JNL/PPM America Floating Rate Income Fund Class I (0P0001AML7)

Overview

The described fund is primarily focused on investment in income-producing floating rate instruments, including an array of financial products such as floating rate loans, notes, and other debt securities. This investment strategy emphasizes adjusting interest rates, aiming to mitigate the potential risks associated with fixed-rate investments in changing economic environments. By dedicating at least 80% of its assets towards floating rate instruments and allowing for up to 20% in cash, non-floating rate debt securities, and equity securities, the fund seeks to provide investors with a versatile and potentially resilient investment option. This approach is designed to offer a balance between income generation and capital preservation, catering to investors looking for steady returns with a measure of protection against interest rate fluctuations.

Products and Services

• Floating Rate Loans

  These are forms of debt that offer interest payments which adjust at regular intervals based on the prevailing market rates. This product targets investors seeking exposure to the corporate debt market with a mechanism in place to buffer against rising interest rates.

• Floating Rate Notes

  A type of bond that features variable coupon payments linked to a reference interest rate. Floating rate notes are designed to reduce the price volatility associated with fixed-rate bonds when interest rates fluctuate, appealing to more risk-averse income-seekers.

• Other Floating Rate Debt Securities

  This category encompasses a broad range of debt instruments not strictly classified as loans or notes but still offering variable interest rates. It includes securities that can adapt to changing rates, providing a diverse investment avenue within the floating rate sphere.

• Structured Products

  Investment strategies that combine traditional securities, such as bonds, with derivatives to tailor the risk-return profile according to investor needs. These products can offer customized exposure to floating rates among other features, catering to those with specific investment goals.

• Repurchase Agreements

  Short-term borrowing for dealers in government securities. In the context of this fund, repurchase agreements are used as a mechanism to gain exposure to floating rate returns or to provide liquidity with an aim to manage the fund’s leverage effectively.

• Cash and Non-Floating Rate Debt Securities

  Up to 20% of the fund’s assets may be allocated to cash holdings or non-floating rate debt securities, including those that are lower-rated. This component of the fund’s investments allows for liquidity management and diversification of the portfolio.

• Equity Securities

  Although primarily focused on debt instruments, the fund may also invest a portion of its assets in equity securities. This offers the potential for capital growth and income through dividends, thereby adding an additional dimension to the fund's investment strategy.