JNL/T. Rowe Price Short-Term Bond Fund Class I (0P00005U1A)

Overview

The fund is designed to offer investors exposure to a broad range of fixed-income securities with a focus on maintaining a short- to intermediate-term investment horizon. Its diversified portfolio encompasses a variety of debt instruments, including corporate, government, asset- and mortgage-backed securities, aiming to balance risk and return effectively. By investing in a mix of investment-grade securities and incorporating flexibility to invest in money market instruments and foreign securities, the fund targets resilience and income generation in various market conditions. It adheres to a disciplined investment approach, ensuring at least 80% of its assets are allocated in bonds, with a cap on the average effective maturity of its holdings to not more than three years, emphasizing its conservative risk profile and focus on capital preservation alongside income.

Products and Services

The fund's investment portfolio is characterized by a variety of products and services designed to meet its objectives of income generation, risk management, and capital preservation:

• Investment-Grade Corporate Bonds: These are bonds issued by corporations with a high credit rating, reflecting lower risk of default. Investing in these instruments helps the fund achieve steady income with an acceptable level of risk.

• Government Securities: Including bonds and notes issued by the U.S. government or its agencies, these securities are backed by the full faith and credit of the U.S., offering a safe haven and liquidity to the fund's portfolio.

• Asset- and Mortgage-Backed Securities: These securities are backed by pools of assets or mortgage loans, offering diverse exposure to real estate and credit markets. They contribute to the diversification and income potential of the fund.

• Money Market Securities: Investments in short-term, high-quality securities provide liquidity and safety of principal, serving as a management tool for the fund's cash positions.

• Bank Obligations: These include certificates of deposit and bank notes, often offering attractive returns relative to the risk, contributing to the fund's income and diversity.

• Collateralized Mortgage Obligations (CMOs): A type of mortgage-backed security, CMOs offer varying degrees of yield and risk depending on their structure, adding flexibility and opportunity to the fund's strategy.

• Foreign Securities: By investing in bonds issued outside the US, the fund gains exposure to global credit markets, increasing its diversification and potential for enhanced returns.