % 12.69 %
Lazard/JNL Small Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 9.64 (3.60)% 4,929 1.20 % 0.01 % 9.20 %
Lazard/JNL Mid Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 9.67 (3.30)% 4,550 1.12 % 0.43 % 17.46 %
PPM America/JNL Balanced Series
Six months ended 6/30/98 ........................... 14.09 7.89 % 83,779 0.84 % 3.88 % 20.34 %
Year ended 12/31/97 ................................ 13.06 18.43 % 59,694 0.93 % 3.72 % 160.88 %
Period from 4/1/96 to 12/31/96 ..................... 11.92 9.72 % 24,419 1.04 % 2.39 % 158.15 %
Period from 5/15/95* to 3/31/96 .................... 11.17 16.60 % 4,761 1.01 % 2.99 % 115.84 %
PPM America/JNL High Yield Bond Series
Six months ended 6/30/98 ........................... 12.07 5.14 % 97,227 0.83 % 8.54 % 131.14 %
Year ended 12/31/97 ................................ 11.48 15.05 % 62,712 0.90 % 8.15 % 189.25 %
Period from 4/1/96 to 12/31/96 ..................... 10.67 11.24 % 13,396 0.88 % 8.64 % 113.08 %
Period from 5/15/95* to 3/31/96 .................... 10.23 7.82 % 6,156 0.88 % 8.34 % 186.21 %
PPM America/JNL Money Market Series
Period ended 6/30/98 ............................... 1.00 2.48 % 53,839 0.73 % 4.94 % --
Year ended 12/31/97 ................................ 1.00 5.01 % 41,808 0.75 % 4.92 % --
Period from 4/1/96 to 12/31/96 ..................... 1.00 3.61 % 23,752 0.75 % 4.75 % --
Period from 5/15/95* to 3/31/96 .................... 1.00 4.59 % 6,816 0.75 % 5.06 % --
Salomon Brothers/JNL Balanced Series
Period from 3/2/98* to 6/30/98 .................... 10.23 2.30 % 2,088 0.95 % 4.29 % 7.56 %
Salomon Brothers/JNL Global Bond Series
Six months ended 6/30/98 ........................... 11.40 2.52 % 46,871 0.90 % 7.08 % 167.19 %
Year ended 12/31/97 ................................ 11.12 10.66 % 36,725 1.00 % 6.83 % 134.55 %
Period from 4/1/96 to 12/31/96 ..................... 10.63 10.68 % 12,483 0.99 % 7.52 % 109.85 %
Period from 5/15/95* to 3/31/96 .................... 10.46 10.74 % 6,380 1.00 % 9.01 % 152.89 %
</TABLE>
<TABLE>
<CAPTION>
Ratio of information assuming
no expense reimbursement
or fees paid indirectly
-----------------------------
Ratio of net
Ratio of investment
expenses to income to
average net average net
Period or Year ended assets (b) assets (b)
- -------------------- ---------- -------------
<S> <C> <C>
JNL/Putnam Growth Series
Six months ended 6/30/98 ........................... 1.00 % (0.03)%
Year ended 12/31/97 ................................ 1.05 % 0.31 %
Period from 4/1/96 to 12/31/96 ..................... 1.27 % 0.71 %
Period from 5/15/95* to 3/31/96 .................... 5.38 % (4.15)%
JNL/Putnam Value Equity Series
Six months ended 6/30/98 ........................... 0.99 % 1.03 %
Year ended 12/31/97 ................................ 1.09 % 1.37 %
Period from 4/1/96 to 12/31/96 ..................... 1.53 % 1.61 %
Period from 5/15/95* to 3/31/96 .................... 2.28 % 0.91 %
Goldman Sachs/JNL Growth & Income Series
Period from 3/2/98* to 6/30/98 ..................... 2.57 % (0.28)%
Lazard/JNL Small Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 1.92 % (0.71)%
Lazard/JNL Mid Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 1.98 % (0.43)%
PPM America/JNL Balanced Series
Six months ended 6/30/98 ........................... 0.85 % 3.87 %
Year ended 12/31/97 ................................ 0.94 % 3.71 %
Period from 4/1/96 to 12/31/96 ..................... 1.22 % 2.21 %
Period from 5/15/95* to 3/31/96 .................... 3.71 % 0.29 %
PPM America/JNL High Yield Bond Series
Six months ended 6/30/98 ........................... 0.83 % 8.54 %
Year ended 12/31/97 ................................ 0.90 % 8.15 %
Period from 4/1/96 to 12/31/96 ..................... 1.21 % 8.31 %
Period from 5/15/95* to 3/31/96 .................... 1.50 % 7.72 %
PPM America/JNL Money Market Series
Period ended 6/30/98 ............................... 0.74 % 4.93 %
Year ended 12/31/97 ................................ 0.76 % 4.91 %
Period from 4/1/96 to 12/31/96 ..................... 0.85 % 4.65 %
Period from 5/15/95* to 3/31/96 .................... 1.30 % 4.51 %
Salomon Brothers/JNL Balanced Series
Period from 3/2/98* to 6/30/98 .................... 3.69 % 1.55 %
Salomon Brothers/JNL Global Bond Series
Six months ended 6/30/98 ........................... 0.98 % 7.00 %
Year ended 12/31/97 ................................ 1.07 % 6.76 %
Period from 4/1/96 to 12/31/96 ..................... 1.44 % 7.07 %
Period from 5/15/95* to 3/31/96 .................... 2.14 % 7.87 %
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (continued)
<TABLE>
<CAPTION>
Income from Operations
---------------------------------
Net realized &
unrealized gains
Net Asset Net on investments
value, investment & foreign
beginning income currency
Period or Year ended of period (loss) related items
- -------------------- ---------- ----------- ----------------
<S> <C> <C> <C>
Salomon Brothers/JNL High Yield Bond Series
Period from 3/2/98* to 6/30/98 .................... $ 10.00 $ 0.22 $ (0.08)
Salomon Brothers/JNL U.S. Government &
Quality Bond Series
Six months ended 6/30/98 ........................... 10.69 0.29 0.11
Year ended 12/31/97 ................................ 10.20 0.44 0.49
Period from 4/1/96 to 12/31/96 ..................... 10.09 0.24 0.24
Period from 5/15/95* to 3/31/96 .................... 10.00 0.45 0.02
T. Rowe Price/JNL Established Growth Series
Six months ended 6/30/98 ........................... 15.62 0.04 2.65
Year ended 12/31/97 ................................ 12.56 0.06 3.64
Period from 4/1/96 to 12/31/96 ..................... 11.36 0.03 1.81
Period from 5/15/95* to 3/31/96 .................... 10.00 0.07 2.68
T. Rowe Price/JNL International Equity
Investment Series
Six months ended 6/30/98 ........................... 12.09 0.09 1.54
Year ended 12/31/97 ................................ 12.08 0.09 0.23
Period from 4/1/96 to 12/31/96 ..................... 11.25 0.06 0.90
Period from 5/15/95* to 3/31/96 .................... 10.00 0.04 1.21
T. Rowe Price/JNL Mid-Growth Series
Six months ended 6/30/98 ........................... 17.37 (0.03) 2.92
Year ended 12/31/97 ................................ 14.89 (0.03) 2.74
Period from 4/1/96 to 12/31/96 ..................... 13.43 (0.05) 1.92
Period from 5/15/95* to 3/31/96 .................... 10.00 0.06 3.90
JNL/S&P Conservative Growth Series I
Period from 4/9/98* to 6/30/98 .................... 10.00 -- 0.05
JNL/S&P Moderate Growth Series I
Period from 4/8/98* to 6/30/98 .................... 10.00 -- 0.14
JNL/S&P Aggressive Growth Series I
Period from 4/8/98* to 6/30/98 .................... 10.00 -- 0.23
JNL/S&P Very Aggressive Growth Series I
Period from 4/1/98* to 6/30/98 .................... 10.00 -- 0.34
JNL/S&P Equity Growth Series I
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.03)
JNL/S&P Equity Aggressive Growth Series I
Period from 4/15/98* to 6/30/98 ................... 10.00 -- 0.07
</TABLE>
<TABLE>
<CAPTION>
Distributions
---------------------------------------------------
From net
From net realized gains
investment on investment Return of
Period or Year Ended income transactions Capital
- -------------------- ---------- -------------- ----------------
<S> <C> <C> <C>
Salomon Brothers/JNL High Yield Bond Series
Period from 3/2/98* to 6/30/98 .................... $ -- $ -- $ --
Salomon Brothers/JNL U.S. Government &
Quality Bond Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.42) (0.02) --
Period from 4/1/96 to 12/31/96 ..................... (0.34) (0.03) --
Period from 5/15/95* to 3/31/96 .................... (0.34) (0.04) --
T. Rowe Price/JNL Established Growth Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.03) (0.61) --
Period from 4/1/96 to 12/31/96 ..................... (0.04) (0.09) (0.51)
Period from 5/15/95* to 3/31/96 .................... (0.06) (1.33) --
T. Rowe Price/JNL International Equity
Investment Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.08) (0.23) --
Period from 4/1/96 to 12/31/96 ..................... (0.12) (0.01) --
Period from 5/15/95* to 3/31/96 .................... -- -- --
T. Rowe Price/JNL Mid-Growth Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ -- (0.23) --
Period from 4/1/96 to 12/31/96 ..................... (0.05) (0.36) --
Period from 5/15/95* to 3/31/96 .................... -- (0.53) --
JNL/S&P Conservative Growth Series I
Period from 4/9/98* to 6/30/98 .................... -- -- --
JNL/S&P Moderate Growth Series I
Period from 4/8/98* to 6/30/98 .................... -- -- --
JNL/S&P Aggressive Growth Series I
Period from 4/8/98* to 6/30/98 .................... -- -- --
JNL/S&P Very Aggressive Growth Series I
Period from 4/1/98* to 6/30/98 .................... -- -- --
JNL/S&P Equity Growth Series I
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Equity Aggressive Growth Series I
Period from 4/15/98* to 6/30/98 ................... -- -- --
</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 for the periods ended June 30, 1998, December 31, 1996 and March
31, 1996.
(c) Computed after giving effect to the Adviser's expense reimbursement and
fees paid indirectly.
See notes to the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (continued)
<TABLE>
<CAPTION>
Ratios and Supplemental Data
-----------------------------------------------------
Ratio of net Ratio of net
operating investment
Net asset Total Net assets, expenses to income to
value, end Return end of period average net average net Portfolio
Period or Year ended of period (a) (in thousands) assets (b)(c) assets (b)(c) turnover
- -------------------- ---------- ------ -------------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Salomon Brothers/JNL High Yield Bond Series
Period from 3/2/98* to 6/30/98 .................... $ 10.14 1.40 % $ 5,752 0.95 % 7.01 % 21.25 %
Salomon Brothers/JNL U.S. Government &
Quality Bond Series
Six months ended 6/30/98 ........................... 11.09 3.74 % 35,617 0.85 % 5.51 % 324.09 %
Year ended 12/31/97 ................................ 10.69 9.16 % 25,389 0.85 % 5.99 % 378.59 %
Period from 4/1/96 to 12/31/96 ..................... 10.20 4.82 % 9,832 0.84 % 5.72 % 218.50 %
Period from 5/15/95* to 3/31/96 .................... 10.09 4.65 % 3,007 0.84 % 5.41 % 253.37 %
T. Rowe Price/JNL Established Growth Series
Six months ended 6/30/98 ........................... 18.31 17.22 % 183,194 0.92 % 0.48 % 24.38 %
Year ended 12/31/97 ................................ 15.62 29.47 % 124,022 0.98 % 0.43 % 47.06 %
Period from 4/1/96 to 12/31/96 ..................... 12.56 16.12 % 32,291 1.00 % 0.59 % 36.41 %
Period from 5/15/95* to 3/31/96 .................... 11.36 28.23 % 8,772 1.00 % 0.75 % 101.13 %
T. Rowe Price/JNL International Equity
Investment Series
Six months ended 6/30/98 ........................... 13.72 13.48 % 88,621 1.22 % 1.32 % 10.23 %
Year ended 12/31/97 ................................ 12.09 2.65 % 78,685 1.24 % 0.74 % 18.81 %
Period from 4/1/96 to 12/31/96 ..................... 12.08 8.54 % 48,204 1.25 % 1.09 % 5.93 %
Period from 5/15/95* to 3/31/96 .................... 11.25 12.50 % 24,211 1.25 % 0.78 % 16.45 %
T. Rowe Price/JNL Mid-Growth Series
Six months ended 6/30/98 ........................... 20.26 16.64 % 172,816 1.02 % (0.32)% 22.85 %
Year ended 12/31/97 ................................ 17.37 18.21 % 127,052 1.06 % (0.26)% 41.43 %
Period from 4/1/96 to 12/31/96 ..................... 14.89 13.91 % 47,104 1.10 % (0.18)% 25.05 %
Period from 5/15/95* to 3/31/96 .................... 13.43 40.06 % 10,545 1.10 % 0.82 % 66.04 %
JNL/S&P Conservative Growth Series I
Period from 4/9/98* to 6/30/98 .................... 10.05 0.50 % 1,764 0.20 % 0.05 % 0.17 %
JNL/S&P Moderate Growth Series I
Period from 4/8/98* to 6/30/98 .................... 10.14 1.40 % 1,722 0.20 % (0.20)% 4.05 %
JNL/S&P Aggressive Growth Series I
Period from 4/8/98* to 6/30/98 .................... 10.23 2.30 % 1,029 0.20 % (0.20)% 0.08 %
JNL/S&P Very Aggressive Growth Series I
Period from 4/1/98* to 6/30/98 .................... 10.34 3.40 % 729 0.20 % (0.20)% 32.92 %
JNL/S&P Equity Growth Series I
Period from 4/13/98* to 6/30/98 ................... 9.97 (0.30)% 1,196 0.20 % (0.20)% 8.59 %
JNL/S&P Equity Aggressive Growth Series I
Period from 4/15/98* to 6/30/98 ................... 10.07 0.70 % 625 0.20 % (0.20)% 0.06 %
</TABLE>
<TABLE>
<CAPTION>
Ratio information assuming
no expense reimbursement
or fees paid indirectly
--------------------------
Ratio of net
Ratio of investment
expenses to income to
average net average net
Period or Year ended assets (b) assets (b)
- -------------------- ---------- ------------
<S> <C> <C>
Salomon Brothers/JNL High Yield Bond Series
Period from 3/2/98* to 6/30/98 .................... 1.64 % 6.32 %
Salomon Brothers/JNL U.S. Government &
Quality Bond Series
Six months ended 6/30/98 ........................... 0.88 % 5.48 %
Year ended 12/31/97 ................................ 0.96 % 5.88 %
Period from 4/1/96 to 12/31/96 ..................... 1.37 % 5.19 %
Period from 5/15/95* to 3/31/96 .................... 2.53 % 3.72 %
T. Rowe Price/JNL Established Growth Series
Six months ended 6/30/98 ........................... 0.92 % 0.48 %
Year ended 12/31/97 ................................ 0.98 % 0.43 %
Period from 4/1/96 to 12/31/96 ..................... 1.11 % 0.48 %
Period from 5/15/95* to 3/31/96 .................... 2.09 % (0.34)%
T. Rowe Price/JNL International Equity
Investment Series
Six months ended 6/30/98 ........................... 1.28 % 1.26 %
Year ended 12/31/97 ................................ 1.32 % 0.66 %
Period from 4/1/96 to 12/31/96 ..................... 1.29 % 1.05 %
Period from 5/15/95* to 3/31/96 .................... 2.14 % (0.11)%
T. Rowe Price/JNL Mid-Growth Series
Six months ended 6/30/98 ........................... 1.02 % (0.32)%
Year ended 12/31/97 ................................ 1.06 % (0.26)%
Period from 4/1/96 to 12/31/96 ..................... 1.14 % (0.22)%
Period from 5/15/95* to 3/31/96 .................... 2.10 % (0.18)%
JNL/S&P Conservative Growth Series I
Period from 4/9/98* to 6/30/98 .................... 0.20 % 0.05 %
JNL/S&P Moderate Growth Series I
Period from 4/8/98* to 6/30/98 .................... 0.20 % (0.20)%
JNL/S&P Aggressive Growth Series I
Period from 4/8/98* to 6/30/98 .................... 0.20 % (0.20)%
JNL/S&P Very Aggressive Growth Series I
Period from 4/1/98* to 6/30/98 .................... 0.20 % (0.20)%
JNL/S&P Equity Growth Series I
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Equity Aggressive Growth Series I
Period from 4/15/98* to 6/30/98 ................... 0.20 % (0.20)%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Income from Operations
---------------------------------
Net realized &
unrealized gains
Net Asset Net on investments
value, investment & foreign
beginning income currency
Period or Year ended of period (loss) related items
- -------------------- ---------- ----------- ----------------
<S> <C> <C> <C>
JNL/S&P Conservative Growth Series II
Period from 4/13/98* to 6/30/98 ................... $ 10.00 $ -- $ (0.10)
JNL/S&P Moderate Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.09)
JNL/S&P Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.15)
JNL/S&P Very Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- 0.15
JNL/S&P Equity Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.20)
JNL/S&P Equity Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.08)
</TABLE>
<TABLE>
<CAPTION>
Distributions
---------------------------------------------------
From net
From net realized gains
investment on investment Return of
Period or Year Ended income transactions Capital
- -------------------- ---------- -------------- ----------------
<S> <C> <C> <C>
JNL/S&P Conservative Growth Series II
Period from 4/13/98* to 6/30/98 ................... $ -- $ -- $ --
JNL/S&P Moderate Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Very Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Equity Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Equity Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
</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 for the periods ended June 30, 1998, December 31, 1996 and March
31, 1996.
(c) Computed after giving effect to the Adviser's expense reimbursement and
fees paid indirectly.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ratios and Supplemental Data
----------------------------------------------------
Ratio of net Ratio of net
operating investment
Net asset Total Net assets, expenses to income to
value, end Return end of period average net average net Portfolio
Period or Year ended of period (a) (in thousands) assets (b)(c) assets (b)(c) turnover
- -------------------- --------- ------ -------------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
JNL/S&P Conservative Growth Series II
Period from 4/13/98* to 6/30/98 ................... $ 9.90 (1.00)% $ 2,316.00 0.20%. (0.20)% 2.07 %
JNL/S&P Moderate Growth Series II
Period from 4/13/98* to 6/30/98 ................... 9.91 (0.90)% 1,671.00 0.20 % (0.20)% 1.72 %
JNL/S&P Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 9.85 (1.50)% 294.00 0.20 % (0.20)% 1.42 %
JNL/S&P Very Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.15 1.50 % 249.00 0.20 % (0.20)% 2.03 %
JNL/S&P Equity Growth Series II
Period from 4/13/98* to 6/30/98 ................... 9.80 (2.00)% 454.00 0.20 % (0.20)% 1.71 %
JNL/S&P Equity Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 9.92 (0.80)% 237.00 0.20 % (0.20)% 2.04 %
</TABLE>
<TABLE>
<CAPTION>
Ratio information assuming
no expense reimbursement
or fees paid indirectly
--------------------------
Ratio of net
Ratio of investment
expenses to income to
average net average net
Period or Year ended assets (b) assets (b)
- -------------------- ----------- -------------
<S> <C> <C>
JNL/S&P Conservative Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Moderate Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Very Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Equity Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Equity Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
</TABLE>
<PAGE>
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.
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.
DIVERSIFICATION
Certain of the Series qualify as a "diversified company" as such term is
defined in the Investment Company Act of 1940, as amended (the "1940 Act").
Certain Series are non-diversified for purposes of the 1940 Act because they
invest in the securities of a limited number of issuers. 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. No
Series, except the PPM America/JNL Money Market Series, will invest more than
25% of its total assets in any particular industry (other than U.S. Government
securities).
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.
INVESTING IN UNDERLYING SERIES
Each of the JNL/S&P Conservative Growth Series I, JNL/S&P Moderate Growth
Series I, JNL/S&P Aggressive Growth Series I, JNL/S&P Very Aggressive Growth
Series I, JNL/S&P Equity Growth Series I, JNL/S&P Equity Aggressive Growth
Series I, JNL/S&P Conservative Growth Series II, JNL/S&P Moderate Growth Series
II, JNL/S&P Aggressive Growth Series II, JNL/S&P Very Aggressive Growth Series
II, JNL/S&P Equity Growth Series II, and JNL/S&P Equity Aggressive Growth Series
II (collectively, the "JNL/S&P Series") concentrates its investments in the
shares of Underlying Series, so each Series' investment performance is directly
related to the investment performance of the Underlying Series in which it is
invested. The ability of each Series to meet its investment objective is
directly related to the ability of the Underlying Series to meet their
objectives as well as the allocation among those Underlying Series. There can be
no assurance that the investment objective of any of the Series or the
Underlying Series will be achieved.
As a shareholder of an Underlying Series, a Series will bear its pro rata
share of the Underlying Series expenses, which could result in duplication of
certain fees, including management and administrative fees. Although a Series
may invest in a number of Underlying Series, this investment strategy does not
eliminate investment risk. Investment decisions by the sub-advisers of the
Underlying Series are made independently of the investment decisions of Standard
& Poor's Investment Advisory Services, Inc., as sub-adviser to the JNL/S&P
Series.
JNL AGGRESSIVE GROWTH SERIES
The investment objective of the JNL Aggressive Growth Series is long-term
growth of capital. It is a 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. As of December 31, 1997, the MidCap Index included
companies with capitalizations between approximately $213 million and $13.7
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.
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. Each Series may invest up to 15% of its net assets in
illiquid securities.
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. 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% 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% 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 Series
may also purchase restricted securities (subject to a limit on all illiquid
securities of 10% 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 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").
Up to 15% of the Series' net assets may be invested in illiquid 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:
o expected earnings-per-share growth greater than the average of the S&P
500 Composite Stock Price Index ("S&P 500"); or
o 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:
o 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
o 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 Index (or other similar index if
this index is not available); or
o per share going concern value (as estimated by the sub-adviser) that
exceeds book value and market value; or
o 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 may invest up to 15% of its
net assets in illiquid securities.
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 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 may invest up to 15% of its net assets in
illiquid securities.
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.
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 may invest up to 15% of its net assets in illiquid 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 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. The Series may invest all of its
assets in mortgage- or other asset-backed securities. The Series may invest all
of its assets in zero coupon bonds or strips. 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 up to 15% of its net assets in illiquid
securities.
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 invest up to 15% of its net assets in illiquid 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 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. The Series may
invest up to 15% of its net assets in illiquid 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.
JNL/S&P CONSERVATIVE GROWTH SERIES I
The investment objective of the JNL/S&P Conservative Growth Series I is to
seek capital growth and current income. It is a non-diversified Series that
pursues its investment objective by investing in a diversified group of Series
of the JNL Series Trust ("Underlying Series"). The Underlying Series in which
the JNL/S&P Conservative Growth Series I may invest are 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/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, and T. Rowe
Price/JNL Mid-Cap Growth Series.
Under normal circumstances, the Series allocates approximately 55% to 65% of
its assets to Underlying Series that invest primarily in equity securities, 30%
to 40% to Underlying Series that invest primarily in fixed-income securities and
0% to 10% to Underlying Series that invest primarily in money market funds.
Within these three asset classes, the Series remains flexible with respect to
the percentage it will allocate among particular Underlying Series. When the
sub-adviser believes that a temporary defensive position is desirable, the
Series may invest up to 100% of its assets in cash or cash equivalents.
The Series seeks to achieve capital growth through its investments in
Underlying Series that invest primarily in equity securities. Such investments
may include Series that invest in stocks of large established companies as well
as those that invest in stocks of smaller companies with above-average growth
potential.
The Series seeks to achieve current income through its investment in
Underlying Series that invest primarily in fixed-income securities. Such
investments may include Underlying Series that invest in foreign bonds
denominated in currencies other than U.S. dollars as well as Underlying Series
that invest exclusively in bonds of U.S. issuers. The Series may invest in
Underlying Series that invest exclusively in investment-grade securities, as
well as Underlying Series that invest in high-yield bonds.
The allocation of assets in the Series is expected to result in less risk
than that incurred by JNL/S&P Moderate Growth Series I, JNL/S&P Aggressive
Growth Series I, JNL/S&P Very Aggressive Growth Series I, JNL/S&P Equity Growth
Series I or JNL/S&P Equity Aggressive Growth Series I.
JNL/S&P MODERATE GROWTH SERIES I
The investment objective of the JNL/S&P Moderate Growth Series I is to seek
capital growth. Current income is a secondary objective. It is a non-diversified
Series that pursues its investment objectives by investing in a diversified
group of Series of the JNL Series Trust ("Underlying Series"). The Underlying
Series in which the JNL/S&P Moderate Growth Series I may invest are 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/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, and T. Rowe Price/JNL Mid-Cap Growth Series.
Under normal circumstances, the Series allocates approximately 70% to 80% of
its assets to Underlying Series that invest primarily in equity securities and
20% to 30% to Underlying Series that invest primarily in fixed-income
securities. Within these asset classes, the Series remains flexible with respect
to the percentage it will allocate among particular Underlying Series. When the
sub-adviser believes that a temporary defensive position is desirable, the
Series may invest up to 100% of its assets in cash or cash equivalents.
The Series seeks to achieve capital growth through its investments in
Underlying Series that invest primarily in equity securities. Such investments
may include Underlying Series that invest in stocks of large established
companies as well as those that invest in stocks of smaller companies with
above-average growth potential.
The Series seeks to achieve current income through its investment in
Underlying Series that invest primarily in fixed-income securities. Such
investments may include Underlying Series that invest in foreign bonds
denominated in currencies other than U.S. dollars as well as Underlying Series
that invest exclusively in bonds of U.S. issuers. The Series may invest in
Underlying Series that invest exclusively in investment-grade securities, as
well as Underlying Series that invest in high-yield bonds.
The allocation of assets in the Series is expected to result in less risk
than that incurred by JNL/S&P Aggressive Growth Series I, JNL/S&P Very
Aggressive Growth Series I, JNL/S&P Equity Growth Series I or JNL/S&P Equity
Aggressive Growth Series I, but more risk than JNL/S&P Conservative Growth
Series I.
JNL/S&P AGGRESSIVE GROWTH SERIES I
The primary investment objective of the JNL/S&P Aggressive Growth Series I
is to seek capital growth. It is a non-diversified Series that pursues its
investment objective by investing in a diversified group of Series of the JNL
Series Trust ("Underlying Series"). The Underlying Series in which the JNL/S&P
Aggressive Growth Series I may invest are 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/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, and T. Rowe Price/JNL Mid-Cap
Growth Series.
Under normal circumstances, the Series allocates approximately 85% to 95% of
its assets to Underlying Series that invest primarily in equity securities and
5% to 15% to Underlying Series that invest primarily in fixed-income securities.
Within these asset classes, the Series remains flexible with respect to the
percentage it will allocate among particular Underlying Series. When the
sub-adviser believes that a temporary defensive position is desirable, the
Series may invest up to 100% of its assets in cash or cash equivalents.
The Series seeks to achieve capital growth primarily through its investments
in Underlying Series that invest primarily in equity securities. Such
investments may include Underlying Series that invest in stocks of large
established companies as well as those that invest in stocks of smaller
companies with above-average growth potential.
The Series seeks to achieve capital growth secondarily through its
investment in Underlying Series that invest primarily in fixed-income
securities. Such investments may include Underlying Series that invest in
foreign bonds denominated in currencies other than U.S. dollars as well as
Underlying Series that invest exclusively in bonds of U.S. issuers. The Series
may invest in Underlying Series that invest exclusively in investment-grade
securities, as well as Underlying Series that invest in high-yield bonds.
The allocation of assets in the Series is expected to result in less risk
than that incurred by JNL/S&P Very Aggressive Growth Series I, JNL/S&P Equity
Growth Series I or JNL/S&P Equity Aggressive Growth Series I, but more risk than
JNL/S&P Conservative Growth Series I or JNL/S&P Moderate Growth Series I.
JNL/S&P VERY AGGRESSIVE GROWTH SERIES I
The investment objective of the JNL/S&P Very Aggressive Growth Series I is
to seek capital growth. It is a non-diversified Series that pursues its
investment objective by investing in a diversified group of Series of the JNL
Series Trust ("Underlying Series"). The Underlying Series in which the JNL/S&P
Very Aggressive Growth Series I may invest are 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/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, and T. Rowe Price/JNL Mid-Cap
Growth Series.
Under normal circumstances, the Series allocates up to 100% of its assets to
Underlying Series that invest primarily in equity securities. The Series remains
flexible with respect to the percentage it will allocate among particular
Underlying Series. When the sub-adviser believes that a temporary defensive
position is desirable, the Series may invest up to 100% of its assets in cash or
cash equivalents.
The Series seeks to achieve capital growth through its investments in
Underlying Series that invest primarily in equity securities. Such investments
may include Underlying Series that invest in stocks of large established
companies as well as those that invest in stocks of smaller companies with
above-average growth potential.
The allocation of assets in the Series is expected to result in more risk
than that incurred by JNL/S&P Conservative Growth Series I, JNL/S&P Moderate
Growth Series I, JNL/S&P Aggressive Growth Series I, JNL/S&P Equity Growth
Series I or JNL/S&P Equity Aggressive Growth Series I.
JNL/S&P EQUITY GROWTH SERIES I
The investment objective of the JNL/S&P Equity Growth Series I is to seek
capital growth. It is a non-diversified Series that pursues its investment
objective by investing in a diversified group of Series of the JNL Series Trust
("Underlying Series"). The Underlying Series in which the JNL/S&P Equity Growth
Series I may invest are 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/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, and T. Rowe Price/JNL Mid-Cap Growth
Series.
Under normal circumstances, the Series allocates 100% of its assets to
Underlying Series that invest primarily in equity securities. The Series remains
flexible with respect to the percentage it will allocate among particular
Underlying Series. When the sub-adviser believes that a temporary defensive
position is desirable, the Series may invest up to 100% of its assets in cash or
cash equivalents.
The Series invests in Underlying Series that invest primarily in equity
securities. Such investments may include Underlying Series that invest in stocks
of large established companies as well as those that invest in stocks of smaller
companies with above-average growth potential.
The allocation of assets in the Series is expected to result in more risk
than that incurred by JNL/S&P Conservative Growth Series I, JNL/S&P Moderate
Growth Series I and JNL/S&P Aggressive Growth Series I, but less risk than
JNL/S&P Equity Aggressive Growth Series I or JNL/S&P Very Aggressive Growth
Series I.
JNL/S&P EQUITY AGGRESSIVE GROWTH SERIES I
The investment objective of the JNL/S&P Equity Aggressive Growth Series I is
to seek capital growth. It is a non-diversified Series that pursues its
investment objective by investing in a diversified group of Series of the JNL
Series Trust ("Underlying Series"). The Underlying Series in which the JNL/S&P
Equity Aggressive Growth Series I may invest are 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/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, and T. Rowe
Price/JNL Mid-Cap Growth Series.
Under normal circumstances, the Series allocates 100% of its assets to
Underlying Series that invest primarily in equity securities. The Series remains
flexible with respect to the percentage it will allocate among particular
Underlying Series. When the sub-adviser believes that a temporary defensive
position is desirable, the Series may invest up to 100% of its assets in cash or
cash equivalents.
The Series invests in Underlying Series that invest primarily in equity
securities. Such investments may include Underlying Series that invest in stocks
of large established companies as well as those that invest in stock of smaller
companies with above-average growth potential.
The allocation of assets in the Series is expected to result in more risk
than that incurred by JNL/S&P Conservative Growth Series I, JNL/S&P Moderate
Growth Series I, JNL/S&P Aggressive Growth Series I or JNL/S&P Equity Growth
Series I, but less risk than JNL/S&P Very Aggressive Growth Series I.
JNL/S&P CONSERVATIVE GROWTH SERIES II
The investment objective of the JNL/S&P Conservative Growth Series II is to
seek capital growth and current income. It is a non-diversified Series that
pursues its investment objective by investing in a diversified group of Series
of the JNL Series Trust ("Underlying Series"). The Underlying Series in which
the JNL/S&P Conservative Growth Series II may invest are the 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, and T.
Rowe Price/JNL Mid-Cap Growth Series.
Under normal circumstances, the Series allocates approximately 60% to 70% of
its assets to Underlying Series that invest primarily in equity securities and
30% to 40% to Underlying Series that invest primarily in fixed-income
securities. Within these asset classes, the Series remains flexible with respect
to the percentage it will allocate among particular Underlying Series. When the
sub-adviser believes that a temporary defensive position is desirable, the
Series may invest up to 100% of its assets in cash or cash equivalents.
The Series seeks to achieve capital growth through its investments in
Underlying Series that invest primarily in equity securities. Such investments
may include Underlying Series that invest in stocks of large established
companies as well as those that invest in stocks of smaller companies with
above-average growth potential.
The Series seeks to achieve current income through its investment in
Underlying Series that invest primarily in fixed-income securities. Such
investments may include Underlying Series that invest in foreign bonds
denominated in currencies other than U.S. dollars as well as Underlying Series
that invest exclusively in bonds of U.S. issuers. The Series may invest in
Underlying Series that invest exclusively in investment-grade securities, as
well as Underlying Series that invest in high-yield bonds.
The allocation of assets in the Series is expected to result in less risk
than that incurred by JNL/S&P Moderate Growth Series II, JNL/S&P Aggressive
Growth Series II, JNL/S&P Very Aggressive Growth Series II, JNL/S&P Equity
Growth Series II or JNL/S&P Equity Aggressive Growth Series II.
JNL/S&P MODERATE GROWTH SERIES II
The investment objective of the JNL/S&P Moderate Growth Series II is to seek
capital growth. Current income is a secondary objective. It is a non-diversified
Series that pursues its investment objectives by investing in a diversified
group of Series of the JNL Series Trust ("Underlying Series"). The Underlying
Series in which the JNL/S&P Moderate Growth Series II may invest are the 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, and T. Rowe Price/JNL Mid-Cap Growth Series.
Under normal circumstances, the Series allocates approximately 70% to 80% of
its assets to Underlying Series that invest primarily in equity securities and
20% to 30% to Underlying Series that invest primarily in fixed-income
securities. Within these asset classes, the Series remains flexible with respect
to the percentage it will allocate among particular Underlying Series. When the
sub-adviser believes that a temporary defensive position is desirable, the
Series may invest up to 100% of its assets in cash or cash equivalents.
The Series seeks to achieve capital growth through its investments in
Underlying Series that invest primarily in equity securities. Such investments
may include Underlying Series that invest in stocks of large established
companies as well as those that invest in stocks of smaller companies with
above-average growth potential.
The Series seeks to achieve current income through its investment in
Underlying Series that invest primarily in fixed-income securities. Such
investments may include Underlying Series that invest in foreign bonds
denominated in currencies other than U.S. dollars as well as Underlying Series
that invest exclusively in bonds of U.S. issuers. The Series may invest in
Underlying Series that invest exclusively in investment-grade securities, as
well as Underlying Series that invest in high-yield bonds.
The allocation of assets in the Series is expected to result in less risk
than that incurred by JNL/S&P Aggressive Growth Series II, JNL/S&P Very
Aggressive Growth Series II, JNL/S&P Equity Growth Series II or JNL/S&P Equity
Aggressive Growth Series II, but more risk than JNL/S&P Conservative Growth
Series II.
JNL/S&P AGGRESSIVE GROWTH SERIES II
The primary investment objective of the JNL/S&P Aggressive Growth Series II
is to seek capital growth. It is a non-diversified Series that pursues its
investment objective by investing in a diversified group of Series of the JNL
Series Trust ("Underlying Series"). The Underlying Series in which the JNL/S&P
Aggressive Growth Series II may invest are the 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, and T. Rowe Price/JNL
Mid-Cap Growth Series.
Under normal circumstances, the Series allocates approximately 85% to 95% of
its assets to Underlying Series that invest primarily in equity securities and
5% to 15% to Underlying Series that invest primarily in fixed-income securities.
Within these asset classes, the Series remains flexible with respect to the
percentage it will allocate among particular Underlying Series. When the
sub-adviser believes that a temporary defensive position is desirable, the
Series may invest up to 100% of its assets in cash or cash equivalents.
The Series seeks to achieve capital growth primarily through its investments
in Underlying Series that invest primarily in equity securities. Such
investments may include Underlying Series that invest in stocks of large
established companies as well as those that invest in stocks of smaller
companies with above-average growth potential.
The Series seeks to achieve capital growth secondarily through its
investment in Underlying Series that invest primarily in fixed-income
securities. Such investments may include Underlying Series that invest in
foreign bonds denominated in currencies other than U.S. dollars as well as
Underlying Series that invest exclusively in bonds of U.S. issuers. The Series
may invest in Underlying Series that invest exclusively in investment-grade
securities, as well as Underlying Series that invest in high-yield bonds.
The allocation of assets in the Series is expected to result in less risk
than that incurred by JNL/S&P Very Aggressive Growth Series II, JNL/S&P Equity
Growth Series II or JNL/S&P Equity Aggressive Growth Series II, but more risk
than JNL/S&P Conservative Growth Series II or JNL/S&P Moderate Growth Series II.
JNL/S&P VERY AGGRESSIVE GROWTH SERIES II
The investment objective of the JNL/S&P Very Aggressive Growth Series II is
to seek capital growth. It is a non-diversified Series that pursues its
investment objective by investing in a diversified group of Series of the JNL
Series Trust ("Underlying Series"). The Underlying Series in which the JNL/S&P
Very Aggressive Growth Series II may invest are the 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, and T.
Rowe Price/JNL Mid-Cap Growth Series.
Under normal circumstances, the Series allocates up to 100% of its assets to
Underlying Series that invest primarily in equity securities. The Series remains
flexible with respect to the percentage it will allocate among particular
Underlying Series. When the sub-adviser believes that a temporary defensive
position is desirable, the Series may invest up to 100% of its assets in cash or
cash equivalents.
The Series seeks to achieve capital growth through its investments in
Underlying Series that invest primarily in equity securities. Such investments
may include Underlying Series that invest in stocks of large established
companies as well as those that invest in stocks of smaller companies with
above-average growth potential.
The allocation of assets in the Series is expected to result in more risk
than that incurred by JNL/S&P Conservative Growth Series II, JNL/S&P Moderate
Growth Series II, JNL/S&P Aggressive Growth Series II, JNL/S&P Equity Growth
Series II or JNL/S&P Equity Aggressive Growth Series II.
JNL/S&P EQUITY GROWTH SERIES II
The investment objective of the JNL/S&P Equity Growth Series II is to seek
capital growth. It is a non-diversified Series that pursues its investment
objective by investing in a diversified group of Series of the JNL Series Trust
("Underlying Series"). The Underlying Series in which the JNL/S&P Equity Growth
Series II may invest are the 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, and T. Rowe Price/JNL Mid-Cap Growth
Series.
Under normal circumstances, the Series allocates 100% of its assets to
Underlying Series that invest primarily in equity securities. The Series remains
flexible with respect to the percentage it will allocate among particular
Underlying Series. When the sub-adviser believes that a temporary defensive
position is desirable, the Series may invest up to 100% of its assets in cash or
cash equivalents.
The Series invests in Underlying Series that invest primarily in equity
securities. Such investments may include Underlying Series that invest in stocks
of large established companies as well as those that invest in stocks of smaller
companies with above-average growth potential.
The allocation of assets in the Series is expected to result in more risk
than that incurred by JNL/S&P Conservative Growth Series II, JNL/S&P Moderate
Growth Series II and JNL/S&P Aggressive Growth Series II, but less risk than
JNL/S&P Equity Aggressive Growth Series II or JNL/S&P Very Aggressive Growth
Series II.
JNL/S&P EQUITY AGGRESSIVE GROWTH SERIES II
The investment objective of the JNL/S&P Equity Aggressive Growth Series II
is to seek capital growth. It is a non-diversified Series that pursues its
investment objective by investing in a diversified group of Series of the JNL
Series Trust ("Underlying Series"). The Underlying Series in which the JNL/S&P
Equity Aggressive Growth Series II may invest are the 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, and T.
Rowe Price/JNL Mid-Cap Growth Series.
Under normal circumstances, the Series allocates 100% of its assets to
Underlying Series that invest primarily in equity securities. The Series remains
flexible with respect to the percentage it will allocate among particular
Underlying Series. When the sub-adviser believes that a temporary defensive
position is desirable, the Series may invest up to 100% of its assets in cash or
cash equivalents.
The Series invests in Underlying Series that invest primarily in equity
securities. Such investments may include Underlying Series that invest in stocks
of large established companies as well as those that invest in stocks of smaller
companies with above-average growth potential.
The allocation of assets in the Series is expected to result in more risk
than that incurred by JNL/S&P Conservative Growth Series II, JNL/S&P Moderate
Growth Series II, JNL/S&P Aggressive Growth Series II or JNL/S&P Equity Growth
Series II, but less risk than JNL/S&P Very Aggressive Growth Series II.
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 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 up to 15% of its net assets in illiquid securities.
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 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 at the time of
purchase 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 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. The
Series may invest up to 15% of its net assets in illiquid securities.
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. The Series may
invest up to 15% of its net assets in illiquid 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.
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.
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 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 debt obligations. The Series may invest without limit in zero
coupon bonds. The Series may invest up to 15% of its net assets in illiquid
securities. 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.
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. The Series may invest without limit in zero coupon bonds. The
Series may invest up to 15% of its net assets in illiquid securities. 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:
o Obligations issued or guaranteed as to principal and interest by the
U.S. Government, its agencies and instrumentalities.
o Obligations, such as time deposits, certificates of deposit and
bankers acceptances, issued by U.S. banks and savings banks that are
members of the Federal Deposit Insurance Corporation, including their
foreign branches and foreign subsidiaries, and issued by domestic and
foreign branches of foreign banks.
o Corporate obligations, including commercial paper, of domestic and
foreign issuers.
o Obligations issued or guaranteed by one or more foreign governments or
any of their political subdivisions, agencies or instrumentalities,
including obligations of supranational entities.
o 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. The Series may invest
up to 10% of its net assets in illiquid securities.
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 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.
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
Series' sub-adviser and the Trust's investment adviser have entered into an
agreement with the sub-adviser's 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 likely to lead to a weakened capacity to make principal
and interest payments than is the case with higher grade debt securities.
The Series may purchase U.S. Government obligations and mortgage-backed
securities. 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 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 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 invest up to 15% of its net
assets in illiquid securities. 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.
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 without limit in zero coupon securities,
pay-in-kind bonds and deferred payment securities, 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 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. 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.
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.
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 invest up to 15% of its net assets in illiquid
securities. 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 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. The
Series may invest up to 15% of its net assets in illiquid securities.
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, 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. The
Series may invest up to 15% of its net assets in illiquid securities.
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.
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 undervalued 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. The Series may invest up to
15% of its net assets in illiquid securities.
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.
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.
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.
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. 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.
During the period ended December 31, 1997, 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 not rated by an established rating
service, determined on a dollar weighted average, were:
PERCENTAGE OF NET ASSETS
-------------------------------------
PPM America/JNL Salomon
PPM America/JNL High Yield Bond Brothers/JNL
S&P RATING Balanced Series Series Global Bond Series
--------------- ----------------- ------------------ ------------------
AAA............ 35.16% 0.00% 27.71%
AA............. 0.00% 0.00% 0.38%
A.............. 0.00% 0.00% 1.58%
BBB............ 0.00% 0.16% 2.83%
BB............. 3.39% 26.98% 3.40%
B.............. 6.72% 51.18% 23.35%
CCC............ 0.00% 0.00% 0.16%
CC............. 0.00% 0.00% 0.00%
C.............. 0.00% 0.00% 0.00%
D.............. 0.00% 0.00% 0.00%
Not Rated...... 3.59% 16.42% 26.93%
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.
INFLATION INDEXED BONDS. A Series may purchase inflation-indexed bonds.
Inflation-indexed bonds are fixed income securities whose principal value is
periodically adjusted according to the rate of inflation. Such bonds generally
are issued at an interest rate lower than typical bonds, but are expected to
retain their principal value over time. The interest rate on these bonds is
fixed at issuance, but over the life of the bond the interest may be paid on an
increasing principal value, which has been adjusted for inflation. While these
securities are expected to be protected from long-term inflationary trends,
short-term increases in inflation may lead to a decline in value. If interest
rates rise due to reasons other than inflation (for example, due to changes in
currency exchange rates), investors in these securities may not be protected to
the extent that the increase is not reflected in the bond's inflation measure.
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 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.
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 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.
PASSIVE FOREIGN INVESTMENT COMPANIES. A Series may purchase the securities
of certain foreign investment funds or trusts called passive foreign investment
companies. Such trusts have been the only or primary way to invest in certain
countries. In addition to bearing their proportionate share of the trust's
expenses (management fees and operating expenses), shareholders will also
indirectly bear similar expenses of such trusts.
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. 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. (See "Series
Transactions and Brokerage").
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.
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.
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. Unless otherwise stated herein, 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. 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.
INVESTMENT RISKS
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.
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 Series which invest primarily in
foreign securities 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.
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 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.
MANAGEMENT OF THE TRUST
INVESTMENT ADVISER
Under Massachusetts law and the Trust's Declaration of Trust and By-Laws,
the management of the business and affairs of the Trust is the responsibility of
the Trustees.
Jackson National Financial Services, LLC ("JNFSLLC"), 5901 Executive Drive,
Lansing, Michigan 48911, is the investment adviser to the Trust and provides the
Trust with professional investment supervision and management. JNFSLLC is a
wholly owned subsidiary of Jackson National Life Insurance Company, which is in
turn wholly owned by Prudential Corporation plc, a life insurance company in the
United Kingdom. Jackson National Financial Services, Inc. served as investment
adviser to the Trust from the inception of the Trust until July 1, 1998, when it
transferred its duties as investment adviser and its professional staff for
investment advisory services to JNFSLLC.
JNFSLLC provides preparation of financial statements, tax services, and
regulatory reports for the Trust. JNFSLLC also selects, contracts with and
compensates sub-advisers to manage the investment and reinvestment of the assets
of the Series of the Trust. JNFSLLC 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, JNFSLLC receives a fee from the Trust
computed separately for each Series. The fee for each Series is stated as an
annual percentage 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 JNFSLLC. The
Series managed by Standard & Poor's Investment Advisory Services, Inc. will
indirectly bear their pro rata share of fees of the underlying Series in
addition to the fees shown for such Series.
<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
JNL/S&P Conservative Growth
I......................... .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Moderate Growth I... .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Aggressive Growth I. .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Very Aggressive
Growth I.................. .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Equity Growth I..... .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Equity Aggressive
Growth I.................. .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Conservative
Growth II................. .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Moderate Growth II.. .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Aggressive
Growth II................. .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Very Aggressive
Growth II................. .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Equity Growth II.... .20 .20 .20 .20 .20 .20 .20 .20 .15
JNL/S&P Equity Aggressive
Growth II................. .20 .20 .20 .20 .20 .20 .20 .20 .15
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>
YEAR 2000. The Trust's operations depend on proper processing by computer
systems, including those of JNFSLLC and the Trust's service providers. JNFSLLC
has made compliance with the Year 2000 issue a high priority and is taking steps
that it believes are reasonably designed to ensure that correct processing will
occur across the change in millenniums. JNFSLLC has also been informed that
comparable steps are being taken by the Trust's other major service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Trust.
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 JNFSLLC. 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 JNFSLLC, 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 November 30, 1997, had
approximately $7.7 billion under management: $5.5 billion in mutual fund
accounts and $2.2 billion in other advisory accounts. Alger Management is a
wholly owned subsidiary of Fred Alger & Company, Incorporated 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 $140 billion in assets as of January 1998.
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 Aggressive Growth Series, the JNL Capital Growth Series
and the JNL Global Equities Series. Janus Capital is an investment adviser with
approximately $67 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 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 JNFSLLC, 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 approximately
$190 billion in various currencies and markets. PPM currently manages over $32
billion of Jackson National Life Insurance Company assets. Additionally, PPM
manages assets of over $8 billion for other affiliated companies and over $1
billion 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 $235
billion in assets under management as of December 31, 1997. Putnam is a
subsidiary of Putnam Investment, Inc., which is 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.
---------------
*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.
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 Series. SBAM is an indirect wholly
owned subsidiary of Travelers Group Inc. which is a publicly traded financial
services holding company. 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. As of December 31, 1997, SBAM and
SBAM's investment affiliates managed approximately $26.6 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 Travelers Group 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.
Standard & Poor's Investment Advisory Services, Inc. ("SPIAS"), located at
25 Broadway, New York, New York 10004, serves as sub-adviser to the JNL/S&P
Conservative Growth Series I, JNL/S&P Moderate Growth Series I, JNL/S&P
Aggressive Growth Series I, JNL/S&P Very Aggressive Growth Series I, JNL/S&P
Equity Growth Series I, JNL/S&P Equity Aggressive Growth Series I, JNL/S&P
Conservative Growth Series II, JNL/S&P Moderate Growth Series II, JNL/S&P
Aggressive Growth Series II, JNL/S&P Very Aggressive Growth Series II, JNL/S&P
Equity Growth Series II, and JNL/S&P Equity Aggressive Growth Series II. SPIAS
was established in 1995 to provide investment advice to the financial community.
SPIAS is a subsidiary of The McGraw-Hill Companies, Inc. and is affiliated with
S&P. SPIAS operates independently of and has no access to ratings, analysis or
other information supplied by S&P in connection with its ratings business,
except to the extent such information is made available by S&P to the general
public.
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 $125 billion as of September 30, 1997 for
approximately 6 million individual and institutional investor accounts,
including limited and real estate partnerships and other mutual funds.
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 $33 billion under
management as of September 30, 1997 in its offices in Baltimore, London, Tokyo,
Hong Kong and Singapore.
T. Rowe provides certain administrative support to Price-Fleming for a fee
of .15% of the market value of all assets in equity accounts, .15% of the market
value of all assets in active fixed income accounts, and .035% of the market
value of all assets in passive fixed income accounts under Price-Fleming's
management. Additional investment research and administrative support for equity
investments in provided to Price-Fleming by Fleming Investment Management
Limited ("FIM") and Jardine Fleming International Holdings Limited ("JFIH"), for
which each receives from Price-Fleming a fee of .075% of the market value of all
assets in equity accounts under Price-Fleming's management. Fleming
International Asset Management Limited ("FIAM") and JFIH provide research and
administration support for fixed income accounts for which each receive a fee of
.075% of the market value of all assets in active fixed income accounts and
.0175% of such market value in passive fixed income accounts under
Price-Fleming's management. FIM and JFIH are wholly owned subsidiaries of
Flemings and Jardine Fleming, respectively, and FIAM is an indirect subsidiary
of Flemings.
PORTFOLIO MANAGEMENT
The following individuals are primarily responsible for the day-to-day
management of the particular Series as indicated below.
JNL AGGRESSIVE GROWTH SERIES
Warren B. Lammert, Portfolio Manager of Janus Capital, 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. Mr. Lammert has had
responsibility for the day-to-day management of the Series since the inception
of the Series.
JNL CAPITAL GROWTH SERIES
James P. Goff, Portfolio Manager of Janus Capital, 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. Mr. Goff has had responsibility for the
day-to-day management of the Series since the inception of the Series.
JNL GLOBAL EQUITIES SERIES
Helen Young Hayes, Portfolio Manager of Janus Capital, 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. Ms. Hayes has had
responsibility for the day-to-day management of the Series since the inception
of the Series.
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. Mr. Alger has had responsibility for the day-to-day management of the
Series since the inception of the Series. He has been employed by Alger
Management as Executive Vice President and Director of Research since 1971, and
as President since 1995. 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 as a senior research analyst since 1990 and as
a Senior Vice President since 1995. Ms. Khoo has been employed by Alger
Management as a senior research analyst since 1989 and as a Senior Vice
President since 1995.
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. Mr. Reilly has had responsibility for the day-to-day
management of the Series since the inception of the Series.
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. Mr. Boksen has had responsibility for the day-to-day management of
the Series since the inception of the Series.
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. Messrs. Quinsee and
Leuthold have shared responsibility for the day-to-day management of the Series
since the inception of the Series.
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. Mr. Gross has had
responsibility for the day-to-day management of the Series since the inception
of the Series.
JNL/PUTNAM GROWTH SERIES
C. Beth Cotner has responsibility for the day-to-day management of the
JNL/Putnam Growth Series. Ms. Cotner, Senior Vice President, has been employed
as a Senior Portfolio Manager by Putnam since September 1995. Prior to that, Ms.
Cotner was Executive Vice President of Kemper Financial Services. Ms. Cotner 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.
GOLDMAN SACHS/JNL GROWTH & INCOME SERIES
Greg Gigliotti, Vice President of Goldman Sachs, Thomas S. Price, Vice
President of Goldman Sachs, Lawrence S. Sibley, Vice President of Goldman Sachs
and Karma Wilson, Vice President of Goldman Sachs share the responsibility for
the day-to-day management of the Goldman Sachs/JNL Growth & Income Series. Mr.
Gigliotti joined Goldman Sachs in 1997. From 1996 to 1997 he was a Vice
President and senior analyst at Franklin Mutual Advisors, Inc., the asset
management division of Franklin Resources, Inc. From 1989 to 1996 he was a Vice
President and senior analyst at Heine Securities Corporation which was purchased
by Franklin Resources, Inc. Mr. Price joined Goldman Sachs in 1997. From 1996 to
1997 he was a Vice President and senior analyst at Franklin Mutual Advisors,
Inc., the asset management division of Franklin Resources, Inc. From 1993 to
1996 he was a Vice President and senior analyst at Heine Securities Corporation
which was purchased by Franklin Resources, Inc. Mr. Sibley joined Goldman Sachs
in 1997. From 1994 to 1997 he headed Institutional Equity Sales at J. P. Morgan
Securities, and from 1987 to 1994 he was a principal of Sanford C. Bernstein &
Co. in its Institutional Sales Department. Ms. Wilson joined Goldman Sachs in
1994. Prior to 1994 she was an investment analyst with Bankers Trust Australia
Ltd. Before 1992 she was employed at Arthur Andersen LLP. Mr. Gigliotti, Mr.
Price, Mr. Sibley and Ms. Wilson have shared the responsibility for the
day-to-day management of the Series since September 1998.
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. Mr. Gullquist and Ms. Alexanderson have shared responsibility for the
day-to-day management of the Series since the inception of the Series.
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. Mr. Gullquist and Ms. Alexanderson have shared
responsibility for the day-to-day management of the Series since the inception
of the Series.
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
George Williamson, Senior Portfolio Manager of SBAM, is primarily
responsible for the day-to-day management of the Salomon Brothers/JNL Balanced
Series. Prior to joining SBAM in 1990, Mr. Williamson was employed by as a
portfolio manager with Lehman Brothers from 1979 to 1990. Mr. Williamson has had
primary responsibility for the day-to-day management of the Series since the
inception of the Series.
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
Peter J. Wilby is primarily responsible for the day-to-day management of the
high yield and emerging market debt securities portions of the Salomon
Brothers/JNL Global Bond Series. Mr. Wilby has had primary responsibility for
the day-to-day management of the high yield and emerging market debt securities
portions of the Salomon Brothers/JNL Global Bond Series since the inception of
the 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.
SALOMON BROTHERS/JNL HIGH YIELD BOND SERIES
Peter J. Wilby is primarily responsible for the day-to-day management of the
Salomon Brothers/JNL High Yield Bond Series. Mr. Wilby has had primary
responsibility for the day-to-day management of the Salomon Brothers/JNL High
Yield Bond Series since the inception of the 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.
SALOMON BROTHERS/JNL U.S. GOVERNMENT & QUALITY BOND SERIES
Roger Lavan 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. 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. Mr. Lavan has had primary responsibility for the
day-to-day management of the Salomon Brothers/JNL U.S.
Government & Quality Bond Series since June 1, 1998.
JNL/S&P CONSERVATIVE GROWTH SERIES I
JNL/S&P MODERATE GROWTH SERIES I
JNL/S&P AGGRESSIVE GROWTH SERIES I
JNL/S&P VERY AGGRESSIVE GROWTH SERIES I
JNL/S&P EQUITY GROWTH SERIES I
JNL/S&P EQUITY AGGRESSIVE GROWTH SERIES I
JNL/S&P CONSERVATIVE GROWTH SERIES II
JNL/S&P MODERATE GROWTH SERIES II
JNL/S&P AGGRESSIVE GROWTH SERIES II
JNL/S&P VERY AGGRESSIVE GROWTH SERIES II
JNL/S&P EQUITY GROWTH SERIES II
JNL/S&P EQUITY AGGRESSIVE GROWTH SERIES II
David M. Blitzer and Joshua M. Harari, CFA, share the responsibility for the
day to day management of the JNL/S&P Conservative Growth Series I, the JNL/S&P
Moderate Growth Series I, the JNL/S&P Aggressive Growth Series I, the JNL/S&P
Very Aggressive Growth Series I, the JNL/S&P Equity Growth Series I, the JNL/S&P
Equity Aggressive Growth Series I, the JNL/S&P Conservative Growth Series II,
the JNL/S&P Moderate Growth Series II, the JNL/S&P Aggressive Growth Series II,
the JNL/S&P Very Aggressive Growth Series II, the JNL/S&P Equity Growth Series
II, and the JNL/S&P Equity Aggressive Growth Series II. Mr. Blitzer has been
Vice President of SPIAS since 1995 and has been an economist with Standard &
Poor's Equity Services Group (which operates independently of S&P Rating's
Group) since 1982. Mr. Blitzer has had responsibility for the day-to-day
management of the Series since the inception of the Series. Mr. Harari has been
a senior investment officer with the Quantitative Services department of
Standard & Poor's Financial Information Services since 1998. Since joining
Standard & Poor's in 1986, Mr. Harari served as an equity analyst and supervisor
of industrial analysts with Standard & Poor's Equity Services Group.
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.
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, Vice
Chairman and Chief Executive Officer of Price-Fleming, Christopher D. Alderson,
Vice President of Price-Fleming, Peter B. Askew, Executive Vice President of
Price-Fleming, Mark J.T. Edwards, Vice President of Price-Fleming, John R. Ford,
Chief Investment Officer of Price-Fleming, James B.M. Seddon, Vice President of
Price-Fleming, Benedict R.F. Thomas, Vice President of Price-Fleming, and David
J.L. Warren, President of Price-Fleming. The Series' advisory group has had
day-to-day responsibility for managing the Series since the inception of the
Series.
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
1987 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. The Investment Advisory
Committee has had day-to-day responsibility for managing the Series since the
inception of the Series.
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 JNFSLLC 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
JNFSLLC computed separately for each Series. The fee for each Series is stated
as an annual percentage of the net assets of such Series. The fees are
calculated based on 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 management fees JNFSLLC
currently is obligated to pay the sub-advisers out of the advisory fee it
receives from each Series as specified above:
<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
JNL/S&P Conservative Growth I .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Moderate Growth I... .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Aggressive Growth I. .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Very Aggressive
Growth I.................. .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Equity Growth I..... .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Equity Aggressive
Growth I.................. .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Conservative
Growth II................. .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Moderate Growth II.. .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Aggressive
Growth II................. .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Very Aggressive
Growth II................. .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Equity Growth II.... .10 .10 .10 .10 .10 .10 .10 .10 .075
JNL/S&P Equity Aggressive
Growth II................. .10 .10 .10 .10 .10 .10 .10 .10 .075
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 .15
</TABLE>
$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%
* When average net assets exceed this amount, the sub-advisory fee asterisked is
applicable to all amounts in this Series.
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.
ADMINISTRATIVE FEE
In addition to the investment advisory fee, effective October 1, 1998,
certain Series pay to JNFSLLC an Administrative Fee of .10% of the average daily
net assets of each Series. In return for the fee, JNFSLLC provides or procures
all necessary administrative functions and services for the operation of the
Series. In addition, JNFSLLC, at its own expense, arranges for legal, audit,
fund accounting, custody, printing and mailing, and all other services necessary
for the operation of each Series. Each Series is responsible for trading
expenses including brokerage commissions, interest and taxes, and other
non-operating expenses. Prior to October 1, 1998, each Series paid all of its
own operating expenses.
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:
o when the New York Stock Exchange is closed (other than weekends and
holidays) or trading is restricted;
o when an emergency exists, making disposal of portfolio securities or
the valuation of net assets not reasonably practicable; or
o during any period when the SEC has by order permitted a suspension of
redemption for the protection of shareholders.
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.
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, JNFSLLC 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.
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.
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. Any
charges that are imposed under a variable annuity or variable life contract that
is funded by the Trust will have the effect of reducing the performance
described below. Such charges will be described in the variable annuity or
variable life prospectus. If the Trust advertises performance that does not
reflect the effect of charges imposed under a variable annuity or variable life
contract, it will accompany the performance with the applicable performance
which does reflect the effect of such charges.
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.
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.
Owners of Polices should consult the applicable Account prospectus for more
detailed information on tax issues related to the Policies.
<PAGE>
CUSTODIAN
State Street Bank and Trust Company
105 Rosemont Road
Westwood, Massachusetts 02090
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
200 East Randolph Drive
Chicago, Illinois 60601
LEGAL COUNSEL
Blazzard, Grodd & Hasenauer, P.C.
943 Post Road East
Westport, Connecticut 06880
INVESTMENT ADVISER AND TRANSFER AGENT
Jackson National Financial Services, LLC
5901 Executive Drive
Lansing, Michigan 48911
<PAGE>
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.
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 sign to show relative standing within the major
rating categories.
MOODY'S INVESTORS SERVICE, INC. MUNICIPAL 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.
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 rankng; and the
modifier indicates that the issue ranks in the lower end of its generic rating
category.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
OCTOBER 1, 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
JNL/S&P Conservative Growth Series I
JNL/S&P Moderate Growth Series I
JNL/S&P Aggressive Growth Series I
JNL/S&P Very Aggressive Growth Series I
JNL/S&P Equity Growth Series I
JNL/S&P Equity Aggressive Growth Series I
JNL/S&P Conservative Growth Series II
JNL/S&P Moderate Growth Series II
JNL/S&P Aggressive Growth Series II
JNL/S&P Very Aggressive Growth Series II
JNL/S&P Equity Growth Series II
JNL/S&P Equity Aggressive Growth Series II
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 October 1, 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
Investment Restrictions Applicable to all Series
Common Types of Securities
Trustees and Officers of the Trust
Performance
Investment Adviser and Other Services
Purchases, Redemptions and Pricing of Shares
Additional Information
Tax Status
Financial Statements
<PAGE>
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 36 separate Series, each with its
own investment objective.
INVESTMENT RESTRICTIONS APPLICABLE TO ALL SERIES
Fundamental Policies. 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.
(1) It shall be a fundamental policy that each Series, except the JNL
Capital Growth Series, JNL/S&P Conservative Growth Series I, JNL/S&P Moderate
Growth Series I, JNL/S&P Aggressive Growth Series I, JNL/S&P Very Aggressive
Growth Series I, JNL/S&P Equity Growth Series I, JNL/S&P Equity Aggressive
Growth Series I, JNL/S&P Conservative Growth Series II, JNL/S&P Moderate Growth
Series II, JNL/S&P Aggressive Growth Series II, JNL/S&P Very Aggressive Growth
Series II, JNL/S&P Equity Growth Series II, JNL/S&P Equity Aggressive Growth
Series II, Lazard/JNL Small Cap Value Series and Lazard/JNL Mid Cap Value
Series, shall be a "diversified company", as such term is defined under the
Investment Company Act of 1940, as amended (the "1940 Act").
(2) No Series may 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) No Series may 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) No Series may 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 selling options,
futures, swaps and forward contracts or from investing in securities or other
instruments backed by physical commodities).
(5) No Series may lend any security or make any other loan if, as a result,
more than 33 1/3% 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) No Series may 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) No Series may 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 illiquid securities. 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) 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.
Operating Policies. 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) 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, LLC
("JNFSLLC") and the insurance companies may enter into agreements, required by
certain state insurance departments, under which JNFSLLC 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 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 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.
Passive Foreign Investment Companies. Some foreign countries limit, or prohibit,
all direct foreign investment in the securities of their companies. However, the
governments of some countries have authorized the organization of investment
funds to permit indirect foreign investment in such securities. For tax purposes
these funds may be known as Passive Foreign Investment Companies.
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.
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.
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. In addition, a Series,
together with other registered investment companies having management agreements
with an investment adviser or its affiliates may transfer uninvested cash
balances into a single joint account, the daily aggregate balance of which will
be invested in one or more repurchase agreements.
Savings and Loan Obligations. Savings and loan obligations include negotiable
certificates of deposit and other short-term debt obligations of savings and
loan associations.
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.
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. 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.
Inflation Indexed Bonds. Inflation-indexed bonds are fixed income securities
whose principal value is periodically adjusted according to the rate of
inflation. Such bonds generally are issued at an interest rate lower than
typical bonds, but are expected to retain their principal value over time. The
interest rate on these bonds is fixed at issuance, but over the life of the bond
the interest may be paid on an increasing principal value, which has been
adjusted for inflation.
Inflation-indexed securities issued by the U.S. Treasury will initially
have maturities of ten years, although it is anticipated that securities with
other maturities will be issued in the future. The securities will pay interest
on a semi-annual basis, equal to a fixed percentage of the inflation-adjusted
principal amount. For example, if a Series purchased an inflation-indexed bond
with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%
semi-annually), and inflation over the first six months were 1%, the mid-year
par value of the bond would be $1,010 and the first annual interest payment
would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the
year reached 3%, the end-of-year par value of the bond would be $1,030 and the
second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).
If the periodic adjustment rate measuring inflation falls, the principal
value of inflation-indexed bonds will be adjusted downward, and consequently the
interest payable on these securities (calculated with respect to a smaller
principal amount) will be reduced. Repayment of the original bond principal upon
maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury
inflation-indexed bonds, even during a period of deflation. However, the current
market value of the bonds is not guaranteed, and will fluctuate. The Series may
also invest in other inflation related bonds which may or may not provide a
similar guarantee. If a guarantee of principal is not provided, the adjusted
principal value of the bond repaid at maturity may be less than the original
principal.
The value of inflation-indexed bonds is expected to change in response to
changes in real interest rates. Real interest rates in turn are tied to the
relationship between nominal interest rates and the rate of inflation.
Therefore, if inflation were to rise at a faster rate than nominal interest
rates, real interest rates might decline, leading to an increase in value of
inflation-indexed bonds. In contract, if nominal interest rates increased at a
faster rate than inflation, real interest rates might rise, leading to a
decrease in value of inflation-indexed bonds.
The U.S. Treasury has only recently begun issuing inflation-indexed bonds.
As such, there is no trading history of these securities, and there can be no
assurance that a liquid market in these instruments will develop, although one
is expected. Lack of a liquid market may impose the risk of higher transaction
costs and the possibility that a Series may be forced to liquidate positions
when it would not be advantageous to do so. These also can be no assurance that
the U.S. Treasury will issue any particular amount of inflation-indexed bonds.
Certain foreign governments, such as the United Kingdom, Canada and Australia,
have a longer history of issuing inflation-indexed bonds, and there may be a
more liquid market in certain of these countries for these securities.
The periodic adjustment of U.S. inflation-index bonds is tied to the
Consumer Price-Index for Urban Consumers ("CPI-U"), which is calculated monthly
by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in
the cost of living, made up of components such as housing, food, transportation
and energy. Inflation-indexed bonds issued by a foreign government are generally
adjusted to reflect a comparable inflation index, calculated by that government.
There can be no assurance that the CPI-U or any foreign inflation index will
accurately measure the real rate of inflation in the prices of goods and
services. Moreover, there can be no assurance that the rate of inflation in a
foreign country will be correlated to the rate of inflation in the United
States.
Any increase in the principal amount of an inflation-indexed bond will be
considered taxable ordinary income, even though investors do not receive their
principal until maturity.
Standard & Poor's Depository Receipts. Standard & Poor's Depository Receipts
("SPDRs") are American Stock Exchange-traded securities that represent ownership
in the SPDR Trust, a trust which has been established to accumulate and hold a
portfolio of common stocks that is intended to track the price performance and
dividend yield of the S&P 500 Index. This trust is sponsored by a subsidiary of
the American Stock Exchange. SPDRs may be used for several reasons including but
not limited to: facilitating the handling of cash flows or trading, or reducing
transaction costs. The use of SPDRs would introduce additional risk to a Series
as the price movement of the instrument does not perfectly correlate with the
price action of the underlying index.
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.
ANDREW B. HOPPING* (Age 40)
JNL Series Trust, Trustee (8/97 to present)
JNL Series Trust, President (8/97 to present)
JNL Series Trust, Chief Executive Officer (8/97 to present)
JNL Series Trust, Vice President (8/96 to 8/97)
JNL Series Trust, Treasurer (8/96 to 8/97)
JNL Series Trust, Chief Financial Officer (8/96 to 8/97)
Jackson National Financial Services, LLC, President (3/98 to present)
Jackson National Financial Services, LLC, Managing Board Member
(3/98 to present)
Jackson National Life Insurance Company, Executive Vice President (7/98
to present)
Jackson National Life Insurance Company, Chief Financial Officer
(12/97 to present)
Jackson National Life Insurance Company, Senior Vice President
(6/94 to 7/98)
National Planning Corporation, Vice President (5/98 to 7/98)
National Planning Corporation, Director (6/97 to present)
Jackson National Financial Services, Inc., CEO (7/97 to 5/98)
Jackson National Financial Services, Inc., President (7/97 to 5/98)
Countrywide Credit, Executive Vice President (3/92 to 6/94)
JOSEPH FRAUENHEIM (Age 64), 1405 Cambridge, Lansing, MI 48911
JNL Series Trust, Trustee (12/94 to present)
Consultant (1991 to present)
ROBERT A. FRITTS* (Age 50)
JNL Series Trust, Trustee (4/98 to present)
JNL Series Trust, Treasurer (8/97 to present)
JNL Series Trust, Chief Financial Officer (8/97 to present)
JNL Series Trust, Vice President (12/94 to present)
JNL Series Trust, Assistant Treasurer (2/96 to August 1997)
JNL Series Trust, Assistant Secretary (12/94 to 2/96)
Jackson National Life Insurance Company, Vice President and Controller
THOMAS J. MEYER (Age 51)
JNL Series Trust, Vice President (12/94 to present)
JNL Series Trust, Counsel (12/94 to present)
JNL Series Trust, Secretary (12/94 to present)
Jackson National Life Insurance Company, Senior Vice President (7/98 to present)
Jackson National Life Insurance Company, Secretary (9/94 to present)
Jackson National Life Insurance Company, General Counsel (3/85 to present)
Jackson National Life Insurance Company, Vice President (3/85 to 7/98)
RICHARD MCLELLAN (Age 56), 1191 Carriageway North, East Lansing, MI 48823
JNL Series Trust, Trustee (12/94 to present)
Dykema Gossett PLLC, Attorney
PETER MCPHERSON (Age 57), 1 Abbott Road, East Lansing, MI 48824
JNL Series Trust, Trustee (12/94 to present)
Michigan State University, President (10/93 to present)
Bank of America, Group Executive Vice President (11/90 to 10/93)
MARK D. NERUD (Age 32)
JNL Series Trust, Vice President (8/97 to present)
JNL Series Trust, Assistant Treasurer (8/97 to present)
Jackson National Financial Services, LLC, Chief Financial Officer
(3/98 to present) Jackson National Financial Services, LLC, Managing
Board Member (3/98 to present)
National Planning Corporation, Vice President (5/98 to present)
Jackson National Financial Services, Inc., Director (1/98 to 5/98)
Jackson National Financial Services, Inc., Chief Operating Officer
(6/97 to 5/98)
Jackson National Financial Services, Inc., Treasurer (6/97 to 5/98)
Jackson National Life Insurance Company, Assistant Vice President -
Mutual Fund Operations (5/97 to present)
Jackson National Life Insurance Company, Assistant Vice President
(10/96 to 4/97)
Jackson National Life Insurance Company, Assistant Controller
(10/96 to 4/97)
Jackson National Life Insurance Company, Senior Manager - Mutual Fund
Operations (4/96 to 10/96)
Voyageur Asset Management Company, Manager - Mutual Fund Accounting
(5/93 to 4/96)
KPMG Peat Marwick, Manager - Financial Services (6/88 to 5/93)
AMY D. EISENBEIS (Age 34)
JNL Series Trust, Vice President (8/97 to present)
JNL Series Trust, Assistant
Secretary (8/97 to present)
Jackson National Financial Services, LLC, Vice President (3/98 to present)
Jackson National Financial Services, LLC, Secretary (3/98 to present)
National Planning Corporation, Vice President (1/98 to 7/98)
National Planning Corporation, Secretary (1/98 to 7/98)
National Planning Corporation, Chief Legal Officer (1/98 to 7/98)
Jackson National Life Insurance Company, Associate General Counsel
(7/95 to present)
Waddell & Reed, Inc., Staff Attorney (1/94 to 7/95)
Security Benefit Life Insurance Company, Staff Attorney (10/91 to 1/94)
- -----------
*Trustees who are interested persons as defined in the Investment Company Act of
1940.
On September 14, 1998, 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
$4,000 for each meeting they attend. For the year ended December 31, 1997, the
disinterested Trustees received the following fees for service as Trustee:
<TABLE>
<CAPTION>
Pension or Retirement
Aggregate Compensation from Benefits Accrued As Part Total Compensation from
Trustee Trust of Trust Expenses Trust and Fund Complex
------- ----- ----------------- ----------------------
<S> <C> <C> <C>
Joseph Frauenheim $23,500 0 $23,500
Richard McLellan 10,500 0 10,500
Peter McPherson 23,500 0 23,500
</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:
<TABLE>
<CAPTION>
One Year Period Three Year Commencement of
Ended June 30, Period Ended Operations to June
1998 June 30, 1998 30, 1998
---- ------------- --------
<S> <C> <C> <C>
JNL Aggressive Growth Series* 38.02% 25.75% 27.92%
JNL Capital Growth Series* 28.66% 24.40% 26.79%
JNL Global Equities Series* 28.18% 33.81% 35.06%
JNL/Alger Growth Series** 35.27% N/A 23.26%
JNL/Alliance Growth Series**** N/A N/A 12.80%
JNL/Eagle Core Equity Series*** 23.22% N/A 28.11%
JNL/Eagle SmallCap Equity Series*** 18.38% N/A 29.91%
JNL/JPM International & Emerging Markets Series**** N/A N/A 2.30%
JNL/PIMCO Total Return Bond Series**** N/A N/A 3.30%
JNL/Putnam Growth Series* 37.06% 31.75% 32.50%
JNL/Putnam Value Equity Series* 15.96% 24.81% 25.03%
JNL/S&P Conservative Growth Series I***** N/A N/A 0.50%
JNL/S&P Moderate Growth Series I***** N/A N/A 1.40%
JNL/S&P Aggressive Growth Series I***** N/A N/A 2.30%
JNL/S&P Very Aggressive Growth Series I***** N/A N/A 3.40%
JNL/S&P Equity Growth Series I***** N/A N/A -0.30%
JNL/S&P Equity Aggressive Growth Series I***** N/A N/A 0.70%
JNL/S&P Conservative Growth Series II***** N/A N/A -1.00%
JNL/S&P Moderate Growth Series II***** N/A N/A -0.90%
JNL/S&P Aggressive Growth Series II***** N/A N/A -1.50%
JNL/S&P Very Aggressive Growth Series II***** N/A N/A 1.50%
JNL/S&P Equity Growth Series II***** N/A N/A -2.00%
JNL/S&P Equity Aggressive Growth Series II***** N/A N/A -0.80%
Goldman Sachs/JNL Growth & Income Series***** N/A N/A -2.60%
Lazard/JNL Small Cap Value Series***** N/A N/A -3.60%
Lazard/JNL Mid Cap Value Series***** N/A N/A -3.30%
PPM America/JNL Balanced Series* 16.89% 16.95% 16.99%
PPM America/JNL High Yield Bond Series* 13.42% 13.45% 12.62%
Salomon Brothers/JNL Balanced Series**** N/A N/A 2.30%
Salomon Brothers/JNL Global Bond Series* 7.58% 11.44% 11.10%
Salomon Brothers/JNL High Yield Bond Series**** N/A N/A 1.40%
Salomon Brothers/JNL U.S. Government and Quality Bond
Series* 10.64% 6.99% 7.17%
T. Rowe Price/JNL Established Growth Series* 29.05% 28.00% 29.74%
T. Rowe Price/JNL International Equity Investment
Series* 4.39% 12.63% 11.91%
T. Rowe Price/JNL Mid-Cap Growth Series* 29.94% 26.94% 28.63%
</TABLE>
* Commenced operations on May 15, 1995.
** Commenced operations on October 16, 1995.
*** Commenced operations on September 16, 1996.
**** Commenced operations on March 2, 1998. Performance figures are not
annualized.
*****The JNL/S&P Conservative Growth Series I commenced operations on April
9, 1998; the JNL/S&P Moderate Growth Series I commenced operations on April 8,
1998; the JNL/S&P Aggressive Growth Series I commenced operations on April 8,
1998; the JNL/S&P Very Aggressive Growth Series I commenced operations on April
1, 1998; the JNL/S&P Equity Growth Series I commenced operations on April 13,
1998; the JNL/S&P Equity Aggressive Growth Series I commenced operations on
April15, 1998; the JNL/S&P Conservative Growth Series II commenced operations on
April 13, 1998; the JNL/S&P Moderate Growth Series II commenced operations on
April 13, 1998; the JNL/S&P Aggressive Growth Series II commenced operations on
April 13, 1998; the JNL/S&P Very Aggressive Growth Series II commenced
operations on April 13, 1998; the JNL/S&P Equity Growth Series II commenced
operations on April 13, 1998; and the JNL/S&P Equity Aggressive Growth Series II
commenced operations on April 13, 1998. Performance figures are 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 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, 1998, for each of the
referenced Series was as follows:
PPM America/JNL Balanced Series 2.73%
PPM America/JNL High Yield Bond Series 8.38%
Salomon Brothers/JNL Global Bond Series 7.38%
Salomon Brothers/JNL U.S. Government and Quality Bond Series 5.82%
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 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,
1998, was 4.87%.
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, 1998, was 4.99%.
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
JNFSLLC, 5901 Executive Drive, Lansing, Michigan 48911, is the investment
adviser to the Trust. As investment adviser, JNFSLLC provides the Trust with
professional investment supervision and management, administers the Trust's
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. JNFSLLC is a wholly owned subsidiary of Jackson
National Life Insurance Company, which is in turn wholly owned by Prudential
Corporation plc, a life insurance company in the United Kingdom.
JNFSLLC acts as investment adviser to the Trust pursuant to an Amended
Investment Advisory and Management Agreement. Prior to July 1, 1998, Jackson
National Financial Services, Inc. acted as investment adviser to the Trust.
Jackson National Financial Services, Inc. transferred the Amended Investment
Advisory and Management Agreement, all related investment management duties and
its related professional staff to JNFSLLC on July 1, 1998, with the approval of
the Board of Trustees of the Trust.
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 JNFSLLC 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 JNFSLLC 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 JNFSLLC a
fee as described in the Prospectus. The fees paid by the Trust to Jackson
National Financial Services, Inc. pursuant to the Amended Investment Advisory
and Management Agreement from the commencement of operations to March 31, 1996
were $701,004, from April 1, 1996 to December 31, 1996 were $1,884,328, and for
the fiscal year ended December 31, 1997 were $7,264,087.
In addition to providing the services described above JNFSLLC selects,
contracts with and compensates sub-advisers to manage the investment and
reinvestment of the assets of the Series of the Trust. JNFSLLC 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; Standard & Poor's Investment
Advisory Services, Inc. ("SPIAS") serves as sub-adviser for the JNL/S&P
Conservative Growth Series I, JNL/S&P Moderate Growth Series I, JNL/S&P
Aggressive Growth Series I, JNL/S&P Very Aggressive Growth Series I, JNL/S&P
Equity Growth Series I, JNL/S&P Equity Aggressive Growth Series I, JNL/S&P
Conservative Growth Series II, JNL/S&P Moderate Growth Series II, JNL/S&P
Aggressive Growth Series II, JNL/S&P Very Aggressive Growth Series II, JNL/S&P
Equity Growth Series II, and JNL/S&P Equity Aggressive Growth Series II; T. Rowe
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.
Subject to the supervision of JNFSLLC and the Trustees pursuant to
investment sub-advisory agreements entered into between JNFSLLC 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 JNFSLLC 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
JNFSLLC and all expenses (other than those assumed by JNFSLLC), 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.
Administrative Fee. Effective October 1, 1998, certain Series pay to JNFSLLC an
Administrative Fee of .10% of the average daily net assets of each Series. In
return for the fee, JNFSLLC provides or procures all necessary administrative
functions and services for the operation of the Series. In addition, JNFSLLC, at
its own expense, will arrange for legal, audit, fund accounting, custody,
printing and mailing, and all other services necessary for the operation of each
Series. Each Series is responsible for trading expenses including brokerage
commissions, interest and taxes, and other non-operating expenses. Prior to
October 1, 1998, each Series paid all of its own operating expenses.
Custodian and Transfer Agent. 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.
State Street Bank and Trust Company ("State Street"), 105 Rosemont Road,
Westwood, Massachusetts 02090, acts as custodian for the 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, and T. Rowe Price/JNL
Mid-Cap Growth Series. The Trust acts as custodian for the JNL/S&P Conservative
Growth Series I, JNL/S&P Moderate Growth Series I, JNL/S&P Aggressive Growth
Series I, JNL/S&P Very Aggressive Growth Series I, JNL/S&P Equity Growth Series
I, JNL/S&P Equity Aggressive Growth Series I, JNL/S&P Conservative Growth Series
II, JNL/S&P Moderate Growth Series II, JNL/S&P Aggressive Growth Series II,
JNL/S&P Very Aggressive Growth Series II, JNL/S&P Equity Growth Series II, and
JNL/S&P Equity Aggressive Growth Series II.
JNFSLLC is the transfer agent and dividend-paying agent for each Series of
the Trust.
Independent Accountants. The Series' independent accountants,
PricewaterhouseCoopers LLP, 200 East Randolph Drive, Chicago, Illinois 60601,
audit and report on the Series' annual financial statements, 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. JNFSLLC 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 JNFSLLC or the sub-advisers. In placing orders with
such broker/dealers, JNFSLLC and the sub-advisers will, where possible, take
into account the comparative usefulness of such information. Such information is
useful to JNFSLLC and the sub-advisers even though its dollar value may be
indeterminable and its receipt or availability generally does not reduce
JNFSLLC'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 JNFSLLC
or the sub-advisers. Although such concurrent authorizations potentially could
be either advantageous or disadvantageous to the Trust, they are effected only
when JNFSLLC 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>
Fiscal year April 1, 1996 Commencement of
ended December to December 31, Operations to
31, 1997 1996* March 31, 1996
-------- ----- --------------
<S> <C> <C> <C>
JNL Aggressive Growth Series** $162,153 $16,981 $19,654
JNL Capital Growth Series** 147,014 34,515 16,905
JNL Global Equities Series** 453,347 47,800 72,359
JNL/Alger Growth Series*** 183,075 22,155 9,414
JNL/Eagle Core Equity Series**** 17,298 1,785 N/A
JNL/Eagle SmallCap Equity Series**** 33,313 4,389 N/A
JNL/Putnam Growth Series** 181,765 33,185 8,008
JNL/Putnam Value Equity Series** 139,522 3,587 2,888
PPM America/JNL Balanced Series** 43,630 17,054 5,077
PPM America/JNL High Yield Bond Series** 0 500 0
PPM America/JNL Money Market Series** 0 0 0
Salomon Brothers/JNL Global Bond Series** 0 0 1,399
Salomon Brothers/JNL U.S. Government and Quality Bond
Series** 0 0 0
T. Rowe Price/JNL Established Growth Series** 114,988 5,706 20,293
T. Rowe Price/JNL International Equity Investment Series** 142,628 17,105 63,341
T. Rowe Price/JNL Mid-Cap Growth Series** 164,887 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.
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.
As of December 31, 1997, the following Series owned securities of one of
the Trust's regular broker/dealers:
Amount of
Securities
Series Broker/Dealer Owned
------ ------------- -----
Morgan Stanley, Dean Witter
JNL/Alger Growth Series Discover & Co $1,795,922
Morgan Stanley, Dean Witter
JNL/Putnam Growth Series Discover & Co 851,400
JNL/Putnam Value Equity
Series J.P. Morgan & Co. 1,065,540
PPM America/JNL Money Market
Series Merrill Lynch & Co. 2,407,664
Code of Ethics. To mitigate the possibility that a Series will be adversely
affected by personal trading of employees, the Trust, the Adviser and the
Sub-Advisers have adopted Codes of Ethics under Rule 17j-1 of the 1940 Act.
These Codes contain policies restricting securities trading in personal accounts
of the portfolio managers and others who normally come into possession of
information on portfolio transactions. These Codes comply, in all material
respects, with the recommendations of the Investment Company Institute.
PURCHASES, REDEMPTIONS AND PRICING OF SHARES
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.
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.
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, Martin Luther King Jr. holiday, 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, as amended. 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 (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.
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:
o designate Series of the Trust; or
o change the name of the Trust; or
o supply any omission, cure, correct, or supplement any ambiguous, defective,
or inconsistent provision to conform the Declaration of Trust to the
requirements of applicable federal or state regulations if they deem it
necessary.
