Investment Lineup. Equity Investments JNL/American Funds Growth-Income. Equity Investments Specialty JNL/Mellon Capital European 30.

Transcription

1

2

3

4 Investment Lineup Equity Investments JNL /American Funds Global Growth JNL/American Funds Growth JNL/American Funds Growth-Income JNL/The Boston Company Equity Income JNL/DFA U.S. Core Equity JNL/DFA U.S. Micro Cap JNL/Epoch Global Shareholder Yield JNL/Franklin Templeton Income JNL/Franklin Templeton Small Cap Value JNL/Harris Oakmark Global Equity JNL/Invesco Small Cap Growth JNL/JPMorgan MidCap Growth JNL/The London Company Focused U.S. Equity JNL/Mellon Capital S&P 400 MidCap Index JNL/Mellon Capital S&P 500 Index JNL/Mellon Capital Small Cap Index JNL/PPM America Mid Cap Value JNL/T. Rowe Price Established Growth JNL/T. Rowe Price Value JNL/WMC Balanced International JNL/American Funds International JNL/Eastspring Investments Asia ex-japan JNL/Eastspring Investments China-India JNL/Franklin Templeton Frontier Markets JNL/Franklin Templeton International Small Cap Growth JNL/Invesco International Growth JNL/Lazard Emerging Markets JNL/Lazard International Strategic Equity JNL/Mellon Capital Emerging Markets Index JNL/Mellon Capital International Index JNL/Oppenheimer Emerging Markets Innovator JNL/WCM Focused International Equity Morningstar * Category Name World Stock Large Growth Large Blend Large Blend Small Blend World Stock Conservative Allocation Small Value TBD Small Growth Mid-Cap Growth Large Blend Mid-Cap Blend Large Blend Small Blend Mid-Cap Value Large Growth Moderate Allocation Foreign Large Blend Pacific/Asia ex-japan Stock Miscellaneous Region Diversified Emerging Markets Foreign Small/Mid Blend Foreign Large Growth Diversified Emerging Markets Foreign Large Blend Diversified Emerging Markets Foreign Large Blend TBD Foreign Large Growth Equity Investments Specialty JNL/Mellon Capital European 30 JNL/Mellon Capital Index 5 JNL/Mellon Capital Nasdaq 25 JNL/Mellon Capital Pacific Rim 30 JNL/Mellon Capital S&P 24 JNL/Mellon Capital S&P SMid 60 JNL/S&P 4 JNL/S&P Competitive Advantage JNL/S&P Dividend Income & Growth JNL/S&P International 5 JNL/S&P Intrinsic Value JNL/S&P Mid 3 JNL/S&P Total Yield Sector JNL/Mellon Capital Communications Sector JNL/Mellon Capital Consumer Brands Sector JNL/Mellon Capital Financial Sector JNL/Mellon Capital Healthcare Sector JNL/Mellon Capital Oil & Gas Sector JNL/Mellon Capital Technology Sector JNL/Mellon Capital Utilities Sector Fixed Income JNL/DoubleLine Total Return Intermediate-Term Bond JNL/Franklin Templeton Global Multisector Bond World Bond JNL/Goldman Sachs Emerging Markets Debt Emerging Markets Bond JNL/JPMorgan U.S. Government & Quality Bond Intermediate Government JNL/Mellon Capital