SUPPLEMENT TO
TO STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1999
FOR THE JNL(R) SERIES TRUST
PIMCO serves as investment sub-adviser to the JNL/PIMCO Total Return
Bond Series ("Total Return Bond Series") of the JNL Series Trust pursuant to an
investment sub-advisory contract ("Sub-Advisory Contract") between PIMCO and
Jackson National Financial Services, LLC. PIMCO is a subsidiary partnership of
PIMCO Advisors. The general partners of PIMCO Advisors are PIMCO Partners, G.P.
and PIMCO Advisors Holdings L.P. ("PAH"). PIMCO Partners, G.P. is a general
partnership between PIMCO Holding LLC, a Delaware limited liability company and
an indirect wholly-owned subsidiary of Pacific Life Insurance Company, and PIMCO
Partners LLC, a California limited liability company controlled by the current
Managing Directors and two former Managing Directors of PIMCO. PIMCO Partners,
G.P. is the sole general partner of PAH.
PIMCO is responsible for making investment decisions and placing orders
for the purchase and sale of the Total Return Bond Series' investments directly
with the issuers or with brokers or dealers selected by it in its discretion.
See "Portfolio Transactions." PIMCO also furnishes to the Board of Trustees,
which has overall responsibility for the business and affairs of the JNL Series
Trust, periodic reports on the investment performance of the Total Return Bond
Series.
On October 31, 1999, PIMCO Advisors, PAH and Allianz AG ("Allianz")
announced that they had reached a definitive agreement pursuant to which Allianz
will acquire majority ownership of PIMCO Advisors and its subsidiaries,
including PIMCO (the "Allianz Transaction"). Under the terms of the transaction,
Allianz will acquire all of PAH, the publicly traded general partner of PIMCO
Advisors. Pacific Life Insurance Company will retain an approximately 30%
interest in PIMCO Advisors. The Allianz Transaction is currently expected to be
completed by the end of the first quarter of 2000.
Allianz is the world's second largest insurance company and a leading
provider of financial services, particularly in Europe, and is represented in 68
countries world-wide through subsidiaries, branch and representative offices,
and other affiliated entities. Allianz currently has assets under management of
more than $390 billion, and in its last fiscal year wrote approximately $50
billion in gross insurance premiums. After consummation of the transaction, the
combined firms will have over $650 billion in assets under management.
Affiliates of Allianz currently include Dresdner Bank AG, Deutsche Bank
AG, Munich Re, and HypoVereinsbank. These entities, as well as certain
broker-dealers controlled by or affiliated with these entities, such as Bankers
Trust Company and BT Alex Brown, Inc. are considered the "Affiliated Brokers".
Once the Allianz transaction is consummated, absent an SEC exemption or other
relief, the Total Return Bond Series would generally be precluded from effecting
principal transactions with the Affiliated Brokers, and its ability to purchase
securities being underwritten by an Affiliated Broker or to utilize the
Affiliated Brokers for agency transactions would be subject to restrictions.
PIMCO does not believe that the restrictions on transactions with the Affiliated
Brokers described above will materially adversely affect its ability,
post-closing, to provide services to the Total Return Bond Series, the Total
Return Bond Series' ability to take advantage of market opportunities, or the
Total Return Bond Series' overall performance. Other series of the JNL Series
Trust for which PIMCO (or an affiliate) does not serve as investment sub-adviser
would not, in general, be subject to these same restrictions post-closing.
The consummation of the Allianz Transaction is subject to the approval
of the public unitholders of PAH, as well as to certain regulatory and client
approvals, including the approval of the Board of Trustees of the Trust and the
approval of the shareholders of the Total Return Bond Series, and other
conditions customary to transactions of this kind.
This Statement of Additional Information will be supplemented or
revised if the Allianz Transaction does not occur substantially as set forth
above.
This Supplement is dated December 1, 1999
(To be used with Form No. V3180 5/99 only)
