SUPPLEMENT TO THE PROSPECTUS DATED MAY 1, 2000
JNL(R) SERIES TRUST
Certain series of the JNL Series Trust (the "Trust") have adopted a Distribution
Plan under Rule 12b-1 of the Investment Company Act of 1940, as amended (the
"1940 Act"). Accordingly, the Prospectus is amended by inserting the following
section after the paragraph entitled "Administrative Fee" which is located in
the "Management of the Trust " section of the prospectus:
BROKERAGE ENHANCEMENT PLAN
At a shareholder meeting of the Trust held on October 26, 2000, all series
except the PPM America/JNL Money Market Series and each of the JNL/S&P Series
adopted, in accordance with the provisions of Rule 12b-1 under the 1940 Act, a
Brokerage Enhancement Plan (the "Plan"). The Plan uses available brokerage
commissions to promote the sale and distribution of Trust shares (through the
sale of variable insurance products funded by the Trust).
The Plan authorizes the Trust to place orders for the purchase or sale of
portfolio securities or other assets with: (i) broker-dealers that have agreed
to direct a portion of their brokerage commissions to introducing brokers
("Brokerage Payments") to be used to finance activities that are primarily
intended to result in the sale of Trust shares through the sale of Variable
Contracts; and (ii) broker-dealers that, in addition to executing the trade,
will provide brokerage credits, benefits or other services ("Brokerage Credits")
to be used directly or indirectly to promote the distribution of Trust shares
through the sale of Variable Contracts. Management of JNFS has informed the
Board of Trustees of the Trust that brokerage commission rates and commission
amounts paid by the various Series of the Trust are NOT expected to increase as
a result of the implementation of the Plan. As part of the Plan, JNLD would
become the principal underwriter of the Series of the Trust adopting the Plan,
with responsibility for promoting sales of shares of such Series.
Under the Plan, JNFS or a Sub-Adviser, would, subject to the
requirement to seek best price and execution, effect brokerage transactions in
portfolio securities through broker-dealers. It is anticipated that activities
or services which will be procured through Brokerage Payments and Brokerage
Credits given to JNLD will include:
o Developing, preparing, printing, and mailing of advertisements, sales
literature and other promotional material describing and/or relating to
the Trust, the Series, or the Variable Contracts.
o Printing and mailing of Trust prospectuses, statements of additional
information, any supplements thereto and shareholder reports for
prospective Variable Contract owners.
o Holding or participating in seminars and sales meetings designed to
promote the distribution of shares of the Trust, the Series or the
Variable Contracts, including materials intended either for
broker-dealer only use or for retail use.
o Providing information about the Trust, its Series or the Variable
Contracts, or mutual funds or variable contracts in general, to
registered representatives of broker-dealers.
o Providing assistance to broker-dealers that are conducting due
diligence on the Trust or its Series or the Variable Contracts.
o Payment of marketing fees or allowances requested by broker-dealers
who sell Variable Contracts.
o Obtaining information and providing explanations to Variable Contract
owners regarding Series investment options and policies and other
information about the Trust and its Series, including the performance
of the Series.
o Training sales personnel regarding sales of Variable Contracts.
o Personal service and/or maintenance of the Variable Contract owner
accounts.
o Financing any other activity that is intended to result in the sale
of Trust shares or the Variable Contracts.
The Plan permits the Brokerage Payments and Credits generated by securities
transactions from one series of the Trust to inure to the benefit of other
Series as well. The Plan is not expected to increase the brokerage costs of the
Trust. However, the staff of the Securities and Exchange Commission has taken
the position that amounts received by the Distributor or an affiliate as an
introducing broker-dealer under the Plan should be reflected in the expenses of
the Series of the Trust. Therefore, the table below estimates what each Series'
distribution fee and its resulting total and net expenses, will be deemed to be
as a result of the implementation of the Plan.
