PROSPECTUS
May 1, 1999
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).
The shares of the Trust are sold to life insurance company separate accounts to
fund the benefits of variable annuity contracts. The Trust currently offers
shares in the following Series:
PPM America/JNL Money Market Series
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THE
TRUST'S SECURITIES, OR DETERMINED WHETHER THIS PROSPECTUS IS ACCURATE OR
COMPLETE. IT IS A CRIMINAL OFFENSE TO STATE OTHERWISE.
The Trust's Statement of Additional Information (SAI) contains additional
information about the Trust and the Series.
---------------
<PAGE>
TABLE OF CONTENTS
About the Series of the Trust 1
PPM America/JNL Money Market Series 1
Management of the Trust 4
Investment Adviser 4
Management Fee 4
Sub-Advisory Arrangements 4
Administrative Fee 4
Investment in Trust Shares 5
Share Redemption 5
Tax Status 5
Financial Highlights 8
<PAGE>
ABOUT THE SERIES OF THE TRUST
PPM AMERICA/JNL MONEY MARKET SERIES
INVESTMENT OBJECTIVE. 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.
PRINCIPAL INVESTMENT STRATEGIES. The Series invests in high quality, U.S.
dollar-denominated money market instruments that mature in 397 days or less. The
sub-adviser manages the Series to meet the requirements of Rule 2a-7 under the
Investment Company Act of 1940, as amended, including those as to quality,
diversification and maturity. The Series may invest more than 25% of its assets
in the U.S. banking industry.
PRINCIPAL RISKS OF INVESTING IN THE SERIES. An investment in the Series is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Series seeks to preserve the value of your
investment at $1.00 per share, you could lose money by investing in the Series.
A variety of factors may influence its investment performance, such as:
o Market risk. Fixed income securities in general are subject to
credit risk and market risk. Credit risk is the actual or
perceived risk that the issuer of the bond will not pay the
interest and principal payments when due. Bond value typically
declines if the issuer's credit quality deteriorates. Market risk,
also known as interest rate risk, is the risk that interest rates
will rise and the value of bonds, including those held by the
Series, will fall. A broad-based market drop may also cause a
bond's price to fall.
In addition, the performance of the Series depends on the sub-adviser's ability
to effectively implement the investment strategies of the Series.
PERFORMANCE. The bar chart and table below show the past performance of the
Series' shares. The chart presents the annual returns since these shares were
first offered and shows how performance has varied from year to year. The table
shows the Series' average annual returns and compares them to the market
indicators listed. Both the chart and the table assume reinvestment of dividends
and distributions. The Series' returns shown in the chart and table below do not
reflect the deduction of any charges that are imposed under a variable annuity
contract. Those charges, which are described in the variable annuity prospectus,
will reduce the Series' performance. As with all mutual funds, the Series' past
performance does not necessarily indicate how it will perform in the future.
Year-By-Year Returns as of December 31
4.87% 5.01% 4.99%
[Insert Chart]
1996 1997 1998
In the periods shown in the chart, the Series' highest quarterly return was
1.30% (3rd quarter of 1995) and its lowest quarterly return was 1.17% (1st
quarter of 1997).
<TABLE>
<CAPTION>
Average Annual Total Returns as of December 31, 1998
1 year Life of Series*
------ ---------------
<S> <C> <C>
PPM America/JNL Money Market Series 4.99% 5.00%
Merrill Lynch Treasury Bill Index (3 month) 5.23% 5.405%
</TABLE>
The 7-day yield of the Series on December 31, 1998, was 4.78%.
The Merrill Lynch Treasury Bill Index is a broad-based unmanaged index.
* The Series began operations on May 15, 1995.
ADDITIONAL INFORMATION ABOUT THE PRINCIPAL INVESTMENT STRATEGIES, OTHER
INVESTMENTS AND RISKS OF THE SERIES. The PPM America/JNL Money Market Series
invests 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; and
o Repurchase agreements on obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities.
The SAI has more information about the Series' authorized investments and
strategies, as well as the risks and restrictions that may apply to them.
THE SUB-ADVISER AND PORTFOLIO MANAGEMENT. The sub-adviser to the PPM America/JNL
Money Market Series is PPM America, Inc. (PPM), which is located at 225 West
Wacker Drive, Chicago, Illinois 60606. PPM, an affiliate of the investment
adviser to the Trust, manages assets of Jackson National Life Insurance Company
and of other affiliated companies.
PPM supervises and manages the investment portfolio of the Series and directs
the purchase and sale of the 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 portfolio as they deem
appropriate in the pursuit of the Series' investment objectives. PPM has
supervised and managed the investment portfolio of the Series since inception of
the Series.
