Investment Due Diligence
The PROOF Process
Jackson National Asset Management, LLC® (JNAM) has a comprehensive due diligence process for identifying and monitoring investment managers for the Jackson variable annuity platform that is guided by five key criteria. JNAM seeks best-in-class third-party subadvisers 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
- 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
- Performace 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
SVP, Chief Investment Officer, Portfolio Manager
23 years of experience | 7 years with JNAM
Sean Hynes, CFA, CAIA
AVP, Portfolio Manager
16 years experience | 7 years with JNAM
Mark Pliska, CFA
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.
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.
This material was prepared to support the promotion and marketing of Jackson variable 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. Please consult your own independent advisor as to any tax, accounting or legal statements made herein.
Jackson® is the marketing name for Jackson National Life Insurance Company® and Jackson National Life Insurance Company of New York®.