<TABLE>
<CAPTION>
----------------------------- ------------------- -------------------- ----------------- ------------------
Management & Estimated Total Annual
Administrative Distribution Other Fund Operational
Fees (12b-1) Fees Expenses Expenses
----------------------------- ------------------- -------------------- ----------------- ------------------
<S> <C> <C> <C> <C>
JNL/Alger Growth Series 1.07% 0.02% 0% 1.09%
JNL/Alliance Growth Series 0.88% 0.02% 0% 0.90%
JNL/Eagle Core Equity Series 0.99% 0.04% 0% 1.03%
JNL/Eagle SmallCap Equity
Series 1.05% 0.02% 0% 1.07%
JNL/J.P. Morgan Enhanced
S&P 500 Stock Index
Series 0.90% 0.01% 0% 0.91%
JNL/J.P. Morgan
International &
Emerging Markets Series 1.08% 0.03% 0% 1.11%
JNL/Janus Aggressive Growth
Series 1.01% 0.01% 0% 1.02%
JNL/Janus Balanced Series 1.05% 0.03% 0% 1.08%
JNL/Janus Capital Growth
Series 1.03% 0.01% 0% 1.04%
JNL/Janus Global Equities
Series 1.06% 0.02% 0% 1.08%
JNL/Janus Growth & Income
Series 1.03% 0.04% 0% 1.07%
JNL/PIMCO Total Return Bond
Series 0.80% <0.01% 0% 0.80%
JNL/Putnam Growth Series 0.97% 0.01% 0% 0.98%
JNL/Putnam International
Equity Series 1.18% 0.05% 0% 1.23%
JNL/Putnam Value Equity
Series 0.98% 0.02% 0% 1.00%
JNL/Putnam Midcap Growth
Series 1.05% 0.08% 0% 1.13%
Lazard/JNL Mid Cap Value
Series 1.08% 0.05% 0% 1.13%
Lazard/JNL Small Cap Value
Series 1.15% 0.03% 0% 1.18%
PPM America/JNL Balanced
Series 0.82% 0.01% 0% 0.83%
PPM America/JNL High Yield
Bond Series 0.82% <0.01% 0% 0.82%
Salomon Brothers/JNL
Balanced Series 0.90% 0.01% 0% 0.91%
Salomon Brothers/JNL Global
Bond Series 0.95% <0.01% 0% 0.95%
Salomon Brothers/JNL High
Yield Bond Series 0.90% <0.01% 0% 0.90%
Salomon Brothers/JNL U.S.
Government & Quality
Bond Series 0.80% <0.01% 0% 0.80%
T. Rowe Price/JNL
Established Growth
Series 0.93% 0.02% 0% 0.95%
T. Rowe Price/JNL Mid-Cap
Growth Series 1.03% <0.01% 0% 1.03%
T. Rowe Price/JNL Value
Series 1.00% 0.12% 0% 1.12%
----------------------------- ------------------- -------------------- ----------------- ------------------
</TABLE>
The prospectus is also being amended by inserting the following new
paragraph at the end of the section of the prospectus entitled "Sub-advisory
Arrangements":
The Investment Adviser and the Trust have filed an application to
obtain an exemption from the Securities and Exchange Commission for a
multi-manager structure that allows the Investment Adviser to hire, replace or
terminate sub-advisers without the approval of shareholders. The order would
also allow the Investment Adviser to revise a sub-advisory agreement with the
approval of the Board of Trustees, but without shareholder approval. If a new
sub-adviser is hired, shareholders will receive information about the new
sub-adviser within 90 days of the change. The order would allow the Series to
operate more efficiently and with greater flexibility. The Investment Adviser
provides the following oversight and evaluation services to the Series:
o performing initial due diligence on prospective sub-advisers for the Series
o monitoring the performance of sub-advisers o communicating performance
expectations to the sub-advisers
o ultimately recommending to the Board of Trustees whether a sub-adviser's
contract should be renewed, modified or terminated.
The Investment Adviser does not expect to recommend frequent changes of
sub-advisers. Although the Investment Adviser will monitor the performance of
the sub-advisers, there is no certainty that any sub-adviser or Series will
obtain favorable results at any given time.
This Supplement is dated November 9, 2000.
