JNL/Mellon Capital Energy Sector Fund Class I (0P00003EHS)

Overview

The fund is an investment entity that dedicates a major portion of its assets towards stocks in the oil and gas sector. Specifically, it commits at least 80% of its total assets, which include net assets plus any borrowed funds purposed for investment, into equities that are part of a designated index. This index is composed of companies within the United States involved in the production or refining of oil and gas, as well as businesses providing oil field services, equipment, and pipeline operations. It aims to mirror the market capitalization weighting of these companies within the said index to gauge the performance of the U.S. oil and gas sector. The fund is categorized as non-diversified, meaning it concentrates its investments more narrowly than a diversified fund might.

Products and Services

• Equity Investments in Oil and Gas Sector

  The primary service offering of the fund revolves around equity investments specifically targeted at the oil and gas sector. This encompasses investments in companies engaged in the extraction and refining of oil and gas, alongside those providing essential services and equipment necessary for the operation of this industry. By investing in such companies according to their market capitalization within a relevant index, the fund seeks to leverage the growth and profitability of the oil and gas sector for its investors.

• Market Capitalization Weighted Portfolio

  Adopting a market capitalization weighted approach to its portfolio, the fund aligns its holdings with those of the index it aims to replicate. This method ensures that investments are proportionally distributed according to the market size of the constituent companies. Such a strategy is anticipated to reflect the performance of the oil and gas industry accurately and thereby aim for potential returns that are in sync with the sector’s prevailing market dynamics.

• Non-Diversified Investment Strategy

  Unlike diversified funds that spread their investments across a wide array of sectors or industries to mitigate risk, this fund adopts a non-diversified strategy. This approach puts a significant portion of its assets into the stocks of companies within the oil and gas index it tracks. While this could lead to higher volatility and exposure to sector-specific risks, it also offers the potential for substantial returns from a concentrated investment in an industry that the fund managers believe in.