Investment due diligence

The PROOF process

Jackson National Asset Management’s comprehensive due diligence process for identifying and monitoring investment managers for the Jackson variable annuity platform is guided by five key criteria. JNAM seeks best-in-class third-party sub-advisers for the JNL Funds capable of delivering consistent and repeatable results in line with their mandates.

Performance

We thoroughly analyze the sources of a manager’s risk and performance via a proprietary Performance Rating

  • Based on risk-adjusted return metrics to better understand the drivers of performance
  • Use up to 10 years of past performance or since strategy inception
  • Not the primary factor in the process, as we look to identify sustainable manager competitive advantages elsewhere
Repeatability

We look for systematic elements that identify an investment manager's competitive advantage:

  • Culture of excellence
  • Unique process able to exploit inefficiencies in the market
  • An experienced team that has developed a research edge
Operations

We review the integrity of each investment manager's operational and reporting functions:

  • Full due diligence on operational capabilities
  • Ensure strong processes in place for Trading/Reporting, Compliance, and Cyber Security
  • Annual on-site visits by JNAM Legal, Compliance, and Operations
Oversight

The ongoing monitoring of our Portfolio Management Team

  • Quarterly update calls on every strategy
  • Performance and risk analysis
  • On-site visits by JNAM Investment Management with Portfolio Managers and Analysts
Fit

We ensure compatibility with principles of diversification and Investment Freedom

  • Compatibility: Strategies appropriate for investment within a variable annuity
  • Diversification: Multiple strategies by style or asset class for building diversified portfolios
  • Investment Freedom: Access to all areas of the market

New manager search process

Whenever JNAM launches a new JNL Fund, or replaces a manager on a current Fund, there is a formal search procedure built around the PROOF Process that involves idea generation, initial screening, and final approval by the Jackson Product Committee and JNL Funds Board of Trustees. 

Idea generation

Identify need

JNAM knowledge of manager universe

"Hidden Gem" opportunities

Screening

Morningstar & eVestment Alliance Databases

Proprietary Performance Ranking Tool

Fees, Capacity, and Seeding Requirements

Due Diligence

PROOF Process

Recommendation

Present to Jackson Product Committee and JNL Funds Board of Trustees for approval

Trust demands a strong foundation 

The PROOF process is played out in concrete, day-to-day actions—such as the 600-plus due diligence meetings with existing and potential investment partners JNAM conducts each year. Portfolio performance, portfolio manager governance, regulatory compliance, and financial stability are evaluated regularly. Any manager who does not meet expectations will be replaced. 

Meet the JNAM Portfolio Management team

Bill Harding, CFA

Senior Vice President,
Portfolio Manager,
23 years of experience | 7 years with JNAM

Sean Hynes, CFA, CAIA

Assistant Vice President,
Portfolio Manager,
16 years of experience | 7 years with JNAM

Mark Pliska, CFA

Assistant Vice President,
Portfolio Manager,
13 years of experience | 8 years with JNAM

*Jackson National Asset Management, LLC® (JNAM) is an investment adviser registered with the U.S. Securities and Exchange Commission and is the investment adviser to the “Funds,” which are investment companies (subaccounts) that underlie the Jackson variable products.  Nothing contained herein is investment advice nor a solicitation for investment advisory services. JNAM is an affiliate of Jackson National Life Distributors LLC and Jackson National Life Insurance Company.

Before investing, investors should carefully consider the investment objectives, risks, charges, and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your financial professional or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money. 

This material was prepared to support the promotion and marketing of Jackson annuities. Jackson, its distributors, and their respective financial professionals do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Tax laws are complicated and subject to change. Tax results may depend on each taxpayer's individual set of facts and circumstances. You should rely on your own independent advisor as to any tax, accounting or legal statements made herein.

Annuities are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York by Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. These products have limitations and restrictions. Contact Jackson for more information.

Jackson® is the marketing name for Jackson National Life Insurance Company® and Jackson National Life Insurance Company of New York®.