Bond Index Intermediate-Term Bond JNL/PIMCO Credit Income Intermediate-Term Bond JNL/PIMCO Real Return Inflation-Protected Bond JNL/PIMCO Total Return Bond Intermediate-Term Bond JNL/PPM America Floating Rate Income Bank Loan JNL/PPM America High Yield Bond High Yield Bond JNL/PPM America Total Return Intermediate-Term Bond JNL/Scout Unconstrained Bond Nontraditional Bond JNL/T. Rowe Price Short-Term Bond Short-Term Bond JNL/WMC Money Market Money Market-Taxable Europe Stock Aggressive Allocation Large Growth Diversified Pacific/Asia Large Growth Small Value Large Growth Foreign Large Blend Mid-Cap Blend Communications Consumer Cyclical Financial Health Equity Energy Technology Utilities Investments in the JNL/WMC Money Market are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the portfolio seeks to preserve the value of your investment, it is possible to lose money by investing in the portfolio. * 2015 Morningstar, Inc. All rights reserved. Morningstar Category Names as of 1/31/2015. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. This subaccount is not taxable within the structure of a variable annuity. Alternative Assets JNL/BlackRock Commodity Securities Strategy JNL/Brookfield Global Infrastructure and MLP JNL/Franklin Templeton Natural Resources JNL/Invesco Global Real Estate JNL/Neuberger Berman Risk Balanced Commodity Strategy JNL/Red Rocks Listed Private Equity JNL/Van Eck International Gold Alternative Strategies JNL/AQR Managed Futures Strategy JNL/AQR Risk Parity JNL/BlackRock Global Long Short Credit JNL/Boston Partners Global Long Short Equity JNL/Eaton Vance Global Macro Absolute Return Advantage JNL/FAMCO Flex Core Covered Call JNL/Goldman Sachs U.S. Equity Flex JNL Multi-Manager Alternative JNL/Neuberger Berman Currency JNL/Nicholas Convertible Arbitrage JNL/PPM America Long Short Credit JNL/Westchester Capital Event Driven Tactically Managed Strategies JNL/BlackRock Global Allocation JNL/Ivy Asset Strategy JNL Tactical ETF Conservative JNL Tactical ETF Moderate JNL Tactical ETF Growth JNL/T. Rowe Price Capital Appreciation Risk Management Strategies JNL/AllianceBernstein Dynamic Asset Allocation JNL/MMRS Conservative JNL/MMRS Moderate JNL/MMRS Growth Commodities Broad Basket World Stock Natural Resources Global Real Estate Commodities Broad Basket Miscellaneous Sector Equity Precious Metals Managed Futures Tactical Allocation Nontraditional Bond Long/Short Equity Nontraditional Bond Large Blend Long/Short Equity TBD Multicurrency Market Neutral Nontraditional Bond TBD World Allocation World Allocation Conservative Allocation Moderate Allocation Aggressive Allocation Moderate Allocation World Allocation Conservative Allocation Moderate Allocation Aggressive Allocation 5 6

