JNL/Goldman Sachs Core Plus Bond Fund Class I (0P00003EIY)

Overview

The fund is focused on investing primarily in a broad range of debt securities. It adheres to a strategy where, under normal circumstances, a significant majority of its assets—at least 80%—are allocated towards various types of debt instruments, including but not limited to, bonds, notes, bills, and other securities that represent an obligation to pay back a debt. Additionally, this includes investments through repurchase agreements related to these securities. The fund is designed to cater to investors looking for exposure in debt instruments, while also potentially seeking higher returns by allocating a portion of its assets—up to 20%—in lower-quality debt securities, commonly referred to as "high yield debt securities" or "junk bonds". These are deemed to carry higher credit risks but may offer higher yields compared to investment-grade securities, aiming to balance risk and reward within the fund's portfolio.

Products and Services

The fund's investment portfolio is centered around two main categories of financial products:

• Debt Securities: These form the core of the fund's investment focus. Debt securities include a wide range of interest-bearing or discounted securities such as bonds, debentures, notes, and bills. The fund invests in these securities with a primary objective of income generation and capital appreciation. Through these investments, the fund purchases a piece of the debt, providing the issuer with the capital needed for various purposes such as operational financing, expansion, or other financial needs. In return, the fund is entitled to regular interest payments until the maturity of the securities, at which point the principal amount is expected to be repaid.
• Repurchase Agreements: Repurchase agreements (repos) are short-term borrowing agreements. The fund uses these financial instruments as a means to invest in debt securities, allowing it to increase the liquidity of its holdings and potentially take advantage of short-term interest rate movements. In a typical repurchase agreement, the fund buys securities and agrees to sell them back at a specified date and price, thus earning interest. This instrument is particularly useful for managing cash flows and for short-term financing needs or opportunities within the fund's strategy.

Additionally, up to 20% of the fund's assets may be invested in lower-quality debt securities. These securities are typically issued by entities with lower credit ratings and carry a higher risk of default than investment-grade securities. However, they offer the potential for higher yields, contributing to the fund's objective of balancing risk and reward in its investment portfolio.