UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-08894

JNL Series Trust

(Exact name of registrant as specified in charter)

1 Corporate Way, Lansing, Michigan 48951

(Address of principal executive offices)

225 West Wacker Drive, Suite 1200, Chicago, Illinois 60606

(Mailing address)

Steven J. Fredricks

Jackson National Asset Management, LLC

225 West Wacker Drive, Suite 1200

Chicago, Illinois 60606

(Name and address of agent for service)

Registrant's telephone number, including area code: (517) 381-5500

Date of Fiscal Year End: December 31

Date of Reporting Period: December 31, 2009

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. §3507.

Item 1.  Report to Shareholders

ANNUAL REPORT

December 31, 2009

• JNL® Series Trust

• JNL Variable Fund LLC

This report is for the general information of qualified and non-qualified plan participants, as well as contract/policy owners of the PerspectiveSM, Perspective II®, Perspective AdvisorsSM, Perspective Advisors IISM, PerspectiveSM L Series, Perspective RewardsSM, CuriangardSM, Perspective AdvantageSM, Perspective Focus®, Perspective Investor VULSM, Ultimate Investor® VUL, Jackson AdvisorSM VUL, Defined Strategies®, Fifth Third Perspective, Retirement LatitudesSM, PerspectiveSM (New York), Perspective IISM (New York), Perspective Advisors IISM (New York), Perspective L SeriesSM (New York), CuriangardSM (New York), Perspective AdvisorsSM (New York), Perspective FocusSM (New York) and Perspective Investor VULSM (New York). Not all the portfolios are available in all of the products. JacksonSM is the marketing name for Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).

Issued by Jackson National Life Insurance Company®

1 Corporate Way, Lansing, MI 48951

BUSINESS REPLY MAIL

FIRST-CLASS MAIL   PERMIT NO. 600   LANSING, MI

POSTAGE WILL BE PAID BY ADDRESSEE

JACKSON NATIONAL LIFE PO BOX 24068

LANSING MI 48909-9979

President’s Letter to Shareholders

Dear Fellow Investor,

Enclosed is the annual report for the JNL Series Trust and JNL Variable Fund LLC for the year ended December 31, 2009, together with Management’s Discussion of Fund Performance for each of the Funds.

Most of the world’s countries, including the United States, entered 2009 with their economies in turmoil, and equity markets reacted accordingly.  Both the Dow Jones Industrial Average (“Dow”) and the S&P 500® Index fell 25% from the beginning of 2009 to touch a 12-year low in March 2009. In late 2008 and early 2009, the U.S. and other countries around the globe implemented unprecedented economic stimulus programs to mitigate the freefall, and these efforts eventually had a stabilizing impact on the world’s financial markets.  During the third quarter of 2009, the U.S. economy expanded at a 2.2% rate, marking the end of the longest U.S. recession since World War II, and there were indications that the gross domestic product continued to grow during the fourth quarter as well.

U.S. equity markets responded to the economic recovery by posting their highest annual gains since 2003.  From their March lows, the Dow rose 63% and the S&P 500 Index climbed 68% to end the year up 23% and 26%, respectively.  World markets rallied along with the U.S.; the MSCI World Index of 23 developed nations surged 73% from its low in March 2009 to post a 30% increase for the year, which also represented its biggest annual gain since 2003.

While market conditions certainly looked brighter at the end of 2009 than they did at the beginning of the year, the U.S. economy will continue to face many challenges in 2010.  The U.S. unemployment rate stood at 10% at the end of 2009 and is not expected to improve much during 2010.  The steep decline in U.S. housing prices greatly reduced the net worth of many Americans and, combined with continued high unemployment, is likely to constrain consumer spending.  As the U.S. Federal Reserve begins its planned exit from some economic stimulus programs, interest rates on mortgages could increase and lead to a further decline in home sales and prices.  Furthermore, U.S. small businesses are still experiencing tight credit conditions, which are impeding their growth, and economic experts are warning that the U.S. must take action to curb its national debt or risk sharply rising interest rates and a steep fall in the value of the dollar.  Despite these headwinds, most economists expect the U.S. economy to expand modestly during 2010, and the International Monetary Fund estimates that the world economy will grow by more than 3%.

Jackson National Life Insurance Company® and Jackson National Life Insurance Company of New York® (collectively, Jackson®) offer 92 investment options in their variable insurance products to help you and your representative design a portfolio that features a diversified mix of investments based on your goals.  During 2009, Jackson added two new total return funds — the JNL/Ivy Asset Strategy Fund and the JNL/Mellon Capital Management Global Alpha Fund — and four new institutional investment portfolios — the JNL Institutional Alt 20 Fund, the JNL Institutional Alt 35 Fund, the JNL Institutional Alt 50 Fund and the JNL Institutional Alt 65 Fund.