5

6

7

8

9 Primary Risks Our Equity, Fixed Income, Alternative Assets, and Alternative Strategies include exposure to: Commodity Commodities investments and/or commodity-linked derivative instruments, especially if leveraged, may entail greater volatility from a variety of causes than traditional securities. Equity The price of equity or equity-related securities will fluctuate and can decline and reduce the value of a portfolio investing in these securities. Fixed income Fixed income prices respond to changing economic environments, including interest rate changes and credit risk perceptions of individual issuers, which can negatively affect the price and income level. Floating Loan investments involve credit risk, interest rate risk, liquidity risk, and risk of being a lender. Forward and futures contract Successful use of futures and forwards is dependent upon the subadvisors skill and experience with those instruments and include risks such as imperfect correlation, potentially unlimited losses, inability to predict movements or direction, counterparty default, and margin requirements resulting in a disadvantageous sale. Infrastructure Infrastructure companies securities are more susceptible to adverse economic or regulatory occurrences affecting their industries, including capital construction interest rate, high leverage, regulatory costs, surplus capacity, increased competition, reasonable fuel prices, energy conservation policies, service interruption, tariffs and taxes, innovations in technology, market demand, terrorist acts, and environmental damage. Merger Arbitrage Merger arbitrage strategies seek to exploit the difference in market prices of publicly traded equities at the announcement and throughout the process of corporate merger and acquisition events. Real Estate This investment may be closely linked to the performance of the real estate markets and may rise and fall more than the value of shares of a fund invested in a broader range of companies. Short Sales A short sale may be affected by selling a security that the fund does not own. If the price of the security sold short increases, the fund would incur a potentially unlimited loss; conversely, if the price declines, the fund will realize a gain. TIPS The value of Treasury inflation-protected securities (TIPS) generally fluctuates in response to changes in real interest rates, which are, in turn, tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increased at a faster rate than inflation, then real interest rates might rise, leading to a decrease in the value of inflation-protected securities. Our Guidance Portfolios, Risk Management, and Tactically Managed Strategies include exposure to: Allocation/underlying Fund Performance depends on the changes in market and economic conditions in the selection and percentages of allocations among underlying funds. This risk applies to all JNAM Guidance, JNL/MMRS, and JNL Tactical ETF Strategy portfolios. Bonds Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities may be subject to greater price fluctuations than shorter. Bonds and debt securities are subject to credit risk including the deterioration of credit strength or failure to make a timely payment resulting in default. This risk applies to JNAM Guidance Interest Rate Opportunities, and JNL/T. Rowe Price Capital Appreciation. Call During a period of falling interest rates, the issuer may redeem a security by repaying it early, which may reduce the fund s income if the proceeds are reinvested at lower interest rates. This risk applies to JNL/BlackRock Global Allocation. Commodities Regulatory and Tax The U.S. Commodity Futures Trading Commission (the CFTC ) and the exchanges are authorized to take extraordinary actions in the event of a market emergency, including the retroactive implementation of speculative position limits or higher margin requirements, establishment of daily limits, and the suspension of trading, which could adversely affect the fund. Future regulatory developments may impact the fund s ability to invest in commodity-linked derivatives. This risk applies to JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation and JNL/Ivy Asset Strategy. Commodity Commodities investments and/or commodity-linked derivative instruments, especially if leveraged, may entail greater volatility from a variety of causes than traditional securities. This risk applies to all JNAM Guidance portfolios except Equity 100 and Fixed Income 100. It also applies to JNL/AllianceBernstein Dynamic Asset Allocation Strategy, JNL/BlackRock Global Allocation and JNL/Ivy Asset Strategy. Commodity-linked Derivatives The value of commodity-linked derivatives will fluctuate based on changes in the underlying commodity or related index and may entail greater volatility from causes, including drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments. The fund may also be subject to counterparty risk due to the limited number of counterparties. This risk applies to JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation and JNL/Ivy Asset Strategy. Commodity-linked Notes Commodity-linked notes involve substantial risks, including commodity risk, general derivatives risk, loss of interest and principal, lack of secondary market, and greater volatility that do not affect traditional securities. This risk applies to JNL/BlackRock Global Allocation and JNL/Ivy Asset Strategy. Convertible Securities Convertible securities have both debt and equity characteristics. Equities may have greater potential growth, but also higher volatility. The value of the convertible and debt securities may fall when interest rates rise. Longer duration securities may be more volatile and sensitive to interest rate changes than the underlying common stock. This risk applies to JNAM Guidance Alt 100, JNL/BlackRock Global Allocation and JNL/T. Rowe Price Capital Appreciation. Corporate Loan Commercial banks and other institutions make corporate loans to companies that need capital to grow or restructure and generally pay interest at rates that change in response to changes to the London Interbank Offered Rate ( LIBOR ) or the prime rates of U.S. banks. The market for corporate loans may be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods. This