<PAGE>
MORE ABOUT THE INVESTMENT OBJECTIVES AND RISKS OF THE SERIES
The investment objective of the Series is not fundamental and may be changed by
the Trustees without shareholder approval.
YEAR 2000 ISSUES: Apart from the particular risks described above for the
Series, the Trust could be adversely affected if the computer systems used by
the Trust's investment adviser and its other service providers are unable to
process and calculate date-related information because they are not programmed
to distinguish between the year 2000 and the year 1900.
The Trust relies entirely on outside service providers for the processing of its
business. To the extent that a service provider utilizes computers to process
the Trust's business, the smooth operation of the Trust depends on the ability
of those computers to continue to function properly.
The Trust has contacted each of its service providers to ascertain the service
provider's state of readiness for the year 2000. Each of the service providers
has indicated to the Trust that, at this time, it is either year 2000 compliant
or that it has identified its systems which are not currently year 2000
compliant and that it intends to make such systems compliant before December 31,
1999. The Trust intends to continue to monitor the year 2000 status of its
service providers.
Based on the information currently available, the Trust does not anticipate any
material impact on the delivery of services to and by the Trust. However, since
the Trust must rely on the information provided to it by its service providers,
there can be no assurance that the steps taken by the service providers in
preparation for the year 2000 will be sufficient to avoid any adverse impact on
the Trust.
Similarly, the companies and other issuers in which a Series invests could be
adversely affected by year 2000 computer-related problems, and there can be no
assurance that the steps taken, if any, by these issuers will be sufficient to
avoid any adverse impact on the Series.
<PAGE>
MANAGEMENT OF THE TRUST
INVESTMENT ADVISER
Under Massachusetts law and the Trust's Declaration of Trust and By-Laws, the
management of the business and affairs of the Trust is the responsibility of the
Trustees.
Jackson National Financial Services, LLC (JNFS), 5901 Executive Drive, Lansing,
Michigan 48911, is the investment adviser to the Trust and provides the Trust
with professional investment supervision and management. 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 JNFS.
MANAGEMENT FEE
As compensation for its services, JNFS receives a fee from the Series, accrued
daily and payable monthly. The fee which JNFS received from the Series for the
fiscal year ended December 31, 1998, is set forth below as an annual percentage
of the net assets of the Series.
SERIES FEES
------ ----
PPM America/JNL Money Market Series................................. .60%
SUB-ADVISORY ARRANGEMENTS
JNFS selects, contracts with and compensates the sub-adviser to manage the
investment and reinvestment of the assets of the Series. JNFS monitors the
compliance of the sub-adviser with the investment objectives and related
policies of the Series and reviews the performance of the sub-adviser and
reports periodically on such performance to the Trustees of the Trust.
Under the terms of the of the Sub-Advisory Agreement with JNFS, the sub-adviser
manages the investment and reinvestment of the assets of the Series, subject to
the supervision of the Trustees of the Trust. The sub-adviser formulates a
continuous investment program for the Series consistent with its investment
objectives and policies outlined in this Prospectus. The sub-adviser implements
such program by purchases and sales of securities and regularly reports to JNFS
and the Trustees of the Trust with respect to the implementation of such
program.
As compensation for its services, the sub-adviser receives a fee from JNFS,
stated as an annual percentage of the net assets of the Series. The SAI contains
a schedule of the management fees JNFS currently is obligated to pay the
sub-adviser out of the advisory fee it receives from the Series.
ADMINISTRATIVE FEE
In addition to the investment advisory fee, effective January 1, 1999, the
Series pays to JNFS an Administrative Fee of .10% of the average daily net
assets of the Series. In return for the fee, JNFS provides or procures all
necessary administrative functions and services for the operation of the Series.
In addition, JNFS, at its own expense, arranges for legal, audit, fund
accounting, custody, printing and mailing, and all other services necessary for
the operation of the Series. The Series is responsible for trading expenses
including brokerage commissions, interest and taxes, and other non-operating
expenses. Prior to January 1, 1999, the Series paid all of its own operating
expenses.
INVESTMENT IN TRUST SHARES
Shares of the Trust are currently sold to separate accounts (Accounts) of
Jackson National Life Insurance Company, 5901 Executive Drive, Lansing, Michigan
48911, and Jackson National Life Insurance Company of New York, 2900 Westchester
Avenue, Purchase, New York 10577, to fund the benefits under certain variable
annuity contracts (Contracts). An insurance company purchases the shares of the
Series at their net asset value using premiums received on Contracts issued by
the insurance company. There is no sales charge.