Recent events have undermined the confidence that Americans have in many of the country’s financial institutions.  With disciplined business practices and demonstrated financial stability, Jackson has earned the trust of its customers.  We thank you for your business and will continue to work hard to maintain your trust.

Mark D. Nerud

President and Chief Executive Officer

JNL Series Trust

JNL Variable Fund LLC

[Jackson National Asset Management, LLC Letterhead]

IMPORTANT NOTICE  REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS

Dear Client:

If you are a current member of a household with multiple variable products, and have not instructed Jackson otherwise, you currently receive only one copy of the following general documents: Prospectus, Annual and Semi-Annual Report, and other documents as permitted under applicable federal laws relating to Jackson’s variable products and their underlying investment options.

We will continue to send one such copy of these general documents unless and until we receive contrary instructions from you. This delivery policy does not apply to account statements, confirmation statements, or other documents reflecting transaction activity, which you will continue to receive individually.

You may choose to receive a separate copy of these general documents at any time by contacting us toll-free at 1-800-873-5654. Once we receive your request, we will start sending you separate copies within 30 days of receipt of your request.

If you would rather receive your prospectus and other documents via e-mail, please register for Jackson’s Green Delivery Program by visiting the www.Jackson.com.  Our Go Paperless process is quick and easy for policyholders – just have your policy number available when you register.

Jackson appreciates your cooperation as we do our part to aid the environment by reducing the amount of paper we distribute. While we’re committed to providing you with the information you need in the format you prefer, we are always looking for new ways to operate more efficiently.

Variable Products issued by Jackson National Life Insurance Company® and distributed by Jackson National Life Distributors LLC, member FINRA.800/873-5654

JNL Institutional Alt 20 Fund

JNL Institutional Alt 35 Fund

JNL Institutional Alt 50 Fund

JNL Institutional Alt 65 Fund

Jackson National Asset Management, LLC

Steven B. Young

Objective:

The investment objective of the JNL Institutional Alt 20 Fund, JNL Institutional Alt 35 Fund, JNL Institutional Alt 50 Fund and JNL Institutional Alt 65 Fund (collectively, “JNL Institutional Alt Funds” or “Funds”) is long-term growth of capital and income.

Each Fund seeks to achieve its objective by investing in Class A shares of a diversified group of other Funds (“Underlying Funds”). The Underlying Funds in which each Fund may invest are a separate series of JNL Series Trust and the JNL Variable Fund LLC.  Each Fund has a target percentage allocation among the Underlying Funds that are categorized as primarily investing in traditional asset classes and non-traditional asset classes.  The Underlying Funds available for investing in traditional asset classes are:  JNL/Mellon Capital Management S&P 500 Index Fund, JNL/Mellon Capital Management S&P 400 MidCap Index Fund, JNL/Mellon Capital Management Small Cap Index Fund, JNL/Mellon Capital Management International Index Fund, JNL/Mellon Capital Management Bond Index Fund, JNL/Mellon Capital Management European 30 Fund, JNL/Mellon Capital Management Pacific Rim 30 Fund, JNL/S&P Competitive Advantage Fund, JNL/S&P Dividend Income & Growth Fund, JNL/S&P Intrinsic Value Fund, JNL/S&P Total Yield Fund, JNL/Mellon Capital Management JNL 5 Fund, JNL/Mellon Capital Management Select-Small Cap Fund, JNL/Mellon Capital Management 25 Fund, JNL/Mellon Capital Management S&P® 24 Fund, JNL/Mellon Capital Management DowSM Dividend Fund, JNL/Mellon Capital Management Nasdaq® 25 Fund, JNL/Mellon Capital Management Value Line® 30 Fund, JNL/Mellon Capital Management VIP Fund, JNL/Mellon Capital Management JNL Optimized 5 Fund, JNL/Mellon Capital Management S&P® SMid 60 Fund and JNL/Mellon Capital Management NYSE® International 25 Fund.  The Underlying Funds available for investing in non-traditional asset classes are:  JNL/AIM Global Real Estate Fund, JNL/Credit Suisse Commodity Securities Fund, JNL/Credit Suisse Long/Short Fund, JNL/Goldman Sachs Emerging Markets Debt Fund, JNL/Ivy Asset Strategy Fund, JNL/Lazard Emerging Markets Fund, JNL/Mellon Capital Management Global Alpha Fund, JNL/PIMCO Real Return Fund, JNL/PPM America High Yield Bond Fund and JNL/Red Rocks Listed Private Equity Fund.  The performance and investment objectives of the Underlying Funds are discussed elsewhere in this report.