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 annuity and life insurance contracts issued by 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>
JNL SERIES TRUST
FINANCIAL STATEMENTS
JUNE 30, 1998
<PAGE>
JNL SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
June 30, 1998
<TABLE>
<CAPTION>
JNL JNL JNL
Aggressive Capital Global JNL/Alger JNL/Alliance
Growth Growth Equities Growth Growth
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ............ $ 91,231,699 $ 76,533,957 $175,105,856 $ 93,442,197 $ 2,314,691
============ ============ ============ ============ ============
Investments in securities, at value ........... 116,021,039 96,351,525 229,383,421 125,329,037 2,551,212
Cash .......................................... 37,834 92,977 102,240 -- --
Foreign currency .............................. 123,925 90,568 2,727,000 -- --
Receivables:
Dividends and interest ..................... 9,728 16,878 83,941 56,216 2,020
Forward foreign currency exchange contracts 31,634 428 900,431 -- --
Foreign taxes recoverable .................. 3,921 3,725 188,408 -- --
Fund shares sold ........................... 32,503 20,584 318,309 365,404 --
Investment securities sold ................. 1,360,541 137,377 2,473,178 1,584,304 21,317
Reimbursement from Adviser ................. -- 6,564 27,046 -- 3,442
------------ ------------ ------------ ------------ ------------
Total assets .................................. 117,621,125 96,720,626 236,203,974 127,334,961 2,577,991
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment advisory fees ................... 84,028 68,607 170,777 95,457 1,540
Forward foreign currency exchange contracts 64,825 118,766 795,718 -- --
Fund shares redeemed ....................... 49,955 3,709 62,865 16,506 11
Investment securities purchased ............ 152,839 2,115,984 15,897,085 -- 10,711
Variation margin .............................. -- -- 5,409 -- --
Other liabilities ............................. 10,361 16,303 29,419 20,268 12,898
------------ ------------ ------------ ------------ ------------
Total liabilities ............................. 362,008 2,323,369 16,961,273 132,231 25,160
------------ ------------ ------------ ------------ ------------
Net assets .................................... $117,259,117 $ 94,397,257 $219,242,701 $127,202,730 $ 2,552,831
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ............................... 85,477,069 68,495,582 161,416,318 90,575,782 2,278,087
Undistributed net investment income (loss) .... 211,706 -303,154 1,187,267 -41,932 1,788
Accumulated net realized gain (loss)
on investments, future contracts, and
foreign currency related items ............. 6,814,850 6,505,280 2,485,297 4,782,040 36,435
Net unrealized appreciation (depreciation) on:
Investments ................................ 24,789,340 19,817,568 54,277,565 31,886,840 236,521
Futures contracts and foreign currency
related items ........................... (33,848) (118,019) (123,746) -- --
------------ ------------ ------------ ------------ ------------
Net assets .................................... $117,259,117 $ 94,397,257 $219,242,701 $127,202,730 $ 2,552,831
============ ============ ============ ============ ============
Total shares outstanding (no par value),
unlimited shares authorized .............. 6,207,839 4,881,064 9,897,297 7,496,108 226,248
============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share ............... $ 18.89 $ 19.34 $ 22.15 $ 16.97 $ 11.28
============ ============ ============ ============ ============
</TABLE>
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
JNL/JPM
JNL/Eagle JNL/Eagle International JNL/PIMCO
Core SmallCap & Emerging Total JNL/Putnam
Equity Equity Market Return Bond Growth
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ............ $ 21,563,655 $ 23,757,498 $ 5,077,841 $ 3,649,687 $106,799,393
============ ============ ============ ============ ============
Investments in securities, at value ........... 24,280,386 25,796,200 4,997,491 3,723,551 137,032,991
Cash .......................................... -- 550,137 -- -- --
Foreign currency .............................. -- -- 247,974 -- --
Receivables:
Dividends and interest ..................... 44,430 11,737 9,994 19,809 75,714
Forward foreign currency exchange contracts -- -- 41,673 -- --
Foreign taxes recoverable .................. 94 -- 6,947 -- --
Fund shares sold ........................... 76,771 198,745 -- -- 263,042
Investment securities sold ................. 154,460 -- 93,284 -- 263,663
Reimbursement from Adviser ................. 3,260 2,105 5,222 3,312 --
------------ ------------ ------------ ------------ ------------
Total assets .................................. 24,559,401 26,558,924 5,402,585 3,746,672 137,635,410
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment advisory fees ................... 16,318 18,656 4,073 2,038 94,938
Forward foreign currency exchange contracts -- -- 30,583 -- --
Fund shares redeemed ....................... 2,710 1,680 1 26 15,915
Investment securities purchased ............ 928,260 1,005,971 218,347 -- 3,821
Variation margin .............................. -- -- 941 -- --
Other liabilities ............................. 13,287 15,800 19,312 13,257 18,077
------------ ------------ ------------ ------------ ------------
Total liabilities ............................. 960,575 1,042,107 273,257 15,321 132,751
------------ ------------ ------------ ------------ ------------
Net assets .................................... $ 23,598,826 $ 25,516,817 $ 5,129,328 $ 3,731,351 $137,502,659
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ............................... 20,557,375 22,990,365 5,013,763 3,621,517 104,454,949
Undistributed net investment income (loss) .... 89,000 -53,536 35,083 51,790 70,182
Accumulated net realized gain (loss)
on investments, future contracts, and
foreign currency related items ............. 235,720 541,286 150,617 (15,820) 2,743,930
Net unrealized appreciation (depreciation) on:
Investments ................................ 2,716,731 2,038,702 (80,350) 73,864 30,233,598
Futures contracts and foreign currency
related items ........................... -- -- 10,215 -- --
------------ ------------ ------------ ------------ ------------
Net assets .................................... $ 23,598,826 $ 25,516,817 $ 5,129,328 $ 3,731,351 $137,502,659
============ ============ ============ ============ ============
Total shares outstanding (no par value),
unlimited shares authorized .............. 1,552,099 1,597,701 501,330 361,359 6,599,448
============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share ............... $ 15.20 $ 15.97 $ 10.23 $ 10.33 $ 20.84
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Goldman
Sachs/JNL Lazard/JNL Lazard/JNL PPM
JNL/Putnam Growth & Small Cap Mid Cap America/JNL
Value Equity Income Value Value Balanced
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ............ $154,608,925 $ 3,409,638 $ 5,189,387 $ 4,947,543 $ 77,984,944
============ ============ ============ ============ ============
Investments in securities, at value ........... 164,325,898 3,261,118 4,941,707 4,798,687 83,555,772
Cash .......................................... -- -- -- -- --
Foreign currency .............................. -- -- -- -- --
Receivables:
Dividends and interest ..................... 316,929 6,537 3,293 2,947 673,155
Forward foreign currency exchange contracts -- -- -- -- --
Foreign taxes recoverable .................. 6,443 -- -- 1,231 --
Fund shares sold ........................... 191,972 15,000 -- 3,000 113,314
Investment securities sold ................. 3,053,819 8,799 3,153 -- 54,811
Reimbursement from Adviser ................. -- 3,371 3,162 3,210 3,694
------------ ------------ ------------ ------------ ------------
Total assets .................................. 167,895,061 3,294,825 4,951,315 4,809,075 84,400,746
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment advisory fees ................... 119,371 2,305 4,183 3,555 49,417
Forward foreign currency exchange contracts -- -- -- -- --
Fund shares redeemed ....................... 55,136 54 5 29 21,855
Investment securities purchased ............ 571,799 33,769 5,059 241,519 537,568
Variation margin .............................. -- 758 -- -- --
Other liabilities ............................. 7,166 13,060 13,129 13,536 13,181
------------ ------------ ------------ ------------ ------------
Total liabilities ............................. 753,472 49,946 22,376 258,639 622,021
------------ ------------ ------------ ------------ ------------
Net assets .................................... $167,141,589 $ 3,244,879 $ 4,928,939 $ 4,550,436 $ 83,778,725
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ............................... 151,527,710 3,348,317 5,113,964 4,712,582 74,902,038
Undistributed net investment income (loss) .... 729,456 10,721 199 6,169 1,414,878
Accumulated net realized gain (loss)
on investments, future contracts, and
foreign currency related items ............. 5,167,450 35,119 62,456 (19,459) 1,890,981
Net unrealized appreciation (depreciation) on:
Investments ................................ 9,716,973 (148,520) (247,680) (148,856) 5,570,828
Futures contracts and foreign currency
related items ........................... -- (758) -- -- --
------------ ------------ ------------ ------------ ------------
Net assets .................................... $167,141,589 $ 3,244,879 $ 4,928,939 $ 4,550,436 $ 83,778,725
============ ============ ============ ============ ============
Total shares outstanding (no par value),
unlimited shares authorized .............. 9,167,488 333,200 511,520 470,403 5,947,685
============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share ............... $ 18.23 $ 9.74 $ 9.64 $ 9.67 $ 14.09
============ ============ ============ ============ ============
</TABLE>
PPM
America/JNL
High Yield
Bond
Series
------
Assets
Investments in securities, at cost ............ $ 95,424,085
============
Investments in securities, at value ........... 95,471,960
Cash .......................................... --
Foreign currency .............................. --
Receivables:
Dividends and interest ..................... 1,732,835
Forward foreign currency exchange contracts --
Foreign taxes recoverable .................. --
Fund shares sold ........................... 90,577
Investment securities sold ................. 1,010,000
Reimbursement from Adviser ................. --
------------
Total assets .................................. 98,305,372
------------
Liabilities
Payables:
Investment advisory fees ................... 56,816
Forward foreign currency exchange contracts --
Fund shares redeemed ....................... 8,017
Investment securities purchased ............ 1,000,000
Variation margin .............................. --
Other liabilities ............................. 14,017
------------
Total liabilities ............................. 1,078,850
------------
Net assets .................................... $ 97,226,522
============
Net assets consist of:
Paid-in capital ............................... 91,587,760
Undistributed net investment income (loss) .... 3,468,090
Accumulated net realized gain (loss)
on investments, future contracts, and
foreign currency related items ............. 2,122,797
Net unrealized appreciation (depreciation) on:
Investments ................................ 47,875
Futures contracts and foreign currency
related items ........................... --
------------
Net assets .................................... $ 97,226,522
============
Total shares outstanding (no par value),
unlimited shares authorized .............. 8,058,472
============
Net asset value, offering and
redemption price per share ............... $ 12.07
============
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (continued)
June 30, 1998
<TABLE>
<CAPTION>
America/JNL Salomon Brothers/JNL Brothers/JNL Brothers/JNL
Money Brothers/JNL Global High Yield U.S. Government
Market Balanced Bond Bond & Quality
Series Series Series Series Bond Series
------ ------ ------ ------ -----------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ........... $ 54,472,935 $ 2,150,394 $ 54,576,155 $ 5,689,391 $ 46,974,232
============ ============ ============ ============ ============
Investments in securities, at value ........... 54,472,935 2,147,242 54,723,965 5,641,815 47,833,463
Cash .......................................... -- -- -- -- --
Foreign currency .............................. -- -- 3,761 -- --
Receivables:
Dividends and interest ..................... 9 20,552 706,956 119,151 380,978
Forward foreign currency exchange contracts -- -- 48,806 -- --
Foreign taxes recoverable .................. -- -- -- -- --
Fund shares sold ........................... -- 12,000 36,684 6,000 10,637
Investment securities sold ................. -- -- -- -- --
Reimbursement from Adviser ................. 652 3,499 6,506 3,083 1,972
------------ ------------ ------------ ------------ ------------
Total assets ................................. $ 54,473,596 $ 2,183,293 $ 55,526,678 $ 5,770,049 $ 48,227,050
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment advisory fees ................... 28,963 1,261 32,336 3,639 20,214
Forward foreign currency exchange contracts -- -- 26,277 -- --
Fund shares redeemed ....................... 595,470 43 8,213 28 7,223
Investment securities purchased ............ -- 79,846 8,576,529 -- 12,564,596
Variation margin .............................. -- -- -- -- --
Other liabilities ............................. 9,710 13,799 12,544 13,892 18,455
------------ ------------ ------------ ------------ ------------
Total liabilities ............................. 634,143 94,949 8,655,899 17,559 12,610,488
------------ ------------ ------------ ------------ ------------
Net assets ................................... $ 53,839,453 $ 2,088,344 $ 46,870,779 $ 5,752,490 $ 35,616,562
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ............................... 53,839,453 2,069,483 45,017,850 5,678,568 33,746,092
Undistributed net investment income (loss) .... -- 21,417 1,462,822 121,446 912,323
Accumulated net realized gain (loss)
on investments, future contracts, and
foreign currency related items ............. -- 596 221,267 52 98,916
Net unrealized appreciation (depreciation) on:
Investments ................................ -- (3,152) 147,810 (47,576) 859,231
Futures contracts and foreign currency
related items ........................... -- -- 21,030 -- --
------------ ------------ ------------ ------------ ------------
Net assets ................................... $ 53,839,453 $ 2,088,344 $ 46,870,779 $ 5,752,490 $ 35,616,562
============ ============ ============ ============ ============
Total shares outstanding (no par value),
unlimited shares authorized .............. 53,839,453 204,220 4,112,807 567,228 3,210,192
============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share .............. $ 1.00 $ 10.23 $ 11.40 $ 10.14 $ 11.09
============ ============ ============ ============ ============
</TABLE>
See notes to the financial statements.
<TABLE>
<CAPTION>
T. Rowe
T. Rowe Price/JNL T. Rowe
Price/JNL International Price/JNL JNL/S&P JNL/S&P
Established Equity Mid-Cap Conservative Moderate
Growth Investment Growth Growth Growth
Series Series Series Series I Series I
------ ------ ------ -------- --------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ........... $151,169,540 $ 72,086,752 $137,366,618 $ 1,738,231 $ 1,690,601
============ ============ ============ ============ ============
Investments in securities, at value ........... 185,069,695 87,518,362 172,688,734 1,763,884 1,722,378
Cash .......................................... -- -- -- -- --
Foreign currency .............................. 17,675 797,310 (20) -- --
Receivables:
Dividends and interest ..................... 108,381 121,220 24,395 240 --
Forward foreign currency exchange contracts -- 80 -- -- --
Foreign taxes recoverable .................. 13,619 127,443 314 -- --
Fund shares sold ........................... 129,682 22,207 116,231 -- 5,333
Investment securities sold ................. 846,774 154,099 1,302,773 5,554 --
Reimbursement from Adviser ................. -- 7,186 -- -- --
------------ ------------ ------------ ------------ ------------
Total assets ................................. $186,185,826 $ 88,747,907 $174,132,427 $ 1,769,678 $ 1,727,711
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment advisory fees ................... 121,286 78,593 126,675 271 284
Forward foreign currency exchange contracts 1,426 442 -- -- --
Fund shares redeemed ....................... 92,360 5,444 28,600 5,554 --
Investment securities purchased ............ 2,762,230 -- 1,147,652 -- 5,333
Variation margin .............................. -- -- -- -- --
Other liabilities ............................. 14,904 42,139 13,867 -- --
------------ ------------ ------------ ------------ ------------
Total liabilities ............................. 2,992,206 126,618 1,316,794 5,825 5,617
------------ ------------ ------------ ------------ ------------
Net assets ................................... $183,193,620 $ 88,621,289 $172,815,633 $ 1,763,853 $ 1,722,094
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ............................... 141,581,039 74,067,519 129,240,357 1,738,142 1,690,949
Undistributed net investment income (loss) .... 425,534 508,292 (237,447) 74 (284)
Accumulated net realized gain (loss)
on investments, future contracts, and
foreign currency related items ............. 7,287,208 (1,383,722) 8,490,601 (16) (348)
Net unrealized appreciation (depreciation) on:
Investments ................................ 33,900,155 15,431,610 35,322,116 25,653 31,777
Futures contracts and foreign currency
related items ........................... (316) (2,410) 6 -- --
------------ ------------ ------------ ------------ ------------
Net assets ................................... $183,193,620 $ 88,621,289 $172,815,633 $ 1,763,853 $ 1,722,094
============ ============ ============ ============ ============
Total shares outstanding (no par value),
unlimited shares authorized .............. 10,004,226 6,457,461 8,528,000 175,471 169,889
============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share .............. $ 18.31 $ 13.72 $ 20.26 $ 10.05 $ 10.14
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
JNL/S&P JNL/S&P
JNL/S&P Very JNL/S&P Equity JNL/S&P
Aggressive Aggressive Equity Aggressive Conservative
Growth Growth Growth Growth Growth
Series I Series I Series I Series I Series II
-------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ........... $ 1,000,973 $ 704,284 $ 1,190,061 $ 606,833 $ 2,334,837
============ ============ ============ ============ ============
Investments in securities, at value ........... 1,029,404 728,964 1,195,716 625,215 2,317,286
Cash .......................................... -- -- -- -- --
Foreign currency .............................. -- -- -- -- --
Receivables:
Dividends and interest ..................... -- -- -- -- --
Forward foreign currency exchange contracts -- -- -- -- --
Foreign taxes recoverable .................. -- -- -- -- --
Fund shares sold ........................... -- -- -- -- --
Investment securities sold ................. 39 28 46 24 95
Reimbursement from Adviser ................. -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total assets ................................. $ 1,029,443 $ 728,992 $ 1,195,762 $ 625,239 $ 2,317,381
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment advisory fees ................... 184 96 216 94 900
Forward foreign currency exchange contracts -- -- -- -- --
Fund shares redeemed ....................... 39 28 46 24 95
Investment securities purchased ............ -- -- -- -- --
Variation margin .............................. -- -- -- -- --
Other liabilities ............................. -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total liabilities ............................. 223 124 262 118 995
------------ ------------ ------------ ------------ ------------
Net assets ................................... $ 1,029,220 $ 728,868 $ 1,195,500 $ 625,121 $ 2,316,386
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ............................... 1,000,976 705,217 1,191,781 606,838 2,335,289
Undistributed net investment income (loss) .... (184) (96) (216) (94) (900)
Accumulated net realized gain (loss)
on investments, future contracts, and
foreign currency related items ............. (3) (933) (1,720) (5) (452)
Net unrealized appreciation (depreciation) on:
Investments ................................ 28,431 24,680 5,655 18,382 (17,551)
Futures contracts and foreign currency
related items ........................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net assets ................................... $ 1,029,220 $ 728,868 $ 1,195,500 $ 625,121 $ 2,316,386
============ ============ ============ ============ ============
Total shares outstanding (no par value),
unlimited shares authorized .............. 100,568 70,476 119,886 62,062 233,914
============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share .............. $ 10.23 $ 10.34 $ 9.97 $ 10.07 $ 9.90
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
JNL/S&P JNL/S&P
JNL/S&P JNL/S&P Very JNL/S&P Equity
Moderate Aggressive Aggressive Equity Aggressive
Growth Growth Growth Growth Growth
Series II Series II Series II Series II Series II
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ............ $ 1,677,257 $ 294,915 $ 244,322 $ 455,074 $ 237,884
============ ============ ============ ============ ============
Investments in securities, at value ........... 1,671,819 293,650 248,686 454,319 237,076
Cash .......................................... -- -- -- -- --
Foreign currency .............................. -- -- -- -- --
Receivables:
Dividends and interest ..................... -- -- -- -- --
Forward foreign currency exchange contracts -- -- -- -- --
Foreign taxes recoverable .................. -- -- -- -- --
Fund shares sold ........................... -- -- -- -- --
Investment securities sold ................. 69 12 10 19 10
Reimbursement from Adviser ................. -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total assets .................................. $ 1,671,888 $ 293,662 $ 248,696 $ 454,338 $ 237,086
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment advisory fees ................... 586 98 92 110 91
Forward foreign currency exchange contracts -- -- -- -- --
Fund shares redeemed ....................... 69 12 10 19 10
Investment securities purchased ............ -- -- -- -- --
Variation margin .............................. -- -- -- -- --
Other liabilities ............................. -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total liabilities ............................. 655 110 102 129 101
------------ ------------ ------------ ------------ ------------
Net assets .................................... $ 1,671,233 $ 293,552 $ 248,594 $ 454,209 $ 236,985
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ............................... 1,677,625 294,935 244,385 455,167 237,966
Undistributed net investment income (loss) .... (586) (98) (92) (110) (91)
Accumulated net realized gain (loss)
on investments, future contracts, and
foreign currency related items ............. (368) (20) (63) (93) (82)
Net unrealized appreciation (depreciation) on:
Investments ................................ (5,438) (1,265) 4,364 (755) (808)
Futures contracts and foreign currency
related items ........................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net assets .................................... $ 1,671,233 $ 293,552 $ 248,594 $ 454,209 $ 236,985
============ ============ ============ ============ ============
Total shares outstanding (no par
value), unlimited shares authorized ...... 168,597 29,804 24,497 46,333 23,898
============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share ............... $ 9.91 $ 9.85 $ 10.15 $ 9.80 $ 9.92
============ ============ ============ ============ ============
</TABLE>
JNL SERIES TRUST
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
JNL JNL JNL
Aggressive Capital Global JNL/Alger JNL/Alliance
1
Growth Growth Equities Growth Growth
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends ........................... $ 238,898 $ 105,496 $ 1,608,927 $ 353,208 $ 7,875
Interest ............................. 133,043 49,008 196,964 157,616 936
Foreign tax withholding .............. (12,008) (3,813) (205,250) (3,015) (193)
---------- ---------- ---------- ---------- -------
Total investment income ................. 359,933 150,691 1,600,641 507,809 8,618
---------- ---------- ---------- ---------- -------
Expenses
Investment advisory fees ............. 457,587 388,157 909,461 509,324 5,722
Custodian fees ....................... 39,659 22,451 188,599 9,449 4,664
Portfolio accounting fees ............ 12,483 12,483 22,825 12,759 5,520
Professional fees .................... 9,891 9,016 14,500 10,460 3,186
Other ................................ 11,396 10,544 21,439 7,749 1,080
---------- ---------- ---------- ---------- -------
Total operating expenses ................ 531,016 442,651 1,156,824 549,741 20,172
Less:
Reimbursement from Adviser ........... 1,178 6,591 109,634 -- 13,342
---------- ---------- ---------- ---------- -------
Net expenses ............................ 529,838 436,060 1,047,190 549,741 6,830
---------- ---------- ---------- ---------- -------
Net investment income (loss) ............ (169,905) (285,369) 553,451 (41,932) 1,788
---------- ---------- ---------- ---------- -------
Realized and unrealized gains (losses)
Net realized gain (loss) on:
Investments .......................... 6,492,296 6,662,266 4,507,685 3,686,984 36,435
Foreign currency related items ....... 50,587 (62,400) 173,745 -- --
Options written ...................... -- -- -- -- --
Futures contracts .................... -- -- 21,500 -- --
Net change in unrealized appreciation
(depreciation) on:
Investments .......................... 18,956,376 7,029,407 37,356,219 20,128,944 236,521
Futures contracts and foreign currency
related items ..................... (24,426) (101,005) (57,824) -- --
Options written ...................... -- -- -- -- --
---------- ---------- ---------- ---------- -------
Net realized and unrealized gains
(losses) ............................ 25,474,833 13,528,268 42,001,325 23,815,928 272,956
---------- ---------- ---------- ---------- -------
Net increase (decrease) in net assets
resulting from operations ............. $ 25,304,928 $ 13,242,899 $ 42,554,776 $ 23,773,996 $ 274,744
============ ============ ============ ============ ============
</TABLE>
- --------------------------------------------------------
1
Period from March 2, 1998 (commencement of operations).
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
JNL/JPM
JNL/Eagle JNL/Eagle International JNL/PIMCO
Core SmallCap & Emerging Total Return JNL/Putnam
Equity Equity Markets Bond Growth
1 1
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends ........................... $ 142,281 $ 17,517 $ 59,185 $ -- $ 425,869
Interest ............................. 33,498 33,417 2,647 60,812 100,649
Foreign tax withholding .............. (2,633) -- (7,448) -- (134)
---------- ---------- ---------- ---------- -------
Total investment income ................. 173,146 50,934 54,384 60,812 526,384
---------- ---------- ---------- ---------- -------
Expenses
Investment advisory fees ............. 73,692 90,561 16,728 7,430 489,275
Custodian fees ....................... 5,719 6,048 9,860 4,696 19,175
Portfolio accounting fees ............ 12,736 12,736 9,600 5,520 13,075
Professional fees .................... 5,022 5,753 3,186 3,186 10,994
Other ................................ 2,782 1,920 1,080 1,080 8,949
---------- ---------- ---------- ---------- -------
Total operating expenses ................ 99,951 117,018 40,454 21,912 541,468
Less:
Reimbursement from Adviser ........... 15,672 12,158 21,153 12,890 --
---------- ---------- ---------- ---------- -------
Net expenses ............................ 84,279 104,860 19,301 9,022 541,468
---------- ---------- ---------- ---------- -------
Net investment income (loss) ............ 88,867 (53,926) 35,083 51,790 (15,084)
---------- ---------- ---------- ---------- -------
Realized and unrealized gains (losses)
Net realized gain (loss) on:
Investments .......................... 195,729 344,219 170,703 (15,820) 2,517,389
Foreign currency related items ....... -- -- (20,086) -- --
Options written ...................... 1,520 -- -- -- --
Futures contracts .................... -- -- -- -- --
Net change in unrealized appreciation
(depreciation) on:
Investments .......................... 1,214,606 603,257 (80,350) 73,864 19,660,382
Futures contracts and foreign currency
related items ..................... (2) -- 10,215 -- --
Options written ...................... (457) -- -- -- --
---------- ---------- ---------- ---------- -------
Net realized and unrealized gains
(losses) ............................ 1,411,396 947,476 80,482 58,044 22,177,771
---------- ---------- ---------- ---------- -------
Net increase (decrease) in net assets
resulting from operations ............. $ 1,500,263 $ 893,550 $ 115,565 $ 109,834 $ 22,162,687
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Goldman
JNL/Putnam Sachs/JNL Lazard/JNL Lazard/JNL PPM
Value Growth & Small Cap Mid Cap America/JNL
Equity Income Value Value Balanced
1 1 1
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends ........................... $ 1,272,530 $ 17,116 $ 12,007 $ 17,464 $ 417,257
Interest ............................. 144,516 3,107 8,258 5,634 1,290,946
Foreign tax withholding .............. (4,477) (57) (74) (636) --
---------- ---------- ---------- ---------- -------
Total investment income ................. 1,412,569 20,166 20,191 22,462 1,708,203
---------- ---------- ---------- ---------- -------
Expenses
Investment advisory fees ............. 627,110 8,127 17,493 14,120 265,926
Custodian fees ....................... 29,583 4,678 4,757 4,735 11,497
Portfolio accounting fees ............ 13,001 5,520 5,520 5,520 4,924
Professional fees .................... 11,132 3,186 3,186 3,186 8,455
Other ................................ 10,188 1,080 1,080 1,080 17,470
---------- ---------- ---------- ---------- -------
Total operating expenses ................ 691,014 22,591 32,036 28,641 308,272
Less:
Reimbursement from Adviser ........... -- 13,146 12,044 12,348 3,694
---------- ---------- ---------- ---------- -------
Net expenses ............................ 691,014 9,445 19,992 16,293 304,578
---------- ---------- ---------- ---------- -------
Net investment income (loss) ............ 721,555 10,721 199 6,169 1,403,625
---------- ---------- ---------- ---------- -------
Realized and unrealized gains (losses)
Net realized gain (loss) on:
Investments .......................... 4,914,706 17,608 62,456 (19,459) 1,695,502
Foreign currency related items ....... 7 -- -- -- --
Options written ...................... -- 17,511 -- -- --
Futures contracts .................... -- -- -- -- --
Net change in unrealized appreciation
(depreciation) on:
Investments .......................... 3,999,682 (148,520) (247,680) (148,856) 1,965,414
Futures contracts and foreign currency
related items ..................... -- (758) -- -- --
Options written ...................... -- -- -- -- --
---------- ---------- ---------- ---------- -------
Net realized and unrealized gains
(losses) ............................ 8,914,395 (114,159) (185,224) (168,315) 3,660,916
---------- ---------- ---------- ---------- -------
Net increase (decrease) in net assets
resulting from operations ............. $ 9,635,950 $ (103,438) $ (185,025) $ (162,146) $ 5,064,541
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
PPM PPM Salomon
America/JNL America/JNL Salomon Salomon Brothers/JNL
High Yield Money Brothers/JNL Brothers/JNL High Yield
Bond Market Balanced Global Bond Bond
1 1
Series Series Series Series Series
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends ........................... $ 44,107 $ -- $ 6,951 $ -- $ --
Interest ............................. 3,754,967 1,368,798 19,297 1,667,957 137,906
Foreign tax withholding .............. -- -- (91) (318) --
---------- ---------- ---------- ---------- -------
Total investment income ................. 3,799,074 1,368,798 26,157 1,667,639 137,906
---------- ---------- ---------- ---------- -------
Expenses
Investment advisory fees ............. 296,438 144,790 3,991 177,460 13,861
Custodian fees ....................... 10,088 7,801 4,640 12,453 4,763
Portfolio accounting fees ............ 12,759 12,776 5,520 4,370 5,520
Professional fees .................... 8,864 6,492 3,186 5,723 3,186
Other ................................ 7,093 5,927 1,080 5,451 1,080
---------- ---------- ---------- ---------- -------
Total operating expenses ................ 335,242 177,786 18,417 205,457 28,410
Less:
Reimbursement from Adviser ........... -- 1,184 13,677 16,519 11,950
---------- ---------- ---------- ---------- -------
Net expenses ............................ 335,242 176,602 4,740 188,938 16,460
---------- ---------- ---------- ---------- -------
Net investment income (loss) ............ 3,463,832 1,192,196 21,417 1,478,701 121,446
---------- ---------- ---------- ---------- -------
Realized and unrealized gains (losses)
Net realized gain (loss) on:
Investments .......................... 1,923,509 -- 597 187,121 52
Foreign currency related items ....... -- -- (1) 37,471 --
Options written ...................... -- -- -- -- --
Futures contracts .................... -- -- -- -- --
Net change in unrealized appreciation
(depreciation) on:
Investments .......................... (1,721,359) -- (3,152) (733,541) (47,576)
Futures contracts and foreign currency
related items ..................... -- -- -- (14,264) --
Options written ...................... -- -- -- -- --
---------- ---------- ---------- ---------- -------
Net realized and unrealized gains
(losses) ............................ 202,150 -- (2,556) (523,213) (47,524)
---------- ---------- ---------- ---------- -------
Net increase (decrease) in net assets
resulting from operations ............. $ 3,665,982 $ 1,192,196 $ 18,861 $ 955,488 $ 73,922
============ ============ ============ ============ ============
</TABLE>
<PAGE>
JNL SERIES TRUST
STATEMENTS OF OPERATIONS (UNAUDITED) (continued)
For the Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
PPM Salomon
America/JNL Salomon Salomon Brothers/JNL
Money Brothers/JNL Brothers/JNL High Yield
Market Balanced Global Bond Bond
1 1
Series Series Series Series
------ ------ ------ ------
<S> <C> <C> <C> <C>
Investment income
Dividends ........................... $ -- $ 6,951 $ -- $ --
Interest ............................. 1,368,798 19,297 1,667,957 137,906
Foreign tax withholding .............. -- (91) (318) --
---------- ---------- ---------- -------
Total investment income ................. 1,368,798 26,157 1,667,639 137,906
---------- ---------- ---------- -------
Expenses
Investment advisory fees ............. 144,790 3,991 177,460 13,861
Custodian fees ....................... 7,801 4,640 12,453 4,763
Portfolio accounting fees ............ 12,776 5,520 4,370 5,520
Professional fees .................... 6,492 3,186 5,723 3,186
Other ................................ 5,927 1,080 5,451 1,080
---------- ---------- ---------- -------
Total operating expenses ................ 177,786 18,417 205,457 28,410
Less:
Reimbursement from Adviser ........... 1,184 13,677 16,519 11,950
---------- ---------- ---------- -------
Net expenses ............................ 176,602 4,740 188,938 16,460
---------- ---------- ---------- -------
Net investment income (loss) ............ 1,192,196 21,417 1,478,701 121,446
---------- ---------- ---------- -------
Realized and unrealized gains (losses)
Net realized gain (loss) on:
Investments .......................... -- 597 187,121 52
Foreign currency related items ....... -- (1) 37,471 --
Options written ...................... -- -- -- --
Futures contracts .................... -- -- -- --
Net change in unrealized appreciation
(depreciation) on:
Investments .......................... -- (3,152) (733,541) (47,576)
Futures contracts and foreign currency
related items ..................... -- -- (14,264) --
Options written ...................... -- -- -- --
---------- ---------- ---------- -------
Net realized and unrealized gains
(losses) ............................ -- (2,556) (523,213) (47,524)
---------- ---------- ---------- -------
Net increase (decrease) in net assets
resulting from operations ............. $ 1,192,196 $ 18,861 $ 955,488 $ 73,922
============ ============ ============ ============
</TABLE>
- ------------------------------------------
1
Period from March 2, 1998 (commencement of operations).
2
Period from April 1, 1998 (commencement of operations).
3
Period from April 8, 1998 (commencement of operations).
4
Period from April 9, 1998 (commencement of operations).
5
Period from April 13, 1998 (commencement of operations).
6
Period from April 15, 1998 (commencement of operations).
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
T. Rowe
Salomon T. Rowe Price/JNL T. Rowe
Brothers/JNL Price/JNL International Price/JNL JNL/S&P
U.S. Government Established Equity Mid-Cap Conservative
& Quality Bond Growth Investment Growth Growth
4
Series Series Series Series Series I
------ ------ ------ ------ --------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends ........................... $ -- $ 864,990 $ 1,165,332 $ 198,320 $ 345
Interest ............................. 1,037,374 246,583 83,752 326,187 --
Foreign tax withholding .............. -- (33,660) (141,015) (362) --
---------- ---------- ---------- ---------- -------
Total investment income ................. 1,037,374 1,077,913 1,108,069 524,145 345
---------- ---------- ---------- ---------- -------
Expenses
Investment advisory fees ............. 108,051 650,335 470,460 709,266 271
Custodian fees ....................... 5,234 23,072 50,425 15,083 --
Portfolio accounting fees ............ 12,084 13,068 21,201 13,252 --
Professional fees .................... 7,256 11,695 9,993 11,858 --
Other ................................ 3,954 11,755 7,151 12,133 --
---------- ---------- ---------- ---------- -------
Total operating expenses ................ 136,579 709,925 559,230 761,592 271
Less:
Reimbursement from Adviser ........... 5,812 -- 28,716 -- --
---------- ---------- ---------- ---------- -------
Net expenses ............................ 130,767 709,925 530,514 761,592 271
---------- ---------- ---------- ---------- -------
Net investment income (loss) ............ 906,607 367,988 577,555 (237,447) 74
---------- ---------- ---------- ---------- -------
Realized and unrealized gains (losses)
Net realized gain (loss) on:
Investments .......................... 76,383 6,599,894 (538,921) 7,147,419 (16)
Foreign currency related items ....... -- (36,277) 21,682 1 --
Options written ...................... -- -- -- -- --
Futures contracts .................... -- -- -- -- --
Net change in unrealized appreciation
(depreciation) on:
Investments .......................... 170,347 16,310,837 10,577,225 15,556,237 25,653
Futures contracts and foreign currency
related items ..................... -- 413 (450) 3 --
Options written ...................... -- -- -- -- --
---------- ---------- ---------- ---------- -------
Net realized and unrealized gains
(losses) ............................ 246,730 22,874,867 10,059,536 22,703,660 25,637
---------- ---------- ---------- ---------- -------
Net increase (decrease) in net assets
resulting from operations ............. $ 1,153,337 $ 23,242,855 $ 10,637,091 $ 22,466,213 $ 25,711
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
JNL/S&P JNL/S&P
JNL/S&P JNL/S&P Very JNL/S&P Equity
Moderate Aggressive Aggressive Equity Aggressive
Growth Growth Growth Growth Growth
3 3 2 5 6
Series I Series I Series I Series I Series I
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends ........................... $ -- $ -- $ -- $ -- $ --
Interest ............................. -- -- -- -- --
Foreign tax withholding .............. -- -- -- -- --
---------- ---------- ---------- ---------- -------
Total investment income ................. -- -- -- -- --
---------- ---------- ---------- ---------- -------
Expenses
Investment advisory fees ............. 284 184 96 216 94
Custodian fees ....................... -- -- -- -- --
Portfolio accounting fees ............ -- -- -- -- --
Professional fees .................... -- -- -- -- --
Other ................................ -- -- -- -- --
---------- ---------- ---------- ---------- -------
Total operating expenses ................ 284 184 96 216 94
Less:
Reimbursement from Adviser ........... -- -- -- -- --
---------- ---------- ---------- ---------- -------
Net expenses ............................ 284 184 96 216 94
---------- ---------- ---------- ---------- -------
Net investment income (loss) ............ (284) (184) (96) (216) (94)
---------- ---------- ---------- ---------- -------
Realized and unrealized gains (losses)
Net realized gain (loss) on:
Investments .......................... (348) (3) (933) (1,720) (5)
Foreign currency related items ....... -- -- -- -- --
Options written ...................... -- -- -- -- --
Futures contracts .................... -- -- -- -- --
Net change in unrealized appreciation
(depreciation) on:
Investments .......................... 31,777 28,431 24,680 5,655 18,382
Futures contracts and foreign currency
related items ..................... -- -- -- -- --
Options written ...................... -- -- -- -- --
---------- ---------- ---------- ---------- -------
Net realized and unrealized gains
(losses) ............................ 31,429 28,428 23,747 3,935 18,377
---------- ---------- ---------- ---------- -------
Net increase (decrease) in net assets
resulting from operations ............. $ 31,145 $ 28,244 $ 23,651 $ 3,719 $ 18,283
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
JNL/S&P
JNL/S&P JNL/S&P JNL/S&P Very JNL/S&P
Conservative Moderate Aggressive Aggressive Equity
Growth Growth Growth Growth Growth
5 5 5 5 5
Series II Series II Series II Series II Series II
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends ........................... $ -- $ -- $ -- $ -- $ --
Interest ............................. -- -- -- -- --
Foreign tax withholding .............. -- -- -- -- --
---------- ---------- ---------- ---------- -------
Total investment income ................. -- -- -- -- --
---------- ---------- ---------- ---------- -------
Expenses
Investment advisory fees ............. 900 586 98 92 110
Custodian fees ....................... -- -- -- -- --
Portfolio accounting fees ............ -- -- -- -- --
Professional fees .................... -- -- -- -- --
Other ................................ -- -- -- -- --
---------- ---------- ---------- ---------- -------
Total operating expenses ................ 900 586 98 92 110
Less:
Reimbursement from Adviser ........... -- -- -- -- --
---------- ---------- ---------- ---------- -------
Net expenses ............................ 900 586 98 92 110
---------- ---------- ---------- ---------- -------
Net investment income (loss) ............ (900) (586) (98) (92) (110)
---------- ---------- ---------- ---------- -------
Realized and unrealized gains (losses)
Net realized gain (loss) on:
Investments .......................... (452) (368) (20) (63) (93)
Foreign currency related items ....... -- -- -- -- --
Options written ...................... -- -- -- -- --
Futures contracts .................... -- -- -- -- --
Net change in unrealized appreciation
(depreciation) on:
Investments .......................... (17,551) (5,438) (1,265) 4,364 (755)
Futures contracts and foreign currency
related items ..................... -- -- -- -- --
Options written ...................... -- -- -- -- --
---------- ---------- ---------- ---------- -------
Net realized and unrealized gains
(losses) ............................ (18,003) (5,806) (1,285) 4,301 (848)
---------- ---------- ---------- ---------- -------
Net increase (decrease) in net assets
resulting from operations ............. $ (18,903) $ (6,392) $ (1,383) $ 4,209 $ (958)
============ ============ ============ ============ ============
</TABLE>
<PAGE>
JNL SERIES TRUST
STATEMENTS OF OPERATIONS (UNAUDITED) (continued)
For the Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
JNL/S&P JNL/S&P
JNL/S&P Very JNL/S&P Equity
Aggressive Aggressive Equity Aggressive
Growth Growth Growth Growth
5 5 5 5
Series II Series II Series II Series II
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Investment income $ -- $ -- $ -- $ --
Dividends ........................... -- -- -- --
Interest ............................. -- -- -- --
Foreign tax withholding .............. ---------- ---------- ------- ----------
-- -- -- --
Total investment income ................. ---------- ---------- ------- ----------
Expenses 98 92 110 91
Investment advisory fees ............. -- -- -- --
Custodian fees ....................... -- -- -- --
Portfolio accounting fees ............ -- -- -- --
Professional fees .................... -- -- -- --
Other ................................ ---------- ---------- ------- ----------
98 92 110 91
Total operating expenses ................
Less: -- -- -- --
Reimbursement from Adviser ........... ---------- ---------- ------- ----------
98 92 110 91
Net expenses ............................ ---------- ---------- ------- ----------
(98) (92) (110) (91)
Net investment income (loss) ............ ---------- ---------- ------- ----------
Realized and unrealized gains (losses)
Net realized gain (loss) on: (20) (63) (93) (82)
Investments .......................... -- -- -- --
Foreign currency related items ....... -- -- -- --
Options written ...................... -- -- -- --
Futures contracts ....................
Net change in unrealized appreciation
(depreciation) on: (1,265) 4,364 (755) (808)
Investments ..........................
Futures contracts and foreign currency -- -- -- --
related items ..................... -- -- -- --
Options written ...................... ---------- ---------- ------- ----------
Net realized and unrealized gains (1,285) 4,301 (848) (890)
(losses) ............................ ---------- ---------- ------- ----------
Net increase (decrease) in net assets
resulting from operations ............. $ (1,383) $ 4,209 $ (958) $ (981)
============ ============ ============ ============
</TABLE>
- -----------------------------------------
5
Period from April 13, 1998 (commencement of operations).
See notes to financial statements.
<PAGE>
JNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
<TABLE>
<CAPTION>
JNL Aggressive Growth Series JNL Capital Growth Series
---------------------------- ---------------------------
Six months Six months
ended Year ended ended Year ended
June 30, December 31, June 30, December 31,
1998 1997 1998 1997
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ (169,905) $ 224,729 $ (285,369) $ (173,959)
Net realized gain (loss) on:
Investments ......................................... 6,492,296 3,158,027 6,662,266 250,781
Foreign currency related
items ............................................ 50,587 149,464 (62,400) (105,156)
Futures contracts ................................... -- -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 18,956,376 3,997,177 7,029,407 10,161,826
Futures contracts and foreign
currency related items ........................... (24,426) (5,389) (101,005) 55,218
---------- --------- ---------- ----------
Net increase in net assets
from operations ..................................... 25,304,928 7,524,008 13,242,899 10,188,710
---------- --------- ---------- ----------
Distributions to shareholders:
From net investment income ............................. -- -- -- (82,884)
From net realized gains on
investment transactions ............................. -- (2,833,974) -- (157,215)
Return of capital ...................................... -- -- -- (331,198)
---------- --------- ---------- ----------
Total distributions to
shareholders ........................................ -- (2,833,974) -- (571,297)
---------- --------- ---------- ----------
Share transactions:
Proceeds from the sale of
shares .............................................. 27,740,216 54,409,351 19,097,454 40,823,421
Reinvestment of distributions .......................... -- 2,776,615 -- 557,860
Cost of shares redeemed ................................ (14,656,371) (12,560,301) (11,691,895) (14,196,046)
---------- --------- ---------- ----------
Net increase in net assets
from share transactions ............................. 13,083,845 44,625,665 7,405,559 27,185,235
---------- --------- ---------- ----------
Net increase in net assets ................................ 38,388,773 49,315,699 20,648,458 36,802,648
Net assets beginning of
period ................................................. 78,870,344 29,554,645 73,748,799 36,946,151
---------- --------- ---------- ----------
Net assets end of period .................................. $ 117,259,117 $ 78,870,344 $ 94,397,257 $ 73,748,799
============= ============= ============= =============
Undistributed net
investment income (loss) ............................... $ 211,706 $ 381,611 $ (303,154) $ (17,785)
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
JNL Global Equities Series
---------------------------
Six months
ended Year ended
June 30, December 31,
1998 1997
---------- ------------
<S> <C> <C>
Operations:
Net investment income (loss) ........................... $ 553,451 $ 350,018
Net realized gain (loss) on:
Investments ......................................... 4,507,685 2,328,631
Foreign currency related
items ............................................ 173,745 1,151,326
Futures contracts ................................... 21,500 --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 37,356,219 10,283,961
Futures contracts and foreign
currency related items ........................... (57,824) (207,133)
---------- ----------
Net increase in net assets
from operations ..................................... 42,554,776 13,906,803
---------- ----------
Distributions to shareholders:
From net investment income ............................. -- --
From net realized gains on
investment transactions ............................. -- (5,237,204)
Return of capital ...................................... -- --
---------- ----------
Total distributions to
shareholders ........................................ -- (5,237,204)
---------- ----------
Share transactions:
Proceeds from the sale of
shares .............................................. 40,844,185 109,725,346
Reinvestment of distributions .......................... -- 5,176,815
Cost of shares redeemed ................................ (15,206,535) (21,159,959)
---------- ----------
Net increase in net assets
from share transactions ............................. 25,637,650 93,742,202
---------- ----------
Net increase in net assets ................................ 68,192,426 102,411,801
Net assets beginning of
period ................................................. 151,050,275 48,638,474
---------- ----------
Net assets end of period .................................. $ 219,242,701 $ 151,050,275
============= =============
Undistributed net
investment income (loss) ............................... $ 1,187,267 $ 633,816
============= =============
</TABLE>
- ----------------------------------------
* Commencement of operations.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
JNL/Alliance JNL/Eagle Core
JNL/Alger Growth Series Growth Series Equity Series
--------------------------- ------------- --------------
Six months Period from Six months
ended Year ended March 2, ended
June 30, December 31, 1998* to June 30,
1998 1997 June 30, 1998 1998
---------- ------------ ------------- --------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ (41,932) $ (44,675) $ 1,788 $ 88,867
Net realized gain (loss) on:
Investments ......................................... 3,686,984 5,005,844 36,435 197,249
Foreign currency related
items ............................................ -- -- -- --
Futures contracts ................................... -- -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 20,128,944 8,093,212 236,521 1,214,149
Futures contracts and foreign
currency related items ........................... -- -- -- (2)
---------- ---------- ------- ---------
Net increase in net assets
from operations ..................................... 23,773,996 13,054,381 274,744 1,500,263
---------- ---------- ------- ---------
Distributions to shareholders:
From net investment income ............................. -- -- -- --
From net realized gains on
investment transactions ............................. -- (3,165,534) -- --
Return of capital ...................................... -- -- -- --
---------- ---------- ------- ---------
Total distributions to
shareholders ........................................ -- (3,165,534) -- --
---------- ---------- ------- ---------
Share transactions:
Proceeds from the sale of
shares .............................................. 29,528,450 45,948,085 2,281,766 12,681,804
Reinvestment of distributions .......................... -- 3,096,106 -- --
Cost of shares redeemed ................................ (11,976,563) (11,308,282) (3,679) (2,479,709)
---------- ---------- ------- ---------
Net increase in net assets
from share transactions ............................. 17,551,887 37,735,909 2,278,087 10,202,095
---------- ---------- ------- ---------
Net increase in net assets ................................ 41,325,883 47,624,756 2,552,831 11,702,358
Net assets beginning of
period ................................................. 85,876,847 38,252,091 -- 11,896,468
---------- ---------- ------- ---------
Net assets end of period .................................. $ 127,202,730 $ 85,876,847 $ 2,552,831 $ 23,598,826
============= ============= ============= =============
Undistributed net
investment income (loss) ............................... $ (41,932) $ -- $ 1,788 $ 89,000
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
JNL/Eagle Core JNL/Eagle SmallCap
Equity Series Equity Series
-------------- ---------------------------
Six months
Year ended ended Year ended
December 31, June 30, December 31,
1997 1998 1997
-------------- ---------- ------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 67,995 $ (53,926) $ (40,539)
Net realized gain (loss) on:
Investments ......................................... 233,207 344,219 247,335
Foreign currency related
items ............................................ -- -- (2)
Futures contracts ................................... -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 1,423,310 603,257 1,221,736
Futures contracts and foreign
currency related items ........................... 2 -- --
--------- ---------- ---------
Net increase in net assets
from operations ..................................... 1,724,514 893,550 1,428,530
--------- ---------- ---------
Distributions to shareholders:
From net investment income ............................. (67,862) -- --
From net realized gains on
investment transactions ............................. (190,309) -- --
Return of capital ...................................... -- -- --
--------- ---------- ---------
Total distributions to
shareholders ........................................ (258,171) -- --
--------- ---------- ---------
Share transactions:
Proceeds from the sale of
shares .............................................. 8,561,855 16,544,534 12,054,510
Reinvestment of distributions .......................... 227,752 -- --
Cost of shares redeemed ................................ (313,679) (5,414,646) (1,933,750)
--------- ---------- ---------
Net increase in net assets
from share transactions ............................. 8,475,928 11,129,888 10,120,760
--------- ---------- ---------
Net increase in net assets ................................ 9,942,271 12,023,438 11,549,290
Net assets beginning of
period ................................................. 1,954,197 13,493,379 1,944,089
--------- ---------- ---------
Net assets end of period .................................. $ 11,896,468 $ 25,516,817 $ 13,493,379
============= ============= =============
Undistributed net
investment income (loss) ............................... $ 133 $ (53,536) $ 390
============= ============= =============
<PAGE>
JNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (continued)
JNL/JPM
International JNL/PIMCO
& Emerging Total Return
Markets Series Bond Series JNL/Putnam Growth Series
-------------- -------------- ------------------------------
Period from Period from Six months
March 2, March 2, ended Year ended
1998* to 1998* to June 30, December 31,
June 30, 1998 June 30, 1998 1998 1997
------------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 35,083 $ 51,790 $ (15,084) $ 169,636
Net realized gain (loss) on:
Investments ......................................... 170,703 (15,820) 2,517,389 1,060,161
Foreign currency related
items ............................................ (20,086) -- -- (4)
Futures contracts ................................... -- -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... (80,350) 73,864 19,660,382 10,282,868
Futures contracts and foreign
currency related items ........................... 10,215 -- -- --
--------- --------- ---------- ----------
Net increase in net assets
from operations ..................................... 115,565 109,834 22,162,687 11,512,661
--------- --------- ---------- ----------
Distributions to shareholders:
From net investment income ............................. -- -- -- (84,366)
From net realized gains on
investment transactions ............................. -- -- -- (1,494,204)
Return of capital ...................................... -- -- -- --
--------- --------- ---------- ----------
Total distributions to
shareholders ........................................ -- -- -- (1,578,570)
--------- --------- ---------- ----------
Share transactions:
Proceeds from the sale of
shares .............................................. 5,015,805 3,626,769 43,250,420 73,766,092
Reinvestment of distributions .......................... -- -- -- 1,560,371
Cost of shares redeemed ................................ (2,042) (5,252) (11,522,900) (24,451,617)
--------- --------- ---------- ----------
Net increase in net assets
from share transactions ............................. 5,013,763 3,621,517 31,727,520 50,874,846
--------- --------- ---------- ----------
Net increase in net assets ................................ 5,129,328 3,731,351 53,890,207 60,808,937
Net assets beginning of
period ................................................. -- -- 83,612,452 22,803,515
--------- --------- ---------- ----------
Net assets end of period .................................. $ 5,129,328 $ 3,731,351 $ 137,502,659 $ 83,612,452
============= ============= ============= =============
Undistributed net
investment income (loss) ............................... $ 35,083 $ 51,790 $ 70,182 $ 85,266
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
JNL/Putnam Value
Equity Series
--------------------------
Six months
ended Year ended
June 30, December 31,
1998 1997
---------- -----------
<S> <C> <C>
Operations:
Net investment income (loss) ........................... $ 721,555 $ 795,372
Net realized gain (loss) on:
Investments ......................................... 4,914,706 4,469,530
Foreign currency related
items ............................................ 7 (3)
Futures contracts ................................... -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 3,999,682 3,766,196
Futures contracts and foreign
currency related items ........................... -- --
--------- ---------
Net increase in net assets
from operations ..................................... 9,635,950 9,031,095
--------- ---------
Distributions to shareholders:
From net investment income ............................. -- (792,740)
From net realized gains on
investment transactions ............................. -- (4,348,955)
----------
Return of capital ...................................... -- --
Total distributions to
shareholders ........................................ -- (5,141,695)
----------
Share transactions:
Proceeds from the sale of
shares .............................................. 59,674,356 87,596,492
Reinvestment of distributions .......................... -- 5,112,708
Cost of shares redeemed ................................ (10,733,739) (5,794,256)
----------- ----------
Net increase in net assets
from share transactions ............................. 48,940,617 86,914,944
---------- ----------
Net increase in net assets ................................ 58,576,567 90,804,344
---------- ----------
Net assets beginning of
period ................................................. 108,565,022 17,760,678
----------- ----------
Net assets end of period .................................. $ 167,141,589 $ 108,565,022
============= =============
Undistributed net
investment income (loss) ............................... $ 729,456 $ 7,901
============= =============
</TABLE>
- ----------------------------------------
* Commencement of operations.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Goldman
Sachs/JNL Lazard/JNL Lazard/JNL
Growth & Small Cap Mid Cap
Income Series Value Series Value Series
------------- ------------- -------------
Period from Period from Period from
March 2, March 2, March 2,
1998* to 1998* to 1998* to
June 30, 1998 June 30, 1998 June 30, 1998
------------- ------------- -------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 10,721 $ 199 $ 6,169
Net realized gain (loss) on:
Investments ......................................... 17,608 62,456 (19,459)
Foreign currency related
items ............................................ -- -- --
Futures contracts ................................... 17,511 -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... (148,520) (247,680) (148,856)
Futures contracts and foreign
currency related items ........................... (758) -- --
------------ ------------ ------------
Net increase in net assets
from operations ..................................... (103,438) (185,025) (162,146)
------------ ------------ ------------
Distributions to shareholders:
From net investment income ............................. -- -- --
From net realized gains on
investment transactions ............................. -- -- --
Return of capital ...................................... -- -- --
------------ ------------ ------------
Total distributions to
shareholders ........................................ -- -- --
------------ ------------ ------------
Share transactions:
Proceeds from the sale of
shares .............................................. 3,379,852 5,115,890 4,731,613
Reinvestment of distributions .......................... -- -- --
Cost of shares redeemed ................................ (31,535) (1,926) (19,031)
------------ ------------ ------------
Net increase in net assets
from share transactions ............................. 3,348,317 5,113,964 4,712,582
------------ ------------ ------------
Net increase in net assets ................................ 3,244,879 4,928,939 4,550,436
Net assets beginning of
period ................................................. -- -- --
------------ ------------ ------------
Net assets end of period .................................. $ 3,244,879 $ 4,928,939 $ 4,550,436
============ ============ ============
Undistributed net
investment income (loss) ............................... $ 10,721 $ 199 $ 6,169
============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
PPM America/JNL PPM America/JNL
Balanced Series High Yield Bond Series
-------------------------- --------------------------
Six months Six months
ended Year ended ended Year ended
June 30, December 31, June 30, December 31,
1998 1997 1998 1997
---------- ------------ ---------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 1,403,625 $ 1,540,576 $ 3,463,832 $ 3,007,939
Net realized gain (loss) on:
Investments ......................................... 1,695,502 2,477,967 1,923,509 1,066,669
Foreign currency related
items ............................................ -- -- -- --
Futures contracts ................................... -- -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 1,965,414 2,991,325 (1,721,359) 1,355,284
Futures contracts and foreign
currency related items ........................... -- -- -- --
------------ ------------ ------------ ------------
Net increase in net assets
from operations ..................................... 5,064,541 7,009,868 3,665,982 5,429,892
------------ ------------ ------------ ------------
Distributions to shareholders:
From net investment income ............................. -- (1,524,222) -- (3,009,722)
From net realized gains on
investment transactions ............................. -- (2,918,420) -- (1,036,946)
Return of capital ...................................... -- -- -- --
------------ ------------ ------------ ------------
Total distributions to
shareholders ........................................ -- (4,442,642) -- (4,046,668)
------------ ------------ ------------ ------------
Share transactions:
Proceeds from the sale of
shares .............................................. 24,168,003 33,426,507 41,276,956 51,335,721
Reinvestment of distributions .......................... -- 4,400,386 -- 4,011,473
Cost of shares redeemed ................................ (5,148,310) (5,118,205) (10,428,080) (7,415,150)
------------ ------------ ------------ ------------
Net increase in net assets
from share transactions ............................. 19,019,693 32,708,688 30,848,876 47,932,044
------------ ------------ ------------ ------------
Net increase in net assets ................................ 24,084,234 35,275,914 34,514,858 49,315,268
------------ ------------ ------------ ------------
Net assets beginning of
period ................................................. 59,694,491 24,418,577 62,711,664 13,396,396
------------ ------------ ------------ ------------
Net assets end of period .................................. $ 83,778,725 $ 59,694,491 $ 97,226,522 $ 62,711,664
============ ============ ============ ============
Undistributed net
investment income (loss) ............................... $ 1,414,878 $ 11,253 $ 3,468,090 $ 4,258
============ ============ ============ ============
</TABLE>
<PAGE>
JNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (continued)
<TABLE>
<CAPTION>
Salomon
Brothers/JNL
PPM America/JNL Balanced
Money Market Series Series
-------------------------- -------------
Six months Period from
ended Year ended March 2,
June 30, December 31, 1998* to
1998 1997 June 30, 1998
---------- ------------ -------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 1,192,196 $ 1,699,439 $ 21,417
Net realized gain (loss) on:
Investments ......................................... -- -- 597
Foreign currency related
items ............................................ -- -- (1)
Futures contracts ................................... -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... -- -- (3,152)
Futures contracts and foreign
currency related items ........................... -- -- --
------------ ------------ ------------
Net increase in net assets
from operations ..................................... 1,192,196 1,699,439 18,861
------------ ------------ ------------
Distributions to shareholders:
From net investment income ............................. (1,192,196) (1,699,439) --
From net realized gains on
investment transactions ............................. -- -- --
Return of capital ...................................... -- -- --
------------ ------------ ------------
Total distributions to
shareholders ........................................ (1,192,196) (1,699,439) --
------------ ------------ ------------
Share transactions:
Proceeds from the sale of
shares .............................................. 61,247,339 87,270,526 2,091,751
Reinvestment of distributions .......................... 1,192,196 1,658,199 --
Cost of shares redeemed ................................ (50,407,929) (70,873,065) (22,268)
------------ ------------ ------------
Net increase in net assets
from share transactions ............................. 12,031,606 18,055,660 2,069,483
------------ ------------ ------------
Net increase in net assets ................................ 12,031,606 18,055,660 2,088,344
Net assets beginning of
period ................................................. 41,807,847 23,752,187 --
------------ ------------ ------------
Net assets end of period .................................. $ 53,839,453 $ 41,807,847 $ 2,088,344
============ ============ ============
Undistributed net
investment income (loss) ............................... $ -- $ -- $ 21,417
============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Salomon
Brothers/JNL
Salomon Brothers/JNL High Yield
Global Bond Series Bond Series
-------------------------- -------------
Six months Period from
ended Year ended March 2,
June 30, December 31, 1998* to
1998 1997 June 30, 1998
---------- ------------ -------------
<S> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 1,478,701 $ 1,712,722 $ 121,446
Net realized gain (loss) on:
Investments ......................................... 187,121 76,786 52
Foreign currency related
items ............................................ 37,471 74,761 --
Futures contracts ................................... -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... (733,541) 677,987 (47,576)
Futures contracts and foreign
currency related items ........................... (14,264) 50,955 --
------------ ------------ ------------
Net increase in net assets
from operations ..................................... 955,488 2,593,211 73,922
------------ ------------ ------------
Distributions to shareholders:
From net investment income ............................. -- (1,801,495) --
From net realized gains on
investment transactions ............................. -- (164,331) --
Return of capital ...................................... -- (33,012) --
------------ ------------ ------------
Total distributions to
shareholders ........................................ -- (1,998,838) --
------------ ------------ ------------
Share transactions:
Proceeds from the sale of
shares .............................................. 14,115,635 26,946,293 5,687,613
Reinvestment of distributions .......................... -- 1,962,974 --
Cost of shares redeemed ................................ (4,925,176) (5,261,751) (9,045)
------------ ------------ ------------
Net increase in net assets
from share transactions ............................. 9,190,459 23,647,516 5,678,568
------------ ------------ ------------
Net increase in net assets ................................ 10,145,947 24,241,889 5,752,490
Net assets beginning of
period ................................................. 36,724,832 12,482,943 --
------------ ------------ ------------
Net assets end of period .................................. $ 46,870,779 $ 36,724,832 $ 5,752,490
============ ============ ============
Undistributed net
investment income (loss) ............................... $ 1,462,822 $ (15,879) $ 121,446
============ ============ ============
</TABLE>
- ----------------------------------------
* Commencement of operations.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Salomon Brothers/JNL
U.S. Government T. Rowe Price/JNL
& Quality Bond Series Established Growth Series
--------------------------- ---------------------------
Six months Six months
ended Year ended ended Year ended
June 30, December 31, June 30, December 31,
1998 1997 1998 1997
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 906,607 $ 1,013,295 $ 367,988 $ 334,356
Net realized gain (loss) on:
Investments ......................................... 76,383 13,329 6,599,894 5,371,177
Foreign currency related
items ............................................ -- -- (36,277) (22,021)
Futures contracts ................................... -- -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 170,347 639,103 16,310,837 13,594,661
Futures contracts and foreign
currency related items ........................... -- -- 413 (785)
------------- ------------- ------------- -------------
Net increase in net assets
from operations ..................................... 1,153,337 1,665,727 23,242,855 19,277,388
------------- ------------- ------------- -------------
Distributions to shareholders:
From net investment income ............................. -- (965,070) -- (250,893)
From net realized gains on
investment transactions ............................. -- (43,260) -- (4,612,029)
Return of capital ...................................... -- -- -- --
------------- ------------- ------------- -------------
Total distributions to
shareholders ........................................ -- (1,008,330) -- (4,862,922)
------------- ------------- ------------- -------------
Share transactions:
Proceeds from the sale of
shares .............................................. 14,315,614 18,344,542 50,908,579 84,604,291
Reinvestment of distributions .......................... -- 986,266 -- 4,813,632
Cost of shares redeemed ................................ (5,240,922) (4,431,412) (14,979,758) (12,101,386)
------------- ------------- ------------- -------------
Net increase in net assets
from share transactions ............................. 9,074,692 14,899,396 35,928,821 77,316,537
------------- ------------- ------------- -------------
Net increase in net assets ................................ 10,228,029 15,556,793 59,171,676 91,731,003
Net assets beginning of
period ................................................. 25,388,533 9,831,740 124,021,944 32,290,941
------------- ------------- ------------- -------------
Net assets end of period .................................. $ 35,616,562 $ 25,388,533 $ 183,193,620 $ 124,021,944
============= ============= ============= =============
Undistributed net
investment income (loss) ............................... $ 912,323 $ 5,716 $ 425,534 $ 57,546
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
T. Rowe Price/JNL
International Equity T. Rowe Price/JNL
Investment Series Mid-Cap Growth Series
--------------------------- ----------------------------
Six months Six months
ended Year ended ended Year ended
June 30, December 31, June 30, December 31,
1998 1997 1998 1997
---------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 577,555 $ 502,649 $ (237,447) $ (227,852)
Net realized gain (loss) on:
Investments ......................................... (538,921) 513,591 7,147,419 3,012,259
Foreign currency related
items ............................................ 21,682 (43,913) 1 (9,918)
Futures contracts ................................... -- -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 10,577,225 (279,483) 15,556,237 14,655,100
Futures contracts and foreign
currency related items ........................... (450) (5,020) 3 3
------------- ------------- ------------- -------------
Net increase in net assets
from operations ..................................... 10,637,091 687,824 22,466,213 17,429,592
------------- ------------- ------------- -------------
Distributions to shareholders:
From net investment income ............................. -- (531,066) -- --
From net realized gains on
investment transactions ............................. -- (1,459,893) -- (1,652,413)
Return of capital ...................................... -- -- -- --
------------- ------------- ------------- -------------
Total distributions to
shareholders ........................................ -- (1,990,959) -- (1,652,413)
------------- ------------- ------------- -------------
Share transactions:
Proceeds from the sale of
shares .............................................. 10,925,675 38,069,689 40,303,168 76,676,391
Reinvestment of distributions .......................... -- 1,367,879 -- 1,622,324
Cost of shares redeemed ................................ (11,626,125) (7,654,114) (17,006,017) (14,128,114)
------------- ------------- ------------- -------------
Net increase in net assets
from share transactions ............................. (700,450) 31,783,454 23,297,151 64,170,601
------------- ------------- ------------- -------------
Net increase in net assets ................................ 9,936,641 30,480,319 45,763,364 79,947,780
Net assets beginning of
period ................................................. 78,684,648 48,204,329 127,052,269 47,104,489
------------- ------------- ------------- -------------
Net assets end of period .................................. $ 88,621,289 $ 78,684,648 $ 172,815,633 $ 127,052,269
============= ============= ============= =============
Undistributed net
investment income (loss) ............................... $ 508,292 $ (69,263) $ (237,447) $ --
============= ============= ============= =============
</TABLE>
<PAGE>
JNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (continued)
<TABLE>
<CAPTION>
JNL/S&P
JNL/S&P JNL/S&P JNL/S&P Very
Conservative Moderate Aggressive Aggressive
Growth Growth Growth Growth
Series I Series I Series I Series I
------------- ------------- ------------- -------------
Period from Period from Period from Period from
April 9, April 8, April 8, April 1,
1998* to 1998* to 1998* to 1998* to
June 30, 1998 June 30, 1998 June 30, 1998 June 30, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ 74 $ (284) $ (184) $ (96)
Net realized gain (loss) on:
Investments ......................................... (16) (348) (3) (933)
Foreign currency related
items ............................................ -- -- -- --
Futures contracts ................................... -- -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 25,653 31,777 28,431 24,680
Futures contracts and foreign
currency related items ........................... -- -- -- --
----------- ----------- ----------- -----------
Net increase in net assets
from operations ..................................... 25,711 31,145 28,244 23,651
----------- ----------- ----------- -----------
Distributions to shareholders:
From net investment income ............................. -- -- -- --
From net realized gains on
investment transactions ............................. -- -- -- --
Return of capital ...................................... -- -- -- --
----------- ----------- ----------- -----------
Total distributions to
shareholders ........................................ -- -- -- --
----------- ----------- ----------- -----------
Share transactions:
Proceeds from the sale of
shares .............................................. 1,739,243 1,717,380 1,001,302 772,532
Reinvestment of distributions .......................... -- -- -- --
Cost of shares redeemed ................................ (1,101) (26,431) (326) (67,315)
----------- ----------- ----------- -----------
Net increase in net assets
from share transactions ............................. 1,738,142 1,690,949 1,000,976 705,217
----------- ----------- ----------- -----------
Net increase in net assets ................................ 1,763,853 1,722,094 1,029,220 728,868
Net assets beginning of
period ................................................. -- -- -- --
----------- ----------- ----------- -----------
Net assets end of period .................................. $ 1,763,853 $ 1,722,094 $ 1,029,220 $ 728,868
=========== =========== =========== ===========
Undistributed net
investment income (loss) ............................... $ 74 $ (284) $ (184) $ (96)
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
JNL/S&P
JNL/S&P Equity
Equity Aggressive
Growth Growth
Series I Series I
------------- -------------
Period from Period from
April 13, April 15,
1998* to 1998* to
June 30, 1998 June 30, 1998
------------- -------------
Operations:
<S> <C> <C>
Net investment income (loss) ........................... $ (216) $ (94)
Net realized gain (loss) on:
Investments ......................................... (1,720) (5)
Foreign currency related
items ............................................ -- --
Futures contracts ................................... -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... 5,655 18,382
Futures contracts and foreign
currency related items ........................... -- --
----------- -----------
Net increase in net assets
from operations ..................................... 3,719 18,283
----------- -----------
Distributions to shareholders:
From net investment income ............................. -- --
From net realized gains on
investment transactions ............................. -- --
Return of capital ...................................... -- --
----------- -----------
Total distributions to
shareholders ........................................ -- --
----------- -----------
Share transactions:
Proceeds from the sale of
shares .............................................. 1,235,668 606,983
Reinvestment of distributions .......................... -- --
Cost of shares redeemed ................................ (43,887) (145)
----------- -----------
Net increase in net assets
from share transactions ............................. 1,191,781 606,838
----------- -----------
Net increase in net assets ................................ 1,195,500 625,121
Net assets beginning of
period ................................................. -- --
----------- -----------
Net assets end of period .................................. $ 1,195,500 $ 625,121
=========== ===========
Undistributed net
investment income (loss) ............................... $ (216) $ (94)
=========== ===========
</TABLE>
- ----------------------------------------
* Commencement of operations.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
JNL/S&P
JNL/S&P JNL/S&P JNL/S&P Very
Conservative Moderate Aggressive Aggressive
Growth Growth Growth Growth
Series II Series II Series II Series II
------------- ------------- ------------- -------------
Period from Period from Period from Period from
April 13, April 13, April 13, April 13,
1998* to 1998* to 1998* to 1998* to
June 30, 1998 June 30, 1998 June 30, 1998 June 30, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........................... $ (900) $ (586) $ (98) $ (92)
Net realized gain (loss) on:
Investments ......................................... (452) (368) (20) (63)
Foreign currency related
items ............................................ -- -- -- --
Futures contracts ................................... -- -- -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... (17,551) (5,438) (1,265) 4,364
Futures contracts and foreign
currency related items ........................... -- -- -- --
----------- ----------- ----------- -----------
Net increase in net assets
from operations ..................................... (18,903) (6,392) (1,383) 4,209
----------- ----------- ----------- -----------
Distributions to shareholders:
From net investment income ............................. -- -- -- --
From net realized gains on
investment transactions ............................. -- -- -- --
Return of capital ...................................... -- -- -- --
----------- ----------- ----------- -----------
Total distributions to
shareholders ........................................ -- -- -- --
----------- ----------- ----------- -----------
Share transactions:
Proceeds from the sale of
shares .............................................. 2,379,451 1,701,555 298,228 248,807
Reinvestment of distributions .......................... -- -- -- --
Cost of shares redeemed ................................ (44,162) (23,930) (3,293) (4,422)
----------- ----------- ----------- -----------
Net increase in net assets
from share transactions ............................. 2,335,289 1,677,625 294,935 244,385
----------- ----------- ----------- -----------
Net increase in net assets ................................ 2,316,386 1,671,233 293,552 248,594
Net assets beginning of
period ................................................. -- -- -- --
----------- ----------- ----------- -----------
Net assets end of period .................................. $ 2,316,386 $ 1,671,233 $ 293,552 $ 248,594
=========== =========== =========== ===========
Undistributed net
investment income (loss) ............................... $ (900) $ (586) $ (98) $ (92)
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
JNL/S&P
JNL/S&P Equity
Equity Aggressive
Growth Growth
Series II Series II
------------- -------------
Period from Period from
April 13, April 13,
1998* to 1998* to
June 30, 1998 June 30, 1998
------------- -------------
<S> <C> <C>
Operations:
Net investment income (loss) ........................... $ (110) $ (91)
Net realized gain (loss) on:
Investments ......................................... (93) (82)
Foreign currency related
items ............................................ -- --
Futures contracts ................................... -- --
Net change in unrealized appreciation (depreciation) on:
Investments ......................................... (755) (808)
Futures contracts and foreign
currency related items ........................... -- --
----------- -----------
Net increase in net assets
from operations ..................................... (958) (981)
----------- -----------
Distributions to shareholders:
From net investment income ............................. -- --
From net realized gains on
investment transactions ............................. -- --
Return of capital ...................................... -- --
----------- -----------
Total distributions to
shareholders ........................................ -- --
----------- -----------
Share transactions:
Proceeds from the sale of
shares .............................................. 459,659 242,350
Reinvestment of distributions .......................... -- --
Cost of shares redeemed ................................ (4,492) (4,384)
----------- -----------
Net increase in net assets
from share transactions ............................. 455,167 237,966
----------- -----------
Net increase in net assets ................................ 454,209 236,985
Net assets beginning of
period ................................................. -- --
----------- -----------
Net assets end of period .................................. $ 454,209 $ 236,985
=========== ===========
Undistributed net
investment income (loss) ............................... $ (110) $ (91)
=========== ===========
</TABLE>
<PAGE>
JNL SERIES TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
<TABLE>
<CAPTION>
Income from Operations
----------------------------------
Net realized &
unrealized gains
Net Asset Net on investments
value, investment & foreign
beginning income currency
Period or Year Ended of period (loss) related items
- -------------------- --------- ------------- ----------------
<S> <C> <C> <C>
JNL Aggressive Growth Series
Six months ended 6/30/98 ........................... $ 14.53 $ (0.03) $ 4.39
Year ended 12/31/97 ................................ 13.38 0.04 1.65
Period from 4/1/96 to 12/31/96 ..................... 13.13 0.05 1.10
Period from 5/15/95* to 3/31/96 .................... 10.00 0.01 3.53
JNL Capital Growth Series
Six months ended 6/30/98 ........................... 16.50 (0.06) 2.90
Year ended 12/31/97 ................................ 14.46 (0.06) 2.23
Period from 4/1/96 to 12/31/96 ..................... 13.86 0.06 0.70
Period from 5/15/95* to 3/31/96 .................... 10.00 -- 4.70
JNL Global Equities Series
Six months ended 6/30/98 ........................... 17.48 0.06 4.61
Year ended 12/31/97 ................................ 15.20 0.07 2.84
Period from 4/1/96 to 12/31/96 ..................... 13.75 0.03 2.72
Period from 5/15/95* to 3/31/96 .................... 10.00 0.10 4.02
JNL/Alger Growth Series
Six months ended 6/30/98 ........................... 13.56 (0.01) 3.42
Year ended 12/31/97 ................................ 11.16 (0.01) 2.93
Period from 4/1/96 to 12/31/96 ..................... 10.38 -- 0.78
Period from 10/16/95* to 3/31/96 ................... 10.00 -- 0.38
JNL/Alliance Growth Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.01 1.27
JNL/Eagle Core Equity Series
Six months ended 6/30/98 ........................... 13.75 0.06 1.39
Year ended 12/31/97 ................................ 10.62 0.08 3.35
Period from 9/16/96* to 12/31/96 ................... 10.00 0.03 0.62
JNL/Eagle SmallCap Equity Series
Six months ended 6/30/98 ........................... 14.73 (0.04) 1.28
Year ended 12/31/97 ................................ 11.54 (0.07) 3.26
Period from 9/16/96* to 12/31/96 ................... 10.00 (0.01) 1.55
JNL/JPM International & Emerging Markets Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.07 0.16
JNL/PIMCO Total Return Bond Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.15 0.18
</TABLE>
<TABLE>
<CAPTION>
Distributions
---------------------------------------------------
From net
From net realized gains
investment on investment Return of
Period or Year Ended income transactions Capital
- -------------------- ---------- -------------- ----------------
<S> <C> <C> <C>
JNL Aggressive Growth Series
Six months ended 6/30/98 ........................... $ -- $ -- $ --
Year ended 12/31/97 ................................ -- (0.54) --
Period from 4/1/96 to 12/31/96 ..................... (0.05) (0.71) (0.14)
Period from 5/15/95* to 3/31/96 .................... -- (0.41) --
JNL Capital Growth Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.02) (0.04) (0.07)
Period from 4/1/96 to 12/31/96 ..................... -- (0.16) --
Period from 5/15/95* to 3/31/96 .................... -- (0.84) --
JNL Global Equities Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ -- (0.63) --
Period from 4/1/96 to 12/31/96 ..................... (0.08) (0.90) (0.32)
Period from 5/15/95* to 3/31/96 .................... -- (0.37) --
JNL/Alger Growth Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ -- (0.52) --
Period from 4/1/96 to 12/31/96 ..................... -- -- --
Period from 10/16/95* to 3/31/96 ................... -- -- --
JNL/Alliance Growth Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
JNL/Eagle Core Equity Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.08) (0.22) --
Period from 9/16/96* to 12/31/96 ................... (0.03) -- --
JNL/Eagle SmallCap Equity Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ -- -- --
Period from 9/16/96* to 12/31/96 ................... -- -- --
JNL/JPM International & Emerging Markets Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
JNL/PIMCO Total Return Bond Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
</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 for the periods ended June 30, 1998, December 31, 1996 and March
31, 1996.
(c) Computed after giving effect to the Adviser's expense reimbursement and
fees paid indirectly.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ratios and Supplemental Data
---------------------------------------------
Ratio of net Ratio of net
operating investment
Net asset Net assets, expenses to income to
value, end Total Return end of period average net average net Portfolio
Period or Year Ended of period (a) (in thousands) assets (b) (c) assets (b) (c) turnover
- -------------------- --------- ------------ ----------------------------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
JNL Aggressive Growth Series
Six months ended 6/30/98 .................... $ 18.89 30.01 % $ 117,259 1.10 % (0.35)% 67.57 %
Year ended 12/31/97 ......................... 14.53 12.67 % 78,870 1.10 % 0.39 % 137.26 %
Period from 4/1/96 to 12/31/96 .............. 13.38 8.72 % 29,555 1.09 % 0.77 % 85.22 %
Period from 5/15/95* to 3/31/96 ............. 13.13 35.78 % 8,527 1.09 % 0.27 % 163.84 %
JNL Capital Growth Series
Six months ended 6/30/98 .................... 19.34 17.21 % 94,397 1.07 % (0.70)% 59.38 %
Year ended 12/31/97 ......................... 16.50 15.01 % 73,749 1.10 % (0.30)% 131.43 %
Period from 4/1/96 to 12/31/96 .............. 14.46 5.45 % 36,946 1.09 % 0.91 % 115.88 %
Period from 5/15/95* to 3/31/96 ............. 13.86 47.94 % 9,578 1.09 % (0.49)% 128.56 %
JNL Global Equities Series
Six months ended 6/30/98 .................... 22.15 26.72 % 219,243 1.14 % 0.60 % 32.13 %
Year ended 12/31/97 ......................... 17.48 19.12 % 151,050 1.15 % 0.33 % 97.21 %
Period from 4/1/96 to 12/31/96 .............. 15.2 19.99 % 48,638 1.14 % 0.37 % 52.02 %
Period from 5/15/95* to 3/31/96 ............. 13.75 41.51 % 16,141 1.15 % 0.39 % 142.36 %
JNL/Alger Growth Series
Six months ended 6/30/98 .................... 16.97 25.15 % 127,203 1.05 % (0.08)% 43.09 %
Year ended 12/31/97 ......................... 13.56 26.20 % 85,877 1.10 % (0.07)% 125.44 %
Period from 4/1/96 to 12/31/96 .............. 11.16 7.51 % 38,252 1.07 % (0.02)% 59.92 %
Period from 10/16/95* to 3/31/96 ............ 10.38 3.80 % 8,649 1.03 % (0.17)% 50.85 %
JNL/Alliance Growth Series
Period from 3/2/98* to 6/30/98 .............. 11.28 12.80 % 2,553 0.93 % 0.24 % 142.01 %
JNL/Eagle Core Equity Series
Six months ended 6/30/98 .................... 15.20 10.55 % 23,599 1.03 % 1.09 % 33.43 %
Year ended 12/31/97 ......................... 13.75 32.35 % 11,896 1.05 % 1.00 % 51.48 %
Period from 9/16/96* to 12/31/96 ............ 10.62 6.47 % 1,954 1.05 % 1.10 % 1.36 %
JNL/Eagle SmallCap Equity Series
Six months ended 6/30/98 .................... 15.97 8.42 % 25,517 1.10 % (0.57)% 30.46 %
Year ended 12/31/97 ......................... 14.73 27.64 % 13,493 1.10 % (0.54)% 60.78 %
Period from 9/16/96* to 12/31/96 ............ 11.54 15.40 % 1,944 1.10 % (0.26)% 28.01 %
JNL/JPM International & Emerging Markets Series
Period from 3/2/98* to 6/30/98 .............. 10.23 2.30 % 5,129 1.13 % 2.04 % 129.65 %
JNL/PIMCO Total Return Bond Series
Period from 3/2/98* to 6/30/98 .............. 10.33 3.30 % 3,731 0.85 % 4.88 % 371.87 %
</TABLE>
Ratio information assuming
no expense reimbursement
or fees paid indirectly
-----------------------
Ratio of net
Ratio of investment
expenses to income to
average net average net
assets (b) assets (b)
---------- ----------
JNL Aggressive Growth Series
Six months ended 6/30/98 .................... 1.10 % (0.35)%
Year ended 12/31/97 ......................... 1.17 % 0.32 %
Period from 4/1/96 to 12/31/96 .............. 1.40 % 0.46 %
Period from 5/15/95* to 3/31/96 ............. 2.77 % (1.41)%
JNL Capital Growth Series
Six months ended 6/30/98 .................... 1.08 % (0.71)%
Year ended 12/31/97 ......................... 1.11 % (0.31)%
Period from 4/1/96 to 12/31/96 .............. 1.27 % 0.73 %
Period from 5/15/95* to 3/31/96 ............. 2.08 % (1.48)%
JNL Global Equities Series
Six months ended 6/30/98 .................... 1.26 % 0.48 %
Year ended 12/31/97 ......................... 1.37 % 0.11 %
Period from 4/1/96 to 12/31/96 .............. 1.63 % (0.12)%
Period from 5/15/95* to 3/31/96 ............. 2.25 % (0.71)%
JNL/Alger Growth Series
Six months ended 6/30/98 .................... 1.05 % (0.08)%
Year ended 12/31/97 ......................... 1.10 % (0.07)%
Period from 4/1/96 to 12/31/96 .............. 1.19 % (0.14)%
Period from 10/16/95* to 3/31/96 ............ 1.89 % (1.03)%
JNL/Alliance Growth Series
Period from 3/2/98* to 6/30/98 .............. 2.73 % (1.56)%
JNL/Eagle Core Equity Series
Six months ended 6/30/98 .................... 1.22 % 0.90 %
Year ended 12/31/97 ......................... 1.54 % 0.51 %
Period from 9/16/96* to 12/31/96 ............ 4.57 % (2.42)%
JNL/Eagle SmallCap Equity Series
Six months ended 6/30/98 .................... 1.23 % (0.70)%
Year ended 12/31/97 ......................... 1.51 % (0.95)%
Period from 9/16/96* to 12/31/96 ............ 4.77 % (3.93)%
JNL/JPM International & Emerging Markets Series
Period from 3/2/98* to 6/30/98 .............. 2.36 % 0.81 %
JNL/PIMCO Total Return Bond Series
Period from 3/2/98* to 6/30/98 .............. 2.06 % 3.67 %
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (continued)
<TABLE>
<CAPTION>
Income from Operations
---------------------------------
Net realized &
unrealized gains
Net Asset Net on investments
value, investment & foreign
beginning income currency
Period or Year ended of period (loss) related items
- -------------------- ---------- ----------- ----------------
<S> <C> <C> <C>
JNL/Putnam Growth Series
Six months ended 6/30/98 ........................... $ 16.99 $ -- $ 3.85
Year ended 12/31/97 ................................ 14.21 0.04 3.07
Period from 4/1/96 to 12/31/96 ..................... 12.50 0.04 2.12
Period from 5/15/95* to 3/31/96 .................... 10.00 0.01 3.66
JNL/Putnam Value Equity Series
Six months ended 6/30/98 ........................... 16.82 0.09 1.32
Year ended 12/31/97 ................................ 14.50 0.13 3.03
Period from 4/1/96 to 12/31/96 ..................... 12.77 0.10 1.97
Period from 5/15/95* to 3/31/96 .................... 10.00 0.23 2.86
Goldman Sachs/JNL Growth & Income Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.03 (0.29)
Lazard/JNL Small Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 -- (0.36)
Lazard/JNL Mid Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 10.00 0.01 (0.34)
PPM America/JNL Balanced Series
Six months ended 6/30/98 ........................... 13.06 0.24 0.79
Year ended 12/31/97 ................................ 11.92 0.36 1.83
Period from 4/1/96 to 12/31/96 ..................... 11.17 0.10 0.98
Period from 5/15/95* to 3/31/96 .................... 10.00 0.25 1.40
PPM America/JNL High Yield Bond Series
Six months ended 6/30/98 ........................... 11.48 0.43 0.16
Year ended 12/31/97 ................................ 10.67 0.59 1.02
Period from 4/1/96 to 12/31/96 ..................... 10.23 0.51 0.64
Period from 5/15/95* to 3/31/96 .................... 10.00 0.73 0.04
PPM America/JNL Money Market Series
Period ended 6/30/98 ............................... 1.00 0.02 --
Year ended 12/31/97 ................................ 1.00 0.05 --
Period from 4/1/96 to 12/31/96 ..................... 1.00 0.04 --
Period from 5/15/95* to 3/31/96 .................... 1.00 0.04 --
Salomon Brothers/JNL Balanced Series
Period from 3/2/98* to 6/30/98 .................... 10.00 0.11 0.12
Salomon Brothers/JNL Global Bond Series
Six months ended 6/30/98 ........................... 11.12 0.39 (0.11)
Year ended 12/31/97 ................................ 10.63 0.54 0.59
Period from 4/1/96 to 12/31/96 ..................... 10.46 0.42 0.70
Period from 5/15/95* to 3/31/96 .................... 10.00 0.81 0.24
</TABLE>
<TABLE>
<CAPTION>
Distributions
---------------------------------------------------
From net
From net realized gains
investment on investment Return of
Period or Year Ended income transactions Capital
- -------------------- ---------- -------------- ----------------
<S> <C> <C> <C>
JNL/Putnam Growth Series
Six months ended 6/30/98 ........................... $ -- $ -- $ --
Year ended 12/31/97 ................................ (0.02) (0.31) --
Period from 4/1/96 to 12/31/96 ..................... (0.05) (0.40) --
Period from 5/15/95* to 3/31/96 .................... -- (1.17) --
JNL/Putnam Value Equity Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.13) (0.71) --
Period from 4/1/96 to 12/31/96 ..................... (0.15) (0.19) --
Period from 5/15/95* to 3/31/96 .................... (0.17) (0.15) --
Goldman Sachs/JNL Growth & Income Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
Lazard/JNL Small Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
Lazard/JNL Mid Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... -- -- --
PPM America/JNL Balanced Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.36) (0.69) --
Period from 4/1/96 to 12/31/96 ..................... (0.15) (0.18) --
Period from 5/15/95* to 3/31/96 .................... (0.19) (0.29) --
PPM America/JNL High Yield Bond Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.59) (0.21) --
Period from 4/1/96 to 12/31/96 ..................... (0.69) (0.02) --
Period from 5/15/95* to 3/31/96 .................... (0.54) -- --
PPM America/JNL Money Market Series
Period ended 6/30/98 ............................... (0.02) -- --
Year ended 12/31/97 ................................ (0.05) -- --
Period from 4/1/96 to 12/31/96 ..................... (0.04) -- --
Period from 5/15/95* to 3/31/96 .................... (0.04) -- --
Salomon Brothers/JNL Balanced Series
Period from 3/2/98* to 6/30/98 .................... -- -- --
Salomon Brothers/JNL Global Bond Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.58) (0.05) (0.01)
Period from 4/1/96 to 12/31/96 ..................... (0.69) (0.26) --
Period from 5/15/95* to 3/31/96 .................... (0.56) (0.03) --
</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 for the periods ended June 30, 1998, December 31, 1996 and March
31, 1996.
(c) Computed after giving effect to the Adviser's expense reimbursement and
fees paid indirectly.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ratio and Supplemental Data
----------------------------------------------------
Ratio of net Ratio of net
operating investment
Net asset Total Net assets, expenses to income to
value, end Return end of period average net average net Portfolio
Period or Year ended of period (a) (in thousands) assets (b)(c) assets (b)(c) turnover
- -------------------- --------- ------ -------------- ------------- ------------- --------
<S> <C> <C> <C> <C> <C> <C>
JNL/Putnam Growth Series
Six months ended 6/30/98 ........................... 20.84 22.66 % $137,503 1.00 % (0.03)% 25.98 %
Year ended 12/31/97 ................................ 16.99 21.88 % 83,612 1.05 % 0.31 % 194.81 %
Period from 4/1/96 to 12/31/96 ..................... 14.21 17.28 % 22,804 1.04 % 0.94 % 184.33 %
Period from 5/15/95* to 3/31/96 .................... 12.5 37.69 % 2,518 0.95 % 0.28 % 255.03 %
JNL/Putnam Value Equity Series
Six months ended 6/30/98 ........................... 18.23 8.38 % 167,142 0.99 % 1.03 % 43.15 %
Year ended 12/31/97 ................................ 16.82 21.82 % 108,565 1.03 % 1.43 % 112.54 %
Period from 4/1/96 to 12/31/96 ..................... 14.50 16.25 % 17,761 0.85 % 2.29 % 13.71 %
Period from 5/15/95* to 3/31/96 .................... 12.77 31.14 % 3,365 0.87 % 2.33 % 30.12 %
Goldman Sachs/JNL Growth & Income Series
Period from 3/2/98* to 6/30/98 ..................... 9.74 (2.60)% 3,245 1.07 % 1.22 % 12.69 %
Lazard/JNL Small Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 9.64 (3.60)% 4,929 1.20 % 0.01 % 9.20 %
Lazard/JNL Mid Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 9.67 (3.30)% 4,550 1.12 % 0.43 % 17.46 %
PPM America/JNL Balanced Series
Six months ended 6/30/98 ........................... 14.09 7.89 % 83,779 0.84 % 3.88 % 20.34 %
Year ended 12/31/97 ................................ 13.06 18.43 % 59,694 0.93 % 3.72 % 160.88 %
Period from 4/1/96 to 12/31/96 ..................... 11.92 9.72 % 24,419 1.04 % 2.39 % 158.15 %
Period from 5/15/95* to 3/31/96 .................... 11.17 16.60 % 4,761 1.01 % 2.99 % 115.84 %
PPM America/JNL High Yield Bond Series
Six months ended 6/30/98 ........................... 12.07 5.14 % 97,227 0.83 % 8.54 % 131.14 %
Year ended 12/31/97 ................................ 11.48 15.05 % 62,712 0.90 % 8.15 % 189.25 %
Period from 4/1/96 to 12/31/96 ..................... 10.67 11.24 % 13,396 0.88 % 8.64 % 113.08 %
Period from 5/15/95* to 3/31/96 .................... 10.23 7.82 % 6,156 0.88 % 8.34 % 186.21 %
PPM America/JNL Money Market Series
Period ended 6/30/98 ............................... 1.00 2.48 % 53,839 0.73 % 4.94 % --
Year ended 12/31/97 ................................ 1.00 5.01 % 41,808 0.75 % 4.92 % --
Period from 4/1/96 to 12/31/96 ..................... 1.00 3.61 % 23,752 0.75 % 4.75 % --
Period from 5/15/95* to 3/31/96 .................... 1.00 4.59 % 6,816 0.75 % 5.06 % --
Salomon Brothers/JNL Balanced Series
Period from 3/2/98* to 6/30/98 .................... 10.23 2.30 % 2,088 0.95 % 4.29 % 7.56 %
Salomon Brothers/JNL Global Bond Series
Six months ended 6/30/98 ........................... 11.40 2.52 % 46,871 0.90 % 7.08 % 167.19 %
Year ended 12/31/97 ................................ 11.12 10.66 % 36,725 1.00 % 6.83 % 134.55 %
Period from 4/1/96 to 12/31/96 ..................... 10.63 10.68 % 12,483 0.99 % 7.52 % 109.85 %
Period from 5/15/95* to 3/31/96 .................... 10.46 10.74 % 6,380 1.00 % 9.01 % 152.89 %
</TABLE>
<TABLE>
<CAPTION>
Ratio of information assuming
no expense reimbursement
or fees paid indirectly
-----------------------------
Ratio of net
Ratio of investment
expenses to income to
average net average net
Period or Year ended assets (b) assets (b)
- -------------------- ---------- -------------
<S> <C> <C>
JNL/Putnam Growth Series
Six months ended 6/30/98 ........................... 1.00 % (0.03)%
Year ended 12/31/97 ................................ 1.05 % 0.31 %
Period from 4/1/96 to 12/31/96 ..................... 1.27 % 0.71 %
Period from 5/15/95* to 3/31/96 .................... 5.38 % (4.15)%
JNL/Putnam Value Equity Series
Six months ended 6/30/98 ........................... 0.99 % 1.03 %
Year ended 12/31/97 ................................ 1.09 % 1.37 %
Period from 4/1/96 to 12/31/96 ..................... 1.53 % 1.61 %
Period from 5/15/95* to 3/31/96 .................... 2.28 % 0.91 %
Goldman Sachs/JNL Growth & Income Series
Period from 3/2/98* to 6/30/98 ..................... 2.57 % (0.28)%
Lazard/JNL Small Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 1.92 % (0.71)%
Lazard/JNL Mid Cap Value Series
Period from 3/2/98* to 6/30/98 ..................... 1.98 % (0.43)%
PPM America/JNL Balanced Series
Six months ended 6/30/98 ........................... 0.85 % 3.87 %
Year ended 12/31/97 ................................ 0.94 % 3.71 %
Period from 4/1/96 to 12/31/96 ..................... 1.22 % 2.21 %
Period from 5/15/95* to 3/31/96 .................... 3.71 % 0.29 %
PPM America/JNL High Yield Bond Series
Six months ended 6/30/98 ........................... 0.83 % 8.54 %
Year ended 12/31/97 ................................ 0.90 % 8.15 %
Period from 4/1/96 to 12/31/96 ..................... 1.21 % 8.31 %
Period from 5/15/95* to 3/31/96 .................... 1.50 % 7.72 %
PPM America/JNL Money Market Series
Period ended 6/30/98 ............................... 0.74 % 4.93 %
Year ended 12/31/97 ................................ 0.76 % 4.91 %
Period from 4/1/96 to 12/31/96 ..................... 0.85 % 4.65 %
Period from 5/15/95* to 3/31/96 .................... 1.30 % 4.51 %
Salomon Brothers/JNL Balanced Series
Period from 3/2/98* to 6/30/98 .................... 3.69 % 1.55 %
Salomon Brothers/JNL Global Bond Series
Six months ended 6/30/98 ........................... 0.98 % 7.00 %
Year ended 12/31/97 ................................ 1.07 % 6.76 %
Period from 4/1/96 to 12/31/96 ..................... 1.44 % 7.07 %
Period from 5/15/95* to 3/31/96 .................... 2.14 % 7.87 %
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (continued)
<TABLE>
<CAPTION>
Income from Operations
---------------------------------
Net realized &
unrealized gains
Net Asset Net on investments
value, investment & foreign
beginning income currency
Period or Year ended of period (loss) related items
- -------------------- ---------- ----------- ----------------
<S> <C> <C> <C>
Salomon Brothers/JNL High Yield Bond Series
Period from 3/2/98* to 6/30/98 .................... $ 10.00 $ 0.22 $ (0.08)
Salomon Brothers/JNL U.S. Government &
Quality Bond Series
Six months ended 6/30/98 ........................... 10.69 0.29 0.11
Year ended 12/31/97 ................................ 10.20 0.44 0.49
Period from 4/1/96 to 12/31/96 ..................... 10.09 0.24 0.24
Period from 5/15/95* to 3/31/96 .................... 10.00 0.45 0.02
T. Rowe Price/JNL Established Growth Series
Six months ended 6/30/98 ........................... 15.62 0.04 2.65
Year ended 12/31/97 ................................ 12.56 0.06 3.64
Period from 4/1/96 to 12/31/96 ..................... 11.36 0.03 1.81
Period from 5/15/95* to 3/31/96 .................... 10.00 0.07 2.68
T. Rowe Price/JNL International Equity
Investment Series
Six months ended 6/30/98 ........................... 12.09 0.09 1.54
Year ended 12/31/97 ................................ 12.08 0.09 0.23
Period from 4/1/96 to 12/31/96 ..................... 11.25 0.06 0.90
Period from 5/15/95* to 3/31/96 .................... 10.00 0.04 1.21
T. Rowe Price/JNL Mid-Growth Series
Six months ended 6/30/98 ........................... 17.37 (0.03) 2.92
Year ended 12/31/97 ................................ 14.89 (0.03) 2.74
Period from 4/1/96 to 12/31/96 ..................... 13.43 (0.05) 1.92
Period from 5/15/95* to 3/31/96 .................... 10.00 0.06 3.90
JNL/S&P Conservative Growth Series I
Period from 4/9/98* to 6/30/98 .................... 10.00 -- 0.05
JNL/S&P Moderate Growth Series I
Period from 4/8/98* to 6/30/98 .................... 10.00 -- 0.14
JNL/S&P Aggressive Growth Series I
Period from 4/8/98* to 6/30/98 .................... 10.00 -- 0.23
JNL/S&P Very Aggressive Growth Series I
Period from 4/1/98* to 6/30/98 .................... 10.00 -- 0.34
JNL/S&P Equity Growth Series I
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.03)
JNL/S&P Equity Aggressive Growth Series I
Period from 4/15/98* to 6/30/98 ................... 10.00 -- 0.07
</TABLE>
<TABLE>
<CAPTION>
Distributions
---------------------------------------------------
From net
From net realized gains
investment on investment Return of
Period or Year Ended income transactions Capital
- -------------------- ---------- -------------- ----------------
<S> <C> <C> <C>
Salomon Brothers/JNL High Yield Bond Series
Period from 3/2/98* to 6/30/98 .................... $ -- $ -- $ --
Salomon Brothers/JNL U.S. Government &
Quality Bond Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.42) (0.02) --
Period from 4/1/96 to 12/31/96 ..................... (0.34) (0.03) --
Period from 5/15/95* to 3/31/96 .................... (0.34) (0.04) --
T. Rowe Price/JNL Established Growth Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.03) (0.61) --
Period from 4/1/96 to 12/31/96 ..................... (0.04) (0.09) (0.51)
Period from 5/15/95* to 3/31/96 .................... (0.06) (1.33) --
T. Rowe Price/JNL International Equity
Investment Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ (0.08) (0.23) --
Period from 4/1/96 to 12/31/96 ..................... (0.12) (0.01) --
Period from 5/15/95* to 3/31/96 .................... -- -- --
T. Rowe Price/JNL Mid-Growth Series
Six months ended 6/30/98 ........................... -- -- --
Year ended 12/31/97 ................................ -- (0.23) --
Period from 4/1/96 to 12/31/96 ..................... (0.05) (0.36) --
Period from 5/15/95* to 3/31/96 .................... -- (0.53) --
JNL/S&P Conservative Growth Series I
Period from 4/9/98* to 6/30/98 .................... -- -- --
JNL/S&P Moderate Growth Series I
Period from 4/8/98* to 6/30/98 .................... -- -- --
JNL/S&P Aggressive Growth Series I
Period from 4/8/98* to 6/30/98 .................... -- -- --
JNL/S&P Very Aggressive Growth Series I
Period from 4/1/98* to 6/30/98 .................... -- -- --
JNL/S&P Equity Growth Series I
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Equity Aggressive Growth Series I
Period from 4/15/98* to 6/30/98 ................... -- -- --
</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 for the periods ended June 30, 1998, December 31, 1996 and March
31, 1996.