Shares of the Series are not available to the general public directly. While the
Series may be similar to, and may in fact be modeled after publicly traded
mutual funds, Contract purchasers should understand that the Series is not
otherwise directly related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and the Series may differ
substantially.
The net asset value per share of the 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
the Series, deducting its liabilities, and dividing by the number of shares
outstanding. Generally, the value of exchange-listed or -traded securities is
based on their respective market prices, bonds are valued based on prices
provided by an independent pricing service and short-term debt securities are
valued at amortized cost, which approximates market value. The Series may invest
in securities primarily listed on foreign exchanges and that trade on days when
the Series does not price its shares. As a result, the Series' net asset value
may change on days when shareholders are not able to purchase or redeem the
Series' shares.
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 Account redeems shares to make benefit or withdrawal payments under the terms
of its Contracts. 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.
TAX STATUS
The Series' policy is to meet the requirements of Subchapter M of the Internal
Revenue Code (Code) necessary to qualify as a regulated investment company. The
Series intends to distribute all its net investment income and net capital gains
to shareholders and, therefore, will not be required to pay any federal income
taxes.
The Series is treated as a separate corporation for purposes of the Code.
Therefore, the assets, income, and distributions of the Series are considered
separately for purposes of determining whether or not the Series qualifies as a
regulated investment company.
Because the shareholders of the Series are Accounts, there are no tax
consequences to shareholders of buying, holding, exchanging and selling shares
of the Series. Distributions from the Series are not taxable to those
shareholders. However, owners of Contracts should consult the applicable Account
prospectus for more detailed information on tax issues related to the Contracts.
<PAGE>
FINANCIAL HIGHLIGHTS
The following table provides selected per share data for one share of the
Series. The information does not reflect any charges imposed by an Account
investing in shares of the Series. You should refer to the appropriate Account
prospectus for additional information regarding such charges.
The information for each of the periods shown below has been audited by
PricewaterhouseCoopers LLP, independent accountants, and should be read in
conjunction with the financial statements and notes thereto, together with the
report of PricewaterhouseCoopers LLP thereon, in the Annual Report included in
the Statement of Additional Information.
<PAGE>
<TABLE>
<CAPTION>
Income from operations Distributions
----------------------------- -------------------------------------------
Net realized &
unrealized gains
Net Asset Net on investments From net
value, investment & foreign From net realized gains
beginning income currency investment on investment Return of
Period or Year ended of period (loss) related items income transactions Capital
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PPM America/JNL Money Market Series
Year ended 12/31/98 1.00 0.05 - (0.05) - -
Year ended 12/31/97 1.00 0.05 - (0.05) - -
Period from 4/1/96 to 12/31/96 1.00 0.04 - (0.04) - -
Period from 5/15/95* to 3/31/96 1.00 0.04 - (0.04) - -
====================================================================================================================================
</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 December 31, 1998, December 31, 1996 and
March 31, 1996.
(c) Computed after giving effect to the Adviser's expense reimbursement and
fees paid indirectly.
<PAGE>
<TABLE>
<CAPTION>
Ratio 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>
PPM America/JNL Money Market Series
Year ended 12/31/98 1.00 4.99% 56,349 0.74% 4.87% -
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% -
====================================================================================================================================
</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
Period or Year ended assets (b) assets (b)
================================================================================
PPM America/JNL Money Market Series
Year ended 12/31/98 0.75% 4.86%
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%
================================================================================
<PAGE>
PROSPECTUS
MAY 1, 1999
JNL SERIES TRUST
You can find more information about the Trust in:
o The Trust's STATEMENT OF INFORMATION (SAI) dated May 1, 1999,
which contains further information about the Trust and the Series,
particularly their investment practices and restrictions. The
current SAI is on file with the Securities and Exchange Commission
(SEC) and is incorporated into the Prospectus by reference (which
means the SAI is legally part of the Prospectus).
o The Trust's ANNUAL AND SEMI-ANNUAL REPORTS to shareholders, which
show the Series' actual investments and include financial
statements as of the close of the particular annual or semi-annual
period. The Annual Report also discusses the market conditions and
investment strategies that significantly affected each Series'
performance during the year covered by the report.
You can obtain a copy of the current SAI or the most recent Annual or
Semi-Annual Reports without charge, or make other inquiries, by calling (800)
766-4683, or writing the JNL Series Trust Service Center, P.O. Box 378002,
Denver, Colorado 80237-8003.
You can also obtain information about the Trust (including its current SAI and
most recent Annual and Semi-Annual Reports) from the SEC's Internet site
(http://www.sec.gov) and from the SEC's Public Reference Room in Washington,
D.C. You can find out about the operation of the Public Reference Room and
copying charges by calling (800) SEC-0330.
The Trust's SEC file number is: 811-8894
