JNL/Morningstar Wide Moat Index (0P0001D9R1)

Overview

The fund described focuses on investing a minimum of 80% of its assets in securities that are included within a specific index. This index is notable for being equal-weighted and aims to offer investors exposure to companies that are distinguished by “Wide” Morningstar Economic Moat Ratings. These ratings suggest that the companies have sustainable competitive advantages. Furthermore, the fund targets companies that are currently trading at the most favorable market price relative to their fair value, suggesting a strategy of seeking undervalued stocks with strong economic moats for investment.

Products and Services

The fund's investment approach can be delineated into several key products and services it offers to investors:

• Securities Investment - The core service of investing at least 80% of the fund’s assets into securities listed within a targeted index, focusing on ensuring a significant portion of the fund's resources is always allocated toward potentially value-generating companies.
• Equal-Weighted Index Exposure - Rather than following the more common market capitalization-weighted indices, the fund opts for an equal-weighted index strategy. This aims to provide a more balanced investment across companies, regardless of their market cap, potentially reducing risk and enhancing returns.
• Investment in Companies with “Wide” Morningstar Economic Moat Ratings - The fund specifically targets companies that are assessed to have a “Wide” Economic Moat by Morningstar. This rating indicates that the companies possess a long-term, sustainable competitive advantage, an attribute that can lead to superior returns.
• Value Investment Strategy - By focusing on companies that are trading at the lowest current market price/fair value ratios, the fund employs a value investment strategy. This seeks to capitalize on the difference between a company’s stock price and its intrinsic value, ideally buying shares at a discount.