(c) Computed after giving effect to the Adviser's expense reimbursement and
fees paid indirectly.
See notes to the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (continued)
<TABLE>
<CAPTION>
Ratios and Supplemental Data
-----------------------------------------------------
Ratio of net Ratio of net
operating investment
Net asset Total Net assets, expenses to income to
value, end Return end of period average net average net Portfolio
Period or Year ended of period (a) (in thousands) assets (b)(c) assets (b)(c) turnover
- -------------------- ---------- ------ -------------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
Salomon Brothers/JNL High Yield Bond Series
Period from 3/2/98* to 6/30/98 .................... $ 10.14 1.40 % $ 5,752 0.95 % 7.01 % 21.25 %
Salomon Brothers/JNL U.S. Government &
Quality Bond Series
Six months ended 6/30/98 ........................... 11.09 3.74 % 35,617 0.85 % 5.51 % 324.09 %
Year ended 12/31/97 ................................ 10.69 9.16 % 25,389 0.85 % 5.99 % 378.59 %
Period from 4/1/96 to 12/31/96 ..................... 10.20 4.82 % 9,832 0.84 % 5.72 % 218.50 %
Period from 5/15/95* to 3/31/96 .................... 10.09 4.65 % 3,007 0.84 % 5.41 % 253.37 %
T. Rowe Price/JNL Established Growth Series
Six months ended 6/30/98 ........................... 18.31 17.22 % 183,194 0.92 % 0.48 % 24.38 %
Year ended 12/31/97 ................................ 15.62 29.47 % 124,022 0.98 % 0.43 % 47.06 %
Period from 4/1/96 to 12/31/96 ..................... 12.56 16.12 % 32,291 1.00 % 0.59 % 36.41 %
Period from 5/15/95* to 3/31/96 .................... 11.36 28.23 % 8,772 1.00 % 0.75 % 101.13 %
T. Rowe Price/JNL International Equity
Investment Series
Six months ended 6/30/98 ........................... 13.72 13.48 % 88,621 1.22 % 1.32 % 10.23 %
Year ended 12/31/97 ................................ 12.09 2.65 % 78,685 1.24 % 0.74 % 18.81 %
Period from 4/1/96 to 12/31/96 ..................... 12.08 8.54 % 48,204 1.25 % 1.09 % 5.93 %
Period from 5/15/95* to 3/31/96 .................... 11.25 12.50 % 24,211 1.25 % 0.78 % 16.45 %
T. Rowe Price/JNL Mid-Growth Series
Six months ended 6/30/98 ........................... 20.26 16.64 % 172,816 1.02 % (0.32)% 22.85 %
Year ended 12/31/97 ................................ 17.37 18.21 % 127,052 1.06 % (0.26)% 41.43 %
Period from 4/1/96 to 12/31/96 ..................... 14.89 13.91 % 47,104 1.10 % (0.18)% 25.05 %
Period from 5/15/95* to 3/31/96 .................... 13.43 40.06 % 10,545 1.10 % 0.82 % 66.04 %
JNL/S&P Conservative Growth Series I
Period from 4/9/98* to 6/30/98 .................... 10.05 0.50 % 1,764 0.20 % 0.05 % 0.17 %
JNL/S&P Moderate Growth Series I
Period from 4/8/98* to 6/30/98 .................... 10.14 1.40 % 1,722 0.20 % (0.20)% 4.05 %
JNL/S&P Aggressive Growth Series I
Period from 4/8/98* to 6/30/98 .................... 10.23 2.30 % 1,029 0.20 % (0.20)% 0.08 %
JNL/S&P Very Aggressive Growth Series I
Period from 4/1/98* to 6/30/98 .................... 10.34 3.40 % 729 0.20 % (0.20)% 32.92 %
JNL/S&P Equity Growth Series I
Period from 4/13/98* to 6/30/98 ................... 9.97 (0.30)% 1,196 0.20 % (0.20)% 8.59 %
JNL/S&P Equity Aggressive Growth Series I
Period from 4/15/98* to 6/30/98 ................... 10.07 0.70 % 625 0.20 % (0.20)% 0.06 %
</TABLE>
<TABLE>
<CAPTION>
Ratio information assuming
no expense reimbursement
or fees paid indirectly
--------------------------
Ratio of net
Ratio of investment
expenses to income to
average net average net
Period or Year ended assets (b) assets (b)
- -------------------- ---------- ------------
<S> <C> <C>
Salomon Brothers/JNL High Yield Bond Series
Period from 3/2/98* to 6/30/98 .................... 1.64 % 6.32 %
Salomon Brothers/JNL U.S. Government &
Quality Bond Series
Six months ended 6/30/98 ........................... 0.88 % 5.48 %
Year ended 12/31/97 ................................ 0.96 % 5.88 %
Period from 4/1/96 to 12/31/96 ..................... 1.37 % 5.19 %
Period from 5/15/95* to 3/31/96 .................... 2.53 % 3.72 %
T. Rowe Price/JNL Established Growth Series
Six months ended 6/30/98 ........................... 0.92 % 0.48 %
Year ended 12/31/97 ................................ 0.98 % 0.43 %
Period from 4/1/96 to 12/31/96 ..................... 1.11 % 0.48 %
Period from 5/15/95* to 3/31/96 .................... 2.09 % (0.34)%
T. Rowe Price/JNL International Equity
Investment Series
Six months ended 6/30/98 ........................... 1.28 % 1.26 %
Year ended 12/31/97 ................................ 1.32 % 0.66 %
Period from 4/1/96 to 12/31/96 ..................... 1.29 % 1.05 %
Period from 5/15/95* to 3/31/96 .................... 2.14 % (0.11)%
T. Rowe Price/JNL Mid-Growth Series
Six months ended 6/30/98 ........................... 1.02 % (0.32)%
Year ended 12/31/97 ................................ 1.06 % (0.26)%
Period from 4/1/96 to 12/31/96 ..................... 1.14 % (0.22)%
Period from 5/15/95* to 3/31/96 .................... 2.10 % (0.18)%
JNL/S&P Conservative Growth Series I
Period from 4/9/98* to 6/30/98 .................... 0.20 % 0.05 %
JNL/S&P Moderate Growth Series I
Period from 4/8/98* to 6/30/98 .................... 0.20 % (0.20)%
JNL/S&P Aggressive Growth Series I
Period from 4/8/98* to 6/30/98 .................... 0.20 % (0.20)%
JNL/S&P Very Aggressive Growth Series I
Period from 4/1/98* to 6/30/98 .................... 0.20 % (0.20)%
JNL/S&P Equity Growth Series I
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Equity Aggressive Growth Series I
Period from 4/15/98* to 6/30/98 ................... 0.20 % (0.20)%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Income from Operations
---------------------------------
Net realized &
unrealized gains
Net Asset Net on investments
value, investment & foreign
beginning income currency
Period or Year ended of period (loss) related items
- -------------------- ---------- ----------- ----------------
<S> <C> <C> <C>
JNL/S&P Conservative Growth Series II
Period from 4/13/98* to 6/30/98 ................... $ 10.00 $ -- $ (0.10)
JNL/S&P Moderate Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.09)
JNL/S&P Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.15)
JNL/S&P Very Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- 0.15
JNL/S&P Equity Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.20)
JNL/S&P Equity Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.00 -- (0.08)
</TABLE>
<TABLE>
<CAPTION>
Distributions
---------------------------------------------------
From net
From net realized gains
investment on investment Return of
Period or Year Ended income transactions Capital
- -------------------- ---------- -------------- ----------------
<S> <C> <C> <C>
JNL/S&P Conservative Growth Series II
Period from 4/13/98* to 6/30/98 ................... $ -- $ -- $ --
JNL/S&P Moderate Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Very Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Equity Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
JNL/S&P Equity Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... -- -- --
</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 for the periods ended June 30, 1998, December 31, 1996 and March
31, 1996.
(c) Computed after giving effect to the Adviser's expense reimbursement and
fees paid indirectly.
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
Ratios and Supplemental Data
----------------------------------------------------
Ratio of net Ratio of net
operating investment
Net asset Total Net assets, expenses to income to
value, end Return end of period average net average net Portfolio
Period or Year ended of period (a) (in thousands) assets (b)(c) assets (b)(c) turnover
- -------------------- --------- ------ -------------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
JNL/S&P Conservative Growth Series II
Period from 4/13/98* to 6/30/98 ................... $ 9.90 (1.00)% $ 2,316.00 0.20%. (0.20)% 2.07 %
JNL/S&P Moderate Growth Series II
Period from 4/13/98* to 6/30/98 ................... 9.91 (0.90)% 1,671.00 0.20 % (0.20)% 1.72 %
JNL/S&P Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 9.85 (1.50)% 294.00 0.20 % (0.20)% 1.42 %
JNL/S&P Very Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 10.15 1.50 % 249.00 0.20 % (0.20)% 2.03 %
JNL/S&P Equity Growth Series II
Period from 4/13/98* to 6/30/98 ................... 9.80 (2.00)% 454.00 0.20 % (0.20)% 1.71 %
JNL/S&P Equity Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 9.92 (0.80)% 237.00 0.20 % (0.20)% 2.04 %
</TABLE>
<TABLE>
<CAPTION>
Ratio information assuming
no expense reimbursement
or fees paid indirectly
--------------------------
Ratio of net
Ratio of investment
expenses to income to
average net average net
Period or Year ended assets (b) assets (b)
- -------------------- ----------- -------------
<S> <C> <C>
JNL/S&P Conservative Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Moderate Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Very Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Equity Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
JNL/S&P Equity Aggressive Growth Series II
Period from 4/13/98* to 6/30/98 ................... 0.20 % (0.20)%
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
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
thirty-six (36) 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/Alliance Growth for which Alliance Capital
Management L.P. 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/JPM International & Emerging Markets for which J.P. Morgan Investment
Management Inc. serves as the sub-adviser; JNL/PIMCO Total Return Bond for which
Pacific Investment Management Company serves as the sub-adviser; JNL/Putnam
Growth and JNL/Putnam Value Equity for which Putnam Investment Management, Inc.
serves as the sub-adviser; Goldman Sachs/JNL Growth & Income for which Goldman
Sachs Asset Management serves as the sub-adviser; Lazard/JNL Small Cap Value and
Lazard/JNL Mid Cap Value for which Lazard Asset Management serves as
sub-adviser; 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 Balanced, Salomon Brothers/JNL Global Bond, Salomon
Brothers/JNL High Yield 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; T. Rowe
Price/JNL International Equity Investment for which Rowe Price-Fleming
International, Inc. serves as the sub-adviser; and JNL/S&P Conservative Growth
I, JNL/S&P Moderate Growth I, JNL/S&P Aggressive Growth I, JNL/S&P Very
Aggressive Growth I, JNL/S&P Equity Growth I, JNL/S&P Equity Aggressive Growth
I, JNL/S&P Conservative Growth II, JNL/S&P Moderate Growth II, JNL/S&P
Aggressive Growth II, JNL/S&P Very Aggressive Growth II, JNL/S&P Equity Growth
II and JNL/S&P Equity Aggressive Growth II for which Standard & Poor's
Investment Advisory Services, 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. 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.
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. 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. 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>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
Security Transactions And Investment Income -- Security transactions are
recorded on the trade date. 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.
Foreign Currency Translations -- The accounting records of the Trust are
maintained in U.S. dollars. Investment securities and other assets and
liabilities de-nominated in a foreign currency are translated into U.S. dollars
using exchange rates in effect at the close of the New York Stock Exchange.
Purchases and sales of investment securities, income receipts, and expense
pay-ments 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 -- A 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 for-ward
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. These
forward foreign currency contracts involve market risk in excess of the
unrealized appreciation (depreciation) of forward foreign currency contracts
reflected in the Statement of Assets and Liabilities. 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, 1998.
When-Issued and Delayed Delivery Transactions -- A 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 -- A Series may 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 -- A Series may write covered call options on
portfolio securities. Written options involve, to varying degrees, risk of loss
in excess of the option value reflected in the Statement of Assets and
Liabilities. The risk in writing a covered call option is that the Series may
forego the opportunity of profit if the market price of the underlying security
increases and the option is exercised. 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>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
Futures Contracts -- A Series may utilize futures contracts to a limited
extent. The risks associated with the use of futures contracts includes the
possibility that the value may not correlate with the change in the value of the
hedged instruments. In addition, there is the risk that the Series may not be
able to enter into a closing transaction because 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 -- A Series 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 Broth-ers/JNL Global Bond Series
and the Salomon Broth-ers/JNL U.S. Government & Quality Bond Series entered into
dollar roll transactions with respect to mortgage sec-urities 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. Dollar roll transactions involve the risk
that the market value of the securities sold by the Series may decline below the
repurchase price of those similar securities which the Series is obligated to
purchase or that the return earned by the Series with the proceeds of a dollar
roll may not exceed transaction costs.
Repurchase Agreements -- A Series may invest in repurchase agreements. A
repurchase agreement involves the purchase of a security by a Series and a
simultaneous agreement (generally by a bank or broker-dealer) to repurchase that
security back from the Series at a specified price and date or upon demand.
Securities pledged as collateral for repurchase agreements are held by the
Series custodian bank until the maturity of the repurchase agreement. Procedures
for all repurchase agreements have been designed to assure that the daily market
value of the collateral is in excess of the repurchase agreement in the event of
default.
Reverse Repurchase Agreements -- A Series may engage in reverse repurchase
agreements to borrow short term funds. The value of the reverse repurchase
agreements that the Series have committed to sell are reflected in the Statement
of Assets and Liabilities. The Series will maintain securities in segregated
accounts with its custodian that at all times are in an amount equal to their
obligations under the reverse repurchase agreements. Reverse repurchase
agreements involve the risks that the market value of the securities sold by the
Series may decline below the repurchase price and, if the proceeds from the
reverse repurchase agreement are invested in securities, that the market value
of the securities bought may decline below the repurchase price of the
securities sold.
Distributions To Shareholders -- The PPM Amer-ica/JNL Money Market Series
declares dividends daily and pays dividends monthly. For all other Series,
div-idends 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.
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
char-acterization of certain income and capital gain dist-ributions determined
annually in accordance with federal tax regulations which may differ from
generally accepted accounting principles.
<PAGE>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) (continued)
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENT MANAGEMENT FEES AND TRANSACTIONS WITH AFFILIATES
The Trust has an investment advisory agreement with JNFSI whereby JNFSI
provides investment management and transfer agency services. Each Series pays
JNFSI a fee, computed daily and payable monthly, based on a specified percentage
of the average daily net assets of each Series. The following is a schedule of
the fees each Series is currently obligated to pay JNFSI.
<TABLE>
<CAPTION>
$0 to $50 to $100 to $150 to $200 to $250 to $300 to $350 to Over
(M - Millions) $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 Aggressive Growth Series................ .95% .95% .95% .90% .90% .90% .85% .85% .85%
JNL Capital Growth Series................... .95% .95% .95% .90% .90% .90% .85% .85% .85%
JNL Global Equities Series.................. 1.00% 1.00% 1.00% .95% .95% .95% .90% .90% .90%
JNL/Alger Growth Series..................... .975% .975% .975% .975% .975% .975% .95% .95% .90%
JNL/Alliance Growth Series.................. .775% .775% .775% .775% .775% .70% .70% .70% .70%
JNL/Eagle Core Equity Series................ .90% .85% .85% .85% .85% .85% .75% .75% .75%
JNL/Eagle SmallCap Equity Series............ .95% .95% .95% .90% .90% .90% .90% .90% .85%
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%
JNL/Putnam Growth Series.................... .90% .90% .90% .85% .85% .85% .80% .80% .80%
JNL/Putnam Value Equity Series.............. .90% .90% .90% .85% .85% .85% .80% .80% .80%
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%
PPM America/JNL Balanced Series............. .75% .70% .70% .675% .675% .675% .65% .65% .625%
PPM America/JNL High Yield Bond Series...... .75% .70% .70% .675% .675% .675% .65% .65% .625%
PPM America/JNL Money Market Series......... .60% .60% .60% .575% .575% .575% .55% .55% .525%
Salomon Brothers/JNL Balanced Series........ .80% .75% .70% .70% .70% .70% .70% .70% .70%
Salomon Brothers/JNL Global Bond Series..... .85% .85% .85% .80% .80% .80% .80% .80% .75%
Salomon Brothers/JNL High Yield Bond Series. .80% .75% .70% .70% .70% .70% .70% .70% .70%
Salomon Brothers/JNL U.S. Government &
Quality Bond Series...................... .70% .70% .70% .65% .65% .65% .60% .60% .55%
T. Rowe Price/JNL Established Growth Series. .85% .85% .85% .80% .80% .80% .80% .80% .80%
T. Rowe Price/JNL International Equity
Investment Series........................ 1.10% 1.05% 1.05% 1.00% 1.00% 1.00% .95% .95% .90%
T. Rowe Price/JNL Mid-Cap Growth Series..... .95% .95% .95% .90% .90% .90% .90% .90% .90%
JNL/S&P Conservative Growth Series I........ .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Moderate Growth Series I............ .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Aggressive Growth Series I.......... .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Very Aggressive Growth Series I..... .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Equity Growth Series I.............. .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Equity Aggressive Growth Series I... .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Conservative Growth Series II....... .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Moderate Growth Series II........... .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Aggressive Growth Series II........ .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Very Aggressive Growth Series II.... .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Equity Growth Series II............. .20% .20% .20% .20% .20% .20% .20% .20% .15%
JNL/S&P Equity Aggressive Growth Series II.. .20% .20% .20% .20% .20% .20% .20% .20% .15%
</TABLE>
As compensation for their services, the sub-advisers receive fees from
JNFSI calculated on the basis of the average daily net assets of each Series.
The following is a schedule of the fees JNFSI currently is obligated to pay the
sub-advisers out of the advisory fee it receives from each Series as specified
above.
<PAGE>
<TABLE>
<CAPTION>
$0 to $50 to $100 to $150 to $200 to $250 to $300 to $350 to Over
(M - Millions) $50 M $100 M $150M $200 M $250 M $300M $350 M $500M $500 M
- -------------- ----- ------ ----- ------ ------ ----- ------ ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
JNL Aggressive Growth Series................ .55% .55% .50% .50% .50% .50% .50% .50% .45%
JNL Capital Growth Series................... .55% .55% .50% .50% .50% .50% .50% .50% .45%
JNL Global Equities Series.................. .55% .55% .50% .50% .50% .50% .50% .50% .45%
JNL/Alger Growth Series..................... .55% .55% .55% .55% .55% .55% .50% .50% .45%
JNL/Alliance Growth Series.................. .35% .35% .35% .35% .35% .25% .25% .25% .25%
JNL/Eagle Core Equity Series................ .45% .40% .40% .40% .40% .40% .30% .30% .30%
JNL/Eagle SmallCap Equity Series............ .50% .50% .50% .45% .45% .45% .45% .45% .40%
JNL/JPM International & Emerging Markets
Series.................................. .55% .50% .50% .50% .45% .45% .45% .40% .40%
JNL/PIMCO Total Return Bond Series.......... .25% .25% .25% .25% .25% .25% .25% .25% .25%
JNL/Putnam Growth Series.................... .50% .50% .50% .45% .45% .45% .35% .35% .35%
JNL/Putnam Value Equity Series.............. .50% .50% .50% .45% .45% .45% .35% .35% .35%
Goldman Sachs/JNL Growth & Income Series.... .50% .45% .45% .45% .40% .40% .40% .35% .35%
Lazard/JNL Small Cap Value Series........... .625% .575% .575% .525% .525% .525% .475% .475% .475%
Lazard/JNL Mid Cap Value Series............. .55% .525% .525% .475% .475% .475% .45% .45% .45%
PPM America/JNL Balanced Series............. .25% .20% .20% .175% .175% .175% .15% .15% .125%
PPM America/JNL High Yield Bond Series...... .25% .20% .20% .175% .175% .175% .15% .15% .125%
PPM America/JNL Money Market Series......... .20% .15% .15% .125% .125% .125% .10% .10% .075%
Salomon Brothers/JNL Balanced Series........ .35% .30% .25% .25% .25% .25% .25% .25% .25%
Salomon Brothers/JNL Global Bond Series..... .375% .35% .35% .30% .30% .30% .30% .30% .25%
Salomon Brothers/JNL High Yield Bond Series. .35% .30% .25% .25% .25% .25% .25% .25% .25%
Salomon Brothers/JNL U.S. Government &
Quality Bond Series..................... .225% .225% .225% .175% .175% .175% .15% .15% .10%
JNL/S&P Conservative Growth Series I........ .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Moderate Growth Series I............ .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Aggressive Growth Series I.......... .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Very Aggressive Growth Series I..... .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Equity Growth Series I.............. .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Equity Aggressive Growth Series I... .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Conservative Growth Series II....... .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Moderate Growth Series II........... .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Aggressive Growth Series II........ .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Very Aggressive Growth Series II.... .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Equity Growth Series II............. .10% .10% .10% .10% .10% .10% .10% .10% .075%
JNL/S&P Equity Aggressive Growth Series II.. .10% .10% .10% .10% .10% .10% .10% .10% .075%
</TABLE>
<TABLE>
<CAPTION>
$0 to $20 to $50 to
$20 M $50 M $200 M $200 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>
- --------------------------------------------------------------------------------
* When average net assets exceed this amount, the sub-advisory fee
asterisked is applicable to all assets in this Series.
JNFSI has voluntarily agreed to reimburse 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 at any
time.
Trustees and officers of the Trust who are affiliated persons receive no
compensation from the Trust. Trustees who are not interested persons of the
Trust, as defined in the 1940 Act, collectively received compensation of $24,000
for the six months ended June 30, 1998.
NOTE 4. SECURITY TRANSACTIONS
During the period ended June 30, 1998, the cost of purchases and proceeds
from sales and maturities of securities, other than short-term investments, were
as follows (in thousands):
<PAGE>
<TABLE>
<CAPTION>
Cost of Proceeds from Sales
Purchases and Maturities
--------- --------------
<S> <C> <C>
JNL Aggressive Growth Series.................................................... $ 73,470 $ 62,001
JNL Capital Growth Series....................................................... 54,987 48,165
JNL Global Equities Series...................................................... 88,089 57,544
JNL/Alger Growth Series......................................................... 60,760 42,906
JNL/Alliance Growth Series...................................................... 2,899 624
JNL/Eagle Core Equity Series.................................................... 14,679 5,217
JNL/Eagle SmallCap Equity Series................................................ 14,816 5,528
JNL/JPM International & Emerging Markets Series................................. 11,212 6,377
JNL/PIMCO Total Return Bond Series.............................................. 4,461 2,695
JNL/Putnam Growth Series........................................................ 58,652 27,802
JNL/Putnam Value Equity Series.................................................. 108,481 58,065
Goldman Sachs/JNL Growth & Income Series........................................ 3,322 310
Lazard/JNL Small Cap Value Series............................................... 5,416 447
Lazard/JNL Mid Cap Value Series................................................. 5,226 730
PPM America/JNL Balanced Series................................................. 36,004 15,640
PPM America/JNL High Yield Bond Series.......................................... 138,108 103,562
Salomon Brothers/JNL Balanced Series............................................ 2,074 108
Salomon Brothers/JNL Global Bond Series......................................... 27,466 16,750
Salomon Brothers/JNL High Yield Bond Series..................................... 6,115 1,012
Salomon Brothers/JNL U.S. Government & Quality Bond Series...................... 80,090 68,239
T. Rowe Price/JNL Established Growth Series..................................... 69,488 35,826
T. Rowe Price/JNL International Equity Investment Series........................ 8,597 9,449
T. Rowe Price/JNL Mid-Cap Growth Series......................................... 54,816 32,415
JNL/S&P Conservative Growth Series I............................................ 1,739 1
JNL/S&P Moderate Growth Series I................................................ 1,717 26
JNL/S&P Aggressive Growth Series I.............................................. 1,001 -
JNL/S&P Very Aggressive Growth Series I......................................... 773 67
JNL/S&P Equity Growth Series I.................................................. 1,236 44
JNL/S&P Equity Aggressive Growth Series I....................................... 607 -
JNL/S&P Conservative Growth Series II........................................... 2,379 44
JNL/S&P Moderate Growth Series II............................................... 1,702 24
JNL/S&P Aggressive Growth Series II............................................ 298 3
JNL/S&P Very Aggressive Growth Series II........................................ 249 4
JNL/S&P Equity Growth Series II................................................. 460 4
JNL/S&P Equity Aggressive Growth Series II...................................... 242 4
</TABLE>
Included in these transactions were purchases and sales of U.S. Government
obligations of $4,355,200 and $2,695,668 in the JNL/PIMCO Total Return Bond
Series; $13,271,052 and $2,812,262 in the PPM America/JNL Balanced Series;
$1,490,789 and $81,369 in the Salomon Brothers/JNL Balanced Series; $48,466,455
and $45,599,363 in the Salomon Brothers/JNL Global Bond Series; $80,902,363 and
$68,238,555 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 June 30, 1998 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.................................. $ 91,238 $ 25,609 $ (826) $ 24,783
JNL Capital Growth Series..................................... 76,742 20,697 (1,088) 19,609
JNL Global Equities Series.................................... 175,106 56,054 (1,777) 54,277
JNL/Alger Growth Series....................................... 93,442 32,130 (243) 31,887
JNL/Alliance Growth Series.................................... 2,315 304 (68) 236
JNL/Eagle Core Equity Series.................................. 21,566 3,340 (626) 2,714
JNL/Eagle SmallCap Equity Series.............................. 23,757 3,457 (1,418) 2,039
JNL/JPM International & Emerging Markets Series............... 5,078 278 (358) (80)
JNL/PIMCO Total Return Bond Series............................ 3,650 74 - 74
JNL/Putnam Growth Series...................................... 106,842 31,933 (1,742) 30,191
JNL/Putnam Value Equity Series................................ 154,975 14,060 (4,709) 9,351
Goldman Sachs/JNL Growth & Income Series............................ 3,410 79 (228) (149)
Lazard/JNL Small Cap Value Series................................... 5,189 232 (479) (247)
Lazard /JNL Mid Cap Value Series.............................. 4,948 162 (311) (149)
PPM America/JNL Balanced Series............................... 77,987 6,845 (1,276) 5,569
PPM America/JNL High Yield Bond Series........................ 95,424 911 (863) 48
Salomon Brothers/JNL Balanced Series.......................... 2,150 38 (41) (3)
Salomon Brothers/JNL Global Bond Series....................... 54,576 1,007 (860) 147
Salomon Brothers/JNL High Yield Bond Series................... 5,689 9 (56) (47)
Salomon Brothers/JNL U.S. Government & Quality
Bond Series.............................................. 46,984 858 (9) 849
T. Rowe Price/JNL Established Growth Series................... 151,314 36,849 (3,094) 33,755
T. Rowe Price/JNL International Equity Investment Series...... 72,087 21,108 (5,677) 15,431
T. Rowe Price/JNL Mid-Cap Growth Series....................... 137,372 40,979 (5,662) 35,317
JNL/S&P Conservative Growth Series I................................ 1,738 27 (1) 26
JNL/S&P Moderate Growth Series I.................................... 1,691 34 (3) 31
JNL/S&P Aggressive Growth Series I.................................. 1,001 29 (1) 28
JNL/S&P Very Aggressive Growth Series I............................. 704 25 - 25
JNL/S&P Equity Growth Series I...................................... 1,190 14 (8) 6
JNL/S&P Equity Aggressive Growth Series I........................... 607 19 (1) 18
JNL/S&P Conservative Growth Series II............................... 2,335 21 (39) (18)
JNL/S&P Moderate Growth Series II................................... 1,677 21 (26) (5)
JNL/S&P Aggressive Growth Series II................................ 295 5 (6) (1)
JNL/S&P Very Aggressive Growth Series II............................ 244 9 (4) 5
JNL/S&P Equity Growth Series II..................................... 455 6 (7) (1)
JNL/S&P Equity Aggressive Growth Series II.......................... 238 6 (7) (1)
</TABLE>
NOTE 5. TRUST TRANSACTIONS
Transactions of trust shares for the period ended June 30, 1998 were as
follows:
<TABLE>
<CAPTION>
Shares Distributions Shares
Purchased Reinvested Redeemed Net Increase
--------- ---------- -------- ------------
<S> <C> <C> <C> <C>
JNL Aggressive Growth Series.............................. 1,653,504 - (872,116) 781,388
JNL Capital Growth Series................................. 1,074,509 - (663,030) 411,479
JNL Global Equities Series................................ 2,020,076 - (765,624) 1,254,452
JNL/Alger Growth Series................................... 1,951,790 - (788,947) 1,162,843
JNL/Alliance Growth Series................................ 226,596 - (348) 226,248
JNL/Eagle Core Equity Series.............................. 856,581 - (169,505) 687,076
JNL/Eagle SmallCap Equity Series.......................... 1,013,420 - (331,831) 681,589
JNL/JPM International & Emerging Markets Series........... 501,538 - (208) 501,330
JNL/PIMCO Total Return Bond Series........................ 361,877 - (518) 361,359
JNL/Putnam Growth Series.................................. 2,277,834 - (600,995) 1,676,839
JNL/Putnam Value Equity Series ........................... 3,315,626 - (601,842) 2,713,784
Goldman Sachs/JNL Growth & Income Series.................. 336,430 - (3,230) 333,200
Lazard/JNL Small Cap Value Series......................... 511,717 - (197) 511,520
Lazard /JNL Mid Cap Value Series.......................... 472,324 - (1,921) 470,403
PPM America/JNL Balanced Series .......................... 1,747,570 - (370,757) 1,376,813
PPM America/JNL High Yield Bond Series.................... 3,472,935 - (877,027) 2,595,908
PPM America/JNL Money Market Series....................... 61,247,339 1,192,196 (50,407,929) 12,031,606
Salomon Brothers/JNL Balanced Series...................... 206,391 - (2,171) 204,220
Salomon Brothers/JNL Global Bond Series................... 1,245,074 - (434,465) 810,609
Salomon Brothers/JNL High Yield Bond Series............... 568,123 - (895) 567,228
Salomon Brothers/JNL U.S. Government & Quality
Series............................................... 1,317,565 - (481,508) 836,057
T. Rowe Price/JNL Established Growth Series............... 2,935,126 - (868,489) 2,066,637
T. Rowe Price/JNL International Equity Investment
Bond Series......................................... 820,059 - (869,341) (49,282)
T. Rowe Price/JNL Mid-Cap Growth Series................... 2,110,746 - (898,525) 1,212,221
JNL/S&P Conservative Growth Series I...................... 175,583 - (112) 175,471
JNL/S&P Moderate Growth Series I.......................... 172,561 - (2,672) 169,889
JNL/S&P Aggressive Growth Series I........................ 100,601 - (33) 100,568
JNL/S&P Very Aggressive Growth Series I................... 77,312 - (6,836) 70,476
JNL/S&P Equity Growth Series I............................ 124,387 - (4,501) 119,886
JNL/S&P Equity Aggressive Growth Series I................. 62,077 - (15) 62,062
JNL/S&P Conservative Growth Series II..................... 238,374 - (4,460) 233,914
JNL/S&P Moderate Growth Series II......................... 171,026 - (2,429) 168,597
JNL/S&P Aggressive Growth Series II...................... 30,135 - (331) 29,804
JNL/S&P Very Aggressive Growth Series II.................. 24,945 - (448) 24,497
JNL/S&P Equity Growth Series II........................... 46,791 - (458) 46,333
JNL/S&P Equity Aggressive Growth Series II................ 24,344 - (446) 23,898
</TABLE>
Transactions of trust shares for the year ending December 31, 1997 were as
follows:
<TABLE>
<CAPTION>
Shares Distributions Shares
Purchased Reinvested Redeemed Net Increase
--------- ---------- -------- ------------
<S> <C> <C> <C> <C>
JNL Aggressive Growth Series.............................. 3,894,346 191,755 (868,600) 3,217,501
JNL Capital Growth Series................................. 2,848,842 34,057 (968,352) 1,914,547
JNL Global Equities Series................................ 6,393,844 295,987 (1,246,634) 5,443,197
JNL/Alger Growth Series................................... 3,544,503 229,852 (869,988) 2,904,367
JNL/Eagle Core Equity Series.............................. 688,411 16,636 (24,082) 680,965
JNL/Eagle SmallCap Equity Series.......................... 886,938 - (139,332) 747,606
JNL/Putnam Growth Series.................................. 4,787,449 92,112 (1,561,300) 3,318,261
JNL/Putnam Value Equity Series............................ 5,270,627 304,872 (347,068) 5,228,431
PPM America/JNL Balanced Series........................... 2,579,083 337,971 (395,399) 2,521,655
PPM America/JNL High Yield Bond Series.................... 4,500,240 349,736 (642,559) 4,207,417
PPM America/JNL Money Market Series....................... 87,270,526 1,658,199 (70,873,065) 18,055,660
Salomon Brothers/JNL Global Bond Series................... 2,422,646 177,324 (471,899) 2,128,071
Salomon Brothers/JNL U.S. Government & Quality Bond
Series............................................... 1,740,847 92,434 (422,626) 1,410,655
T. Rowe Price/JNL Established Growth Series............... 5,871,440 308,764 (813,825) 5,366,379
T. Rowe Price/JNL International Equity Investment
Series.............................................. 3,010,793 112,676 (606,319) 2,517,150
T. Rowe Price/JNL Mid-Cap Growth Series................... 4,951,347 94,266 (893,009) 4,152,604
</TABLE>
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, 1998 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 ($33,104), ($118,766), $7,989, $11,079 and $22,529, in the JNL
Aggressive Growth Series, JNL Capital Growth Series, JNL Global Equities Series,
JNL/JPM International & Emerging Markets 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 6/30/98 Currency to be received at 6/30/98
---- ------------------------ ---------- ----------------------- ----------
<S> <C> <C> <C> <C>
7/10/98 430,000 Finnish Markka $ 78,497 78,324 US $ $ 78,324
7/17/98 2,115,000 Finnish Markka 386,248 382,459 US $ 382,459
7/17/98 392,142 US $ 392,142 2,115,000 Finnish Markka 386,248
7/23/98 160,000 Finnish Markka 29,230 29,463 US $ 29,463
7/23/98 29,074 US $ 29,074 160,000 Finnish Markka 29,230
7/31/98 15,300,000 Finnish Markka 2,796,359 2,789,007 US $ 2,789,007
7/31/98 1,228,578 US $ 1,228,578 6,730,000 Finnish Markka 1,230,033
8/7/98 1,000,000 Finnish Markka 182,837 180,157 US $ 180,157
11/4/98 195,000 Finnish Markka 35,817 36,792 US $ 36,792
11/4/98 35,611 US $ 35,611 195,000 Finnish Markka 35,817
7/10/98 90,000 British Sterling 150,192 147,870 US $ 147,870
Pound
7/10/98 148,653 US $ 148,653 90,000 British Sterling 150,192
Pound
8/7/98 170,000 British Sterling 283,265 278,704 US $ 278,704
Pound
8/7/98 278,523 US $ 278,523 170,000 British Sterling 283,264
Pound
</TABLE>
<PAGE>
JNL Aggressive Growth Series (continued)
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 6/30/98 Currency to be received at 6/30/98
---- ------------------------ ---------- ----------------------- ----------
<S> <C> <C> <C> <C>
8/13/98 65,000 British Sterling $ 108,271 105,040 US $ $ 105,040
Pound
8/13/98 108,030 US $ 108,030 65,000 British Sterling 108,271
Pound
8/14/98 500 British Sterling 833 817 US $ 817
Pound
8/14/98 825 US $ 825 500 British Sterling 833
Pound
10/7/98 140,000 British Sterling 232,474 232,120 US $ 232,120
Pound
10/7/98 229,162 US $ 229,162 140,000 British Sterling 232,474
Pound
8/7/98 2,085,000,000 Italian Lira 1,174,184 1,165,164 US $ 1,165,164
8/7/98 800,868 US $ 800,868 1,425,000,000 Italian Lira 802,500
11/12/98 1,115,000,000 Italian Lira 629,516 631,478 US $ 631,478
11/12/98 286,213 US $ 286,213 500,000,000 Italian Lira 282,294
7/2/98 850,000 Netherlands Guilder 418,204 414,230 US $ 414,230
7/2/98 421,798 US $ 421,798 850,000 Netherlands Guilder 418,204
7/10/98 550,000 Netherlands Guilder 270,736 272,008 US $ 272,008
7/10/98 270,812 US $ 270,812 550,000 Netherlands Guilder 270,736
7/17/98 800,000 Netherlands Guilder 393,967 392,927 US $ 392,927
7/17/98 392,290 US $ 392,290 800,000 Netherlands Guilder 393,967
7/31/98 250,000 Netherlands Guilder 123,221 123,481 US $ 123,481
7/31/98 123,887 US $ 123,887 250,000 Netherlands Guilder 123,221
7/17/98 1,310,000 Swedish Krona 164,355 164,078 US $ 164,078
7/17/98 164,190 US $ 164,190 1,310,000 Swedish Krona 164,355
----------- -----------
$12,368,862 $12,335,758
=========== ===========
</TABLE>
JNL Capital Growth Series
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 6/30/98 Currency to be received at 6/30/98
---- ------------------------ ---------- ----------------------- ----------
<S> <C> <C> <C> <C>
7/10/98 238,000 British Sterling $ 397,174 388,496 US $ $ 388,496
Pound
8/7/98 5,000 British Sterling 8,331 8,185 US $ 8,185
Pound
8/7/98 8,348 US $ 8,348 5,000 British Sterling 8,331
Pound
8/13/98 1,775,000 British Sterling 2,956,643 2,868,400 US $ 2,868,400
Pound
8/13/98 784,571 US $ 784,571 470,000 British Sterling 782,886
Pound
8/14/98 100,000 British Sterling 666,250 653,360 US $ 653,360
Pound
10/7/98 1,400,000 British Sterling 2,324,736 2,321,200 US $ 2,321,200
Pound
11/4/98 240,000 British Sterling 397,891 394,320 US $ 394,320
Pound
---------- ----------
$7,543,945 $7,425,178
========== ==========
</TABLE>
JNL Global Equities Series
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 6/30/98 Currency to be received at 6/30/98
---- ------------------------ ---------- ----------------------- ----------
<S> <C> <C> <C> <C>
7/10/98 122,000 Swiss Franc $ 80,646 84,196 US $ $ 84,196
7/2/98 3,470,000 Deutsche Mark 1,924,327 1,918,903 US $ 1,918,903
7/2/98 1,961,446 US $ 1,961,446 3,470,000 Deutsche Mark 1,924,327
7/17/98 600,000 Swiss Franc 396,900 415,512 US $ 415,512
7/23/98 150,000 Swiss Franc 99,285 105,589 US $ 105,589
10/7/98 900,000 Swiss Franc 600,148 607,287 US $ 607,287
11/4/98 600,000 Swiss Franc 401,238 415,801 US $ 415,801
12/2/98 1,928,000 Swiss Franc 1,292,996 1,305,349 US $ 1,305,349
7/10/98 680,000 Deutsche Mark 377,287 375,691 US $ 375,691
7/10/98 386,904 US $ 386,904 680,000 Deutsche Mark 377,287
7/23/98 400,000 Deutsche Mark 222,111 222,867 US $ 222,867
10/21/98 725,000 Deutsche Mark 404,651 403,748 US $ 403,748
10/21/98 414,025 US $ 414,025 725,000 Deutsche Mark 404,651
11/4/98 350,000 Deutsche Mark 195,500 200,688 US $ 200,688
11/12/98 750,000 Deutsche Mark 419,114 419,606 US $ 419,606
7/23/98 2,000,000 French Franc 331,279 330,196 US $ 330,196
7/23/98 339,403 US $ 339,403 2,000,000 French Franc 331,279
7/31/98 16,000,000 French Franc 2,651,531 2,649,148 US $ 2,649,148
7/31/98 1,051,262 US $ 1,051,262 6,200,000 French Franc 1,027,468
8/7/98 6,000,000 French Franc 994,724 988,720 US $ 988,720
8/7/98 712,795 US $ 712,795 4,200,000 French Franc 696,307
</TABLE>
<PAGE>
JNL Global Equities Series (continued)
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 6/30/98 Currency to be received at 6/30/98
---- ------------------------ ---------- ----------------------- ----------
<S> <C> <C> <C> <C>
10/21/98 1,500,000 French Franc $ 249,729 249,103 US $ $ 249,103
7/10/98 700,000 British Sterling 1,168,158 1,150,100 US $ 1,150,100
Pound
8/7/98 4,232,000 British Sterling 7,051,629 6,872,056 US $ 6,872,056
Pound
8/13/98 600,000 British Sterling 999,429 969,600 US $ 969,600
Pound
10/7/98 3,068,000 British Sterling 5,094,492 5,034,950 US $ 5,034,950
Pound
7/23/98 164,000,000 Japanese Yen 1,190,176 1,316,740 US $ 1,316,740
7/23/98 75,373 US $ 75,373 10,250,000 Japanese Yen 74,386
8/7/98 85,060,000 Japanese Yen 618,637 655,089 US $ 655,089
10/7/98 381,500,000 Japanese Yen 2,798,997 2,934,437 US $ 2,934,437
10/7/98 2,267,612 US $ 2,267,612 304,500,000 Japanese Yen 2,234,062
10/21/98 470,940,000 Japanese Yen 3,462,375 3,584,220 US $ 3,584,220
10/21/98 1,423,713 US $ 1,423,713 180,000,000 Japanese Yen 1,323,369
11/4/98 173,250,000 Japanese Yen 1,276,393 1,272,755 US $ 1,272,755
11/19/98 166,750,000 Japanese Yen 1,231,249 1,393,299 US $ 1,393,299
11/19/98 1,247,288 US $ 1,247,288 166,750,000 Japanese Yen 1,231,249
7/17/98 2,900,000 Netherlands Guilder 1,428,132 1,427,976 US $ 1,427,976
7/17/98 454,994 US $ 454,994 900,000 Netherlands Guilder 443,213
7/23/98 200,000 Netherlands Guilder 98,528 98,270 US $ 98,270
7/31/98 8,600,000 Netherlands Guilder 4,238,802 4,238,754 US $ 4,238,754
7/31/98 2,576,382 US $ 2,576,382 5,100,000 Netherlands Guilder 2,513,708
7/2/98 8,900,000 Swedish Krona 1,115,937 1,105,766 US $ 1,105,766
7/2/98 1,125,912 US $ 1,125,912 8,900,000 Swedish Krona 1,115,937
7/17/98 6,400,000 Swedish Krona 802,954 801,603 US $ 801,603
8/14/98 700,000 Swedish Krona 87,920 88,496 US $ 88,496
10/7/98 8,900,000 Swedish Krona 1,120,335 1,130,439 US $ 1,130,439
10/2/98 1,200,000 South African Rand 194,625 237,765 US $ 237,765
10/2/98 231,256 US $ 231,256 1,200,000 South African Rand 194,625
----------- -----------
$58,888,598 $58,596,587
=========== ===========
</TABLE>
JNL/JPM International & Emerging Markets Series
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 6/30/98 Currency to be received at 6/30/98
---- ------------------------ ---------- ----------------------- ----------
<S> <C> <C> <C> <C>
9/17/98 242,827 Austrian Schilling $ 19,225 19,094 US $ $ 19,094
9/17/98 239,155 Australian $ 148,598 140,384 US $ 140,384
9/17/98 1,042,594 Belgian Franc 28,157 27,974 US $ 27,974
9/17/98 204,953 US $ 204,953 300,728 Canadian $ 204,668
9/17/98 272,145 Swiss Franc 181,114 182,159 US $ 182,159
9/17/98 50,543 Deutsche Mark 28,156 1,042,594 Belgian Franc 28,157
9/17/98 177,390 Deutsche Mark 98,821 99,030 US $ 99,030
9/17/98 19,246 Deutsche Mark 10,721 15,855 Swiss Franc 10,552
9/17/98 118,646 US $ 118,646 214,275 Deutsche Mark 119,368
9/17/98 96,414 Deutsche Mark 53,710 86,840 Australian $ 53,958
9/17/98 976,787 Danish Krone 142,666 141,810 US $ 141,810
9/17/98 112,000 Deutsche Mark 62,392 426,922 Danish Krone 62,354
9/17/98 120,000 Swedish Krona 15,093 103,851 Danish Krone 15,168
9/17/98 17,148 Australian $ 10,655 70,732 Danish Krone 10,331
9/17/98 15,206 US $ 15,206 2,335,083 Spanish Paseta 15,270
9/17/98 8,089,698 Spanish Paseta 52,901 53,381 US $ 53,381
9/17/98 34,586 US $ 34,586 189,879 Finnish Markka 34,791
9/17/98 1,581,317 French Franc 262,773 261,159 US $ 261,159
9/17/98 238,100 French Franc 39,566 271,053 Danish Krone 39,625
9/17/98 58,458 British Sterling 97,183 138,862 Swiss Franc 94,112
Pound
9/17/98 507,294 US $ 507,294 311,989 British Sterling 518,662
Pound
9/17/98 14,284 British Sterling 23,746 7,310,613 Greek Drachma 23,707
Pound
9/17/98 500,000 Hong Kong $ 64,053 63,420 US $ 63,420
9/17/98 9,622 British Sterling 15,995 122,271 Hong Kong $ 15,663
Pound
9/17/98 25,264 US $ 25,264 18,228 Irish Pound 25,429
9/17/98 72,572 US $ 72,572 129,564,007 Italian Lira 73,017
9/17/98 35,000 British Sterling 58,185 102,725,000 Italian Lira 57,892
Pound
9/17/98 203,737 US $ 203,737 28,508,871 Japanese Yen 208,552
9/17/98 3,605,082 Japanese Yen 26,372 15,900 British Sterling 26,432
Pound
</TABLE>
<PAGE>
JNL/JPM International & Emerging Markets Series (continued)
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 6/30/98 Currency to be received at 6/30/98
---- ------------------------ ---------- ----------------------- ----------
<S> <C> <C> <C> <C>
9/17/98 6,778,195 Japanese Yen $ 49,585 49,000 US $ $ 49,000
9/17/98 3,373,995 Japanese Yen 24,682 15,000 British Sterling 24,937
Pound
9/17/98 146,682 Netherlands Guilder 72,503 72,044 US $ 72,044
9/17/98 33,884 British Sterling 56,330 110,268 Netherlands Guilder 54,503
Pound
9/17/98 39,602 Norwegian Krone 5,176 5,143 US $ 5,143
9/17/98 43,005 New Zealand $ 22,265 21,180 US $ 21,180
9/17/98 7,835,486 Portuguese Escudo 42,577 42,660 US $ 42,660
9/17/98 345,938 Swedish Krona 43,510 58,219 US $ 43,027
9/17/98 829,033 South African Rand 135,123 1,526,764 US $ 152,677
9/17/98 20,493 US $ 20,493 117,240 South African Rand 19,109
9/17/98 47,809 Deutsche Mark 26,633 145,000 South African Rand 23,633
---------- ----------
$3,121,218 $3,132,297
========== ==========
</TABLE>
Salomon Brothers/JNL Global Bond Series
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 6/30/98 Currency to be received at 6/30/98
---- ------------------------ ---------- ----------------------- ----------
<S> <C> <C> <C> <C>
8/12/98 782,175 Canadian $ $ 532,017 545,830 US $ $ 545,830
8/12/98 110,652 US $ 110,652 159,892 Canadian $ 108,755
8/12/98 46,228,000 Greek Drachma 150,890 260,000 Deutsche Mark 144,542
8/12/98 1,187,937 Deutsche Mark 660,409 670,000 US $ 670,000
8/12/98 2,064,830 US $ 206,483 366,301 Deutsche Mark 203,637
8/12/98 890,000 US $ 890,000 1,573,938 Deutsche Mark 874,998
8/12/98 280,000 Deutsche Mark 155,660 48,160,000 Greek Drachma 157,196
8/12/98 3,722,754 Danish Krone 542,877 552,337 US $ 552,337
8/12/98 26,450,277 Japanese Yen 192,505 202,219 US $ 202,219
8/12/98 104,425 Netherlands Guilder 51,506 52,501 US $ 52,502
8/12/98 205,412 New Zealand $ 106,589 110,101 US $ 110,101
---------- ----------
$3,599,588 $3,622,117
========== ==========
</TABLE>
<PAGE>
JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES
SCHEDULE OF INVESTMENTS (continued)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 95.52%
Finland -- 1.57%
Food & Beverage -- 1.57%
Raisio Group Plc (a) ....................... 100,830 $1,821,213
Italy -- 0.85%
Telecommunications -- 0.85%
Telecom Italia SpA ......................... 133,311 981,777
Norway -- 0.31%
Oil & Gas -- 0.31%
Ocean Rig ASA (a) .......................... 490,511 364,786
United States -- 92.79%
Advertising -- 2.11%
Lamar Advertising Co. (a) .................. 23,046 826,775
Outdoor Systems Inc. (a) ................... 35,724 1,000,272
Snyder Communications Inc. ................. 14,110 620,840
---------
2,447,887
Aerospace & Defense -- 0.33%
Orbital Sciences Corp. (a) ................. 10,185 380,664
Agriculture -- 0.79%
Delta & Pine Land Co. ...................... 20,725 922,263
Auto Parts & Equipment -- 1.61%
Federal-Mogul Corp. ........................ 27,630 1,865,025
Banks -- 4.22%
Bank of New York Co. Inc. .................. 16,400 995,275
BankAmerica Corp. .......................... 24,530 2,120,312
Star Banc Corp. ............................ 11,412 728,942
U.S. Bancorp ............................... 24,375 1,048,125
---------
4,892,654
Biotechnology -- 2.11%
Centocor Inc. (a) .......................... 14,595 529,069
Monsanto Co. ............................... 34,425 1,923,497
---------
2,452,566
Chemicals -- 0.77%
Solutia Inc. ............................... 31,030 890,173
Commercial Services -- 0.65%
Apollo Group Inc. (a) ...................... 6,170 203,996
CorporateFamily Solutions Inc. (a).......... 21,995 549,875
---------
753,871
Computers -- 5.12%
Cisco Systems Inc. (a) ..................... 45,807 4,217,107
Dell Computer Corp. (a) .................... 18,620 1,728,169
---------
5,945,276
Diversified Financial Services -- 2.34%
Associates First Capital Corp. ............. 21,065 1,619,372
Household International Inc. ............... 22,050 1,096,988
---------
2,716,360
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Electronics -- 2.17%
Analog Devices Inc. (a) .................... 11,323 $ 278,121
Pittway Corp. .............................. 30,390 2,245,061
-----------
2,523,182
Health Care -- 2.36%
Cognizant Corp. (a) ........................ 19,410 1,222,830
Sofamor/Danek Group Inc. (a) ............... 17,110 1,481,084
United States Surgical Corp. ............... 845 38,553
-----------
2,742,467
Holding Companies - Diversified -- 2.29%
TCI Ventures Group (a) ..................... 132,705 2,662,394
Insurance -- 2.13%
UNUM Corp. ................................. 44,423 2,465,477
Manufacturing -- 1.28%
Tyco International Ltd. .................... 23,540 1,483,020
Media -- 22.73%
CBS Corp. .................................. 49,995 1,587,341
Chancellor Media Corp. (a) ................. 23,490 1,166,425
Comcast Corp. .............................. 131,505 5,338,281
Cox Communications Inc. (a) ................ 30,710 1,487,516
Liberty Media Group (a) .................... 24,615 955,370
MediaOne Group Inc. ........................ 107,785 4,735,803
Tele-Communications Inc. (a) ............... 136,413 5,243,375
Time Warner Inc. ........................... 68,037 5,812,911
United International Holdings Inc. (a) .... 2,710 43,360
-----------
26,370,382
Pharmaceuticals -- 11.06%
ALZA Corp. (a) ............................. 32,520 1,406,490
Eli Lilly & Co. ............................ 33,020 2,181,384
Omnicare Inc. .............................. 30,517 1,163,461
Pfizer Inc. ................................ 19,335 2,101,473
Warner-Lambert Co. ......................... 86,120 5,974,575
-----------
12,827,383
Retail -- 2.08%
Amazon.com Inc. (a) ........................ 12,210 1,217,948
Costco Companies Inc. (a) .................. 18,885 1,190,935
-----------
2,408,883
Savings & Loans -- 0.22%
Ambanc Holding Co. Inc. .................... 4,295 76,236
First Defiance Financial Corp. ............. 6,835 95,690
Provident Financial Holdings Inc. (a) ...... 4,065 84,349
-----------
256,275
Semiconductors -- 0.72%
Maxim Integrated Products Inc. (a) ......... 26,350 834,966
See notes to the financial statements.
<PAGE>
JNL AGGRESSIVE GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Software -- 21.34%
America Online Inc. ........................ 37,633 $3,989,098
Aspect Development Inc. (a) ................ 2,655 200,784
Aspen Technology Inc. (a) .................. 45,835 2,314,668
At Home Corp. (a) .......................... 31,430 1,487,032
Cadence Design Systems Inc. (a) ............ 63,965 1,998,906
HBO & Co. .................................. 29,795 1,050,274
Intuit Inc. (a) ............................ 22,595 1,383,944
JDA Software Group Inc. (a) ................ 21,385 935,594
Microsoft Corp. ............................ 48,205 5,224,217
Parametric Technology Corp. (a) ............ 137,125 3,719,516
PeopleSoft Inc. (a) ........................ 23,270 1,093,690
Sapient Corp. (a) .......................... 13,825 729,269
Wind River Systems Inc. (a) ................ 17,345 622,252
-----------
24,749,244
Telecommunications -- 4.36%
General Instrument Corp. (a) ............... 26,285 714,623
Nokia Corp. - ADR .......................... 47,445 3,442,728
U S West Inc. .............................. 1 38
Western Wireless Corp. (a) ................. 45,415 905,462
-----------
5,062,851
-----------
Total United States ........................ 107,653,263
-----------
Total Common Stocks
(cost $86,031,699) ..................... 110,821,039
-----------
Principal Market
Amount Value
------ -----
Short Term Investments -- 4.48%
Diversified Financial Services -- 3.45%
Household Finance Corp., 6.00%,
07/01/1998 .............................. $ 4,000,000 $ 4,000,000
U.S. Government Agencies -- 1.03%
Federal Home Loan Mortgage Corp. ...........
Discount Note, 5.85%, 07/01/1998 ......... 1,200,000 1,200,000
-----------
Total Short Term Investments
(cost $5,200,000) ...................... 5,200,000
-----------
Total Investments -- 100%
(cost $91,231,699) ......................... $116,021,039
===========
See notes to the financial statements.
<PAGE>
JNL CAPITAL GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 95.95%
United Kingdom -- 9.04%
Commercial Services -- 1.65%
Capita Group Plc ........................... 184,471 $1,593,188
Retail -- 7.39%
J. D. Wetherspoon Plc ...................... 665,208 3,198,810
PizzaExpress Plc ........................... 272,420 3,920,890
-----------
7,119,700
-----------
Total United Kingdom ...................... 8,712,888
-----------
United States -- 86.91%
Advertising -- 3.37%
HA-LO Industries Inc. (a) .................. 15,125 470,766
Outdoor Systems Inc. (a) ................... 88,230 2,470,440
Snyder Communications Inc. (a) ............. 6,860 301,840
-----------
3,243,046
Airlines -- 1.09%
Ryanair Holdings Plc - ADR (a) ............. 29,476 1,050,082
Banks -- 5.99%
Firstar Corp. .............................. 12,230 478,604
M&T Bank Corp. ............................. 1,730 958,420
Northern Trust Corp. ....................... 18,750 1,429,688
Star Banc Corp. ............................ 37,185 2,375,192
U.S. Trust Corp. ........................... 6,970 531,463
-----------
5,773,367
Biotechnology -- 0.35%
Incyte Pharmaceuticals Inc. (a) ............ 9,920 338,520
Commercial Services -- 12.41%
Apollo Group Inc. (a) ...................... 155,053 5,126,423
Gartner Group Inc. (a) ..................... 8,425 294,875
ITT Educational Services Inc. (a)........... 73,290 2,363,603
Paychex Inc. ............................... 91,392 3,718,512
Robert Half International Inc. (a).......... 8,195 457,896
-----------
11,961,309
Diversified Financial Services -- 4.42%
Capital One Financial Corp. ................ 4,765 591,753
Capital Trust (a) .......................... 53,135 511,424
Charles Schwab Corp. ....................... 29,047 944,028
HealthCare Financial Partners Inc. (a) ..... 28,250 1,732,078
Newcourt Credit Group Inc. ................. 9,750 479,578
-----------
4,258,861
Electric -- 1.91%
AES Corp. (a) .............................. 35,040 1,841,788
Electronics -- 5.00%
SIPEX Corp. (a) ............................ 40,460 869,890
Vitesse Semiconductor Corp. (a) ............ 127,805 3,945,979
-----------
4,815,869
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Entertainment -- 3.46%
Premier Parks Inc. ......................... 24,235 $1,614,657
SFX Entertainment Inc. (a) ................. 37,500 1,720,313
-----------
3,334,970
Health Care -- 3.79%
Cyberonics Inc. (a) ........................ 7,625 81,016
Sofamor Danek Group Inc. (a) ............... 41,205 3,566,808
-----------
3,647,824
Holding Companies - Diversified -- 1.45%
American Capital Strategies Ltd. ........... 19,850 454,069
Medallion Financial Corp. .................. 34,185 940,088
-----------
1,394,157
Insurance -- 3.65%
Progressive Corp. .......................... 24,975 3,521,474
Leisure Time -- 1.69%
Family Golf Centers Inc. (a) ............... 17,070 432,084
Royal Caribbean Cruises Ltd. ............... 15,065 1,197,668
-----------
1,629,752
Media -- 17.64%
Capstar Broadcasting Corp. (a) ............. 65,875 1,655,109
Chancellor Media Corp. (a) ................. 74,560 3,702,370
Clear Channel Communications Inc. (a)....... 17,205 1,877,496
Comcast Corp. .............................. 25,500 1,035,141
Heftel Broadcasting Corp. (a) .............. 90,570 4,053,008
Jacor Communications Inc. (a) .............. 23,550 1,389,450
MediaOne Group Inc. ........................ 24,305 1,067,901
Univision Communications Inc. .............. 59,445 2,214,326
-----------
16,994,801
Pharmaceuticals -- 8.61%
ALZA Corp. (a) ............................. 19,450 841,213
MedImmune Inc. (a) ......................... 32,814 2,046,773
Omnicare Inc. .............................. 112,510 4,289,444
Sepracor Inc. (a) .......................... 5,100 211,650
Watson Pharmaceutical Inc. (a) ............. 19,400 905,738
-----------
8,294,818
Retail -- 2.59%
CVS Corp. .................................. 12,050 469,197
Fastenal Co. ............................... 19,285 895,547
MSC Industrial Direct Co. (a) .............. 39,650 1,130,025
-----------
2,494,769
Semiconductors -- 1.25%
Maxim Integrated Products Inc. (a).......... 37,965 1,203,014
Software -- 6.86%
America Online Inc. ........................ 26,360 2,794,160
At Home Corp. (a) .......................... 9,775 462,480
Cadence Design Systems Inc. (a) ............ 86,195 2,693,594
Parametric Technology Corp. (a) ............ 24,295 659,002
-----------
6,609,236
See notes to the financial statements.
<PAGE>
JNL CAPITAL GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Telecommunications -- 1.38%
Metromedia International Group
Inc. (a) ................................... 37,630 $449,208
U S West Inc. .............................. 1 36
Western Wireless Corp. (a) ................. 44,225 881,736
-----------
1,330,980
Total United States ....................... 83,738,637
-----------
Total Common Stocks
(cost $72,633,957) ..................... 92,451,525
-----------
Principal Market
Amount Value
------ -----
Short Term Investments -- 4.05%
Diversified Financial Services -- 3.12%
Household Finance Corp., 6.00%,
07/01/1998 ............................... $3,000,000 $3,000,000
U.S. Government Agencies -- 0.93%
Federal Home Loan Mortgage Corp.
Discount Note, 5.85%, 07/01/1998.......... 900,000 900,000
-----------
Total Short Term Investments
(cost $3,900,000) ...................... 3,900,000
-----------
Total Investments -- 100%
(cost $76,533,957) ......................... $
96,351,525
===========
- -----------------------------------------------
(a) Non-income producing security.
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks --93.15%
Australia -- 0.03%
Banks -- 0.03%
National Australia Bank Ltd. ............... 5,822 $76,979
Austria -- 0.75%
Banks -- 0.75%
Bank Austria AG ............................ 16,756 1,364,120
Erste Bank Der Oesterreichen
Sparkassen AG ............................ 5,966 362,074
-----------
Total Austria ............................. 1,726,194
Belgium -- 0.00%
Financial Services -- 0.00%
Dexia Belgium .............................. 72 10,843
Denmark -- 0.63%
Banks -- 0.35%
BG Bank A/S ................................ 7,506 465,395
Unidanmark A/S ............................. 3,854 346,717
-----------
812,112
Pharmaceuticals -- 0.14%
Novo-Nordisk A/S "B" ....................... 2,241 309,261
Transportation -- 0.14%
SAS Danmark A/S ............................ 15,858 318,568
-----------
Total Denmark ............................. 1,439,941
Finland -- 3.76%
Banks -- 0.12%
Merita Ltd. ................................ 43,143 284,941
Food -- 0.57%
Raisio Group Plc ........................... 72,620 1,311,679
Insurance -- 0.95%
Pohjola Insurance Co. ...................... 21,619 1,076,799
Sampo Insurance Co. Plc .................... 22,664 1,075,093
-----------
2,151,892
Software -- 0.72%
Tieto Corp. ................................ 21,762 1,655,660
Telecommunications -- 1.40%
Nokia Oyj "A" .............................. 43,626 3,211,628
-----------
Total Finland ............................. 8,615,800
France -- 8.98%
Auto Manufacturers -- 1.26%
Renault SA ................................. 50,954 2,898,437
Auto Parts & Equipment -- 0.25%
Valeo SA ................................... 5,629 575,404
Market
Shares Value
------ -----
Common Stocks (continued)
France (continued)
Banks -- 0.30%
Credit Commercial de France ................ 6,243 $525,611
Dexia France ............................... 1,231 165,743
-----------
691,354
Commercial Services -- 0.48%
Vivendi .................................... 5,127 1,094,821
Computers -- 2.04%
Atos SA (a) ................................ 6,245 1,497,800
Cap Gemini SA .............................. 20,291 3,188,456
-----------
4,686,256
Engineering & Construction -- 0.28%
Compagnie Francaise d'Estudes
et de Construction Technip ............... 5,225 638,681
Food -- 0.52%
Groupe Danone .............................. 4,297 1,184,825
Insurance -- 0.32%
AXA-UAP .................................... 5,260 591,627
Groupe des Assurances Nationales ........... 5,647 151,316
-----------
742,943
Machinery -- 0.29%
Alstom (a) ................................. 20,404 671,617
Oil & Gas Producers -- 1.84%
Elf Aquitaine SA ........................... 22,294 3,134,443
Total SA ................................... 8,273 1,075,571
-----------
4,210,014
Pharmaceuticals -- 0.59%
Rhone-Poulenc SA ........................... 24,146 1,361,924
Retail -- 0.09%
Castorama Dubois Investissements .....1,129 198,696
Telecommunications -- 0.72%
Alcatel Alsthom SA ......................... 8,070 1,643,179
-----------
Total France .............................. 20,598,151
Germany -- 8.01%
Auto Manufacturers -- 0.85%
Bayerische Motoren Werke AG ................ 583 589,966
Bayerische Motoren Werke AG - New.......... 174 171,738
Volkswagen AG .............................. 1,240 1,198,436
-----------
1,960,140
Banks -- 1.85%
Deutsche Bank AG ........................... 29,519 2,497,768
Deutsche Pfandbrief &
Hypothekenbank AG ........................ 18,866 1,510,577
Dresdner Bank AG ........................... 4,443 240,202
-----------
4,248,547
See notes to the financials statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Germany (continued)
Chemicals -- 0.51%
Hoeschst AG ................................ 23,368 $1,175,883
Holding Companies - Diversified -- 0.40%
Preussag AG ................................ 2,570 920,580
Insurance -- 1.03%
Allianz AG ................................. 1,528 509,630
Allianz AG - New ........................... 44 14,553
ERGO Versicherungs Gruppe AG ............... 5,684 1,021,163
Muenchener Rueckversicher
Gesellschaft AG ......................... 1,633 811,316
-----------
2,356,662
Machinery -- 2.21%
Mannesman AG ............................... 49,020 5,042,119
Manufacturing -- 0.32%
Siemens AG ................................. 12,180 743,923
Pharmaceuticals -- 0.84%
Merck Kgaa ................................. 16,307 731,507
Schering AG ................................ 10,152 1,196,207
-----------
1,927,714
-----------
Total Germany ............................. 18,375,568
Greece -- 0.08%
Telecommunications -- 0.08%
Hellenic Telecommunication
Organization SA ......................... 6,918 177,548
Hong Kong -- 0.47%
Holding Companies - Diversified -- 0.10%
First Pacific Co. Ltd. ..................... 570,540 239,321
Telecommunications -- 0.37%
China Telecom Ltd. (a) ..................... 478,000 829,775
-----------
Total Hong Kong .......................... 1,069,096
Italy -- 3.76%
Banks -- 1.95%
Banca Commerciale Italiana ................. 364,637 2,181,563
Banca di Roma (a) .......................... 866,847 1,805,169
Credito Italiano ........................... 94,601 495,434
-----------
4,482,166
Chemicals -- 0.38%
SNIA BPD SpA ............................... 700,000 858,871
Diversified Financial Services -- 0.06%
Banca Fideuram SpA ......................... 24,876 141,899
Insurance -- 0.45%
Assicurazioni Generali ..................... 31,541 1,026,070
Market
Shares Value
------ -----
Common Stocks (continued)
Italy (continued)
Telecommunications -- 0.92%
Telecom Italia Mobile SpA (a) .............. 97,252 $594,979
Telecom Italia SpA ......................... 207,247 1,526,285
-----------
2,121,264
-----------
Total Italy ............................... 8,630,270
Japan -- 6.38%
Auto Manufacturing -- 0.48%
Honda Motor Co. Ltd. ....................... 13,000 1,107,543
Beverages -- 0.52%
Kirin Brewery Co. Ltd. ..................... 126,000 1,193,751
Cosmetics & Personal Care-- 0.25%
Kao Corp. .................................. 30,000 572,648
Diversified Financial Services -- 0.25%
Nomura Securities Co. Ltd. ................. 50,000 584,002
Home Furnishings -- 1.60%
Sony Corp. ................................. 42,300 3,655,782
Pharmaceuticals -- 1.00%
Fujisawa Pharmaceutical .................... 54,000 506,922
Takeda Chemical Industries ................. 67,000 1,788,023
-----------
2,294,945
Retail -- 0.25%
Ito-Yokado Co. Ltd. ........................ 12,000 566,717
Semiconductors -- 0.27%
Rohm Co. Ltd. .............................. 6,000 618,356
Software -- 0.98%
Meitec Corp. ............................... 32,500 1,128,227
NTT Data Corp. ............................. 31 1,123,237
-----------
2,251,464
Telecommunications -- 0.78%
Nippon Telegraph & Telephone Corp .......... 216 1,796,485
-----------
Total Japan ............................... 14,641,693
Mexico -- 0.25%
Holding Companies - Diversified -- 0.18%
Fomento Economico Mexicano SA .............. 13,240 412,576
Forest Products & Paper -- 0.02%
Kimberly-Clark de Mexico SA ................ 11,800 41,695
Retail -- 0.05%
Cifra SA "C" (a) ........................... 25,500 35,417
Cifra SA "V" (a) ........................... 51,783 77,800
-----------
113,217
-----------
Total Mexico .............................. 567,488
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Netherlands -- 6.43%
Banks -- 0.30%
ING Groep NV ............................... 10,380 $680,170
Chemicals -- 1.64%
Akzo Nobel ................................. 16,926 3,765,311
Computers -- 0.82%
Getronics NV ............................... 36,317 1,884,857
Electronics -- 1.78%
Philips Electronics NV ..................... 33,917 2,853,182
Simac Techniek NV .......................... 6,000 1,260,362
-----------
4,113,544
Entertainment -- 0.08%
PolyGram NV ................................ 3,408 174,026
Food -- 0.19%
Koninklijke Numico NV ...................... 13,685 428,845
Household Products -- 0.27%
Hagemeyer NV ............................... 14,458 625,903
Media -- 1.35%
Wolters Kluwer NV .......................... 22,463 3,085,313
-----------
Total Netherlands ......................... 14,757,969
Norway -- 0.45%
Airlines -- 0.11%
SAS Norge ASA "B" .......................... 14,869 254,138
Banks -- 0.09%
DenNorske Bank ASA ......................... 38,517 202,020
Insurance -- 0.09%
Storebrand ASA ............................. 23,774 210,925
Software -- 0.16%
Merkantildata ASA .......................... 27,970 353,981
-----------
Total Norway .............................. 1,021,064
Portugal -- 0.28%
Building Materials -- 0.28%
Cimentos de Portugal SA .................... 17,953 631,175
Spain -- 2.10%
Banks -- 0.57%
Banco Bilbao Vizcaya ....................... 2,216 113,726
Banco Central Hispanoamericano ............. 17,961 564,539
Corporacion Bancaria de Espana SA........... 27,840 624,516
-----------
1,302,781
Market
Shares Value
------ -----
Common Stocks (continued)
Spain (continued)
Electric -- 0.19%
Endesa SA .................................. 19,480 $ 426,186
Retail -- 0.94%
Telepizza .................................. 205,664 2,179,354
Telecommunications --0.34%
Telefonica SA .............................. 16,625 768,642
Tobacco -- 0.06%
Tabacalera SA .............................. 7,057 144,499
-----------
Total Spain ............................... 4,821,462
Sweden -- 5.48%
Airlines -- 0.17%
SAS Sverige AB ............................. 22,110 396,406
Banks -- 0.44%
Skandinaviska Enskilda Banken .............. 59,297 1,014,799
Commercial Services -- 0.76%
Securitas AB "B" ........................... 35,684 1,747,066
Computers -- 0.43%
WM-Data AB ................................. 28,290 982,489
Health Care -- 0.27%
Ortivus AB (a) ............................. 39,602 620,643
Home Furnishings -- 1.16%
Electrolux AB "B" .......................... 153,780 2,641,407
Metals & Mining -- 1.00%
Assa Abloy AB .............................. 58,124 2,284,588
Pharmaceuticals -- 0.70%
Astra AB "A" ............................... 78,752 1,609,400
Telecommunications -- 0.55%
Telefonaktiebolaget LM Ericsson ............ 43,278 1,264,265
-----------
Total Sweden .............................. 12,561,063
Switzerland -- 5.90%
Banks -- 2.19%
Credit Suisse Group ........................ 4,356 970,845
Julius Baer Holding AG ..................... 109 341,547
Union Bank of Switzerland .................. 9,950 3,705,871
-----------
5,018,263
Biotechnology -- 0.09%
Ares-Serono Group SA ....................... 153 213,188
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Switzerland (continued)
Insurance -- 2.43%
Baloise Holdings Ltd. ...................... 804 $ 659,426
Schweizerische
Lebensversicherungs-
und Rentenanstalt ....................... 3,683 3,122,877
Zurich ..................................... 2,773 1,772,610
Versicherungs-Gesellschaft
-----------
5,554,913
Leisure Time -- 0.24%
Kuoni Reisen Holding ....................... 112 556,930
Manufacturing -- 0.02%
Sulzer AG .................................. 61 48,217
Pharmaceuticals -- 0.93%
Novartis ................................... 1,145 1,908,459
Roche Holding AG ........................... 23 226,234
-----------
2,134,693
-----------
Total Switzerland ......................... 13,526,204
United Kingdom -- 12.39%
Banks --1.80%
Lloyds TSB Group Plc ....................... 209,071 2,927,085
National Westminster Bank Plc .............. 29,234 522,777
Schroders Plc .............................. 6,096 157,359
Standard Chartered Plc ..................... 46,776 531,874
-----------
4,139,095
Beverages -- 0.20%
Diageo Plc ................................. 37,850 448,707
Chemicals -- 0.44%
Imperial Chemical Industries ............... 63,302 1,016,789
Plc
Commercial Services -- 2.99%
Hays Plc ................................... 116,697 1,958,233
Rentokil Initial Plc ....................... 680,768 4,899,083
-----------
6,857,316
Computers -- 1.97%
Logica Plc ................................. 82,890 2,668,380
Misys Plc .................................. 29,138 1,656,591
SEMA Group Plc ............................. 17,400 204,822
-----------
4,529,793
Diversified Financial Services -- 0.28%
Amvescap Plc ............................... 64,908 634,005
Electronics -- 0.38%
Electrocomponents Plc ...................... 111,486 874,896
Food -- 0.73%
Compass Group Plc .......................... 145,910 1,678,583
Holding Companies -- 0.03%
Tomkins Plc ................................ 11,682 63,441
Market
Shares Value
------ -----
Common Stocks (continued)
United Kingdom (continued)
Insurance -- 0.30%
Royal & Sun Alliance Insurance ............. 65,565 $ 678,191
Manufacturing -- 2.04%
General Electric Plc ....................... 138,134 1,191,267
Siebe Plc .................................. 167,127 3,340,252
Williams Plc ............................... 19,507 125,398
-----------
4,656,917
Pharmaceuticals -- 0.20%
Zeneca Group Plc ........................... 10,865 466,594
Retail -- 0.04%
J. D. Wetherspoon Plc ...................... 18,310 88,048
Software -- 0.10%
JBA Holdings Plc ........................... 23,005 238,150
Telecommunications-- 0.89%
Energis Plc (a) ............................ 134,209 2,044,989
-----------
Total United Kingdom ...................... 28,415,514
United States -- 27.02%
Banks -- 0.50%
BankAmerica Corp. .......................... 8,965 774,912
Royal Bank Of Canada ....................... 4,894 295,475
Uniao de Bancos Brasileiros SA- GDR......... 2,545 75,078
-----------
1,145,465
Beverages -- 0.28%
Coca-Cola Femsa SA - ADR ................... 12,040 209,195
Compania Cervejaria Brahma - ADR............ 34,055 425,688
-----------
634,883
Biotechnology -- 1.54%
Monsanto Co. ............................... 63,070 3,524,036
Chemicals -- 1.05%
E.I. du Pont de Nemours & Co. .............. 17,590 1,312,654
Solutia Inc. ............................... 38,325 1,099,448
-----------
2,412,102
Computers -- 2.24%
Cisco Systems Inc. (a) ..................... 55,787 5,135,891
Cosmetics & Personal Care -- 0.29%
Estee Lauder Cos. Inc. ..................... 9,430 657,153
Diversified Financial Services -- 0.40%
Household International Inc. ............... 11,890 591,527
Morgan Stanley Dean Witter & Co............. 3,575 326,666
-----------
918,193
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Electric -- 0.02%
Companhia Energetica de Minas
Gerais -
ADR ..................................... 1,285 $ 39,773
Mosenergo - ADR ............................ 1,975 9,381
-----------
49,154
Electronics -- 1.65%
Philips Electronics NV - NYS ............... 44,559 3,787,515
Food -- 0.03%
Disco SA - ADR ............................. 2,300 73,600
Health Care -- 0.05%
United States Surgical Corp. ............... 2,340 106,763
Investment Company -- 0.09%
Romania Investment Fund .................... 204 210,098
Leisure Time -- 0.11%
Mattel Inc. ................................ 5,975 252,816
Manufacturing --1.80%
Tyco International Ltd. .................... 65,650 4,135,950
Media -- 5.15%
CBS Corp. .................................. 46,735 1,483,836
Comcast Corp. .............................. 49,600 2,013,450
Grupo Televisa SA - GDR .................... 28,210 1,061,401
MediaOne Group Inc. ........................ 9,215 404,884
Tele-Communications Inc. ................... 111,915 4,301,733
Time Warner Inc. ........................... 29,895 2,554,154
-----------
11,819,458
Oil & Gas Producers -- 0.17%
LUKoil-Holding -ADR ........................ 1,480 49,476
YPF SA - ADR ............................... 11,100 333,694
-----------
383,170
Pharmaceuticals -- 2.81%
Elan Corp. Plc - ADR (a) ................... 14,140 909,378
Eli Lilly & Co. ............................ 11,895 785,813
Grupo Casa Autrey SA - ADR ................. 6,208 40,352
Pfizer Inc. ................................ 7,080 769,508
Pharmacia & Upjohn Inc. .................... 14,485 668,121
SmithKline Beecham Plc - ADR ............... 15,600 943,800
Warner-Lambert Co. ......................... 33,629 2,333,012
-----------
6,449,984
Retail -- 0.36%
Costco Cos. Inc. (a) ....................... 7,665 483,374
Starbucks Corp. (a) ........................ 6,470 345,741
-----------
829,115
Semiconductors -- 0.93%
ASM Lithography Holding NV - NYS (a)........ 4,660 135,432
Texas Instruments Inc. ..................... 34,420 2,007,116
-----------
2,142,548
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Software -- 4.49%
American Management Systems (a) ............ 8,000 $ 239,500
Intuit Inc. (a) ............................ 16,595 1,016,444
Microsoft Corp. ............................ 51,100 5,537,962
Parametric Technology Corp. (a) ............ 78,645 2,133,246
PeopleSoft Inc. (a) ........................ 29,270 1,375,690
-----------
10,302,842
Telecommunications -- 3.06%
Alcatel Alshom SA - ADR .................... 2,775 112,907
Compania de Telecomunicaciones de
Chile SA - ADR .......................... 14,105 286,508
Millicom International Cellular
SA - ADR (a)............................. 2,645 115,719
Nokia Corp. - ADR .......................... 20,710 1,502,769
Nortel Inversora SA - ADR .................. 36,400 905,450
Telecom Argentina SA - ADR ................. 3,750 111,797
Telecomunicacoes Brasileiras SA - ADR....... 3,015 329,200
Telefonaktiebolaget LM Ericsson - ADR....... 31,312 896,306
Telefonica de Argentina SA - ADR ........... 16,535 536,354
Telefonos de Mexico SA - ADR ............... 9,580 460,439
WorldCom Inc. .............................. 36,390 1,762,641
-----------
7,020,090
-----------
Total United States ....................... 61,990,826
-----------
Total Common Stocks
(cost $159,959,806) .................... 213,654,848
-----------
Preferred Stocks -- 1.32%
Brazil -- 0.00%
Electric -- 0.00%
Companhia Energetic de Minas Gerais......... 574 18
Oil & Gas Producers -- 0.00%
Petroleo Brasileiro SA ..................... 500 93
-----------
Total Brazil .............................. 111
Germany -- 1.32%
Auto Manufacturers -- 0.67%
Porsche AG ................................. 537 1,548,366
Insurance -- 0.65%
Marschollek Lauten und Partner AG........... 1,487,770
-----------
Total Germany ............................. 3,036,136
-----------
Total Preferred Stocks
(cost $2,453,725) ...................... 3,036,247
-----------
Principal
Amount
------
Short Term Investments -- 5.53%
Diversified Financial Services -- 5.27%
CIT Group Inc., 6.10%,
07/01/1998 ................................. $ 2,100,000 2,100,000
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Diversified Financial Services
(continued)
Household Finance Corp., 6.00%,
07/01/1998 .............................. $10,000,000 $10,000,000
-----------
12,100,000
U.S. Treasury Bill -- 0.26%
U.S. Treasury Bill, 5.005%, 10/01/1998...... 600,000 592,326
-----------
Total Short Term Investments
(cost $12,692,326) ..................... 12,692,326
-----------
Total Investments -- 100%
(cost $175,105,856 ) ....................... $229,383,421
===========
- -----------------------------------------------
(a) Non-income producing security.
<PAGE>
JNL/ALGER GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 96.04 %
Airlines -- 3.10%
AMR Corp. (a) .............................. 46,600 $ 3,879,450
Banks -- 10.22%
Banc One Corp. ............................. 17,465 974,765
Bank of New York Co. Inc. .................. 44,600 2,706,663
BankAmerica Corp. .......................... 18,400 1,590,450
BankBoston Corp. ........................... 22,800 1,268,250
Chase Manhattan Corp. ...................... 24,000 1,812,000
First Chicago NBD Corp. .................... 7,000 620,375
First Union Corp. .......................... 38,644 2,251,013
NationsBank Corp. .......................... 20,700 1,583,550
-----------
12,807,066
Building Materials -- 2.06%
Masco Corp. ................................ 42,600 2,577,300
Commercial Services -- 0.44%
H & R Block Inc. ........................... 13,200 556,050
Computers -- 6.60%
Ascend Communications Inc. (a) ............. 12,400 614,575
Bay Networks Inc. (a) ...................... 20,400 657,900
Cisco Systems Inc. (a) ..................... 37,850 3,484,566
Compaq Computer Corp. ...................... 84,000 2,383,500
International Business Machines Corp........ 9,900 1,136,644
-----------
8,277,185
Diversified Financial Services -- 5.40%
Federal Home Loan Mortgage Corp. ........... 32,300 1,520,119
Household International Inc. ............... 49,800 2,477,550
Morgan Stanley Dean Witter & Co. ........... 30,375 2,775,516
-----------
6,773,185
Electric -- 1.05%
AES Corp. (a) .............................. 25,000 1,314,060
Entertainment -- 1.03%
International Game Technology .............. 53,000 1,285,250
Environmental Control-- 2.05%
USA Waste Services Inc. (a) ................ 52,000 2,567,500
Food --2.54%
Safeway Inc. (a) ........................... 78,200 3,181,760
Hand & Machine Tools-- 0.49%
Black & Decker Corp. ....................... 10,100 616,100
Health Care -- 2.47%
Cognizant Corp. ............................ 39,000 2,457,000
Medtronic Inc. ............................. 10,000 637,500
-----------
3,094,500
Household Products -- 0.48%
Newell Co. ................................. 12,000 597,750
Market
Shares Value
------ -----
Common Stocks (continued)
Insurance -- 6.50%
American International Group Inc. .......... 24,900 $ 3,635,400
MGIC Investment Corp. ...................... 17,100 975,769
Travelers Group Inc. ....................... 58,400 3,540,500
-----------
8,151,669
Leisure Time -- 3.16%
Carnival Corp. ............................. 65,800 2,607,325
Mattel Inc. ................................ 32,100 1,358,231
-----------
3,965,556
Manufacturing -- 3.14%
Tyco International Ltd. .................... 62,440 3,933,718
Media -- 0.94%
CBS Corp. .................................. 37,200 1,181,100
Packaging & Containers -- 0.86%
Owens-Illinois Inc. (a) .................... 24,200 1,082,950
Pharmaceuticals -- 13.35%
Bristol-Myers Squibb Co. ................... 22,000 2,528,625
Cardinal Health Inc. ....................... 19,200 1,800,000
Elan Corp. Plc - ADR (a) ................... 9,500 610,969
Eli Lilly & Co. ............................ 9,000 594,563
McKesson Corp. ............................. 12,400 1,007,500
Pfizer Inc. ................................ 27,000 2,934,563
Schering-Plough Corp. ...................... 37,600 3,445,100
Warner-Lambert Co. ......................... 54,900 3,808,688
-----------
16,730,008
Retail -- 10.56%
CVS Corp. .................................. 65,200 2,538,725
Fred Meyer Inc. (a) ........................ 13,200 561,000
Home Depot Inc. ............................ 44,250 3,675,516
Kmart Corp. (a) ............................ 29,700 571,725
Staples Inc. (a) ........................... 75,300 2,178,994
Wal-Mart Stores Inc. ....................... 61,000 3,705,750
-----------
13,231,710
Software -- 11.44%
America Online Inc. ........................ 43,100 4,568,600
Compuware Corp. (a) ........................ 37,700 1,927,413
HBO & Co. .................................. 72,300 2,548,575
Microsoft Corp. ............................ 37,700 4,085,738
Network Associates Inc. (a) ................ 25,200 1,206,450
-----------
14,336,776
Telecommunications-- 5.78%
CIENA Corp. (a) ............................ 27,000 1,879,875
Nokia Corp. - ADR .......................... 30,200 2,191,388
WorldCom Inc. (a) .......................... 65,400 3,167,813
-----------
7,239,076
See notes to the financial statements.
<PAGE>
JNL/ALGER GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Transportation -- 2.38%
Burlington Northern Santa Fe Corp. ......... 17,800 $ 1,747,738
Kansas City Southern Industries Inc. ....... 25,000 1,240,625
-----------
2,988,363
-----------
Total Common Stocks
(cost $88,481,242) ..................... 120,368,082
-----------
Principal
Amount
------
Short Term Investments -- 3.96%
Auto Manufacturers -- 0.79%
General Motors Corp., 5.59%,
07/13/1998................................ $1,000,000 998,137
Diversified Financial Services -- 0.96%
Repsol International Finance BV,
5.43%, 07/02/1998 .......................... 1,200,000 1,199,819
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Environmental Control -- 1.20%
AlliedSignal Inc., 5.60%,
07/08/1998 ................................. $ 1,500,000 $ 1,498,367
Money Market Fund -- 1.01%
SSgA Money Market Fund, 5.35% (b) .......... 1,264,632 1,264,632
-----------
Total Short Term Investments
(cost $4,960,955) ...................... 4,960,955
-----------
Total Investments -- 100%
(cost $93,442,197) ......................... $125,329,037
===========
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
See notes to the financial statements.
<PAGE>
JNL/ALLIANCE GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 99.86%
Aerospace & Defense -- 1.63%
United Technologies Corp. .................. 450 $ 41,625
Airlines -- 3.04%
Northwest Airlines Corp. (a) ............... 1,200 46,275
UAL Corp. (a) .............................. 400 31,200
-----------
77,475
Banks -- 6.66%
Chase Manhattan Corp. ...................... 300 22,650
Citicorp ................................... 500 74,625
NationsBank Corp. .......................... 950 72,675
-----------
169,950
Beverages -- 0.67%
Coca-Cola Co. .............................. 200 17,100
Computers -- 11.23%
Cisco Systems Inc. ......................... 1,400 128,888
Compaq Computer Corp. ...................... 900 25,538
Dell Computer Corp. (a) .................... 1,300 120,656
International Business Machines Corp........ 100 11,481
-----------
286,563
Cosmetics & Personal Care -- 1.70%
Colgate-Palmolive Co. ...................... 300 26,400
Gillette Co. ............................... 300 17,006
-----------
43,406
Diversified Financial Services -- 11.54%
Associates First Capital Corp. ............. 600 46,125
Federal National Mortgage Association....... 600 36,450
Household International Inc. ............... 600 29,850
MBNA Corp. ................................. 2,600 85,800
Merrill Lynch & Co. Inc. ................... 400 36,900
Morgan Stanley Dean Witter & Co. ........... 650 59,394
-----------
294,519
Electronics -- 0.33%
Honeywell Inc. ............................. 100 8,352
Food -- 0.83%
Campbell Soup Co. .......................... 400 21,250
Health Care -- 3.03%
Humana Inc. (a) ............................ 400 12,475
United HealthCare Corp. .................... 950 60,325
United States Surgical Corp. ............... 100 4,563
-----------
77,363
Insurance -- 2.53%
American International Group ............... 200 29,200
Inc ........................................
Progressive Corp. .......................... 250 35,250
-----------
64,450
Market
Shares Value
------ -----
Common Stocks (continued)
Leisure Time -- 0.62%
Carnival Corp. ............................. 400 $ 15,850
Manufacturing -- 5.16%
General Electric Co. ....................... 200 18,200
Tyco International Ltd. .................... 1,800 113,400
-----------
131,600
Media -- 5.97%
Gannett Co. Inc. ........................... 600 42,638
Liberty Media Group (a) .................... 1,200 46,575
Walt Disney Co. ............................ 600 63,038
-----------
152,251
Oil & Gas Producers -- 2.55%
Halliburton Co. ............................ 1,000 44,563
Schlumberger Ltd. .......................... 300 20,494
-----------
65,057
Pharmaceuticals -- 9.27%
Bristol-Myers Squibb Co. ................... 550 63,216
Merck & Co. Inc. ........................... 410 54,838
Pfizer Inc. ................................ 500 54,344
Schering-Plough Corp. ...................... 700 64,138
-----------
236,536
Retail -- 9.29%
Dayton Hudson Corp. ........................ 1,500 72,750
Home Depot Inc. ............................ 1,300 107,981
Kohl's Corp. (a) ........................... 500 25,938
Wal-Mart Stores Inc. ....................... 500 30,375
-----------
237,044
Savings & Loans -- 1.95%
H.F. Ahmanson & Co. ........................ 700 49,700
Semiconductors -- 1.16%
Intel Corp. ................................ 400 29,650
Software -- 2.55%
Microsoft Corp. ............................ 600 65,022
Telecommunications -- 13.83%
AirTouch Communications Inc. (a) ........... 2,100 122,719
Lucent Technologies Inc. ................... 200 16,638
MCI Communications Corp. ................... 300 17,438
Nokia Corp. - ADR .......................... 1,950 141,497
Telefonaktiebolaget LM Ericsson - ADR....... 900 25,763
Tellabs Inc. (a) ........................... 400 28,650
-----------
352,705
Tobacco -- 4.32%
Philip Morris Cos. Inc. .................... 2,800 110,250
-----------
Total Common Stocks
(cost $2,311,197) ...................... 2,547,718
-----------
Principal Market
Amount Value
------ -----
Short Term Investments -- 0.14%
Money Market Funds -- 0.14%
SSgA Money Market Fund, 5.35%, (b) ......... $ 3,494 $ 3,494
-----------
Total Short Term Investments
(cost $3,494) .......................... 3,494
-----------
Total Investments -- 100%
(cost $2,314,691) .......................... $ 2,551,212
===========
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
See notes to the financial statements.