Portfolio Manager Commentary:

Early in 2009, capital markets continued to struggle from the consequences of the prior year’s credit crisis.  Transition of political leadership in the U.S., temporary lack of clarity regarding key Cabinet appointments and uncertainty regarding  policies to be introduced to help the U.S. recover from the crisis and economic recession compounded investor concern.  As leadership roles were filled and stimulative policies enacted, equity markets, as well as other riskier asset classes hit bottom in early March.  As the months progressed, economic indicators showed signs of improvement with most asset classes responding positively.

In general, investors’ renewed comfort with risk was evident in the progressively stronger returns for the riskier asset classes in the last three quarters of the year.  Within the global bond markets, the broad Barclays Capital U.S. Aggregate Bond Index was up 5.93% for the year.  Higher returns were realized in the Barclays Capital TIPS Index, which was up 11.41%, the emerging market debt market, as measured by the JPMorgan Government Bond Index-Emerging Markets (“GBI EM”) Global Diversified Bond Index, was up 21.98%, and the U.S. high yield bond market, as measured by the Merrill Lynch High Yield Master II Constrained Index, was up 58.10% for the year.  Equities benefited as the S&P 500® Index increased 26.46% while the MSCI EAFE Index of developed markets rose 31.78%, and the MSCI Emerging Market Stock Index was up 78.51% for the year.

The April 6th, 2009 inception of the JNL Institutional Alt Funds benefited from the synchronized rebound in many asset classes following the March lows. The Fund allocations to the more traditional asset classes benefited from strong U.S. equity performance, particularly in the JNL/Mellon Capital Management Nasdaq® 25 Fund and the JNL/Mellon Capital Management S&P SMid 60 Fund. Equally strong returns came from the assets allocated to alternative investments including the JNL/Credit Suisse Commodity Securities Fund, the JNL/Lazard Emerging Markets Fund and the JNL/PPM America High Yield Bond Fund.

JNL Institutional Alt 20 Fund

For the period April 6, 2009 through December 31, 2009, the Fund underperformed one of its benchmark by posting a return of 27.30% for Class A shares compared to 42.44% for the MSCI All Country World Equity Index. The Fund outperformed its other benchmark, the Barclays Capital U.S. Aggregate Bond Index, which returned 6.23%.

The Fund allocates approximately 80% of its assets to Underlying Funds that invest primarily in traditional asset classes, allocating approximately 25% to 35% in fixed income securities, 30% to 40% in U.S. equity securities and 5% to 15% in international securities.  In addition, the Fund allocates approximately 20% to Underlying Funds that invest primarily in non-traditional asset classes.

In the fourth quarter of 2009, the JNL/Mellon Capital Management Global Alpha Fund replaced the Fund’s investment in the JNL/Credit Suisse Long/Short Fund.  While it only represents a 2% allocation, the intended affect is to seek an improvement in the complementary aspects among the investments within the overall Fund.  The JNL/Mellon Capital Management Global Alpha Fund seeks to provide a positive return over most 12 months periods, a performance tendency complementary to that of the more volatile equity portfolios in the Fund.

At year end, the individual Fund allocations were in line with targets for the traditional investments, with U.S. stocks, international developed market stocks and U.S. bonds at 80%; and the alternative investments, with high yield and emerging market bonds, emerging market equities, global real estate, tactical strategies and listed private equity at 20%.

JNL Institutional Alt 35 Fund

For the period April 6, 2009 through December 31, 2009, the Fund underperformed one of its benchmark by posting a return of 32.40% for Class A shares compared to 42.44% for the MSCI All Country World Equity Index. The Fund outperformed its other benchmark, the Barclays Capital U.S. Aggregate Bond Index, which returned 6.23%.

The Fund allocates approximately 65% of its assets to Underlying Funds that invest primarily in traditional asset classes, allocating approximately 20% to 30% in fixed income securities, 25% to 35% in U.S. equity securities and 5% to 15% in international securities. In addition, the Fund allocates approximately 35% to Underlying Funds that invest primarily in non-traditional asset classes.

In the fourth quarter of 2009, numerous Fund changes took place within the alternative investment allocations, introducing two investment strategies and eliminating one. The JNL/Ivy Asset Strategy Fund and JNL/Mellon Capital Management Global Alpha Fund replaced the JNL/Credit Suisse Long/Short Fund.  The intended affect is to provide modest tactical flexibility among asset classes and seek a more complementary mix of investments within the overall Fund.

The JNL/Ivy Asset Strategy Fund has flexibility to bias the portfolio toward asset classes that may benefit from ever-changing market cycles.  The JNL/Ivy Asset Strategy Fund is expected to transition between stocks, bonds, cash, precious metals and currency markets.  The JNL/Mellon Capital Management Global Alpha Fund seeks to provide a positive return over most 12 months periods, a performance tendency complementary to that of the more volatile equity portfolios in the Fund.  Compared to the JNL/Credit Suisse Long/Short Fund, both the JNL/Ivy Asset Strategy Fund and the JNL/Mellon Capital Management Global Alpha Fund are expected to offer more complementary return patterns compared to other equity portfolios in the overall Fund.