risk applies to JNL/ BlackRock Global Allocation and JNL/T. Rowe Price Capital Appreciation. Counterparty and Settlement Trading options, futures contracts and other derivative financial instruments, and some over-the-counter securities entail credit and settlement risk on the counterparties. This risk applies to all JNAM Guidance portfolios except JNL Alt 65. It also applies to all JNL Tactical ETF Strategy portfolios. Credit This portfolio could lose money if the issuer or guarantor of a fixed-income security, or the counterparty to a derivatives contract, repurchase agreement, or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. This risk applies to all JNAM Guidance portfolios except Equity 100. It also applies to all JNL/MMRS portfolios, JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation and JNL/T. Rowe Price Capital Appreciation. Currency The portfolio s net asset value could decline as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. Certain countries may impose restrictions that block principal and interest payments to investors outside the country. This risk applies to all JNAM Guidance portfolios except JNL Alt 65. It also applies to JNL/AllianceBernstein Dynamic Asset Allocation. Custody The fund invests in securities markets that are less developed than the U.S., which may expose the fund to the process of clearing and settling trades, the holding of securities by local banks, agents, and depositories risks. The less developed a country s securities market is, the greater the likelihood of custody problems. This risk applies to JNL/BlackRock Global Allocation. Derivatives This portfolio invests in derivative instruments such as swaps, options, futures contracts, forward currency contracts, indexed and assetbacked securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange-traded funds that involve risks including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested. This risk applies to all JNAM Guidance portfolios, JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation, JNL/Ivy Asset Strategy and JNL Tactical ETF Strategy portfolios. Emerging Markets Investing in emerging markets may involve greater risks than investing in developed countries, including the possibility of industry concentration, nationalization, taxes and transaction costs, lower trading volumes, and less liquid securities, resulting in higher volatility. This risk applies to all JNAM Guidance portfolios except JNL Alt 65. It also applies to JNL/MMRS, JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation, and JNL/Ivy Asset Strategy. Equity The price of equity or equity-related securities will fluctuate and can decline and reduce the value of a portfolio investing in these securities. This risk applies to all JNAM Guidance portfolios except Interest Rate Opportunities. It also applies to JNL/MMRS portfolios, JNL/BlackRock Global Allocation and JNL/T. Rowe Price Capital Appreciation. Exchange-traded Funds An exchange-traded fund ( ETF ) may fail to accurately track the market segment or index it is meant to track or trade at a discount to its net asset value NAV." Shareholders of the fund will bear their proportionate share of the ETF fees in addition to their fund fees. This risk applies to JNL/AllianceBernstein Dynamic Asset Allocation and JNL Tactical ETF Strategy portfolios. Extension When interest rates rise, certain obligations will be paid off by the obligor more slowly than anticipated, causing the value of these securities to fall. Rising interest rates tend to extend the duration of securities, making them more sensitive to interest rate changes and volatile. Longer-term securities generally change more in response to interest rates than shorter-term securities. This risk applies to JNL/BlackRock Global Allocation. Fixed Income Fixed income prices respond to changing economic environments, including interest rate changes and credit risk perceptions of individual issuers, which can negatively affect the price and income level. This risk applies to all JNAM Guidance portfolios except Equity 100. It also applies to JNL/MMRS and JNL/BlackRock Global Allocation. Foreign Regulatory The advisor is an indirect wholly-owned subsidiary of Prudential plc, a publicly traded company incorporated in the United Kingdom and is not affiliated in any manner with Prudential Financial Inc., a company whose principal place of business is in the United States of America. Through its ownership structure, the advisor has a number of global financial industry affiliated entities, and as a result, may be prohibited or limited in effecting transactions in certain securities which may increase expenses and limit performance. This risk applies to all JNAM Guidance portfolios, all JNL/MMRS portfolios, JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation, JNL/T. Rowe Price Capital Appreciation, JNL/Ivy Asset Strategy, and all JNL Tactical ETF Strategy portfolios. Foreign Securities Investments in foreign securities are subject to adverse fluctuations in foreign currency values, political, less publicly available information, social and economic developments, and possible imposition of foreign withholding taxes on income payable on the securities. They may be more volatile and less liquid than U.S. markets. This risk applies to all JNAM Guidance, all JNL/MMRS portfolios, JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation, JNL/T. Rowe Price Capital Appreciation, and JNL/Ivy Asset Strategy. Forward and Futures Contract Successful use of futures and forwards is dependent upon the subadvisors' skill and experience with those instruments and include risks such as imperfect correlation, potentially unlimited losses, inability to predict movements or direction, counterparty default, and margin requirements resulting in a disadvantageous sale. This risk applies to JNL/BlackRock Global Allocation and JNL/Ivy Asset Strategy. Forward Foreign Currency Exchange Contracts Forward foreign currency exchange contracts allow the fund to establish a fixed rate of exchange for a future point in time and do not eliminate fluctuations in the value of non-u.s. securities, which can minimize returns. This risk applies to JNL/ BlackRock Global Allocation and JNL/Ivy Asset Strategy. Continued > 15 16