<PAGE>
JNL/EAGLE CORE EQUITY SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks --87.83%
Advertising -- 1.75%
Omnicom Group Inc. ......................... 8,500 $ 423,938
Aerospace & Defense -- 0.61%
Raytheon Co. "B" ........................... 2,500 147,813
Banks -- 4.48%
BankAmerica Corp. .......................... 3,000 259,313
Chase Manhattan Corp. ...................... 8,200 619,100
First Union Corp. .......................... 1,700 99,025
Mellon Bank Corp. .......................... 1,600 111,400
-----------
1,088,838
Beverages -- 0.88%
Coca-Cola Co. .............................. 2,500 213,750
Biotechnology -- 0.69%
Monsanto Co. ............................... 3,000 167,610
Building Materials -- 0.70%
American Standard Cos. Inc. (a) ............ 3,800 169,813
Chemicals -- 2.24%
Crompton & Knowles Corp. ................... 4,000 100,750
E.I. du Pont de Nemours & Co. .............. 2,500 186,563
Imperial Chemical Industries Plc - ADR...... 2,500 161,250
Morton International Inc. .................. 3,800 95,000
-----------
543,563
Commercial Services -- 1.55%
MedPartners Inc. ........................... 21,500 172,000
Paychex Inc. ............................... 5,000 203,438
-----------
375,438
Computers -- 4.02%
Cisco Systems Inc. (a) ..................... 5,000 460,313
Dell Computer Corp. (a) .................... 2,500 232,031
Electronic Data Systems Corp. .............. 3,000 120,000
Stratus Computer Inc. (a) .................. 6,500 164,531
-----------
976,875
Cosmetics & Personal Care -- 0.93%
Gillette Co. ............................... 4,000 226,750
Distribution & Wholesale -- 0.62%
Unisource Worldwide Inc. ................... 14,000 151,375
Diversified Financial Services -- 7.24%
American Express Co. ....................... 2,000 228,000
Associates First Capital Corp. ............. 2,000 153,750
Federal Home Loan Mortgage Corp. ........... 8,000 376,500
Federal National Mortgage .Association...... 5,000 303,750
Morgan Stanley Dean Witter & Co. ........... 4,000 365,500
SLM Holding Corp. .......................... 6,700 328,300
-----------
1,755,800
Market
Shares Value
------ -----
Common Stocks (continued)
Electric -- 2.12%
FPL Group Inc. ............................. 2,000 $ 126,000
PacifiCorp ................................. 7,500 169,688
Sierra Pacific Resources ................... 3,700 134,356
TECO Energy Inc. ........................... 3,200 85,800
-----------
515,844
Electrical Components & Equipment -- 0.97%
Essex International Inc. (a) ............... 10,000 236,250
Electronics -- 2.82%
AMP Inc. ................................... 2,500 85,938
General Signal Corp. ....................... 6,000 216,000
Philips Electronics NV - NYS ............... 4,500 382,500
-----------
684,438
Environmental Control -- 1.01%
Waste Management Inc. ...................... 7,000 245,000
Food -- 1.49%
ConAgra Inc. ............................... 4,000 126,750
H.J. Heinz Co. ............................. 2,100 117,863
SYSCO Corp. ................................ 4,600 117,875
-----------
362,488
Forest Products & Paper -- 0.48%
Schweitzer-Mauduit International Inc. ...... 4,000 116,000
Health Care -- 2.49%
Bausch & Lomb Inc. ......................... 1,800 90,225
Columbia/HCA Healthcare Corp. .............. 7,800 227,175
Guidant Corp. .............................. 3,500 249,594
Humana Inc. (a) ............................ 1,200 37,425
-----------
604,419
Holding Companies - Diversified -- 0.62%
Walter Industries Inc. (a) ................. 8,000 151,500
Household Products -- 2.08%
Clorox Co. ................................. 2,000 190,750
Fortune Brands Inc. ........................ 3,800 146,063
Tupperware Corp. ........................... 6,000 168,750
-----------
505,563
Insurance -- 5.00%
Aetna Inc. ................................. 3,800 289,275
American International Group Inc. .......... 2,000 292,000
SAFECO Corp. ............................... 3,000 136,313
Travelers Group Inc. ....................... 6,049 366,721
Travelers Property Casualty Corp. .......... 3,000 128,625
-----------
1,212,934
Investment Company -- 1.54%
SPDR Trust ................................. 3,300 374,138
See notes to the financial statements.
<PAGE>
JNL/EAGLE CORE EQUITY SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Iron & Steel -- 1.33%
Allegheny Teledyne Inc. .................... 8,000 $ 183,000
British Steel Plc - ADR .................... 6,200 141,050
-----------
324,050
Manufacturing -- 3.47%
General Electric Co. ....................... 4,300 391,300
Harsco Corp. ............................... 2,000 91,625
Illinois Tool Works Inc. ................... 3,500 233,406
PPG Industries Inc. ........................ 1,800 125,213
-----------
841,544
Oil & Gas Producers -- 7.16%
Ashland Inc. ............................... 3,500 180,688
Baker Hughes Inc. .......................... 3,000 103,688
British Petroleum Co. Plc - ADR ............ 2,600 229,450
Diamond Offshore Drilling .................. 4,200 168,000
Enron Corp. ................................ 2,000 108,125
Exxon Corp. ................................ 1,500 106,969
Mobil Corp. ................................ 1,600 122,600
Royal Dutch Petroleum Co. - NYS ............ 2,200 120,588
Sonat Inc. ................................. 6,500 251,063
UGI Corp. .................................. 4,800 119,400
WICOR, Inc. ................................ 4,600 106,375
Williams Cos., Inc. ........................ 3,600 121,500
-----------
1,738,446
Pharmaceuticals -- 8.00%
Abbott Laboratories ........................ 2,200 89,925
Bristol-Myers Squibb Co. ................... 3,000 344,813
Pfizer Inc. ................................ 2,500 271,719
Pharmacia & Upjohn Inc. .................... 2,800 129,150
R.P. Scherer Corp. (a) ..................... 2,000 177,250
Schering-Plough Corp. ...................... 4,000 366,500
SmithKline Beecham Plc - ADR ............... 1,000 60,500
Warner-Lambert Co. ......................... 7,200 499,500
-----------
1,939,357
Real Estate -- 2.69%
Alexander Haagen Properties Inc. .....3,900 58,744
FAC Realty Trust Inc. (a) .................. 3,000 24,000
Health Care Property Investors Inc.......... 1,400 50,488
Koger Equity Inc. .......................... 2,200 44,413
LaSalle Hotel Properties ................... 1,500 25,406
Mack-Cali Realty Corp. ..................... 1,500 51,563
PS Business Parks Inc. ..................... 2,000 47,000
Rouse Co. .................................. 1,600 50,300
Security Capital Group Inc. (a) ............ 6,500 173,063
Spieker Properties Inc. .................... 1,100 42,625
Sun Communities Inc. ....................... 1,600 53,000
Tower Realty Trust Inc. .................... 1,500 33,563
-----------
654,165
Retail -- 6.30%
Federated Department Stores Inc. (a)........ 2,000 107,625
Home Depot Inc. ............................ 5,000 415,313
Intimate Brands Inc. ....................... 4,300 118,519
Market
Shares Value
------ -----
Common Stocks (continued)
Retail (continued)
Kohl's Corp. (a) ........................... 5,000 $ 259,375
Toys "R" Us Inc. (a) ....................... 7,500 176,719
Wal-Mart Stores Inc. ....................... 4,000 243,000
Walgreen Co. ............................... 5,000 206,563
-----------
1,527,114
Software -- 3.31%
HBO & Co. .................................. 10,000 352,500
Microsoft Corp. ............................ 2,000 216,750
PeopleSoft Inc. (a) ........................ 5,000 235,000
-----------
804,250
Telecommunications -- 4.32%
ALLTEL Corp. ............................... 2,600 120,900
BellSouth Corporation ...................... 2,000 134,250
GTE Corporation ............................ 2,200 122,375
Lucent Technologies Inc. ................... 2,500 207,969
SBC Communications Inc. .................... 3,500 140,000
Tellabs Inc. (a) ........................... 2,500 179,063
WorldCom Inc. .............................. 3,000 145,313
-----------
1,049,870
Tobacco -- 4.45%
Dimon Inc. ................................. 20,000 225,000
Philip Morris Cos. Inc. .................... 9,200 362,250
RJR Nabisco Holdings Corp. ................. 10,000 237,500
UST Inc. ................................... 9,500 256,500
-----------
1,081,250
Water -- 0.47%
American Water Works Co. Inc. .............. 3,700 114,700
-----------
Total Common Stocks
(cost $18,617,990) ..................... 21,324,883
-----------
Preferred Stocks -- 3.48%
Banks -- 0.44%
Jefferson Pilot "NB" Aces .................. 800 106,100
Diversified Financial Services -- 1.54%
Coltec Capital Trust ....................... 600 27,975
Golden Books Financing Trust ............... 800 18,600
Kmart Financing I .......................... 1,400 98,000
Lomak Financing Trust ...................... 800 28,600
MCN Energy Group Inc. ...................... 2,000 91,750
Wendy's Financing I ........................ 2,000 110,000
-----------
374,925
Electronics -- 0.43%
Houston Industries Inc. .................... 1,400 104,300
Holding Companies - Diversified -- 0.52%
Ralston Purina Group ....................... 2,000 127,000
See notes to the financial statements.
<PAGE>
JNL/EAGLE CORE EQUITY SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Preferred Stocks (continued)
Software -- 0.55%
Microsoft Corp. ............................ 1,400 $ 133,000
-----------
Total Preferred Stocks
(cost $825,190) ........................ 845,325
-----------
Principal
Amount
------
Corporate Bonds -- 0.82%
Commercial Services -- 0.57%
Equity Corp. International,
4.50%, 12/31/2004 .......................... $80,000 84,700
Interim Services Inc., 4.50%,
06/01/2005 ................................. 50,000 52,563
-----------
137,263
Lodging -- 0.25%
Capstar Hotel Co., 4.75%, .................. 75,000 61,125
10/15/2004
-----------
Total Corporate Bonds
(cost $208,685) ........................ 198,388
-----------
Principal Market
Amount Value
------ -----
Short Term Investments -- 7.87%
Money Market Funds -- 7.87%
SSgA Money Market Fund, 5.35% (b) .......... $ 955,895 $ 955,895
SSgA Government Money Market
Fund, 5.37% (b) ............................ 955,895 955,895
-----------
Total Short Term Investments
(cost $1,911,790) ...................... 1,911,790
-----------
Total Investments -- 100%
(cost $21,563,655) ......................... $24,280,386
===========
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30,1998.
See notes to the financial statements.
<PAGE>
JNL/EAGLE SMALLCAP EQUITY SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 91.28%
Apparel -- 3.60%
Authentic Fitness Corp. .................... 32,700 $ 517,069
R.G. Barry Corp. (a) ....................... 25,000 412,500
-----------
929,569
Commercial Services -- 11.08%
CDI Corp. (a) .............................. 16,000 428,000
Interim Services Inc. (a) .................. 20,000 642,500
MPW Industrial Services Group Inc. (a)...... 35,000 472,500
RCM Technologies Inc. (a) .................. 32,500 660,156
Strayer Education Inc. ..................... 9,750 353,438
Wackenhut Corp. ............................ 14,000 301,000
-----------
2,857,594
Computers -- 1.63%
Sykes Enterprises Inc. (a) ................. 21,000 421,312
Diversified Financial Services -- 4.94%
Dain Rauscher Corp. ........................ 13,000 711,750
Southwest Securities Group Inc. ............ 25,000 562,500
-----------
1,274,250
Electrical Components & Equipment-- 2.54%
Artesyn Technologies Inc. (a) .............. 41,000 656,000
Electronics -- 8.14%
Ampex Corp. (a) ............................ 150,000 309,375
Coherent Inc. (a) .......................... 27,000 463,219
Gentex Corp. (a) ........................... 22,000 398,750
OYO Geospace Corp. (a) ..................... 23,000 632,500
Sawtek Inc. (a) ............................ 20,000 295,000
-----------
2,098,844
Entertainment -- 1.10%
International Speedway Corp. ............... 10,000 284,374
Environmental Control-- 4.01%
IMCO Recycling Inc. ........................ 25,000 462,500
Superior Services Inc. (a) ................. 19,000 571,188
-----------
1,033,688
Health Care -- 2.74%
Alternative Living Services Inc. (a)........ 10,000 270,000
Horizon Health Corp. (a) ................... 25,000 437,500
-----------
707,500
Home Builders -- 0.80%
Lennar Corp. ............................... 7,000 206,500
Lodging -- 4.37%
Capstar Hotel Co. (a) ...................... 16,000 448,000
Cavanaughs Hospitality Corp. (a) ........... 22,200 289,988
Servico Inc. (a) ........................... 26,000 390,000
-----------
1,127,988
Market
Shares Value
------ -----
Common Stocks (continued)
Media -- 5.31%
Mail-Well Inc. (a) ......................... 26,000 $ 563,875
World Color Press Inc. (a) ................. 23,000 805,000
-----------
1,368,875
Office Furnishings -- 2.51%
CompX International Inc. (a) ............... 30,000 648,750
Oil & Gas Producers -- 1.87%
Marine Drilling Cos. Inc. (a) .............. 30,100 481,600
Pharmaceuticals -- 2.34%
PharMerica Inc. (a) ........................ 50,000 603,124
Real Estate -- 2.48%
LNR Property Corp. ......................... 25,000 640,624
Retail -- 15.13%
Burlington Coat Factory Warehouse Corp...... 28,000 630,000
Cash America International Inc. ............ 33,100 504,775
Cole National Corp. (a) .................... 12,000 480,000
Genesco Inc. (a) ........................... 35,000 570,938
Hughes Supply Inc. ......................... 13,000 476,125
Pacific Sunwear of California Inc. (a) ..... 18,000 630,000
Sunglass Hut International Inc. (a) ........ 55,000 608,438
-----------
3,900,276
Savings & Loans -- 2.45%
Commercial Federal Corp. ................... 20,000 632,500
Semiconductors -- 2.31%
Photronics Inc. (a) ........................ 27,000 595,688
Software -- 9.74%
Avid Technology Inc. (a) ................... 20,000 670,000
Cerner Corp. (a) ........................... 24,000 679,500
INSpire Insurance Solutions Inc. (a) ....... 20,000 665,000
Medical Manager Corp. (a) .................. 18,000 497,250
-----------
2,511,750
Textiles -- 2.19%
Interface Inc. ............................. 28,000 565,250
-----------
Total Common Stocks
(cost $21,507,354) ..................... 23,546,056
-----------
Principal
Amount
------
Short Term Investments -- 8.72%
Money Market Funds -- 8.72%
SSgA Money Market Fund, 5.35% (b) ......... $ 1,125,072 1,125,072
See notes to the financial statements.
<PAGE>
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Money Market Funds (continued)
SSgA Government Money Market
Fund,5.37% (b) ............................. $ 1,125,072 $ 1,125,072
-----------
Total Short Term Investments
(cost $2,250,144) ...................... 2,250,144
-----------
Total Investments -- 100%
(cost $23,757,498) ......................... $25,796,200
===========
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
<PAGE>
JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 95.69%
Australia -- 4.22%
Banks -- 1.02%
Westpac Banking Corp. Ltd. ................. 8,300 $ 50,749
Building Materials -- 0.60%
Pioneer International Ltd. ................. 12,600 30,113
Insurance -- 0.85%
QBE Insurance Group Ltd. ................... 12,000 42,459
Media -- 1.75%
News Corp. Ltd. ............................ 10,700 87,542
-----------
Total Australia ........................... 210,863
Austria -- 0.24%
Electrical Components & Equipment-- 0.24%
Elektrim SA ................................ 1,000 12,189
Belgium -- 0.49%
Oil & Gas Producers -- 0.49%
PetroFina SA ............................... 60 24,644
Denmark -- 2.45%
Computers -- 0.81%
Olicom A/S (a) ............................. 1,500 40,614
Food -- 0.54%
Danisco A/S ................................ 400 26,902
Telecommunications -- 1.10%
GN Store Nord A/S .......................... 1,800 55,026
-----------
Total Denmark ............................. 122,542
Finland -- 1.74%
Forest Products & Paper -- 0.66%
UPM-Kymmene Oyj ............................ 1,200 33,059
Pharmaceuticals -- 0.49%
Orion-Yhtyma OY (a) ........................ 800 24,667
Telecommunications -- 0.59%
Nokia Oyj "A" .............................. 400 29,447
-----------
Total Finland ............................. 87,173
France -- 15.84%
Auto Manufacturers -- 0.78%
PSA Peugeot Citroen ........................ 180 38,705
Banks -- 1.66%
Societe Generale ........................... 400 83,167
Building Materials -- 0.49%
Compagnie de Saint Gobain .................. 131 24,290
Market
Shares Value
------ -----
Common Stocks (continued)
France (continued)
Chemicals -- 2.44%
Air Liquide ................................ 256 $ 42,344
Rhodia SA (a) .............................. 2,853 79,563
-----------
121,907
Commercial Services -- 2.50%
Vivendi .................................... 585 124,921
Cosmetics & Personal Care -- 1.01%
Christian Dior SA .......................... 400 50,350
Diversified Financial Services -- 1.28%
Paribas .................................... 600 64,210
Food -- 0.89%
Carrefour Supermarche ...................... 70 44,288
Holding Companies - Diversified -- 0.50%
Lagardere S.C.A ............................ 600 24,980
Insurance -- 0.63%
Union des Assurnces Federales SA ........... 200 31,527
Oil & Gas Producers -- 2.27%
Elf Aquitaine SA ........................... 405 56,942
Total SA ................................... 435 56,554
-----------
113,496
Pharmaceuticals -- 0.82%
Sanofi SA .................................. 350 41,161
Semiconductors -- 0.57%
ST Microelectronics NV ..................... 400 28,351
-----------
Total France .............................. 791,353
Germany -- 11.64%
Apparel -- 1.05%
Adidas-Salomon AG .......................... 300 52,316
Banks -- 3.14%
Deutsche Bank AG ........................... 950 80,384
Dresdner Bank AG ........................... 1,420 76,770
-----------
157,154
Chemicals -- 0.98%
Bayer AG ................................... 500 25,895
SGL Carbon AG .............................. 200 23,311
-----------
49,206
Electric -- 1.78%
RWE AG (a) ................................. 1,500 88,830
Insurance -- 1.79%
Muenchener Rueckversicherungs-
Gesellschaft AG (a) ..................... 180 89,429
See notes to the financial statements.
<PAGE>
JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Germany (continued)
Manufacturing -- 1.35%
VEBA AG .................................... 1,000 $ 67,288
Pharmaceuticals -- 0.94%
Schering AG ................................ 400 47,132
Software -- 0.61%
SAP AG ..................................... 50 30,358
-----------
Total Germany ............................. 581,713
Hong Kong -- 2.28%
Banks -- 0.64%
Dao Heng Bank Group Ltd. ................... 22,500 31,944
Holding Companies - Diversified -- 0.32%
Hutchison Whampoa Ltd. ..................... 3,000 15,836
Real Estate -- 1.32%
Henderson Land Development Co. Ltd.......... 20,000 65,953
-----------
Total Hong Kong ........................... 113,733
Italy -- 0.89%
Telecommunications -- 0.89%
Telecom Italia SpA - RNC (a) ............... 9,210 44,605
Japan -- 11.30%
Auto Manufacturers -- 0.71%
Honda Motor Co. Ltd. ....................... 1,000 35,727
Banks -- 1.62%
Bank of Fukuoka Ltd. ....................... 10,000 37,607
Mitsui Trust & Banking Co. Ltd. ............ 7,000 16,555
Sanwa Bank Ltd. ............................ 3,000 26,926
-----------
81,088
Building Materials -- 0.52%
Tostem Corp. ............................... 2,000 26,007
Chemicals -- 0.62%
Sekisui Chemical Co. Ltd. .................. 6,000 30,809
Computers -- 0.85%
Fujitsu Ltd. ............................... 4,000 42,236
Electronics -- 3.10%
Fanuc Ltd. ................................. 1,000 34,715
Mitsubishi Corp. ........................... 11,000 68,417
Sony Corp. ................................. 600 51,855
-----------
154,987
Machinery -- 0.58%
Tadano Ltd. ................................ 10,000 28,929
Market
Shares Value
------ -----
Common Stocks (continued)
Japan (continued)
Pharmaceuticals -- 1.37%
Takeda Chemical Industries ................. 1,000 $ 26,687
Yamanouchi Pharmaceutical Co. .............. 2,000 41,802
Ltd ........................................
-----------
68,489
Semiconductors -- 0.74%
Tokyo Ohka Kogyo Co. Ltd. .................. 1,300 37,043
Telecommunications -- 1.19%
DDI Corp. .................................. 17 59,384
-----------
Total Japan ............................... 564,699
Mexico -- 0.86%
Diversified Financial Services -- 0.86%
Grupo Financiero Banamex Accival
SA "B" (a) .............................. 22,000 42,847
Netherlands -- 5.01%
Banks -- 1.34%
ING Groep NV ............................... 1,020 66,824
Commercial Services -- 0.45%
Vedior NV .................................. 789 22,331
Electronics -- 1.13%
Philips Electronics NV ..................... 669 56,278
Food -- 0.53%
De Boer Unigro NV .......................... 500 26,442
Media -- 0.27%
Wolters Kluwer NV (a) ...................... 100 13,735
Retail -- 0.60%
Vendex NV .................................. 800 30,107
Semiconductors -- 0.69%
ASM Lithography Holding NV (a) ............. 1,169 34,620
-----------
Total Netherlands ......................... 250,337
New Zealand -- 0.49%
Forest Products & Paper -- 0.49%
Fletcher Challenge Paper ................... 21,800 24,275
Norway -- 0.88%
Engineering & Construction -- 0.88%
Kvaerner Plc ............................... 1,300 44,099
Philippines -- 0.05%
Electric -- 0.05%
First Philippine Holdings Corp. (a) ........ 3,500 2,350
Portugal -- 1.37%
Banks -- 0.63%
Banco Totta & Acores SA .................... 1,030 31,240
See notes to the financial statements.
<PAGE>
JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Portugal (continued)
Telecommunications -- 0.74%
Portugal Telecom SA ......................... 700 $ 37,124
-----------
Total Portugal ............................ 68,364
South Africa -- 1.81%
Banks -- 0.37%
ABSA Group Ltd. ............................. 3,000 18,718
Holding Companies - Diversified -- 0.74%
Anglo American Corp. of South ............... 300 10,118
Africa Ltd. .................................
South African Breweries Ltd. ................ 1,300 26,745
-----------
36,863
Metals & Mining -- 0.43%
Anglogold Ltd. ............................. 424 17,089
Eastvaal Gold Holding Ltd. (a) ............. 4,900 4,462
-----------
21,551
Retail -- 0.27%
Edgars Stores Ltd. ......................... 1,500 13,280
-----------
Total South Africa ........................ 90,412
Spain -- 2.57%
Electric -- 1.59%
Iberdrola SA ............................... 4,900 79,564
Engineering & Construction -- 0.66%
Actividades de Construccion y ............... 1,100 33,032
Servicios SA
Iron & Steel -- 0.32%
Acerinox SA ................................ 120 15,979
-----------
Total Spain ............................... 128,575
Sweden -- 2.42%
Health Care -- 0.51%
Incentive AB (a) ........................... 1,400 25,451
Insurance -- 1.03%
Skandia Forsakrings AB ..................... 3,600 51,454
Retail -- 0.88%
Vendex International ....................... 2,800 44,057
-----------
Total Sweden .............................. 120,962
Switzerland -- 8.16%
Banks -- 2.83%
Union Bank of Switzerland .................. 380 141,531
Engineering & Construction -- 0.74%
ABB AG ..................................... 25 36,980
Food -- 1.93%
Nestle SA .................................. 45 96,460
Market
Shares Value
------ -----
Common Stocks (continued)
Switzerland (continued)
Insurance -- 1.28%
Zurich Versicherungs-Gesellschaft (a) ...... 100 $ 63,924
Pharmaceuticals -- 1.38%
Roche Holding AG ........................... 7 68,854
-----------
Total Switzerland ......................... 407,749
Turkey -- 0.24%
Banks -- 0.24%
Yapi ve Kredi Bankasi AS ................... 466,100 11,902
United Kingdom -- 12.85%
Auto Parts & Equipment -- 0.84%
LucasVarity Plc ............................ 10,500 41,726
Banks -- 1.37%
Lloyds TSB Group Plc ....................... 4,900 68,602
Food -- 0.73%
Tate & Lyle Plc ............................ 4,606 36,550
Health Care -- 0.83%
Smith & Nephew Plc ......................... 16,500 41,256
Household Products -- 1.34%
Unilever Plc ............................... 6,300 67,113
Insurance -- 1.03%
Royal & Sun Alliance Insurance Group Plc..... 5,000 51,719
Metals & Mining -- 0.46%
Billiton Plc ............................... 11,300 22,924
Oil & Gas Producers -- 1.23%
Shell Transport & Trading Co. Plc........... 8,700 61,301
Pharmaceuticals -- 1.98%
SmithKline Beecham Plc ..................... 4,600 56,184
Zeneca Group Plc ........................... 1,000 42,944
-----------
99,128
Telecommunications -- 1.71%
Cable & Wireless Plc ....................... 3,600 43,760
Vodafone Group Plc (a) ..................... 3,300 41,903
-----------
85,663
Water -- 1.33%
Wessex Water Plc ........................... 8,700 66,240
-----------
Total United Kingdom ...................... 642,222
United States -- 7.89%
Auto Parts & Equipment -- 1.54%
Autolive Inc. - ADR ........................ 2,403 76,827
Banks -- 0.94%
Uniao de Bancos Brasileiros SA - GDR........ 1,600 47,200
See notes to the financial statements.
<PAGE>
JNL/JPM INTERNATIONAL & EMERGING MARKETS SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Beverages -- 0.25%
Panamerican Beverages Inc. ................. 400 $ 12,575
Electric -- 0.43%
Companhia de Energetic Sao Paulo - ADR...... 1,100 9,615
Compania Paranaense de Energia
Copel -ADR ................................. 1,300 12,025
-----------
21,640
Food -- 0.36%
Companhia Brasileira de
Distribuicao
Grupo Pao de Acucar - ADR ............... 800 18,100
Iron & Steel -- 0.22%
Pohang Iron & Steel Co. Ltd. - ADR (a) ..... 900 10,800
Media -- 0.30%
Central European Media ..................... 700 15,137
Enterprises Ltd (a)
Oil & Gas Producers -- 0.74%
LUKoil Holding - ADR ....................... 300 10,029
YPF SA - ADR ............................... 900 27,056
-----------
37,085
Pharmaceuticals -- 0.31%
Ranbaxy Laboratories Ltd. - GDR ............ 1,000 15,350
Telecommunications -- 2.02%
Philippine Long Distance
Telephone Co. - ADR ........................ 600 13,575
Telecomunicacoes Brasileiras SA - ADR ..... 465 50,772
Telefonos de Mexico SA - ADR ............... 760 36,528
-----------
100,875
Transportation -- 0.78%
Evergreen Marine Corp. - GDR (a) ........... 1,854 14,299
Stolt-Nielsen SA - ADR ..................... 1,417 24,620
-----------
38,919
-----------
Total United States ....................... 394,508
-----------
Total Common Stocks
(cost $4,880,289) ...................... 4,782,116
-----------
Market
Shares Value
------ -----
Preferred Stocks -- 1.16%
Austria -- 0.65%
Banks -- 0.65%
Bank Austria AG ............................ 400 $ 32,505
Germany -- 0.51%
Auto Manufacturers --0.51%
Volkswagen AG .............................. 37 25,522
-----------
Total Preferred Stocks
(cost $48,744) ......................... 58,027
-----------
Principal
Amount
------
Corporate Bonds -- 1.71%
Japan -- 0.34%
Diversified Financial Services -- 0.34%
MTI Capital Ltd., (144a), 0.50%,
10/01/2007 .............................. $ 3,000,000 17,195
United Kingdom -- 0.90%
Food -- 0.90%
Compass Group Plc, 5.75%, .................. 15,000 44,605
10/05/2007
United States -- 0.47%
Holding Companies - Diversified -- 0.47%
Beijing Enterprise Investment
Ltd., (144a),
0.50%, 03/31/2003 ....................... 29,000 23,726
-----------
Total Corporate Bonds
(cost $ 76,956) ........................ 85,526
-----------
Short Term Investments -- 1.44%
Money Market Fund -- 1.44%
SSgA Money Market Fund, 5.35% (b)........... 71,822 71,822
-----------
Total Short Term Investments
(cost $71,822) ......................... 71,822
-----------
Total Investments -- 100%
(cost $5,077,841) .......................... $4,997,491
===========
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
<PAGE>
JNL/PIMCO TOTAL RETURN BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Principal Market
Amount Value
------ -----
Corporate Bonds -- 2.69%
Tobacco -- 2.69%
Philip Morris Cos. Inc., 6.15%,
03/15/2000 .............................. $ 100,000 $ 9,998
Total Corporate Bonds
(cost $100,014) ........................ 99,998
-----------
U.S. Government Securities -- 46.29%
U.S. Government Agencies -- 32.54%
Federal Home Loan Mortgage Corp.,
7.00%, 05/15/2023 ......................... 1,140,716 1,211,792
U.S. Treasury Bonds -- 13.75%
6.75%, 08/15/2026 ......................... 250,000 286,210
6.625%, 02/15/2027 ........................ 200,000 225,844
-----------
512,054
-----------
Total U.S. Government
Securities
(cost $1,649,966) ...................... 1,723,846
-----------
Short Term Investments -- 51.02%
Beverages -- 2.68%
Coca-Cola Co., 5.48%, 07/02/1998 ........... 100,000 99,985
Chemicals -- 2.68%
E.I. du Pont de Nemours & Co.,
5.50%, 07/14/1998 .......................... 100,000 99,801
Diversified Financial Services -- 10.66%
Ford Motor Credit Co., 5.53%,
08/14/1998 .............................. 100,000 99,324
KFW International Finance Inc.,
5.50%, 07/01/1998 ....................... 100,000 100,000
National Rural Utilities
Cooperative Finance Corp.,
5.50%, 09/03/1998........................ 100,000 99,022
New Center Asset Trust, 5.54%,
09/21/1998 .............................. 100,000 98,738
-----------
397,084
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Electric -- 2.67%
Florida Power Corp., 5.54%,
08/13/1998 ................................. $ 100,000 $ 99,338
Electronics -- 2.65%
Motorola Inc., 5.50%, 09/24/1998 ........... 100,000 98,701
Manufacturing -- 2.68%
General Electric Capital Corp.,
5.50%, 07/24/1998 .......................... 100,000 99,649
Money Market Funds -- 1.58%
SSgA Money Market Fund, 5.35%, (a).......... 58,652 58,652
Pharmaceuticals -- 2.69%
Abbott Laboratories, 5.49%,
07/02/1998 .............................. 100,000 99,985
Sovereign -- 2.68%
Export Development Corp., 5.49%,
07/02/1998 .............................. 100,000 99,924
U.S. Government Agencies -- 20.05%
Federal Home Loan Mortgage Corp.
Discount Notes
5.48%, 07/22/1998 ......................... 150,000 149,521
5.44%, 07/31/1998 ......................... 500,000 497,733
Federal National Mortgage
Association
Discount Note, 5.45%, 08/14/1998......... 100,000 99,334
-----------
746,588
-----------
Total Short Term Investments
(cost $1,899,707) ......................... 1,899,707
-----------
Total Investments -- 100%
(cost $3,649,687) .......................... $3,723,551
===========
- -----------------------------------------------
(a) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30,1998.
See notes to the financial statements.
<PAGE>
JNL/PUTNAM GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 97.72%
Advertising -- 0.89%
Interpublic Group Cos. Inc. ................ 20,100 $ 1,219,819
Airlines -- 0.84%
AMR Corp. (a) .............................. 13,800 1,148,850
Apparel -- 0.61%
Jones Apparel Group Inc. (a) ............... 22,800 833,625
Banks -- 5.98%
BankAmerica Corp. .......................... 36,300 3,137,680
Chase Manhattan Corp. ...................... 14,700 1,109,850
Comerica Inc. .............................. 19,800 1,311,750
Fifth Third Bancorp ........................ 16,350 1,030,050
J.P. Morgan & Co. Inc. ..................... 4,500 527,063
Norwest Corp. .............................. 17,100 639,113
SouthTrust Corp. .......................... 9,950 432,825
-----------
8,188,331
Beverages -- 1.16%
Coca-Cola Enterprises Inc. ................. 40,600 1,593,550
Building Materials --0.94%
Masco Corp. ................................ 21,400 1,294,700
Commercial Services -- 1.70%
Cendant Corp. (a) .......................... 78,800 1,644,950
Quintiles Transnational Corp.(a)............ 13,800 678,788
-----------
2,323,738
Computers -- 3.11%
Cisco Systems Inc. (a) ..................... 19,400 1,786,013
Dell Computer Corp. (a) .................... 8,900 826,031
EMC Corp. (a) .............................. 36,900 1,653,581
-----------
4,265,625
Cosmetics & Personal Care -- 3.59%
Colgate-Palmolive Co. ...................... 15,500 1,364,000
Estee Lauder Cos. Inc. ..................... 16,200 1,128,938
Procter & Gamble Co. ....................... 26,700 2,431,368
-----------
4,924,306
Diversified Financial Services -- 6.33%
American Express Co. ....................... 25,800 2,941,200
Associates First Capital Corp. ............. 8,800 676,500
Federal Home Loan Mortgage Corp. ........... 34,900 1,642,481
MBNA Corp. ................................. 44,000 1,452,000
Morgan Stanley Dean Witter & Co. ........... 21,400 1,955,425
-----------
8,667,606
Environmental Control -- 0.82%
USA Waste Services Inc. (a) ................ 22,800 1,125,750
Food -- 1.73%
Safeway Inc. (a) ........................... 35,300 1,436,269
Sara Lee Corp. ............................. 16,800 939,750
-----------
2,376,019
Market
Shares Value
------ -----
Common Stocks (continued)
Health Care -- 0.85%
HEALTHSOUTH Corp. (a) ...................... 43,400 $ 1,158,238
Holding Companies - Diversified -- 0.91%
TCI Ventures Group (a) ..................... 62,300 1,249,894
Household Products -- 0.55%
Clorox Co. ................................. 7,900 753,463
Insurance -- 7.24%
American International Group Inc ........... 15,800 2,306,800
Conseco Inc. ............................... 23,900 1,117,325
Equitable Cos. Inc. ........................ 19,100 1,431,306
SunAmerica Inc. ............................ 20,900 1,200,444
Travelers Group Inc. ....................... 63,700 3,861,813
-----------
9,917,688
Leisure Time -- 1.25%
Carnival Corp. ............................. 43,400 1,719,725
Lodging --0.52%
Marriott International Inc. ................ 22,300 721,963
Machinery -- 1.21%
Ingersoll-Rand Co. ......................... 37,500 1,652,344
Manufacturing -- 6.24%
General Electric Co. ....................... 43,500 3,958,500
Tyco International Ltd. .................... 73,000 4,599,000
-----------
8,557,500
Media -- 5.55%
CBS Corp. .................................. 64,600 2,051,050
Gannett Co. Inc. ........................... 36,500 2,593,781
Tele-Communications Inc. ................... 41,700 1,602,844
Time Warner Inc. ........................... 15,900 1,358,456
-----------
7,606,131
Office & Business Equipment -- 0.84%
Pitney Bowes Inc. .......................... 23,800 1,145,375
Oil & Gas Producers -- 1.94%
Cooper Cameron Corp. (a) ................... 9,900 504,900
Exxon Corp. ................................ 21,100 1,504,694
Western Atlas Inc. (a) ..................... 7,600 645,050
-----------
2,654,644
Packaging & Containers -- 0.50%
Owens-Illinois Inc. (a) .................... 15,400 689,150
Pharmaceuticals -- 11.68%
Bristol-Myers Squibb Co. ................... 22,700 2,609,080
Cardinal Health Inc. ....................... 12,700 1,190,625
Eli Lilly & Co. ............................ 25,500 1,684,594
McKesson Corp. ............................. 4,700 381,875
Merck & Co. Inc. ........................... 10,900 1,457,875
Pfizer Inc. ................................ 24,400 2,651,974
See notes to the financial statements.
<PAGE>
JNL/PUTNAM GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Pharmaceuticals (continued)
Schering-Plough Corp. ...................... 27,400 $ 2,510,525
Warner-Lambert Co. ......................... 50,700 3,517,312
-----------
16,003,860
Retail -- 12.08%
Costco Cos. Inc. (a) ....................... 41,100 2,591,868
CVS Corp. .................................. 74,200 2,889,163
Dayton Hudson Corp. ........................ 41,300 2,003,050
Fred Meyer Inc. (a) ........................ 12,000 510,000
Home Depot Inc. ............................ 18,800 1,561,575
Office Depot Inc. (a) ...................... 19,000 599,688
TJX Companies Inc. ......................... 60,800 1,466,800
Wal-Mart Stores Inc. ....................... 55,100 3,347,325
Walgreen Co. ............................... 38,300 1,582,269
-----------
16,551,738
Software -- 10.26%
America Online Inc. ........................ 9,700 1,028,200
BMC Software Inc. .......................... 43,900 2,280,056
Computer Associates ........................ 33,300 1,850,231
International Compuware Corp. (a) .......... 21,800 1,114,525
HBO & Co. .................................. 54,800 1,931,700
Microsoft Corp. ............................ 37,200 4,031,550
Parametric Technology Corp. (a) ............ 29,400 797,475
PeopleSoft Inc. (a) ........................ 21,700 1,019,900
-----------
14,053,637
Telecommunications -- 8.40%
AirTouch Communications Inc. (a) ........... 20,300 1,186,281
AT&T Corp. ................................. 31,600 1,805,150
Lucent Technologies Inc. ................... 36,200 3,011,387
Market
Shares Value
------ -----
Common Stocks (continued)
Telecommunications (continued)
Northern Telecom Ltd. ...................... 15,200 $ 862,600
Sprint Corp. ............................... 26,500 1,868,250
Tellabs Inc. (a) ........................... 20,000 1,432,500
WorldCom Inc. (a) .......................... 27,800 1,346,563
-----------
11,512,731
-----------
Total Common Stocks
(cost $103,676,402) .................... 133,910,000
-----------
Principal
Amount
------
Short Term Investments -- 2.28%
Money Market Fund -- 0.00%
SSgA Money Market Fund, 5.35% (b) .......... $ 991 991
Repurchase Agreements -- 2.28%
Repurchase Agreement with Swiss
Bank,5.80% (Collateralized by
$1,965,000 U.S. Treasury Bond,
13.25%, due 05/15/2014, market
value $3,147, 832) acquired on
06/30/1998, due 07/01/1998 .............. 3,122,000 3,122,000
-----------
Total Short Term Investments
(cost $3,122,991) ...................... 3,122,991
-----------
Total Investments -- 100%
(cost $106,799,393) ........................ $137,032,991
============
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
<PAGE>
JNL/PUTNAM VALUE EQUITY SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 98.05%
Aerospace & Defense -- 0.84%
Boeing Co. ................................. 31,005 $ 1,381,660
Airlines -- 0.59%
UAL Corp. (a) .............................. 12,400 967,200
Auto Manufacturers -- 1.05%
Ford Motor Company ......................... 29,185 1,721,915
Auto Parts & Equipment -- 3.05%
Dana Corp. ................................. 31,535 1,687,123
Goodyear Tire & Rubber Co. ................. 31,530 2,031,714
Lear Corp. (a) ............................. 25,100 1,287,944
-----------
5,006,781
Banks -- 12.48%
BankBoston Corp. ........................... 31,160 1,733,274
Bankers Trust Corp. ........................ 11,550 1,340,522
Chase Manhattan Corp. ...................... 2,600 196,429
Citicorp ................................... 19,100 2,850,674
Crestar Financial Corp. .................... 15,985 872,182
First Chicago NBD Corp. .................... 21,320 1,889,484
Firstar Corp. .............................. 15,890 603,820
Fleet Financial Group Inc. ................. 11,965 999,078
Hibernia Corp. ............................. 17,160 346,418
J.P. Morgan & Co. Inc. ..................... 12,380 1,450,008
KeyCorp .................................... 34,010 1,211,606
Mercantile Bancorporation Inc. ............. 14,410 725,904
National City Corp. ........................ 19,350 1,373,850
PNC Bank Corp. ............................. 30,500 1,641,281
Summit Bancorp ............................. 12,275 583,063
Union Planters Corp. ....................... 13,855 814,847
Wells Fargo & Co. .......................... 5,080 1,874,520
-----------
20,506,960
Beverages -- 2.12%
PepsiCo Inc. ............................... 39,665 1,633,702
Whitman Corp. .............................. 80,670 1,850,368
-----------
3,484,070
Chemicals -- 2.72%
E.I. du Pont de Nemours & Co. .............. 30,255 2,257,778
Eastman Chemical Co. ....................... 19,850 1,235,663
Witco Corp. ................................ 33,470 978,998
-----------
4,472,439
Computers -- 4.13%
Hewlett-Packard Co. ........................ 28,360 1,698,055
International Business Machines Corp ....... 24,435 2,805,444
NCR Corp. (a) .............................. 31,630 1,027,975
Seagate Technology Inc. (a) ................ 52,655 1,253,847
-----------
6,785,321
Cosmetics & Personal Care -- 1.81%
Colgate-Palmolive Co. ...................... 17,880 1,573,440
Kimberly-Clark Corp. ....................... 30,570 1,402,399
-----------
2,975,839
Market
Shares Value
------ -----
Common Stocks (continued)
Diversified Financial Services -- 2.37%
American Express Co. ....................... 10,300 $ 1,174,200
Federal National Mortgage Association ...... 23,650 1,436,737
Merrill Lynch & Co. Inc. ................... 13,850 1,277,663
-----------
3,888,600
Electric -- 2.10%
Duke Energy Corp. .......................... 22,590 1,338,458
Texas Utilities Co. ........................ 50,765 2,113,093
-----------
3,451,551
Electrical Components & Equipment -- 0.82%
Emerson Electric Co. ....................... 22,210 1,340,929
Food -- 3.90%
General Mills Inc. ......................... 18,725 1,280,322
H.J. Heinz Co. ............................. 35,965 2,018,535
Quaker Oats Co. ............................ 31,390 1,724,488
Sara Lee Corp. ............................. 24,630 1,377,741
-----------
6,401,086
Forest Products & Paper -- 1.29%
Boise Cascade Corp. ........................ 37,880 1,240,570
International Paper Co. .................... 20,400 877,200
-----------
2,117,770
Health Care -- 2.28%
Baxter International Inc. .................. 40,380 2,172,949
Johnson & Johnson .......................... 21,415 1,579,356
-----------
3,752,305
Household Products -- 0.78%
Clorox Co. ................................. 13,440 1,281,840
Insurance -- 5.98%
Allstate Corp. ............................. 16,740 1,532,756
American General Corp. ..................... 26,675 1,898,926
Aon Corp. .................................. 26,955 1,893,589
CIGNA Corp. ................................ 25,680 1,771,920
Equitable Cos. Inc. ........................ 18,500 1,386,344
Travelers Group Inc. ....................... 22,125 1,341,328
-----------
9,824,863
Leisure Time -- 0.86%
Hasbro Inc. ................................ 36,085 1,418,592
Machinery -- 2.02%
Caterpillar Inc. ........................... 7,595 401,586
Deere & Co. ................................ 25,345 1,340,117
Ingersoll-Rand Co. ......................... 35,845 1,579,420
-----------
3,321,123
Manufacturing - 3.67%
Cooper Industries Inc. ..................... 29,510 1,621,206
Eastman Kodak Co. .......................... 23,485 1,715,872
Eaton Corp. ................................ 15,340 1,192,685
See notes to the financial statements.
<PAGE>
JNL/PUTNAM VALUE EQUITY SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Manufacturing (continued)
Minnesota Mining & Manufacturing Co. ....... 18,240 $ 1,499,100
-----------
6,028,863
Media -- 3.75%
McGraw-Hill Cos. Inc. ..................... 16,125 1,315,195
MediaOne Group Inc. (a) .................... 43,.440 1,908,645
Times Mirror Co. ........................... 25,480 1,602,055
Viacom Inc. "B" (a) ........................ 22,995 1,339,459
-----------
6,165,354
Office & Business Equipment -- 3.31%
Pitney Bowes Inc. .......................... 28,330 1,363,381
Xerox Corp. ................................ 40,085 4,073,638
-----------
5,437,019
Oil & Gas Producers -- 10.29%
Amoco Corp. ................................ 40,500 1,685,813
Atlantic Richfield Co. ..................... 19,320 1,509,375
British Petroleum Co. Plc. - ADR ........... 24,275 2,142,268
Coastal Corp. .............................. 19,325 1,349,127
Cooper Cameron Corp. ....................... 17,625 898,875
Elf Aquitaine SA - ADR ..................... 23,935 1,699,385
Exxon Corp. ................................ 28,645 2,042,747
Kerr-McGee Corp. ........................... 30,240 1,750,140
Mobil Corp. ................................ 20,200 1,547,825
Sonat Inc. ................................. 28,375 1,095,984
Tosco Corp. ................................ 40,600 1,192,625
-----------
16,914,164
Packaging & Containers -- 1.35%
Owens-Illinois Inc. (a) .................... 49,635 2,221,166
Pharmaceuticals -- 7.77%
American Home Products Corp. ............... 55,070 2,849,873
Bristol-Myers Squibb Co. ................... 27,440 3,153,885
Merck & Co. Inc. ........................... 23,500 3,143,125
Pharmacia & Upjohn Inc. .................... 78,635 3,627,039
-----------
12,773,922
Real Estate -- 0.73%
Starwood Hotels & Resorts .................. 24,993 1,207,474
Retail -- 4.47%
J.C. Penney Co. ............................ 21,635 1,564,481
Kmart Corp. (a) ............................ 81,745 1,573,591
McDonald's Corp. ........................... 28,015 1,933,036
Sears, Roebuck & Co. ....................... 19,605 1,197,130
Toys "R" Us Inc. ........................... 45,570 1,073,743
-----------
7,341,981
Market
Shares Value
------ -----
Common Stocks (continued)
Savings & Loans -- 0.73%
H.F. Ahmanson & Co. ........................ 1,605 $ 113,955
Washington Mutual Inc. ..................... 25,000 1,085,938
-----------
1,199,893
Semiconductors -- 2.36%
Texas Instruments Inc. ..................... 66,475 3,876,323
Software -- 0.74%
Computer Associates ........................ 21,985 1,221,542
International Inc. .........................
Telecommunications -- 6.45%
Ameritech Corp. ............................ 35,455 1,591,043
AT&T Corp. ................................. 37,630 2,149,614
GTE Corp. .................................. 27,705 1,541,091
SBC Communications Inc. .................... 49,500 1,980,000
Sprint Corp. ............................... 23,700 1,670,850
U S West Inc. .............................. 35,408 1,664,175
-----------
10,596,773
Tobacco -- 1.24%
Philip Morris Cos. Inc. .................... 51,565 2,030,372
-----------
Total Common Stocks
(cost $151,398,717) .................... 161,115,690
-----------
Principal
Amount
------
Short Term Investments -- 1.95%
Money Market Fund -- 0.00%
SSgA Money Market Fund, 5.35% (b) .......... $ 208 208
Repurchase Agreements -- 1.95%
Repurchase Agreement with Swiss
Bank, 5.80% (Collateralized by
$2,020,000 U.S. Treasury Bond, 13.25%,
due 05/15/2014, market value
$3,235,939) acquired on
06/30/1998, due 07/01/1998 ............... 3,210,000 3,210,000
-----------
Short Term Investments
(cost $3,210,208) ...................... 3,210,208
-----------
Total Investments -- 100%
(cost $154,608,925) ........................ $164,325,898
============
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
See notes to the financial statements.
<PAGE>
GOLDMAN SACHS/JNL GROWTH & INCOME SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 88.32%
Aerospace & Defense -- 8.72%
Boeing Co. ................................. 1,200 $ 53,475
Lockheed Martin Corp. ...................... 1,200 127,050
Raytheon Co. ............................... 1,800 103,725
-----------
284,250
Auto Parts & Equipment -- 4.85%
Goodyear Tire & Rubber Co. ................. 1,100 70,881
Lear Corp. (a) ............................. 1,700 87,231
-----------
158,112
Banks -- 8.61%
Chase Manhattan Corp. ...................... 1,400 105,700
NationsBank Corp. .......................... 1,300 99,450
Republic New York Corp. .................... 1,200 75,525
-----------
280,675
Chemicals -- 5.19%
IMC Global Inc. ............................ 1,900 57,238
Union Carbide Corp. ........................ 2,100 112,088
-----------
169,326
Computers -- 6.07%
Quantum Corp. (a) .......................... 6,100 126,575
Seagate Technology Inc. (a) ................ 3,000 71,438
-----------
198,013
Electric -- 4.33%
Energy Corp. ............................... 2,600 74,750
Unicom Corp. ............................... 1,900 66,619
-----------
141,369
Engineering & Construction -- 3.28%
Fluor Corp. ................................ 2,100 107,100
Food -- 0.54%
Supervalu Inc. ............................. 400 17,750
Forest Products & Paper -- 2.71%
Georgia-Pacific Group ...................... 1,500 88,405
Health Care -- 4.29%
Foundation Health Systems Inc. ............. 2,100 55,388
(a)
Tenet Healthcare Corp. (a) ................. 2,700 84,375
-----------
139,763
Insurance -- 14.12%
Aetna Inc. ................................. 1,900 144,638
American General Corp. ..................... 1,100 78,306
Market
Shares Value
------ -----
Common Stocks (continued)
Insurance (continued)
CIGNA Corp. ................................ 1,800 $ 124,200
Loews Corp. ................................ 1,300 113,263
-----------
460,407
Iron & Steel -- 1.49%
Ispat International NV - NYS ............... 2,600 48,750
Oil & Gas Products -- 8.31%
Enron Corp. ................................ 1,400 75,687
Texaco Inc. ................................ 1,600 95,500
Tosco Corp. ................................ 3,400 99,875
-----------
271,062
Retail -- 2.25%
Sears, Roebuck & Co. ....................... 1,200 73,274
Tobacco -- 8.96%
Philip Morris Cos. Inc. .................... 2,700 106,313
RJR Nabisco Holdings Corp. ................. 5,200
123,500
UST Inc. ................................... 2,300 62,100
-----------
291,913
Transportation -- 4.60%
Canadian Pacific Ltd. ...................... 3,300 93,637
FDX Corp. (a) .............................. 900 56,475
-----------
150,112
-----------
Total Common Stocks
(cost $3,028,801) ...................... 2,880,281
-----------
Principal
Amount
------
Short Term Investments -- 11.68%
Money Market Fund -- 0.03%
SSgA Money Market Fund, 5.35% (b) .......... $ 837 837
Repurchase Agreements -- 11.65%
Repurchase Agreement with State
Street
Bank, 2.00% (Collateralized by
$370,000 U.S. Treasury Bond,
6.625%, due 07/31/2001,
market value $390,737)
acquired on 06/30/1998,
due 07/01/1998 ........................... 380,000 380,000
-----------
Total Short Term Investments
(cost $380,837) ........................ 380,837
-----------
Total Investments -- 100%
(cost $3,409,638) .......................... $ 3,261,118
===========
- ----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
See notes to the financial statements.
<PAGE>
LAZARD/JNL SMALL CAP VALUE SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 96.78%
Apparel -- 0.27%
Stride Rite Corp. .......................... 900 $ 13,555
Auto Parts & Equipment -- 3.03%
Borg-Warner Automotive Inc. ................ 1,200 57,675
Dura Automotive Systems Inc. (a) ........... 600 19,275
Tower Automotive Inc. (a) .................. 1,700 72,888
-----------
149,838
Banks -- 0.80%
HUBCO Inc. ................................. 1,100 39,393
Building Materials -- 1.24%
Apogee Enterprises Inc. .................... 4,000 61,250
Chemicals -- 1.62%
A. Schulman Inc. ........................... 1,900 37,169
Ferro Corp. ................................ 1,700 43,031
-----------
80,200
Commercial Services -- 2.20%
Budget Group Inc. (a) ...................... 800 25,550
CDI Corp. (a) .............................. 900 24,075
Pittston Brink's Group ..................... 1,600 59,000
-----------
108,625
Computers -- 5.92%
Anixter International Inc. (a) ............. 3,800 72,438
Bell & Howell Co. (a) ...................... 2,400 61,950
Data General Corp. (a) ..................... 2,000 29,875
Electronics for Imaging Inc. (a) ........... 1,600 33,800
Komag Inc. (a) ............................. 3,900 20,841
Stratus Computer Inc. (a) .................. 1,200 30,375
Wang Laboratories Inc. (a) ................. 1,700 43,244
-----------
292,523
Distribution & Wholesale -- 0.44%
Unisource Worldwide Inc. ................... 2,000 21,624
Diversified Financial Services -- 0.94%
AMRESCO Inc. (a) ........................... 1,600 46,600
Electric -- 2.47%
Calpine Corp. (a) .......................... 3,700 74,694
Sierra Pacific Resources ................... 1,300 47,206
-----------
121,900
Electrical Components & Equipment -- 1.41%
Belden Inc. ................................ 1,000 30,625
Scotsman Industries Inc. ................... 1,400 38,850
-----------
69,475
Electronics -- 4.82%
BMC Industries Inc. ........................ 2,500 21,875
Credence Systems Corp. (a) ................. 2,300 43,700
Market
Shares Value
------ -----
Common Stocks (continued)
Electronics (continued)
Flextronics International Ltd.(a) .......... 600 $ 26,100
KEMET Corp. (a) ............................ 2,300 30,259
Oak Industries Inc. (a) .................... 1,700 60,138
Watts Industries Inc. ...................... 2,700 56,363
-----------
238,435
Food -- 0.33%
Vlasic Foods International Inc. (a) ........ 800 16,100
Forest Products & Paper -- 0.38%
Rock-Tenn Co. .............................. 1,500 18,843
Furniture & Appliances -- 0.59%
Dorel Industries Inc. (Canada) (a) ......... 900 29,051
Hand & Machine Tools -- 0.81%
Regal-Beloit Corp. ......................... 1,400 39,900
Health Care -- 9.02%
Apria Healthcare Group Inc. (a) ............ 5,200 34,775
Integrated Health Services Inc. (a) ........ 1,900 71,250
Magellan Health Services Inc. (a) .......... 2,900 73,588
Oakley Inc. (a) ............................ 3,900 52,163
Sierra Health Services Inc. (a) ............ 3,150 79,341
Sun Healthcare Group Inc. (a) .............. 2,500 36,563
Sunrise Medical Inc. (a) ................... 3,000 45,000
West Co. Inc. .............................. 1,900 53,794
-----------
446,474
Holding Companies - Diversified -- 1.00%
Walter Industries Inc. (a) ................. 2,600 49,237
Home Builders -- 2.64%
Kaufman & Broad Home Corp. ................. 2,300 73,025
Toll Brothers Inc. (a) ..................... 2,000 57,375
-----------
130,400
Home Furnishings -- 3.62%
Bassett Furniture Industries Inc............ 1,800 50,738
Furniture Brands International Inc. (a)..... 2,100 58,931
Harman International Industries Inc ........ 1,800 69,300
-----------
178,969
Household Products -- 0.81%
Gibson Greetings Inc. (a) .................. 1,600 40,000
Insurance -- 5.98%
Amerin Corp. (a) ........................... 2,000 58,375
CMAC Investment Corp. ...................... 500 30,750
Delphi Financial Group Inc. (a) ............ 406 22,863
E. W. Blanch Holdings Inc. ................. 1,600 58,800
Frontier Insurance Group Inc. .............. 1,760 39,710
HCC Insurance Holdings Inc. ................ 2,300 50,600
Horace Mann Educators Corp. ................ 1,000 34,500
-----------
295,598
See notes to the financial statements.
<PAGE>
LAZARD/JNL SMALL CAP VALUE SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Iron & Steel -- 1.09%
Reliance Steel & Aluminum Co. .............. 1,400 $ 54,074
Leisure Time -- 1.14%
Polaris Industries Inc. .................... 1,500 56,437
Lodging -- 0.78%
Prime Hospitality Corp. (a) ................ 2,200 38,362
Machinery -- 5.69%
Albany International Corp. ................. 2,010 48,114
Briggs & Stratton Corp. .................... 1,400 52,413
JLG Industries Inc. ........................ 3,000 60,750
MagneTek Inc. (a) .......................... 2,500 39,375
OmniQuip International Inc. ................ 1,100 20,350
United Dominion Industries Ltd. ............ 1,800 60,075
-----------
281,077
Manufacturing -- 5.66%
ACX Technologies Inc. (a) .................. 2,100 45,675
Aeroquip-Vickers Inc. ...................... 600 35,025
Crane Co. .................................. 1,500 72,844
Mark IV Industries Inc. .................... 3,300 71,363
Roper Industries Inc. ...................... 2,100 54,863
-----------
279,770
Media -- 3.30%
Banta Corp. ................................ 2,400 74,100
Bowne & Co. Inc. ........................... 1,200 54,000
World Color Press Inc. (a) ................. 1,000 35,000
-----------
163,100
Metals & Mining -- 0.69%
Wyman-Gordon Co. (a) ....................... 1,700 33,894
Office & Business Equipment -- 0.69%
Danka Business Systems Plc - ADR ........... 2,900 34,255
Oil & Gas Producers -- 5.11%
Barrett Resources Corp. (a) ................ 1,900 71,131
Devon Energy Corp. ......................... 1,600 55,900
Helmerich & Payne Inc. ..................... 2,300 51,175
Tuboscope Inc. (a) ......................... 900 17,775
Vintage Petroleum Inc. ..................... 3,000 56,625
-----------
252,606
Packaging & Containers -- 1.45%
First Brands Corp. ......................... 2,800 71,750
Market
Shares Value
------ -----
Common Stocks (continued)
Pharmaceuticals -- 1.16%
Perrigo Co. (a) ............................ 5,700 $ 57,355
Real Estate -- 2.30%
Chateau Communities Inc. ................... 1,200
34,500
Glenborough Realty Trust Inc. .............. 1,300 34,287
Kilroy Realty Corp. ........................ 1,800 45,000
-----------
113,787
Retail -- 8.13%
AnnTaylor Stores Corp. (a) ................. 2,100 44,494
Cole National Corp. (a) .................... 1,100 44,000
Eagle Hardware & Garden Inc. (a) ........... 2,900 67,063
Footstar Inc. (a) .......................... 1,500 72,000
Hughes Supply Inc. ......................... 900 32,963
Lone Star Steakhouse & Saloon Inc. (a) ..... 1,900 26,244
Ryan's Family Steak Houses Inc.(a) ......... 5,900 60,475
Wet Seal Inc. .............................. 1,700 54,400
-----------
401,639
Savings & Loans -- 1.11%
Long Island Bancorp Inc. ................... 900 54,675
Semiconductors -- 2.63%
Lam Research Corp. (a) ..................... 1,900 36,338
Silicon Valley Group Inc. (a) .............. 2,900 46,581
VLSI Technology Inc. (a) ................... 2,800 46,988
-----------
129,907
Telecommunications -- 1.88%
Allen Telecom Inc. (a) ..................... 3,600 41,850
Vanguard Cellular Systems Inc. (a).......... 2,700 50,963
-----------
92,813
Textiles -- 0.19%
Mohawk Industries Inc. (a) ................. 300 9,506
Tobacco -- 0.31%
Swisher International Group Inc.(a) ........ 1,900 15,200
Transportation -- 3.13%
Circle International Group Inc. ............ 2,100 58,800
CNF Transportation Inc. .................... 1,300 55,250
Pittston BAX Group ......................... 2,600 40,463
-----------
154,513
-----------
Total Common Stocks
(cost $5,030,390) ...................... 4,782,710
-----------
See notes to the financial statements.
<PAGE>
LAZARD/JNL SMALL CAP VALUE SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Short Term Investments -- 3.22%
Money Market Fund -- 0.02%
SSgA Money Market Fund, 5.35% (b) .......... $ 997 $ 997
Repurchase Agreements -- 3.20%
Repurchase Agreement with State
Street Bank, 2.00% (Collateralized
by $155,000 U.S. Treasury Bond,
6.625%, due 07/31/2001, market
value $163,687) acquired on
06/30/1998, due 07/01/1998 ............... 158,000 158,000
-----------
Total Short Term Investments
(cost $158,997) ........................ 158,997
-----------
Total Investments -- 100%
(cost $5,189,387) .......................... $4,941,707
==========
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
See notes to the financial statements.
<PAGE>
LAZARD/JNL MID CAP VALUE SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 90.20%
Aerospace & Defense -- 3.56%
Gulfstream Aerospace Corp. ................. 1,900 $ 88,350
Litton Industries Inc. (a) ................. 1,400 82,600
-----------
170,950
Apparel -- 5.57%
Gucci Group NV - NYS ....................... 1,800 95,400
Liz Claiborne Inc. ......................... 1,500 78,375
Warnaco Group .............................. 2,200 93,363
-----------
267,138
Auto Parts & Equipment -- 3.35%
Borg-Warner Automotive Inc. ................ 1,600 76,900
Meritor Automotive Inc. .................... 3,500 84,000
-----------
160,900
Banks -- 4.57%
Firstar Corp. .............................. 1,700 64,600
North Fork Bancorporation Inc. ............. 3,450 84,309
Union Planters Corp. ....................... 1,200 70,575
-----------
219,484
Building Materials -- 2.10%
Johns Manville Corp. ....................... 6,700 100,919
Commerical Services -- 3.60%
H&R Block Inc. ............................. 2,000 84,250
Pittston Brink's Group ..................... 2,400 88,500
-----------
172,750
Computers -- 3.52%
NCR Corp. .................................. 2,900 94,250
Quantum Corp. .............................. 3,600 74,700
-----------
168,950
Diversified Financial Services -- 5.27%
CIT Group Inc. ............................. 2,200 82,500
Heller Financial Inc. ...................... 3,200 96,000
Waddell & Reed Financial Inc. .............. 3,100 74,206
-----------
252,706
Electric -- 6.99%
Illinova Corp. ............................. 3,100 93,000
IPALCO Enterprises Inc. .................... 900 39,994
Niagara Mohawk Power Corp. (a) ............. 7,000 104,563
NIPSCO Industries Inc. ..................... 3,500 98,000
-----------
335,557
Energy - Alternate Sources -- 1.25%
CalEnergy Co. Inc. ......................... 2,000 60,124
Forest Products & Paper -- 1.80%
Temple-Inland Inc. ......................... 1,600 86,200
Health Care -- 3.45%
Foundation Health Systems Inc. ............. 2,200 58,025
Mallinckrodt Inc. .......................... 2,500 74,219
Market
Shares Value
------ -----
Common Stocks (continued)
Health Care (continued)
St. Jude Medical Inc. ...................... 900 $ 33,131
-----------
165,375
Household Products -- 1.24%
Dial Corp. ................................. 2,300 59,656
Insurance -- 5.50%
Old Republic International Corp. ........... 2,850 83,541
Reliance Group Holdings Inc. ............... 5,200 91,000
Scor SA - ADR .............................. 1,400 89,250
-----------
263,791
Iron & Steel -- 2.82%
Carpenter Technology Corp. ................. 1,500 75,375
Ispat International NV - NYS ............... 3,200 60,000
-----------
135,375
Leisure Time -- 1.31%
Callaway Golf Co. .......................... 3,200 63,000
Machinery -- 2.48%
AGCO Corp. ................................. 2,500 51,406
Briggs & Stratton Corp. .................... 1,800 67,388
-----------
118,794
Manufacturing -- 2.93%
Crane Co. .................................. 1,200 58,275
Mark IV Industries Inc. .................... 3,800 82,175
-----------
140,450
Media -- 3.83%
E.W. Scripps Co. ........................... 1,600 87,700
Hearst-Argyle Television Inc. .............. 2,400 96,000
-----------
183,700
Oil & Gas Producers -- 7.31%
Cooper Cameron Corp. ....................... 1,700 86,700
Enron Oil & Gas Co. ........................ 4,100 83,025
Noble Affiliates Inc. ...................... 2,100 79,800
R&B Falcon Corp. ........................... 4,500 101,813
-----------
351,338
Real Estate -- 1.22%
Mack-Cali Realty Corp. ..................... 1,700 58,438
Retail -- 6.67%
CompUSA Inc. ............................... 4,300 77,669
Consolidated Stores Corp. .................. 2,300 83,375
Proffitts Inc. ............................. 1,700 68,638
Tandy Corp. ................................ 1,700 90,206
-----------
319,888
Savings & Loans -- 1.84%
Sovereign Bancorp Inc. ..................... 5,400 88,255
See notes to the financial statements.
<PAGE>
LAZARD/JNL MID CAP VALUE SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Semiconductors -- 3.10%
Advanced Micro Devices Inc. ................ 2,400 $ 40,950
Lam Research Corp. ......................... 3,100 59,288
LSI Logic Corp. ............................ 2,100 48,431
-----------
148,669
Software -- 1.29%
Autodesk Inc. .............................. 1,600 61,800
Telecommunications -- 1.77%
Frontier Corp. ............................. 2,700 85,050
Transportation -- 1.86%
CNF Transportation Inc. .................... 2,100 89,250
-----------
Total Common Stocks
(cost $4,477,363) ...................... 4,328,507
-----------
Principal Market
Amount Value
------ -----
Short Term Investments -- 9.80%
Money Market Fund -- 0.00%
SSgA Money Market Fund, 5.35% (b) ......... $ 180 $ 180
Repurchase Agreements -- 9.80%
Repurchase Agreement with State
Street Bank, 2.00% (Collateralized by
$455,000 U.S. Treasury Bond,
6.625%,due 07/31/2001, market value
$480,500), acquired on 06/30/1998, due
07/01/1998 .............................. 470,000 470,000
-----------
Total Short Term Investments
(cost $470,180) ........................ 470,180
-----------
Total Investments -- 100%
(cost $4,947,543) .......................... $ 4,798,687
===========
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
quoted yield as of June 30, 1998.
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL BALANCED SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 49.64%
Aerospace & Defense -- 1.79%
Lockheed Martin Corp. ...................... 7,900 $ 836,413
United Technologies Corp. .................. 7,100 656,750
-----------
1,493,163
Apparel -- 1.83%
Liz Claiborne Inc. ......................... 15,900 830,775
VF Corp. ................................... 13,600 700,400
-----------
1,531,175
Auto Manufacturers -- 1.99%
Ford Motor Co. ............................. 15,000 885,000
General Motors Corp. ....................... 11,700 781,706
-----------
1,666,706
Auto Parts & Equipment -- 1.78%
ITT Industries Inc. ........................ 17,400 650,325
TRW Inc. ................................... 15,300 835,763
-----------
1,486,088
Banks -- 4.15%
BankAmerica Corp. .......................... 4,900 423,544
Chase Manhattan Corp. ...................... 13,000 981,499
KeyCorp .................................... 22,700 808,688
Mellon Bank Corp. .......................... 6,200 431,675
NationsBank Corp. .......................... 10,800 826,200
-----------
3,471,606
Beverages -- 0.85%
Anheuser-Busch Cos. Inc. ................... 15,000 707,813
Chemicals -- 2.01%
Dow Chemical Co. ........................... 8,300 802,506
Rohm & Haas Co. ............................ 8,400 873,075
-----------
1,675,581
Computers -- 1.59%
Adaptec Inc. (a) ........................... 28,000 400,750
International Business Machines Corp ....... 8,100 929,980
-----------
1,330,730
Electric -- 3.02%
FirstEnergy Corp. .......................... 26,700 821,025
GPU Inc. ................................... 22,600 854,563
PECO Energy Co. ............................ 29,100 849,356
-----------
2,524,944
Electronics -- 0.99%
Parker-Hannifin Corp. ...................... 21,700 827,313
Forest Products & Paper -- 0.73%
Mead Corp. ................................. 19,300 612,774
Health Care -- 1.00%
Columbia/HCA Healthcare Corp. .............. 28,800 838,800
Coram Healthcare Corp. (a) ................. 33 64
-----------
838,864
Market
Shares Value
------ -----
Common Stocks (continued)
Insurance -- 5.01%
Aetna Inc. ................................. 7,200 $ 548,100
American Financial Group Inc. .............. 11,200 485,100
American General Corp. ..................... 12,000 854,250
CIGNA Corp. ................................ 12,000 828,000
Hartford Financial Services Group Inc. ..... 7,700 880,687
Transamerica Corp. ......................... 5,100 587,138
-----------
4,183,275
Iron & Steel -- 0.99%
Nucor Corp. ................................ 18,000 828,000
Leisure Time -- 1.48%
Brunswick Corp. ............................ 27,500 680,625
Hasbro Inc. ................................ 14,100 554,306
-----------
1,234,931
Manufacturing -- 1.69%
Cooper Industries Inc. ..................... 10,000 549,375
PPG Industries Inc. ........................ 12,400 862,575
-----------
1,411,950
Metals & Mining -- 0.96%
Phelps Dodge Corp. ......................... 14,000 800,625
Office & Business Equipment -- 1.53%
Harris Corp. ............................... 18,300 817,781
Xerox Corp. ................................ 4,500 457,313
-----------
1,275,094
Oil & Gas Producers -- 3.96%
Ashland Inc. ............................... 14,300 738,237
Chevron Corp. .............................. 9,800 814,013
Occidental Petroleum Corp. ................. 36,000 972,000
Phillips Petroleum Co. .................... 16,200 780,638
-----------
3,304,888
Retail -- 1.76%
Federated Department Stores Inc.(a) ........ 12,300 661,894
Kmart Corp. (a) ............................ 41,900 806,575
-----------
1,468,469
Savings & Loans -- 0.94%
Charter One Financial Inc. ................. 23,300 784,918
Telecommunications -- 5.76%
AT&T Corp. ................................. 10,400 594,100
Bell Atlantic Corp. ........................ 17,200 784,750
GTE Corp. .................................. 13,900 773,188
SBC Communications Inc. .................... 21,300 852,000
Sprint Corp. ............................... 12,100 853,050
U S West Inc. .............................. 20,300 954,100
-----------
4,811,188
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL BALANCED SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Tobacco -- 1.91%
Philip Morris Cos. Inc. .................... 22,000 $ 866,250
RJR Nabisco Holdings Corp. ................. 30,900 733,875
-----------
1,600,125
Transportation -- 1.92%
Burlington Northern Santa Fe Corp .......... 8,100 795,319
CSX Corp. .................................. 17,800 809,900
-----------
1,605,219
-----------
Total Common Stocks
(cost $ 36,608,697) .................... 41,475,439
-----------
Principal
Amount
------
Corporate Bonds -- 14.34%
Aerospace & Defense -- 0.36%
K & F Industries Inc., 9.25%,
10/15/2007 .............................. $ 300,000 303,000
Building Materials -- 0.37%
Brand Scaffold Services Inc.,
(144a), 10.25%, 02/15/2008 .............. 300,000 306,000
Chemicals -- 0.71%
Laroche Industries Inc., 9.50%,
09/15/2007 .............................. 300,000 292,500
PCI Chemicals Canada Inc., 9.25%,
10/15/2007 .............................. 300,000 297,000
-----------
589,500
Commercial Services -- 0.72%
Rental Service Corp., (144a),
9.00%, 5/15/2008 ........................ 300,000 299,250
Universal Compression Holdings Inc.,
(144a), (Step-Up Bond),
11.375%,
02/15/2009 (c) .......................... 500,000 301,875
-----------
601,125
Cosmetics & Personal Care -- 0.37%
Revlon Worldwide Corp., Zero
Coupon, 03/15/2001 ......................... 400,000 311,000
Distribution & Wholesale -- 0.36%
United Stationers Inc., (144a),
8.375%, 04/15/2008.......................... 300,000 300,000
Diversified Financial Services -- 0.39%
PX Escrow Corp., (144a),
(Step-Up Bond), 9.625%, 02/01/2006 (c) ..... 450,000 324,000
Electrical Components & Equipment -- 0.36%
Wyman-Gordon Co., 8.00%,
12/15/2007 ................................. 300,000 304,500
Electronics -- 0.36%
Hadco Corp., (144a), 9.50%,
06/15/2008 ................................. 300,000 297,000
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
Entertainment -- 0.38%
Rio Hotel & Casino Inc., 9.50%,
04/15/2007 .............................. $ 300,000 $ 318,000
Environmental Control -- 0.93%
Allied Waste Industries Inc.,
(Step-Up
Bond), 11.30%,06/01/2007 (c) ............ 500,000 367,500
Marsulex Inc., (144a), 9.625%,
07/01/2008 .............................. 400,000 406,500
-----------
774,000
Forest Products & Paper -- 0.02%
Buckeye Technologies Inc.,
(144a),
9.25%, 09/15/2008 ....................... 15,000 15,750
Health Care -- 0.36%
Universal Hospital Services
Inc., (144a),
10.25%, 03/01/2008 ...................... 300,000 300,000
Holding Companies - Diversified -- 1.16%
Elgar Holdings Inc., (144a),
9.875%, 02/01/2008 ...................... 300,000 277,500
First Nationwide Holdings Inc.,
10.625%,10/01/2003 ...................... 300,000 339,000
Knology Holdings Inc., (Step-Up
Bond), 11.875%, 10/15/2007 (c) .......... 600,000 354,000
-----------
970,500
Home Builders -- 0.36%
D.R. Horton Inc., 8.375%,
06/15/2004 ................................. 300,000 301,500
Machinery -- 0.35%
Terex Corp., (144a), 8.875%,
04/01/2008 ................................. 300,000 294,750
Manufacturing -- 0.75%
Burke Industries Inc., 10.00%,
08/15/2007 ................................. 300,000 301,500
Simmons Co., 10.75%, 04/15/2006 ............ 300,000 321,000
-----------
622,500
Media -- 1.24%
Capstar Broadcasting Corp.,
(144a), (Step- Up Bond), 12.75%,
02/01/2009 (c) .......................... 500,000 380,000
Century Communications Corp.,
9.50%, 08/15/2000 ....................... 250,000 261,250
FrontierVision Holdings LP,
(Step-Up Bond), 11.875%, 09/15/2007 (c) . 500,000 395,000
-----------
1,036,250
Oil & Gas Producers -- 0.67%
Parker Drilling Co., 9.75%,
11/15/2006 ................................. 300,000 307,500
Pogo Producing Co., 8.75%,
05/15/2007 ................................. 250,000 253,750
-----------
561,250
Packaging & Containers -- 1.12%
Riverwood International Corp.,
10.625%, 08/01/2007 ........................ 300,000 312,000
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL BALANCED SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
Packaging & Containers (continued)
Stone Container Corp., 12.25%,
04/01/2002 .............................. $ 300,000 $ 310,500
U.S. Can Corp., 10.125%,
10/15/2006 .............................. 300,000 315,750
-----------
938,250
Retail -- 1.08%
Eye Care Centers of America
Inc., (144a),
9.76%, 05/01/2008 (d) ................... 300,000 296,250
Finlay Fine Jewelry Corp.,
8.375%, 05/01/2008 ...................... 300,000 300,750
Specialty Retailers Inc., 8.50%,
07/15/2005 .............................. 300,000 307,500
-----------
904,500
Telecommunications -- 1.22%
Focal Communications Corp.,
(144a), (Step-Up Bond),
12.125%, 02/15/2008 (c) ................. 600,000 364,500
Metronet Communications Corp.,
12.00%, 08/15/2007 ....................... 300,000 345,000
Rogers Cantel Inc., 9.375%, 06/01/2008 ..... 300,000 312,000
-----------
1,021,500
Transportation -- 0.70%
Gulfmark Offshore, (144a), 8.75%,
06/01/2008 .............................. 300,000 291,000
Ultrapetrol Ltd., (144a), 10.50%,
04/01/2008 .............................. 300,000 294,000
-----------
585,000
-----------
Total Corporate Bonds
(cost $11,827,024) ..................... 11,979,875
-----------
U.S. Government Securities -- 34.89%
U. S. Government Agencies -- 14.57%
Federal Home Loan Mortgage Corp.
6.00%, 05/01/2001 ......................... 346,389 345,966
6.50%, 05/01/2001 ......................... 573,743 577,334
6.00%, 07/01/2001 ......................... 458,535 458,338
6.75%, 06/15/2004 ......................... 560,840 571,176
8.00%, 09/01/2011 ......................... 912,947 943,239
7.50%, 11/01/2011 ......................... 912,324 939,693
6.50%, 04/01/2012 ......................... 691,357 696,971
7.00%, 01/01/2013 ......................... 1,008,616 1,027,779
8.00%, 10/01/2024 ......................... 728,473 753,736
7.50%, 11/01/2024 ......................... 746,714 765,381
6.50%, 02/01/2027 ......................... 499,940 498,530
7.50%, 03/01/2027 ......................... 660,734 677,094
6.50%, 12/01/2027 ......................... 487,043 485,743
Federal National Mortgage
Association,
7.50%, 04/01/2012 ....................... 608,433 625,238
Principal Market
Amount Value
------ -----
U.S. Government Securities
(continued)
U.S. Government Agencies (continued)
Government National Mortgage
Association
6.50%, 04/15/2026 ......................... $1,041,257 $ 1,040,278
7.50%, 07/15/2027 ......................... 495,939 509,939
8.00%, 02/15/2028 ......................... 727,806 754,189
7.00%, 05/15/2028 ......................... 499,607 507,566
-----------
12,178,190
U.S. Treasury Bonds -- 5.87%
6.25%, 08/15/2023 ......................... 3,000,000 3,211,860
6.625%, 02/15/2027 ........................ 200,000 225,844
U.S. Treasury Strip - Interest
only
5.785%, 11/15/2017 ........................ 800,000 265,024
U.S. Treasury Strip - Principal
only
5.735%, 05/15/2016 ........................ 600,000 218,412
5.77%, 11/15/2016 ......................... 1,950,000 685,737
5.72%, 11/15/2024 ......................... 1,300,000 293,774
-----------
4,900,651
U.S. Treasury Notes -- 14.45%
5.875%, 08/15/1998 ........................ 400,000 400,188
6.375%, 01/15/1999 ........................ 2,250,000 2,261,610
6.875%, 07/31/1999 ........................ 1,700,000 1,723,647
6.125%, 07/31/2000 ........................ 1,400,000 1,416,618
6.25%, 08/31/2000 ......................... 1,700,000 1,724,973
6.125%, 09/30/2000 ........................ 700,000 708,638
6.25%, 10/31/2001 ......................... 1,000,000 1,020,780
6.25%, 02/15/2003 ......................... 1,300,000 1,337,778
5.875%, 11/15/2005 ........................ 1,450,000 1,477,637
-----------
12,071,869
-----------
Total U.S. Government
Securities
(cost $28,601,731) ..................... 29,150,710
-----------
Warrants -- 0.00%
Holding Companies-Diversified -- 0.00%
Knology Holdings Inc. ...................... 600 1,200
Telecommunications -- 0.00%
Metronet Communications Corp. .............. 300 1,200
-----------
Total Warrants
(cost $144) ............................ 2,400
-----------
Short Term Investments -- 1.13%
Commercial Paper -- 1.11%
Household Financial Corp.,
5.95%, 07/01/1998 .......................... 925,000 925,000
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL BALANCED SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Money Market Fund -- 0.02%
SSgA Money Market Fund, 5.35%,
(b) ........................................ $ 22,348 $ 22,348
-----------
Total Short Term Investments
(cost $947,348) ........................ 947,348
-----------
Total Investments -- 100.00%
(cost $77,984,944) ......................... $83,555,772
===========
- -----------------------------------------------
(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, 1998.
(c) Denotes deferred interest security that receives no current coupon payments
until a predetermined date at which time the stated coupon rate becomes
effective.
(d) Coupon is indexed to 6 month Libor. Rate stated is in effect as of June 30,
1998.
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL HIGH YIELD BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Principal Market
Amount Value
------ -----
Corporate Bonds -- 96.87%
Aerospace & Defense -- 1.16%
K&F Industries Inc., 9.25%,
10/15/2007 ................................. $ 1,100,000 $ 1,111,000
Apparel -- 1.50%
Pillowtex Corp., 10.00%,
11/15/2006 ................................. 1,330,000 1,436,400
Building Materials -- 2.14%
Brand Scaffold Services Inc.,
(144a), 10.25%, 02/15/2008 ................. 2,000,000 2,040,000
Chemicals -- 4.08%
Laroche Industries Inc., 9.50%,
09/15/2007 .............................. 2,000,000 1,950,000
PCI Chemicals Canada Inc., 9.25%,
10/15/2007 .............................. 1,965,000 1,945,350
-----------
3,895,350
Commercial Services -- 5.31%
Neff Corp., (144a), 10.25%,
06/01/2008 ................................. 1,965,000 2,020,000
Rental Service Corp., (144a),
9.00%, 05/15/2008 .......................... 2,000,000 1,995,000
Universal Compression Holdings
Inc., (144a), (Step-Up Bond),
02/15/2009, 11.375% (a) ................ 1,750,000 1,056,563
-----------
5,071,563
Cosmetics & Personal Care -- 1.57%
Chattem Inc., (144a), 8.875%,
04/01/2008 ................................. 1,000,000 995,000
Revlon Worldwide Corp., Zero Coupon,
03/15/2001 .............................. 650,000 505,375
-----------
1,500,375
Diversified Financial Services -- 0.57%
PX Escrow Corp., (144a),
(Step-Up Bond),
9.625%, 02/01/2006 (a) .................. 750,000 540,000
Electrical Components & Equipment -- 2.14%
Communications Instruments Inc.,
10.00%, 09/15/2004 ...................... 2,000,000 2,040,000
Electronics -- 2.07%
Hadco Corp., (144a), 9.50%,
06/15/2008 ................................. 2,000,000 1,980,000
Engineering & Construction -- 2.10%
Schuff Steel Co., (144a), 10.50%,
06/01/2008 .............................. 2,000,000 2,005,000
Entertainment -- 5.53%
Harvey Casinos Resorts, 10.625%,
06/01/2006 .............................. 200,000 221,500
Rio Hotel & Casino Inc., 9.50%,
04/15/2007 .............................. 1,600,000 1,696,000
Sun International Hotels Ltd.
8.625%, 12/15/2007 ........................ 1,300,000 1,339,000
9.00%, 03/15/2007 ......................... 500,000 523,750
United Artists Theatre Circuit
Inc., (144a),
9.75%, 04/15/2008 ......................... 1,500,000 1,496,250
-----------
5,276,500
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
Environmental Control -- 2.74%
Marsulex Inc., (144a), 9.625%,
07/01/2008 .............................. $ 2,000,000 $ 2,032,500
Norcal Waste Systems Inc.,
(Step-Up Bond), 13.25%, 11/15/2005 (d) .... 500,000 585,000
-----------
2,617,500
Health Care -- 1.78%
Universal Hospital Services
Inc., (144a), 10.25%, 03/01/2008 ........... 1,700,000 1,700,000
Holding Companies-Diversified -- 5.40%
Elgar Holdings Inc., (144a),
9.875%,02/01/2008 .......................... 2,400,000 2,220,000
First Nationwide Holdings Inc.,
10.625%,10/01/2003 ......................... 1,700,000 1,921,000
Knology Holdings Inc., (Step-Up
Bond), 11.875%, 10/15/2007 (a) ............. 1,700,000 1,003,000
-----------
5,144,000
Machinery -- 3.40%
Grove Holdings LLC, (144a),
(Step-Up Bond), 11.625%,
05/01/2009 (a) ............................. 2,000,000 1,140,000
W.R. Carpenter North America
Inc., 10.625%, 06/15/2007 .................. 2,000,000 2,105,000
-----------
3,245,000
Manufacturing -- 8.79%
Burke Industries Inc.
(144a), 9.688%, 08/15/2007 ................ 700,000 708,750
10.00%, 08/15/2007 ........................ 1,450,000 1,457,250
Jackson Products Inc., (144a),
9.50%, 04/15/2005 .......................... 2,000,000 1,990,000
Prestolite Electric Inc.,
(144a), 9.625%, 02/1/2008 .................. 2,060,000 2,096,050
Simmons Co., 10.75%, 04/15/2006 ............ 2,000,000 2,140,000
-----------
8,392,050
Media -- 8.95%
Advanstar Communications, (144a),
9.25%, 05/01/2008 ....................... 1,000,000 1,007,500
Capstar Broadcasting Corp.,
(144a), (Step- Up Bond), 12.75%,
02/01/2009 (a) ............................. 1,350,000 1,026,000
Frontiervision Holdings LP,
(Step-Up Bond), 11.875%,
09/15/2007 (a) ............................. 1,300,000 1,027,000
FrontierVision Operating
Partners LP, 11.00%, 10/15/2006 ............ 400,000 443,500
Gray Communications System Inc.,
10.625%, 10/01/2006 ..................... 1,100,000 1,193,500
Jacor Communications Inc., 8.75%,
06/15/2007 .............................. 1,000,000 1,040,000
Price Communications Wireless
Inc., (144a), 9.125%, 12/15/2007 ........... 2,000,000 2,000,000
Rogers Cablesystems Ltd.
9.625%, 08/01/2002 ........................ 650,000 695,500
10.00%, 03/15/2005 ........................ 100,000 111,000
-----------
8,544,000
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL HIGH YIELD BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
Metals & Mining -- 4.18%
Simcala Inc., (144a),
9.625%, 04/15/2006 ......................... $ 2,000,000 $ 1,980,000
Steel Heddle Manufacturing Co., (144a),
10.625%, 06/01/2008 ..................... 2,000,000 2,015,000
-----------
3,995,000
Office & Business Equipment -- 2.13%
General Binding Corp., (144a),
9.375%, 06/01/2008 ......................... 2,000,000 2,035,000
Oil & Gas Producers -- 5.41%
Bayard Drilling Technologies
Inc., (144a),
11.00%, 06/30/2005 ......................... 1,000,000 1,007,500
Chiles Offshore LLC, (144a),
10.00%, 05/01/2008 ......................... 2,500,000 2,418,750
Parker Drilling Co.,
9.75%,11/15/2006 .......................... 1,700,000 1,742,500
-----------
5,168,750
Packaging & Containers -- 4.73%
Huntsman Packaging Corp.,
9.125%, 10/01/2007 ......................... 1,000,000 995,000
Riverwood International Corp.,
10.625%, 08/01/2007 ........................ 1,000,000 1,040,000
Stone Container Corp.,
12.25%, 04/01/2002 ......................... 2,400,000 2,484,000
-----------
4,519,000
Retail -- 5.74%
APCOA Inc., (144a),
9.25%, 03/15/2008 .......................... 1,500,000 1,496,250
Eye Care Centers of America
Inc., (144a),
9.76%, 05/01/2008 (c) ................... 2,000,000 1,975,000
Finlay Enterprises Inc., 9.00%,
05/01/2008 .............................. 2,000,000 2,005,000
-----------
5,476,250
Software -- 1.07%
PSINet Inc., 10.00%, 02/15/2005 ............ 1,000,000 1,020,000
Telecommunications -- 10.90%
Focal Communications Corp.,
(144a), (Step-Up Bond), 12.125%,
02/15/2008 (a) ............................. 1,750,000 1,063,124
Intermedia Communications Inc.
8.875%, 11/01/2007 ........................ 1,000,000 1,022,500
8.50%, 01/15/2008 ......................... 1,400,000 1,403,500
Level 3 Communications Inc.,
(144a), 9.125%, 05/01/2008 ................. 1,000,000 972,500
Long Distance International
Inc., (144a),
12.25%, 04/15/2008 ...................... 2,000,000 2,010,000
Metronet Communications Corp.
12.00%, 08/15/2007 ........................ 1,800,000 2,070,000
(144a), (Step-Up Bond), 9.95%,
06/15/2008 (a) ......................... 1,000,000 616,250
Rogers Cantel Inc.
9.375%, 06/01/2008 ........................ 1,000,000 1,040,000
9.75%, 06/01/2016 ......................... 200,000 209,000
-----------
10,406,874
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
Transportation -- 3.48%
Gulfmark Offshore, (144a), 8.75%,
06/01/2008 .............................. $1,000,000 $ 970,000
Ultrapetrol Ltd., (144a), 10.50%,
04/01/2008 ................................ 2,400,000 2,352,000
-----------
3,322,000
-----------
Total Corporate Bonds
(cost $92,576,154) ..................... 92,481,612
-----------
Shares
------
Common Stocks -- 2.02%
Investment Company-- 2.02%
SPDR Trust ................................. 17,000 1,927,375
-----------
Total Common Stocks
(cost $ 1,903,255) ..................... 1,927,375
-----------
Preferred Stocks -- 0.71%
Media -- 0.71%
CBS Radio Inc. ............................. 5,689 675,569
-----------
Total Preferred Stocks
(cost $572,316) ........................ 675,569
-----------
Rights -- 0.01%
Machinery -- 0.01%
Terex Corp. ................................ 400 8,800
-----------
Total Rights
(cost $831) ............................ 8,800
-----------
Warrants -- 0.01%
Holding Companies - Diversified -- 0.00%
Knology Holdings Inc. ...................... 2,200 4,400
Telecommunications -- 0.01%
Highwaymaster Communications Inc ........... 1,500 3,000
Metronet Communications Corp. .............. 1,300 5,200
-----------
8,200
-----------
Total Warrants
(cost $5,525) ............................ 12,600
-----------
Principal
Amount
------
Short Term Investments -- 0.38%
Diversified Financial Services -- 0.36%
Household Finance Corp., 5.95%,
07/01/1998 .............................. $ 345,000 345,000
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL HIGH YIELD BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Money Market Fund -- 0.02%
SSgA Money Market Fund, 5.35% (b) .......... $ 21,004 $ 21,004
-----------
Total Short Term Investments
(cost $366,004) ........................ 366,004
-----------
Total Investments -- 100%
(cost $95,424,085) ......................... $95,471,960
===========
- -----------------------------------------------
(a) Denotes deferred interest security that receives no current 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 is
the quoted yield as of June 30, 1998.
(c) Coupon is indexed to 6 month Libor. Rate stated is in effect as of June 30,
1998.
(d) Coupon payment periodically increases over the life of the security. Rate
stated is in effect as of June 30, 1998.
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Principal Market
Amount Value
------ -----
Short Term Investments -- 100%
Auto Manufacturers -- 3.56%
General Motors Acceptance Corp. ............
5.54%, 07/03/1998 ......................... $ 725,000 $ 724,777
5.46%, 07/21/1998 ......................... 500,000 498,483
5.51%, 07/24/1998 ......................... 225,000 224,208
5.43%, 11/20/1998 ......................... 500,000 489,291
-----------
1,936,759
Beverages -- 4.40%
PepsiCo Inc., 6.00%, 07/01/1998 ............ 2,105,000 2,105,000
Coca-Cola., 5.55%, 07/09/1998 .............. 290,000 289,642
-----------
2,394,642
Chemicals -- 3.45%
E.I. du Pont de Nemours & Co. ..............
5.45%, 08/27/1998 ......................... 250,000 247,843
5.42%, 10/23/1998 ......................... 658,000 646,707
5.48%, 10/23/1998 ......................... 1,000,000 982,646
-----------
1,877,196
Computers -- 1.19%
International Business Machines
Corp., 5.52%, 07/16/1998 ................... 650,000 648,505
Cosmetics & Personal Care -- 2.66%
Procter & Gamble Co., 5.49%,
09/25/1998 .............................. 1,470,000 1,450,721
Diversified Financial Services -- 48.66%
American Express Credit Corp.
5.48%, 07/27/1998 ......................... 200,000 199,208
5.51%, 07/30/1998 ......................... 200,000 199,112
5.50%, 08/21/1998 ......................... 400,000 396,883
5.52%, 08/27/1998 ......................... 600,000 594,756
Associated Corporation of North
America
5.53%, 07/02/1998 ......................... 650,000 649,900
5.53%, 07/07/1998 ......................... 155,000 154,857
5.47%, 07/09/1998 ......................... 600,000 599,271
5.46%, 08/13/1998 ......................... 650,000 645,761
Beneficial Corp. ...........................
