JNL/Mellon Capital MSCI KLD 400 Social Index Fund Class I (0P0001AMLI)

Overview

This fund is actively managed with the objective of investing primarily in large- and mid-capitalization companies. The unique aspect of this fund lies in its adherence to integrating Environmental, Social, and Governance (ESG) considerations into its investment process. By focusing on securities included in a specific index, the fund seeks to maintain a portfolio composed of companies that demonstrate lower ESG risks compared to their sector peers. This approach not only aims to mitigate potential risks associated with poor ESG practices but also targets to capture the growth of companies leading in sustainable business practices. The fund's strategy of investing at least 80% of its assets in the securities of the index ensures a focused yet diversified investment approach, oriented towards sustainable investing.

Products and Services

• ESG-Focused Index Investments

  The fund's primary product involves investing in securities that are part of an index known for including companies with strong ESG profiles. These investments target large- and mid-capitalization firms that are evaluated to be best-in-class within their respective sectors in terms of managing ESG risks. The objective is to provide investors with exposure to companies that are not only market leaders but also demonstrate a commitment to managing environmental, social, and governance issues effectively.

• Best-in-Class Stock Selection Process

  As part of its investment strategy, the fund employs a rigorous stock selection process. This process is designed to identify and invest in companies that exhibit the highest ESG standards relative to their sector peers. By prioritizing investments in these companies, the fund aims to reduce the overall ESG risk of its portfolio while targeting sectors and companies that are believed to offer sustainable growth potential. The ultimate goal is to invest in companies that are not just performing well currently but are also positioned to sustain their performance in the long run through responsible business practices.

• Targeted Coverage Approach

  The investment approach includes targeting coverage of 50% of the parent index by float-adjusted market capitalization. This structured approach allows the fund to maintain a significant focus on ESG leadership within the covered market segments. By doing so, the strategy ensures a balanced and focused exposure to sustainable investments. This allows investors to benefit from a portfolio that is not only diversified across large and mid-cap companies but also aligned with higher ESG standards, potentially leading to better risk-adjusted returns over the long term.