10 Frontier Markets Frontier markets have smaller economies and less developed capital markets than developing markets, magnifying the risk of extreme price volatility and illiquidity, government ownership or control, trade barriers, exchange and currency controls, and other protectionist measures. Securities laws may be relatively new and unsettled. This risk applies to JNAM Guidance Risk-based series, JNAM Guidance - Alt 65, and Equity Income. Growth Growth stocks are generally priced based on future or anticipated earnings and susceptible to larger price swings and greater potential for loss than other types of stocks. This risk applies to all JNL/MMRS portfolios. High-yield Bonds A portfolio that invests in high-yield bonds, lower-rated bonds, and unrated securities are broadly referred to as junk bonds and are considered below investment-grade by national ratings agencies. They are subject to the increased risk of an issuer s inability to meet principal and interest payment obligations. This risk applies to JNL/BlackRock Global Allocation and JNL/T. Rowe Price Capital Appreciation. Illiquid Securities Illiquid securities may be difficult to quickly sell and may have to be sold below current value. This risk applies to JNL/T. Rowe Price Capital Appreciation. Interest Rate When interest rates increase, fixed-income securities generally will decline in value. Long-term fixed income securities normally have more price volatility than short-term fixed income securities. Some equity securities may also be sensitive to interest rate changes. This risk applies to JNL Alt 65, JNAM Guidance Conservative, Moderate and Growth, JNAM Guidance - Alt 100, Real Assets, Interest Rate Opportunities, JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation and JNL/T. Rowe Price Capital Appreciation. Leveraging Reverse repurchase agreements, loans of portfolio securities, dollar rolls, buy backs, futures, forwards, and the use of when-issued, delayed delivery or forward commitment transactions, and other derivatives, may give rise to a form of leverage, thereby amplifying the fund s gains and losses and making the fund more volatile. This risk applies to JNL/AllianceBernstein Dynamic Asset Allocation and JNL/T. Rowe Price Capital Appreciation. Liquidity Investments in securities that are difficult to purchase or sell (illiquid or thinly traded securities) may reduce returns if the fund is unable to sell the securities at advantageous times or prices. Illiquid securities may also be difficult to value. This risk applies to all JNAM Guidance portfolios, and JNL/AllianceBernstein Dynamic Asset Allocation. Loans Bank loans, corporate loans, loan participations and assignments involve credit risk, interest rate risk, liquidity risk, and the general risks of being a lender. This risk applies to JNL Alt 65, JNL/BlackRock Global Allocation, and JNL/T. Rowe Price Capital Appreciation. Managed Portfolio The manager s investment techniques could fail to achieve the fund s investment objective or negatively affect the fund s investment performance. This risk applies to all JNAM Guidance portfolios except JNL Alt 65. It also applies to all JNL/MMRS portfolios, JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation, JNL/T. Rowe Price Capital Appreciation, and JNL/Ivy Asset Strategy. Market As with any investment in securities, variable annuities are subject to investment risks, including the possible loss of principal. Investor units will fluctuate with the performance of the underlying investments, and there may be a gain or loss upon redemption. All forms of securities may decline in value due to factors affecting the securities markets generally such as real or perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or currency rates, or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. The values of securities may fall due to factors affecting a particular issuer, industry, or the securities market as a whole. This risk applies to all JNAM Guidance portfolios, all JNL/MMRS portfolios, JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation, JNL/T. Rowe Price Capital Appreciation, and JNL Tactical ETF Strategy portfolios. Micro-cap Micro-cap stocks involve substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses), their share prices tend to be more volatile, and their markets less liquid than companies with larger market capitalizations. This risk applies to all JNAM Guidance portfolios and all JNL Tactical ETF Strategy portfolios. Mid-cap The price of securities of mid-capitalization companies tends to fluctuate more widely and erratically than those of larger, more established companies. This risk applies to JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation, and JNL/T. Rowe Price Capital Appreciation. Nondiversification The fund is considered nondiversified and may invest in a limited number of issuers. With a smaller number of different issuers, there is more risk than holding a larger number of issuers, since any changes may cause greater fluctuation of total return and share price of a nondiversified portfolio. This risk applies to all JNAM Guidance portfolios, all JNL/MMRS portfolios, JNL/BlackRock Global Allocation, and all JNL Tactical ETF Strategy portfolios. Options Writing call options can reduce the risk of owning equity securities, but it limits the opportunity to profit from an increase in the