5.51%, 07/13/1998 ......................... 460,000 459,155
5.51%, 08/07/1998 ......................... 1,400,000 1,392,072
5.47%, 08/10/1998 ......................... 350,000 347,873
Chevron UK Investment Plc, 5.48%,
09/25/1998 .............................. 1,800,000 1,776,436
Chrysler Financial Corp.
5.50%, 07/06/1998 ......................... 332,000 331,746
5.46%, 09/09/1998 ......................... 200,000 197,877
5.46%, 10/16/1998 ......................... 250,000 245,943
5.48%, 10/30/1998 ......................... 425,000 417,172
5.48%, 11/20/1998 ......................... 408,000 399,181
CIT Group Inc.
5.47%, 08/14/1998 ......................... 600,000 595,989
5.49%, 09/24/1998 ......................... 705,000 695,861
5.46%, 11/19/1998 ......................... 1,100,000 1,076,477
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Diversified Financial Services
(continued)
Countrywide Home Loans Inc.
5.54%, 07/17/1998 ......................... $ 232,000 $ 231,429
5.53%, 07/21/1998 ......................... 1,100,000 1,096,621
5.55%, 08/25/1998 ......................... 185,000 183,431
5.52%, 08/27/1998 ......................... 300,000 297,378
5.53%, 08/27/1998 ......................... 250,000 247,811
5.53%, 09/03/1998 ......................... 280,000 277,247
Ford Motor Credit Co. .
5.47%, 07/17/1998 ......................... 415,000 413,991
5.51%, 07/24/1998 ......................... 548,000 546,071
5.52%, 07/24/1998 ......................... 700,000 697,961
5.46%, 08/21/1998 ......................... 300,000 297,680
Heller Financial Inc.
5.63%, 07/22/1998 ......................... 178,000 177,415
5.63%, 07/31/1998 ......................... 652,000 648,941
5.65%, 08/17/1998 ......................... 600,000 595,574
5.64%, 09/04/1998 ......................... 1,000,000 989,817
Household Finance Corp.,
5.51%, 07/08/1998 ......................... 800,000 799,143
Merrill Lynch & Co. Inc. ...................
5.50%, 07/01/1998 ......................... 310,000 310,000
5.61%, 07/08/1998 ......................... 500,000 499,455
5.58%, 07/13/1998 ......................... 370,000 369,312
5.53%, 07/15/1998 ......................... 600,000 598,710
5.53%, 07/31/1998 ......................... 105,000 104,516
5.54%, 08/28/1998 ......................... 237,000 234,885
5.49%, 11/20/1998 ......................... 200,000 195,669
Norwest Financial Inc.,
5.52%, 07/15/1998 ......................... 1,900,000 1,895,918
Sears Roebuck Acceptance Corp.
5.56%, 07/29/1998 ......................... 500,000 497,838
5.54%, 07/30/1998 ......................... 355,000 353,416
5.39%, 08/07/1998 ......................... 205,000 203,864
5.51%, 08/18/1998 ......................... 488,000 484,415
5.50%, 10/02/1998 ......................... 500,000 492,896
USAA Capital Corp.
5.38%, 07/14/1998 ......................... 100,000 99,806
5.52%, 07/14/1998 ......................... 300,000 299,402
5.47%, 10/08/1998 ......................... 1,000,000 984,958
-----------
26,501,100
Electric -- 2.87%
Central & Southwest Corp. .................
5.73%, 07/10/1998 ......................... 250,000 249,642
5.72%, 07/29/1998 ......................... 320,000 318,576
5.72%, 08/11/1998 ......................... 320,000 317,915
Florida Power Corp.,
5.51%, 07/22/1998 ......................... 680,000 677,815
-----------
1,563,948
Food -- 6.53%
Campbell Soup Co., 5.51%, 07/22/1998........ 1,000,000 974,642
ConAgra Inc., 5.66%, 07/07/1998 ............ 600,000 599,434
H.J. Heinz Co., 5.52%, 07/27/1998........... 1,000,000 996,013
Hershey Foods Corp., 5.48%, 09/21/1998...... 1,000,000 987,518
-----------
3,557,607
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Insurance -- 2.00%
American General Corp. .....................
5.49%, 07/06/1998 ......................... $ 300,000 $ 299,771
5.51%, 09/11/1998 ......................... 800,000 791,184
-----------
1,090,955
Leisure Time -- 1.96%
Hasbro Inc.
5.62%, 07/08/1998 ......................... 338,000 337,631
5.55%, 08/03/1998 ......................... 735,000 731,260
-----------
1,068,891
Machinery -- 1.44%
Deere & Co., 5.49%, 09/18/1998 ............. 795,000 785,422
Manufacturing -- 4.13%
General Electric Capital Corp.
5.42%, 07/10/1998 ......................... 575,000 574,221
5.51%, 07/24/1998 ......................... 225,000 224,208
5.47%, 07/28/1998 ......................... 200,000 199,180
5.47%, 08/04/1998 ......................... 250,000 248,708
5.59%, 08/04/1998 ......................... 300,000 298,416
5.51%, 12/04/1998 ......................... 225,000 219,628
5.49%, 12/31/1998 ......................... 500,000 486,046
-----------
2,250,407
Media -- 0.98%
Walt Disney Co., 5.33%, 12/18/1998.......... 550,000 536,157
Money Market Fund -- 0.00%
SSgA Money Market Fund, 5.35% (a) .......... 1,107 1,107
Oil & Gas Producers -- 2.38%
Consolidated Natural Gas Co. ...............
5.55%, 07/10/1998 ......................... 500,000 499,306
5.53%, 07/14/1998 ......................... 800,000 798,403
-----------
1,297,709
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Packaging & Containers -- 1.96%
Crown Cork & Seal Co. Inc. .................
5.70%, 07/01/1998 ......................... $ 325,000 $ 325,000
5.72%, 07/10/1998 ......................... 146,000 145,792
5.72%, 08/14/1998 ......................... 275,000 273,077
5.71%, 08/18/1998 ......................... 195,000 193,515
5.77%, 08/18/1998 ......................... 130,000 129,000
-----------
1,066,384
Pharmaceuticals -- 3.93%
American Home Products Corp.,
5.50%, 08/28/1998 .......................... 354,000 350,863
Schering Corp., 5.47%,
07/28/1998 ................................. 1,800,000 1,792,616
-----------
2,143,479
Retail -- 1.20%
J.C. Penney Funding Corp., 5.54%,
08/03/1998 .............................. 655,000 651,674
Telecommunications -- 6.70%
BellSouth Telecomm Inc.
5.49%, 07/24/1998 ......................... 1,250,000 1,245,615
5.49%, 08/12/1998 ......................... 240,000 238,463
GTE Corp.
5.67%, 07/02/1998 ......................... 600,000 599,906
5.55%, 07/07/1998 ......................... 350,000 349,676
5.55%, 07/10/1998 ......................... 220,000 219,695
GTE Funding Inc., 5.55%, 07/02/1998 ....... 1,000,000 996,917
-----------
3,650,272
-----------
Total Investments -- 100%
(cost $54,472,935) ......................... $54,472,935
===========
- -----------------------------------------------
(a) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL BALANCED SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 43.35%
Auto Manufacturers -- 1.58%
Chrysler Corp. ................................ 600 $ 33,824
Banks -- 1.17%
Fleet Financial Group Inc. .................... 300 25,050
Building Materials -- 1.49%
Vulcan Materials Co. .......................... 300 32,005
Chemicals -- 1.60%
Geon Co. ...................................... 1,500 34,405
Cosmetics & Personal Care -- 1.80%
Avon Products Inc. ............................ 500 38,750
Electric -- 1.65%
Edison International .......................... 1,200 35,474
Engineering & Construction -- 1.11%
Stone & Webster Inc. .......................... 600 23,772
Food -- 2.92%
Hormel Foods Corp. ............................ 800 27,650
Ralson Purina Group ........................... 300 35,044
-----------
62,694
Forest Products & Paper -- 1.08%
Weyerhaeuser Co. .............................. 500 23,094
Health Care -- 1.63%
Bausch & Lomb Inc. ............................ 700 35,088
Insurance -- 4.76%
Allstate Corp. ................................ 200 18,313
Chubb Corp. ................................... 200 16,075
CIGNA Corp. ................................... 500 34,500
Marsh & McLennan Cos. Inc. .................... 550 33,241
-----------
102,129
Manufacturing -- 1.28%
Cooper Industries Inc. ........................ 500 27,468
Oil & Gas Producers -- 5.74%
Amerada Hess Corp. ............................ 400 21,312
Amoco Corp. ................................... 600 24,975
Exxon Corp. ................................... 500 35,656
Schlumberger Ltd. ............................. 300 20,494
Suncor Energy Inc. ............................ 600 20,850
-----------
123,287
Pharmaceuticals -- 1.69%
American Home Products Corp. .................. 700 36,226
Real Estate -- 5.01%
Crescent Real Estate Equities Co .............. 800 26,900
Excel Realty Trust Inc. ....................... 1,200 34,575
Market
Shares Value
------ -----
Common Stocks (continued)
Real Estate (continued)
Glenborough Realty Trust Inc. ................. 900 $ 23,738
JDN Realty Corp. .............................. 700 22,313
-----------
107,526
Retail -- 1.70%
Sears, Roebuck & Co. .......................... 600 36,638
Telecommunications -- 3.28%
BCE Inc. ...................................... 900 38,419
SBC Communications Inc. ....................... 800 32,000
-----------
70,419
Tobacco -- 1.10%
Philip Morris Cos. Inc. ....................... 600 23,626
Transportation -- 2.76%
Canadian National Railway Co. ................. 700 37,188
Union Pacific Corp. ........................... 500 22,063
-----------
59,251
-----------
Total Common Stocks
(cost $937,200) ........................... 930,726
-----------
Preferred Stocks -- 1.87%
Diversified Financial Services -- 1.87%
BTI Capital Trust ............................. 400 17,050
Union Pacific Capital Trust ................... 500 23,188
-----------
Total Preferred Stocks
(cost $ 44,650) ........................... 40,238
-----------
Principal
Amount
---------
Corporate Bonds -- 6.71%
Aerospace & Defense -- 0.70%
Raytheon Co., 5.95%, 03/15/2001 . ............ $ 14,944 15,000
Auto Parts & Equipment -- 0.95%
Dana Corp., 6.50%, 03/15/2008 ................. 20,000 20,313
Diversified Financial Services -- 0.48%
Sears Roebuck Acceptance Corp.,
7.00%,
06/15/2007 ................................. 10,000 10,435
Manufacturing -- 0.47%
Norsk Hydro ASA, 6.70%, ....................... 10,000 10,204
01/15/2018
Media -- 0.99%
A.H. Belo Corp., 7.25%, ...................... 20,000 21,202
09/15/2027
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL BALANCED SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
Semiconductors -- 2.18%
Micron Technology Inc., 7.00%,
07/01/2004 ................................. $ 50,000 $ 46,875
Telecommunications -- 0.94%
GTE Corp., 6.94%, 04/15/2028 .................. 20,000 20,156
-----------
Total Corporate Bonds
(cost $142,425) ........................... 144,129
-----------
U.S. Government Securities -- 37.44%
U.S. Treasury Bond -- 4.24%
6.125%, 11/15/2027 ............................ 85,000 91,083
U.S. Treasury Notes -- 33.19%
5.375%, 01/31/2000 ........................... 380,000 379,111
5.625%, 12/31/2002 ........................... 125,000 125,546
6.125%, 08/15/2007 ........................... 200,000 208,094
-----------
712,751
-----------
Total U.S. Government
Securities
(cost $797,899) ........................... 803,834
-----------
Principal Market
Amount Value
------ -----
Asset Backed Securities -- 2.10%
Diversified Financial Services -- 2.10%
Banc One Auto Grantor Trust,
6.29%,
07/20/2004 ................................. $ 24,782 $ 24,964
Contimortgage Home Equity Loan
Trust, 6.13%, 03/15/2013 ................... 20,000 20,041
-----------
Total Asset Backed Securities
(cost $44,910) ............................ 45,005
-----------
Short Term Investments -- 8.53%
Money Market Fund -- 0.01%
SSgA Money Market Fund, 5.35%
(b) ........................................... 310 310
Repurchase Agreements -- 8.52%
Repurchase Agreement with State
Street
Bank, 5.70%, (Collateralized by
$160,000 U.S. Treasury Bond,
7.50%,
due 11/15/2016, market value,
$192,550) acquired on
06/30/1998,
due 07/01/1998 ............................... 183,000 183,000
-----------
Total Short Term Investments
(cost $183,310) ........................... 183,310
-----------
Total Investments -- 100%
(cost $2,150,394) ............................. $ 2,147,242
===========
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
See notes to the financial statements
<PAGE>
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Principal Market
Amount Value
------ -----
Corporate Bonds -- 34.14%
Australia -- 0.05%
Sovereign -- 0.05%
New South Wales Treasury Corp.,
7.375%, 02/21/2007 ......................... $ 40,000 $ 27,102
United States -- 34.09%
Aerospace & Defense -- 0.63%
BE Aerospace Inc., 8.00%, ..................... 250,000 249,375
03/01/2008
Raytheon Co., 5.95%, 03/15/2001 ............... 100,000 99,628
-----------
349,003
Auto Manufacturers -- 0.27%
Navistar International Corp.,
8.00%,
02/01/2008 ................................. 150,000 150,750
Auto Parts & Equipment -- 0.37%
Dana Corp., 6.50%, 03/15/2008
(c) ........................................... 200,000 203,130
Banks -- 1.51%
Bank One Corp., 7.60%, ........................ 600,000 651,060
05/01/2007 (c)
Malayan Banking Berhad - NYS,
7.125%, 09/15/2005 ......................... 210,000 177,658
-----------
828,718
Beverages -- 0.16%
Stroh Brewery Co., 11.10%,
07/01/2026 .................................... 150,000 90,188
Biotechnology -- 0.27%
Packard Bioscience Co., 9.375%,
03/01/2007 ................................. 150,000 145,500
Building Materials -- 0.46%
Nortek Inc., 9.125%, 09/01/2007
(c) ........................................... 250,000 253,750
Chemicals -- 0.36%
Praxair Inc., 6.15%, 04/15/2003 ............... 200,000 200,082
Commercial Services -- 0.75%
Iron Mountain Inc., 10.125%,
10/01/2006 .................................... 150,000 162,750
KinderCare Learning Centers
Inc., 9.50%,
02/15/2009 (c) ............................. 250,000 251,875
-----------
414,625
Computers -- 0.47%
Unisys Corp., 7.875%, 04/01/2008
(c) ........................................... 250,000 255,000
Cosmetics & Personal Care -- 1.09%
American Safety Razor Co.,
9.875%,
08/01/2005 ................................. 250,000 267,500
French Fragrances Inc., 10.375%,
05/15/2007 ................................. 125,000 133,125
Revlon Worldwide Corp., Zero
Coupon,
03/15/2001 ................................. 250,000 194,375
-----------
595,000
Diversified Financial Services -- 2.09%
Merrill Lynch & Co. Inc., 6.00%,
02/13/2003 (c) ............................. 200,000 199,224
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
United States (continued)
Diversified Financial Services
(continued)
Paine Webber Group Inc., 7.00%,
03/01/2000 (c) ...............$ ............ 300,000 $ 303,786
Polymer Group Inc., 9.00%, .................... 250,000 252,813
07/01/2000
Ryder TRS Inc., 10.00%, ....................... 200,000 231,000
12/01/2006
Williams Scotsman Inc., 9.875%,
06/01/2007 ................................. 150,000 156,000
-----------
1,142,823
Electric -- 0.42%
TransAmerican Energy Corp.,
11.50%, 06/15/2002 ............................ 250,000 230,000
Entertainment -- 0.97%
Grand Casinos Inc., 9.00%, 10/15/2004.......... 250,000 271,250
Sun International Hotels Ltd.,
8.625%, 12/15/2007 ............................ 250,000 257,500
-----------
528,750
Environmental Control -- 1.05%
Allied Waste Industries Inc.,
(Step-Up Bond), 11.30%,
06/01/2007 (d) .............................. 200,000 147,000
Envirosource Inc., 9.75%,
06/15/2003 .................................... 250,000 252,500
Norcal Waste Systems Inc.,
(Step-Up Bond), 13.25%,
11/15/2005 (e) ............................... 150,000 175,500
-----------
575,000
Food -- 0.99%
B&G Foods Inc., 9.625%, ....................... 125,000 126,250
08/01/2007
CFP Holdings Inc., 11.625%, ................... 200,000 187,500
01/15/2004
Dole Foods Co., 6.75%, ........................ 100,000 100,790
07/15/2000
SC International Services Inc.,
9.25%, 09/01/2007 ............................. 125,000 129,375
-----------
543,915
Forest Products & Paper -- 0.36%
Doman Industries Ltd., 8.75%,
03/15/2004 ................................. 200,000 195,500
Hand & Machine Tools -- 0.29%
International Knife & Saw Inc.,
11.375%, 11/15/2006 ........................... 150,000 159,000
Health Care -- 1.16%
Dade International Inc., 11.125%,
05/01/2006 ................................. 250,000 282,500
Integrated Health Services Inc.,
9.50%, 09/15/2007 ............................. 100,000 104,750
Vencor Inc., 9.875%, 05/01/2005 ............... 250,000 245,938
-----------
633,188
Holding Companies - Diversified -- 1.09%
High Voltage Engineering Corp.,
10.50%, 08/15/2004 ............................ 125,000 128,750
Jordan Industries Inc., 10.375%,
08/01/2007 ................................. 200,000 204,000
<PAGE>
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
United States (continued)
Holding Companies - Diversified
(continued)
Renco Metals Inc., 11.50%,
07/01/2003 ................................. $ 250,000 $ 265,000
-----------
597,750
Household Products -- 0.93%
Ekco Group Inc., 9.25%,
04/01/2006 .................................... 250,000 260,625
Indesco International Inc.,
9.75%, 04/15/2008 ............................. 250,000 247,500
-----------
508,125
Insurance -- 0.39%
Aetna Services Inc., 7.625%,
08/15/2026 .................................... 200,000 213,380
Leisure Time -- 0.46%
Riddell Sports Inc., 10.50%,
07/15/2007 .................................... 250,000 251,875
Lodging -- 0.49%
Prime Hospitality Corp., 9.75%,
04/01/2027 ................................. 250,000 265,625
Machinery -- 0.39%
Harnischfeger Industries Inc.,
6.875%, 02/15/2027 ........................... 200,000 212,582
Manufacturing -- 1.76%
Alvey Systems Inc., 11.375%,
01/31/2003 ................................. 75,000 80,625
Axiohm Transaction Solutions,
9.75%, 10/01/2007 ......................... 150,000 151,875
Burke Industries Inc., 10.00%,
08/15/2007 (c) ............................. 250,000 251,250
Foamex L.P./Foamex Capital
Corp., 9.875%, 06/15/2007 .................. 100,000 110,000
Insilco Corp., 10.25%,
08/15/2007 ................................. 150,000 156,750
Norsk Hydro ASA, 6.70%,
01/15/2018 ................................. 100,000 102,037
Tekni-Plex Inc., 11.25%,
04/01/2007 ................................. 100,000 109,750
-----------
962,287
Media -- 3.60%
Adelphia Communications Corp. .................
9.875%, 03/01/2007 ........................... 100,000 108,250
10.50%, 07/15/2004 ........................... 100,000 109,250
American Media Operation Inc.,
11.625%, 11/15/2004 .......................... 250,000 270,000
CSC Holdings Inc., 10.50%,
05/15/2016 ................................... 250,000 291,250
Diamond Cable Communication Plc,
(Step- Up Bond), 11.75%, 12/15/2005
(d) .......................................... 150,000 124,500
Falcon Holding Group L.P.,
8.375%, 04/15/2010 ........................... 250,000 247,500
Hollinger International
Publishing Inc., 9.25%,
03/15/2007 ................................... 250,000 263,750
Lin Holdings Corp., (144a),
(Step-Up Bond), 10.00%,
03/01/2008 (d) ............................... 375,000 251,250
Marcus Cable Co., (Step-Up Bond),
14.25%, 12/15/2005 (d) ....................... 150,000 139,500
SFX Broadcasting Inc., 10.75%,
05/15/2006 (c) ............................... 150,000 165,374
-----------
1,970,624
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
United States (continued)
Metals & Mining -- 0.31%
Glencore Nickel Pty. Ltd., 9.00%,
12/01/2014 ...................$ ............ 175,000 $ 168,000
Oil & Gas Producers -- 1.91%
Cliffs Drilling Co., 10.25%,
05/15/2003 ................................. 150,000 160,500
Cross Timbers Oil Co., 9.25%,
04/01/2007 ................................. 150,000 154,500
Dawson Production Services Inc.,
9.375%, 02/01/2007 ......................... 250,000 251,250
National Energy Group Inc.,
10.75%, 11/01/2006 ......................... 150,000 135,750
Occidental Petroleum Corp.,
9.25%, 08/01/2019 .......................... 150,000 186,792
Parker Drilling Co., 9.75%,
11/15/2006 ................................. 150,000 153,750
-----------
1,042,542
Packaging & Containers -- 1.15%
Plastic Containers Inc., 10.00%,
12/15/2006 ................................. 250,000 266,250
Radnor Holdings Corp., 10.00%,
12/01/2003 ................................. 100,000 104,250
Stone Container Corp., 12.25%,
04/01/2002 ................................. 250,000 258,750
-----------
629,250
Real Estate -- 0.82%
CB Richard Ellis Services Inc.,
8.875%, 06/01/2006 ......................... 250,000 248,125
Forest City Enterprises Inc.,
8.50%, 03/15/2008 .......................... 200,000 198,000
-----------
446,125
Retail -- 2.14%
Cole National Group Inc.,
8.625%, 08/15/2007 ......................... 250,000 252,500
Jitney-Jungle Stores of America
Inc., 12.00%, 03/01/2006 (c) ............... 250,000 281,250
Selmer Co. Inc., 11.00%,
05/15/2005 (c) ............................. 250,000 272,500
Staples Inc., 7.125%, 08/15/2007
(c) ........................................ 350,000 362,485
-----------
1,168,735
Software -- 0.37%
First Data Corp., 6.375%,
12/15/2007 (c) ............................. 200,000 203,516
Sovereign -- 0.35%
Korea Development Bank, 9.60%,
12/01/2000 ................................. 200,000 192,466
Telecommunications -- 2.90%
British Telecom Plc, 7.00%,
05/23/2007 ................................. 550,000 584,374
Comcast Cellular Holdings Inc.,
9.50%, 05/01/2007 (c) ...................... 250,000 259,375
GTE Corp., 6.94%, 04/15/2028 .................. 125,000 201,560
Intermedia Communication Inc.,
8.60%, 06/01/2008 .......................... 125,000 125,938
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
SCHEDULE OF INVESTMENT (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
United States (continued)
Telecommunications (continued)
Nextel Communications Inc.,
9.75%, 10/31/2007 .......................... $ 350,000 $ 228,375
NTL Inc., (Step-Up Bond), 11.50%,
02/01/2006 (d) ............................. 225,000 185,625
-----------
1,585,247
Textiles -- 0.28%
Collins & Aikman Floorcoverings,
10.00%, 01/15/2007 ......................... 150,000 155,625
Transportation -- 1.08%
Coach USA Inc., 9.375%,
07/01/2007 ................................. 250,000 260,000
Holt Group Inc., 9.75%,
01/15/2006 ................................. 200,000 200,000
TFM SA, (Step-Up Bond), 11.75%,
06/15/2009 (d) ............................. 200,000 132,216
-----------
592,216
-----------
Total United States .......................... 18,659,892
-----------
Total Corporate Bonds
(cost $18,729,249) ........................ 18,686,994
-----------
Government Securities -- 44.00%
Argentina -- 1.62%
Republic of Argentina, 6.625%,
03/31/2005 (f) ............................. 1,007,000 888,678
Brazil -- 2.40%
Republic of Brazil, 10.125%,
05/15/2027 ................................. 1,525,000 1,315,312
Bulgaria -- 0.65%
National Republic of Bulgaria,
6.563%, 07/28/2011 (f) ..................... 500,000 356,250
Canada -- 0.76%
Canadian Government Note
7.00%, 12/01/2006 ............................ 40,000 30,178
6.50%, 09/01/1998 ............................ 570,000 388,199
-----------
Total Canada ................................. 418,377
Denmark -- 2.51%
Kingdom of Denmark
8.00%, 05/15/2003 ............................ 3,220,000 536,096
6.00%, 02/15/1999 ............................ 5,690,000 837,245
-----------
Total Denmark ................................ 1,373,341
Ecuador -- 0.25%
Republic of Ecuador, (Step-Up
Bond), 3.50%, 02/28/2025 (e) .............. 250,000 134,700
Germany -- 0.81%
Federal Republic of Germany
6.00%, 01/05/2006 .......................... 80,000 $ 47,953
Principal Market
Amount Value
------ -----
Government Securities (continued)
Germany (continued)
6.50 %, 07/04/2027 ........................... $ 370,000 $ 239,424
5.625%, 01/04/2028 ........................... 270,000 155,402
-----------
Total Germany ................................ 442,779
Greece -- 0.26%
Republic of Greece, 11.00%,
02/25/2000 .................................... 43,500,000 143,786
Mexico -- 1.85%
United Mexican States
11.50%, 05/15/2026 ........................... 550,000 624,250
11.375%, 09/15/2016 .......................... 350,000 389,725
-----------
Total Mexico ................................. 1,013,975
Morocco -- 1.09%
Morocco Loan Participation,
6.563%, 01/01/2009 (f) ..................... 700,000 596,750
Netherlands -- 0.76%
Kingdom of Netherlands, 9.00%,
01/15/2001 ................................. 760,000 416,126
New Zealand -- 0.28%
New Zealand Government, 6.50%,
02/15/2000 ................................. 300,000 154,466
Sweden -- 0.47%
Kingdom of Sweden, 11.00%,
01/21/1999 ................................. 2,000,000 259,684
Panama -- 0.95%
Republic of Panama, (Step-Up
Bond), 3.75%, 07/17/2014 (e) .............. 700,000 520,660
Peru -- 0.56%
Republic of Peru, (Step-Up
Bond), 4.00%, 03/07/2017 ................... 500,000 308,150
Russia -- 1.25%
Russia Government International
Bond
6.625%, 12/15/2015 (f) ..................... 412,674 228,518
6.625%, 12/15/2015 ......................... 169,493 91,111
Russian Principal Loan, 6.625%,
12/15/2020 (f) ............................. 750,000 354,375
-----------
Total Russia ................................. 674,004
Venezuela -- 1.02%
Republic of Venezuela, 6.625%,
12/18/2007 (f) ............................. 678,571 554,732
United States -- 26.51%
U.S. Government Agencies -- 20.36%
Federal Home Loan Mortgage Corp.
10.00%, 05/15/2020 ........................... 32,386 35,169
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Government Securities (continued)
United States (continued)
U.S. Government Agencies (continued)
6.50%, 12/01/1999 ............................ $ 1,600 $ 48,222
6.50%, TBA (a) ............................... 300,000 299,154
Federal National Mortgage
Association
13.00%, 11/15/2015 ........................... 749,583 21,101
7.00%, 11/18/2015 ............................ 4,255,958 128,956
10.40%, 04/25/2019 ........................... 8,564 10,001
7.00%, 03/17/2020 (c) ........................ 1,500,000 1,521,090
6.50%, 02/1/2026 ............................. 262,921 262,427
10.40%, 02/25/2035 ........................... 53,082 58,805
6.50%, TBA (a) ............................... 4,200,000 4,182,906
7.00%, TBA (a) ............................... 350,000 354,921
7.00%, TBA (a) ............................... 3,500,000 3,549,209
Government National Mortgage .................. 2,427,034 206,541
Association, 7.50%,
01/15/2028 ................................. 446,466 458,884
-----------
11,137,386
U.S. Treasury Bonds -- 0.37%
6.125%, 12/31/2002 (c) ....................... 130,000 139,303
6.375%, 08/15/2027 (c) ....................... 60,000 65,887
-----------
205,190
U.S. Treasury Notes -- 5.78%
6.625%, 03/31/2002 (c) ....................... 1,000,000 1,035,780
5.875%, 09/30/2002 (c) ....................... 800,000 810,000
5.625%, 12/31/2002 (c) ....................... 250,000 251,092
5.50%, 02/15/ 2008 (c) ....................... 1,000,000 999,370
U.S. Treasury Inflation Index
Note, 3.375%, 01/15/2007
(b)(c) ..................................... 70,000 67,791
-----------
3,164,033
-----------
Total United States .......................... 14,506,609
-----------
Total Government Securities
(cost $25,776,699) ........................ 24,078,379
-----------
Asset Backed Securities -- 3.68%
Diversified Financial Services -- 3.68%
Airplane Pass-through Trust,
10.875%, 03/15/2019 ........................ 125,000 141,474
DLJ Commercial Mortgage Corp.,
7.09%, 05/10/2023 .......................... 4,500,000 223,263
First Union Residential
Securitization
Transactions Inc., 7.00%,
08/25/2028 ................................. 99,795 97,706
Green Tree Financial Corp.,
7.07%, 01/15/2029 .......................... 588,948 610,844
Mid-State Trust VI, 7.34%,
07/1/2035 .................................. 369,530 384,078
Principal Market
Amount Value
------ -----
Asset Backed Securities (continued)
Diversified Financial Services
(continued)
PNC Mortgage Securities Corp. .................
6.34%, 02/25/2028 ............................ $ 200,000 $ 193,687
6.75%, 05/25/2028 ............................ 149,887 144,501
6.838%, 05/25/2028 ........................... 224,876 217,779
-----------
Total Asset Backed Securities
(cost $318,688) ........................... 2,013,332
-----------
Shares
------
Preferred Stocks -- 0.49%
United States -- 0.49%
Holding Companies-Diversified -- 0 49%
Nebco Evans Holding Co. ....................... 2,566 265,617
-----------
Total Preferred Stocks
(cost $250,000) ........................... 265,617
-----------
Principal
Amount
------
Short Term Investments -- 17.69%
Italy -- 0.61%
Sovereign -- 0.61%
Republic of Italy, 5.97%,
07/31/1998 .................................... $600,000,000 336,108
Japan -- 0.32%
Banks -- 0.32%
European Investment Bank, 4.25%,
07/16/1998 ................................. 24,000,000 173,834
United States -- 16.76%
Money Market Fund -- 0.00%
SSgA Money Market Fund, 5.35%
(b) ........................................... 701 701
Repurchase Agreements -- 16.76%
Repurchase Agreement with State
Street Bank, 5.70% (Collateralized
by $7,775,000 U.S. Treasury Note,
market value - $9,356,730),
acquired on 06/30/1998,
due 07/01/1998 .............................. 9,169,000 9,169,000
-----------
Total United States .......................... 9,169,701
-----------
Total Short Term Investments
(cost $9,501,519) ......................... 9,679,643
-----------
Total Investments -- 100%
(cost $54,576,155) ............................ $54,723,965
===========
- -----------------------------------------------
(a) Investment purchased on a when-issued basis.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
(c) Security pledged as collateral for investment purchased on a when-issued
basis.
(d) Denotes deferred interest security that receives no coupon payments until a
predetermined date at which time the stated coupon rate becomes effective.
(e) Coupon payment periodically increases over the life of the security. Rate
is in effect as of June 30, 1998.
(f) Coupon is indexed to six month Libor. Rate stated is in effect as of June
30, 1998.
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL HIGH YIELD BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Principal Market
Amount Value
------ -----
Corporate Bonds -- 89.61%
Advertising -- 2.22%
SITEL Corp., (144a), 9.25%,
03/15/2006 .................................... $ 125,000 $ 125,000
Aerospace & Defense -- 4.40%
BE Aerospace Inc., 8.00%,
03/01/2008 ................................. 125,000 124,688
Stellex Industries Inc., 9.50%,
11/01/2007 ................................. 125,000 123,750
-----------
248,438
Auto Manufacturers -- 2.23%
Navistar International Corp.,
8.00%, 02/01/2008 .......................... 125,000 125,624
Building Materials -- 2.27%
International Utility Structures
Inc., 10.75%, 02/01/2008 ................... 125,000 127,968
Chemicals -- 2.19%
PCI Chemicals Canada Inc.,
6.25%, 10/15/2007 .......................... 125,000 123,750
Commercial Services -- 4.49%
Iron Mountain Inc., 8.75%,
09/30/2009 ................................. 125,000 127,500
KinderCare Learning Centers
Inc., 9.50%, 02/15/2009 ....................... 125,000 125,625
-----------
253,125
Computers -- 2.26%
Unisys Corp., 7.875%,
04/01/2008 ................................. 125,000 127,500
Entertainment -- 2.28%
Sun International Hotels Ltd.,
8.625%, 12/15/2007 ......................... 125,000 128,750
Food -- 6.92%
Ameriserve Food Distribution
Inc., 10.125%, 07/31/2007 .................. 125,000 129,375
Fleming Cos. Inc., 10.625%,
07/31/2007 ................................. 125,000 131,875
SC International Services Inc.,
9.25%, 09/01/2007 .......................... 125,000 129,375
-----------
390,625
Health Care -- 11.34%
Dade International Inc., 11.125%,
05/01/2006 ................................. 125,000 141,250
Kinetic Concepts Inc., 9.625%,
11/01/2007 ................................. 125,000 126,250
Prime Medical Services Inc.,
8.75%, 04/01/2008 .......................... 125,000 123,750
Universal Hospital Services
Inc., (144a), 10.25%,
03/01/2008 ................................. 125,000 125,000
Vencor Inc., (144a), 9.875%,
05/01/2005 .................................... 125,000 122,969
-----------
639,219
Holding Companies-Diversified -- 4 54%
High Voltage Engineering Corp.,
10.50%, 08/15/2004 .......................... 125,000 128,750
Jordan Industries Inc., 10.375%,
08/01/2007 .................................. 125,000 127,500
-----------
256,250
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
Household Products -- 4.50%
Ekco Group Inc., 9.25%,
04/01/2006 ................................. $ 125,000 $ 130,313
Indesco International Inc.,
(144a), 9.75%, 04/15/2008 .................. 125,000 123,750
-----------
254,063
Manufacturing -- 4.45%
Axiohm Transaction Solutions,
9.75%, 10/01/2007 .......................... 125,000 126,563
Furon Co., 8.125%, 03/01/2008 ................. 125,000 124,688
-----------
251,251
Media -- 9.00%
Century Communications Corp.,
8.375%, 12/15/2007 ......................... 125,000 127,500
Falcon Holding Group L.P.,
(144a), 8.375%, 04/15/2010 ................. 125,000 123,750
Hollinger International
Publishing Inc.,
9.25%, 03/15/2007 .......................... 125,000 131,875
Mediacom LLC/Mediacom Capital
Corp., (144a), 8.50%,
04/15/2008 ................................. 125,000 124,688
-----------
507,813
Metals & Mining -- 2.19%
AEI Holding Co., (144a), 10.00%,
11/15/2007 ................................. 125,000 123,437
Oil & Gas Producers -- 4.49%
Clark Refining & Marketing Inc.,
8.875%, 11/15/2007 ......................... 125,000 125,625
Parker Drilling Co., 9.75%,
11/15/2006 ................................. 125,000 127,813
-----------
253,438
Packaging & Containers -- 4.57%
Delta Beverage Group Inc.,
9.75%, 12/15/2003 .......................... 125,000 130,937
Packaged Ice Inc., (144a), 9.75%,
02/01/2005 ................................. 125,000 126,875
-----------
257,812
Real Estate -- 2.19%
Forest City Enterprises Inc.,
8.50%, 03/15/2008 ............................. 125,000 123,750
Retail -- 4.51%
Cole National Group Inc., 8.625%,
08/15/2007 ................................. 125,000 126,250
Purina Mills Inc., (144a), 9.00%,
03/15/2010 ................................. 125,000 128,437
-----------
254,687
Telecommunications -- 4.51%
Nextel Communications Inc.,
(Step-Up Bond), 9.75%,
10/31/2007 (b) ............................. 200,000 130,500
NTL Inc., (Step-Up Bond), 11.50%,
02/01/2006 (b) ............................. 150,000 123,750
-----------
254,250
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JUNL HIGH YIELD BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
Transportation -- 4.06%
Atlantic Express Transportation
Corp., 10.75%, 02/01/2004 .................. $ 100,000 $ 106,500
Enterprises Shipholding Corp.,
(144a), 8.875%, 05/01/2008 ................. 125,000 122,500
-----------
229,000
-----------
Total Corporate Bonds
(cost $5,103,326) ......................... 5,055,750
-----------
Principal Market
Amount Value
------ -----
Short Term Investments -- 10.39%
Money Market Fund -- 0.00%
SSgA Money Market Fund, 5.35%
(a) ........................................... $ 65 $ 65
Repurchase Agreements -- 10.39%
Repurchase Agreement with State
Street Bank, 5.70%,
(Collateralized by
$500,000 U.S. Treasury Bond,
7.50%, due 11/15/2016,
market value $601,719)
acquired on 06/30/1998, due
07/01/1998 .................................. 586,000 586,000
-----------
Total Short Term Investments
(cost $586,065) ........................... 586,065
-----------
Total Investments -- 100%
(cost $5,689,391) ............................. $ 5,641,815
===========
- -----------------------------------------------
(a) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
(b) Denotes deferred interest security that receives no current coupon payments
until a predetermined date at which time the stated coupon rate becomes
effective.
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL U.S. GOVERNMENT & QUALITY BOND SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Principal Market
Amount Value
------ -----
Corporate Bonds -- 1.64%
Banks -- 0.34%
Bank One Corp., 7.60%,
05/01/2007 (c) ................................ $ 150,000 $ 162,765
Oil & Gas Producers -- 1.30%
Occidental Petroleum Corp.,
9.25%,
08/01/2019 (c) ............................. 500,000 622,640
-----------
Total Corporate Bonds
(cost $735,099) ........................... 785,405
-----------
U.S. Government Securities -- 71.74%
Diversified Financial Services -- 0.86%
Sallie Mae, 7.50%, 03/08/2000
(c) ........................................... 400,000 411,688
U.S. Government Agencies -- 47.08%
Federal Home Loan Bank, 5.94%,
06/13/2000 (c) ............................. 300,000 301,686
Federal Home Loan Mortgage Corp. ..............
6.00%, 09/01/2010 (c) ........................ 3,569 3,563
11.75%, 01/01/2011 (c) ....................... 4,307 4,868
7.00%, 07/01/2011 (c) ........................ 104,703 106,971
8.25%, 04/01/2017 (c) ........................ 377,912 395,670
10.50%, 06/01/2020 (c) ....................... 847,632 947,492
8.00%, 07/01/2020 (c) ........................ 1,091,935 1,144,250
8.50%, 03/15/2024 (c) ........................ 1,750,000 1,884,015
6.50%, TBA (a) ............................... 500,000 503,435
Federal National Mortgage
Association
14.50%, 11/15/2014 (c) ....................... 6,642 8,167
12.50%, 08/01/2015 (c) ....................... 5,741 6,731
12.50%, 09/20/2015 (c) ....................... 19,740 23,436
13.00%, 11/15/2015 (c) ....................... 18,269 21,335
12.00%, 01/01/2016 (c) ....................... 540,313 625,856
12.00%, 01/15/2016 (c) ....................... 20,188 23,526
12.50%, 01/15/2016 (c) ....................... 261,801 308,189
11.50%, 09/01/2019 (c) ....................... 5,841 6,652
10.50%, 08/01/2020 (c) ....................... 109,422 122,211
6.50%, 03/01/2026 (c) ........................ 386,411 385,684
7.00%, 05/01/2026 (c) ........................ 297,364 301,637
9.00%, 08/01/2026 ............................ 545,787 576,242
6.527%, 05/25/2030 (c) ....................... 1,500,000 1,537,500
6.50%, TBA (a) ............................... 6,100,000 6,075,173
7.00%, TBA (a) ............................... 2,100,000 2,129,526
7.00%, TBA (a) ............................... 3,800,000 3,853,428
Government National Mortgage
Association
13.50%, 07/15/2010 (c) ....................... 187,684 221,269
8.50%, 01/15/2018 (c) ........................ 250,762 266,055
VENDEE Mortgage Trust, 7.25%,
10/15/2010 (c) ............................... 734,188 736,251
-----------
22,520,818
Principal Market
Amount Value
------ -----
U.S. Government Securities
(continued)
U.S. Treasury Bond -- 5.55%
6.625%, 02/15/2027 ............................ $2,350,000 $2,653,666
U.S. Treasury Notes -- 18.25%
6.50%, 05/31/2001 (c) ........................ 100,000 102,562
6.258%, 08/31/2002 (c) ....................... 100,000 102,609
5.875%, 09/30/2002 (c) ....................... 1,000,000 1,012,500
5.75%, 04/30/2003 ............................ 3,000,000 3,029,520
6.625%, 05/15/2007 (c) ....................... 2,150,000 2,309,229
6.125%, 08/15/2007 ........................... 350,000 364,165
5.50%, 02/15/2008 ............................ 1,000,000 999,370
5.625%, 05/15/2008 ........................... 800,000 810,872
-----------
8,730,827
-----------
Total U.S. Government
Securities
(cost $33,508,074) ........................ 34,316,999
-----------
Short Term Investments -- 26.62%
Money Market Fund -- 0.00%
SSgA Money Market Fund, 5.35%
(b) ........................................... 59 59
Repurchase Agreements -- 18.26%
Repurchase Agreement with J P
Morgan, 5.48% (Collateralized by
$4,242,000 U.S. Treasury
Note 5.875%,
02/28/1999, market value
$4,327,499) acquired on
06/30/1998, due
07/01/1998 .................................. 4,242,000 4,242,000
Repurchase Agreement with State
Street Bank, 5.70%, (Collateralized
by $3,750,000 U.S. Treasury
Note 11.25% due 02/15/2015,
market value $4,580,088)
acquired on 06/30/1998,
due 07/01/1998 ............................. 4,489,000 4,489,000
-----------
8,731,000
U.S. Government Agencies -- 8.36%
Federal Home Loan Bank Discount
Note, 5.40%, 07/01/1998 ....................... 4,000,000 4,000,000
-----------
Total Short Term Investments
(cost $12,731,059) ........................ 12,731,059
-----------
Total Investments
(cost $46,974,232) ............................ $47,833,463
===========
- -----------------------------------------------
(a) Investment purchased on a when-issued basis.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
(c) Security pledged as collateral for investments purchased on a when-issued
basis.
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 93.87%
Canada -- 1.13%
Insurance -- 1.13%
Fairfax Financial Holdings Ltd. ...............
(a) ........................................... 5,500 $2,093,032
France -- 0.74%
Banks -- 0.14%
Societe Generale .............................. 1,300 270,291
Computers -- 0.13%
Cap Gemini SA ................................. 1,500 235,705
Pharmaceuticals -- 0.28%
Rhone-Poulenc SA .............................. 9,300 524,555
Telecommunications -- 0.19%
Alcatel Alsthom SA ............................ 1,700 346,147
-----------
Total France ................................. 1,376,698
Hong Kong -- 0.79%
Banks -- 0.17%
HSBC Holdings Plc ............................. 13,000 317,953
Holding Companies - Diversified -- 0.62%
Hutchison Whampoa Ltd. ........................ 215,700 1,138,633
-----------
Total Hong Kong .............................. 1,456,586
Italy -- 0.53%
Diversified Financial Services -- 0.16%
Banca Fideuram SpA ............................ 53,700 306,317
Telecommunications -- 0.37%
Telecom Italia Mobile SpA ..................... 61,900 378,699
Telecom Italia SpA - RNC ...................... 62,090 300,709
-----------
679,408
-----------
Total Italy .................................. 985,725
Mexico -- 0.16%
Forest Products & Paper -- 0.16%
Kimberly-Clark de Mexico SA ................... 84,500 298,578
Netherlands -- 2.47%
Computers -- 0.43%
Getronics NV .................................. 15,468 802,791
Electronics -- 0.18%
Philips Electronics NV ........................ 3,900 328,078
Household Products -- 0.11%
Hagemeyer NV .................................. 4,900 212,126
Media -- 1.75%
Elsevier NV ................................... 20,300 306,585
Verenigde Nederlandse
Uitgeversbedrijven ............................ 56,700 2,061,311
Market
Shares Value
------ -----
Common Stocks (continued)
Netherlands (continued)
Media (continued)
Wolters Kluwer NV ............................. 6,200 $ 851,575
-----------
3,219,471
-----------
Total Netherlands ............................ 4,562,466
Norway -- 0.20%
Media -- 0.20%
Schibsted ASA ................................. 21,900 368,595
Portugal -- 0.80%
Telecommunications -- 0.80%
Telecel-Comunicacoes Pessoais SA .............. 1,474,756
Switzerland -- 0.45%
Pharmaceuticals -- 0.45%
Novartis ...................................... 498 830,055
United Kingdom -- 2.75%
Commercial Services -- 1.08%
Granada Group Plc ............................. 52,400 964,165
Rentokil Initial Plc .......................... 143,100 1,029,806
-----------
1,993,971
Holding Companies - Diversified -- 0.76%
Tomkins Plc ................................... 258,000 1,401,120
Pharmaceuticals -- 0.39%
Zeneca Group Plc (a) .......................... 17,000 730,060
Telecommunications -- 0.52%
Vodafone Group Plc ............................ 76,000 965,053
-----------
Total United Kingdom ......................... 5,090,204
United States -- 83.85%
Advertising -- 0.84%
Omnicom Group Inc. ............................ 31,200 1,556,100
Aerospace & Defense -- 1.99%
AlliedSignal Inc. ............................. 64,000 2,840,000
Raytheon Co. "B" .............................. 13,500 798,187
United Technologies Corp. ..................... 500 46,250
-----------
3,684,437
Apparel -- 0.13%
Nike Inc. ..................................... 5,000 243,437
Banks -- 6.56%
Banc One Corp. ................................ 16,000 893,000
Citicorp ...................................... 10,200 1,522,350
First Union Corp. ............................. 25,600 1,491,200
Mellon Bank Corp. ............................. 11,300 786,763
NationsBank Corp .............................. 24,449 1,870,349
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Banks (continued)
Northern Trust Corp. .......................... 7,900 $ 602,375
Norwest Corp. ................................. 60,800 2,272,400
Toronto-Dominion Bank ......................... 29,600 1,341,250
Wells Fargo & Co. ............................. 3,700 1,365,300
-----------
12,144,987
Beverages -- 1.39%
Coca-Cola Co. ................................. 9,100 778,050
PepsiCo Inc. .................................. 43,700 1,799,893
-----------
2,577,943
Biotechnology -- 1.82%
Biogen Inc. (a) ............................... 23,100 1,131,900
Genentech Inc. (a) ............................ 20,300 1,377,863
Pioneer Hi-Bred International
Inc ........................................ 20,700 856,463
-----------
3,366,226
Building Materials -- 0.86%
Masco Corp. ................................... 26,200 1,585,100
Commercial Services -- 0.89%
Cendant Corp. (a) ............................. 30,000 626,250
H&R Block Inc. ................................ 11,300 476,013
Service Corp. International ................... 12,500 535,938
-----------
1,638,201
Computers -- 2.35%
Ascend Communications Inc. (a) ................ 11,100 550,143
Cisco Systems Inc. (a) ........................ 12,600 1,159,988
Dell Computer Corp. (a) ....................... 6,300 584,719
EMC Corp. (a) ................................ 28,000 1,254,750
Hewlett-Packard Co. ........................... 13,300 796,338
-----------
4,345,938
Cosmetics & Personal Care -- 1.47%
Gillette Co. .................................. 13,800 782,287
Kimberly-Clark Corp. .......................... 25,100 1,151,463
Procter & Gamble Co. .......................... 8,700 792,244
-----------
2,725,994
Diversified Financial Services -- 4.48%
Federal Home Loan Mortgage Corp. .............. 102,600 4,828,613
Federal National Mortgage
Association ................................... 40,200 2,442,150
Green Tree Financial Corp. .................... 9,700 415,281
SLM Holding Corp. ............................. 12,450 610,050
-----------
8,296,094
Electronics -- 1.88%
Analog Devices Inc. (a) ....................... 55,600 1,365,675
Honeywell Inc. ................................ 3,200 267,400
Linear Technology Corp. ....................... 9,200 554,875
Teleflex Inc. ................................. 32,500 1,235,000
Teradyne Inc. (a) ............................. 2,000 53,500
-----------
3,476,450
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Entertainment -- 0.20%
Mirage Resorts Inc. (a) ....................... 17,100 $ 364,443
Environmental Control -- 1.20%
USA Waste Services Inc. (a) ................... 45,100 2,226,812
Food -- 2.06%
Bestfoods ..................................... 10,400 603,850
Safeway Inc. (a) .............................. 50,200 2,042,513
Sara Lee Corp. ................................ 20,900 1,169,093
-----------
3,815,456
Health Care -- 3.68%
Guidant Corp. ................................. 7,300 520,581
HEALTHSOUTH Corp. (a) ......................... 70,900 1,892,144
Johnson & Johnson ............................. 20,200 1,489,750
Tenet Healthcare Corp. (a) .................... 34,700 1,084,375
United HealthCare Corp. ....................... 28,600 1,816,100
-----------
6,802,950
Holding Companies - Diversified -- 0.93%
Berkshire Hathaway Inc. (a) ................... 22 1,722,709
Household Products -- 0.32%
Unilever NV - NYS ............................. 7,000 599,924
Insurance -- 5.75%
Ace Ltd. ...................................... 56,900 2,219,100
Aetna Inc. .................................... 3,900 296,888
EXEL Ltd. ..................................... 10,600 824,813
Mutual Risk Management Ltd. ................... 35,000 1,275,313
PartnerRe Ltd. ................................ 14,700 749,700
Travelers Group Inc. .......................... 35,250 2,137,031
Travelers Property Casualty
Corp .......................................... 25,500 1,093,313
UNUM Corp. .................................... 36,900 2,047,950
-----------
10,644,108
Leisure Time -- 1.53%
Carnival Corp. ................................ 33,000 1,307,625
Hasbro Inc. ................................... 25,100 986,744
Mattel Inc. ................................... 12,900 545,831
-----------
2,840,200
Lodging -- 0.54%
Hilton Hotels Corp. ........................... 34,800 991,800
Manufacturing -- 6.12%
Danaher Corp. ................................. 90,500 3,320,219
General Electric Co. .......................... 54,900 4,995,900
Tyco International Ltd. ....................... 47,862 3,015,306
-----------
11,331,425
Media -- 3.13%
CBS Corp. ..................................... 44,700 1,419,225
Cox Communications Inc. (a) ................... 13,900 673,281
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Media (continued)
Tribune Co. ................................... 29,700 $2,043,731
TV Azteca SA - ADR ............................ 19,900 215,168
Walt Disney Co. ............................... 13,800 1,449,862
-----------
5,801,267
Metals & Mining -- 0.59%
Barrick Gold Corp. ............................ 13,400 257,113
Newmont Mining Corp. .......................... 35,500 838,688
-----------
1,095,801
Oil & Gas Producers -- 3.66%
Chevron Corp. ................................. 10,000 830,625
Halliburton Co. ............................... 27,300 1,216,556
Mobil Corp. ................................... 21,800 1,670,424
Royal Dutch Petroleum Co. - NYS ............... 45,000 2,466,563
Western Atlas Inc. (a) ........................ 6,900 585,637
-----------
6,769,805
Pharmaceuticals -- 6.43%
American Home Products Corp. .................. 32,000 1,656,000
Bristol-Myers Squibb Co. ...................... 26,900 3,091,818
Eli Lilly & Co. ............................... 13,500 891,844
Merck & Co. Inc. .............................. 16,900 2,260,375
Pfizer Inc. ................................... 20,000 2,173,750
Warner-Lambert Co. ............................ 26,300 1,824,563
-----------
11,898,350
Real Estate -- 2.05%
Crescent Real Estate Equities
Co ......................................... 39,200 1,318,100
Security Capital U.S. Realty (a) .............. 74,500 990,850
Starwood Hotels & Resorts ..................... 30,800 1,488,024
-----------
3,796,974
Retail -- 4.47%
AutoZone Inc. (a) ................................ 37,300 1,191,268
Circuit City Stores .............................. 7,900 370,313
CVS Corp. ........................................ 29,872 1,163,141
Home Depot Inc. .................................. 18,450 1,532,503
Kohl's Corp. (a) ................................. 7,200 373,500
McDonald's Corp. ................................. 9,500 655,500
Rite Aid Corp. ................................... 15,200 570,950
TAG Heuer International SA - ADR ................. 64,500 604,688
Wal-Mart Stores Inc. ............................. 29,700 1,804,275
-----------
8,266,138
Semiconductors -- 1.62%
Intel Corp. ................................... 21,400 1,586,275
Maxim Integrated Products Inc.
(a) ........................................... 37,800 1,197,787
Xilinx Inc. ................................... 6,100 207,400
-----------
2,991,462
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Software -- 8.42%
Adobe Systems Inc. ............................ 15,600 $ 662,025
America Online Inc. ........................... 5,800 614,800
Automatic Data Processing Inc. ................ 15,700 1,144,138
BMC Software Inc. (a) ......................... 44,700 2,321,606
Cadence Design Systems Inc. ................... 31,300 978,125
First Data Corp. .............................. 51,002 1,699,004
Microsoft Corp. (a) ........................... 28,500 3,088,688
Network Associates Inc. (a) ................... 22,950 1,098,731
Oracle Corp. (a) .............................. 47,425 1,164,877
Parametric Technology Corp. (a) ............... 63,800 1,730,575
Sterling Commerce Inc. (a) .................... 22,000 1,067,000
-----------
15,569,569
Telecommunications -- 5.28%
AirTouch Communications Inc.
(a) ........................................... 24,900 1,455,094
AT&T Corp. .................................... 10,700 611,238
CIENA Corp. (a) ............................... 6,000 417,750
MCI Communications Corp. ...................... 23,300 1,354,313
Nokia Corp. - ADR ............................. 2,000 145,125
Telecomunicacoes Brasileiras SA
- ADR ...................................... 11,600 1,266,575
Tellabs Inc. (a) .............................. 17,800 1,274,925
Vodafone Group Plc - ADR ...................... 8,100 1,021,106
WorldCom Inc. (a) ............................. 46,000 2,228,125
-----------
9,774,251
Tobacco -- 1.21%
Philip Morris Cos. Inc. ....................... 56,900 2,240,438
-----------
Total United States .......................... 155,184,789
-----------
Total Common Stocks
(cost $139,821,330) ....................... 173,721,484
-----------
Principal
Amount
------
Short Term Investments -- 6.13%
Diversified Financial Services -- 4.58%
Asset Securitization Co-Op
Corp., 5.50%, 07/07/1998 ................... $ 2,165,000 2,163,015
Ciesco LP, 5.51%, 07/22/1998 .................. 3,395,000 3,384,088
FINOVA Capital Corp., 5.54%,
07/07/1998 ................................. 630,000 629,418
Island Finance Puerto Rico Inc.,
5.53%, 08/11/1998 .......................... 275,000 273,268
Paribas Finance Inc., 5.53%,
09/01/1998 ................................. 350,000 346,667
UBS Finance Inc., 6.00%,
07/02/1998 ................................. 1,683,000 1,682,720
-----------
8,479,176
Food -- 0.92%
Kellogg Co., 5.51%, 07/24/1998 ............... 1,710,000 1,703,980
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Principal Market
Amount Value
------ -----
Short Term Investments (continued)
Manufacturing -- 0.63%
General Electric Capital Corp.,
5.56%, 07/23/1998 ............................. $ 1,169,000 $ 1,165,029
Money Market Fund -- 0.00%
SSgA Money Market Fund, 5.35%
(b) ........................................... 26 26
-----------
Total Short Term Investments
(cost $11,348,211) ........................ 11,348,211
-----------
Total Investments -- 100%
(cost $151,169,541) ........................... $185,069,695
============
- -----------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Shares Market Value
------ ------------
Common Stocks -- 95.54%
Argentina -- 0.13%
Oil & Gas Producers -- 0.13%
Perez Companc SA ................................. 22,563 $ 113,282
Australia -- 2.18%
Banks -- 0.47%
Commonwealth Bank Of Australia ................... 14,173 165,751
National Australia Bank Ltd. ..................... 7,242 95,754
Westpac Banking Corp. Ltd. ....................... 25,000 152,860
-----------
414,365
Beverages -- 0.06%
Foster's Brewing Group Ltd. ...................... 21,000 49,536
Commercial Services -- 0.13%
Brambles Industries Ltd. ......................... 6,000 118,029
Diversified Financial Services -- 0.26%
Colonial Ltd. .................................... 26,000 78,761
Lend Lease Corp. Ltd. ............................ 7,514 152,290
-----------
231,051
Food -- 0.08%
Goodman Fielder Ltd. ............................. 48,000 70,021
Holding Companies-Diversified -- 0.16%
Broken Hill Proprietary Company Ltd. ............. 16,458 139,451
Insurance -- 0.12%
AMP Ltd. (a) ..................................... 9,000 105,590
Leisure Time -- 0.11%
Tabcorp Holdings Ltd. ............................ 18,000 92,181
Media -- 0.40%
John Fairfax Holdings Ltd. ....................... 46,000 80,152
News Corp. Ltd. .................................. 23,383 191,308
Publishing & Broadcasting Ltd. ................... 18,000 77,656
-----------
349,116
Oil & Gas Producers -- 0.25%
Australian Gas Light Co. Ltd. .................... 20,570 128,966
Woodside Petroleum Ltd. .......................... 18,000 90,058
-----------
219,024
Telecommunications -- 0.14%
Telstra Corp. Ltd. ............................... 47,815 122,880
-----------
Total Australia .................................. 1,911,244
Belgium -- 2.22%
Banks -- 2.02%
Dexia Belgium .................................... 545 82,065
Generale de Banque SA ............................ 26 1
Generale de Banque SA ............................ 566 420,429
KBC Bancassurance Holding ........................ 14,150 1,266,994
-----------
1,769,489
Shares Market Value
------ ------------
Common Stocks (continued)
Belgium (continued)
Pharmaceuticals -- 0.20%
UCB SA ........................................... 33 $ 171,300
-----------
Total Belgium .................................... 1,940,789
Brazil -- 0.04%
Electric -- 0.04%
Centrais Electricas Brasileiras SA ............... 1,093,300 32,140
Centrais Geradoras do Sul do Brasil SA ........... 1,093,300 1,494
-----------
33,634
Canada -- 0.28%
Banks -- 0.13%
Royal Bank of Canada ............................. 1,850 112,077
Metals & Mining -- 0.15%
Alcan Aluminum Ltd. .............................. 4,960 135,161
-----------
Total Canada ..................................... 247,238
Czech Republic -- 0.01%
Telecommunications -- 0.01%
SPT Telecom AS (a) ............................... 1,300 17,995
Denmark -- 0.29%
Banks -- 0.27%
Den Danske Bank .................................. 1,130 135,709
Unidanmark A/S ................................... 1,130 101,658
-----------
237,367
Telecommunications -- 0.02%
Tele Danmark A/S (a) ............................. 200 19,215
-----------
Total Denmark .................................... 256,582
Finland -- 0.46%
Telecommunications -- 0.46%
Nokia Oyj "A" .................................... 5,240 399,005
France -- 10.57%
Banks -- 0.87%
Credit Commercial de France ...................... 3,294 277,329
Dexia France ..................................... 434 58,434
Dexia France ..................................... 244 32,852
Dexia France ..................................... 160 21,543
Societe Generale ................................. 1,770 368,012
-----------
758,170
Building Materials -- 0.81%
Compagnie de Saint Gobain ........................ 2,440 452,428
Lafarge SA ....................................... 1,375 142,146
Lapeyre SA ....................................... 1,290 120,130
-----------
714,704
Commercial Services -- 1.36%
Vivendi .......................................... 5,560 1,187,284
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Shares Market Value
------ ------------
Common Stocks (continued)
France (continued)
Cosmetics & Personal Care -- 0.17%
L'OREAL .......................................... 262 $ 145,741
Electrical Components & Equipment -- 0 18%
Legrand SA ....................................... 599 158,526
Engineering & Construction -- 0.05%
Groupe GTM ....................................... 410 42,589
Entertainment -- 0.08%
Pathe SA ......................................... 370 72,522
Food -- 1.35%
Carrefour Supermarche ............................ 433 273,951
Groupe Danone .................................... 1,430 394,298
Sodexho Alliance SA .............................. 2,700 510,462
-----------
1,178,711
Hand & Machine Tools -- 0.64%
Schneider SA ..................................... 6,976 556,284
Insurance -- 0.52%
AXA-UAP .......................................... 4,011 451,144
Lodging -- 0.13%
Accor SA ......................................... 405 113,347
Media -- 0.45%
Canal Plus ....................................... 750 140,182
Societe Television Francaise 1 ................... 1,660 257,277
-----------
397,459
Oil & Gas Producers -- 1.54%
Elf Aquitaine SA ................................. 2,450 344,460
Primagaz Cie ..................................... 755 66,312
Total SA ......................................... 7,237 940,881
-----------
1,351,653
Pharmaceuticals -- 0.52%
Sanofi SA ........................................ 3,879 456,187
Retail -- 1.13%
Pinault-Printemps-Redoute SA ..................... 1,180 987,611
Semiconductors -- 0.09%
ST Microelectronics NV (a) ....................... 1,100 77,965
Telecommunications -- 0.68%
Alcatel Alsthom SA ............................... 2,930 596,594
-----------
Total France ..................................... 9,246,491
Germany -- 7.01%
Auto Manufacturers -- 0.17%
Volkswagen AG .................................... 150 144,971
Shares Market Value
------ ------------
Common Stocks (continued)
Germany (continued)
Banks -- 1.98%
Bayerische Hypotheken-und Wechsel-
Bank AG ....................................... 6,268 $ 397,604
Bayerische Vereinsbank ........................... 4,308 365,480
Commerzbank AG ................................... 2,210 84,187
Deutsche Bank AG ................................. 6,710 567,770
Dresdner Bank AG ................................. 5,910 319,513
-----------
1,734,554
Chemicals -- 0.58%
Bayer AG ......................................... 7,437 385,159
Hoechst AG ....................................... 2,440 122,782
-----------
507,941
Engineering & Construction -- 0.08%
Bilfinger & Berger AG ............................ 2,000 68,591
Health Care -- 0.14%
Rhoen-Klinikum AG ................................ 1,230 121,742
Insurance -- 0.54%
Allianz AG ....................................... 1,420 473,609
Machinery -- 0.73%
Mannesmann AG .................................... 6,220 639,779
Manufacturing -- 0.95%
Buderus AG ....................................... 78 38,930
Siemens AG ....................................... 2,664 162,710
VEBA AG .......................................... 9,375 630,822
-----------
832,462
Pharmaceuticals -- 0.64%
Gehe AG .......................................... 10,394 557,609
Retail -- 0.01%
Hornbach Baumarkt AG ............................. 200 9,837
Software -- 0.84%
SAP AG ........................................... 1,210 734,675
Telecommunications -- 0.35%
Deutsche Telekom AG .............................. 11,210 307,064
-----------
Total Germany .................................... 6,132,834
Hong Kong -- 1.13%
Banks -- 0.10%
Hang Seng Bank Ltd. .............................. 15,000 84,796
Electric -- 0.22%
CLP Holdings Ltd. ................................ 43,000 195,909
Holding Companies - Diversified -- 0.39%
Hutchison Whampoa Ltd. ........................... 64,000 337,842
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Shares Market Value
------ ------------
Common Stocks (continued)
Hong Kong (continued)
Oil & Gas Producers -- 0.11%
Hong Kong & China Gas Co. Ltd. ................... 84,500 $ 95,973
Real Estate -- 0.15%
Henderson Land Development Co. Ltd. .............. 40,000 131,905
Telecommunications -- 0.16%
Hong Kong Telecommunications Ltd. ................ 75,200 141,218
-----------
Total Hong Kong .................................. 987,643
Italy -- 5.00%
Banks -- 1.26%
Banca Commerciale Italiana ....................... 14,000 83,760
Banca di Roma (a) ................................ 207,000 431,067
Credito Italiano SpA ............................. 111,833 585,680
-----------
1,100,507
Diversified Financial Services -- 0.33%
Istituto Mobiliare Italiano SpA .................. 18,040 284,294
Food -- 0.03%
La Rinascente SpA ................................ 3,000 29,886
Insurance -- 0.86%
Assicurazioni Generali ........................... 9,600 312,301
Istituto Nazionale delle Assicurazioni ........... 64,000 181,905
Mediolanum SpA ................................... 8,108 257,375
-----------
751,581
Oil & Gas Producers -- 0.67%
ENI SpA .......................................... 83,263 545,948
Italgas SpA ...................................... 10,000 40,749
-----------
586,697
Telecommunications -- 1.85%
Telecom Italia Mobile SpA ........................ 119,601 731,708
Telecom Italia SpA ............................... 120,877 890,208
-----------
1,621,916
-----------
Total Italy ...................................... 4,374,881
Japan -- 15.03%
Auto Manufacturers -- 0.08%
Honda Motor Co. Ltd. ............................. 2,000 71,454
Auto Parts & Equipment -- 0.65%
Denso Corp. ...................................... 34,000 565,560
Building Materials -- 0.05%
Inax Corp. ....................................... 5,000 17,248
National House Industrial Co. Ltd. ............... 3,000 23,064
-----------
40,312
Chemicals -- 0.57%
Sekisui Chemical Co. Ltd. ........................ 30,000 154,046
Shares Market Value
------ ------------
Common Stocks (continued)
Japan (continued)
Chemicals (continued)
Shin-Etsu Chemical Co. Ltd. ...................... 20,000 $ 347,147
-----------
501,193
Computers -- 0.77%
Fujitsu Ltd. ..................................... 8,000 84,472
TDK Corp. ........................................ 8,000 593,043
-----------
677,515
Cosmetics & Personal Care -- 0.44%
Kao Corp. ........................................ 15,000 232,154
Shiseido Co. Ltd. ................................ 13,000 148,174
-----------
380,328
Distribution & Wholesale -- 0.38%
Mitsubishi Corp. ................................. 21,000 130,614
Sumitomo Corp. ................................... 42,000 202,604
-----------
333,218
Diversified Financial Services -- 0.49%
Nomura Securities Co. Ltd. ....................... 37,000 432,162
Electrical Components & Equipment -- 0 96%
Hitachi Ltd. ..................................... 36,000 235,626
Sharp Corp. ...................................... 7,000 56,903
Sumitomo Electric Industries ..................... 54,000 547,928
-----------
840,457
Electronics -- 1.95%
Advantest Corp. .................................. 1,310 70,678
Alps Electric Co. Ltd. ........................... 11,000 131,265
Dainippon Screen Manufacturing Co. Ltd. .......... 18,000 73,942
Fanuc Ltd. ....................................... 4,200 145,802
Kyocera Corp. .................................... 8,000 392,276
Murata Manufacturing Co. Ltd. .................... 11,000 357,995
NEC Corp. ........................................ 57,000 533,022
-----------
1,704,980
Engineering & Construction -- 0.01%
Yurtec Corp. ..................................... 2,100 12,575
Forest Products & Paper -- 0.07%
Sumitomo Forestry Co. Ltd. ....................... 11,000 61,973
Hand & Machine Tools -- 0.21%
Makita Corp. ..................................... 16,000 185,029
Home Builders -- 0.35%
Daiwa House Industry Co. Ltd. .................... 19,000 168,330
Sekisui House Ltd. ............................... 18,000 139,944
-----------
308,274
Home Furnishings -- 1.64%
Matsushita Electric Industrial Co. Ltd. .......... 35,000 564,476
Pioneer Electronic Corp. ......................... 7,000 134,158
Sony Corp. ....................................... 8,500 734,613
-----------
1,433,247
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Shares Market Value
------ ------------
Common Stocks (continued)
Japan (continued)
Household Products -- 0.02%
Sangetsu Co. Ltd. ................................ 1,000 $ 12,946
Insurance -- 0.12%
Tokio Marine & Fire Insurance Co. Ltd. ........... 10,000 103,132
Iron & Steel -- 0.04%
Tokyo Steel Manufacturing Co. Ltd. ............... 6,000 30,983
Leisure Time -- 0.04%
Sega Enterprises Ltd. ............................ 2,000 34,642
Machinery -- 0.38%
Amada Co. Ltd. ................................... 16,000 78,109
Daifuku Co. Ltd. ................................. 2,000 7,478
Komatsu Ltd. ..................................... 20,000 97,490
Komori Corp. ..................................... 8,000 152,455
-----------
335,532
Manufacturing -- 0.44%
Mitsubishi Heavy Industries Ltd. ................. 101,000 382,758
Media -- 0.23%
Toppan Printing Co. Ltd. ......................... 19,000 203,920
Office & Business Equipment -- 0.91%
Canon Inc. ....................................... 35,000 797,353
Office Furnishings -- 0.17%
Kokuyo Co. Ltd. .................................. 9,000 152,962
Pharmaceuticals -- 0.87%
Daiichi Pharmaceutical Co. Ltd. .................. 16,000 211,760
Sankyo Co. Ltd. .................................. 24,000 548,492
-----------
760,252
Real Estate -- 0.52%
Mitsui Fudosan Co. Ltd. .......................... 57,000 451,812
Retail -- 1.50%
Citizen Watch Co. Ltd. ........................... 13,000 107,651
Ito-Yokado Co. Ltd. .............................. 9,000 425,038
Marui Co. Ltd. ................................... 27,000 404,209
Seven - Eleven Japan Co. Ltd. .................... 3,000 179,215
Uny Co. Ltd. ..................................... 12,000 195,270
-----------
1,311,383
Semiconductors -- 0.19%
Tokyo Electron Ltd. .............................. 5,300 162,906
Shipbuilding -- 0.04%
Hitachi Zosen Corp. .............................. 24,000 38,880
Telecommunications -- 0.45%
DDI Corp. ........................................ 36 125,754
Nippon Telegraph & Telephone Corp. ............... 32 266,146
-----------
391,900
Shares Market Value
------ ------------
Common Stocks (continued)
Japan (continued)
Textiles -- 0.20%
Kuraray Co. Ltd. ................................. 21,000 $ 179,063
Transportation -- 0.29%
East Japan Railway Co. ........................... 54 254,632
-----------
Total Japan ...................................... 13,153,333
Mexico -- 0.53%
Beverages -- 0.09%
Grupo Modelo SA "C" .............................. 8,844 75,098
Building Materials -- 0.07%
Cemex SA ......................................... 388 1,455
Cemex SA "B" ..................................... 12,950 56,928
-----------
58,383
Diversified Financial Services -- 0.06%
Grupo Financiero Banamex Accival SA
"B" ........................................... 27,288 53,146
Grupo Financiero Banamex Accival SA
"C" ........................................... 465 766
-----------
53,912
Food -- 0.09%
Gruma SA ......................................... 18,058 39,350
Grupo Industrial Maseca SA ....................... 54,800 39,885
-----------
79,235
Forest Products & Paper -- 0.11%
Kimberly-Clark de Mexico SA ...................... 28,211 99,683
Holding Companies - Diversified -- 0.11%
Fomento Economico Mexicano SA .................... 3,126 97,410
-----------
Total Mexico ..................................... 463,721
Netherlands -- 11.20%
Banks -- 2.33%
ABN Amro Holding NV .............................. 18,270 427,821
ING Groep NV ..................................... 24,610 1,612,619
-----------
2,040,440
Chemicals -- 0.12%
Akzo Nobel NV .................................... 458 101,885
Electronics -- 0.45%
Philips Electronics NV ........................... 4,680 393,693
Entertainment -- 0.48%
PolyGram NV ...................................... 8,307 424,187
Food -- 0.81%
CSM NV ........................................... 7,206 346,342
Koninklijke Ahold NV ............................. 6,392 205,336
Koninklijke Numico NV ............................ 5,150 161,385
-----------
713,063
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Shares Market Value
------ ------------
Common Stocks (continued)
Netherlands (continued)
Household Products -- 1.12%
Unilever NV ...................................... 12,350 $ 980,588
Insurance -- 0.55%
Fortis Amev NV ................................... 8,235 482,493
Media -- 2.68%
Elsevier NV ...................................... 44,349 669,789
Wolters Kluwer NV ................................ 12,171 1,671,698
-----------
2,341,487
Oil & Gas Producers -- 2.12%
Royal Dutch Petroleum Co. ........................ 33,360 1,851,191
Semiconductors -- 0.33%
ASM Lithography Holding NV (a) ................... 9,810 290,524
Telecommunications -- 0.13%
Royal PTT Nederland NV ........................... 2,887 111,205
Transportation -- 0.08%
TNT Post Group NV (a) ............................ 2,887 73,853
-----------
Total Netherlands ................................ 9,804,609
New Zealand -- 0.20%
Building Materials -- 0.02%
Fletcher Challenge Building ...................... 16,796 20,975
Oil & Gas Producers -- 0.05%
Fletcher Challenge Energy ........................ 17,224 41,228
Telecommunications -- 0.13%
Telecom Corp. of New Zealand Ltd. ................ 23,000 95,026
Telecom Corp. of New Zealand Ltd. ................ 8,000 17,151
-----------
112,177
-----------
Total New Zealand ................................ 174,380
Norway -- 1.68%
Food -- 0.96%
Orkla ASA (a) .................................... 35,920 836,548
Manufacturing -- 0.69%
Norsk Hydro ASA .................................. 13,700 603,268
Oil & Gas Producers -- 0.02%
Saga Petroleum ASA ............................... 1,190 16,846
Transportation -- 0.01%
Bergesen d.y. ASA ................................ 650 12,382
-----------
Total Norway ..................................... 1,469,044
Portugal -- 0.46%
Retail -- 0.46%
Jeronimo Martins SA .............................. 8,346 401,205
Shares Market Value
------ ------------
Common Stocks (continued)
Singapore -- 0.15%
Media -- 0.08%
Singapore Press Holdings Ltd. .................... 10,374 $ 69,573
Telecommunications -- 0.07%
Singapore Telecommunications Ltd. ................ 41,000 58,398
-----------
Total Singapore .................................. 127,971
South Korea -- 0.06%
Electrical Components & Equipment -- 0 06%
Samsung Electronics .............................. 1,761 53,869
Spain -- 3.05%
Banks -- 1.36%
Banco Bilbao Vizcaya SA .......................... 4,090 209,901
Banco Popular Espanol SA ......................... 2,468 210,508
Banco Santander SA ............................... 22,942 587,201
Corporacion Bancaria de Espana SA ................ 8,060 180,805
-----------
1,188,415
Electric -- 0.61%
Endesa SA ........................................ 14,158 309,750
Iberdrola SA ..................................... 13,608 220,958
-----------
530,708
Oil & Gas Producers -- 0.41%
Gas Natural SDG SA ............................... 2,082 150,431
Repsol SA ........................................ 3,792 208,949
-----------
359,380
Telecommunications -- 0.67%
Telefonica SA .................................... 12,710 587,636
-----------
Total Spain ...................................... 2,666,139
Sweden -- 3.69%
Banks -- 0.63%
Nordbanken Holding AB ............................ 75,781 555,816
Distribution & Wholesale -- 0.01%
Scribona AB ...................................... 750 9,027
Engineering & Construction -- 0.22%
ABB AB "A" ....................................... 13,880 196,645
Hand & Machine Tools -- 0.28%
Sandvik AB "A" ................................... 2,090 57,779
Sandvik AB "B" ................................... 6,830 187,534
-----------
245,313
Home Furnishings -- 0.50%
Electrolux AB "B" ................................ 25,800 443,155
Household Products -- 0.06%
Esselte AB ....................................... 2,310 53,579
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Shares Market Value
------ ------------
Common Stocks (continued)
Sweden (continued)
Machinery -- 0.27%
Atlas Copco AB ................................... 8,820 $ 240,516
Metals & Mining -- 0.04%
Granges AB ....................................... 1,990 36,427
Pharmaceuticals -- 0.88%
Astra AB "B" ..................................... 38,633 770,141
Retail -- 0.77%
Hennes & Mauritz AB "B" .......................... 10,660 680,283
-----------
Total Sweden ..................................... 3,230,902
Switzerland -- 6.87%
Banks -- 1.84%
Credit Suisse Group .............................. 2,290 510,385
Schweizerischer Bankverein ....................... 1,550 577,296
Union Bank of Switzerland ........................ 1,400 521,429
-----------
1,609,110
Commercial Services -- 0.64%
Adecco SA (a) .................................... 1,243 561,455
Engineering & Construction -- 0.45%
ABB AG ........................................... 267 394,955
Food -- 1.81%
Nestle SA ........................................ 740 1,586,238
Pharmaceuticals -- 2.13%
Novartis ......................................... 643 1,071,738
Roche Holding AG ................................. 80 786,898
-----------
1,858,636
-----------
Total Switzerland ................................ 6,010,394
Thailand -- 0.06%
Banks -- 0.06%
Thai Farmers Bank Public Co. Ltd. ................ 64,000 56,493
United Kingdom -- 18.99%
Aerospace & Defense -- 0.10%
Rolls-Royce Plc .................................. 21,000 86,783
Auto Parts & Equipment -- 0.15%
GKN Plc .......................................... 10,000 127,482
Banks -- 2.96%
Abbey National Plc ............................... 32,000 569,034
National Westminster Bank Plc .................... 113,000 2,020,721
-----------
2,589,755
Beverages -- 1.60%
Diageo Plc ....................................... 118,368 1,403,237
Shares Market Value
------ ------------
Common Stocks (continued)
United Kingdom (continued)
Building Materials -- 0.26%
Caradon Plc ...................................... 69,800 $ 214,443
Heywood Williams Group Plc ....................... 3,000 13,024
-----------
227,467
Commercial Services -- 0.28%
Rank Group Plc ................................... 45,000 247,199
Electronics -- 0.19%
Electrocomponents Plc ............................ 21,000 164,799
Engineering & Construction -- 0.05%
John Laing Plc ................................... 7,000 46,167
Entertainment -- 0.23%
Ladbroke Group Plc ............................... 37,000 203,253
Food -- 2.44%
ASDA Group Plc ................................... 98,000 336,670
Cadbury Schweppes Plc ............................ 39,000 603,972
Compass Group Plc ................................ 38,000 437,161
Safeway Plc ...................................... 46,000 301,464
Tesco Plc ........................................ 47,000 459,084
-----------
2,138,351
Forest Products & Paper -- 0.09%
David S. Smith Holdings Plc (a) .................. 25,000 80,563
Holding Companies - Diversified -- 0.79%
Tomkins Plc ...................................... 128,000 695,129
Media -- 1.86%
Reed International Plc ........................... 104,000 941,177
United News & Media Plc .......................... 49,000 685,612
-----------
1,626,789
Metals & Mining -- 0.43%
Rio Tinto Plc .................................... 33,000 371,926
Oil & Gas Producers -- 1.92%
BG Plc ........................................... 27,352 158,245
British Petroleum Co. Plc ........................ 24,000 350,236
Centrica Plc (a) ................................. 14,000 23,668
Shell Transport & Trading Co. Plc ................ 163,500 1,152,043
-----------
1,684,192
Pharmaceuticals -- 3.57%
Glaxo Wellcome Plc ............................... 48,000 1,441,819
SmithKline Beecham Plc ........................... 137,400 1,678,184
-----------
3,120,003
Retail -- 1.22%
Kingfisher Plc ................................... 66,000 1,063,432
Telecommunications -- 0.85%
Cable & Wireless Plc ............................. 61,000 741,480
-----------
Total United Kingdom ............................. 16,618,007
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Shares Market Value
------ ------------
Common Stocks (continued)
United States -- 4.25%
Apparel -- 0.14%
Gucci Group NV - NYS ............................. 2,291 $ 121,423
Banks -- 0.26%
Banco de Galicia y Buenos Aires - ADR ............ 3,126 57,050
Banco Frances SA - ADR ........................... 2,147 49,246
Banco Latinoamericano de Exportaciones
SA - ADR ...................................... 477 14,667
Credicorp Ltd. ................................... 1,188 17,449
Uniao de Bancos Brasileiros SA - GDR ............. 3,055 90,123
-----------
228,535
Beverages -- 0.24%
Compania Cervecerias Unidas SA - ADR ............. 1,385 29,258
Panamerican Beverages Inc. ....................... 5,840 183,595
-----------
212,853
Building Materials -- 0.17%
Cemex SA - ADR ................................... 20,410 152,177
Electric -- 0.49%
Centrais Electricas Brasileiras SA - ADR ......... 5,000 72,410
Centrais Geradoras do Sul do Brasil SA -
ADR ........................................... 500 3,563
Chilectra SA - ADR ............................... 2,330 49,946
Companhia Energetica de Minas Gerais -
ADR ........................................... 3,176 98,295
Enersis SA - ADR ................................. 1,978 48,337
Huaneng Power International Inc. - ADR (a) ....... 11,400 153,188
-----------
425,739
Food -- 0.12%
Companhia Brasileira de Distribuicao
Grupo Pao de Acucar - ADR ..................... 3,390 76,699
Gruma SA - ADR (a) ............................... 3,106 27,375
Santa Isabel SA - ADR ............................ 319 3,509
-----------
107,583
Home Furnishings -- 0.06%
Industrie Natuzzi SpA - ADR ...................... 1,810 47,060
Media -- 0.22%
Grupo Televisa SA - GDR (a) ...................... 3,831 144,141
TV Azteca SA - ADR ............................... 4,600 49,738
-----------
193,879
Oil & Gas Producers -- 0.47%
Gazprom - ADR .................................... 3,490 39,019
LUKoil Holding - ADR ............................. 520 17,383
YPF SA - ADR ..................................... 11,748 353,174
-----------
409,576
Retail -- 0.02%
Cifra SA - ADR ................................... 1,132 15,848
Software -- 0.10%
Baan Co. NV (a) .................................. 2,500 89,375
Shares Market Value
------ ------------
Common Stocks (continued)
United States (continued)
Telecommunications -- 1.96%
Compania Anonima Nacional Telefonnos
de Venezuela - ADR (a) ........................ 2,324 $ 58,100
Mahanagar Telephone Nigam Ltd. GDR ............... 8,000 81,200
Telecomunicacoes Brasileiras SA - ADR ............ 9,422 1,028,764
Telefonica de Argentina SA - ADR ................. 4,550 147,591
Telefonica del Peru SA - ADR ..................... 1,717 35,091
Telefonos de Mexico SA - ADR ..................... 7,615 365,996
-----------
1,716,742
-----------
Total United States .............................. 3,720,790
-----------
Total Common Stocks
(cost $68,442,990) ............................... 83,612,475
-----------
Preferred Stocks -- 2.02%
Australia -- 0.21%
Leisure Time -- 0.05%
Sydney Harbour Casino Holdings Ltd. (a) .......... 70,200 40,962
Media -- 0.16%
News Corp. Ltd. .................................. 19,524 138,647
-----------
Total Australia .................................. 179,609
Brazil -- 1.15%
Banks -- 0.21%
Banco Bradesco SA ................................ 13,040,953 108,811
Banco Itau SA .................................... 124,000 70,762
-----------
179,573
Beverages -- 0.09%
Compania Cervejaria Brahma ....................... 128,894 80,242
Building Materials -- 0.01%
Companhia Cimento Portland Itau SA ............... 73,000 12,946
Electric -- 0.14%
Companhia Energetic de Minas Gerais .............. 4,052,633 126,147
Home Furnishings-- 0.01%
Brasmotor SA ..................................... 82,150 7,528
Media -- 0.00%
Empresa Nacional de Comercio Redito e
Participacoes SA .............................. 45,450 114
Oil & Gas Producers -- 0.31%
Petroleo Brasileiro SA ........................... 1,445,094 268,640
Telecommunications -- 0.38%
Telecomunicacoes de Minas Gerais SA .............. 366,959 25,542
Telecomunicacoes de Sao Paulo SA ................. 852,141 200,408
Telecomunicacoes do Rio de Janeiro SA ............ 165,546 12,453
Telemig Celular SA ............................... 366,959 11,105
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Shares Market Value
------ ------------
Preferred Stocks (continued)
Brazil (continued)
Telecommunications (continued)
Telerj Celular SA ................................ 165,546 $ 9,847
Telesp Celular SA ................................ 852,141 70,732
-----------
330,087
-----------
Total Brazil ..................................... 1,005,277
Germany -- 0.67%
Pharmaceuticals -- 0.09%
Fresenius AG ..................................... 400 75,855
Retail -- 0.11%
Fielmann AG ...................................... 336 11,747
Hornbach Holding AG .............................. 940 86,002
-----------
97,749
Software -- 0.47%
SAP AG - Vorzug .................................. 609 413,665
-----------
Total Germany .................................... 587,269
-----------
Total Preferred Stocks
(cost $1,550,284) ................................ 1,772,155
-----------
Warrants -- 0.15%
Germany -- 0.15%
Banks -- 0.15%
Dresdner Bank AG ................................. 4,783 124,651
-----------
Total Warrants
(cost $84,155) ................................... 124,651
-----------
Shares Market Value
------ ------------
Rights -- 0.00%
Australia -- 0.00%
Diversified Financial Services -- 0.00%
Colonial Ltd. .................................... 3,000 $ 689
Brazil -- 0.00%
Telecommunications -- 0.00%
Telecomunicacoes de Sao Paulo SA ................. 40,048 778
Telecomunicacoes do Rio de Janeiro SA ............ 1,493 0
-----------
Total Brazil ..................................... 778
-----------
Total Rights
(cost $1,709) .................................... 1,467
-----------
Principal Amount
----------------
Short Term Investments -- 2.29%
Money Market Fund -- 2.29%
SSgA Money Market Fund, 5.35% (b) ................ $ 2,007,614 2,007,614
-----------
Total Short Term Investments
(cost $2,007,614) ................................ 2,007,614
-----------
Total Investments -- 100%
(cost $72,086,752) ............................... $87,518,362
===========
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/MID-CAP GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Common Stocks -- 93.74%
Advertising -- 2.80%
ADVO Inc. (a) ................................. 12,400 $ 349,525
Catalina Marketing Corp. (a) .................. 27,600 1,433,475
Outdoor Systems Inc. (a) ...................... 108,962 3,050,936
-----------
4,833,936
Aerospace & Defense -- 1.26%
BE Aerospace Inc. (a) ......................... 75,000 2,184,375
Apparel -- 2.31%
Warnaco Group Inc. ............................ 94,000 3,989,125
Biotechnology -- 2.69%
Biogen Inc. (a) ............................... 62,000 3,038,000
Centocor Inc. (a) ............................. 44,500 1,613,125
-----------
4,651,125
Chemicals -- 0.80%
Great Lakes Chemical Corp. .................... 35,000 1,380,313
Commercial Services -- 5.33%
AccuStaff Inc. (a) ............................ 5,100 159,375
Cendant Corp. (a) ............................. 24,000 501,000
Corrections Corp. of America (a) .............. 51,000 1,198,500
Interim Services Inc. (a) ..................... 70,000 2,248,750
NOVA Corp. .................................... 46,500 1,662,375
Renaissance Worldwide Inc. (a) ................ 69,800 1,518,150
Romac International Inc. (a) .................. 29,700 902,138
Sodexho Marriott Services Inc. ................ 34,900 1,012,100
-----------
9,202,388
Computers -- 6.26%
Affiliated Computer Services .................. 87,000 3,349,500
Inc. (a)
Anixter International Inc. (a) ................ 44,000 838,750
CheckFree Holdings Corp. (a) .................. 45,000 1,324,687
DST Systems Inc. (a) .......................... 41,000 2,296,000
Security Dynamics Technologies
Inc. (a) ...................................... 41,500 767,750
SunGard Data Systems Inc. (a) ................. 58,000 2,225,750
-----------
10,802,437
Diversified Financial Services -- 6.09%
AMRESCO Inc. .................................. 54,000 1,572,750
Capital One Financial Corp. ................... 26,900 3,340,643
FINOVA Group Inc. ............................. 35,000 1,981,875
Franklin Resources Inc. ....................... 32,000 1,728,000
Heller Financial Inc. (a) ..................... 8,000 240,000
Waddell & Reed Financial Inc. ................. 69,000 1,651,688
-----------
10,514,956
Electronics -- 3.39%
Analog Devices Inc. (a) ....................... 66,000 1,621,125
Berg Electronics Corp. (a) .................... 73,000 1,428,063
Microchip Technology Inc. (a) ................. 42,000
1,097,250
Teleflex Inc. ................................. 45,000 1,710,000
-----------
5,856,438
Entertainment -- 1.39%
Premier Parks Inc. (a) ........................ 36,000 2,398,500
Market
Shares Value
------ -----
Common Stocks (continued)
Environmental Control -- 0.89%
USA Waste Services Inc. (a) ................... 31,000 $ 1,530,625
Food -- 3.23%
Richfood Holdings Inc. ........................ 24,800 513,050
Suiza Foods Corp. (a) ......................... 38,000 2,268,125
U.S. Foodservice (a) .......................... 80,000 2,805,000
-----------
5,586,175
Health Care -- 5.31%
Covance Inc. (a) .............................. 92,000 2,070,000
Henry Schein Inc. (a) ......................... 41,000 1,891,125
Quorum Health Group Inc. (a) .................. 70,000 1,855,000
Total Renal Care Holdings Inc. ................ 55,000 1,897,500
(a)
United States Surgical Corp. .................. 32,000 1,460,000
-----------
9,173,625
Insurance -- 4.35%
Ace Ltd. ...................................... 43,000 1,677,000
Fairfax Financial Holdings Ltd.
(Canada) ...................................... 5,100 1,940,811
PartnerRe Ltd. ................................ 41,000 2,091,000
Protective Life Corp. ......................... 49,000 1,797,688
-----------
7,506,499
Leisure Time -- 3.73%
Galileo International Inc. .................... 74,000 3,334,625
Royal Caribbean Cruises Ltd. .................. 39,000 3,100,500
-----------
6,435,125
Manufacturing -- 1.40%
Danaher Corp. ................................. 66,000 2,421,375
Media -- 3.83%
Comcast Corp. ................................. 46,000 1,867,312
Cox Communications (a) ........................ 35,000 1,695,313
Jacor Communications Inc. ..................... 28,300 1,669,700
Univision Communications Inc.
(a) ........................................... 37,200 1,385,700
-----------
6,618,025
Metals & Mining -- 1.18%
Battle Mountain Gold Co. ...................... 178,000 1,056,875
Cambior Inc. .................................. 70,000 411,250
TVX Gold Inc. ................................. 188,000 575,750
-----------
2,043,875
Oil & Gas Producers -- 3.42%
Camco International Inc. ...................... 28,400 2,211,650
Cooper Cameron Corp. (a) ...................... 19,000 969,000
Ocean Energy Inc. (a) ......................... 71,500 1,398,719
Smith International Inc. (a) .................. 38,000 1,322,875
-----------
5,902,244
Pharmaceuticals -- 7.54%
Agouron Pharmaceuticals Inc. (a) .............. 19,000 575,938
ALZA Corp. (a) ................................ 42,000 1,816,500
Dura Pharmaceuticals Inc. (a) ................. 71,000 1,588,624
Gilead Sciences Inc. (a) ...................... 49,000 1,571,063
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/MID-CAP GROWTH SERIES
SCHEDULE OF INVESTMENTS (UNAUDITED) (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Pharmaceuticals (continued)
MedImmune Inc. (a) ............................ 16,500 $1,029,188
Omnicare Inc. ................................. 49,000 1,868,124
R.P. Scherer Corp. (a) ........................ 13,800 1,223,025
Sybron International Corp. (a) ................ 71,000 1,792,750
Teva Pharmaceutical Industries
Ltd.- ADR ..................................... 44,000 1,548,250
-----------
13,013,462
Real Estate -- 1.82%
Indy Mac Mortgage Holdings Inc. ............... 61,000 1,387,750
Security Capital Group Inc. (a) ............... 66,000 1,757,250
-----------
3,145,000
Retail -- 12.77%
AutoZone Inc. (a) ............................. 70,000 2,235,624
BJ's Wholesale Club Inc. (a) .................. 50,000 2,031,250
Circuit City Stores ........................... 55,300 2,592,187
Corporate Express Inc. (a) .................... 163,000 2,068,063
Costco Cos. Inc. (a) .......................... 33,000 2,081,062
Fred Meyer Inc. (a) ........................... 42,000 1,785,000
General Nutrition Cos. Inc. (a) ............... 52,000 1,618,500
Gymboree Corp. (a) ............................ 46,000 697,188
Kohl's Corp. (a) .............................. 34,000 1,763,750
MSC Industrial Direct Co. ..................... 59,600 1,698,600
Outback Steakhouse Inc. (a) ................... 47,000 1,833,000
ShopKo Stores Inc. ............................ 48,500 1,649,000
-----------
22,053,224
Semiconductors -- 2.43%
Maxim Integrated Products Inc.
