JNL/PIMCO Real Return Fund Class A (0P00005U1D)

Overview

The specified fund is a dynamic investment vehicle that primarily focuses on asset preservation and growth through investments in inflation-indexed bonds. It operates with a significant emphasis on both U.S. and non-U.S. government securities, agencies, instrumentalities, and corporate bonds. The fund employs a strategy to safeguard against inflation impacts, ensuring investors' capital is allocated towards vehicles that adjust their payouts based on inflation rates. With the flexibility to invest in high-yield securities and foreign currencies, the fund offers a diversified approach to bond investing. This strategic diversity allows for the mitigation of risks associated with inflation fluctuations, currency devaluations, and market volatility, making it an attractive option for those looking to preserve and grow their investments in real terms.

Products and Services

• Inflation-Indexed Bonds

The fund dedicates at least 80% of its assets towards inflation-indexed bonds, which are bonds that have their principal or interest payments adjusted according to inflation rates. This type of investment is designed to protect investors against the eroding value of their capital due to rising inflation. These bonds are primarily issued by the U.S. Treasury, non-U.S. governments, and their agencies, providing a stable and secure investment option with built-in inflation protection.

• High Yield Securities

Up to 10% of the fund's total assets may be allocated towards high yield securities. Also known as "junk bonds," these securities offer higher interest rates than investment-grade bonds due to the higher risk of default. This segment of the fund's portfolio aims to enhance overall returns through risk-managed exposure to high-income opportunities. It's a calculated strategy to boost potential income while maintaining a diversified and balanced portfolio.

• Foreign Currency Denominated Securities

The fund has the provision to invest up to 30% of its total assets in securities that are denominated in foreign currencies. This exposure allows the fund to diversify its investment base beyond the U.S. Dollar, tapping into potential gains from foreign currency appreciation and international bond markets. Additionally, the fund has the flexibility to exceed this limit with U.S. dollar-denominated securities of foreign issuers, further broadening its investment horizon and potential for returns.