market value of stocks. Unusual market conditions may reduce the effectiveness of the fund s options strategies and may not reduce the fund s volatility to the extent desired. This risk applies to JNL/T. Rowe Price Capital Appreciation. Precious Metals-related Securities Prices of precious metals and of precious metal related securities historically have been very volatile, which may adversely affect the financial condition of companies involved with precious metals. Inflation and changes in demand may affect the prices of precious metals and related securities. This risk applies to all JNAM Guidance portfolios except JNL Alt 65, Equity 100, Fixed Income 100, and Interest Rate Opportunities. Real Estate Investment This investment may be closely linked to the performance of the real estate markets and may rise and fall more than the value of shares of a fund invested in a broader range of companies. This risk applies to all JNAM Guidance portfolios except JNL Alt 65, Equity 100, Fixed Income 100, and Equity Income. It also applies to JNL/AllianceBernstein Dynamic Asset Allocation and JNL/BlackRock Global Allocation. Russian Investments A fund may invest a portion of its assets in securities issued by companies located in Russia. The Russian securities market is relatively new and subject to significant risks, including a lack of central oversight, fraud, or negligence. The fund intends to mitigate these risks to the extent possible but may not be able to do so. This risk applies to JNL/BlackRock Global Allocation. Short Sales A short sale may be affected by selling a security that the fund does not own. If the price of the security sold short increases, the fund would incur a potentially unlimited loss; conversely, if the price declines, the fund will realize a gain. This risk applies to JNAM Guidance Conservative, Moderate, Moderate Growth, Growth, and Maximum Growth. It also applies to JNAM Guidance Alt 100, and Interest Rate Opportunities. Small-cap Investing in smaller, newer companies generally involves greater risks than investing in larger, more established ones and are subject to more abrupt or erratic market movements than larger, more established companies or market averages. This risk applies to JNAM Guidance Equity 100, JNL/AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation and JNL/T. Rowe Price Capital Appreciation. Sovereign Debt These investments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity s debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. There is no legal process to collect all or part of the principal or interest due. This risk applies to JNAM Guidance Conservative, Moderate, Moderate Growth, Growth, and Maximum Growth. It also applies to JNAM Guidance Alt 100, Real Assets, Interest Rate Opportunities, and JNL/BlackRock Global Allocation. Structured Note A fund may invest in structured notes, linked to the performance of securities or commodities. Commodity linked notes provide long and/or short exposure to the investment returns of real assets (i.e., assets that have tangible properties such as oil, gold, and silver) without investing directly in physical commodities. The note's performance is determined by the price movement of the commodities underlying the note and subject to the credit risk of the issuing party. If the issuer of the note defaults, the fund may not be able to close out its investment without incurring losses. This risk applies to JNL/BlackRock Global Allocation. Subsidiary The subsidiary is not registered under the 1940 Act and not subject to all the investor protections of the 1940 Act. The fund wholly owns and controls the subsidiary making it unlikely that the subsidiary will take action contrary to the interests of the fund and its shareholders. Future regulatory developments may impact the fund s ability to operate as described in the prospectus and SAI. This risk applies to JNL/AllianceBernstein Dynamic Asset Allocation and JNL/BlackRock Global Allocation. Swaps Swap agreements have default risk with the counterparty and risk that the fund will not be able to meet its obligations to pay the other party to the agreement. This risk applies to all JNAM Guidance 100 series portfolios, JNL/BlackRock Global Allocation and JNL/Ivy Asset Strategy. Tax The fund restricts its investment in commodities and commodity-linked derivatives to 10% of gross income to qualify as a RIC under Subchapter M as detailed in the SAI. Future regulatory developments may impact the fund s ability to invest in commodity-linked derivatives. This risk applies to all JNL/ AllianceBernstein Dynamic Asset Allocation, JNL/BlackRock Global Allocation and JNL/Ivy Asset Strategy. TIPS and Inflation-linked Bonds The value of Treasury inflation-protected securities (TIPS) generally fluctuates in response to changes in real interest rates, which are, in turn, tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increased at a faster rate than inflation, then real interest rates might rise, leading to a decrease in the value of inflation-protected securities. This risk applies to JNAM Guidance Real Assets and Interest Rate Opportunities. Value Value stocks may not increase in price if other investors fail to recognize a company s value or the factors that are expected to increase the price of a security do not occur. This risk applies to JNL/T. Rowe Price Capital Appreciation

11