(a) ........................................... 50,000 1,584,375
PMC - Sierra Inc. (a) ......................... 28,000 1,312,500
Xilinx Inc. (a) ............................... 38,000 1,292,000
-----------
4,188,875
Software -- 5.81%
Acxiom Corp. (a) .............................. 16,400 408,975
BMC Software Inc. (a) ......................... 30,000 1,558,125
Learning Co. Inc. (a) ......................... 18,100 536,213
National Data Corp. ........................... 44,000 1,925,000
Market
Shares Value
------ -----
Common Stocks (continued)
Software (continued)
Network Associates Inc. (a) ................... 34,500 $ 1,651,687
Sterling Commerce Inc. (a) .................... 41,000 1,988,500
Synopsys Inc. (a) ............................. 43,000 1,967,250
-----------
10,035,750
Telecommunications -- 3.71%
Omnipoint Corp. (a) ........................... 79,000 1,812,062
Paging Network Inc. (a) ....................... 140,000 1,960,000
Vanguard Cellular Systems Inc.
(a) ........................................... 21,700 409,588
Western Wireless Corp. (a) .................... 112,000 2,233,000
-----------
6,414,650
-----------
Total Common Stocks
(cost $126,560,006) ....................... 161,882,122
-----------
Principal
Amount
------
Short Term Investments -- 6.26%
Money Market Fund -- 0.00%
SSgA Money Market Fund, 5.35% (b .............. $ 1,476 1,476
U.S. Government Agencies -- 6.26%
Federal Home Loan Bank Discount
Note,
5.49%, 07/06/1998 .......................... 9,763,000 9,755,555
Federal Home Loan Mortgage Corp. ..............
Discount Note, 5.40%,
07/10/1998 ................................. 1,051,000 1,049,581
-----------
10,805,136
-----------
Total Short Term Investments
(cost $10,806,612) ........................ 10,806,612
-----------
Total Investments -- 100%
(cost $137,366,618) ........................... $172,688,734
============
- -------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate is
the quoted yield as of June 30, 1998.
<PAGE>
JNL/S&P CONSERVATIVE GROWTH SERIES I
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
JNL Global Equities Series ................. 4,044 $ 89,567
JNL/Eagle Core Equity Series ............... 17,388 264,302
JNL/Putnam Growth Series ................... 8,749 182,338
JNL/Putnam Value Equity Series ............. 9,515 173,465
PPM America/JNL Money Market Series ........ 87,012 87,013
PPM America/JNL High Yield Bond Series ..... 21,626 261,028
Salomon Brothers/JNL Global Bond Series .... 30,449 347,122
T. Rowe Price/JNL Established Growth Series 4,848 88,768
T. Rowe Price/JNL Mid-Cap Growth Series .... 13,341 270,281
--------------
Total Investments -- 100%
(cost $1,738,231) .......................... $ 1,763,884
==============
JNL/S&P MODERATE GROWTH SERIES I
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
JNL Global Equities Series ................. 7,844 $ 173,739
JNL/Eagle Core Equity Series ............... 16,881 256,590
JNL/Putnam Growth Series ................... 12,780 266,343
JNL/Putnam Value Equity Series ............. 9,197 167,659
PPM America/JNL High Yield Bond Series ..... 7,013 84,642
Salomon Brothers/JNL Global Bond Series .... 29,641 337,911
T. Rowe Price/JNL Established Growth Series 4,703 86,104
T. Rowe Price/JNL Mid-Cap Growth Series .... 17,245 349,390
--------------
Total Investments -- 100%
(cost $1,690,601) .......................... $1,722,378
==============
JNL/S&P AGGRESSIVE GROWTH SERIES I
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
JNL Aggressive Growth Series ............... 2,816 $ 53,190
JNL Global Equities Series ................. 4,667 103,382
JNL/Alger Growth Series .................... 3,151 53,473
JNL/Eagle Core Equity Series ............... 6,671 101,395
JNL/Putnam Growth Series ................... 10,111 210,705
JNL/Putnam Value Equity Series ............. 8,185 149,209
Salomon Brothers/JNL Global Bond Series .... 8,775 100,040
T. Rowe Price/JNL Mid-Cap Growth Series .... 12,735 258,010
--------------
Total Investments -- 100%
(cost $1,000,973) .......................... $1,029,404
==============
See notes to the financial statements.
<PAGE>
JNL/S&P VERY AGGRESSIVE GROWTH SERIES I
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
JNL Aggressive Growth Series ............... 7,906 $149,338
JNL Global Equities Series ................. 1,636 36,238
JNL/Alger Growth Series .................... 2,187 37,113
JNL/Eagle Core Equity Series ............... 11,741 178,460
JNL/Putnam Growth Series ................... 8,797 183,328
T. Rowe Price/JNL International Equity
Investment Series ....................... 2,577 35,358
T. Rowe Price/JNL Mid-Cap Growth Series..... 5,386 109,129
--------------
Total Investments -- 100%
(cost $704,284) ............................ $728,964
==============
JNL/S&P EQUITY GROWTH SERIES I
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
JNL Global Equities Series ................. 5,519 $122,254
JNL/Eagle Core Equity Series ............... 7,892 119,958
JNL/Eagle SmallCap Equity Series ........... 3,589 57,318
JNL/Putnam Growth Series ................... 5,957 124,134
JNL/Putnam Value Equity Series ............. 25,763 469,657
T. Rowe Price/JNL Established Growth Series 9,877 180,852
T. Rowe Price/JNL Mid-Cap Growth Series .... 5,999 121,543
--------------
Total Investments -- 100%
(cost $1,190,061) .......................... $1,195,716
==============
JNL/S&P EQUITY AGGRESSIVE GROWTH SERIES I
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
JNL Aggressive Growth Series ............... 3,442 $65,022
JNL Global Equities Series ................. 1,401 31,023
JNL/Eagle Core Equity Series ............... 8,073 122,715
JNL/Eagle SmallCap Equity Series ........... 1,853 29,586
JNL/Putnam Growth Series ................... 7,655 159,528
JNL/Putnam Value Equity Series ............. 1,652 30,125
T. Rowe Price/JNL International Equity
Investment Series ....................... 2,205 30,246
T. Rowe Price/JNL Mid-Cap Growth Series .... 7,748 156,970
--------------
Total Investments -- 100%
(cost $606,833) ............................ $625,215
==============
See notes to the financial statements.
<PAGE>
JNL/S&P CONSERVATIVE GROWTH SERIES II
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
Goldman Sachs/JNL Growth & Income Series ... 57,031 $555,480
JNL Global Equities Series ................. 5,590 123,822
JNL/PIMCO Total Return Bond Series ......... 23,379 241,504
JNL/Putnam Growth Series ................... 5,852 121,951
JNL/Putnam Value Equity Series ............. 6,250 113,938
Lazard/JNL Mid Cap Value Series ............ 11,424 110,467
Salomon Brothers/JNL Balanced Series ....... 45,480 465,259
Salomon Brothers/JNL Global Bond Series .... 40,993 467,322
Salomon Brothers/JNL High Yield Bond Series 11,592 117,543
--------------
Total Investments -- 100%
(cost $2,334,837) .......................... $2,317,286
==============
JNL/S&P MODERATE GROWTH SERIES II
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
Goldman Sachs/JNL Growth & Income Series ... 33,018 $321,599
JNL Global Equities Series ................. 4,000 88,606
JNL/Alliance Growth Series ................. 7,929 89,435
JNL/Putnam Growth Series ................... 8,449 176,073
Lazard/JNL Mid Cap Value Series ............ 24,790 239,722
Salomon Brothers/JNL Balanced Series ....... 24,516 250,797
Salomon Brothers/JNL Global Bond Series .... 22,080 251,712
Salomon Brothers/JNL High Yield Bond Series 16,645 168,781
T. Rowe Price/JNL Mid-Cap Growth Series .... 4,200 85,094
--------------
Total Investments -- 100%
(cost $1,677,257) .......................... $1,671,819
==============
JNL/S&P AGGRESSIVE GROWTH SERIES II
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
Goldman Sachs/JNL Growth & Income Series ... 5,841 $56,895
JNL Global Equities Series ................. 1,410 31,233
JNL/Alliance Growth Series ................. 1,395 15,731
JNL/Putnam Growth Series ................... 1,486 30,964
Lazard/JNL Mid Cap Value Series ............ 7,309 70,677
Lazard/JNL Small Cap Value Series .......... 1,465 14,127
Salomon Brothers/JNL Balanced Series ....... 2,876 29,426
Salomon Brothers/JNL Global Bond Series .... 1,294 14,752
Salomon Brothers/JNL High Yield Bond Series 1,463 14,838
T. Rowe Price/JNL Mid-Cap Growth Series .... 741 15,007
--------------
Total Investments -- 100%
(cost $294,915) ............................ $293,650
==============
See notes to the financial statements.
<PAGE>
JNL/S&P VERY AGGRESSIVE GROWTH SERIES II
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
Goldman Sachs/JNL Growth & Income Series ... 2,394 $23,317
JNL Global Equities Series ................. 1,170 25,909
JNL/Alliance Growth Series ................. 5,774 65,128
JNL/Putnam Growth Series ................... 3,069 63,961
Lazard/JNL Mid Cap Value Series ............ 6,000 58,016
T. Rowe Price/JNL Mid-Cap Growth Series .... 610 12,355
--------------
Total Investments -- 100%
(cost $244,322) ............................ $248,686
==============
JNL/S&P EQUITY GROWTH SERIES II
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
Goldman Sachs/JNL Growth & Income Series ... 11,396 $111,000
JNL Global Equities Series ................. 2,146 47,532
JNL/Alliance Growth Series ................. 2,129 24,016
JNL/Putnam Growth Series ................... 3,428 71,449
JNL/Putnam Value Equity Series ............. 3,702 67,495
Lazard/JNL Mid Cap Value Series ............ 11,444 110,660
Lazard/JNL Small Cap Value Series .......... 2,300 22,167
--------------
Total Investments -- 100%
(cost $455,074) ............................ $454,319
==============
JNL/S&P EQUITY AGGRESSIVE GROWTH SERIES II
SCHEDULE OF INVESTMENTS (UNAUDITED)
June 30, 1998
Market
Shares Value
------ -----
Investment Company Securities -- 100%
Goldman Sachs/JNL Growth & Income Series ... 5,819 $56,681
JNL Global Equities Series ................. 1,140 25,256
JNL/Alliance Growth Series ................. 3,376 38,083
JNL/Putnam Growth Series ................... 1,794 37,379
Lazard/JNL Mid Cap Value Series ............ 5,836 56,429
Lazard/JNL Small Cap Value Series .......... 1,166 11,240
T. Rowe Price/JNL Mid-Cap Growth Series .... 593 12,008
--------------
Total Investments -- 100%
(cost $237,884) ............................ $237,076
==============
See notes to the financial statements.
<PAGE>
JNL SERIES TRUST
FINANCIAL STATEMENTS
DECEMBER 31, 1997
<PAGE>
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 each of the sixteen Series
comprising the JNL Series Trust (hereafter referred to as the "Trust") at
December 31, 1997, 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, 1997 by correspondence with the custodian 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
/s/ Price Waterhouse LLP
Chicago, Illinois
February 6, 1998
<PAGE>
JNL SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1997
<TABLE>
<CAPTION>
JNL JNL JNL JNL/Eagle JNL/Eagle
Aggressive Capital Global JNL/Alger Core SmallCap
Growth Growth Equities Growth Equity Equity
Series Series Series Series Series Series
---------- ------- ------ --------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ..... $ 75,870,116 $ 61,149,807 $133,760,561 $ 76,262,289 $ 10,563,803 $ 12,913,464
============ ============ ============ ============ ============ ============
Investments in securities, at value .... $ 81,703,080 $ 73,937,968 $150,681,907 $ 88,020,185 $ 12,065,928 $ 14,348,909
Cash ................................... 59,059 95,038 206,832 -- -- --
Foreign currency ....................... 89,557 67,392 1,835,596 -- -- --
Receivables:
Dividends and interest .............. 14,373 18,713 38,203 54,156 22,281 7,387
Forward foreign currency
exchange contracts ............... 158,994 116,139 1,021,803 -- -- --
Foreign taxes recoverable ........... 4,500 2,413 71,498 -- 94 --
Fund shares sold .................... 36,940 61,370 102,179 55,105 7,839 8,334
Investment securities sold .......... 1,258,072 1,456,301 448,313 2,357,713 200,611 --
Reimbursement from Adviser .......... 5,405 -- 99,547 -- -- 1,639
------------ ------------ ------------ ------------ ------------ ------------
Total assets ........................... 83,329,980 75,755,334 154,505,878 90,487,159 12,296,753 14,366,269
------------ ------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment advisory fees ............ 61,473 57,061 125,168 69,069 8,712 10,337
Forward foreign currency
exchange contracts ............... 170,192 131,856 1,079,888 -- -- --
Fund shares redeemed ................ 44,413 20,726 529,720 42,647 404 461
Investment securities purchased ..... 4,178,454 1,776,524 1,694,928 4,477,557 378,644 850,034
Reverse repurchase agreements .......... -- -- -- -- -- --
Call options written, at value
(Premiums received $1,038) .......... -- -- -- -- 581 --
Other liabilities ...................... 5,104 20,368 25,899 21,039 11,944 12,058
------------ ------------ ------------ ------------ ------------ ------------
Total liabilities ...................... 4,459,636 2,006,535 3,455,603 4,610,312 400,285 872,890
------------ ------------ ------------ ------------ ------------ ------------
Net assets ............................. $ 78,870,344 $ 73,748,799 $151,050,275 $ 85,876,847 $ 11,896,468 $ 13,493,379
============ ============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ........................ $ 72,393,224 $ 61,090,023 $135,778,668 $ 73,023,895 $ 10,355,280 $ 11,860,477
Undistributed net investment income .... 381,611 -17,785 633,816 -- 133 390
Accumulated net realized gain (loss)
on investments and foreign
currency related items .............. 271,967 -94,586 -2,217,633 1,095,056 38,471 197,067
Net unrealized appreciation
(depreciation) on:
Investments ......................... 5,832,964 12,788,161 16,921,346 11,757,896 1,502,125 1,435,445
Foreign currency related items ...... -9,422 -17,014 -65,922 -- 2 --
Options written ..................... -- -- -- -- 457 --
------------ ------------ ------------ ------------ ------------ ------------
Net assets ............................. $ 78,870,344 $ 73,748,799 $151,050,275 $ 85,876,847 $ 11,896,468 $ 13,493,379
============ ============ ============ ============ ============ ============
Total shares outstanding (no par
value), unlimited shares
authorized .......................... 5,426,451 4,469,585 8,642,845 6,333,265 865,023 916,112
============ ============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share .......... $ 14.53 $ 16.50 $ 17.48 $ 13.56 $ 13.75 $ 14.73
============ ============ ============ ============ ============ ============
</TABLE>
See notes to the financial statements.
<PAGE>
JNL SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES (continued)
<TABLE>
<CAPTION>
PPM PPM
JNL/Putnam PPM America/JNL America/JNL
JNL/Putnam Value America/JNL High Yield Money
Growth Equity Balanced Bond Market
Series Series Series Series Series
---------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ..... $ 74,166,450 $103,480,721 $ 55,447,930 $ 59,533,930 $ 41,810,074
============ ============ ============ ============ ============
Investments in securities, at value .... $ 84,739,666 $109,198,012 $ 59,053,344 $ 61,303,164 $ 41,810,074
Cash ................................... -- -- -- -- --
Foreign currency ....................... -- -- -- -- --
Receivables:
Dividends and interest .............. 73,895 208,562 513,740 1,278,353 8
Forward foreign currency
exchange contracts ............... -- -- -- -- --
Foreign taxes recoverable ........... -- 2,122 -- -- --
Fund shares sold .................... 360,342 293,429 199,767 190,180 41,732
Investment securities sold .......... 249,901 2,521,449 -- -- --
Reimbursement from Adviser .......... -- 19,709 -- -- --
------------ ------------ ------------ ------------ ------------
Total assets ........................... 85,423,804 112,243,283 59,766,851 62,771,697 41,851,814
------------ ------------ ------------ ------------ ------------
Liabilities
Payables:
Investment advisory fees ............ 60,730 78,326 36,101 37,515 20,397
Forward foreign currency
exchange contracts ............... -- -- -- -- --
Fund shares redeemed ................ 7,744 12,106 19,480 7,756 9,949
Investment securities purchased ..... 1,728,693 3,573,732 -- -- --
Reverse repurchase agreements .......... -- -- -- -- --
Call options written, at value
(Premiums received $1,038) .......... -- -- -- -- --
Other liabilities ...................... 14,185 14,097 16,779 14,762 13,621
------------ ------------ ------------ ------------ ------------
Total liabilities ...................... 1,811,352 3,678,261 72,360 60,033 43,967
------------ ------------ ------------ ------------ ------------
Net assets ............................. $ 83,612,452 $108,565,022 $ 59,694,491 $ 62,711,664 $ 41,807,847
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ........................ $ 72,727,429 $102,587,093 $ 55,882,345 $ 60,738,884 $ 41,807,847
Undistributed net investment income .... 85,266 7,901 11,253 4,258 --
Accumulated net realized gain (loss)
on investments and foreign
currency related items .............. 226,541 252,737 195,479 199,288 --
Net unrealized appreciation (depreciation) on:
Investments ......................... 10,573,216 5,717,291 3,605,414 1,769,234 --
Foreign currency related items ...... -- -- -- -- --
Options written ..................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net assets ............................. $ 83,612,452 $108,565,022 $ 59,694,491 $ 62,711,664 $ 41,807,847
============ ============ ============ ============ ============
Total shares outstanding (no par
value), unlimited shares
authorized .......................... 4,922,609 6,453,704 4,570,872 5,462,564 41,807,847
============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share .......... $ 16.99 $ 16.82 $ 13.06 $ 11.48 $ 1.00
============ ============ ============ ============ ============
</TABLE>
See notes to the financial statements.
<PAGE>
JNL SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES (continued)
<TABLE>
<CAPTION>
T. Rowe
Salomon Salomon T. Rowe Price/JNL T. Rowe
Brothers/JNL Brothers/JNL Price/JNL International Price/JNL
Global U.S. Government Established Equity Mid-Cap
Bond & Quality Bond Growth Investment Growth
Series Series Series Series Series
------------ ------------ --------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Assets
Investments in securities, at cost ..... $ 39,448,629 $ 31,752,904 $106,678,983 $ 73,454,612 $107,647,880
============ ============ ============ ============ ============
Investments in securities, at value .... $ 40,329,980 $ 32,441,788 $124,278,380 $ 78,308,997 $127,413,759
Cash ................................... -- 13,800 -- 1,329 --
Foreign currency ....................... 2,554 -- 39,663 318,604 262
Receivables:
Dividends and interest .............. 574,455 229,508 123,061 72,767 31,566
Forward foreign currency
exchange contracts ............... 44,231 -- -- 4 --
Foreign taxes recoverable ........... 255 -- 7,038 67,255 314
Fund shares sold .................... 23,222 39,788 183,864 32,831 142,538
Investment securities sold .......... -- 1,049,239 452,165 8 688,164
Reimbursement from Adviser .......... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total assets ........................... 40,974,697 33,774,123 125,084,171 78,801,795 128,276,603
------------ ------------ ------------ ------------ ------------
Payables:
Investment advisory fees ............ 25,793 14,412 85,195 72,103 97,412
Forward foreign currency
exchange contracts ............... 7,663 -- 52 -- --
Fund shares redeemed ................ 3,339 971 20,483 12,651 51,353
Investment securities purchased ..... 4,159,327 5,889,298 939,418 6 1,057,297
Reverse repurchase agreements .......... -- 2,467,500 -- -- --
Call options written, at value
(Premiums received $1,038) .......... -- -- -- -- --
Other liabilities ...................... 53,743 13,409 17,079 32,387 18,272
------------ ------------ ------------ ------------ ------------
Total liabilities ...................... 4,249,865 8,385,590 1,062,227 117,147 1,224,334
------------ ------------ ------------ ------------ ------------
Net assets ............................. $ 36,724,832 $ 25,388,533 $124,021,944 $ 78,684,648 $127,052,269
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ........................ $ 35,827,391 $ 24,671,400 $105,652,218 $ 74,767,969 $105,943,206
Undistributed net investment income .... -15,879 5,716 57,546 -69,263 --
Accumulated net realized gain (loss)
on investments and foreign
currency related items .............. -3,325 22,533 723,591 -866,483 1,343,181
Net unrealized appreciation
(depreciation) on:
Investments ......................... 881,351 688,884 17,589,318 4,854,385 19,765,879
Foreign currency related items ...... 35,294 -- -729 -1,960 3
Options written ..................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net assets ............................. $ 36,724,832 $ 25,388,533 $124,021,944 $ 78,684,648 $127,052,269
============ ============ ============ ============ ============
Total shares outstanding (no par
value), unlimited shares
authorized .......................... 3,302,198 2,374,135 7,937,589 6,506,743 7,315,779
============ ============ ============ ============ ============
Net asset value, offering and
redemption price per share .......... $ 11.12 $ 10.69 $ 15.62 $ 12.09 $ 17.37
============ ============ ============ ============ ============
</TABLE>
See notes to the financial statements.
<PAGE>
JNL SERIES TRUST
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1997
<TABLE>
<CAPTION>
JNL JNL JNL JNL/Eagle JNL/Eagle
Aggressive Capital Global JNL/Alger Core SmallCap JNL/Putnam
Growth Growth Equities Growth Equity Equity Growth
Series Series Series Series Series Series Series
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Dividends..................... $317,704 $190,645 $1,191,385 $412,080 $121,218 $17,870 $587,612
Interest...................... 561,415 275,125 504,175 241,637 19,111 23,809 205,211
Foreign tax withholding....... (11,071) (8,037) (132,482) (2,212) (874) (131) (5,344)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment
income........................ 868,048 457,733 1,563,078 651,505 139,455 41,548 787,479
----------- ----------- ----------- ----------- ----------- ----------- -----------
Expenses
Investment advisory fees...... 555,594 545,552 1,054,206 616,473 61,251 70,893 491,147
Custodian fees................ 73,243 36,073 304,044 12,613 7,078 2,576 22,877
Portfolio accounting fees..... 22,011 22,011 38,503 24,279 24,090 24,090 24,279
Professional fees............. 21,124 21,043 34,660 24,080 9,455 10,855 23,260
Other......................... 11,464 12,911 14,155 18,735 3,201 3,901 10,354
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total operating expenses......... 683,436 637,590 1,445,568 696,180 105,075 112,315 571,917
Less:
Reimbursement from Adviser.... 40,117 5,898 232,508 - 33,615 30,228 -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net operating expenses before
interest expense and dividends
on short positions............ 643,319 631,692 1,213,060 696,180 71,460 82,087 571,917
----------- ----------- ----------- ----------- ----------- ----------- -----------
Interest expense.............. - - - - - - 13,626
Dividends on short positions.. - - - - - - 32,300
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net expenses..................... 643,319 631,692 1,213,060 696,180 71,460 82,087 617,843
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net investment income (loss)..... 224,729 (173,959) 350,018 (44,675) 67,995 (40,539) 169,636
----------- ----------- ----------- ----------- ----------- ----------- -----------
Realized and unrealized gains
(losses)
Net realized gain (loss) on:
Investments................... 3,168,146 250,781 2,376,160 5,005,844 237,222 247,335 408,288
Foreign currency related items 149,464 (105,156) 1,151,326 - - (2) (4)
Options written............... - - - - (4,015) - -
Short transactions............ - - - - - - 651,873
Futures transactions.......... (10,119) - (47,529) - - - -
Net change in unrealized
appreciation(depreciation) on:
Investments................... 3,997,177 10,161,826 10,283,961 8,093,212 1,422,396 1,221,736 10,282,868
Foreign currency related items (5,389) 55,218 (207,133) - 2 - -
Optionswritten................ - - - - 914 - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net realized and unrealized gains 7,299,279 10,362,669 13,556,785 13,099,056 1,656,519 1,469,069 11,343,025
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations..... $7,524,008 $10,188,710 $13,906,803 $13,054,381 $1,724,514 $1,428,530 $11,512,661
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
PPM PPM Salomon
JNL/Putnam PPM America/JNL America/JNL Salomon Brothers/JNL
Value America/JNL High Yield Money Brothers/JNL U.S. Government
Equity Balanced Bond Market Global Bond & Quality Bond
Series Series Series Series Series Series
----------- -------------- ------------- -------------- -------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Investment income
Dividends..................... $1,223,694 $459,157 $44,134 - - -
Interest...................... 150,694 1,468,519 3,295,272 1,958,419 1,966,487 1,171,785
Foreign tax withholding....... (8,094) (716) - - - -
Total investment ----------- -------------- ------------- -------------- -------------- -----------------
income........................ 1,366,294 1,926,960 3,339,406 1,958,419 1,966,487 1,171,785
----------- -------------- ------------- -------------- -------------- -----------------
Expenses
Investment advisory fees...... 487,619 324,299 276,133 207,184 213,262 118,459
Custodian fees................ 61,800 14,607 11,299 11,699 17,464 5,314
Portfolio accounting fees..... 24,279 24,468 24,279 24,468 20,128 22,578
Professional fees............. 21,790 15,053 14,128 11,742 11,419 10,446
Other......................... 8,803 8,998 7,623 7,093 5,992 5,315
----------- -------------- ------------- -------------- -------------- -----------------
Total operating expenses......... 604,291 387,425 333,462 262,186 268,265 162,112
Less:
Reimbursement from Adviser.... 33,369 1,041 1,995 3,206 17,369 18,269
----------- -------------- ------------- -------------- -------------- -----------------
Net operating expenses before
interest expense and dividends
on short positions............ 570,922 386,384 331,467 258,980 250,896 143,843
----------- -------------- ------------- -------------- -------------- -----------------
Interest expense.............. - - - - 2,869 14,647
Dividends on short positions.. - - - - - -
----------- -------------- ------------- -------------- -------------- -----------------
Net expenses..................... 570,922 386,384 331,467 258,980 253,765 158,490
----------- -------------- ------------- -------------- -------------- -----------------
Net investment income (loss)..... 795,372 1,540,576 3,007,939 1,699,439 1,712,722 1,013,295
----------- -------------- ------------- -------------- -------------- -----------------
Realized and unrealized gains
(losses)
Net realized gain (loss) on:
Investments................... 4,469,530 2,477,967 1,066,669 - 76,786 13,329
Foreign currency related items (3) - - - 74,761 -
Options written............... - - - - - -
Short transactions............ - - - - - -
Futures transactions.......... - - - - - -
Net change in unrealized
appreciation (depreciation) on:
Investments................... 3,766,196 2,991,325 1,355,284 - 677,987 639,103
Foreign currency related items - - - - - -
Options written............... - - - - - -
----------- -------------- ------------- -------------- -------------- -----------------
Net realized and unrealized gains 8,235,723 5,469,292 2,421,953 - 880,489 652,432
----------- -------------- ------------- -------------- -------------- -----------------
Net increase in net assets
resulting from operations..... $9,031,095 $7,009,868 $5,429,892 $1,699,439 $2,593,211 $1,665,727
=========== =============== ============ ============== ============== =================
</TABLE>
See notes to the financial statements.
<PAGE>
<TABLE>
<CAPTION>
T. Rowe
T. Rowe Price/JNL T. Rowe
Price/JNL International Price/JNL
Established Equity Mid-Cap
Growth Investment Growth
Series Series Series
------ ------ ------
<S> <C> <C> <C>
Investment income
Dividends ...................... $ 840,106 $1,305,682 $ 251,866
Interest ....................... 277,139 194,449 462,710
Foreign tax withholding ........ (25,079) (150,818) (1,014)
---------- ---------- ----------
Total investment income ........... 1,092,166 1,349,313 713,562
---------- ---------- ----------
Expenses ..........................
Investment advisory fees ....... 657,716 742,729 841,570
Custodian fees ................. 37,046 79,709 25,953
Portfolio accounting fees ...... 22,200 38,573 23,712
Professional fees .............. 27,781 25,067 32,914
Other .......................... 13,067 13,873 17,265
---------- ---------- ----------
Total operating expenses .......... 757,810 899,951 941,414
Less:
Reimbursement from Adviser ..... -- 53,287 --
---------- ---------- ----------
Net operating expenses before
interest expense and dividends .
on short positions ............. 757,810 846,664 941,414
Interest expense ............... --
Dividends on short positions ... -- -- --
---------- ---------- ----------
Net expenses ...................... 757,810 846,664 941,414
---------- ---------- ----------
Net investment income (loss) ...... 334,356 502,649 (227,852)
---------- ---------- ----------
Realized and unrealized gains
(losses)
Net realized gain (loss) on:
Investments .................... 5,371,177 513,591 3,012,259
Foreign currency related items (22,021) (43,913) (9,918)
Options written................. -- -- --
Short transactions.............. -- -- --
Futures transactions............ -- -- --
Net change in unrealized
appreciation (depreciation) on:
Investments .................... 13,594,661 (279,483) 14,655,100
Foreign currency related items (785) (5,020) 3
Options written................. -- -- --
---------- ---------- ----------
Net realized and unrealized gains.. 18,943,032 185,175 17,657,444
---------- ---------- ----------
Net increase in net assets
resulting from operations ...... $19,277,388 $687,824 $17,429,592
=========== ========== ===========
</TABLE>
See notes to the financial statements.
<PAGE>
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
April 1, April 1, April 1,
Year ended 1996 to Year ended 1996 to Year ended 1996 to
December 31, December 31, December 31, December 31, December 31, December 31,
1997 1996 1997 1996 1997 1996
------------ ------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........ $ 224,729 $ 119,340 $ 173,959) $ 163,301 $ 350,018 $ 92,001
Net realized gain (loss) on:
Investments ...................... 3,158,027 602,416 250,781 (221,942) 2,328,631 1,196,113
Foreign currency related
items ......................... 149,464 9,765 (105,156) 28,945 1,151,326 (2,943)
Net change in unrealized
appreciation (depreciation) on:
Investments ...................... 3,997,177 999,505 10,161,826 872,041 10,283,961 4,236,085
Foreign currency related
items ......................... (5,389) (4,062) 55,218 (71,967) (207,133) 128,253
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets
from operations .................. 7,524,008 1,726,964 10,188,710 770,378 13,906,803 5,649,509
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net investment income .......... -- (104,404) (82,884) (3) -- (238,326)
From net realized gains on
investment transactions .......... (2,833,974) (1,470,576) (157,215) (390,495) (5,237,204) (2,687,572)
Return of capital ................... -- (289,382) (331,198) -- -- (955,663)
------------ ------------ ------------ ------------ ------------ ------------
Total distributions to
shareholders ..................... (2,833,974) (1,864,362) (571,297) (390,498) (5,237,204) (3,881,561)
------------ ------------ ------------ ------------ ------------ ------------
Share transactions:
Proceeds from the sale of
shares ........................... 54,409,351 26,877,906 40,823,421 34,276,844 109,725,346 38,726,566
Reinvestment of distributions ....... 2,776,615 1,746,593 557,860 374,294 5,176,815 3,277,573
Cost of shares redeemed ............. (12,560,301) (7,459,511) (14,196,046) (7,662,400) (21,159,959) (11,274,162)
Net increase in net assets
from share transactions .......... 44,625,665 21,164,988 27,185,235 26,988,738 93,742,202 30,729,977
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets ............. 49,315,699 21,027,590 36,802,648 27,368,618 102,411,801 32,497,925
Net assets beginning of
period .............................. 29,554,645 8,527,055 36,946,151 9,577,533 48,638,474 16,140,549
------------ ------------ ------------ ------------ ------------ ------------
Net assets end of period ............... $ 78,870,344 $ 29,554,645 $ 73,748,799 $ 36,946,151 $151,050,275 $ 48,638,474
============ ============ ============ ============ ============ ============
Undistributed net
investment income (loss) ............ $ 381,611 $ 7,694 $ (17,785) $ 133,876 $ 633,816 $ (149,359)
============ ============ ============ ============ ============ ============
</TABLE>
- ----------
*Commencement of operations.
See notes to the financial statements.
<PAGE>
JNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
JNL/Eagle Core JNL/Eagle SmallCap
JNL/Alger Growth Series Equity Series Equity SerieS
---------------------------- -------------------------- ---------------------------
Period from Period from Period from
April 1, September 16, September 16,
Year ended 1996 to Year ended 1996* to Year ended 1996* to
December 31, December 31, December 31, December 31, December 31, December 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........ $ (44,675) $ (3,590) $ 67,995 $ 4,657 $ (40,539) $ (1,017)
Net realized gain (loss) on:
Investments ...................... 5,005,844 (523,886) 233,207 (4,427) 247,335 (9,337)
Foreign currency related
items ......................... -- -- -- -- (2) --
Net change in unrealized
appreciation (depreciation) on:
Investments ...................... 8,093,212 3,281,071 1,423,310 79,272 1,221,736 213,709
Foreign currency related
items ......................... -- -- 2 -- -- --
------------ ------------ ------------ ------------ ------------- ------------
Net increase in net assets
from operations .................. 13,054,381 2,753,595 1,724,514 79,502 1,428,530 203,355
------------ ------------ ------------ ------------ ------------- ------------
Distributions to shareholders:
From net investment income .......... -- -- (67,862) (4,657) -- --
From net realized gains on
investment transactions .......... (3,165,534) -- (190,309) -- -- --
Return of capital ................... -- -- -- (320) -- --
------------ ------------ ------------ ------------ ------------- ------------
Total distributions to
shareholders ..................... (3,165,534) -- (258,171) (4,977) -- --
------------ ------------ ------------ ------------ ------------- ------------
Share transactions:
Proceeds from the sale of
shares ........................... 45,948,085 34,332,656 8,561,855 2,027,399 12,054,510 1,760,997
Reinvestment of distributions ....... 3,096,106 -- 227,752 2,270 -- --
Cost of shares redeemed ............. (11,308,282) (7,483,397) (313,679) (149,997) (1,933,750) (20,263)
------------ ------------ ------------ ------------ ------------- ------------
Net increase in net assets
from share transactions .......... 37,735,909 26,849,259 8,475,928 1,879,672 10,120,760 1,740,734
------------ ------------ ------------ ------------ ------------- ------------
Net increase in net assets ............. 47,624,756 29,602,854 9,942,271 1,954,197 11,549,290 1,944,089
Net assets beginning of
period .............................. 38,252,091 8,649,237 1,954,197 -- 1,944,089 --
------------ ------------ ------------ ------------ ------------- ------------
Net assets end of period ............... $ 85,876,847 $ 38,252,091 $ 11,896,468 $ 1,954,197 $ 13,493,379 $ 1,944,089
============ ============ ============ ============ ============= ============
Undistributed net
investment income (loss) ............ $ -- $ -- $ 133 $ -- $ 390 $ --
============ ============ ============ ============ ============= ============
</TABLE>
- ----------
* Commencement of operations.
See notes to financial statements.
<PAGE>
JNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
JNL/Putnam JNL/Putnam Value PPM America/JNL
Growth Series Equity Series Balanced Series
--------------------------- ---------------------------- ----------------------------
Period from Period from Period from
April 1, April 1, April 1,
Year ended 1996 to Year ended 1996 to Year ended 1996 to
December 31, December 31, December 31, December 31, December 31, December 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........ $ 169,636 $ 80,288 $ 795,372 $ 174,463 $ 1,540,576 $ 279,327
Net realized gain (loss) on:
Investments ...................... 1,060,161 1,130,393 4,469,530 299,700 2,477,967 933,110
Foreign currency related
items ......................... (4) -- (3) -- -- --
Net change in unrealized
appreciation (depreciation) on:
Investments ...................... 10,282,868 152,651 3,766,196 1,455,960 2,991,325 476,858
Foreign currency related
items ......................... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets
from operations .................. 11,512,661 1,363,332 9,031,095 1,930,123 7,009,868 1,689,295
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net investment income .......... (84,366) (83,226) (792,740) (183,956) (1,524,222) (301,815)
From net realized gain on
investment transactions .......... (1,494,204) (608,389) (4,348,955) (226,911) (2,918,420) (364,079)
Return of capital ................... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions to
shareholders ..................... (1,578,570) (691,615) (5,141,695) (410,867) (4,442,642) (665,894)
------------ ------------ ------------ ------------ ------------ ------------
Share transactions:
Proceeds from the sale of
shares ........................... 73,766,092 21,124,451 87,596,492 15,648,559 33,426,507 21,937,839
Reinvestment of distributions ....... 1,560,371 673,981 5,112,708 398,998 4,400,386 652,446
Cost of shares redeemed ............. (24,451,617) (2,184,704) (5,794,256) (3,171,440) (5,118,205) (3,955,738)
Net increase in net assets
from share transactions .......... 50,874,846 19,613,728 86,914,944 12,876,117 32,708,688 18,634,547
Net increase in net assets ............. 60,808,937 20,285,445 90,804,344 14,395,373 35,275,914 19,657,948
Net assets beginning of
period .............................. 22,803,515 2,518,070 17,760,678 3,365,305 24,418,577 4,760,629
Net assets end of period ............... $ 83,612,452 $ 22,803,515 $108,565,022 $ 17,760,678 $ 59,694,491 $ 24,418,577
============ ============ ============ ============ ============ ============
Undistributed net
investment income (loss) ............ $ 85,266 $ -- $ 7,901 $ 5,272 $ 11,253 $ 2,086
============ ============ ============ ============ ============ ============
</TABLE>
- ----------
* Commencement of operations.
See notes to the financial statements.
<PAGE>
JNL SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
PPM America/JNL PPM America/JNL Salomon Brothers/JNL
High Yield Bond Series Money Market Series Global Bond Series
------------------------------ ------------------------- ----------------------------
Period from Period from Period from
April 1, April 1, April 1,
Year ended 1996 to Year ended 1996 to Year ended 1996 to
December 31, December 31, December 31, December 31, December 31, December 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........ $ 3,007,939 $ 691,766 $ 1,699,439 $ 614,491 $ 1,712,722 $ 574,698
Net realized gain (loss) on:
Investments ...................... 1,066,669 217,828 -- -- 76,786 275,846
Foreign currency related
items ......................... -- -- -- -- 74,761 57,170
Net change in unrealized
appreciation (depreciation) on:
Investments ...................... 1,355,284 383,145 -- -- 677,987 178,039
Foreign currency related
items ......................... -- -- -- -- 50,955 (21,421)
Net increase in net assets
from operations .................. 5,429,892 1,292,739 1,699,439 614,491 2,593,211 1,064,332
Distributions to shareholders:
From net investment income .......... (3,009,722) (798,203) (1,699,439) (614,491) (1,801,495) (754,598)
From net realized gain on
investment transactions .......... (1,036,946) (23,388) -- -- (164,331) (280,691)
Return of capital ................... -- -- -- -- (33,012) --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions to
shareholders ..................... (4,046,668) (821,591) (1,699,439) (614,491) (1,998,838) (1,035,289)
------------ ------------ ------------ ------------ ------------ ------------
Share transactions:
Proceeds from the sale of
shares ........................... 51,335,721 12,401,767 87,270,526 43,176,521 26,946,293 9,953,802
Reinvestment of distributions ....... 4,011,473 790,186 1,658,199 606,298 1,962,974 870,854
Cost of shares redeemed ............. (7,415,150) (6,422,234) (70,873,065) (26,846,271) (5,261,751) (4,750,819
------------ ------------ ------------ ------------ ------------ ------------)
Net increase in net assets
from share transactions .......... 47,932,044 6,769,719 18,055,660 16,936,548 23,647,516 6,073,837
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets ............. 49,315,268 7,240,867 18,055,660 16,936,548 24,241,889 6,102,880
Net assets beginning of
period .............................. 13,396,396 6,155,529 23,752,187 6,815,639 12,482,943 6,380,063
------------ ------------ ------------ ------------ ------------ ------------
Net assets end of period ............... $ 62,711,664 $ 13,396,396 $ 41,807,847 $ 23,752,187 $ 36,724,832 $ 12,482,943
============ ============ ============ ============ ============ ============
Undistributed net
investment income (loss) ............ $ 4,258 $6,041 $ $ -- $ (15,879) $ 24,906
============ ============ ============ ============ ============ ============
</TABLE>
- ----------
* Commencement of operations.
See notes to financial statements.
<PAGE>
JNL SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
Salomon Brothers/JNL T. Rowe Price/JNL
U.S. Government T. Rowe Price/JNL International
& Quality Bond Series Established Growth Series Equity Investment Series
--------------------------- ---------------------------- ---------------------------
Period from Period from Period from
April 1, April 1, April 1,
Year ended 1996 to Year ended 1996 to Year ended 1996 to
December 31, December 31, December 31, December 31, December 31, December 31,
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (loss) ........ $ 1,013,295 $ 288,314 $ 334,356 $ 93,779 $ 502,649 $ 294,949
Net realized gain (loss) on:
Investments ...................... 13,329 29,022 5,371,177 93,499 513,591 203,836
Foreign currency related
items ......................... -- -- (22,021) (12,360) (43,913) 25,484
Net change in unrealized
appreciation (depreciation) on:
Investments ...................... 639,103 82,805 13,594,661 3,384,049 (279,483) 2,679,873
Foreign currency related
items ......................... -- -- (785) 44 (5,020) 2,709
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net assets
from operations .................. 1,665,727 400,141 19,277,388 3,559,011 687,824 3,206,851
------------ ------------ ------------ ------------ ------------ ------------
Distributions to shareholders:
From net investment income .......... (965,070) (318,115) (250,893) (91,356) (531,066) (465,733)
From net realized gain on
investment transactions .......... (43,260) (30,967) (4,612,029) (212,086) (1,459,893) (51,200)
Return of capital ................... -- -- -- (1,234,953) -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions to
shareholders ..................... (1,008,330) (349,082) (4,862,922) (1,538,395) (1,990,959) (516,933)
------------ ------------ ------------ ------------ ------------ ------------
Share transactions:
Proceeds from the sale of
shares ........................... 18,344,542 8,748,229 84,604,291 27,757,264 38,069,689 22,581,023
Reinvestment of distributions ....... 986,266 330,365 4,813,632 1,489,773 1,367,879 255,509
Cost of shares redeemed ............. (4,431,412) (2,304,702) (12,101,386) (7,748,754) (7,654,114) (1,533,092)
Net increase in net assets
from share transactions .......... 14,899,396 6,773,892 77,316,537 21,498,283 31,783,454 21,303,440
Net increase in net assets ............. 15,556,793 6,824,951 91,731,003 23,518,899 30,480,319 23,993,358
Net assets beginning of
period .............................. 9,831,740 3,006,789 32,290,941 8,772,042 48,204,329 24,210,971
------------ ------------ ------------ ------------ ------------ ------------
Net assets end of period ............... $ 25,388,533 $ 9,831,740 $124,021,944 $ 32,290,941 $ 78,684,648 $ 48,204,329
============ ============ ============ ============ ============ ============
Undistributed net
investment income (loss) ............ $5,716 $ -- $ 57,546 $ (3,896) $ (69,263) $ 65,539
============ ============ ============ ============ ============ ============
</TABLE>
- ----------
* Commencement of operations.
See notes to the financial statements.
<PAGE>
JNL SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS ( continued)
T. Rowe Price/JNL
Mid-Cap Growth Series
---------------------------
Period from
April 1,
Year ended 1996 to
December 31, December 31,
1997 1996
------------ ------------
Operations:
Net investment income (loss) ........ $ (227,852) $ (39,345)
Net realized gain (loss) on:
Investments ...................... 3,012,259 750,795
Foreign currency related
items ......................... (9,918) (3)
Net change in unrealized
appreciation (depreciation) on:
Investments ...................... 14,655,100 3,708,604
Foreign currency related
items ......................... 3 --
------------ ------------
Net increase in net assets
from operations .................. 17,429,592 4,420,051
------------ ------------
Distributions to shareholders:
From net investment income .......... -- (144,094)
From net realized gain on
investment transactions .......... (1,652,413) (1,107,685)
Return of capital ................... -- --
------------ ------------
Total distributions to
shareholders ..................... (1,652,413) (1,251,779)
------------ ------------
Share transactions:
Proceeds from the sale of
shares ........................... 76,676,391 41,147,930
Reinvestment of distributions ....... 1,622,324 1,198,205
Cost of shares redeemed ............. (14,128,114) (8,955,066)
------------ ------------
Net increase in net assets
from share transactions .......... 64,170,601 33,391,069
------------ ------------
Net increase in net assets ............. 79,947,780 36,559,341
Net assets beginning of
period .............................. 47,104,489 10,545,148
------------ ------------
Net assets end of period ............... $127,052,269 $ 47,104,489
============ ============
Undistributed net
investment income (loss) ............ $ -- $ (301)
============ ============
- ----------
* Commencement of operations.
See notes to the financial statements.
<PAGE>
JNL SERIES TRUST
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
JNL Aggressive JNL Capital
Growth Series Growth Series
---------------------------------------------------- -------------
April 1, May 15,
Year ended 1996 to 1995* Year ended
December 31, December 31, to March 31, December 31,
1997 1996 1996 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $13.38 $13.13 $10.00 $14.46
Income from investment operations:
Net investment income (loss) 0.04 0.05 0.01 (0.06)
Net realized and unrealized gains on investments
and foreign currency related items 1.65 1.10 3.53 2.23
Total income from investment operations 1.69 1.15 3.54 2.17
Less distributions:
From net investment income - (0.05) - (0.02)
From net realized gains on investment
transactions (0.54) (0.71) (0.41) (0.04)
Return of capital - (0.14) - (0.07)
Total distributions (0.54) (0.90) (0.41) (0.13)
Net increase 1.15 0.25 3.13 2.04
Net asset value, end of period $14.53 $13.38 $13.13 $16.50
Total Return (a) 12.67% 8.72% 35.78% 15.01%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $78,870 $29,555 $8,527 $73,749
Ratio of net operating expenses to average
net assets (b) (c) 1.10% 1.09% 1.09% 1.10%
Ratio of net investment income to average
net assets (b) (c) 0.39% 0.77% 0.27% (0.30)%
Ratio of interest expense and dividends on
short positions to average net assets - - - -
Portfolio turnover 137.26% 85.22% 163.84% 131.43%
Average commission rate paid (d) $0.0075 $0.0242 n/a $0.0292
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 1.17% 1.40% 2.77% 1.11%
Ratio of net investment income to average
net assets (b) 0.32% 0.46% (1.41)% (0.31)%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
JNL Capital
Growth Series JNL Global
(continued) Equities Series
-------------------------------- ---------------------------------
Period from Period from Period from
April 1, May 15, April 1,
1996 to 1995* Year ended 1996 to
December 31, to March 31, December 31, December 31,
1996 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $13.86 $10.00 $15.20 $13.75
Income from investment operations:
Net investment income (loss) 0.06 - 0.07 0.03
Net realized and unrealized gains on investments
and foreign currency related items 0.70 4.70 2.84 2.72
Total income from investment operations 0.76 4.70 2.91 2.75
Less distributions:
From net investment income - - - (0.08)
From net realized gains on investment
transactions (0.16) (0.84) (0.63) (0.90)
Return of capital - - - (0.32)
Total distributions (0.16) (0.84) (0.63) (1.30)
Net increase 0.60 3.86 2.28 1.45
Net asset value, end of period $14.46 $13.86 $17.48 $15.20
Total Return (a) 5.45% 47.94% 19.12% 19.99%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $36,946 $9,578 $151,050 $48,638
Ratio of net operating expenses to average
net assets (b) (c) 1.09% 1.09% 1.15% 1.14%
Ratio of net investment income to average
net assets (b) (c) 0.91% (0.49)% 0.33% 0.37%
Ratio of interest expense and dividends on
short positions to average net assets - - - -
Portfolio turnover 115.88% 128.56% 97.21% 52.02%
Average commission rate paid (d) $0.0196 n/a $0.0064 $0.0162
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 1.27% 2.08% 1.37% 1.63%
Ratio of net investment income to average
net assets (b) 0.73% (1.48)% 0.11% (0.12)%
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
JNL Global
Equities Series JNL/Alger
(continued) Growth Series
------------ ---------------------------------------------------
Period from Period from Period from
May 15, April 1, October 16,
1995* Year ended 1996 to 1995*
to March 31, December 31, December 31, to March 31,
1996 1997 1996 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $10.00 $11.16 $10.38 $10.00
Income from investment operations:
Net investment income (loss) 0.10 (0.01) - -
Net realized and unrealized gains on investments
and foreign currency related items 4.02 2.93 0.78 0.38
Total income from investment operations 4.12 2.92 0.78 0.38
Less distributions:
From net investment income - - - -
From net realized gains on investment
transactions (0.37) (0.52) - -
Return of capital - - - -
Total distributions (0.37) (0.52) - -
Net increase 3.75 2.40 0.78 0.38
Net asset value, end of period $13.75 $13.56 $11.16 $10.38
Total Return (a) 41.51% 26.20% 7.51% 3.80%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $16,141 $85,877 $38,252 $8,649
Ratio of net operating expenses to average
net assets (b) (c) 1.15% 1.10% 1.07% 1.03%
Ratio of net investment income to average
net assets (b) (c) 0.39% (0.07)% (0.02)% (0.17)%
Ratio of interest expense and dividends on
short positions to average net assets - - - -
Portfolio turnover 142.36% 125.44% 59.92% 50.85%
Average commission rate paid (d) n/a $0.0678 $0.0441 n/a
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 2.25% 1.10% 1.19% 1.89%
Ratio of net investment income to average
net assets (b) (0.71)% (0.07)% (0.14)% (1.03)%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
JNL/Eagle Core
Equity Series
-----------------------------------
Period from
September 16,
Year ended 1996* to
December 31, December 31,
1997 1996
------------ ------------
<S> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $10.62 $10.00
Income from investment operations:
Net investment income (loss) 0.08 0.03
Net realized and unrealized gains on investments
and foreign currency related items 3.35 0.62
Total income from investment operations 3.43 0.65
Less distributions:
From net investment income (0.08) (0.03)
From net realized gains on investment
transactions (0.22) -
Return of capital - -
Total distributions (0.30) (0.03)
Net increase 3.13 0.62
Net asset value, end of period $13.75 $10.62
Total Return (a) 32.35% 6.47%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $11,896 $1,954
Ratio of net operating expenses to average
net assets (b) (c) 1.05% 1.05%
Ratio of net investment income to average
net assets (b) (c) 1.00% 1.10%
Ratio of interest expense and dividends on
short positions to average net assets - -
Portfolio turnover 51.48% 1.36%
Average commission rate paid (d) $0.0572 $0.0452
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 1.54% 4.57%
Ratio of net investment income to average
net assets (b) 0.51% (2.42)%
</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 for the periods ended December 31, 1996 and March 31, 1996.
(b) Annualized for the periods ended December 31, 1996 and March 31, 1996.
(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.
<PAGE>
JNL SERIES TRUST
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
JNL/Eagle
SmallCap JNL/Putnam
Equity Series Growth Series
----------------------------------- ------------------------------
Period from Period from
September 16, April 1,
Year ended 1996* to Year ended 1996 to
December 31, December 31, December 31, December 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $11.54 $10.00 $14.21 $12.50
Income from investment operations:
Net investment income (loss) (0.07) (0.01) 0.04 0.04
Net realized and unrealized gains on investments
and foreign currency related items 3.26 1.55 3.07 2.12
Total income from investment operations 3.19 1.54 3.11 2.16
Less distributions:
From net investment income - - (0.02) (0.05)
From net realized gains on investment
transactions - - (0.31) (0.40)
Return of capital - - - -
Total distributions - - (0.33) (0.45)
Net increase 3.19 1.54 2.78 1.71
Net asset value, end of period $14.73 $11.54 $16.99 $14.21
Total Return (a) 27.64% 15.40% 21.88% 17.28%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $13,493 $1,944 $83,612 $22,804
Ratio of net operating expenses to average
net assets (b) (c) 1.10% 1.10% 1.05% 1.04%
Ratio of net investment income to average
net assets (b) (c) (0.54)% (0.26)% 0.31% 0.94%
Ratio of interest expense and dividends on
short positions to average net assets - - 0.08% -
Portfolio turnover 60.78% 28.01% 194.81% 184.33%
Average commission rate paid (d) $0.0574 $0.0264 $0.0459 $0.0175
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 1.51% 4.77% 1.05% 1.27%
Ratio of net investment income to average
net assets (b) (0.95)% (3.93)% 0.31% 0.71%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
JNL/Putnam JNL/Putnam
Growth Series Value Equity
(continued) Series
------------ ---------------------------------------------------
Period from Period from Period from
May 15, April 1, May 15,
1995* Year ended 1996 to 1995*
to March 31, December 31, December 31, to March 31,
1996 1997 1996 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $10.00 $14.50 $12.77 $10.00
Income from investment operations:
Net investment income (loss) 0.01 0.13 0.10 0.23
Net realized and unrealized gains on investments
and foreign currency related items 3.66 3.03 1.97 2.86
Total income from investment operations 3.67 3.16 2.07 3.09
Less distributions:
From net investment income - (0.13) (0.15) (0.17)
From net realized gains on investment
transactions (1.17) (0.71) (0.19) (0.15)
Return of capital - - - -
Total distributions (1.17) (0.84) (0.34) (0.32)
Net increase 2.50 2.32 1.73 2.77
Net asset value, end of period $12.50 $16.82 $14.50 $12.77
Total Return (a) 37.69% 21.82% 16.25% 31.14%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $2,518 $108,565 $17,761 $3,365
Ratio of net operating expenses to average
net assets (b) (c) 0.95% 1.03% 0.85% 0.87%
Ratio of net investment income to average
net assets (b) (c) 0.28% 1.43% 2.29% 2.33%
Ratio of interest expense and dividends on
short positions to average net assets - - - -
Portfolio turnover 255.03% 112.54% 13.71% 30.12%
Average commission rate paid (d) n/a $0.0366 $0.0259 n/a
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 5.38% 1.09% 1.53% 2.28%
Ratio of net investment income to average
net assets (b) (4.15)% 1.37% 1.61% 0.91%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PPM
PPM America/JNL
America/JNL High Yield Bond
Balanced Series Series
---------------------------------------------------- --------------
Period from Period from
April 1, May 15,
Year ended 1996 to 1995* Year ended
December 31, December 31, to March 31, December 31,
1997 1996 1996 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $11.92 $11.17 $10.00 $10.67
Income from investment operations:
Net investment income (loss) 0.36 0.10 0.25 0.59
Net realized and unrealized gains on investments
and foreign currency related items 1.83 0.98 1.40 1.02
Total income from investment operations 2.19 1.08 1.65 1.61
Less distributions:
From net investment income (0.36) (0.15) (0.19) (0.59)
From net realized gains on investment
transactions (0.69) (0.18) (0.29) (0.21)
Return of capital - - - -
Total distributions (1.05) (0.33) (0.48) (0.80)
Net increase 1.14 0.75 1.17 0.81
Net asset value, end of period $13.06 $11.92 $11.17 $11.48
Total Return (a) 18.43% 9.72% 16.60% 15.05%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $59,694 $24,419 $4,761 $62,712
Ratio of net operating expenses to average
net assets (b) (c) 0.93% 1.04% 1.01% 0.90%
Ratio of net investment income to average
net assets (b) (c) 3.72% 2.39% 2.99% 8.15%
Ratio of interest expense and dividends on
short positions to average net assets - - - -
Portfolio turnover 160.88% 158.15% 115.84% 189.25%
Average commission rate paid (d) $0.0321 $0.0494 n/a n/a
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 0.94% 1.22% 3.71% 0.90%
Ratio of net investment income to average
net assets (b) 3.71% 2.21% 0.29% 8.15%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PPM
America/JNL
High Yield Bond
Series
(continued)
--------------------------------
Period from Period from
April 1, May 15,
1996 to 1995*
December 31, to March 31,
1996 1996
------------ ------------
<S> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $10.23 $10.00
Income from investment operations:
Net investment income (loss) 0.51 0.73
Net realized and unrealized gains on investments
and foreign currency related items 0.64 0.04
Total income from investment operations 1.15 0.77
Less distributions:
From net investment income (0.69) (0.54)
From net realized gains on investment
transactions (0.02) -
Return of capital - -
Total distributions (0.71) (0.54)
Net increase 0.44 0.23
Net asset value, end of period $10.67 $10.23
Total Return (a) 11.24% 7.82%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $13,396 $6,156
Ratio of net operating expenses to average
net assets (b) (c) 0.88% 0.88%
Ratio of net investment income to average
net assets (b) (c) 8.64% 8.34%
Ratio of interest expense and dividends on
short positions to average net assets - -
Portfolio turnover 113.08% 186.21%
Average commission rate paid (d) n/a n/a
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 1.21% 1.50%
Ratio of net investment income to average
net assets (b) 8.31% 7.72%
</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 for the periods ended December 31, 1996 and March 31, 1996.
(b) Annualized for the periods ended December 31, 1996 and March 31, 1996.
(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.
<PAGE>
JNL SERIES TRUST
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
PPM Salomon
America/JNL Brothers/JNL
Money Market Global Bond
Series Series
-------------------------------------------------- --------------
Period from Period from
April 1, May 15,
Year ended 1996 to 1995* Year ended
December 31, December 31, to March 31, December 31,
1997 1996 1996 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $1.00 $1.00 $1.00 $10.63
Income from investment operations:
Net investment income (loss) 0.05 0.04 0.04 0.54
Net realized and unrealized gains on investments
and foreign currency related items - - - 0.59
Total income from investment operations 0.05 0.04 0.04 1.13
Less distributions:
From net investment income (0.05) (0.04) (0.04) (0.58)
From net realized gains on investment
transactions - - - (0.05)
Return of capital - - - (0.01)
Total distributions (0.05) (0.04) (0.04) (0.64)
Net increase - - - 0.49
Net asset value, end of period $1.00 $1.00 $1.00 $11.12
Total Return (a) 5.01% 3.61% 4.59% 10.66%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $41,808 $23,752 $6,816 $36,725
Ratio of net operating expenses to average
net assets (b) (c) 0.75% 0.75% 0.75% 1.00%
Ratio of net investment income to average
net assets (b) (c) 4.92% 4.75% 5.06% 6.83%
Ratio of interest expense and dividends on
short positions to average net assets - - - 0.01%
Portfolio turnover - - - 134.55%
Average commission rate paid (d) 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) 0.76% 0.85% 1.30% 1.07%
Ratio of net investment income to average
net assets (b) 4.91% 4.65% 4.51% 6.76%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Salomon Salomon
Brothers/JNL Brothers/JNL
Global Bond U.S. Government
Series & Quality Bond
(continued) Series
--------------------------------- --------------------------------
Period from Period from Period from
April 1, May 15, April 1,
1996 to 1995* Year ended 1996 to
December 31, to March 31, December 31, December 31,
1996 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $10.46 $10.00 $10.20 $10.09
Income from investment operations:
Net investment income (loss) 0.42 0.81 0.44 0.24
Net realized and unrealized gains on investments
and foreign currency related items 0.70 0.24 0.49 0.24
Total income from investment operations 1.12 1.05 0.93 0.48
Less distributions:
From net investment income (0.69) (0.56) (0.42) (0.34)
From net realized gains on investment
transactions (0.26) (0.03) (0.02) (0.03)
Return of capital - - - -
Total distributions (0.95) (0.59) (0.44) (0.37)
Net increase 0.17 0.46 0.49 0.11
Net asset value, end of period $10.63 $10.46 $10.69 $10.20
Total Return (a) 10.68% 10.74% 9.16% 4.82%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $12,483 $6,380 $25,389 $9,832
Ratio of net operating expenses to average
net assets (b) (c) 0.99% 1.00% 0.85% 0.84%
Ratio of net investment income to average
net assets (b) (c) 7.52% 9.01% 5.99% 5.72%
Ratio of interest expense and dividends on
short positions to average net assets - - 0.09% -
Portfolio turnover 109.85% 152.89% 378.59% 218.50%
Average commission rate paid (d) 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) 1.44% 2.14% 0.96% 1.37%
Ratio of net investment income to average
net assets (b) 7.07% 7.87% 5.88% 5.19%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Salomon
Brothers/JNL
U.S. Government T. Rowe
& Quality Bond Price/JNL
Series Established
(contiinued) Growth Series
--------------- ----------------------------------------------------
Period from Period from Period from
May 15, April 1, May 15,
1995* Year ended 1996 to 1995*
to March 31, December 31, December 31, to March 31,
1996 1997 1996 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $10.00 $12.56 $11.36 $10.00
Income from investment operations:
Net investment income (loss) 0.45 0.06 0.03 0.07
Net realized and unrealized gains on investments
and foreign currency related items 0.02 3.64 1.81 2.68
Total income from investment operations 0.47 3.70 1.84 2.75
Less distributions:
From net investment income (0.34) (0.03) (0.04) (0.06)
From net realized gains on investment
transactions (0.04) (0.61) (0.09) (1.33)
Return of capital - - (0.51) -
Total distributions (0.38) (0.64) (0.64) (1.39)
Net increase 0.09 3.06 1.20 1.36
Net asset value, end of period $10.09 $15.62 $12.56 $11.36
Total Return (a) 4.65% 29.47% 16.12% 28.23%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $3,007 $124,022 $32,291 $8,772
Ratio of net operating expenses to average
net assets (b) (c) 0.84% 0.98% 1.00% 1.00%
Ratio of net investment income to average
net assets (b) (c) 5.41% 0.43% 0.59% 0.75%
Ratio of interest expense and dividends on
short positions to average net assets - - - -
Portfolio turnover 253.37% 47.06% 36.41% 101.13%
Average commission rate paid (d) n/a $0.0309 $0.0288 n/a
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 2.53% 0.98% 1.11% 2.09%
Ratio of net investment income to average
net assets (b) 3.72% 0.43% 0.48% (0.34)%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
T. Rowe
Price/JNL
International
Equity
Investment
---------------------------------------------------
Series
Period from Period from
April 1, May 15,
Year ended 1996 to 1995*
December 31, December 31, to March 31,
1997 1996 1996
------------ ------------ ------------
<S> <C> <C> <C>
Selected Per Share Data
Net asset value, beginning of period $12.08 $11.25 $10.00
Income from investment operations:
Net investment income (loss) 0.09 0.06 0.04
Net realized and unrealized gains on investments
and foreign currency related items 0.23 0.90 1.21
Total income from investment operations 0.32 0.96 1.25
Less distributions:
From net investment income (0.08) (0.12) -
From net realized gains on investment
transactions (0.23) (0.01) -
Return of capital - - -
Total distributions (0.31) (0.13) -
Net increase 0.01 0.83 1.25
Net asset value, end of period $12.09 $12.08 $11.25
Total Return (a) 2.65% 8.54% 12.50%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $78,685 $48,204 $24,211
Ratio of net operating expenses to average
net assets (b) (c) 1.24% 1.25% 1.25%
Ratio of net investment income to average
net assets (b) (c) 0.74% 1.09% 0.78%
Ratio of interest expense and dividends on
short positions to average net assets - - -
Portfolio turnover 18.81% 5.93% 16.45%
Average commission rate paid (d) $0.0023 $0.0257 n/a
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 1.32% 1.29% 2.14%
Ratio of net investment income to average
net assets (b) 0.66% 1.05% (0.11)%
</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 for the periods ended December 31, 1996 and March 31, 1996.
(b) Annualized for the periods ended December 31, 1996 and March 31, 1996.
(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.
<PAGE>
JNL SERIES TRUST
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
T. Rowe
Price/JNL
Mid-Cap Growth
Series
---------------------------------------------------
Period from Period from
April 1, May 15,
Year ended 1996 to 1995*
December 31, 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) (0.03) (0.05) 0.06
Net realized and unrealized gains on investments
and foreign currency related items 2.74 1.92 3.90
Total income from investment operations 2.71 1.87 3.96
Less distributions:
From net investment income - (0.05) -
From net realized gains on investment
transactions (0.23) (0.36) (0.53)
Return of capital - - -
Total distributions (0.23) (0.41) (0.53)
Net increase 2.48 1.46 3.43
Net asset value, end of period $17.37 $14.89 $13.43
Total Return (a) 18.21% 13.91% 40.06%
Ratios and Supplemental Data
Net assets, end of period (in thousands) $127,052 $47,104 $10,545
Ratio of net operating expenses to average
net assets (b) (c) 1.06% 1.10% 1.10%
Ratio of net investment income to average
net assets (b) (c) (0.26)% (0.18)% 0.82%
Ratio of interest expense and dividends on
short positions to average net assets - - -
Portfolio turnover 41.43% 25.05% 66.04%
Average commission rate paid (d) $0.0467 $0.0326 n/a
Ratio information assuming no expense
reimbursement or fees paid indirectly
Ratio of expenses to average net assets (b) 1.06% 1.14% 2.10%
Ratio of net investment income to average
net assets (b) (0.26)% (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 for the periods ended December 31, 1996 and March 31, 1996.
(b) Annualized for the periods ended December 31, 1996 and March 31, 1996.
(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.
<PAGE>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 Investment Management, Inc.
serves as the sub-adviser; 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 became the PPM America/JNL Balanced Series and is managed by PPM America,
Inc., the JNL/Phoenix Investment Counsel Growth Series became the JNL/Putnam
Growth Series and is managed by Putnam Investment Management, Inc., and the PPM
America/JNL Value Equity Series became 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.
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 state-ments in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions. 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. 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. Amer-ican 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>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
Security Transactions And Investment Income -- Security transactions are
recorded on the trade date. 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.
Foreign Currency Translations -- The accounting records of the Trust are
maintained in U.S. dollars. Investment securities and other assets and
liabilities de-nominated in a foreign currency are translated into U.S. dollars
using exchange rates in effect at the close of the New York Stock Exchange.
Purchases and sales of investment securities, income receipts, and expense
pay-ments 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 in-come securities, entering into forward
foreign currency exchange contracts, and accruing income or settling port-folio
purchases and sales denominated in a foreign cur-rency 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 (deprecia-tion) on investments,
respectively.
Foreign Currency Contracts -- A 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 for-ward
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
(deprecia-tion) on foreign currency related items. When the con-tract 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. These
forward foreign currency contracts involve market risk in excess of the
unrealized appreciation (depreciation) of forward foreign currency contracts
reflected in the Statement of Assets and Liabilities. 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, 1997.
When-Issued and Delayed Delivery Transactions -- A 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 -- A Series may 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 -- A Series may write covered call options on
portfolio securities. Written options involve, to varying degrees, risk of loss
in excess of the option value reflected in the Statement of Assets and
Liabilities. The risk in writing a covered call option is that the Series may
forego the opportunity of profit if the market price of the underlying security
increases and the option is exercised. 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>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
Futures Contracts -- A Series may utilize futures contracts to a limited
extent. The risks associated with the use of futures contracts includes the
possibility that the value may not correlate with the change in the value of the
hedged instruments. In addition, there is the risk that the Series may not be
able to enter into a closing transaction because 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 -- A Series 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 Broth-ers/JNL Global Bond Series
and the Salomon Broth-ers/JNL U.S. Government & Quality Bond Series entered into
dollar roll transactions with respect to mortgage sec-urities 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 re-purchase, 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. Dollar roll transactions involve the risk
that the market value of the securities sold by the Series may decline below the
repurchase price of those similar securities which the Series is obligated to
purchase or that the return earned by the Series with the proceeds of a dollar
roll may not exceed transaction costs.
Repurchase Agreements -- A Series may invest in repurchase agreements. A
repurchase agreement involves the purchase of a security by a Series and a
simultaneous agreement (generally by a bank or broker-dealer) to repurchase that
security back from the Series at a specified price and date or upon demand.
Securities pledged as collateral for repurchase agreements are held by the
Series custodian bank until the maturity of the repurchase agreement. Procedures
for all repurchase agreements have been designed to assure that the daily market
value of the collateral is in excess of the repurchase agreement in the event of
default.
Reverse Repurchase Agreements -- A Series may engage in reverse repurchase
agreements to borrow short term funds. The value of the reverse repurchase
agreements that the Series have committed to sell are reflected in the Statement
of Assets and Liabilities. The Series will maintain securities in segregated
accounts with its custodian that at all times are in an amount equal to their
obligations under the reverse repurchase agreements. Reverse repurchase
agreements involve the risks that the market value of the securities sold by the
Series may decline below the repurchase price and, if the proceeds from the
reverse repurchase agreement are invested in securities, that the market value
of the securities bought may decline below the repurchase price of the
securities sold.
Distributions To Shareholders -- The PPM Amer-ica/JNL Money Market Series
declares dividends daily and pays dividends monthly. For all other Series,
div-idends 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.
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
char-acterization of certain income and capital gain dist-ributions determined
annually in accordance with federal tax regulations which may differ from
generally accepted accounting principles.
NOTE 3. INVESTMENT MANAGEMENT FEES AND TRANSACTIONS WITH AFFILIATES
The Trust has an investment advisory agreement with JNFSI whereby JNFSI
provides investment management and transfer agency services. Each Series pays
JNFSI a fee, computed daily and payable monthly, based on a specified percentage
of 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>
- --------------------------------------------------------------------------------
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 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 calculated on the basis of the average daily net assets of each Series.
The following is a schedule of the 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 Bond 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%
</TABLE>
<TABLE>
<CAPTION>
$0 to $20 to $50 to
$20 M $50 M $200 M $200 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 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 America, Inc. 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 net assets exceed this amount, the sub-advisory fee asterisked
is applicable to all assets in this Series.
<PAGE>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
JNFSI has voluntarily agreed to reimburse 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 at any
time.
Trustees and officers of the Trust who are affiliated persons receive no
compensation from the Trust. Trustees who are not interested persons of the
Trust, as defined in the 1940 Act, collectively received compensation of $49,500
for the year ended December 31, 1997.
During the year ended December 31, 1997, JNL/Alger Growth Series, JNL/Eagle
Core Equity Series, JNL/Eagle SmallCap Equity Series, JNL/Putnam Growth Series,
PPM America/JNL Balanced Series, T. Rowe Price/JNL Established Growth Series and
T. Rowe Price/JNL International Equity Investment Series paid $182,361, $461,
$4,002, $120, $180, $2,111 and $32,587, respectively, to affiliates of the Trust
for brokerage fees on the execution of purchases and sales of portfolio
investments.
NOTE 4. SECURITY TRANSACTIONS
During the year ended December 31, 1997, the 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.................................................... $108,281 $66,412
JNL Capital Growth Series....................................................... 96,673 68,820
JNL Global Equities Series...................................................... 176,383 93,679
JNL/Alger Growth Series......................................................... 103,495 73,936
JNL/Eagle Core Equity Series.................................................... 11,355 3,315
JNL/Eagle SmallCap Equity Series................................................ 14,249 4,225
JNL/Putnam Growth Series........................................................ 144,642 96,921
JNL/Putnam Value Equity Series.................................................. 136,358 60,449
PPM America/JNL Balanced Series................................................. 94,863 62,397
PPM America/JNL High Yield Bond Series.......................................... 111,761 66,393
Salomon Brothers/JNL Global Bond Series......................................... 52,021 30,116
Salomon Brothers/JNL U.S. Government & Quality Bond Series...................... 52,323 38,977
T. Rowe Price/JNL Established Growth Series..................................... 101,320 34,148
T. Rowe Price/JNL International Equity Investment Series........................ 42,473 12,054
T. Rowe Price/JNL Mid-Cap Growth Series......................................... 89,480 33,162
</TABLE>
Included in these transactions were purchases and sales of U.S. Government
obligations of $30,108,611 and $19,449,841 in the PPM America/JNL Balanced
Series; $18,390,903 and $10,379,128 in the Salomon Brothers/JNL Global Bond
Series; $51,479,505 and $38,634,771 in the Salomon Brothers/JNL U.S. Government
& Quality Bond Series, respectively.
<PAGE>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
The federal income tax cost basis and gross unrealized appreciation and
depreciation on investments as of December 31, 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.................................. $ 75,971 $ 8,834 $ (3,102) $ 5,732
JNL Capital Growth Series..................................... 61,244 13,742 (1,048) 12,694
JNL Global Equities Series.................................... 133,943 21,500 (4,761) 16,739
JNL/Alger Growth Series....................................... 76,262 12,584 (826) 11,758
JNL/Eagle Core Equity Series.................................. 10,571 1,663 (168) 1,495
JNL/Eagle SmallCap Equity Series.............................. 12,913 2,121 (685) 1,436
JNL/Putnam Growth Series...................................... 74,203 10,933 (396) 10,537
JNL/Putnam Value Equity Series................................ 103,573 7,677 (2,052) 5,625
PPM America/JNL Balanced Series............................... 55,452 4,286 (685) 3,601
PPM America/JNL High Yield Bond Series........................ 59,534 1,928 (159) 1,769
Salomon Brothers/JNL Global Bond Series....................... 39,452 1,135 (257) 878
Salomon Brothers/JNL U.S. Government & Quality
Bond Series.............................................. 31,758 687 (3) 684
T. Rowe Price/JNL Established Growth Series................... 106,796 20,805 (3,323) 17,482
T. Rowe Price/JNL International Equity Investment Series...... 73,876 11,430 (6,997) 4,433
T. Rowe Price/JNL Mid-Cap Growth Series....................... 107,720 23,488 (3,794) 19,694
</TABLE>
NOTE 5. TRUST TRANSACTIONS
Transactions of trust shares for the year ended December 31, 1997 were as
follows:
<TABLE>
<CAPTION>
Shares Distributions Shares
Purchased Reinvested Redeemed Net Increase
--------- ---------- -------- ------------
<S> <C> <C> <C> <C>
JNL Aggressive Growth Series.............................. 3,894,346 191,755 (868,600) 3,217,501
JNL Capital Growth Series................................. 2,848,842 34,057 (968,352) 1,914,547
JNL Global Equities Series................................ 6,393,844 295,987 (1,246,634) 5,443,197
JNL/Alger Growth Series................................... 3,544,503 229,852 (869,988) 2,904,367
JNL/Eagle Core Equity Series.............................. 688,411 16,636 (24,082) 680,965
JNL/Eagle SmallCap Equity Series.......................... 886,938 - (139,332) 747,606
JNL/Putnam Growth Series *................................ 4,787,449 92,112 (1,561,300) 3,318,261
JNL/Putnam Value Equity Series *.......................... 5,270,627 304,872 (347,068) 5,228,431
PPM America/JNL Balanced Series *......................... 2,579,083 337,971 (395,399) 2,521,655
PPM America/JNL High Yield Bond Series.................... 4,500,240 349,736 (642,559) 4,207,417
PPM America/JNL Money Market Series....................... 87,270,526 1,658,199 (70,873,065) 18,055,660
Salomon Brothers/JNL Global Bond Series................... 2,422,646 177,324 (471,899) 2,128,071
Salomon Brothers/JNL U.S. Government & Quality Bond
Series............................................... 1,740,847 92,434 (422,626) 1,410,655
T. Rowe Price/JNL Established Growth Series............... 5,871,440 308,764 (813,825) 5,366,379
T. Rowe Price/JNL International Equity Investment
Series............................................... 3,010,793 112,676 (606,319) 2,517,150
T. Rowe Price/JNL Mid-Cap Growth Series................... 4,951,347 94,266 (893,009) 4,152,604
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
Transactions of trust shares for the period ending December 31, 1996 were
as follows:
<TABLE>
<CAPTION>
Shares Distributions Shares
Purchased Reinvested Redeemed Net 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
became the PPM America/JNL Balanced Series, the JNL/Phoenix Investment
Counsel Growth Series became the JNL/Putnam Growth Series, and the PPM
America/JNL Value Equity Series became the JNL/Putnam Value Equity Series.
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 December 31, 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 ($6,408), ($15,722), ($55,680) and $36,569, 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 12/31/97 Currency to be received at 12/31/97
---- ------------------------ ----------- ----------------------- -----------
<S> <C> <C> <C> <C>
2/18/98 1,270,000 Deutsche Mark $ 707,994 688,135 US $ $ 688,135
2/18/98 736,561 US $ 736,561 1,270,000 Deutsche Mark 707,994
1/9/98 930,000 Finnish Markka 170,711 172,628 US $ 172,628
1/9/98 93,738 US $ 93,738 500,000 Finnish Markka 91,780
1/15/98 150,000 Finnish Markka 27,545 28,963 US $ 28,963
2/2/98 10,000 Finnish Markka 1,838 1,916 US $ 1,916
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
JNL Aggressive Growth Series (continued)
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 12/31/97 Currency to be received at 12/31/97
---- ------------------------ ----------- ----------------------- -----------
<S> <C> <C> <C> <C>
3/26/98 3,915,000 Finnish Markka $ 721,950 753,196 US $ $753,196
3/26/98 350,126 US $ 350,126 1,800,000 Finnish Markka 331,931
3/31/98 6,100,000 Finnish Markka 1,125,191 1,169,189 US $ 1,169,189
5/28/98 1,000,000 Finnish Markka 185,009 191,205 US $ 191,205
2/11/98 110,000 British Sterling 180,306 182,787 US $ 182,787
Pound
2/11/98 33,361 US $ 33,361 20,000 British Sterling 32,783
Pound
2/18/98 90,000 British Sterling 147,473 145,998 US $ 145,998
Pound
2/18/98 149,981 US $ 149,981 90,000 British Sterling 147,473
Pound
2/19/98 100,000 British Sterling 163,851 167,500 US $ 167,500
Pound
2/19/98 57,813 US $ 57,813 35,000 British Sterling 57,348
Pound
3/4/98 17,000 British Sterling 27,837 28,455 US $ 28,455
Pound
3/4/98 27,276 US $ 27,276 16,500 British Sterling 27,018
Pound
3/11/98 50,000 British Sterling 81,843 82,450 US $ 82,450
Pound
5/11/98 34,000 British Sterling 55,491 56,950 US $ 56,950
Pound
5/11/98 55,674 US $ 55,674 34,000 British Sterling 55,491
Pound
3/11/98 1,700,000,000 Italian Lira 960,661 957,585 US $ 957,585
3/11/98 163,429 US $ 163,429 280,000,000 Italian Lira 158,227
1/9/98 1,200,000 Netherlands Guilder 592,153 585,966 US $ 585,966
1/9/98 333,736 US $ 333,736 650,000 Netherlands Guilder 320,750
2/25/98 4,050,000 Netherlands Guilder 2,004,336 2,017,080 US $ 2,017,080
2/25/98 743,740 US $ 743,740 1,450,000 Netherlands Guilder 717,602
3/31/98 1,750,000 Netherlands Guilder 867,851 882,909 US $ 882,909
1/15/98 2,950,000 Swedish Krona 371,699 381,505 US $ 381,505
1/15/98 177,022 US $ 177,022 1,378,000 Swedish Krona 173,627
2/11/98 297,000 Swedish Krona 37,450 38,126 US $ 38,126
2/11/98 38,247 US $ 38,247 297,000 Swedish Krona 37,450
3/4/98 800,000 Swedish Krona 100,935 100,237 US $ 100,237
3/4/98 106,177 US $ 106,177 800,000 Swedish Krona 100,935
3/11/98 1,000,000 Swedish Krona 126,189 132,205 US $ 132,205
3/11/98 132,797 US $ 132,79 1,000,000 Swedish Krona 126,189
----------- -----------
$11,857,991 $11,851,583
=========== ===========
</TABLE>
JNL Capital Growth Series
<TABLE>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 12/31/97 Currency to be received at 12/31/97
---- ------------------------ ----------- ----------------------- -----------
<S> <C> <C> <C> <C>
1/20/98 115,000 British Sterling $ 188,704 193,430 US $ $193,430
Pound
2/11/98 210,000 British Sterling 344,221 348,957 US $ 348,957
Pound
2/11/98 180,937 US $ 180,937 107,000 British Sterling 175,389
Pound
2/19/98 825,000 British Sterling 1,351,770 1,358,925 US $ 1,358,925
Pound
2/25/98 950,000 British Sterling 1,556,130 1,497,761 US $ 1,497,761
Pound
2/26/98 900,000 British Sterling 1,474,156 1,500,300 US $ 1,500,300
Pound
2/26/98 1,289,611 US $ 1,289,611 765,000 British Sterling 1,253,032
Pound
3/4/98 400,000 British Sterling 654,980 638,800 US $ 638,800
Pound
3/11/98 5,000 British Sterling 8,184 8,371 US $ 8,371
Pound
5/6/98 1,400,000 British Sterling 2,285,434 2,338,075 US $ 2,338,075
Pound
5/11/98 125,000 British Sterling 204,010 209,375 US $ 209,375
Pound
----------- -----------
$9,538,137 $ 9,522,415
=========== ===========
</TABLE>
JNL Global Equities Series
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 12/31/97 Currency to be received at 12/31/97
---- ------------------------ ----------- ----------------------- -----------
<S> <C> <C> <C> <C>
1/20/98 600,000 Swiss Franc $ 418,994 US $ $
411,625 418,994
2/2/98 150,000 Swiss Franc 103,068 103,914 US $ 103,914
2/18/98 1,500,000 Swiss Franc 1,032,558 1,018,883 US $ 1,018,883
2/18/98 1,083,408 US $ 1,083,408 1,500,000 Swiss Franc 1,032,558
2/19/98 600,000 Swiss Franc 413,071 413,223 US $ 413,223
2/26/98 122,000 Swiss Franc 84,058 87,644 US $ 87,644
1/15/98 305,000 Deutsche Mark 169,693 174,447 US $ 174,447
1/15/98 17,461 US $ 17,461 30,000 Deutsche Mark 16,691
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
JNL SERIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
JNL Global Equities Series (continued)
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 12/31/97 Currency to be received at 12/31/97
---- ------------------------ ----------- ----------------------- -----------
<S> <C> <C> <C> <C>
2/2/98 50,000 Deutsche Mark $ 27,848 28,258 US $ $28,258
2/3/98 2,850,000 Deutsche Mark 1,587,431 1,588,248 US $ 1,588,248
2/3/98 1,427,540 US $ 1,427,540 2,500,000 Deutsche Mark 1,392,483
2/18/98 75,000 Deutsche Mark 41,811 40,473 US $ 40,473
2/19/98 2,200,000 Deutsche Mark 1,226,517 1,220,189 US $ 1,220,189
2/19/98 1,235,677 US $ 1,235,677 2,200,000 Deutsche Mark 1,226,517
2/26/98 3,750,000 Deutsche Mark 2,091,499 2,079,867 US $ 2,079,867
2/26/98 1,784,450 US $ 1,784,450 3,070,000 Deutsche Mark 1,712,241
1/20/98 750,000 Finnish Markka 137,768 144,788 US $ 144,788
1/20/98 143,234 US $ 143,234 750,000 Finnish Markka 137,768
1/9/98 11,000,000 French Franc 1,828,651 1,828,777 US $ 1,828,777
1/9/98 1,886,635 US $ 1,886,635 11,000,000 French Franc 1,828,651
1/20/98 500,000 French Franc 83,173 84,574 US $ 84,574
2/3/98 11,000,000 French Franc 1,831,312 1,814,681 US $ 1,814,681
2/3/98 1,921,186 US $ 1,921,186 11,000,000 French Franc 1,831,312
2/18/98 5,000,000 French Franc 833,161 809,532 US $ 809,532
2/18/98 573,460 US $ 573,460 3,000,000 French Franc 499,897
3/18/98 6,000,000 French Franc 1,001,352 1,031,637 US $ 1,031,637
2/11/98 5,200,000 British Sterling 8,523,570 8,441,520 US $ 8,441,520
Pound
2/11/98 7,420,035 US $ 7,420,035 4,500,000 British Sterling 7,376,166
Pound
2/18/98 3,000,000 British Sterling 4,915,768 4,866,615 US $ 4,866,615
Pound
2/19/98 600,000 British Sterling 983,105 1,001,400 US $ 1,001,400
Pound
1/20/98 115,250,000 Japanese Yen 885,227 1,038,288 US $ 1,038,288
2/18/98 166,750,000 Japanese Yen 1,286,307 1,407,577 US $ 1,407,577
3/18/98 594,440,000 Japanese Yen 4,604,843 5,145,108 US $ 5,145,108
3/18/98 2,725,454 US $ 2,725,454 325,000,000 Japanese Yen 2,517,620
3/25/98 30,000,000 Japanese Yen 232,641 240,015 US $ 240,015
4/22/98 165,000,000 Japanese Yen 1,284,884 1,294,179 US $ 1,294,179
1/9/98 1,000,000 Netherlands Guilder 493,461 501,379 US $ 501,379
2/3/98 3,500,000 Netherlands Guilder 1,729,822 1,728,395 US $ 1,728,395
2/3/98 1,809,147 US $ 1,809,147 3,500,000 Netherlands Guilder 1,729,822
2/18/98 200,000 Netherlands Guilder 98,937 95,721 US $ 95,721
2/19/98 6,300,000 Netherlands Guilder 3,116,717 3,100,394 US $ 3,100,394
2/19/98 2,229,955 US $ 2,229,955 4,400,000 Netherlands Guilder 2,176,754
1/15/98 6,400,000 Swedish Krona 806,397 832,077 US $ 832,077
2/2/98 700,000 Swedish Krona 88,245 90,696 US $ 90,696
10/2/98 1,200,000 South African Rand 232,076 237,765 US $ 237,765
10/2/98 231,256 US $ 231,256 1,200,000 South African Rand 232,076
----------- -----------
$66,675,494 $66,619,814
=========== ===========
</TABLE>
Salomon Brothers/JNL Global Bond Series
<TABLE>
<CAPTION>
Settlement U.S. $ value U.S. $ value
Date Currency to be delivered at 12/31/97 Currency to be received at 12/31/97
---- ------------------------ ----------- ----------------------- -----------
<S> <C> <C> <C> <C> <C>
2/11/98 16,965 Australian $ $ 11,067 11,191 US $ $11,191
2/11/98 713,098 Canadian $ 499,711 502,182 US $ 502,182
2/11/98 2,645,016 Deutsche Mark 1,473,937 1,507,733 US $ 1,507,733
2/11/98 457,276 US $ 457,276 806,841 Deutsche Mark 449,613
2/11/98 566,847,218 Italian Lira 320,332 328,173 US $ 328,173
---------- ----------
$2,762,323 $2,798,892
========== ==========
</TABLE>
<PAGE>
JNL AGGRESSIVE GROWTH SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ ------
Common Stocks -- 90.45%
- -----------------------
Brazil -- 0.58%
- ---------------
Telecommunications - 0.58%
Ericsson Telecommunicacoes SA (a)14,709,000 ......... $471,827
Finland -- 1.71%
- ----------------
Conglomerates -- 1.71%
Metra Oy, Class B ................................... 18,630 437,472
Raisio Group PLC (a) ................................ 8,053 955,850
---------
Total Finland .................................... 1,393,322
France -- 0.10%
- ---------------
Oil -- 0.10%
Elf Aquitaine ....................................... 709 82,462
Italy -- 1.58%
- --------------
Banks -- 0.73%
Banca Commerciale Italiana .......................... 172,358 599,210
Telecommunications -- 0.85%
Telecom Italia SPA .................................. 107,961 689,632
---------
Total Italy ....................................... 1,288,842
Netherlands-- 0.09%
- -------------------
Household Appliances &
Furnishings -- 0.09%
Philips Electronics NV .............................. 1,217 72,985
Norway -- 1.35%
- ---------------
Oil -- 1.09%
Ocean Rig ASA (a) ................................... 490,511 518,019
Smedvig ASA ......................................... 17,687 371,183
---------
889,202
Recycling -- 0.26%
Tomra Systems ASA ................................... 9,665 215,918
---------
Total Norway ...................................... 1,105,120
Sweden -- 0.66%
- ---------------
Household Appliances &
Furnishings -- 0.66%
Electrolux (a) ...................................... 7,817 542,471
United Kingdom -- 1.44%
- -----------------------
Conglomerates -- 0.80%
Siebe PLC ........................................... 33,114 649,957
Drugs & Health Care -- 0.64%
SmithKline Beecham PLC .............................. 51,314 528,877
---------
Total United Kingdom .............................. 1,178,834
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
United States -- 82.94%
- -----------------------
Banks -- 4.64%
Ambanc Holding Co., Inc. ........................ 1,950 $ 36,562
Bank of New York Co. , Inc. ..................... 13,150 760,234
BankAmerica Corp. ............................... 19,775 1,443,575
Citicorp ........................................ 2,625 331,898
Klamath First Bancorp, Inc. ..................... 1,950 41,925
Prime Bancshares, Inc. .......................... 12,500 260,938
Provident Financial Holdings, Inc. (a)........... 1,400 30,625
Roslyn Bancorp, Inc. ............................ 5,075 117,994
Star Banc Corp. ................................. 7,950 456,131
US Bancorp ...................................... 2,775 310,627
---------
3,790,509
Broadcasting -- 3.65%
Comcast Corp. ................................... 58,275 1,839,305
Time Warner, Inc. ............................... 18,375 1,139,250
---------
2,978,555
Business Services -- 4.39%
Corporate Family Solutions, Inc. (a)............. 31,750 682,625
Lamar Advertising Co. Class A (a)................ 5,850 232,537
Nokia Corp. ADR (a) ............................. 32,600 2,282,000
Outdoor Systems, Inc. (a) ....................... 5,400 207,225
Technology Solutions Co. (a) .................... 7,037 185,601
---------
3,589,988
Chemicals -- 5.64%
Monsanto Co. .................................... 87,600 3,679,200
Solutia, Inc. ................................... 34,980 933,529
---------
4,612,729
Computers & Business
Equipment -- 6.88%
Ceridian Corp. (a) .............................. 9,700 444,381
Cisco Systems, Inc. (a) ......................... 27,413 1,528,247
Compaq Computer Corp. ........................... 21,887 1,235,248
Dell Computer Corp. (a) ......................... 13,025 1,094,100
EMC Corp. (a) ................................... 29,325 804,605
Sapient Corp. (a) ............................... 8,400 514,500
---------
5,621,081
Conglomerates -- 1.44%
CBS Corp. ....................................... 39,850 1,173,084
Drugs & Health Care -- 10.90%
Cardinal Health, Inc. ........................... 6,300 473,287
Centocor, Inc. (a) .............................. 11,100 369,075
Eli Lilly & Co. ................................. 22,275 1,550,897
Omnicare, Inc. .................................. 32,775 1,016,025
Pfizer, Inc. .................................... 11,550 861,197
Sofamor Danek Group, Inc. (a) ................... 9,450 614,841
Warner Lambert Co. .............................. 32,450 4,023,800
---------
8,909,122
See notes to the financial statements.
<PAGE>
JNL AGGRESSIVE GROWTH SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
United States (continued)
- -------------------------
Electrical Equipment -- 1.19%
ASM Lithography Holdings NV (a) ............. 14,350 $968,625
Electronics -- 9.86%
Analog Devices, Inc. (a) .................... 41,608 1,152,022
Intel Corp. ................................. 19,950 1,401,488
Maxim Integrated Products, Inc. (a).......... 9,150 315,675
Philips Electronics NV ...................... 43,573 2,636,166
Pittway Corp., Class A ...................... 26,150 1,820,694
Texas Instruments, Inc. ..................... 16,275 732,375
---------
8,058,420
Financial Services -- 3.40%
Associates First Capital Corp. .............. 17,975 1,278,472
Class A
Astoria Financial Corp. ..................... 1,375 76,656
Catskill Financial Corp. .................... 1,075 20,291
Charles Schwab Corp. ........................ 19,062 799,413
Peekskill Financial Corp. ................... 1,025 17,169
SLM Holding Corp. ........................... 3,850 535,631
TF Financial Corp. .......................... 1,700 51,000
---------
2,778,632
Insurance -- 3.86%
Reliance Group Holdings, Inc. ............... 4,675 66,034
SunAmerica, Inc. ............................ 9,075 387,956
UNUM Corp. .................................. 49,704 2,702,655
---------
3,156,645
Packaging -- 1.72%
Sealed Air Corp. (a) ........................ 22,825 1,409,444
Petroleum Services -- 7.97%
Diamond Offshore Drilling, Inc. (a).......... 18,900 909,562
Noble Drilling Corp. (a) .................... 29,700 909,562
Santa Fe International Corp. ................ 40,700 1,655,981
Schlumberger Ltd. ........................... 20,700 1,666,350
Transocean Offshore, Inc. ................... 28,425 1,369,730
---------
6,511,185
Real Estate -- 0.97%
Equity Office Properties, Inc. .............. 25,000 789,063
Retail -- 2.60%
CompUSA, Inc. (a) ........................... 15,425 478,175
Costco Cos., Inc. (a) ....................... 18,050 805,481
Linens & Things, Inc. (a) ................... 10,250 447,156
Sara Lee Corp. .............................. 7,025 395,595
---------
2,126,407
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
United States (continued)
- -------------------------
Savings & Loan -- 0.39%
Dime Bancorp, Inc. ............................ 3,275 $ 99,069
FSF Financial Corp. ........................... 200 4,125
First Defiance Financial Corp. ................ 1,725 27,600
First Savings Bancorp ......................... 325 8,288
FirstSpartan Financial Corp. .................. 1,425 57,356
GSB Financial Corp. (a) ....................... 975 17,611
North Central Bancshares, Inc. ................ 1,050 20,869
Queens County Bancorp, Inc. ................... 2,025 82,013
-----------
316,931
Software -- 10.56%
America Online, Inc. (a) ...................... 2,300 205,131
Aspen Technology, Inc. (a) .................... 30,725 1,052,332
Cadence Design Systems, Inc. (a) ............. 30,425 745,412
HBO & Co. ..................................... 16,250 780,000
Microsoft Corp. (a) ........................... 14,475 1,870,894
Parametric Technology Corp. (a) ............... 68,000 3,221,500
Peoplesoft, Inc. (a) .......................... 6,500 253,500
Wind River Systems, Inc. (a) .................. 12,575 499,070
-----------
8,627,839
Telecommunications -- 2.88%
Tele Communications, Inc. (a) ................. 84,128 2,350,326
-----------
Total United States ......................... 67,768,585
-----------
Total Common Stocks
(cost $68,071,484) ...................... 73,904,448
-----------
Principal
Amount
---------
Short Term Investments -- 9.55%
- -------------------------------
Commercial Paper -- 4.29%
General Electric Capital Corp. ................
6.70%, 01/02/1998..........$ ............ 3,499,349 3,500,000
U.S. Government Agencies -- 5.26%
Federal National Mortgage
Association Discount Note
6.00%, 01/02/1998 ....................... 4,300,000 4,299,283
-----------
Total Short Term Investments
(cost $7,798,632)........................ 7,798,632
-----------
Total Investments -- 100%
- -------------------------
(cost $75,870,116) ............................ $81,703,080
===========
See notes to the financial statements.
- --------------------------------------------------------------------------------
(a) Non-income producing security.
<PAGE>
JNL CAPITAL GROWTH SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ ------
Common Stocks -- 97.19%
- -----------------------
United Kingdom -- 12.78%
- ------------------------
Business Services -- 1.53%
Capita Group PLC ............................ 185,778 $1,132,071
Financial Services -- 1.31%
Amvescap PLC ................................ 113,532 971,113
Food & Beverages -- 9.94%
Pizza Express PLC ........................... 285,117 3,493,553
JD Wetherspoon PLC .......................... 704,770 3,854,757
---------
7,348,310
---------
Total United Kingdom ...................... 9,451,494
United States -- 84.41%
- -----------------------
Airlines -- 0.85%
Ryanair Holdings PLC ADR (a) ................ 25,100 630,638
Automobile -- 1.10%
OEA, Inc. ................................... 16,125 466,617
O'Reilly Automotive, Inc. (a) ............... 13,325 349,781
---------
816,398
Banks -- 1.89%
First Empire State Corp. .................... 1,125 523,125
Northern Trust Corp. ........................ 6,500 453,375
Star Banc Corp. ............................. 7,375 423,141
---------
1,399,641
Broadcasting & Media -- 8.31%
Chancellor Media Group ...................... 20,750 1,548,469
Clear Channel Communications, Inc. (a)....... 36,350 2,887,553
Heftel Broadcasting Corp. (a) ............... 36,575 1,709,881
---------
6,145,903
Building & Construction -- 4.29%
Fastenal Co. ................................ 72,725 2,781,731
Rental Services Corp. (a) ................... 15,825 388,702
---------
3,170,433
Business Services -- 12.44%
Apollo Group, Inc. (a) ...................... 60,700 2,868,075
Coinmachine Laundry Corp. (a) ............... 16,925 414,662
Outdoor Systems, Inc. (a) ................... 23,550 903,730
Paychex, Inc. ............................... 82,200 4,161,375
Profit Recovery Group
International, Inc. (a) .................. 20,100 356,775
Robert Half International, Inc. (a).......... 5,825 233,000
Snyder Communications, Inc. (a) ............. 7,225 263,712
---------
9,201,329
Drugs & Health Care -- 9.68%
Ameripath, Inc. (a) ......................... 21,700 368,900
Healthcare Financial Partners, Inc. (a)...... 17,650 626,575
Omnicare, Inc. .............................. 135,225 4,191,975
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
United States (continued)
- -------------------------
Drugs & Health Care (continued)
Pediatrix Medical Group, Inc. (a) ........... 24,525 $1,048,444
Sofamor Danek Group, Inc. (a) ............... 14,150 920,634
---------
7,156,528
Electrical Equipment -- 3.24%
Barnett, Inc. (a) ........................... 52,375 1,152,250
Littelfuse, Inc. (a) ........................ 49,875 1,240,641
---------
2,392,891
Electronics -- 5.68%
Berg Electronics Corp. (a) .................. 41,425 942,419
Maxim Integrated Products, Inc. (a).......... 41,550 1,433,475
Sanmina Corp. (a) ........................... 4,475 303,181
Sipex Corp. (a) ............................. 37,450 1,132,863
Vitesse Semiconductor Corp. (a) ............. 10,225 385,994
---------
4,197,932
Financial Services -- 7.31%
American Capital Strategies, Ltd. ........... 18,825 341,203
Capital Trust (a) ........................... 26,300 295,875
Charles Schwab Corp. ........................ 41,287 1,731,474
Federal Agricultural Mortgage
Corp., Class C (a) ....................... 5,300 323,300
Insignia Financial Group, Inc. (a)........... 69,500 1,598,500
Medallion Financial Corp. ................... 30,725 675,950
Regions Financial Corp. ..................... 10,375 437,695
---------
5,403,997
Food & Beverages -- 1.20%
JP Foodservice, Inc. (a) .................... 24,125 891,117
Gas Exploration -- 0.75%
Trigen Energy Corp. ......................... 27,675 551,770
Hotels & Restaurants -- 2.28%
Papa John's International, Inc. (a) ......... 48,337 1,685,753
Insurance -- 2.98%
Progressive Corp. ........................... 10,150 1,216,731
Protective Life Corp. ....................... 8,000 478,000
UICI (a) .................................... 14,625 510,047
---------
2,204,778
Leisure Time -- 4.21%
Family Golf Centers, Inc. (a) ............... 16,650 522,394
Premier Parks, Inc. (a) ..................... 15,725 636,863
Regal Cinemas, Inc. (a) ..................... 16,200 451,575
Royal Caribbean Cruises, Ltd. ............... 28,150 1,500,747
---------
3,111,579
Petroleum Services -- 0.36%
Hanover Compressor Co. (a) .................. 12,975 265,177
See notes to the financial statements.
<PAGE>
JNL CAPITAL GROWTH SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
United States (continued)
- -------------------------
Plastics -- 1.47%
Sealed Air Corp. (a) ........................ 17,575 $1,085,256
Pollution Control -- 0.20%
Culligan Water Technologies, Inc. (a)........ 2,950 148,238
Real Estate -- 1.61%
Security Capital Group, Inc. (a) ........... 22,100 718,250
Vornado Realty Trust ........................ 10,025 470,548
---------
1,188,798
Retail -- 4.72%
CompUSA, Inc. (a) ........................... 19,700 610,700
Fred Meyer, Inc. (a) ........................ 9,000 327,375
MSC Industrial Direct Co. Inc. (a) .......... 8,625 365,484
Petco Animal Supplies Inc. (a) .............. 81,690 1,960,560
Quality Food Centers, Inc. (a) .............. 3,350 224,450
---------
3,488,569
Schools -- 0.18%
Devry, Inc. (a) ............................. 4,125 131,484
Software -- 3.47%
America Online, Inc. (a) .................... 8,350 744,715
Cadence Design Systems, Inc. (a) ........... 74,175 1,817,288
---------
2,562,003
Telecommunications -- 3.04%
Pricellular Corp. Class A (a) ............... 116,057 1,211,345
Univision Communications, Inc. ..............
Class A (a) .............................. 14,825 1,034,970
---------
2,246,315
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
United States (continued)
- -------------------------
Utilities -- 3.15%
AES Corp.(a) ................................ 49,950 $2,328,919
Total United ............................. 62,405,446
States
Total Common Stocks
(cost $59,102,042) ...................... 71,856,940
-----------
Warrants -- 0.11%
Electrical Equipment -- 0.11%
Littelfuse, Inc.
Expires 12/27/2001, (cost $48,137)........... 3,700 81,400
-----------
Principal
Amount
---------
Short Term Investments -- 2.70%
Commercial Paper -- 2.70%
General Electric Capital Corp.
6.70%, 01/02/1998..............$ ............ 1,999,628 2,000,000
-----------
Total Short Term Investments
(cost $1,999,628) ......................... 1,999,628
-----------
Total Investments -- 100%
(cost $61,149,807) ............................ $73,937,968
===========
See notes to the financial statements.
- --------------------------------------------------------------------------------
(a) Non-income producing security.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ ------
Common Stocks -- 94.87%
- -----------------------
Austria -- 0.61%
- ----------------
Banks -- 0.61%
Erste Bank Der Oesterreichischen
Sparkassen (a) ........................... 18,582 $926,048
Belgium -- 0.09%
Financial Services -- 0.09%
Credit Communal Holding Dexia ............... 962 129,172
Denmark -- 1.02%
Banks -- 0.83%
BG Bank A/S ................................. 14,420 970,186
Unidanmark Series A, A/S .................... 3,854 282,923
---------
1,253,109
Transportation -- 0.19%
SAS Danmark A/S ............................. 19,404 283,192
---------
Total Denmark ............................. 1,536,301
Finland -- 2.23%
- ----------------
Banks -- 0.15%
Merita PLC .................................. 43,143 235,860
Computers & Software -- 0.36%
Tietotehdas Oy, Class B (a) ................. 4,775 536,984
Conglomerates -- 0.26%
Amer Group Ltd. Series B (a) ................ 14,802 283,769
Metra Oy, Class B ........................... 4,690 110,131
---------
393,900
Food & Beverages -- 0.59%
Raisio Group PLC ............................ 7,449 884,158
Insurance -- 0.87%
Pohjola Insurance Group ..................... 21,619 801,152
Sampo Insurance Ltd. ........................ 15,671 508,859
---------
1,310,011
---------
Total Finland ............................. 3,360,913
France -- 9.41%
- ---------------
Automobiles & Parts --0.85%
Renault SA (a) .............................. 45,348 1,275,636
Banks -- 1.13%
Banque Nationale de Paris ................... 8,239 437,926
Credit Commercial de France ................. 6,558 449,477
Dexia France ................................ 5,932 686,982
Societe Generale ............................ 961 130,933
---------
1,705,318
Building & Construction -- 0.98%
Suez Lyonnaise des Eaux ..................... 10,099 1,117,543
Technip ..................................... 3,332 351,553
---------
1,469,096
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
France (continued)
- ------------------
Business Services -- 0.56%
Cap Gemini SA ............................. 10,315 $845,801
Chemicals -- 0.51%
Rhone Poulenc ............................. 17,279 774,017
Computer Services -- 0.54%
Axime (a) ................................. 6,284 810,232
Electrical Equipment -- 0.24%
Alcatel Alsthom ........................... 2,804 356,411
Food & Beverages -- 0.33%
Danone .................................... 2,736 488,693
Gas Exploration -- 1.85%
Elf Aquitaine SA .......................... 23,974 2,788,369
Insurance -- 0.16%
Assurances Generales de France ............ 4,113 217,934
Union des Assurances Federales ............ 204 26,777
----------
244,711
Oil -- 0.43%
Total ..................................... 5,973 650,048
Publishing -- 0.61%
Lagardere S.C.A ........................... 27,926 923,365
Retail -- 0.52%
GrandVision S.A ........................... 19,160 788,239
Tires & Rubber -- 0.70%
Compagnie Generale des
Etablissements Michelin ................ 20,920 1,053,213
----------
Total France .......................... 14,173,149
Germany -- 4.31%
- ----------------
Apparel & Textiles -- 0.37%
Adidas AG ................................. 4,290 564,226
Banks -- 2.15%
Bankgesellschaft Berlin AG ................ 4,949 108,942
Bayerische Verinsbank AG .................. 5,403 353,502
Deutsche Bank AG .......................... 23,529 1,661,071
Deutsche Phandbreif-und
Hypothekenbank ......................... 18,866 1,117,939
----------
3,241,454
Insurance -- 0.98%
Aachner & Muenchener
Beteiligungs AG ........................ 7,088 768,315
Allianz AG (a) ............................ 1,528 395,813
Muenchener Rueckversicherungs -
Gesellschaft AG ........................ 835 314,700
----------
1,478,828
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Germany (continued)
- -------------------
Manufacturing -- 0.14%
Siemens AG .................................. 3,465 $205,132
Transportation -- 0.67%
Lufthansa AG ................................ 52,450 1,005,878
---------
Total Germany ............................. 6,495,518
Hong Kong -- 0.68%
- ------------------
Conglomerates -- 0.35%
Citic Pacific Ltd. .......................... 22,000 87,444
Hutchison Whampoa Ltd. ...................... 35,000 219,512
Swire Pacific Ltd. .......................... 41,000 224,868
---------
531,824
Financial Services -- 0.21%
First Pacific Co. Ltd. ...................... 641,540 310,463
Telecommunications -- 0.12%
China Telecom (a) ........................... 106,000 181,933
---------
Total Hong Kong ........................... 1,024,220
Italy -- 2.15%
- --------------
Banks -- 0.82%
Banca Commerciale Italiana .................. 270,103 939,024
Credito Italiano ............................ 94,601 291,718
---------
1,230,742
Insurance -- 0.45%
Assicurazioni Generali ...................... 27,193 667,912
Telecommunications -- 0.41%
Telecom Italia SPA .......................... 97,392 622,120
Transportation -- 0.47%
Aeroporti di Roma SPA (a) ................... 68,599 711,584
---------
Total Italy ............................... 3,232,358
Japan -- 7.73%
- --------------
Automobiles & Parts -- 0.18%
Denso Corp. ................................. 15,000 269,970
Building & Construction -- 0.07%
Matsushita Electric Works, Ltd. ............. 12,000 103,852
Computers & Business
Equipment -- 1.44%
Fujitsu Ltd. ................................ 22,000 235,889
NTT Data Corp. .............................. 36 1,938,271
---------
2,174,160
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Japan (continued)
- -----------------
Drugs & Health Care -- 0.62%
Takeda Chemical Industries ................ 33,000 $940,185
Electrical Equipment -- 0.21%
Hitachi Ltd. .............................. 45,000 320,517
Food & Beverages -- 0.20%
Kita Kyushu Coca-Cola Bottling ............ 15,400 292,502
Household Furniture &
Appliances -- 1.85%
Sony Corp. ................................ 31,400 2,789,615
Real Estate -- 0.46%
Mitsubishi Estate Co. Ltd. ................ 64,000 696,025
Retail -- 0.12%
Mitsui & Co. .............................. 18,000 173,700
Rubber & Tires -- 0.29%
Bridgestone Corp. ......................... 20,230 438,469
Telecommunications -- 2.29%
Nippon Telegraph & Telephone .............. 402 3,448,265
Corp ......................................
----------
Total Japan ............................. 11,647,260
Mexico -- 0.72%
- ---------------
Conglomerates -- 0.07%
Grupo Carso SA de CV ...................... 15,000 100,366
Food & Beverages -- 0.38%
Fomento Economico Mexicano
SA de CV, Class A ...................... 72,700 581,024
Paper & Paper Products -- 0.19%
Kimberly Clark de Mexico SA de CV ......... 58,200 284,852
Retail -- 0.08%
Cifra SA De CV ............................ 46,471 114,011
----------
Total Mexico ............................ 1,080,253
Netherlands -- 8.40%
- --------------------
Airlines -- 0.39%
KLM Royal Dutch Airlines NV ............... 15,930 589,229
Business Services -- 0.08%
Vedior .................................... 6,542 117,763
Chemicals -- 2.57%
Akzo Nobel NV ............................. 22,426 3,866,609
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Netherlands (continued)
- -----------------------
Computers & Business
Equipment -- 0.56%
Getronics NV ............................... 26,284 $837,396
Electronics -- 0.46%
Simac Techniek NV .......................... 6,000 698,345
Food & Beverages -- 0.27%
Nutricia Verenigde Bedrijuen NV ............ 13,685 415,075
Household Furniture &
Appliances -- 1.58
Philips Electronics NV ..................... 39,656 2,378,206
Publishing -- 2.49%
Elsevier NV ................................ 79,051 1,278,758
Wolters Kluwer NV (a) ...................... 19,198 2,479,696
----------
3,758,454
----------
Total Netherlands ........................ 12,661,077
Norway -- 0.44%
- ---------------
Computers & Business
Equipment -- 0.13%
Merkantildata ASA .......................... 5,594 192,379
Industrial Machinery -- 0.14%
Tomra Systems ASA .......................... 9,800 218,934
Transportation -- 0.17%
SAS Norge ASA B shares ..................... 18,334 255,680
----------
Total Norway ............................. 666,993
South Africa -- 0.00%
- ---------------------
Computers & Business
Equipment -- 0.00%
Dimension Data Holdings, Ltd. (a) .......... 93 401
Spain -- 0.60%
- --------------
Commercial Services -- 0.01%
Prosegur, Companhia de Seguridad SA ........ 882 8,857
Food & Beverages -- 0.59%
Telepizza SA (a) ........................... 11,090 895,353
----------
Total Spain .............................. 904,210
Sweden -- 6.50%
- ---------------
Banks -- 0.40%
Skandinaviska Enskilda Banken .............. 48,065 608,387
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Sweden (continued)
- ------------------
Broadcasting -- 0.02%
Modern Times Group (a) ...................... 4,423 $26,460
Business Services -- 0.95%
Securitas AB, Class B ....................... 30,493 921,714
WM-Data AB B Shares ......................... 28,290 511,293
---------
1,433,007
Conglomerates -- 0.07%
Kinnevik Investment Series B ................ 6,410 106,162
Drugs & Health Care -- 0.68%
Ortivus AB Series B (a) ..................... 30,829 1,028,941
Electronics -- 0.10%
Pricer AB Series B (a) ...................... 8,283 153,352
Financial Services -- 0.37%
Investor AB ................................. 11,344 552,920
Household Furniture &
Appliances -- 1.56%
Electrolux AB Series B ...................... 33,822 2,347,123
Insurance -- 0.34%
Skandia Forsakrings AB ...................... 10,685 503,978
Non-Ferrous Metals -- 1.02%
Assa Abloy AB Series B ...................... 58,124 1,537,304
Telecommunications -- 0.76%
Ericcson LM Tel Series B .................... 30,573 1,149,390
Transportation -- 0.23%
SAS Sverige AB .............................. 23,950 346,887
---------
Total Sweden .............................. 9,793,911
Switzerland -- 7.53%
- --------------------
Banks -- 1.36%
Credit Suisse Group AG ...................... 4,356 673,731
Union Bank of Switzerland AG (a) ........... 955 1,380,345
---------
2,054,076
Business Services -- 0.28%
Kuoni Reisen AG ............................. 112 419,655
Drugs & Health Care -- 2.16%
Ares Serono SA .............................. 198 326,567
Novartis AG ................................. 973 1,578,162
Roche Holding AG ............................ 136 1,350,041
---------
3,254,770
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Switzerland (continued)
- -----------------------
Insurance -- 3.61%
Baloise Holdings Ltd. (a) ................. 268 $495,760
Swiss Life ................................ 4,860 3,814,960
Zurich Versicherungs-Gesellschaft ......... 2,367 1,127,451
----------
5,438,171
Transportation -- 0.12%
Sairgroup (a) ............................. 134 183,411
----------
Total Switzerland ....................... 11,350,083
United Kingdom -- 16.54%
- ------------------------
Banks -- 2.36%
Barclays PLC .............................. 21,070 560,914
Lloyds TSB Group PLC ...................... 209,071 2,719,927
National Westminster Bank PLC ............. 16,478 273,899
----------
3,554,740
Building & Construction -- 0.49%
Powerscreen International PLC ............. 74,340 745,996
Business Services -- 1.49%
BTG PLC ................................... 59,268 666,832
Logica PLC ................................ 82,890 1,583,388
----------
2,250,220
Chemicals -- 0.33%
Imperial Chemical Industries PLC .......... 29,432 459,733
Victrex PLC ............................... 11,785 45,489
----------
505,222
Conglomerates -- 6.96%
Hays PLC .................................. 116,697 1,553,582
Misys PLC ................................. 29,138 880,609
Rentokil Initial PLC ...................... 746,851 3,305,104
Siebe PLC ................................. 168,999 3,317,091
Ti Group PLC .............................. 36,421 279,965
Tomkins PLC ............................... 101,196 478,698
Williams PLC .............................. 122,408 679,566
----------
10,494,615
Drugs & Health Care -- 0.27%
SmithKline Beecham PLC .................... 38,928 401,219
Electronics -- 0.70%
Electrocomponents PLC ..................... 95,469 710,339
Premier Farnell PLC ....................... 48,338 347,751
----------
1,058,090
Financial Services -- 0.44%
Amvescap PLC .............................. 14,136 120,914
JBA Holdings PLC .......................... 31,557 536,465
----------
657,379
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
United Kingdom (continued)
- --------------------------
Food & Beverages -- 0.07%
J D Wetherspoon PLC ....................... 18,310 $100,147
Insurance -- 0.61%
Royal & Sun Alliance Insurance ............ 91,459 920,857
Group
Leisure & Entertainment -- 0.60%
Compass Group PLC ......................... 72,955 897,516
Oil -- 0.31%
British Petroleum Co. PLC ................. 35,097 464,282
Publishing -- 1.05%
Newsquest PLC (a) ......................... 364,524 1,589,630
Software -- 0.07%
Sema Group PLC ............................ 4,350 105,744
Telecommunications -- 0.46%
Energis PLC (a) ........................... 103,321 432,747
Freepages Group PLC (a) ................... 492,475 258,845
----------
691,592
Transportation -- 0.33%
Stagecoach Holdings PLC ................... 35,805 491,061
----------
Total United Kingdom .................... 24,928,310
United States -- 25.91%
- -----------------------
Automobile & Parts -- 0.02%
Tata Engineering & Locomotive
Co. Ltd. (144a) ........................ 3,718 28,092
Banks -- 0.56%
Banco Rio de la Plata SA (a) .............. 6,175 86,450
BankAmerica Corp. ......................... 2,850 208,050
Uniao de Bancos Brasileiros SA ............ 5,925 190,711
Wells Fargo & Co. ......................... 1,075 364,895
----------
850,106
Broadcast & Communications -- 0.52%
Grupo Televisa SA de CV ADR (a) ........... 20,225 782,455
Business Services -- 0.10%
Manpower, Inc. ............................ 4,250 149,813
Chemicals -- 2.76%
Du Pont E I De Nemours & Co. .............. 15,450 927,966
Monsanto Co. .............................. 52,675 2,212,350
Solutia, Inc. ............................. 38,325 1,022,798
----------
4,163,114
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
United States (continued)
- -------------------------
Computers & Business
Equipment -- 0.40%
Compaq Computer Corp. ....................... 9,050 $510,759
Dassault Systemes SA ADR .................... 3,000 92,625
---------
603,384
Conglomerates -- 1.26%
CBS Corp. ................................... 50,350 1,482,178
General Electric Co. ........................ 2,150 157,756
Minnesota Mining &
Manufacturing Co. ........................ 3,200 262,600
---------
1,902,534
Drugs & Health Care -- 2.92%
Cardinal Health, Inc. ....................... 2,900 217,863
Elan Corp. PLC ADR (a) ...................... 6,025 308,404
Grupo Casa Autrey SA de CV ADR .............. 11,950 244,228
Eli Lilly & Co. ............................. 8,950 623,144
Pfizer, Inc. ................................ 12,725 948,808
Schering Plough Corp. ....................... 1,875 116,484
SmithKline Beecham PLC ADR .................. 8,700 447,506
Warner Lambert Co. .......................... 12,050 1,494,200
---------
4,400,637
Electronics -- 3.54%
Analog Devices, Inc. (a) .................... 2,000 55,375
Intel Corp. ................................. 2,650 186,162
Philips Electronics ......................... 48,469 2,932,375
Texas Instruments, Inc. ..................... 48,075 2,163,375
---------
5,337,287
Energy -- 0.13%
AO Mosenergo ................................ 1,325 48,893
Companhia Energetica de Minas Gerais ADR..... 1,050 45,621
Unified Energy Systems - Russia (a).......... 3,133 95,557
---------
190,071
Financial Services -- 0.87%
Romania Investment Fund ..................... 204 195,222
SLM Holding Corp. ........................... 8,025 1,116,478
---------
1,311,700
Industrial Machinery -- 0.34%
Asm Lithography Holdings NV (a) ............. 3,100 209,250
Pfeiffer Vacuum Technology
AG ADR (a) ............................... 10,675 298,900
---------
508,150
Oil -- 1.97%
Halliburton Co. ............................. 2,825 146,723
Oil Co Lu Koil Holding ADR .................. 2,650 243,336
Petroleum Geo-Services (a) .................. 12,025 778,619
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
United States (continued)
- -------------------------
Oil (continued)
Schlumberger Ltd. ......................... 14,425 $1,161,212
Transocean Offshore, Inc. ................. 5,300 255,394
YPF Sociedad Anonima ADR .................. 11,100 379,481
-----------
2,964,765
Retail -- 0.07%
Disco SA ADR (a) .......................... 2,300 102,350
Software -- 5.35%
Cisco Systems, Inc. (a) ................... 55,788 3,110,153
Microsoft Corp. (a) ....................... 25,550 3,302,337
Parametric Technology Corp. (a) ........... 34,725 1,645,097
-----------
8,057,587
Telecommunications -- 4.89%
Comcast Corp. ............................. 26,950 850,609
Ericsson L M Tel Co. ...................... 15,656 584,165
Millicom International Cellular SA (a).... 5,500 206,938
Nokia Corp. ADR ........................... 9,275 649,250
Nortel Inversora SA ADR Series B .......... 36,400 928,200
Northern Telecom Ltd. ..................... 7,625 678,625
Quinenco SA ADR (a) ....................... 22,425 257,888
Tele Communications, Inc. (a) ............. 84,050 2,348,147
Telecom Argentina Stet-
France Telecom ADR Class B ............. 3,750 134,062
Telefonica de Argentina SA ADR (a)......... 4,325 161,106
Telefonica del Peru SA ADR ................ 24,725 576,401
-----------
7,375,391
Transportation -- 0.21%
Ryanair Holdings PLC ADR (a) .............. 12,700 319,088
-----------
Total United States ..................... 39,046,524
-----------
Total Common Stocks
(cost $125,674,377) ................. 142,956,701
-----------
Preferred Stocks -- 0.88%
- -------------------------
Brazil -- 0.48%
- ---------------
Electric Utilities -- 0.14%
Companhia Energetica de Minas
Gerais
Gerais (a) ............................... 4,391,000 190,780
Companhia Paranaense de
Energia - Copel (a) ..................... 1,000,000 13,575
---------
204,355
Food & Beverages -- 0.01%
Companhia Cervejaria Brahma (a) ............. 20,000 13,440
Oil -- 0.08%
Petrobras Brasileiro SA ..................... 495,500 115,878
See notes to the financial statements.
<PAGE>
JNL GLOBAL EQUITIES SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Preferred Stocks (continued)
- ----------------------------
Brazil (continued)
- ------------------
Telecommunications -- 0.25%
Ericsson Telecom SA (a) ....................... $11,970,000 383,967
------------
Total Brazil ................................ 717,640
Finland -- 0.36%
Telecommunications -- 0.36%
Nokia Oy AB Series A .......................... 7,686 545,682
United States -- 0.04%
Drugs & Health Care -- 0.04%
Fresenius Medical Care AG (a) ................. 2,900 63,075
------------
Total Preferred Stocks
(cost $1,687,375) ....................... 1,326,397
------------
Principal Market
Amount Value
--------- ------
Short Term Investments -- 4.25%
- -------------------------------
Commercial Paper -- 4.25%
General Electric Capital Corp.,
6.70%, 01/02/1998............................ $ 6,400,000 $6,398,809
------------
Total Short Term Investments
(cost $6,398,809) ................... 6,398,809
------------
Total Investments -- 100%
- -------------------------
(cost $133,760,561) .......................... $150,681,907
============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
See notes to the financial statements
<PAGE>
JNL/ALGER GROWTH SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ ------
Common Stocks -- 89.41%
- -----------------------
Aerospace & Defense -- 0.40%
Gulfstream Aerospace Corp. (a) .................. 12,100 $353,925
Airlines -- 2.53%
AMR Corp. (a) ................................... 17,300 2,223,050
Banks -- 7.31%
Banc One Corp. .................................. 15,878 862,374
BankAmerica Corp. ............................... 23,000 1,679,000
Bank of New York Co., Inc. ...................... 44,600 2,578,438
Corestates Financial Corp. ...................... 6,200 496,388
First Union Corp. ............................... 16,000 820,000
----------
6,436,200
Building & Construction -- 1.02%
Masco Corp. ..................................... 17,600 895,400
Business Services -- 4.88%
Cendant Corp. (a) ............................... 87,000 2,990,625
Cognizant Corp. ................................. 29,200 1,301,225
----------
4,291,850
Computers & Technology -- 4.23%
Bay Networks, Inc. (a) .......................... 35,300 902,356
Cisco Systems, Inc. (a) ......................... 28,050 1,563,787
HBO & Co. ....................................... 26,100 1,252,800
----------
3,718,943
Conglomerates -- 3.30%
CBS Corp. ....................................... 85,500 2,516,906
Fortune Brands, Inc. ............................ 10,500 389,156
----------
2,906,062
Drugs & Health Care -- 15.13%
AmeriSource Health Corp. (a) .................... 14,900 867,925
Bergen Brunswig Corp. ........................... 10,000 421,250
Bristol Myers Squibb Co. ........................ 22,000 2,081,750
Cardinal Health, Inc. ........................... 12,100 909,012
Eli Lilly & Co. ................................. 19,600 1,364,650
Guidant Corp. ................................... 33,500 2,085,375
McKesson Corp. .................................. 3,700 400,294
Pfizer, Inc. .................................... 7,800 581,588
Schering Plough, Corp. .......................... 37,600 2,335,900
Warner Lambert Co. .............................. 18,300 2,269,200
----------
13,316,944
Electronics -- 3.40%
Altera Corp. (a) ................................ 26,000 861,250
Linear Technology Corp. ......................... 15,000 864,375
Tellabs, Inc. (a) ............................... 24,000 1,269,000
----------
2,994,625
Financial Services -- 5.65%
Charles Schwab Corp. ............................ 17,850 748,584
Federal Home Loan Mortgage Corp. ................ 22,300 935,206
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Financial Services (continued)
Household International, Inc. ............... 5,300 $676,081
Morgan Stanley, Dean Witter,
Discover & Co. ........................... 30,375 1,795,922
PaineWebber Group, Inc. ..................... 23,700 819,131
---------
4,974,924
Food & Beverages -- 0.65%
PepsiCo, Inc. ............................... 15,600 568,425
Hotels & Restaurants -- 1.04%
Mirage Resorts, Inc. (a) .................... 8,500 193,375
Starwood Lodging Trust Co. .................. 12,500 723,438
---------
916,813
Household Appliances &
Furnishings -- 2.39%
Sunbeam Corp. ............................... 50,000 2,106,250
Industrial Machinery -- 2.74%
Tyco International, Ltd. .................... 53,440 2,408,140
Insurance -- 5.59%
American International Group,Inc ............ 19,900 2,164,125
MGIC Investment Corp. ....................... 9,400 625,100
Travelers Group, Inc. ....................... 39,600 2,133,450
---------
4,922,675
Leisure Time -- 4.45%
Carnival Corp. .............................. 32,900 1,821,837
International Game Technology, Inc .......... 83,000 2,095,750
---------
3,917,587
Petroleum Services -- 1.22%
Diamond Offshore Drilling, Inc. (a).......... 13,200 635,250
Halliburton Co. ............................. 8,600 446,663
---------
1,081,913
Pollution Control -- 2.00%
USA Waste Services, Inc. (a) ................ 44,760 1,756,830
Retail -- 10.42%
CVS Corp. ................................... 11,300 723,906
General Nutrition Companies, ................ 29,700 1,009,800
Inc. (a)
Home Depot, Inc. ............................ 44,250 2,605,219
Rite Aid Corp. .............................. 5,000 293,438
Safeway, Inc. (a) ........................... 20,600 1,302,950
Staples, Inc. (a) ........................... 30,200 838,050
Wal-Mart Stores, Inc. ....................... 61,000 2,405,688
---------
9,179,051
Software -- 3.69%
America Online, Inc. (a) .................... 19,000 1,694,562
Microsoft Corp. (a) ......................... 12,000 1,551,000
---------
3,245,562
See notes to the financial statements.
<PAGE>
JNL/ALGER GROWTH SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
Telecommunications -- 3.66%
AT&T Corp. .................................... 14,200 $869,750
Ciena Corp. (a) ............................... 22,600 1,381,425
Worldcom, Inc. (a) ............................ 32,000 968,000
-----------
3,219,175
Toys -- 1.83%
Mattel, Inc. .................................. 43,200 1,609,200
Transportation -- 1.88%
Burlington Northern Santa Fe .............. 17,800 1,654,287
Corp. ............................................
-----------
Total Common Stocks
(cost $66,939,935) ............... 78,697,831
-----------
Principal Market
Amount Value
------ ------
Short Term Investments -- 10.59%
- --------------------------------
Commercial Paper -- 9.08%
Dow Chemical Co.,
5.80%, 01/05/1998........................... $2,000,000 $1,998,711
Four Winds Funding Corp.,
6.06%, 01/05/1998 .......................... 3,000,000 2,997,980
Holland Limited
Securitization,
6.30%, 01/07/1998 .......................... 2,000,000 1,997,900
Merrill Lynch & Co., Inc. .....................
6.05%, 01/06/1998 .......................... 1,000,000 998,656
-----------
7,993,247
Money Market Funds -- 1.51%
State Street Global Advisor
Fund, 5.42% (b) ............................ 1,329,107 1,329,107
-----------
Total Short Term Investments
(cost $9,322,354) ........................ 9,322,354
-----------
Total Investments -- 100%
- -------------------------
(cost $76,262,289) ............................... $88,020,185
===========
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1997.
See notes to the financial statements
<PAGE>
JNL/EAGLE CORE EQUITY SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ ------
Common Stocks -- 92.28%
- -----------------------
Apparel & Textiles -- 0.42%
Intimate Brands, Inc. ............................... 2,100 $50,531
Automobiles & Parts -- 0.32%
Ford Motor Company .................................. 800 38,950
Banks -- 4.17%
BankAmerica Corp. ................................... 2,000 146,000
Chase Manhattan Corp. ............................... 800 87,600
First Union Corp. ................................... 1,100 56,375
Mellon Bank Corp. ................................... 1,000 60,625
NationsBank Corp. ................................... 2,500 152,031
---------
502,631
Building & Construction -- 0.14%
Harsco Corp. ........................................ 400 17,250
Business Services -- 2.53%
Omnicom Group, Inc. ................................. 6,200 262,725
Unisource Worldwide, Inc. ........................... 3,000 42,750
---------
305,475
Chemicals -- 2.13%
Crompton & Knowles Corp. ............................ 2,000 53,000
Du Pont EI De NeMours & Co. ......................... 2,100 126,131
Imperial Chemical Industries PLC ADR ................ 1,200 77,925
---------
257,056
Computers & Business
Equipment -- 4.47%
Cisco Systems, Inc. (a) ............................. 3,000 167,250
Dell Computer Corp. (a) ............................. 1,000 84,000
HBO & Co. ........................................... 3,500 168,000
Hewlett Packard Co. ................................. 1,300 81,250
Wallace Computer Services, Inc. ..................... 1,000 38,875
---------
539,375
Conglomerates -- 0.55%
Fortune Brands, Inc. ................................ 1,800 66,712
Containers & Glass -- 0.91%
Crown Cork & Seal, Co. Inc. ......................... 2,200 110,275
Drugs & Health Care -- 10.56%
Bausch & Lomb, Inc. ................................. 1,800 71,325
Columbia/HCA Healthcare Corp. ....................... 5,000 148,125
Eli Lilly & Co. ..................................... 3,000 208,875
Guidant Corp. ....................................... 2,500 155,625
Humana, Inc. (a) .................................... 1,200 24,900
Oxford Health Plans, Inc. (a) ....................... 9,000 140,062
Pharmacia & Upjohn, Inc. ............................ 1,400 51,275
Pfizer, Inc. ........................................ 2,500 186,406
SmithKline Beecham PLC ADR .......................... 1,000 51,438
Warner Lambert Co. .................................. 1,900 235,600
---------
1,273,631
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Electric Utilities -- 1.95%
Central & Southwest Corp. ........................... 1,400 $37,887
FPL Group, Inc. ..................................... 900 53,269
Nipsco Industries, Inc. ............................. 1,100 54,381
Teco Energy, Inc. ................................... 3,200 90,000
---------
235,537
Electrical Equipment -- 5.08%
Essex International, Inc. (a) ....................... 3,000 89,250
Fisher Scientific International, .................... 1,600 76,400
Inc .................................................
General Electric Co. ................................ 2,800 205,450
Philips Electronics NV .............................. 4,000 242,000
---------
613,100
Electronics -- 4.94%
Intel Corp. ......................................... 1,000 70,250
General Signal Corp. ................................ 3,000 126,562
Lexmark International Group,
Inc. Class A (a) ................................. 2,400 91,200
Raytheon Co. (a) .................................... 1,800 90,900
Tellabs, Inc. (a) ................................... 2,000 105,750
Thermo Electron Corp. (a) ........................... 2,500 111,250
---------
595,912
Financial Services -- 7.71%
American Express Corp. .............................. 1,500 133,875
Charles Schwab Corp. ................................ 3,500 146,781
Federal Home Loan Mortgage Corp. .................... 3,500 146,781
Federal National Mortgage Association ............... 3,000 171,187
SLM Holdings Corp. .................................. 900 125,213
Travelers Group, Inc. ............................... 3,849 207,365
---------
931,202
Food & Beverages -- 1.51%
Coca-Cola Co. ....................................... 1,000 66,625
Heinz H J Co. ....................................... 1,100 55,894
Sysco Corp. ......................................... 1,300 59,231
---------
181,750
Gas & Pipeline Utilities -- 2.15%
American WaterWorks Company, Inc .................... 2,000 54,625
Houston Industries, Inc. ............................ 1,000 57,063
UGI Corp. ........................................... 1,700 49,831
Wicor, Inc. ......................................... 1,000 46,438
Williams Cos., Inc. ................................. 1,800 51,075
---------
259,032
Gas Exploration -- 0.79%
Enron Corp. ......................................... 2,300 95,594
Hotels & Restaurants -- 0.86%
Marriott International, Inc. ........................ 1,500 103,875
See notes to the financial statements.
<PAGE>
JNL/EAGLE CORE EQUITY SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Household Products -- 5.17%
Black & Decker Corp. ................................ 3,600 $140,625
Gillette Co. ........................................ 1,500 150,656
Sunbeam Corp. ....................................... 5,100 214,838
Tupperware Corp. .................................... 4,200 117,075
---------
623,194
Industrial Machinery -- 1.43%
American Standard Cos., Inc. (a) ................... 4,500 172,406
Insurance -- 3.30%
Allstate Corp. ...................................... 2,000 181,750
American International Group, Inc ................... 1,500 163,125
Safeco Corp. ........................................ 1,100 53,625
---------
398,500
Metals -- 0.54%
Allegheny Teledyne, Inc. ............................ 2,500 64,688
Mutual Funds -- 4.14%
Midcap SPDR Trust ................................... 2,500 160,547
SPDR Trust .......................................... 3,500 339,281
---------
499,828
Oil -- 4.73%
Ashland, Inc. ....................................... 2,400 128,850
Atlantic Richfield Co. .............................. 500 40,063
British Petroleum Co. PLC ADR ....................... 900 71,719
Diamond Offshore Drilling, Inc. ..................... 2,000 96,250
Exxon Corp. ......................................... 600 36,712
Mobil Corp. ......................................... 1,600 115,500
Royal Dutch Petroleum Co. ........................... 1,500 81,281
---------
570,375
Petroleum Services -- 2.63%
Baker Hughes, Inc. .................................. 2,000 87,250
Halliburton Co. ..................................... 700 36,356
Schlumberger Ltd. ................................... 2,400 193,200
---------
316,806
Plastics -- 1.00%
Illinois Tool Works, Inc. ........................... 2,000 120,250
Publishing -- 0.49%
McGraw Hill Cos., Inc. .............................. 800 59,200
Real Estate -- 3.31%
Alexander Haagen Properties, Inc .................... 1,400 24,413
Grove Real Estate Asset Trust (a).................... 2,000 21,750
Koger Equity, Inc. .................................. 1,000 21,938
Mack California Realty Corp. ........................ 800 32,800
Nationwide Health Properties, Inc ................... 1,300 33,150
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Real Estate (continued)
Parkway Properties, Inc. ............................ 500 $17,156
Public Storage, Inc. (a) ............................ 1,000 29,375
Rouse Co. ........................................... 1,300 42,575
Security Capital Group, Inc. (a) .................... 2,700 87,750
SL Green Realty Corp. ............................... 1,000 25,938
Spieker Properties, Inc. ............................ 800 34,300
Sun Communities, Inc. ............................... 800 28,750
---------
399,895
Retail -- 4.36%
Federated Department Stores, Inc. (a) ............... 1,600 68,900
Home Depot, Inc. .................................... 3,000 176,625
Kohl's Corp. (a) .................................... 2,000 136,250
Toys R Us, Inc. (a) ................................. 1,600 50,300
Walgreen Co. ........................................ 3,000 94,125
---------
526,200
Software -- 2.15%
Microsoft Corp. (a) ................................. 800 103,400
Peoplesoft, Inc. (a) ................................ 4,000 156,000
---------
259,400
Telecommunications -- 4.09%
AT&T Corp. .......................................... 2,000 122,500
Alltel Corp. ........................................ 1,300 53,381
Bell Atlantic Corp. ................................. 1,000 91,000
Bellsouth Corp. ..................................... 1,500 84,469
GTE Corp. ........................................... 1,200 62,700
Lucent Technologies, Inc. ........................... 1,000 79,875
---------
493,925
Tobacco -- 3.75%
Philip Morris Cos., Inc. ............................ 3,800 172,188
RJR Nabisco Holdings Corp. .......................... 4,700 176,250
UST, Inc. ........................................... 2,800 103,425
---------
451,863
---------
Total Common Stocks
(cost $9,651,216) ............................... 11,134,418
----------
Preferred Stocks -- 2.31%
- -------------------------
Gas & Pipeline Utilities -- 0.41%
MCN Energy Group, Inc. .............................. 800 50,000
Hotels & Restaurants -- 0.50%
Wendy's Financing, Inc. ............................. 1,100 60,500
Insurance -- 0.44%
Jefferson Pilot Corp. ............................... 500 53,500
Oil -- 0.16%
Lomak Financial Trust ............................... 400 18,800
Market
Shares Value
------ ------
Preferred Stocks (continued)
- ----------------------------
Publishing -- 0.35%
Golden Books Financial Trust ........................ 800 $41,700
Retail -- 0.45%
Kmart Financing I ................................... 1,050 54,206
---------
Total Preferred Stocks
(cost $266,796) ................................. 278,706
---------
Principal
Amount
---------
Convertible Bonds -- 0.68%
- --------------------------
Hotels & Restaurants -- 0.41%
Capstar Hotel Co. ...................................
4.75%,10/15/2000................................ $50,000 49,812
Retail -- 0.27%
Home Depot, Inc. ....................................
3.25%, 10/15/2004................................ 25,000 32,844
---------
Total Convertible Bonds
(cost $ 75,643)................................ 82,656
---------
Principal Market
Amount Value
--------- ------
Short Term Investments -- 4.73%
- -------------------------------
Money Market Funds -- 4.73%
State Street Global Advisor
Fund,
5.42%, (b ........................................ $285,074 $285,074
State Street Global Advisor
Government
Fund, 5.30%, (b) ................................. 285,074 285,074
-----------
Total Short Term Investments
(cost $570,148)............................ 570,148
-----------
Total Investments -- 100%
(cost $10,563,803) .................................. $12,065,928
===========
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1997.
See notes to the financial statements.
<PAGE>
JNL/EAGLE CORE EQUITY SERIES
SCHEDULE OF CALL OPTIONS WRITTEN
December 31, 1997
Contracts
(100 shares Market
per contract) Value
- ------------- ------
3 Atlantic Richfield Co.
Expiration January 1998, Exercise Price $80.00.. $(581)
---------
Total Call Options Written
(Premiums received $1,038)............ $(581)
=========
See notes to the financial statements.
<PAGE>
JNL/EAGLE SMALLCAP EQUITY SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ -----
Common Stocks -- 92.76%
- -----------------------
Apparel & Textiles -- 3.78%
Barry R.G. Corp. (a) ................................ 17,000 $197,625
Genesco, Inc. (a) ................................... 27,000 344,250
----------
541,875
Building & Construction -- 1.05%
Lennar Corp. ........................................ 7,000 150,938
Business Services -- 13.42%
CDI Corp. (a) ....................................... 10,000 457,500
Interim Services, Inc. (a) .......................... 20,000 517,500
MPW Industrial Services Group, ...................... 35,000 315,000
Inc. (a)
RCM Technologies, Inc. (a) .......................... 20,000 340,000
Wackenhut Corp. Class B ............................. 14,000 295,750
----------
1,925,750
Commercial Services -- 2.91%
Steiner Leisure Ltd. (a) ............................ 13,500 416,813
Computers & Business
Equipment -- 5.49%
Inspire Insurance Solutions, ........................ 20,000 417,500
Inc. (a)
Sykes Enterprises, Inc. (a) ......................... 19,000 370,500
----------
788,000
Distribution-Wholesale -- 2.46%
VWR Scientific Products Corp. (a) ................... 12,500 353,125
Drugs & Health Care -- 8.81%
Alternative Living Services, ........................ 10,000 295,625
Inc. (a)
Angeion Corp. (a) ................................... 16,000 44,000
Horizon Health Corp. (a) ............................ 15,000 348,750
Pharmerica, Inc. (a) ................................ 40,000 415,000
Protein Design Labs, Inc. (a) ....................... 4,000 160,000
----------
1,263,375
Education -- 2.24%
Strayer Education, Inc. ............................. 9,750 321,750
Electrical Equipment -- 4.87%
Coherent, Inc. (a) .................................. 11,000 386,375
Pioneer Standard Electronics, ....................... 9,000 137,250
Inc .................................................
SymmetriCom, Inc. (a) ............................... 15,000 174,375
----------
698,000
Electronics -- 11.35%
Computer Products, Inc. (a) ......................... 20,000 452,500
Gentex Corp. (a) .................................... 11,000 295,625
Oyo Geospace Corp. (a) .............................. 23,000 434,125
Sawtek, Inc. (a) .................................... 12,000 316,500
Trident International, Inc. (a) ..................... 10,000 130,000
----------
1,628,750
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Financial Services -- 6.42%
Advest Group, Inc. .................................. 9,000 $222,187
Ampex Corp. Class A (a) ............................. 190,000 475,000
Legg Mason, Inc. .................................... 4,000 223,750
----------
920,937
Gas Exploration -- 1.48%
Chieftain International, Inc. (a) ................... 10,000 212,500
Hotels & Restaurants -- 4.25%
Capstar Hotel Co. (a) ............................... 5,000 171,563
Servico, Inc. (a) ................................... 26,000 438,750
----------
610,313
Household, Appliances &
Furnishings -- 1.43%
Furniture Brands International, ..................... 10,000 205,000
Inc. (a)
Leisure Time -- 1.64%
International Speedway Corp. ........................ 10,000 235,625
Class B
Non-Ferrous Metals -- 1.90%
Imco Recycling, Inc. ................................ 17,000 273,062
Petroleum Services -- 5.55%
Gulf Island Fabrication, Inc. (a) ................... 12,000 240,000
Marine Drilling Companies, Inc. ..................... 4,100 85,075
(a)
Precision Drilling Corp. (a) ........................ 10,000 243,750
Pride International, Inc. (a) ....................... 9,000 227,250
----------
796,075
Pollution Control -- 1.41%
Superior Services, Inc. (a) ......................... 7,000 202,125
Publishing -- 3.95%
Houghton Mifflin Co. ................................ 4,400 168,850
World Color Press, Inc. (a) ......................... 15,000 398,438
----------
567,288
Real Estate -- 3.29%
LNR Property Corp. .................................. 20,000 472,500
Retail -- 1.35%
Cash America International, Inc. .................... 15,000 194,062
Steel -- 0.28%
Envirosource, Inc. (a) .............................. 13,300 39,900
Telecommunications -- 3.43%
Allen Telecom, Inc. (a) ............................. 20,000 368,750
Wireless Telecom Group, Inc. ........................ 20,000 123,750
----------
492,500
----------
Total Common Stocks
(cost $11,874,817) ............................ 13,310,263
----------
See notes to the financial statements.
<PAGE>
JNL/EAGLE SMALLCAP EQUITY SERIES
SCHEDULE OF INVESTMENTS (continued)
Principal Market
Amount Value
--------- ------
Short Term Investments -- 7.24%
- -------------------------------
Money Market Funds -- 7.24%
State Street Global Advisor
Fund, 5.42% (b).................................. $519,323 $519,323
State Street Global Advisor
Government Fund, 5.30% (b)....................... 519,323 519,323
----------
Total Short Term Investments
(cost $1,038,646)............................ 1,038,646
----------
Total Investments -- 100%
(cost $12,913,464) .................................. $14,348,909
==========
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1997.
See notes to the financial statements.
<PAGE>
JNL/PUTNAM GROWTH SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ ------
Common Stocks -- 95.45%
- -----------------------
Apparel & Textiles -- 1.05%
Liz Claiborne, Inc. ........................... 12,700 $531,019
Jones Apparel Group, Inc. (a) ................. 8,400 361,200
----------
892,219
Banks -- 6.64%
BankAmerica Corp. ............................. 27,100 1,978,300
Comerica, Inc. ................................ 9,100 821,275
Fifth Third Bancorp ........................... 3,100 253,425
First Chicago NBD Corp. ....................... 14,600 1,219,100
MBNA Corp. .................................... 44,500 1,215,406
Southtrust Corp. .............................. 200 12,688
SunTrust Banks, Inc. .......................... 1,800 128,475
----------
5,628,669
Building & Construction -- 0.89%
Masco Corp. ................................... 14,900 758,038
Business Services -- 2.89%
Cendant Corp. (a) ............................. 25,100 862,813
Interpublic Group Companies, Inc. ............. 15,100 752,169
Pitney Bowes, Inc. ............................ 5,000 449,688
Quintiles Transnational Corp. (a) ............. 10,000 382,500
----------
2,447,170
Computers & Business
Equipment--3.06%
Cisco Systems, Inc. (a) ....................... 4,350 242,512
Compaq Computer Corp. ......................... 16,100 908,644
Dell Computer Corp. (a) ....................... 7,600 638,400
EMC Corp. (a) ................................. 29,200 801,175
----------
2,590,731
Conglomerates -- 2.53%
CBS Corp. ..................................... 36,800 1,083,300
Textron, Inc. ................................. 16,900 1,056,250
----------
2,139,550
Consumer Products -- 2.54%
Estee Lauder Companies, Inc. .................. 7,300 375,494
Proctor & Gamble Co. .......................... 22,300 1,779,819
----------
2,155,313
Drugs & Health Care --12.54%
Bristol Myers Squibb Co. ...................... 19,600 1,854,650
Cardinal Health, Inc. ......................... 8,500 638,563
Eli Lilly & Co. ............................... 12,700 884,238
Healthsouth Corp. (a) ......................... 35,600 987,900
Merck & Co., Inc. ............................. 13,200 1,402,500
Pfizer, Inc. .................................. 24,500 1,826,781
Schering Plough Corp. ......................... 20,700 1,285,988
Warner Lambert Co. ............................ 14,100 1,748,400
----------
10,629,020
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Electronics -- 4.16%
General Electric Co. .......................... 37,900 $
2,780,912
Texas Instruments, Inc. ....................... 16,600 747,000
----------
3,527,912
Financial Services -- 6.76%
American Express Co. .......................... 22,000 1,963,500
Associates First Capital Corp. ................ 3,700 263,162
Franklin Resources, Inc. ...................... 8,400 730,275
Morgan Stanley, Dean Witter,
Discover & Co. ............................. 14,400 851,400
Travelers Group, Inc. ......................... 35,650 1,920,644
----------
5,728,981
Food & Beverages -- 3.57%
Campbell Soup Co. ............................. 11,300 656,812
Coca-Cola Co. ................................. 30,500 1,084,656
ConAgra, Inc. ................................. 17,500 574,219
Sara Lee Corp. ................................ 12,600 709,537
----------
3,025,224
Hotels & Restaurants -- 1.80%
Marriott International, Inc. .................. 16,700 1,156,475
Starwood Lodging Trust ........................ 6,300 364,613
----------
1,521,088
Household Products -- 2.59%
Clorox Co. .................................... 13,800 1,091,062
Colgate Palmolive Co. ......................... 15,000 1,102,500
----------
2,193,562
Industrial Machinery -- 3.05%
Ingersoll Rand Co. ............................ 18,700 757,350
Tyco International, Ltd. ...................... 40,600 1,829,537
----------
2,586,887
Insurance -- 2.62%
American International Group, ................. 11,600 1,261,500
Inc ...........................................
Conseco, Inc. ................................. 21,100 958,731
----------
2,220,231
Leisure Time -- 1.07%
Carnival Corp. ................................ 16,300 902,611
Newspapers -- 2.33%
Gannett Co. , Inc. ............................ 31,900 1,971,819
Oil -- 2.36%
Exxon Corp. ................................... 22,400 1,370,600
Mobil Corp. ................................... 8,700 628,031
----------
1,998,631
See notes to the financial statements.
<PAGE>
JNL/PUTNAM GROWTH SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Petroleum Services -- 3.60%
Halliburton Co. ............................... 28,800 $1,495,800
Schlumberger Ltd. ............................. 19,300 1,553,650
----------
3,049,450
Retail -- 11.92%
CompUSA, Inc. (a) ............................. 15,300 474,300
Consolidated Stores Corp. (a) ................. 17,900 786,481
Costco Cos., Inc. (a) ......................... 26,500 1,182,563
CVS Corp. ..................................... 30,500 1,953,906
Dayton Hudson Corp. ........................... 15,000 1,012,500
Home Depot, Inc. .............................. 10,300 606,412
Safeway, Inc. (a) ............................. 8,900 562,925
TJX Cos., Inc. ................................ 27,200 935,000
Walgreen Co. .................................. 28,500 894,188
Wal-Mart Stores, Inc. ......................... 43,000 1,695,813
----------
10,104,088
Savings & Loan -- 1.60%
Washington Mutual, Inc. ....................... 21,200 1,352,825
Software -- 9.04%
BMC Software, Inc. (a) ........................ 15,200 997,500
Computer Associates International, Inc......... 22,500 1,189,687
Compuware Corp. (a) ........................... 17,400 556,800
HBO & Co. ..................................... 24,900 1,195,200
Microsoft Corp. (a) ........................... 16,000 2,068,000
Parametric Technology Corp. (a) ............... 12,000 568,500
Peoplesoft, Inc. (a) .......................... 27,800 1,084,200
----------
7,659,887
Telecommunications -- 5.93%
Ericsson LM Tel Co. ........................... 11,200 417,900
Lucent Technologies, Inc. ..................... 10,800 862,650
SBC Communications, Inc. ...................... 10,500 769,125
Sprint Corp. .................................. 27,000 1,582,875
Tele Communications, Inc. (a) ................. 23,000 651,188
Tellabs, Inc. (a) ............................. 14,100 745,538
----------
5,029,276
Market
Shares Value
Common Stocks (continued)
Waste Management -- 0.91%
USA Waste Services, Inc. (a) ................. 19,600 $769,300
--------
Total Common Stocks
(cost $70,309,266) ...................... 80,882,482
----------
Principal
Amount
---------
Short Term Investments -- 4.55%
Money Market Funds -- 0.00%
State Street Global Advisor
Fund, 5.42%, (b) ........................... $184 184
Repurchase Agreements -- 4.55%
Repurchase Agreement with United
Bank of Switzerland, 6.25%
(Collateralized by $2,452,000
U.S. Treasury Bond, 11.25%,
due 02/15/2015, market value,
$3,941,083) acquired on
12/31/1997,
due 01/02/1998 .............................. 3,857,000 3,857,000
----------
Total Short Term Investments
(cost $3,857,184) ....................... 3,857,184
----------
Total Investments -- 100%
(cost $74,166,450) ............................ $84,739,666
===========
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1997.
See notes to the financial statements.
<PAGE>
JNL/PUTNAM VALUE EQUITY SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ ------
Common Stocks -- 93.21%
- -----------------------
Aerospace -- 3.11%
Boeing Co. .................................... 24,740 $1,210,714
Northrop Grumman Corp. ........................ 7,520 864,800
Raytheon Co. (a) .............................. 8,342 411,381
TRW, Inc. ..................................... 17,060 910,578
----------
3,397,473
Agricultural Machinery -- 0.66%
Deere & Co. ................................... 12,380 721,909
Airlines -- 0.88%
Delta Air Lines, Inc. ......................... 8,070 960,330
Automobile & Parts -- 3.43%
Chrysler Corp. ................................ 14,855 522,710
Dana Corp. .................................... 25,800 1,225,500
Eaton Corp. ................................... 8,620 769,335
Tenneco, Inc. ................................. 31,175 1,231,413
----------
3,748,958
Banks -- 10.02%
Banc One Corp. ................................ 17,395 944,766
BankBoston Corp. .............................. 6,100 573,019
Bankers Trust NY Corp. ........................ 9,445 1,061,972
Crestar Financial Corp. ....................... 600 34,227
First Chicago NBD Corp. ....................... 10,800 901,800
First Tennessee National Corp. ................ 5,100 340,425
JP Morgan & Co., Inc. ......................... 9,440 1,065,540
Mercantile Bancorporation, Inc. ............... 9,050 556,575
National City Corp. ........................... 7,985 525,014
PNC Bank Corp. ................................ 41,460 2,365,811
Summit Bancorp ................................ 10,300 548,475
SunTrust Banks, Inc. .......................... 6,280 448,235
Union Planters Corp. .......................... 9,755 662,730
Wells Fargo & Co. ............................. 2,700 916,481
----------
10,945,070
Building & Construction -- 0.58%
Masco Corp. ................................... 12,490 635,429
Business Services -- 1.56%
NCR Corp. (a) ................................. 22,330 621,053
Pitney Bowes, Inc. ............................ 12,055 1,084,197
----------
1,705,250
Chemicals -- 2.46%
DuPont E I DeNemours & Co. .................... 15,830 950,789
Eastman Chemical Co. .......................... 15,400 917,262
Witco Corp. ................................... 20,140 821,964
----------
2,690,015
Computers & Business
Equipment -- 7.29%
Hewlett Packard Co. ........................... 28,555 1,784,687
Intel Corp. ................................... 22,560 1,584,840
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Computers & Business
Equipment (continued)
International Business Machines Corp........... 17,235 $1,802,135
Seagate Technology, Inc. (a) .................. 23,565 453,626
Xerox Corp. ................................... 31,585 2,331,368
----------
7,956,656
Construction Machinery -- 0.77%
Caterpillar, Inc. ............................. 17,400 844,987
Containers & Glass -- 1.72%
Owens Illinois, Inc. (a) ...................... 40,790 1,547,471
Temple Inland, Inc. ........................... 6,235 326,168
----------
1,873,639
Drugs & Health Care -- 9.47%
American Home Products Corp. .................. 19,270 1,474,155
Baxter International, Inc. .................... 28,680 1,446,547
Bristol Myers Squibb Co. ...................... 16,900 1,599,162
Glaxo Wellcome PLC ............................ 11,445 547,929
Johnson & Johnson Co. ......................... 19,150 1,261,506
Merck & Co., Inc. ............................. 17,575 1,867,344
Pharmacia & Upjohn, Inc. ...................... 58,410 2,139,266
----------
10,335,909
Electrical Equipment -- 0.84%
Cooper Industries, Inc. ....................... 18,700 916,300
Electronics -- 2.63%
Emerson Electric Co. .......................... 18,305 1,033,088
General Motors Corp. Class H .................. 14,100 520,819
Texas Instruments, Inc. ....................... 29,260 1,316,700
----------
2,870,607
Financial Services -- 0.98%
Beneficial Corp. .............................. 7,330 609,306
Regions Financial Corp. ....................... 11,000 464,062
----------
1,073,368
Food & Beverages -- 6.55%
General Mills, Inc. ........................... 20,100 1,439,663
H. J. Heinz Co. ............................... 20,990 1,066,554
PepsiCo, Inc. ................................. 27,965 1,018,975
Quaker Oats Co. ............................... 22,090 1,165,247
Ralston Purina Co. (a) ........................ 7,265 675,191
Sara Lee Corp. ................................ 17,330 975,896
Whitman Corp. ................................. 30,950 806,634
----------
7,148,160
Gas Exploration -- 0.80%
Occidental Petroleum Corp. .................... 29,850 874,978
See notes to the financial statements.
<PAGE>
JNL/PUTNAM VALUE EQUITY SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Gas & Pipeline Utilities-- 1.10%
Coastal Corp. ................................. 13,725 $850,092
Enron Corp. ................................... 8,500 353,281
----------
1,203,373
Hotels & Restaurants -- 0.77%
ITT Corp. ..................................... 10,100 837,038
Household Products -- 0.69%
Clorox Co. .................................... 7,990 631,709
Colgate Palmolive Co. ......................... 1,600 117,600
----------
749,309
Insurance -- 3.36%
American General Corp. ........................ 21,600 1,167,750
Aon Corp. ..................................... 19,055 1,117,099
CIGNA Corp. ................................... 5,530 957,036
USF&G Corp. ................................... 19,200 423,600
----------
3,665,485
Oil -- 6.76%
Amoco Corp. ................................... 13,700 1,166,213
Atlantic Richfield Co. ........................ 13,620 1,091,303
British Petroleum Co. PLC ADR ................. 11,946 951,947
Exxon Corp. ................................... 16,380 1,002,251
Kerr McGee Corp. .............................. 8,850 560,316
Mobil Corp. ................................... 14,300 1,032,281
Tosco Corp. ................................... 28,800 1,089,000
YPF Sociedad Anonima ADR ...................... 14,200 485,463
----------
7,378,774
Paper -- 3.69%
Boise Cascade Corp. ........................... 26,780 810,095
Kimberly Clark Corp. .......................... 32,690 1,612,026
Minnesota Mining & Manufacturing Co ........... 11,505 944,129
Williamette Industries, Inc. .................. 20,690 665,959
----------
4,032,209
Petroleum Services -- 1.40%
Elf Aquitane .................................. 26,100 1,530,113
Photography -- 2.19%
Eastman Kodak Co. ............................. 20,960 1,274,630
Polaroid Corp. ................................ 23,040 1,121,760
----------
2,396,390
Pollution Control -- 0.91%
Browning-Ferris Industries, Inc. .............. 26,970 997,890
Publishing -- 1.12%
McGraw Hill Cos., Inc. ........................ 11,425 845,450
Times Mirror Co. Class A ...................... 6,100 375,150
----------
1,220,600
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Railroads & Equipment -- 1.66%
Canadian National Railway Co. ................. 11,500 $543,375
Union Pacific Corp. ........................... 20,345 1,270,291
----------
1,813,666
Retail -- 2.94%
Kmart Corp. (a) ............................... 79,600 920,375
Lowes Cos., Inc. .............................. 21,825 1,040,780
J.C. Penney, Inc. ............................. 700 42,219
Toys R Us, Inc. (a) ........................... 38,295 1,203,899
----------
3,207,273
Savings & Loan -- 0.99%
H.F. Ahmanson & Co. .......................... 8,800 589,050
Washington Mutual, Inc. ....................... 7,675 489,761
----------
1,078,811
Software -- 1.42%
Computer Associates International, Inc......... 29,350 1,551,881
Telecommunications -- 6.80%
AT&T Corp. .................................... 16,655 1,020,119
Bell Atlantic Corp. ........................... 13,130 1,194,830
Bellsouth Corp. ............................... 22,710 1,278,857
SBC Communications, Inc. ...................... 17,500 1,281,875
Sprint Corp. .................................. 26,575 1,557,959
US West, Inc. ................................. 24,250 1,094,281
----------
7,427,921
Tires & Rubber -- 1.29%
Goodyear Tire & Rubber Co. .................... 22,085 1,405,158
Tobacco -- 2.05%
Philip Morris Cos., Inc. ...................... 31,400 1,422,813
RJR Nabisco Holdings Corp. .................... 21,720 814,500
----------
2,237,313
Transportation -- 0.32%
Norfolk Southern Corp. ........................ 300 9,244
Ryder Systems, Inc. ........................... 10,500 343,875
----------
353,119
----------
Total Common Stocks
(cost $96,068,070) ........................ 101,785,361
----------
Principal
Amount
---------
Short Term Investments -- 6.79%
- -------------------------------
Money Market Fund -- 0.00%
State Street Global Advisor Fund,
5.42%, (b)................................... $637 637
See notes to the financial statements.
<PAGE>
JNL/PUTNAM VALUE EQUITY SERIES
SCHEDULE OF INVESTMENTS (continued)
Principal Market
Amount Value
--------- ------
Short Term Investments (continued)
- ----------------------------------
Repurchase Agreement -- 4.97%
Repurchase agreement with United
Bank of Switzerland, 6.25%
(Collateralized by $3,445,000
U.S. Treasury Bond, 11.25%,
due 02/15/2015, market value
$5,537,072) acquired on
12/31/97,
due 01/02/1998............................... $5,420,000 $5,420,000
U.S. Government Securities -- 1.82%
Federal Home Loan Mortgage Corp.
Discount Note 5.75%, 01/26/1998.............. 2,000,000 1,992,014
----------
Total Short Term Investments
(cost $7,412,651) ......................... 7,412,651
----------
Total Investments -- 100%
(cost $103,480,721)............................ $109,198,012
============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1997.
<PAGE>
PPM AMERICA/JNL BALANCED SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ ------
Common Stocks --50.61%
- ----------------------
Aerospace -- 2.73%
Lockheed Martin Corp. ......................... 6,200 $610,700
Raytheon Co. (a) .............................. 1 27
TRW, Inc. ..................................... 10,200 544,425
United Technologies Corp. ..................... 6,300 458,719
-----------
1,613,871
Apparel & Textiles -- 1.28%
Liz Claiborne, Inc. ........................... 7,000 292,688
VF Corp. ...................................... 10,100 463,969
-----------
756,657
Automobiles & Parts -- 2.07%
Ford Motor Company ............................ 12,900 628,069
General Motors Corp. .......................... 9,800 594,125
-----------
1,222,194
Banks -- 3.87%
BankAmerica Corp. ............................. 3,000 219,000
Charter One Financial, Inc. ................... 7,800 492,375
Chase Manhattan Corp. ......................... 6,100 667,950
KeyCorp ....................................... 8,200 580,663
Mellon Bank Corp. ............................. 5,400 327,375
-----------
2,287,363
Chemicals -- 2.80%
Dow Chemical Co. .............................. 4,500 456,750
PPG Industries, Inc. .......................... 10,000 571,250
Rohm & Haas Co. ............................... 6,500 622,375
-----------
1,650,375
Computers & Business
Equipment -- 2.23%
International Business Machines Corp........... 6,600 690,112
Xerox Corp. ................................... 8,500 627,406
-----------
1,317,518
Conglomerates -- 0.80%
ITT Industries, Inc. .......................... 15,000 470,625
Drugs & Health Care -- 1.92%
Columbia/HCA Healthcare Corp. ................. 20,500 607,312
Wellpoint Health Networks, Inc. (a) ........... 12,500 528,125
-----------
1,135,437
Electric Utilities -- 3.06%
First Energy Corp. ............................ 22,700 658,300
GPU, Inc. ..................................... 14,000 589,750
Peco Energy Co. ............................... 23,100 560,175
-----------
1,808,225
Electrical Equipment -- 0.76%
Cooper Industries, Inc. ....................... 9,200 450,800
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Electronics -- 1.04%
Harris Corp. .................................. 13,400 $614,725
Financial Services -- 1.64%
American Financial Group, Inc. ................ 8,900 358,781
Beneficial Corp. .............................. 7,300 606,812
-----------
965,593
Gas Exploration -- 1.13%
Occidental Petroleum Corp. .................... 22,800 668,325
Household Appliances &
Furnishings -- 0.81%
Maytag Corp. .................................. 12,800 477,600
Industrial Machinery -- 0.75%
Parker Hannifin Corp. ......................... 9,600 440,400
Insurance -- 4.76%
Aetna, Inc. ................................... 8,700 613,894
American General Corp. ........................ 11,000 594,687
CIGNA Corp. ................................... 3,400 588,412
Hartford Financial Services Group, Inc. ....... 6,600 617,513
TransAmerica Corp. ............................ 3,700 394,050
-----------
2,808,556
Liquor -- 0.86%
Anheuser Busch Cos., Inc. ..................... 11,600 510,400
Mining -- 1.02%
Phelps Dodge Corp. ............................ 9,700 603,825
Oil & Gas -- 2.82%
Ashland, Inc. ................................. 9,800 526,137
Chevron Corp. ................................. 7,400 569,800
Phillips Petroleum Co. ........................ 11,700 568,913
-----------
1,664,850
Paper -- 0.74%
Mead Corp. .................................... 15,600 436,800
Photography -- 0.70%
Polaroid Corp. ................................ 8,500 413,844
Retail -- 1.76%
Federated Department Stores, Inc. (a) ......... 10,800 465,075
Kmart Corp. (a) ............................... 49,400 571,188
-----------
1,036,263
Steel -- 0.74%
Nucor Corp. ................................... 9,100 439,644
Telecommunications -- 5.61%
AT&T Corp. .................................... 11,000 673,750
GTE Corp. ..................................... 11,500 600,875
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL BALANCED SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ ------
Common Stocks (continued)
- -------------------------
Telecommunications (continued)
SBC Communications, Inc. ...................... 8,600 $629,950
Sprint Corp. .................................. 12,000 703,500
U S West Communications Inc. (a) .............. 15,600 703,950
-----------
3,312,025
Tobacco -- 2.05%
Philip Morris Cos. Inc. ....................... 13,000 589,063
RJR Nabisco Holdings Corp. .................... 16,500 618,750
-----------
1,207,813
Toys -- 0.84%
Hasbro, Inc. .................................. 15,800 497,700
Transportation -- 1.82%
Burlington Northern Santa Fe .................. 5,400 501,862
Railroad
CSX Corp. ..................................... 10,600 572,400
-----------
1,074,262
-----------
Total Common Stocks
(cost $26,840,717) ........................ 29,885,690
-----------
Principal
Amount
---------
Corporate Bonds -- 14.86%
- -------------------------
Aerospace -- 0.52%
K & F Industries, Inc., (144a)
9.25%, 10/15/2007............................ $300,000 307,500
Banks -- 0.57%
First Nationwide Holdings, Inc., (144a)
10.625%, 10/01/2003 ......................... 300,000 335,250
Broadcasting -- 0.60%
Capstar Broadcasting Partners, Inc.
(step-up bond),
12.75%, 02/01/2009 (d) ...................... 500,000 355,000
Building & Construction -- 0.52%
D. R. Horton, Inc. ............................
8.375%, 06/15/2004 .......................... 300,000 305,400
Chemicals -- 1.53%
LaRoche Industries, Inc., (144a)
9.50%, 09/15/2007 ........................... 300,000 298,500
PCI Chemicals Canada, Inc., (144a)
9.25%, 10/15/2007 ........................... 300,000 299,250
Pharmaceutical Fine Chemicals, (144a)
9.75%, 11/15/2007 ........................... 300,000 304,500
-----------
902,250
Consumer Products -- 0.47%
Revlon Worldwide Corp. (144a), Zero
Coupon, 03/15/2001 .......................... 400,000 279,000
Principal Market
Amount Value
--------- ------
Corporate Bonds (continued)
- ---------------------------
Conglomerates --1.58%
Burke Industries, Inc., (144a)
10.00%, 08/15/2007 .......................... 300,000 $308,250
Knology Holdings, Inc., (144a),
(step-up bond),
11.875%, 10/15/2007 (d) ..................... 600,000 328,500
National Equipment Services, Inc. .............
10.00%, 11/30/2004 .......................... 300,000 297,000
-----------
933,750
Containers & Glass -- 1.05%
Riverwood International Corp., (144a)
10.625%, 08/01/2007 ......................... 300,000 303,940
U.S. Can Corp. Series B, (144a)
8.125%, 10/15/2006 .......................... 300,000 317,250
-----------
621,190
Defense -- 0.56%
Alliant Techsystems, Inc., (144a)
11.75%, 03/01/2003 .......................... 300,000 328,500
Electronics -- 0.51%
Wyman-Gordon Co. ..............................
8.00%, 12/15/2007 ........................... 300,000 303,000
Gaming -- 1.10%
Horseshoe Gaming, Inc., Series B
12.75%, 09/30/2000 .......................... 300,000 333,000
Rio Hotel & Casino, Inc., (144a)
9.50%, 04/15/2007 ........................... 300,000 318,000
---------- -----------
651,000
Media & Cable -- 1.60%
Century Communications Corp.
9.50%, 08/15/2000 ........................... 250,000 261,250
Frontiervision Holdings, LP, (144a)
(step-up bond)
11.875%, 09/15/2007 (d) .................. 500,000 366,250
Rogers Cantel, Inc.
9.375%, 06/01/2008 .......................... 300,000 316,500
-----------
944,000
Paper -- 0.03%
Buckeye Technologies, Inc.
9.25%, 09/15/2008 ........................... 15,000 15,787
Petroleum Services -- 1.50%
DI Industries, Inc.
8.875%, 07/01/2007 .......................... 300,000 307,966
Pogo Producing Co., Series B (144a)
8.75%, 05/15/2007 ........................... 250,000 256,250
Pride Petroleum Services, Inc.
9.375%, 05/01/2007 .......................... 300,000 322,500
-----------
886,716
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL BALANCED SERIES
SCHEDULE OF INVESTMENTS (continued)
Principal Market
Amount Value
--------- ------
Corporate Bonds (continued)
- ---------------------------
Pollution Control -- 0.59%
Allied Waste Industries, Inc.
(step-up bond),
11.30%, 06/01/2007 (d)..................... $500,000 $351,250
Retail -- 0.52%
Specialty Retailers, Inc.,
Series B, (144a)
8.50%, 07/15/2005 ........................... 300,000 304,500
Steel -- 0.50%
Armco, Inc., (144a)
9.00%, 09/15/2007 ........................... 300,000 294,000
Telecommunications -- 0.58%
Metronet Communications Corp.,
12.00%, 08/15/2007 .......................... 300,000 345,000
Transportation -- 0.53%
Continental Airlines, Inc., (144a)
9.50%, 12/15/2001 ........................... 300,000 315,000
-----------
Total Corporate Bonds
(cost $8,572,904) ......................... 8,778,093
-----------
U.S. Government Securities -- 32.93%
- ------------------------------------
U.S. Governmental Agencies -- 11.85%
Federal Home Loan Mortgage Corp. ..............
6.50%, 05/01/2001 ........................... 704,707 708,892
6.75%, 06/15/2004 ........................... 596,854 606,179
8.00%, 09/01/2011 ........................... 1,085,954 1,120,566
6.50%, 04/01/2012 ........................... 727,046 728,180
7.50%, 03/01/2027 ........................... 738,874 756,652
6.50%, 12/01/2027 ........................... 500,000 494,215
Federal National Mortgage
Association
7.50%, 04/01/2012 ........................... 730,730 749,678
Government National
Mortgage Association
6.50%, 12/15/2023 ........................... 251,120 249,159
6.50%, 04/15/2026 ........................... 1,086,048 1,074,839
7.50%, 07/15/2027 ........................... 498,182 510,325
-----------
6,998,685
U.S. Treasury Bonds -- 4.89%
6.04%, 05/15/2016, principal only (c)........ 600,000 200,774
6.07%, 11/15/2016, principal only (c)........ 2,250,000 728,122
6.08%, 11/15/2017, principal only (c)........ 800,000 242,688
6.25%, 08/15/2023 ........................... 1,200,000 1,236,000
Principal Market
Amount Value
--------- ------
U.S. Government Securities (continued)
- --------------------------------------
U.S. Treasury Bonds (continued)
6.04%, 11/15/2024, principal only (c) ....... $1,300,000 $261,417
6.625%, 02/15/2027 .......................... 200,000 217,124
-----------
2,886,125
U.S. Treasury Notes -- 16.19%
5.00%, 01/31/1998 ........................... 600,000 599,622
5.875%, 08/15/1998 .......................... 400,000 400,564
6.375%, 01/15/1999 .......................... 2,750,000 2,771,065
6.875%, 07/31/1999 .......................... 1,700,000 1,730,277
6.25%, 08/31/2000 ........................... 1,400,000 1,418,816
6.25%, 10/31/2001 ........................... 600,000 610,218
6.25%, 02/15/2003 ........................... 1,300,000 1,329,458
5.875%, 11/15/2005 .......................... 700,000 703,717
-----------
9,563,737
-----------
Total U.S. Government Securities
(cost $19,105,860) ...................... 19,448,547
-----------
Mortgage Backed Securities -- 0.80%
- -----------------------------------
Prudential Home Loan Mortgage
Securities Co., Series 1993-44,
Class A5
6.00%, 11/25/2023 ........................... 700,000 470,654
-----------
Total Mortgage Backed Securities
(cost $458,089) ......................... 470,654
-----------
Short Term Investments -- 0.80%
- -------------------------------
Commercial Paper -- 0.76%
American Express Credit Corp.
6.65%, 01/02/1998 ........................... 450,000 449,917
Money Market Fund -- 0.04%
State Street Global Advisor Fund,
5.42% (b) ................................... 20,443 20,443
-----------
Total Short Term Investments
(cost $470,360) ......................... 470,360
-----------
Total Investments -- 100%
- -------------------------
(cost $55,447,930) ............................ $59,053,344
===========
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1997.
(c) The interest rate disclosed for principal only strip represents effective
yield at December 31, 1997, based upon estimated future cash flows.
(d) Denotes deferred interest security that receives no current coupon payments
until a predetermined date at which time the stated coupon rate becomes
effective.
See notes to the financial statements
<PAGE>
PPM AMERICA/JNL HIGH YIELD BOND SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Principal Market
Amount Value
--------- ------
Corporate Bonds -- 96.69%
Aerospace -- 1.84%
K & F Industries, Inc., (144a)
9.25%, 10/15/2007...........$ ............ $
1,100,000 1,127,500
Agricultural Machinery -- 1.25%
AGCO Corp. (144a), 8.50%, ..................... 750,000 766,875
03/15/2006
Apparel & Textiles -- 2.31%
Pillowtex Corp., 10.00%, ...................... 1,330,000 1,416,450
11/15/2006
Banks -- 2.37%
First Nationwide Holdings, Inc. ...............
(144a) ........................................ 1,300,000 1,452,750
10.625%, 10/01/2003
Broadcasting -- 2.83%
Capstar Broadcasting Partners,
Inc.,
(step-up bond), 12.75%,
02/01/2009 (a) ........................ 1,000,000 710,000
Jacor Communications Co.,
8.75%, 06/15/2007 ........................ 1,000,000 1,025,000
-----------
1,735,000
Building & Construction -- 2.99%
D.R. Horton, Inc., 8.375%, .................... 1,000,000 1,017,999
06/15/2004
Nortek, Inc., 9.125%, 09/01/2007 ............. 500,000 503,750
Toll Corp., 8.75%, 11/15/2006 ................. 300,000 313,500
-----------
1,835,249
Chemicals -- 8.52%
Freedom Chemical Co.,
10.625%, 10/15/2006 ...................... 500,000 550,000
Key Plastics, Inc. (144a),
10.25%, ....................................... 1,000,000 1,060,000
03/15/2007
Laroche Industries, Inc.,
(144a), 9.50%, ................................ 1,000,000 995,000
09/15/2007
PCI Chemicals Canada, Inc. ,
(144a) ........................................ 1,300,000 1,296,750
9.25%, 10/15/2007
Pharmaceutical Fine Chemicals,
(144a) ........................................ 1,300,000 1,319,500
9.75%, 11/15/2007
-----------
5,221,250
Communications -- 12.11%
Communications Instruments, Inc.,
10.00%, 09/15/2004 ....................... 1,000,000 1,020,000
Gray Communications,
10.625%, 10/01/2006 ...................... 1,100,000 1,188,000
Highwaymaster Communications,
13.75%, 09/15/2005 ....................... 1,000,000 1,022,500
Intermedia Communications, Inc.,
8.875%, 11/01/2007 ....................... 1,000,000 1,027,500
8.50%, 01/15/2008 ........................ 400,000 400,000
Metronet Communications Corp.,
12.00%, 08/15/2007 ....................... 1,300,000 1,495,000
Rogers Cantel Mobile, Inc.,
9.375%, 06/01/2008 ....................... 1,000,000 1,055,000
9.75%, 06/01/2016 ........................ 200,000 214,000
-----------
7,422,000
Principal Market
Amount Value
--------- ------
Corporate Bonds (continued)
- ---------------------------
Conglomerates -- 3.64%
Burke Industries, Inc., (144a),
10.00%, 08/15/2007............................. $1,000,000 $1,027,500
Knology Holdings, Inc., (144a)
(step-up bond)
11.875%, 10/15/2007 (a)................ 2,200,000 1,204,500
-----------
2,232,000
Consumer Products -- 2.39%
Revlon Worldwide Corp. (144a),
Zero Coupon, 03/15/2001 ....................... 1,800,000 1,255,500
Simmons Co., 10.75%,04/15/2006 ............... 200,000 210,500
-----------
1,466,000
Defense -- 1.79%
Alliant Techsystems, Inc., (144a)
11.75%, 03/01/2003 ......................... 1,000,000 1,095,000
Drugs & Health Care -- 1.74%
Leiner Health Products (144a)
9.625%, 07/01/2007 ....................... 1,000,000 1,065,000
Electronics -- 2.80%
Tracor, Inc. (144a), 8.50%, 03/01/2007......... 700,000 707,000
Wyman-Gordon Co.,
8.00%, 12/15/2007 ........................ 1,000,000 1,010,000
-----------
1,717,000
Food & Beverages -- 1.44%
International Home Foods, Inc.,
10.375%, 11/01/2006 ...................... 700,000 770,000
Keebler Corp., 10.75%, 07/01/2006 ............. 100,000 112,750
-----------
882,750
Gaming -- 3.55%
Harvey's Casino Resorts,
10.625%, 06/01/2006 ...................... 200,000 217,000
Horseshoe Gaming, Inc., Series B,
12.75%, 09/30/2000........................ 800,000 888,000
Rio Hotel & Casino, Inc. (144a)
10.625%, 07/15/2005 ...................... 600,000 649,500
9.50%, 04/15/2007 ........................ 400,000 424,000
-----------
2,178,500
Hotels & Restaurants -- 2.15%
Sun International Hotels, Ltd.,
8.625%, 12/15/2007 ....................... 1,300,000 1,319,500
Industrial Machinery -- 2.27%
Day International Group, Inc.,
Series B, 11.125%, 06/01/2005.................. 100,000 108,000
National Equipment Services, Inc.,
10.00%, 11/30/2004........................ 1,300,000 1,287,000
-----------
1,395,000
Leisure Time -- 1.73%
Hollywood Theaters, Inc.,
10.625%, 08/01/2007 ...................... 1,000,000 1,062,500
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL HIGH YIELD BOND SERIES
SCHEDULE OF INVESTMENTS (continued)
Principal Market
Amount Value
--------- ------
Corporate Bonds (continued)
- ---------------------------
Media & Cable -- 6.97%
Century Communications Corp. ..................
9.75%, 02/15/2002...........$ ............ $
400,000 420,000
9.50%, 03/01/2005 ........................ 100,000 106,000
8.875%, 01/15/2007 ....................... 500,000 515,000
Frontiervision, 11.00%,10/15/2006 ............. 400,000 444,000
Frontiervision Holdings, LP,
(144a)
(step-up bond),
11.875%, 09/15/2007 (a).. 1,000,000 ... 732,500
Jones Intercable, Inc., 9.625%,
03/15/2002 ............................... 425,000 455,812
Marcus Cable Co., ............................. 735,000 799,313
11.875%,10/01/2005
Rogers Cablesystems Limited
9.625%, 08/01/2002 ....................... 650,000 690,625
10.00%, 03/15/2005 ....................... 100,000 110,000
-----------
4,273,250
Packaging -- 5.63%
Huntsman Packaging Corp.,
8.625%, 10/01/2007 ....................... 1,000,000 1,020,000
Riverwood International Corp.,
10.625%, 8/01/2007 ....................... 1,000,000 1,013,132
Stone Container Corp., 12.25%,
04/01/2002 ............................... 1,400,000 1,417,500
-----------
3,450,632
Petroleum Services -- 12.57%
COHO Energy, Inc., 8.875%,
10/15/2007 ............................... 1,000,000 1,000,000
Cross Timbers Oil Co.,
8.75%, 11/01/2009 ........................ 1,000,000 1,020,000
DI Industries, Inc., 8.875%, .................. 1,000,000 1,026,552
07/01/2007
Newpark Resources, Inc.,
8.625%, 12/15/2007 ....................... 1,000,000 1,015,000
Ocean Energy, Inc. (144a),
8.875%, ....................................... 1,000,000 1,062,500
07/15/2007
Parker Drilling Co., Series B,
9.75%, ........................................ 700,000 750,750
11/15/2006
Pride Petroleum Services, Inc.,
9.375%, 05/01/2007 ....................... 1,000,000 1,075,000
Veritas DGC, Inc., 9.75%, ..................... 700,000 756,000
10/15/2003
-----------
7,705,802
Pollution Control -- 2.09%
Allied Waste Industries, Inc. .................
(step-up bond),
11.30%, 06/01/2007 (a) ................ 1,000,000 702,500
Norcal Waste System, Inc.,
Series B, ..................................... 500,000 580,000
(step-up bond), 13.50%,
11/15/2005
-----------
1,282,500
Printing & Publishing -- 0.86%
Hollinger International
Publishing, Inc., ............................. 500,000 525,000
9.25%, 03/15/2007
Principal Market
Amount Value
--------- ------
Corporate Bonds (continued)
- ---------------------------
Retail -- 4.49%
Finlay Enterprises, Inc.,
(step-up bond), ............................... $ $
12.00%, 05/01/2005 (a) ................... 400,000 394,000
Specialty Retailers, Inc.,
Series B (144a), .............................. 1,300,000 1,319,500
8.50%, 07/15/2005
Stater Brothers Holdings, Inc.,
9.00%, 07/01/2004 ........................ 1,000,000 1,040,000
-----------
2,753,500
Steel -- 4.28%
Armco, Inc., (144a) 9.00%, .................... 1,300,000 1,274,000
09/15/2007
Carpenter W.R. North America
Inc., ......................................... 1,000,000 1,035,000
(144a), 10.625%, 06/15/2007
NS Group, Inc., 13.50%, ....................... 270,000 313,200
07/15/2003
-----------
2,622,200
Tobacco -- 1.22%
Dimon, Inc., 8.875%, 06/01/2006 ............... 700,000 745,255
Transportation -- 0.86%
Continental Airlines, Inc.,
(144a) ........................................ 500,000 525,000
9.50%, 12/15/2001
-----------
Total Corporate Bonds
(cost $57,738,230) .................. 59,273,463
-----------
Shares
Common Stocks -- 0.65%
Chemicals -- 0.11%
General Chemical Group, Inc. .................. 2,500 66,875
Communications -- 0.02%
Highwaymaster Communications,
Inc., (c) .................................. 1,000 12,000
Computer Services -- 0.11%
Bell & Howell Co. (c) ......................... 2,700 65,306
Containers -- 0.10%
U.S. Can Corp. (c) ............................ 3,800 64,125
Paper -- 0.16%
Buckeye Technologies, Inc. (c) ............... 2,100 97,125
Steel -- 0.15%
NS Group, Inc. (c) ............................ 5,264 90,146
-----------
Total Common Stocks
(cost $276,910) ..................... 395,577
-----------
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL HIGH YIELD BOND SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Preferred Stocks -- 1.11%
Broadcasting -- 1.11%
American Radio Systems Corp. (144a)
(cost $572,315) ............................. 5,689 $682,680
-----------
Warrants & Rights -- 0.01%
Industrial Machinery -- 0.01%
Terex Corp. Rights
(cost $831) ................................. 400 5,800
-----------
Principal Market
Amount Value
--------- ------
Short Term Investments -- 1.54%
- -------------------------------
Commercial Paper -- 1.51%
American Express Credit Corp.,
6.65%, ........................................ $ $
01/02/1998 ................................. 300,000 299,945
Ford Motor Credit Co., 6.14%,
01/02/1998 ................................. 625,000 624,893
-----------
924,838
Money Market Funds -- 0.03%
State Street Global Advisor
Fund, 5.42%, (b) ........................... 20,806 20,806
-----------
Total Short Term Investments
(cost $945,644) ..................... 945,644
-----------
Total Investments -- 100%
(cost $59,533,930) ............................ $61,303,164
===========
- --------------------------------------------------------------------------------
(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, 1997.
(c) Non-income producing security.
<PAGE>
PPM AMERICA/JNL MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Principal Market
Amount Value
--------- ------
Commercial Paper -- 100%
- ------------------------
Captive Finance -- 19.29%
American Express Credit Corp.
6.65%, 01/02/1998............................ $1,275,000 $1,274,764
5.50%, 01/06/1998 ........................... 75,000 74,943
5.85%, 01/21/1998 ........................... 320,000 318,960
Chrysler Financial Corp.
5.60%, 02/27/1998 ........................... 725,000 718,572
5.70%, 03/06/1998 ........................... 265,000 262,315
Ford Motor Credit Co.
5.63%, 01/06/1998 ........................... 300,000 299,765
5.80%, 01/14/1998 ........................... 340,000 339,288
5.74%, 02/06/1998 ........................... 350,000 347,991
5.71%, 03/26/1998 ........................... 465,000 458,805
General Motors Acceptance Corp.
5.83%, 01/22/1998 ........................... 125,000 124,575
5.54%, 02/02/1998 ........................... 150,000 149,261
5.56%, 02/02/1998 ........................... 300,000 298,517
5.74%, 02/09/1998 ........................... 125,000 124,223
5.62%, 02/17/1998 ........................... 185,000 183,643
5.63%, 03/02/1998 ........................... 200,000 198,123
5.60%, 03/20/1998 ........................... 500,000 493,933
John Deere Capital Corp.
5.56%, 01/12/1998 ........................... 250,000 249,575
5.56%, 01/14/1998 ........................... 407,000 406,183
Sears Roebuck Acceptance Corp.
5.56%, 01/20/1998 ........................... 200,000 199,413
5.73%, 02/10/1998 ........................... 200,000 198,727
5.72%, 02/18/1998 ........................... 250,000 248,093
5.53%, 02/23/1998 ........................... 400,000 396,743
5.62%, 03/02/1998 ........................... 500,000 495,317
5.54%, 03/04/1998 ........................... 205,000 203,044
-----------
8,064,773
Casinos -- 1.61%
Circus Circus Enterprises, Inc.
5.89%, 01/07/1998 ........................... 675,000 674,337
Chemicals -- 3.76% DuPont E I DeNemours & Co.
5.49%, 02/03/1998 ........................... 455,000 452,710
5.80%, 02/03/1998 ........................... 610,000 606,757
5.67%, 03/05/1998 ........................... 221,000 218,807
5.70%, 04/09/1998 ........................... 300,000 295,345
-----------
1,573,619
Computers -- 3.81%
International Business Machines
Credit Corp.
5.79%, 01/12/1998 ........................... 500,000 499,115
5.71%, 01/15/1998 ........................... 505,000 503,879
5.71%, 02/04/1998 ........................... 292,000 290,425
5.73%, 02/13/1998 ........................... 300,000 297,947
-----------
1,591,366
Principal Market
Amount Value
--------- ------
Commercial Paper (continued)
- ----------------------------
Consumer Finance -- 18.23%
American General Financial Corp.
5.54%, 01/12/1998............................ $285,000 $284,518
5.54%, 01/14/1998 ........................... 280,000 279,440
5.70%, 04/09/1998 ........................... 400,000 393,793
Beneficial Corp.
5.70%, 01/21/1998 ........................... 175,000 174,446
5.58%, 02/17/1998 ........................... 135,000 134,017
5.58%, 02/23/1998 ........................... 1,000,000 991,785
5.60%, 03/09/1998 ........................... 200,000 197,916
Heller Financial, Inc.
5.65%, 01/05/1998 ........................... 200,000 199,874
5.56%, 01/08/1998 ........................... 510,000 509,449
5.90%, 01/09/1998 ........................... 390,000 389,489
5.58%, 01/20/1998 ........................... 125,000 124,632
5.73%, 03/09/1998 ........................... 170,000 168,187
5.58%, 03/19/1998 ........................... 400,000 395,226
Household Financial Corp.
5.55%, 01/16/1998 ........................... 1,210,000 1,207,202
5.55%, 01/21/1998 ........................... 100,000 99,692
5.59%, 02/03/1998 ........................... 355,000 353,181
Norwest Financial, Inc.
5.53%, 01/15/1998 ........................... 225,000 224,516
5.53%, 02/06/1998 ........................... 410,000 407,733
5.68%, 02/10/1998 ........................... 470,000 467,034
5.59%, 02/23/1998 ........................... 225,000 223,148
5.67%, 03/17/1998 ........................... 400,000 395,275
-----------
7,620,553
Consumer Products -- 3.86%
Conagra, Inc. .................................
6.15%, 01/05/1998 ........................... 400,000 399,727
6.20%, 01/05/1998 ........................... 102,000 101,930
6.27%, 01/07/1998 ........................... 135,000 134,858
7.25%, 01/07/1998 ........................... 100,000 99,879
Procter & Gamble Co. ..........................
6.50%, 01/06/1998 ........................... 880,000 879,206
-----------
1,615,600
Drugs & Health Care -- 6.35% A H Robins Co., Inc.
5.70%, 03/13/1998 ........................... 850,000 840,445
Allergan, 6.05%, 02/17/1998 ................... 900,000 892,891
Schering Corp.
5.52%, 01/13/1998 ........................... 805,000 803,519
5.67%, 02/04/1998 ........................... 117,000 116,373
-----------
2,653,228
Financial Services -- 5.76%
AC Acquisition Holding Co.
5.70%, 02/18/1998 ........................... 750,000 744,300
See notes to the financial statements.
<PAGE>
PPM AMERICA/JNL MONEY MARKET SERIES
SCHEDULE OF INVESTMENTS (continued)
Principal Market
Amount Value
--------- ------
Commercial Paper (continued)
- ----------------------------
Financial Services (continued)
Merrill Lynch & Co.
5.62%, 01/02/1998............................ $200,000 $199,969
5.74%, 01/05/1998 ........................... 299,000 298,809
5.61%, 01/21/1998 ........................... 280,000 279,127
5.65%, 01/30/1998 ........................... 100,000 99,545
5.58%, 03/17/1998 ........................... 350,000 345,931
5.71%, 04/30/1998 ........................... 250,000 245,281
5.71%, 06/17/1998 ........................... 200,000 194,702
-----------
2,407,664
Food & Beverages -- 1.16% H J Heinz Co.
5.55%, 06/22/1998 ........................... 500,000 486,742
Gas & Pipeline Utilities -- 0.99%
Consolidated Natural Gas Co.
6.20%, 01/07/1998 ........................... 415,000 414,571
Independent Finance -- 11.53%
Associates Corp. of North America
5.75%, 01/22/1998 ........................... 618,000 615,927
5.60%, 01/30/1998 ........................... 500,000 497,744
5.68%, 04/06/1998 ........................... 420,000 413,705
CIT Group Holdings, Inc.
5.59%, 02/20/1998 ........................... 500,000 496,118
5.58%, 03/03/1998 ........................... 700,000 693,381
5.58%, 03/27/1998 ........................... 500,000 493,412
General Electric Capital Corp.
5.59%, 02/17/1998 ........................... 578,000 573,782
5.54%, 03/04/1998 ........................... 300,000 297,138
5.61%, 03/23/1998 ........................... 158,000 156,006
5.65%, 05/19/1998 ........................... 300,000 293,502
5.59%, 08/04/1998 ........................... 300,000 289,985
-----------
4,820,700
Insurance -- 3.67% USAA Capital Corp.
5.52%, 01/05/1998 ........................... 150,000 149,908
5.50%, 01/06/1998 ........................... 363,000 362,723
5.52%, 01/06/1998 ........................... 220,000 219,831
5.68%, 01/26/1998 ........................... 300,000 298,817
5.73%, 02/13/1998 ........................... 505,000 501,544
-----------
1,532,823
Leisure Time -- 2.69%
Walt Disney Co.
6.00%, 01/05/1998 ........................... 300,000 299,800
6.50%, 01/05/1998 ........................... 200,000 199,856
5.64%, 03/19/1998 ........................... 282,000 278,598
5.56%, 06/24/1998 ........................... 355,000 345,460
-----------
1,123,714
Principal Market
Amount Value
--------- ------
Commercial Paper (continued)
- ----------------------------
Mortgage Banking -- 3.87%
Countrywide Home Loans, Inc.
5.85%, 01/26/1998............................ $400,000 $398,375
5.87%, 01/26/1998 ........................... 600,000 597,554
5.62%, 01/30/1998 ........................... 250,000 248,868
5.82%, 01/30/1998 ........................... 375,000 373,242
-----------
1,618,039
Packaging -- 1.43%
Crown Cork & Seal, Inc.
6.02%, 02/18/1998 ........................... 377,000 373,974
5.97%, 03/12/1998 ........................... 225,000 222,388
-----------
596,362
Publishing -- 3.86% McGraw Hill, Inc.
5.75%, 01/20/1998 ........................... 750,000 747,724
5.70%, 02/09/1998 ........................... 300,000 298,148
5.58%, 02/10/1998 ........................... 175,000 173,915
5.67%, 03/19/1998 ........................... 400,000 395,149
-----------
1,614,936
Telecommunications -- 6.45%
Ameritech Corp.
5.80%, 01/29/1998 ........................... 495,000 492,767
Bellsouth Telecommunications, Inc
6.05%, 01/09/1998 ........................... 550,000 549,261
GTE Corp.
6.07%, 01/23/1998 ........................... 700,000 697,403
6.30%, 01/23/1998 ........................... 100,000 99,615
6.52%, 01/28/1998 ........................... 250,000 248,777
6.05%, 02/20/1998 ........................... 112,000 111,059
6.07%, 02/20/1998 ........................... 400,000 396,628
6.12%, 02/20/1998 ........................... 100,000 99,150
-----------
2,694,660
Utilities -- 1.68%
Florida Power Co. .............................
5.75%, 02/19/1998 ........................... 710,000 704,443
-----------
Total Commercial Paper
(cost $41,808,130) ................. 41,808,130
-----------
Money Market Fund -- 0.00%
- --------------------------
State Street Global Advisor Fund
5.16% (a) (cost $1,944) .................... 1,944 1,944
-----------
Total Investments -- 100%
- -------------------------
(cost $41,810,074) ............................ $41,810,074
===========
- --------------------------------------------------------------------------------
(a) Dividend yields change daily to reflect current market conditions. Rate
shown is the quoted yield as of December 31, 1997.
<PAGE>
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Principal Market
Amount Value
------ -----
Corporate Bonds -- 36.75%
Germany -- 1.86%
Banks -- 1.48%
Bundesrepublik Deutschland,
6.50%, 07/04/2027............................. $ 990,000 $596,108
Business Services -- 0.38%
Treuhandanstalt, 7.375%,
12/02/2002 ........................................ 250,000 154,173
--------
Total Germany .................................. 750,281
United States -- 34.89%
Aerospace Industries -- 0.40%
Talley Industries, 10.75%, ........................ 150,000 159,750
10/15/2003
Banks -- 2.34%
Banc One Corp., 7.60%, 05/01/2007 ................. 600,000 644,922
Malayan Banking Berhad, NY,
7.125%, 09/15/2005 ........................... 210,000 190,645
Midland Bank PLC, 7.65%, 05/01/2025................ 100,000 108,706
--------
944,273
Broadcasting -- 1.13%
Cablevision Systems Corp.,
10.50%, 05/15/2016 (d) ....................... 250,000 291,250
SFX Broadcasting, Inc.,
10.75%, 05/15/2006 ........................... 150,000 164,625
--------
455,875
Building & Construction -- 1.35%
Nortek, Inc., 9.125%, 09/01/2007 ................. 250,000 251,875
Southdown, Inc. Series B,
10.00%, 03/01/2006 ........................... 125,000 137,188
Synthetic Industries, Inc. (144a),
9.25%, 02/15/2007 ............................ 150,000 157,500
--------
546,563
Business Services -- 1.29%
Iron Mountain, Inc.,
10.125%, 10/01/2006 .......................... 150,000 165,000
Ryder Trucks, Inc.,
10.00%, 12/01/2006 (d) ....................... 200,000 200,000
Williams Scotsman, Inc. (144a),
9.875%, 06/01/2007 ........................... 150,000 154,500
--------
519,500
Capital Goods -- 0.20%
Alvey Systems, Inc. 11.375%,
01/31/2003 .................................... 75,000 81,750
Chemicals -- 0.26%
Radnor Holdings Inc.,
10.00%, 12/01/2003 ........................... 100,000 103,750
Principal Market
Amount Value
------ -----
United States (continued)
Conglomerates -- 1.27%
Burke Industries, Inc.,
10.00%, 08/15/2007........................ $ 250,000 $ 256,875
Insilco Corp., 10.25%, 08/15/2007 ............. 150,000 157,125
Polymer Group, Inc.,
9.00%, 07/01/2007 ........................ 100,000 99,750
----------
513,750
Consumer Goods -- 0.90%
Coleman Holdings, Inc., Zero
Coupon, 05/15/2001 ....................... 300,000 199,500
International Knife & Saw, Inc.
11.375%, 11/15/2006 ...................... 150,000 162,000
----------
361,500
Containers & Glass -- 1.29%
Stone Container Corp.,
12.25%, 04/01/2002 ....................... 250,000 253,125
Plastic Containers, Inc.,
10.00%, 12/15/2006 ....................... 250,000 268,028
----------
521,153
Cosmetics & Toiletries -- 0.76%
French Fragrances, Inc. (144a),
10.375%, 05/15/2007 ...................... 125,000 131,250
Revlon Worldwide Corp. (144a),
Zero Coupon, 03/15/2001 .................. 250,000 174,375
----------
305,625
Drugs & Health Care -- 1.74%
Eye Care Centers of America,
Inc., .12.00%, 10/01/2003...................... 200,000 216,000
Imagyn Medical Technologies,
Inc., 12.50%, 04/01/2004 ................. 250,000 236,875
Integrated Health Services, Inc.,
9.50%, 09/15/2007 ........................ 100,000 103,000
Packard Bioscience Co.,
9.375%, 03/01/2007 ....................... 150,000 144,000
----------
699,875
Electronics -- 0.93%
Clark-Schwebel, Inc.,
10.50%, 04/15/2006 (d) ................... 250,000 272,500
Foamex LP/ Foamex Cap Corp. ...................
(144a),9.875%, 06/15/2007 ................. 100,000 102,500
----------
375,000
Financial Services -- 2.78%
Aetna Services Inc.,
7.625%, 08/15/2026 ....................... 200,000 210,824
Green Tree Financial Corp.,
7.07%, 09/15/2007 ........................ 600,000 608,185
PaineWebber Group, Inc.,
7.00%, 03/01/2000 ........................ 300,000 303,306
----------
1,122,315
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
SCHEDULE OF INVESTMENTS (continued)
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
United States (continued)
Food & Beverages -- 1.07%
B & G Foods, Inc., 9.625%,
08/01/2007.................................... $ 125,000 $ 125,937
CFP Holdings, Inc.,
11.625%, 01/15/2004 .......................... 200,000 204,948
Dole Foods, Inc., 6.75%,
07/15/2000 ................................... 100,000 100,832
--------
431,717
Gaming -- 0.62%
Grand Casinos, Inc., 9.00%,
10/15/2004 ........................................ 250,000 251,250
Hotels & Restaurants -- 1.08%
Prime Hospitality Corp.,
9.75%, 04/01/2007 ............................ 250,000 267,500
Sun International Hotels, Ltd.
9.00%, 03/15/2007 ............................ 50,000 51,625
Wyndham Hotel Corp.,
10.50%, 05/15/2006 ........................... 100,000 116,000
--------
435,125
Household Appliances &
Furnishings -- 0.65%
Collins & Aikman Floorcovering
10.00%, 01/15/2007 ........................... 150,000 156,750
Rayovac Corp., 10.25%, 11/01/2006 ................. 98,000 106,820
--------
263,570
Industrial Machinery -- 0.52%
Harnischfeger Industries, Inc.,
6.875%, 02/15/2027 ........................... 200,000 208,142
Liquor -- 0.33%
Stroh Brewery Co., 11.10%,
07/01/2006 ........................................ 150,000 135,000
Metals & Mining -- 0.66%
Renco Metals, Inc., 11.50%,
07/01/2003 ........................................ 250,000 265,000
Packaging -- 0.28%
Tekni Plex, Inc., 11.25%,
04/01/2007 ........................................ 100,000 109,347
Paper -- 0.47%
Doman Industries Ltd.,
8.75%, 03/15/2004 ............................ 200,000 191,000
Petroleum Services -- 2.30%
Cliffs Drilling Co., 10.25%,
05/15/2003 ................................... 150,000 162,000
Cross Timbers Oil Co.,
9.25%, 04/01/2007 ............................ 150,000 156,000
Dailey Intl. Inc.,
9.75%, 08/15/2007 ............................ 100,000 104,250
National Energy Group, (144a),
10.75%, 11/01/2006 ........................... 150,000 155,625
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
United States (continued)
Petroleum Services (continued)
Occidental Petroleum Corp.,
9.25%, 08/01/2019........................... $ 150,000 $ 187,346
Parker Drilling Corp.,
9.75%, 11/15/2006 .......................... 150,000 160,875
---------
926,096
Pollution Control -- 1.28%
Allied Waste Industries, Inc. ...................
(step-up bond), 11.30%,
06/01/2007 (a) ............................. 200,000 140,500
Envirosource, Inc., 9.75%,
06/15/2003 ................................. 200,000 203,500
Norcal Waste System, (step-up
bond),Series B, 13.50%,
11/15/2005 ................................. 150,000 174,000
---------
518,000
Publishing -- 1.32%
American Media Operations Inc.,
11.625%, 11/15/2004 ........................ 250,000 271,250
Hollinger International
Publishing, Inc.
9.25%, 03/15/2007............................. 250,000 262,500
---------
533,750
Retail -- 3.50%
Cole National Group, Inc.,
8.625%, 08/15/2007 ......................... 250,000 250,000
Jitney Jungle Stores America,
Inc., 12.00%, 03/01/2006 (d) .................... 250,000 283,750
Pueblo Xtra International,
9.50%, 08/01/2003 .......................... 100,000 95,250
Riddell Sports, Inc., 10.50%,
07/15/2007 ................................ 250,000 256,875
Selmer Co. Inc. (144a),
11.00%, 05/15/2005 (d) ..................... 250,000 273,750
Staples, Inc., 7.125%, 08/15/2007 ............... 250,000 253,990
---------
1,413,615
Software -- 0.27%
Printpack, Inc. (144a),
10.625%, 08/15/2006 ........................ 100,000 107,000
Telecommunications -- 2.95%
Adelphia Communications,
10.50%, 07/15/2004 ......................... 100,000 107,125
9.875%, 03/01/2007 ......................... 100,000 105,250
Comcast Cellular Holdings, Inc.,
9.50%, 05/01/2007 (d) ...................... 250,000 260,000
Diamond Cable Communications, PLC,
11.75%, 12/15/2005 .......................... 225,000 174,937
Intermedia Communications,
(step-up bond), 12.50%,
05/15/2006 (a) .............................. 244,000 193,980
International CableTel, Inc.,
(step-up bond), 11.50%,
02/01/2006 (a) .............................. 225,000 176,625
Marcus Cable Co LP, (step-up
bond), 14.25%, 12/15/2005 (a) .................. 200,000 173,000
---------
1,190,917
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
SCHEDULE OF INVESTMENTS (continued)
Principal Market
Amount Value
------ -----
Corporate Bonds (continued)
United States (continued)
Transportation -- 0.95%
Coach USA, Inc., 9.375%,
07/01/2007..................................... $ 250,000 $ 255,625
TFM SA de CV, 1.00%, 06/15/2009 ............... 200,000 127,000
----------
382,625
----------
Total United States ...................... 14,072,833
----------
Total Corporate Bonds
(cost $14,414,677) .................. 14,823,114
----------
Government Bonds -- 48.90%
Argentina -- 2.13%
Argentina Floating Rate Bond,
6.688%, 03/31/2005 (b) ................... 960,000 858,384
Australia -- 0.04%
Australia Government Bond,
8.75%, 08/15/2008 ........................ 20,000 15,711
Brazil -- 3.55%
Brazil Government Bond,
10.125%, 05/15/2027 ...................... 1,525,000 1,433,500
Canada -- 1.35%
Canadian Government Bond
6.50%, 09/01/1998 ........................ 570,000 402,835
7.50%, 09/01/2000 ........................ 150,000 110,407
7.00%, 12/01/2006 ........................ 40,000 30,686
----------
543,928
Denmark -- 0.87%
Denmark Government Bond,
6.00%, 11/15/2002 ........................ 1,940,000 294,034
8.00%, 03/15/2006 ........................ 330,000 55,795
----------
349,829
Ecuador -- 0.34%
Ecuador Pars (step-up bond),
3.50%, 02/28/2025 (g) .................... 250,000 137,500
Germany -- 1.14%
Germany (Federal Republic)
5.25%, 10/20/1998 ........................ 820,000 460,835
Mexico -- 4.17%
Mexico Global Bond,
11.375%, 09/15/2016 ...................... 350,000 401,844
6.25%, 12/31/2019 ........................ 750,000 628,096
11.50%, 05/15/2026 ....................... 550,000 651,200
----------
1,681,140
Principal Market
Amount Value
------ -----
Government Bonds (continued)
Morocco -- 1.50%
Morocco Loan Participation,
6.812%, 01/01/2009 (b).................... $ 700,000 $ 603,750
New Zealand -- 0.83%
New Zealand Government Bond,
8.00%, 07/15/1998 ........................ 580,000 335,884
Panama -- 0.38%
Panama Government Bond,
3.75%, 07/17/2014 (b) .................... 200,000 153,000
Russia -- 0.70%
Russia Government Bond,
6.719%, 12/02/2015 ....................... 400,000 280,248
South Korea -- 0.44%
Korea Development Bank,
9.60%, 12/01/2000 ........................ 200,000 178,686
Sweden -- 0.99%
Sweden Government Bond
11.00%, 01/21/1999 ....................... 2,300,000 306,950
6.50%, 10/25/2006 ........................ 700,000 91,229
----------
398,179
United States -- 28.91%
U.S. Government Agencies -- 18.55%
Federal Home Loan Mortgage Corp.
10.00%, 05/15/2020 ...................... 50,000 41,977
6.50%, TBA (e) ......................... 300,000 300,468
Federal National Mortgage
Association
6.65%, 08/25/2007 ........................ 1,200,000 1,227,375
13.00%, 11/01/2015 ....................... 15,000 11,275
7.00%, 11/18/2015 ........................ 1,500,000 1,528,521
10.40%, 04/25/2019 ....................... 100,000 69,170
8.77%, 03/17/2020, interest
only (c) .............................. 841,140 25,470
6.50%, 02/01/2026 ........................ 300,675 265,968
9.02%, 10/17/2036, interest
only (c) .............................. 4,295,000 133,445
7.00%, TBA (e) ........................... 3,500,000 3,525,130
7.00%, TBA (e) ........................... 350,000 352,513
----------
7,481,312
U.S. Treasury Bond -- 1.31%
6.375%, 08/15/2027 (d) ................... 500,000 527,345
U.S. Treasury Notes -- 9.05%
6.625%, 03/31/2002 (d) ................... 1,000,000 1,032,340
6.25%, 08/31/2002 (d) .................... 1,500,000 1,530,705
5.875%, 09/30/2002 (d) ................... 800,000 804,376
3.375%, 01/15/2007 (f) ................... 70,000 68,163
6.125%, 08/15/2007 (d) ................... 210,000 215,808
----------
3,651,392
----------
Total United States ................. 11,660,049
----------
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL GLOBAL BOND SERIES
SCHEDULE OF INVESTMENTS (continued)
Principal Market
Amount Value
------ -----
Government Bonds (continued)
Venezuela -- 1.56%
Republic of Venezuela--Par,
6.812%, 03/31/2007 (b).................... $ 714,286 $ 628,607
-----------
Total Government Bonds
(cost $19,289,766) .................. 19,719,230
-----------
Asset Backed Securities -- 1.36%
Airplane Pass-through Trust,
10.875%, 03/15/2019 ...................... 125,000 144,515
Mid State Trust, Series VI,
7.34%, 07/01/2035 ........................ 400,000 402,974
-----------
Total Asset Backed Securities
(cost $511,602) .................... 547,489
-----------
Warrants -- 0.00%
United States -- 0.00%
Urohealth Systems, Inc.,
(cost $0) ..................................... 250 8
-----------
Principal Market
Amount Value
------ -----
Short Term Investments -- 12.99%
Government Bonds -- 0.82%
Republic of Italy,
5.97%, 07/31/1998......................... $ 600,000 $ 329,266
Money Market Fund -- 0.00%
State Street Global Advisor
Fund, 5.42%, (f) ........................... 873 873
Repurchase Agreements -- 12.17%
Repurchase Agreement with State
Street
Bank, 6.00%, (Collateralized by
$3,255,000 U.S. Treasury Note
10.625% due 08/15/2015,
market value - $4,911,637)
acquired on 12/31/97,
due 01/02/1998 .............................. 4,910,000 4,910,000
-----------
Total Short Term Investments
(cost $5,232,584) ....................... 5,240,139
-----------
Total Investments -- 100%
(cost $39,448,629) ............................ $40,329,980
===========
- --------------------------------------------------------------------------------
(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, 1997.
(c) The interest rates disclosed for interest only strips represent effective
yields at December 31, 1997 based upon estimated future cash flows.
(d) Security pledged as collateral for investments purchased on a when-issued
basis.
(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, 1997.
(g) Coupon payment periodically increases over the life of the security. Rate
stated is in effect as of December 31, 1997.
See notes to the financial statements.
<PAGE>
SALOMON BROTHERS/JNL
U.S. GOVERNMENT & QUALITY BOND SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Principal Market
Amount Value
------ -----
U.S. Government Securities -- 68.49%
U.S. Government Agency & Agency
Backed Issues -- 42.44%
Federal Home Loan Bank
5.94%, 06/13/2000 ........................... $ 300,000 $ 300,936
Federal Home Loan Mortgage Corp.
6.00%, 09/01/2010 ........................... 4,021 3,991
11.75%, 01/01/2011 .......................... 4,613 5,192
7.00%, 07/01/2011 ........................... 117,757 119,768
8.25%, 04/01/2017 (c) ....................... 420,409 441,421
8.00%, 07/01/2020 ........................... 1,299,841 1,361,583
5.00%, 05/15/2021 ........................... 1,200,000 1,117,116
6.50%, TBA (a) .............................. 500,000 500,547
Federal National Mortgage
Association
6.74%, 08/25/2007 ........................... 1,400,000 1,445,062
14.50%, 11/01/2014 (c) ...................... 7,675 9,447
12.50%, 08/01/2015 .......................... 6,316 7,439
12.50%, 09/01/2015 .......................... 23,777 28,317
13.00%, 11/01/2015 (c) ...................... 20,619 24,054
12.00%, 01/01/2016 (c) ...................... 653,015 767,905
12.00%, 01/01/2016 .......................... 22,020 25,632
12.50%, 01/15/2016 (c) ...................... 333,170 392,620
11.50%, 04/01/2019 .......................... 7,312 8,361
10.50%, 08/01/2020 .......................... 128,212 143,357
6.50%, 03/01/2026 (c) ....................... 417,382 412,946
7.00%, 05/01/2026 (c) ....................... 325,331 328,379
6.50%, TBA (a) .............................. 1,500,000 1,481,250
7.00%, TBA (a) .............................. 100,000 100,718
7.00%, TBA (a) .............................. 3,800,000 3,827,284
Government National Mortgage
Association
13.50%, 07/15/2010 (c) ...................... 190,655 228,851
8.50%, 01/15/2018 ........................... 253,430 271,127
Student Loan Marketing
Association
7.50%, 03/08/2000 (c) ....................... 400,000 413,624
-----------
13,766,927
U.S. Treasury Bond -- 7.86%
6.625%, 02/15/2027 (c) ...................... 2,350,000 2,551,207
U.S. Treasury Notes -- 18.19%
6.50%, 05/31/2001 (c) ....................... 100,000 102,375
6.25%, 08/31/2002 ........................... 100,000 102,047
5.875%, 09/30/2002........................... 1,000,000 1,005,470
6.625%, 05/15/2007 (c) ...................... 2,150,000 2,275,646
6.125%, 08/15/2007 .......................... 2,350,000 2,415,001
-----------
5,900,539
-----------
Total U.S. Government
Securities
(cost $21,579,527) ...................... 22,218,673
-----------
Principal Market
Amount Value
------ -----
Corporate Bonds -- 2.42%
Banks -- 0.50%
Banc One Corp. .................................
7.60%, 05/01/2007 (c) ........................ $ 150,000 $ 161,231
Petroleum Services -- 1.92%
Occidental Petroleum Corp.
9.25%, 08/01/2019 (c) ........................ 500,000 624,485
Total Corporate Bonds
(cost $735,978) .......................... 785,716
-----------
Short Term Investments -- 29.09%
Commercial Paper --3.08%
UBS Finance Delaware, Inc.,
6.50%, 01/02/1998 ......................... 1,000,000 999,819
Money Market Fund -- 0.00%
State Street Global Advisor
Fund, 5.42% (b)................................. 299 299
Repurchase Agreements -- 23.70% Repurchase
agreement with J.P. Morgan,
6.25% (Collateralized by
U.S. Treasury Note, 8.75% due
05/15/2020, market value -
$3,920,895), acquired on
12/31/1997,
due 01/02/1998 ............................... 3,844,000 3,844,000
Repurchase agreement with State
Street
Bank, 6.00% (Collateralized by
$2,550,000 U.S. Treasury Note,
10.625% due 08/15/2020,
market value - $3,926,210),
acquired on 12/31/1997,
due 01/02/1998 ............................... 3,844,000 3,844,000
-----------
7,688,000
U.S. Government Agencies -- 2.31%
Federal Home Loan Bank Discount
Note
5.75%, 01/07/1998 ............................ 750,000 749,281
-----------
Total Short Term Investments
(cost $9,437,399) ........................ 9,437,399
-----------
Total Investments -- 100%
(cost $31,752,904) ............................. $32,441,788
===========
- --------------------------------------------------------------------------------
(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, 1997.
(c) Security pledged as collateral for investments purchased on a when-issued
basis.
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ -----
Common Stocks -- 94.26%
France -- 0.13%
Liquor -- 0.13%
LVMH, Louis Vuitton Moet
Hennessy ............................... 990 $ 164,328
Hong Kong -- 0.56%
Conglomerates -- 0.56%
Hutchinson Whampoa Ltd. ................... 75,000 470,383
Swire Pacific Ltd. ........................ 40,000 219,383
----------
Total Hong Kong .................... 689,766
Italy -- 0.75%
Banks -- 0.44%
Banca Fideuram ............................ 125,700 550,337
SPA
Telecommunications -- 0.31%
Telecom Italia SPA ........................ 22,900 105,697
Telecom Italia Mobile (a) ................. 62,090 273,772
----------
379,469
----------
Total Italy ............................. 929,806
Malaysia -- 0.03%
Industrial Machinery -- 0.03%
United Engineers Ltd. ..................... 47,900 39,901
Mexico -- 0.32%
Household Products -- 0.32%
Kimberly Clark de Mexico,
SA de CV ............................ 80,500 393,997
Netherlands -- 2.05%
Household Products -- 0.17%
Hagemeyer NV .............................. 4,900 204,685
Newspapers -- 1.23%
Ver Ned Uitgevers N.V ..................... 54,300 1,531,803
Publishing -- 0.26%
Elsevier NV ............................... 20,300 328,380
Software -- 0.39%
Getronics NV .............................. 15,400 490,637
----------
Total Netherlands ....................... 2,555,505
Portugal -- 0.96%
Telecommunications -- 0.96%
Telecel - Communicacoes
Pessoais
SA, (a) ................................ 11,200 1,193,328
South Africa -- 0.16%
Mining -- 0.16%
Anglo American Platinum Corp. ........... 15,300 204,356
Market
Shares Value
------ -----
Common Stocks (continued)
Sweden -- 0.82%
Drugs & Health Care -- 0.43%
Astra AB Class B .......................... 31,400 $ 527,954
Retail -- 0.39%
Hennes & Mauritz AB Class B (a) ........... 10,000 440,811
Modern Times Group MTG
Class B (a) ........................... 7,800 46,663
----------
487,474
----------
Total Sweden ............................ 1,015,428
Switzerland -- 1.03%
Conglomerates -- 0.10%
Sig Schweizerische Industries AG .......... 45 123,186
Drugs & Health Care -- 0.93%
Novartis AG ............................... 713 1,156,454
----------
Total Switzerland ....................... 1,279,640
United Kingdom -- 2.67%
Conglomerates -- 2.28%
Granada Group PLC (a) ..................... 50,200 766,818
Rentokil Initial PLC ...................... 201,500 891,715
Tomkins PLC ............................... 249,000 1,177,870
----------
2,836,403
Telecommunications -- 0.39%
Vodafone Group PLC ........................ 67,300 486,377
----------
Total United Kingdom .................... 3,322,780
United States -- 84.78%
Aerospace -- 1.46%
AlliedSignal, Inc. ........................ 45,600 1,775,550
United Technologies Corp. ................. 500 36,406
----------
1,811,956
Apparel & Textiles -- 0.16%
Nike, Inc. Class B ........................ 5,000 196,250
Automobile & Parts -- 2.04%
Danaher Corp. ............................. 40,100 2,531,313
Banks -- 6.18%
Barnett Banks, Inc. ....................... 9,100 654,063
Citicorp .................................. 7,800 986,213
First Union Corp. ......................... 15,600 799,500
Mellon Bank Corp. ......................... 10,200 618,375
Northern Trust Corp. ...................... 8,400 585,900
<PAGE>
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Banks (continued)
Norwest Corp. ............................. 47,500 $1,834,688
Toronto Dominion Bank ..................... 25,100 945,956
Wells Fargo & Co. ......................... 3,700 1,255,919
----------
7,680,614
Broadcasting -- 0.60%
Cox Communications, Inc. (a) .............. 18,500 741,156
Building & Construction -- 0.84%
Masco Corp. ............................... 20,600 1,048,025
Business Services -- 4.50%
Automatic Data Processing, Inc. ........... 16,100 988,138
Cendant Corp. (a) ......................... 46,200 1,588,125
First Data Corp. .......................... 47,002 1,374,809
Interpublic Group Companies, .............. 19,250 958,891
Inc .......................................
Service Corp. International, .............. 18,600 687,038
Inc .......................................
----------
5,597,001
Chemicals -- 0.15%
Great Lakes Chemical Corp. ................ 4,200 188,475
Computers & Business Equipment--2.25%
Cisco Systems, Inc. (a) ................... 13,500 752,625
Compaq Computer Corp. ..................... 16,100 908,644
Dell Computer Corp. (a) ................... 4,600 386,400
Hewlett Packard Co. ....................... 12,000 750,000
----------
2,797,669
Drugs & Health Care -- 9.49%
American Home Products Corp. .............. 10,400 795,600
Amgen, Inc. (a) ........................... 6,100 330,163
Baxter International, Inc. ................ 6,700 337,931
Biogen, Inc. (a) .......................... 14,300 520,163
Bristol Myers Squibb Co. .................. 12,400 1,173,350
Genentech, Inc. (a) ....................... 15,500 939,688
Healthsouth Corp. (a) ..................... 38,900 1,079,475
Johnson & Johnson Co. ..................... 8,300 546,763
Medtronic, Inc. ........................... 7,600 397,575
Merck & Co., Inc. ......................... 15,300 1,625,625
Pacificare Health Systems ................. 3,900 204,263
Class B (a)
Pfizer, Inc. .............................. 20,600 1,535,988
Tenet Healthcare Corp. (a) ................ 22,400 742,000
United Healthcare Corp. ................... 15,600 775,125
Warner Lambert Co. ........................ 6,400 793,600
----------
11,797,309
Electrical Equipment -- 2.90%
Boston Scientific Corp. (a) ............... 5,900 270,663
General Electric Co. ...................... 45,500 3,338,563
----------
3,609,226
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Electronics -- 4.28%
Analog Devices, Inc. (a) .................. 24,100 $ 667,269
EMC Corp. (a) ............................. 16,000 439,000
Ericcson LM Tel Co. Class B ADR ........... 3,500 130,594
Intel Corp. ............................... 6,700 470,675
Linear Technology Corp. ................... 13,000 749,125
Maxim Integrated Products, Inc. ........... 30,200 1,041,900
(a)
Molex, Inc. Class A ....................... 9,468 272,205
National Semiconductor Corp. (a) ......... 17,100 443,531
Teleflex, Inc. ............................ 26,300 992,825
Xilinx, Inc. (a) .......................... 3,100 108,694
----------
5,315,818
Financial Services -- 5.71%
Corporate Express, Inc. (a) ............... 21,000 270,375
Federal Home Loan Mortgage Corp. ......... 82,800 3,472,425
Federal National Mortgage
Association .......................... 33,500 1,911,594
Green Tree Financial Corp. ............... 9,700 254,019
H & R Block, Inc. ........................ 22,300 999,319
SLM Holding Corp. ........................ 1,300 180,863
----------
7,088,595
Food & Beverages -- 3.51%
CPC International, Inc. ................... 5,200 560,300
Coca-Cola Co. ............................. 9,100 606,288
PepsiCo, Inc. ............................. 30,000 1,093,125
Pioneer Hi-Bred International, Inc. ....... 6,900 740,025
Sara Lee Corp. ............................ 16,200 912,263
Unilever NV ............................... 7,200 449,550
----------
4,361,551
Household Products -- 0.54%
Procter & Gamble Co. ...................... 8,400 670,410
Industrial Machinery -- 2.43%
Honeywell, Inc. ........................... 6,200 424,700
TriMas Corp. .............................. 23,600 811,250
Tyco International, Ltd. .................. 39,462 1,778,256
----------
3,014,206
Insurance -- 9.22%
Ace Ltd. .................................. 24,200 2,335,300
Aetna, Inc. ............................... 6,900 486,881
Berkshire Hathaway, Inc. Class ............ 34 1,564,000
A (a)
Exel Ltd. ................................. 9,900 627,413
Fairfax Financial Holdings, ............... 2,400 534,061
Ltd. (a)
Mutual Risk Management, Ltd. .............. 32,400 969,975
PartnerRe, Ltd. ........................... 14,100 653,888
St. Paul Cos., Inc. ....................... 5,400 443,138
Travelers Group, Inc., .................... 30,450 1,640,494
Travelers Property Casualty Corp. ......... 13,400 589,600
UNUM Corp. ................................ 29,700 1,614,938
----------
11,459,688
<PAGE>
T. ROWE PRICE/JNL ESTABLISHED GROWTH SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Leisure Time -- 1.97%
Carnival Corp. ............................ 15,500 $ 858,313
Walt Disney Co. ........................... 16,100 1,594,906
----------
2,453,219
Mining -- 0.99%
Anglo American Platinum Corp. Ltd. ........ 21,218 283,409
Barrick Gold Corp. ........................ 13,400 249,575
Newmont Mining Corp. ...................... 23,900 702,063
----------
1,235,047
Newspapers -- 1.36%
Reuters Holdings ADR ...................... 4,800 318,000
Tribune Co. ............................... 22,100 1,375,725
----------
1,693,725
Office Furnishings & Supplies -- 0.48%
Ikon Office Solutions, Inc. ............... 21,000 590,625
Oil -- 2.23%
Mobil Corp. ............................... 14,300 1,032,281
Royal Dutch Petroleum Co. ................. 32,100 1,739,419
----------
2,771,700
Paper -- 0.74%
Kimberly Clark Corp. ...................... 18,700 922,145
Petroleum Services -- 1.26%
Halliburton Co. ........................... 11,200 581,700
Schlumberger Ltd. ......................... 5,900 474,950
Western Atlas, Inc. (a) ................... 6,900 510,600
----------
1,567,250
Pollution Control -- 0.71%
USA Waste Services, Inc. (a) .............. 22,500 883,125
Real Estate -- 1.85%
Security Capital U.S. Realty (a) ......... 72,500 1,029,500
Starwood Lodging Trust Co. ................ 22,000 1,273,250
----------
2,302,750
Restaurants -- 0.33%
McDonald's Corp. ......................... 8,500 405,875
Retail -- 4.13%
Circuit City Stores, Inc. ................. 3,700 131,581
CVS Corp. ................................. 9536 610,900
Dillards Inc. ............................. 17,800 627,450
Home Depot, Inc. .......................... 14,450 850,744
Kohl's Corp. (a) .......................... 5,200 354,250
Safeway, Inc. (a) ......................... 19,300 1,220,725
Tag Heuer International ADR (a) ........... 61,900 510,675
Wal-Mart Stores, Inc. ..................... 20,900 824,244
----------
5,130,569
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Software -- 5.02%
BMC Software, Inc. (a) .................... 23,100 $1,515,938
Microsoft Corp. (a) ....................... 12,900 1,667,325
Network Associates, Inc. (a) .............. 22,600 1,194,975
Oracle Corp. (a) .......................... 27,725 618,614
Parametric Technology Corp. (a) ........... 26,100 1,236,488
----------
6,233,340
Steel -- 0.03%
Pohang Iron & Steel Co. ADR ............... 1,700 29,644
Telecommunications -- 5.03%
AT&T Corp. ................................ 14,900 912,625
Grupo Iusacell Series D ADR (a) ........... 60,200 918,050
MCI Communications Corp. .................. 23,200 993,250
Nokia Corp. ADR ........................... 14,100 985,238
Telecomunicacoes Brasileiras ADR .......... 5,400 628,763
Vodafone Group PLC ADR .................... 17,300 1,254,250
Worldcom, Inc. (a) ........................ 18,500 559,625
----------
6,251,801
Tobacco -- 1.58%
Philip Morris Cos., Inc. .................. 43,400 1,966,563
Toys -- 0.58%
Mattel, Inc. .............................. 19,400 722,650
Transportation -- 0.23%
Tranz Rail Holdings Ltd. ADR (a) ......... 25,200 289,800
----------
Total United States ..................... 105,359,090
----------
Total Common Stocks
(cost $99,548,528) .................. 117,147,925
----------
Principal
Amount
------
Short Term Investments -- 5.74%
Commercial Paper -- 3.40%
Ciesco LP
6.40%, 01/02/1998....................... $1,264,000 1,263,775
5.87%, 01/20/1998....................... 2,971,000 2,961,796
----------
4,225,571
Money Market Fund -- 0.00%
State Street Global Advisor Fund
5.42%, (b) ............................. 1,108 1,108
Market
Shares Value
------ -----
Short Term Investments (continued)
U.S. Government Agencies -- 2.34%
Federal National Mortgage
Association,
Discount Note, 5.70%, ................... $2,913,000 $2,903,776
01/21/1998
----------
Total Short Term Investments
(cost $7,130,455) ..................... 7,130,455
----------
Total Investments -- 100%
(cost $106,678,983) ....................... $124,278,380
==========
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1997.
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ -----
Common Stocks -- 95.40%
Argentina -- 0.21%
Oil -- 0.21%
Perez Companc Class B ....................... 22,563 $ 161,130
Australia -- 2.01%
Banks -- 0.52%
Australia & New Zealand Bank
Group Ltd. ............................... 7,000 46,261
Commonwealth Bank of Australia .............. 13,821 158,538
National Australia Bank ..................... 7,242 101,149
Westpac Banking Corp. ....................... 16,000 102,361
---------
408,309
Broadcasting -- 0.30%
Publishing & Broadcasting Ltd. .............. 18,000 81,112
News Corp. .................................. 27,383 151,163
---------
232,275
Conglomerates -- 0.05%
Brambles Industries, Ltd. ................... 2,000 39,692
Electric Utilities -- 0.18%
Australia Gas & Light Co., Ltd. ............. 20,237 141,127
Financial Services -- 0.29%
Lend Lease Corp. ............................ 7,403 144,747
Tab Corp. Holdings Ltd. ..................... 18,000 84,467
---------
229,214
Liquor -- 0.08%
Fosters Brewing Group, Ltd. ................. 34,000 64,706
Metals & Mining -- 0.04%
WMC, Ltd. ................................... 10,000 34,868
Oil -- 0.32%
Broken Hill Proprietary Co. ................. 16,156 150,048
Woodside Petroleum, Ltd. .................... 14,000 98,727
---------
248,775
Publishing -- 0.09%
John Fairfax FXF Unit Trust ................. 18,000 3,050
John Fairfax Holdings, Ltd. ................. 32,000 66,739
---------
69,789
Telecommunications -- 0.14%
Telstra Corporation Ltd. .................... 51,000 107,695
---------
Total Australia ........................... 1,576,450
Belgium -- 1.39%
Banks -- 1.25%
Credit Communal ............................. 545 73,180
Dexia Generale de Banque .................... 566 246,329
Kredietbank ................................. 1,580 663,113
---------
982,622
Market
Shares Value
------ -----
Common Stocks (continued)
Belgium (continued)
Basic Industry -- 0.14%
UCB SA ...................................... 33 $ 108,928
---------
Total Belgium ............................. 1,091,550
Brazil -- 0.08%
Basic Industry -- 0.01%
White Martins SA ............................ 5,897 8,613
Energy -- 0.07%
Centrais Electricas Brasileiras SA (a)....... 1,093,300 54,369
---------
Total Brazil .............................. 62,982
Canada -- 0.30%
Basic Industry -- 0.17%
Alcan Aluminum Ltd. ......................... 4,960 137,098
Financial Companies -- 0.13%
Royal Bank of Canada ........................ 1,850 98,063
---------
Total Canada .............................. 235,161
Czechoslovakia -- 0.02%
Telecommunication Services -- 0.02%
SPT Telecommunications AS ................... 130 13,607
Denmark -- 0.31%
Banks -- 0.30%
Den Danske Bank AB .......................... 1,130 150,570
Unidanmark Series A, A/S .................... 1,130 82,954
---------
233,524
Telecommunications -- 0.01%
Teledanmark Class B ......................... 200 12,405
---------
Total Denmark ............................. 245,929
France -- 8.70%
Banks -- 0.51%
Credit Commercial de France ................. 1,564 107,194
Dexia France ................................ 838 97,049
Societe Generale ............................ 1,420 193,470
---------
397,713
Broadcasting -- 0.39%
Canal Plus .................................. 750 139,445
Societe Television Francaise ................ 1,660 169,627
---------
309,072
Building & Construction -- 0.13%
Groupe GTM (a) .............................. 410 27,590
Lapeyre ..................................... 1,290 71,053
---------
98,643
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
France (continued)
Business Services -- 1.60%
Eaux (Cie Generale) ......................... 8,800 $1,228,213
Havas ....................................... 400 28,778
---------
1,256,991
Containers & Glass -- 0.30%
Compagnie de Saint Gobain ................... 1,650 234,402
Drugs & Health Care -- 0.68%
L'Oreal ..................................... 262 102,519
Sanofi ...................................... 3,879 431,824
---------
534,343
Electrical Equipment -- 0.51%
Alcatel Alsthom ............................. 2,240 284,722
Legrand ..................................... 599 119,332
---------
404,054
Electronics -- 0.40%
Schneider ................................... 5,736 311,460
Food & Beverages -- 0.33%
Danone ...................................... 1,430 255,421
Gas Exploration -- 0.36%
Elf Aquitaine ............................... 2,450 284,955
Insurance -- 0.45%
AXA ......................................... 3,151 243,818
Assurances Generales de France .............. 1,996 105,761
---------
349,579
Leisure & Recreation -- 0.55%
Accor ....................................... 405 75,300
Pathe (a) ................................... 370 71,805
Sodexho Alliance ............................ 45 23,515
Sodexho Alliance ............................ 480 257,047
---------
427,667
Liquor -- 0.07%
LVMH, Luis Vuitton Moet Hennessy ............ 326 54,112
Oil -- 1.09%
Primagaz (Cie Des Gaz Petrole) .............. 755 63,100
Total Class B ............................... 7,237 787,611
---------
850,711
Paper --0.16%
Gilbert SA .................................. 898 128,019
Retail -- 1.17%
Carrefour Super Marche ...................... 393 205,038
Pinault Printemps Redoute ................... 1,340 714,919
---------
919,957
---------
Total France .............................. 6,817,099
Market
Shares Value
------ -----
Common Stocks (continued)
Germany -- 5.50%
Automobiles -- 0.14%
Buderus AG .................................. 78 $ 34,947
Volkswagen AG ............................... 140 78,757
---------
113,704
Banks -- 1.70%
Bayerische Hypotheken - und
Wechsel Bank AG .......................... 6,268 305,918
Bayerische Verinsbank AG .................... 4,308 281,860
Commerzbank AG .............................. 2,210 86,977
Deutsche Bank AG ............................ 6,710 473,704
Dresdner Bank AG ............................ 2,140 98,735
Dresdner Bank AG ............................ 4,783 85,081
---------
1,332,275
Basic Industry ................................. -- 0.46
Bayer AG .................................... 7,437 277,810
Hoechst AG .................................. 2,440 85,450
---------
363,260
Building & Construction -- 0.09%
Bilfinger & Berger Bau AG ................... 2,000 62,036
Hornback Baumarkt AG ........................ 200 5,670
---------
67,706
Drugs & Health Care -- 0.67%
Gehe AG ..................................... 8,074 403,936
Rhon Klinikum AG ............................ 1,230 120,337
---------
524,273
Electric Utilities -- 0.85%
Veba AG ..................................... 9,735 662,908
Industrial Machinery -- 0.37%
Mannesmann AG ............................... 258 130,366
Siemens AG .................................. 2,664 157,712
---------
288,078
Insurance -- 0.60%
Allianz AG (a) .............................. 1,810 468,862
Software -- 0.47%
SAP AG ...................................... 1,210 367,584
Telecommunications -- 0.15%
Deutsche Telekom ............................ 6,320 118,920
---------
Total Germany ............................. 4,307,570
Hong Kong -- 2.13%
Banks -- 0.10%
HSBC Holdings PLC ........................... 3,200 78,875
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Hong Kong (continued)
Conglomerates -- 0.90%
First Pacific Co. Ltd. ...................... 29,315 $ 14,186
Hutchinson Whampoa Ltd. ..................... 77,000 482,927
Swire Pacific Ltd. .......................... 38,000 208,414
---------
705,527
Electric Utilities -- 0.09%
China Light & Power ......................... 13,000 72,138
Financial Services -- 0.13%
Dao Heng Bank Group, Ltd. ................... 41,000 102,381
Real Estate -- 0.91%
Cheung Kong (Holdings) Ltd. ................. 11,000 72,042
New World Development Co., Ltd. ............. 100,034 345,969
Sun Hung Kai Properties, Ltd. ............... 11,000 76,655
Wharf Holdings .............................. 98,000 214,995
---------
709,661
---------
Total Hong Kong ........................... 1,668,582
Italy -- 3.99%
Banks -- 0.81%
Banca Commerciale Italiana .................. 14,000 48,672
Banca di Roma ............................... 186,000 187,682
Credito Italiano ............................ 128,833 397,278
---------
633,632
Financial Companies -- 0.54%
IMI Spa ..................................... 18,040 214,155
Mediolanum .................................. 11,108 209,099
---------
423,254
Food & Beverages -- 0.03%
La Rinascente SPA ........................... 3,000 22,386
Gas Exploration -- 0.60%
Ente Nazionale Idrocarburi Spa .............. 83,263 472,090
(ENI)
Gas & Pipeline Utilities -- 0.05%
Ital Gas (Societa Italiana II ............... 10,000 41,266
Gas) Spa
Insurance -- 0.32%
Assicurazioni Generali ...................... 10,000 245,619
Telecommunications -- 1.64%
Telecom Italia Mobile ....................... 10,797 30,700
Telecom Italia Mobile ....................... 140,601 648,958
Telecom Italia SPA .......................... 94,877 606,054
---------
1,285,712
---------
Total Italy ............................... 3,123,959
Market
Shares Value
------ -----
Common Stocks (continued)
Japan -- 18.49%
Automobiles -- 0.09%
Honda Motor Co. ............................. 2,000 $ 73,371
Automobile Parts -- 0.78%
Denso Corp. ................................. 34,000 611,932
Building & Construction -- 0.44%
Daiwa House Industry Co. .................... 24,000 126,829
Inax Corp. .................................. 5,000 14,513
Kumagai Gumi ................................ 10,000 5,438
National House Industrial ................... 3,000 20,563
Nippon Hodo ................................. 3,000 9,650
Sekisui House ............................... 18,000 115,662
Sumitomo Forestry Co., Ltd. ................. 11,000 53,833
---------
346,488
Business Services -- 0.51%
Kokuyo Co. .................................. 9,000 155,089
Toppan Printing Co. ......................... 19,000 247,377
---------
402,466
Chemicals -- 1.04%
Kuraray Co. ................................. 21,000 173,700
Mitsui Petrochemical Industries ............. 5,000 9,190
Sekisui Chemical Co., Ltd. .................. 30,000 152,332
Shin-Etsu Chemical Co. ...................... 20,000 381,405
Teijin ...................................... 45,000 94,087
---------
810,714
Consumer Products -- 0.28%
Kao Corp. ................................... 15,000 215,976
Drugs & Health Care -- 1.17%
Daiichi Pharmecutical Co. ................... 22,000 247,683
Sankyo Co. .................................. 24,000 542,238
Shiseido Co. ................................ 9,000 122,693
---------
912,614
Electrical Equipment -- 2.39%
Hitachi, Ltd. ............................... 36,000 256,414
Makita Corp. ................................ 16,000 153,175
NEC Corp. ................................... 67,000 713,257
Sumitomo Electric Industires, Ltd ........... 54,000 736,157
Yurtec Corp. ................................ 2,100 12,883
---------
1,871,886
Electronics -- 2.69%
Advantest Corp. ............................. 1,210 68,576
Alps Electric Co. Ltd. ...................... 11,000 103,623
Dai Nippon Screen Manufacturing
Co Ltd. (a) ................................ 18,000 82,714
Fanuc Co., Ltd. ............................. 4,900 185,387
Kyocera Corp. ............................... 12,000 544,076
Murata Manufacturing Co., Ltd. .............. 11,000 276,327
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Japan (continued)
Electronics (continued)
TDK Corp. ................................... 9,000 $ 678,257
Tokyo Electron, Ltd. ........................ 5,300 169,671
----------
2,108,631
Financial Companies -- 0.63%
Nomura Securities Co., Ltd. ................. 37,000 493,069
Household Appliances -- 2.23%
Matsushita Electric Industrial Co ........... 39,000 570,499
Pioneer Electronic Corp. .................... 11,000 169,334
Sangetsu Co. Ltd. ........................... 1,000 10,263
Sharp Corp. ................................. 33,000 226,959
Sony Corp. .................................. 8,700 772,919
----------
1,749,974
Industrial Machinery -- 1.06%
Amada Co., Ltd. ............................. 16,000 59,432
Daifuku Co. Ltd. ............................ 2,000 9,727
Hitachi Zosen Corp. ......................... 24,000 38,416
Ishihara Sangyo Kaisha (a) .................. 6,000 6,663
Komatsu, Ltd. ............................... 24,000 120,395
Komori Corp. ................................ 8,000 118,863
Mitsubishi Heavy Industries,
Ltd ......................................... 115,000 479,130
----------
832,626
Insurance -- 0.14%
Tokio Marine & Fire Insurance Co ............ 10,000 113,349
Leisure & Recreation -- 0.05%
Sega Enterprises Ltd. ....................... 2,000 36,149
Paper -- 0.01%
Mitsubishi Paper Mills, Ltd. ................ 8,000 11,212
Photography -- 1.19%
Canon, Inc. ................................. 40,000 931,301
Real Estate -- 0.70%
Mitsui Fudosan Co. Ltd. ..................... 57,000 550,050
Retail -- 2.06%
Citizen Watch Co. (a) ....................... 13,000 87,118
Ito-Yokado Co. Ltd. ......................... 9,000 458,375
Marui Co., Ltd. ............................. 22,000 342,039
Mitsubishi Corp. ............................ 21,000 165,658
Seven Eleven Japan Co., Ltd. ................ 3,000 212,300
Sumitomo Corp. .............................. 42,000 234,817
UNY Co. Ltd. ................................ 8,000 109,673
----------
1,609,980
Steel -- 0.28%
Nippon Steel Corp. .......................... 133,000 196,592
Tokyo Steel Manufacturing Ltd. .............. 6,000 20,265
----------
216,857
Market
Shares Value
------ -----
Common Stocks (continued)
Japan (continued)
Telecommunications -- 0.40%
DDI Corp. ................................... 36 $ 95,121
Nippon Telephone & Telegraph ................ 25 214,444
Corp ........................................
---------
309,565
Transportation -- 0.35%
East Japan Railway .......................... 60 270,659
---------
Total Japan ............................... 14,478,869
Malaysia -- 0.24%
Industrial Machinery -- 0.01%
Time Engineering Berhad ..................... 23,000 5,913
Leisure & Recreation -- 0.12%
Berjaya Sports Toto Berhad .................. 37,000 94,652
Mining -- 0.11%
Tanjong ..................................... 51,000 84,574
---------
Total Malaysia ............................ 185,139
Mexico -- 0.79%
Banks -- 0.11%
Grupo Financiero Banamex Series B (a)....... 27,288 81,656
Grupo Financiero Banamex Series L (a)........ 465 1,198
---------
82,854
Basic Industry -- 0.09%
Cemex SA de CV .............................. 12,950 69,159
Food & Beverages -- 0.25%
Fomento Economico Mexicano
SA de CV, Class A ........................ 15,629 124,908
Gruma S.A. Series B (a) ..................... 17,762 70,427
---------
195,335
Household Products -- 0.18%
Kimberly Clark de Mexico, SA de
CV Class A .................................. 28,211 138,075
Industrial Machinery -- 0.07%
Grupo Industrial Maseca SA de CV
Class B .................................. 54,800 56,630
Liquor -- 0.09%
Grupo Modelo SA de CV Class C ............... 8,844 74,298
---------
Total Mexico .............................. 616,351
Netherlands -- 10.31%
Banks -- 0.52%
ABN Amro Holdings NV ........................ 21,000 409,094
Chemicals -- 0.10%
Akzo Nobel NV ............................... 458 78,967
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Netherlands (continued)
Conglomerates -- 0.07%
Koninklijke PTT Nederland NV (a) ........... 1,407 $ 58,705
Electrical Equipment -- 0.01%
Otra NV ..................................... 670 9,583
Financial Companies -- 1.72%
Fortis AMEV NV .............................. 8,235 359,023
ING Groep N.V ............................... 23,500 989,766
---------
1,348,789
Food & Beverages -- 0.61%
CSM NV ...................................... 7,206 319,848
Nutricia Verenigde Bedruven NV .............. 5,150 156,203
---------
476,051
Household Products -- 0.97%
Unilever NV ................................. 12,350 761,349
Leisure & Recreation -- 0.44%
Polygram NV ................................. 7,127 340,946
Oil -- 2.44%
Royal Dutch Petroleum Co. ................... 34,770 1,908,565
Publishing -- 3.07%
Elsevier NV ................................. 53,329 862,669
Wolters Kluwer NV (a) ....................... 11,924 1,540,155
---------
2,402,824
Retail -- 0.15%
Koninklijke Ahold NV ........................ 4,392 114,584
Software -- 0.21%
Baan Co. NV (a) ............................. 4,950 162,099
---------
Total Netherlands ......................... 8,071,556
New Zealand -- 0.33%
Building Construction -- 0.06%
Fletcher Challange Building (a) ............. 22,396 45,775
Energy -- 0.08%
Fletcher Challange Energy ................... 16,915 59,225
Telecommunications -- 0.14%
Telecom Corp. of New Zealand, Ltd ........... 23,000 111,514
Transportation -- 0.05%
Air New Zealand Ltd. ........................ 20,909 41,886
---------
Total New Zealand ......................... 258,400
Market
Shares Value
------ -----
Common Stocks (continued)
Norway -- 1.88%
Conglomerates -- 0.99%
Orkla ASA ................................... 8,980 $ 772,063
Energy -- 0.87%
Norsk Hydro ASA ............................. 13,700 666,840
Saga Petroleum ASA Class B .................. 1,190 18,045
---------
684,885
Transportation -- 0.02%
Bergesen D-Y ASA ............................ 650 15,313
---------
Total Norway .............................. 1,472,261
Portugal -- 0.40%
Retail -- 0.40%
Jeronimo Martins (a) ........................ 5,998 190,320
Jeronimo Martins SGPS ....................... 3,999 126,890
---------
Total Portugal ......................... 317,210
Singapore -- 0.61%
Banks -- 0.24%
Overseas Chinese Banking Corp.Ltd ........... 4,800 27,909
Overseas Union Bank, Ltd. ................... 17,600 67,351
United Overseas Bank, Ltd. .................. 16,000 88,757
---------
184,017
Publishing -- 0.23%
Singapore Press Holdings, Ltd. .............. 14,400 180,267
Real Estate -- 0.14%
City Developments, Ltd. ..................... 9,000 41,649
Singapore Land, Ltd. ........................ 31,000 68,051
---------
109,700
---------
Total Singapore ........................... 473,984
South Korea -- 0.07%
Electrical Equipment -- 0.05%
Samsung Electronics ......................... 1,626 36,837
Steel -- 0.02%
Pohang Iron & Steel Co. Ltd. ................ 700 18,956
---------
Total South Korea ......................... 55,793
Spain -- 2.27%
Banks -- 1.02%
Argentaria Corp. SA (a) ..................... 2,015 122,606
Banco Bilbao Vizcaya SA ..................... 4,090 132,351
Banco Popular Espanol SA .................... 3,256 227,610
Banco Santander SA .......................... 9,421 314,755
---------
797,322
Electronics -- 0.25%
Empresa Nacional de Electricidad ............ 11,098 197,047
SA
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Spain (continued)
Oil -- 0.21%
Respol SA ................................... 3,792 $ 161,785
Telecommunications -- 0.42%
Telefonica de Espana SA ..................... 11,651 332,667
Utilities -- 0.37%
Gas Natural SDG SA .......................... 2,082 107,961
Iberdrola SA (a) ............................ 13,608 179,088
---------
287,049
---------
Total Spain ............................... 1,775,870
Sweden -- 3.42%
Banks -- 0.43%
Nordbanken Holding AB (a) ................... 60,151 340,153
Business Services -- 0.06%
Esselte AB Class B .......................... 2,310 46,841
Construction & Mining
Equipment -- 0.55%
ABB AB ...................................... 13,880 164,324
Atlas Copco AB .............................. 8,820 262,715
---------
427,039
Drugs & Health Care -- 0.94%
Astra AB Class B ............................ 44,003 739,858
Household Appliances -- 0.46%
Electrolux AB Series B ...................... 5,160 358,085
Metals & Mining -- 0.37%
Granges AB (a) .............................. 1,990 31,204
Sandvik AB Class A .......................... 2,090 59,489
Sandvik AB Class B .......................... 6,830 195,268
---------
285,961
Office Furniture & Supplies -- 0.01%
Scribona AB ................................. 750 8,360
Retail -- 0.60%
Hennes & Mauritz AB Class B (a) ............. 10,660 469,905
---------
Total Sweden .............................. 2,676,202
Switzerland -- 6.84%
Banks -- 0.97%
Credit Suisse Group AG ...................... 1,200 185,601
Schweizerischer Bankverein AG ............... 1,060 329,346
Union Bank of Switzerland AG (a) ........... 170 245,716
---------
760,663
Business Services -- 0.40%
Adecco SA (a) ............................... 1,073 310,988
Market
Shares Value
------ -----
Common Stocks (continued)
Switzerland (continued)
Drugs & Health Care -- 3.72%
Novartis AG ................................. 1,063 $1,724,138
Roche Holding AG ............................ 120 1,191,213
---------
2,915,351
Electrical Equipment -- 0.43%
ABB AG (a) .................................. 267 335,303
Food & Beverages -- 1.32%
Nestle SA ................................... 690 1,033,678
---------
Total Switzerland ......................... 5,355,983
United Kingdom -- 19.19%
Automobiles -- 0.10%
Rolls-Royce PLC ............................. 21,000 81,057
Banks -- 3.20%
Abbey National PLC .......................... 32,000 576,058
National Westminster Bank PLC ............... 116,000 1,928,164
---------
2,504,222
Building & Construction -- 0.06%
Heywood Williams Group PLC .................. 3,000 10,298
Laing (John) PLC ............................ 7,000 36,907
---------
47,205
Conglomerates -- 0.77%
Tomkins PLC ................................. 128,000 605,491
Containers & Glass -- 0.26%
Caradon PLC ................................. 69,800 202,924
Drugs & Health Care -- 3.34%
Glaxo Wellcome PLC .......................... 45,000 1,072,825
SmithKline Beecham PLC ...................... 149,400 1,539,819
---------
2,612,644
Electronics -- 0.20%
Electrocomponents PLC ....................... 21,000 156,251
Food & Beverages -- 2.14%
Cadbury Schweppes PLC ....................... 39,000 393,621
Diageo PLC .................................. 137,000 1,253,375
Hillsdown Holdings PLC ...................... 11,000 26,740
---------
1,673,736
Gas & Pipeline Utilities -- 0.16%
British Gas PLC ............................. 27,352 123,096
Hotels & Restaurants -- 0.20%
Ladbroke Group PLC .......................... 37,000 160,439
Industrial Machinery -- 0.22%
GKN PLC ..................................... 2,000 40,964
T&N PLC ..................................... 31,000 129,840
---------
170,804
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
United Kingdom (continued)
Leisure & Entertainment -- 0.62%
Compass Group PLC ........................... 19,000 $ 233,744
Rank Group PLC .............................. 45,000 250,563
---------
484,307
Mining -- 0.41%
Rio Tinto PLC ............................... 26,000 320,501
Oil -- 1.87%
British Petroleum Co. PLC ................... 24,000 317,485
Shell Transport & Trading Co. ............... 163,500 1,146,703
---------
1,464,188
Paper -- 0.10%
David S. Smith Holdings PLC ................. 25,000 81,509
Publishing -- 2.13%
Reed International PLC ...................... 117,000 1,114,601
United Newspapers & Media PLC ............... 49,000 557,744
---------
1,672,345
Retail -- 2.70%
Argos PLC ................................... 28,200 254,520
ASDA Group .................................. 98,000 288,304
Kingfisher PLC .............................. 66,000 921,443
Safeway PLC ................................. 46,000 259,154
Tesco PLC ................................... 47,000 387,562
---------
2,110,983
Telecommunication Services -- 0.68%
Cable & Wireless PLC ........................ 61,000 536,030
Utilities -- 0.03%
Centrica PLC ................................ 14,000 20,581
---------
Total United Kingdom ...................... 15,028,313
United States -- 5.92%
Apparel & Textiles -- 0.12%
Gucci Group NV N.Y .......................... 2,291 95,937
Banks -- 0.31%
Banco de Galicia Buenos Aires
S.A. de CV ADR ........................... 2,661 68,521
Banco Frances del Rio La Plata ADR........... 2,147 58,774
Banco Latinoamericano de
Exportaciones SA ADR ..................... 477 19,736
Unibanco - Uniao De Bancos
Brasiliers ADR ........................... 3,055 98,333
---------
245,364
Broadcasting -- 0.26%
Grupo Television SA de CV ADR (a) ........... 2,531 97,918
TV Azteca SA de CV ADR ...................... 4,600 103,788
---------
201,706
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Building & Construction -- 0.24%
Cemex SA ADR ................................ 20,410 $ 185,067
Containers & Glass -- 0.05%
Compania Cervecerias Unidas ADR ............. 1,385 40,684
Electric Utilities -- 0.93%
Centrais Electricas Brasileiras ADR.......... 5,000 124,325
Chilectra SA ADR ............................ 2,330 59,514
Chilenger SA ADR ............................ 2,016 49,392
Companhia Energetica De
Minas Gerais ADR ......................... 2,595 112,750
Empresa Nacional de Electricidad ADR......... 3,254 57,555
Enersis SA ADR .............................. 1,978 57,362
Huaneng Power International,
Inc ADR...................................... 11,400 264,337
---------
725,235
Financial Services -- 0.06%
Cifra SA de CV ADR .......................... 10,141 24,906
Creditcorp Ltd. ............................. 1,080 19,440
---------
44,346
Food & Beverages -- 0.38%
Companhia Brasileira de
Distribuicao .Grupo Pao de Acucar ADR........ 3,390 61,966
Gruma SA de CV ADR (144a) (a) ............... 3,056 48,521
Panamerican Beverages, Inc. Class A.......... 5,840 190,530
---------
301,017
Household Appliances -- 0.05%
Industrie Natuzzi SPA ADR ................... 1,810 37,331
Oil & Gas -- 0.50%
Lukoil Holding Co. .......................... 520 47,580
YPF Sociedad Anonima ADR .................... 10,158 347,277
---------
394,857
Real Estate -- 0.25%
Hong Kong Land Holdings, Ltd. ............... 101,908 195,663
Retail -- 0.02%
Santa Isabel SA ADR ......................... 959 16,783
Software -- 0.11%
Baan Co. N.V ................................ 2,500 82,500
Telecommunications -- 2.64%
Compania Anonima Nacional
Telefonos de Venezuela ADR................. 2,342 96,737
Mahanagar Telephone Nigam, Ltd. (a).......... 8,000 124,080
Telecomunicacoes Brasileiras ADR ............ 10,422 1,213,512
Telefonica de Argentina ADR (a) ............. 4,550 169,488
Telefonica del Peru SA ADR .................. 1,717 40,028
Telefonos de Mexico ADR ..................... 7,615 426,916
---------
2,070,761
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL INTERNATIONAL EQUITY INVESTMENT SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
United States (continued)
Total United States ....................... $4,637,251
---------
Total Common Stocks
(cost $69,868,498) .................... 74,707,201
---------
Rights & Warrants -- 0.00%
Belgium -- 0.00%
Banks -- 0.00%
Generale De Banque (a) (cost $26) ........... 26 8
---------
Preferred Stocks -- 2.07%
Australia -- 0.12%
Leisure & Entertainment -- 0.12%
News Corp. Ltd. ............................. 8,465 41,897
Sydney Harbour Casino Holdings Ltd........... 52,200 49,501
Total Australia ........................ 91,398
Brazil -- 1.27%
Banks -- 0.25%
Banco Bradesco SA........................... 13,040,953 128,534
Banco Bradesco SA ........................... 557,568 1,998
Banco Itau SA ............................... 124,000 66,664
Uniao de Bancos Brasileiros SA .............. 167 11
---------
197,207
Basic Indurstry -- 0.02%
Companhia Cimentu Partland Itau ............. 73,000 14,063
Consumer Products -- 0.04%
Brasmotor SA ................................ 82,150 8,097
Companhia de Tecidos Norte de
Coteminas ................................ 55,000 19,712
Lojas Americanas SA ......................... 815,665 3,800
---------
31,609
Electrical Equipment -- 0.18%
Companhia Cemig - Cia
Energetica de
Minas Gerais ............................. 3,311,597
143,882
Empressa Nacional de Comercio
Redito e Participacoes SA ................ 55,000 41
---------
143,923
Food & Beverages -- 0.11%
Companhia Cervejaria Brahma (a) ............. 128,894 86,618
Oil -- 0.28%
Petrobras Brasileiro SA ..................... 930,094 217,512
Market
Shares Value
------ -----
Preferred Stocks (continued)
Brazil (continued)
Steel -- 0.02%
Usinas Siderurgicas de Minas
Gerais ADR ............................... 2,288 $ 13,531
Telecommunications -- 0.37%
Telecommunicacoes de Rio
de Janiero SA ............................ 165,546 17,207
Telecommunicacoes de Minas Gerais ........... 1,959 247
Telecommunicacoes de Minas Gerais ........... 365,000 46,114
Telecommunicacoes de Sao Paulo SA ........... 852,141 226,762
---------
290,330
---------
Total Brazil .............................. 994,793
Finland -- 0.25%
Telecommunications--0.25%
Nokia Oy AB Series A ........................ 2,710 192,401
Germany -- 0.31%
Drugs & Health Care 0.10%
Fielmann AG ................................. 336 7,471
Fresenius AG ................................ 400 73,598
---------
81,069
Retail -- 0.08%
Hornbach Holdings AG ........................ 940 65,055
Software -- 0.13%
SAP AG ...................................... 297 97,159
---------
Total Germany ............................. 243,283
United States -- 0.12%
Steel -- 0.12%
Usinas Siderurgicas de
Minas Gerais ADR ......................... 16,230 95,981
---------
Total Preferred Stocks
(cost $1,602,182) ..................... 1,617,856
---------
Principal
Amount
------
Short Term Investments -- 2.53%
Money Market Fund -- 2.53%
State Street Global Advisor Fund
5.42% (b).................................. $1,983,932
1,983,932
-----------
Total Short Term Investments
(cost $1,983,932) ..................... 1,983,932
-----------
Total Investments -- 100%
(cost $73,454,612) .......................... $78,308,997
===========
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1997.
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL MID-CAP GROWTH SERIES
SCHEDULE OF INVESTMENTS
December 31, 1997
Market
Shares Value
------ -----
Common Stocks --91.65%
Aerospace & Aircraft -- 0.97%
BE Aerospace, Inc. (a) .................... 46,000 $ 1,230,500
Apparel & Textiles -- 2.07%
Warnaco Group, Inc. ....................... 84,000 2,635,500
Automobiles & Parts -- 2.00%
Danaher Corp. ............................. 33,000 2,083,125
OEA, Inc. ................................. 15,900 460,105
-----------
2,543,230
Broadcasting -- 3.27%
Comcast Corp. ............................. 48,000 1,515,000
Cox Communications, Inc. (a) .............. 45,000 1,802,813
Jacor Communications, Inc. (a) ............ 16,000 850,000
-----------
4,167,813
Building & Construction -- 0.36%
Fastenal Co. .............................. 12,000 459,000
Business Services -- 11.23%
AccuStaff, Inc. (a) ....................... 41,000 943,000
ADVO, Inc. (a) ............................ 16,000 312,000
Catalina Marketing Corp. (a) .............. 27,600 1,276,500
Cendant Corp. (a) ......................... 51,416 1,767,408
Galileo International, Inc. ............... 60,000 1,657,500
Gartner Group, Inc. (a) ................... 39,000 1,452,750
Interim Services, Inc. (a) ................ 70,000 1,811,250
National Data Corp. ....................... 33,000 1,192,125
Outdoor Systems, Inc. (a) ................. 52,450 2,012,769
Sungard Data Systems, Inc. (a) ............ 60,600 1,878,600
-----------
14,303,902
Chemicals -- 0.92%
Great Lakes Chemical Corp. ................ 26,000 1,166,750
Computers & Business Equipment --6.23%
Affiliated Computer Services, Inc. (a)..... 84,000 2,210,250
CheckFree Holding Corp. (a) ............... 33,000 891,000
DST Systems, Inc. (a) ..................... 41,000 1,750,187
Microchip Technology Inc.(a) .............. 24,000 720,000
Network Associates, Inc. (a) .............. 32,000 1,692,000
Security Dynamics Technologies,
Inc, (a) ............................... 19,000 679,250
-----------
7,942,687
Drugs & Health Care -- 13.29%
Agouron Pharmaceuticals, Inc. (a) ......... 22,000 643,500
ALZA Corp. (a) ............................ 41,000 1,304,312
Biogen, Inc. (a) .......................... 64,000 2,328,000
Cardinal Health, Inc. ..................... 15,000 1,126,875
Covance, Inc. (a) ......................... 77,000 1,530,375
General Nutrition Cos., Inc. (a) ......... 38,000 1,292,000
Gilead Sciences, Inc. (a) ................. 35,400 1,354,050
Market
Shares Value
------ -----
Common Stocks (continued)
Drugs & Health Care (continued)
Henry Schein, Inc. (a) .................... 11,500 $ 402,500
Omnicare, Inc. ............................ 45,000 1,395,000
Quorum Health Group, Inc. (a) ............. 58,600 1,530,925
St. Jude Medical, Inc. .................... 34,000 1,037,000
Sybron International Corp. (a) ............ 28,000 1,314,250
US Surgical Corp. ......................... 43,000 1,260,437
Vencor, Inc. (a) ........................ 17,000 415,437
-----------
16,934,661
Electrical Equipment -- 0.50%
Anixter International, Inc. (a) ........... 39,000 643,500
Electronics -- 4.19%
Analog Devices, Inc. (a) .................. 34,000 941,375
Maxim Integrated Products, Inc. (a) ....... 33,000 1,138,500
PMC -Sierra, Inc.(a) ...................... 21,000 651,000
Teleflex, Inc. ............................ 42,000 1,585,500
Xilinx, Inc. (a) .......................... 29,000 1,016,812
-----------
5,333,187
Financial Services -- 4.01%
Capital One Financial Corp. ............... 25,800 1,398,038
Corporate Express, Inc. (a) ............... 94,500 1,216,688
FINOVA Group,Inc .......................... 34,000 1,689,375
Newcourt Credit GroupInc .................. 24,000 809,188
-----------
5,113,289
Food & Beverages -- 6.48%
JP Foodservice, Inc. (a) .................. 65,000 2,400,938
Meyer Fred Inc. (a) ....................... 36,000 1,309,500
Outback Steakhouse, Inc. (a) .............. 38,000 1,092,500
Richfood Holdings, Inc. ................... 42,000 1,186,500
Suiza Foods Corp. (a) ..................... 38,000 2,263,375
-----------
8,252,813
Funeral Services -- 0.72%
Stewart Enterprises, Inc. ................. 19,700 918,512
Gas & Pipeline Utilities -- 1.05%
Cooper Cameron Corp. (a) .................. 22,000 1,342,000
Gas Exploration -- 0.95%
Weatherford Enterra, Inc. (a) ............. 27,600 1,207,500
Gold -- 1.63%
Battle Mountain Gold Co. .................. 176,000 1,034,000
Cambior, Inc. ............................. 70,000 411,250
TVX Gold, Inc. (a) ........................ 186,000 627,750
-----------
2,073,000
Hotels & Restaurants -- 0.82%
La Quinta Inns, Inc. ...................... 54,000 1,042,875
See notes to the financial statements.
<PAGE>
T. ROWE PRICE/JNL MID-CAP GROWTH SERIES
SCHEDULE OF INVESTMENTS (continued)
Market
Shares Value
------ -----
Common Stocks (continued)
Industrial Machinery -- 1.78%
TriMas Corp. .............................. 66,000 $ 2,268,750
Insurance -- 3.75%
Ace Ltd. .................................. 19,000 1,833,500
Fairfax Financial Holdings, Ltd. (a)....... 4,900 1,090,375
Partner Re, Ltd. .......................... 40,000 1,855,000
-----------
4,778,875
Investment Companies -- 1.30%
Franklin Resources, Inc. .................. 19,000 1,651,813
Leisure Time -- 1.59%
Royal Carribean Cruises, Ltd. ............. 38,000 2,025,875
Office Furnishings & Supplies -- 0.48%
Ikon Office Solutions, Inc. ............... 22,000 618,750
Petroleum Services -- 2.89%
Camco International, Inc. ................. 22,400 1,426,600
Smith International, Inc. (a) ............. 20,600 1,264,325
United Meridian Corp. (a) ................. 35,300 992,813
-----------
3,683,738
Pollution Control -- 2.49%
Culligan Water Technologies, Inc. (a)...... 39,000 1,959,750
USA Waste Services, Inc. (a) .............. 31,000 1,216,750
-----------
3,176,500
Real Estate --1.93%
INMC Mortgage Holdings, Inc ............... 48,000 1,125,000
Security Capital Group Inc. (a) ........... 41,000 1,332,500
-----------
2,457,500
Retail -- 7.50%
BJ's Wholesale Club Inc. (a) .............. 45,000 1,411,875
Circuit City Stores, Inc. ................. 53,500 1,895,481
Costco Companies, Inc. (a) ................ 35,000 1,561,875
Gymboree Corp. (a) ........................ 54,000 1,478,250
Kohl's Corp. (a) .......................... 17,000 1,158,125
MSC Industrial Direct Co., Inc. (a)....... 28,800 1,220,400
ShopKo Stores, Inc. (a) ................... 38,500 837,375
-----------
9,563,381
Software -- 3.51%
BMC Software, Inc. (a) .................... 15,000 984,375
Intuit, Inc. (a) .......................... 16,000 660,000
Platinum Technology, Inc. (a) ............. 12,000 339,000
Sterling Commerce, Inc. (a) ............... 36,000 1,383,750
Synopsys, Inc. (a) ........................ 31,000 1,108,250
-----------
4,475,375
Market
Shares Value
------ -----
Common Stocks (continued)
Telecommunications -- 3.74%
Cincinnati Bell, Inc ...................... 28,000 $ 868,000
Omnipoint Corp. (a) ....................... 38,000 883,500
Paging Network, Inc. (a) .................. 89,000 956,750
360 Communications Co. (a) ................ 83,000 1,675,563
Vanguard Cellular Systems, Inc. (a)........ 30,000 382,500
-----------
4,766,313
-----------
Total Common Stocks
(cost $97,011,710) .................. 116,777,589
-----------
Principal
Amount
------
Short Term Investments -- 8.35%
U.S. Government Agencies -- 2.68%
Federal Home Loan Mortgage
Corp Discount Notes
4.75%, 01/02/1998..................... $2,033,000 2,032,732
5.52%, 01/16/1998 .................... 172,000 171,604
-----------
2,204,336
Federal National Mortgage
Association
Discount Notes
5.69%, 01/05/1998 .................... 765,000 764,516
5.78%, 01/20/1998 .................... 447,000 445,636
-----------
1,210,152
Money Market Fund -- 0.00%
State Street Global Advisor
Fund, 5.42%, (b) .......................... 488 488
United States Treasury Bills -- 5.67%
5.15%, 01/22/1998 ......................... 130,000 129,610
5.16%, 01/22/1998 ......................... 6,781,000 6,760,590
5.20%, 01/22/1998 ......................... 332,000 330,994
-----------
7,221,194
-----------
Total Short Term Investments
(cost $10,636,170) .................... 10,636,170
-----------
Total Investments -- 100%
(cost $107,647,880)........................ $127,413,759
===========
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Dividend yields change daily to reflect current market conditions. Rate
stated is the quoted yield as of December 31, 1997.
<PAGE>
<PAGE>
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, 1998
Statements of Operations for the six
months ended June 30, 1998
Statements of Changes in Net Assets
for the year ended December 31, 1997
and the six months ended June 30,
1998
Financial Highlights for the Periods
May 15, 1995 through March 31, 1996,
April 1, 1996 to December 31, 1996,
the year ended December 31, 1997,
and the six months ended June 30,
1998
Notes to Financial Statements
Schedules of Investments at June 30, 1998
Report of Independent Accountants at
December 31, 1997
Statements of Assets and Liabilities at
December 31, 1997
Statements of Operations for the year
ended December 31, 1997
Statements of Changes in Net Assets
for the Period April 1, 1996 to
December 31, 1996, and the year
ended December 31, 1997
Financial Highlights for the Periods
May 15, 1995 through March 31, 1996,
April 1, 1996 to December 31, 1996,
and the year ended December 31, 1997
Notes to Financial Statements at
December 31, 1997
Schedules of Investments at December 31,
1997
(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 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, incorporated by
reference to Registrant's Post-Effective Amendment No. 11 filed
with the Securities and Exchange Commission on October 16, 1997.
(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, incorporated by
reference to Registrant's Post-Effective Amendment No. 11 filed
with the Securities and Exchange Commission on October 16, 1997.
(n) Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Putnam Investment Management, Inc. dated April
22, 1997, incorporated by reference to Registrant's
Post-Effective Amendment No. 11 filed with the Securities and
Exchange Commission on October 16, 1997.
(o) Amendment dated December 17, 1997 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. 12 filed
with the Securities and Exchange Commission on January 16, 1998.
(p) Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Alliance Capital Management L.P. dated
December 17, 1997, incorporated by reference to Registrant's
Post-Effective Amendment No. 12 filed with the Securities and
Exchange Commission on January 16, 1998.
(q) Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Goldman Sachs Asset Management dated December
17, 1997, incorporated by reference to Registrant's
Post-Effective Amendment No. 13 filed with the Securities and
Exchange Commission on March 27, 1998.
(r) Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and J.P. Morgan Investment Management Inc. dated
December 17, 1997, incorporated by reference to Registrant's
Post-Effective Amendment No. 12 filed with the Securities and
Exchange Commission on January 16, 1998.
(s) Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Lazard Asset Management dated December 17,
1997, incorporated by reference to Registrant's Post-Effective
Amendment No. 12 filed with the Securities and Exchange
Commission on January 16, 1998.
(t) Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Pacific Investment Management Company dated
December 17, 1997, incorporated by reference to Registrant's
Post-Effective Amendment No. 12 filed with the Securities and
Exchange Commission on January 16, 1998.
(u) Amendment dated December 17, 1997 to 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 Post-Effective
Amendment No. 12 filed with the Securities and Exchange
Commission on January 16, 1998.
(v) Sub-Advisory Agreement between Jackson National Financial
Services, Inc. and Standard & Poor's Investment Advisory
Services, Inc.dated March 2, 1998, incorporated by reference to
Registrant's Post-Effective Amendment No. 14 filed with the
Securities and Exchange Commission on May 1, 1998.
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
Securities 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, incorporated by reference to Registrant's
Post-Effective Amendment No. 11 filed with the Securities and
Exchange Commission on October 16, 1997.
(d) Fund Participation Agreement between Registrant, Jackson National
Life Insurance Company and Jackson National Separate Account III
dated March 16, 1998, incorporated by reference to Registrant's
Post-Effective Amendment No. 13 filed with the Securities and
Exchange Commission on March 27, 1998.
(e) Amendment dated March 16, 1998 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. 13 filed with the Securities and
Exchange Commission on March 27, 1998.
(f) Fund Participation Agreement between Registrant, Jackson National
Life Insurance Company of New York and JNLNY Separate Account I
dated March 16, 1998, incorporated by reference to Registrant's
Post-Effective Amendment No. 13 filed with the Securities and
Exchange Commission on March 27, 1998.
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.
11. Consent of PricewaterhouseCoopers 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. Not Applicable
18. Not Applicable
Item 25. Persons controlled by or under Common Control with Registrant.
Not Applicable.
Item 26. Number of Holders of Securities.
NUMBER OF
HOLDERS AS OF
SERIES September 14, 1998
------ ------------------
JNL Aggressive Growth Series 16
JNL Capital Growth Series 3
JNL Global Equities Series 16
JNL/Alger Growth Series 9
JNL/Alliance Growth Series 8
JNL/Eagle Core Equity Series 9
JNL/Eagle SmallCap Equity Series 7
JNL/JPM International & Emerging Markets Series 2
JNL/PIMCO Total Return Bond Series 4
JNL/Putnam Growth Series 7
JNL/Putnam Value Equity Series 6
JNL/S&P Conservative Growth Series I 1
JNL/S&P Moderate Growth Series I 1
JNL/S&P Aggressive Growth Series I 1
JNL/S&P Very Aggressive Growth Series I 1
JNL/S&P Equity Only-Growth Series I 1
JNL/S&P Equity Only-Aggressive Growth Series I 1
JNL/S&P Conservative Growth Series II 1
JNL/S&P Moderate Growth Series II 1
JNL/S&P Aggressive Growth Series II 1
JNL/S&P Very Aggressive Growth Series II 1
JNL/S&P Equity Only-Growth Series II 1
JNL/S&P Equity Only-Aggressive Growth Series II 1
Goldman Sachs/JNL Growth & Income Series 8
Lazard/JNL Small Cap Value Series 6
Lazard/JNL Mid Cap Value Series 8
PPM America/JNL Balanced Series 3
PPM America/JNL High Yield Bond Series 5
PPM America/JNL Money Market Series 4
Salomon Brothers/JNL Balanced Series 5
Salomon Brothers/JNL Global Bond Series 10
Salomon Brothers/JNL High Yield Bond Series 4
Salomon Brothers/JNL U.S. Government & Quality Bond Series 5
T. Rowe Price/JNL Established Growth Series 3
T. Rowe Price/JNL International Equity Investment Series 4
T. Rowe Price/JNL Mid-Cap Growth Series 11
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 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, Standard & Poor's
Investment Advisory Services, Inc., 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. 801-32361
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 801-6568
Pacific Investment Management Company 801-48187
PPM America, Inc. 801-40783
Putnam Investment Management, Inc. 801-7974
Salomon Brothers Asset Management Inc 801-32046
Standard & Poor's Investment Advisory
Services, Inc. 801-51431
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
Certain accounts, books and other documents required to be
maintained pursuant to Rule 31a-1(b)(4), (5), (6), (7), (9),
(10), and (11) are in the physical possession of the
Registrant at 5901 Executive Drive, Lansing, Michigan 48911;
certain accounts, books and other documents required to be
maintained pursuant to Rule 31a-1(b)(4), (5), (6), (7), (9),
(10), and (11) are in the physical possession of the
Registrant at 225 West Wacker Drive, Suite 1200, Chicago,
Illinois 60606; all other books, accounts and other documents
required to be maintained under Section 31(a) of the
Investment Company Act of 1940 and the Rules promulgated
thereunder are in the physical possession of State Street Bank
and Trust Company, 105 Rosemont Road, Westwood, Massachusetts
02090.
Item 31. Management Services.
Not Applicable.
Item 32. Undertakings.
(a) Not Applicable.
(b) Not Applicable.
(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>
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 18th
day of September, 1998.
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
by Thomas J. Meyer* Trustee September 18, 1998
- ---------------------------- ------------------
Andrew B. Hopping
/s/ Robert A. Fritts Vice President,
by Thomas J. Meyer* Treasurer, CFO September 18, 1998
- ---------------------------- and Trustee ------------------
Robert A. Fritts
/s/ Joseph Frauenheim Trustee
by Thomas J. Meyer* September 18, 1998
- ---------------------------- ------------------
Joseph Frauenheim
/s/ Richard McLellan Trustee
by Thomas J. Meyer* September 18, 1998
- ---------------------------- ------------------
Richard McLellan
/s/ Peter McPherson Trustee
by Thomas J. Meyer* September 18, 1998
- ---------------------------- ------------------
Peter McPherson
* Attorney In Fact
<PAGE>
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 9/12/97
- --------------------- ------------------
Andrew B. Hopping Date
/s/ Robert A. Fritts 9-12-97
- --------------------- ------------------
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 Sept 15, 97
- --------------------- ------------------
Peter McPherson Date
<PAGE>
EXHIBIT LIST
Exhibit
Number Description
- ------ -----------
10. Opinion and Consent of Counsel, attached
hereto as EX-99.B10
11. Consent of Independent Accountants, attached
hereto as EX-99.B11
EX-99.B10
[BLAZZARD, GRODD & HASENAUER, P.C. LETTERHEAD]
September 14, 1998
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. 15
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.
<PAGE>
Board of Trustees
JNL Series Trust
September 14, 1998
Page 2
4. Upon the acceptance of purchase payments made by shareholders in
accordance with the Prospectus contained in the Registration Statement
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
EX-99.B11
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to use in the Statement of Additional Information constituting
part of this Post-Effective Amendment No. 15 to the registration statement on
Form N-1A (the "Registration Statement") of our report dated February 6, 1998,
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.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Chicago, Illinois
September 15, 1998