At year end, the individual Fund allocations were in line with targets for the traditional investments with U.S. stocks, international developed market stocks and U.S. bonds at 65%; and the alternative investments with high yield and emerging market bonds, emerging market equities, global real estate, tactical strategies and listed private equity at 35%.

JNL Institutional Alt 50 Fund

For the period April 6, 2009 through December 31, 2009, the Fund underperformed one of its benchmarks by posting a return of 35.70% for Class A shares compared to 42.44% for the MSCI All Country World Equity Index. The Fund outperformed its other benchmark, the Barclays Capital U.S. Aggregate Bond Index, which returned 6.23%.

The Fund allocates approximately 50% of its assets to Underlying Funds that invest primarily in traditional asset classes, allocating approximately 15% to 25% in fixed income securities, 20% to 30% in U.S. equity securities and 0% to 10% in international securities.  In addition, the Fund allocates approximately 50% to Underlying Funds that invest primarily in non-traditional asset classes.

In the fourth quarter of 2009, numerous Fund changes took place within the alternative investment allocations, introducing two investment strategies and eliminating one. The JNL/Ivy Asset Strategy Fund and JNL/Mellon Capital Management Global Alpha Fund replaced the JNL/Credit Suisse Long/Short Fund.  The intended affect is to provide modest tactical flexibility among asset classes and seek a more complementary mix of investments within the overall Fund.

The JNL/Ivy Asset Strategy Fund has flexibility to bias the portfolio toward asset classes that may benefit from ever-changing market cycles.  The JNL/Ivy Asset Strategy Fund is expected to transition between stocks, bonds, cash, precious metals and currency markets.  The JNL/Mellon Capital Management Global Alpha Fund seeks to provide a positive return over most 12 months periods, a performance tendency complementary to that of the more volatile equity portfolios in the Fund.  Compared to the JNL/Credit Suisse Long/Short Fund, both the JNL/Ivy Asset Strategy Fund and the JNL/Mellon Capital Management Global Alpha Fund are expected to offer more complementary return patterns compared to other equity portfolios in the overall Fund.

At year end, the individual Fund allocations were in line with targets for the traditional investments with U.S. stocks, international developed market stocks and U.S. bonds at 50%; and the alternative investments with high yield and emerging market bonds, emerging market equities, global real estate, tactical strategies and listed private equity at 50%.

JNL Institutional Alt 65 Fund

For the period April 6, 2009 through December 31, 2009, the Fund underperformed one of its benchmarks by posting a return of 39.70% for Class A shares compared to 42.44% for the MSCI All Country World Equity Index. The Fund outperformed its other benchmark, the Barclays Capital U.S. Aggregate Bond Index, which returned 6.23%.

The Fund allocates approximately 35% of its assets to Underlying Funds that invest primarily in traditional asset classes, allocating approximately 0% to 10% in fixed income securities, 15% to 25% in U.S. equity securities and 0% to 10% in international securities.  In addition, the Fund allocates approximately 65% to Underlying Funds that invest primarily in non-traditional asset classes.

At the end of the third quarter, numerous Fund changes took place within the alternative investment allocations, introducing two investment strategies and eliminating one.  The JNL/Ivy Asset Strategy Fund and JNL/Mellon Capital Management Global Alpha Fund replaced the JNL/Credit Suisse Long/Short Fund.   The intended affect is to provide modest tactical flexibility among asset classes and seek a more complementary mix of investments within the overall Fund.

The JNL/Ivy Asset Strategy Fund has flexibility to bias the portfolio toward asset classes that may benefit from ever-changing market cycles.  The JNL/Ivy Asset Strategy Fund is expected to transition between stocks, bonds, cash, precious metals and currency markets.  The JNL/Mellon Capital Management Global Alpha Fund seeks to provide a positive return over most 12 months periods, a performance tendency complementary to that of the more volatile equity portfolios in the Fund.  Compared to the JNL/Credit Suisse Long/Short Fund, both the JNL/Ivy Asset Strategy Fund and the JNL/Mellon Capital Management Global Alpha Fund are expected to offer more complementary return patterns compared to other equity portfolios in the overall Fund.

At year end, the individual Fund allocations were in line with targets for the traditional investments with U.S. stocks, international developed market stocks and U.S. bonds at 35%; and the alternative investments with high yield and emerging market bonds, emerging market equities, global real estate, tactical strategies and listed private equity at 65%.

JNL Institutional Alt 20 Fund Total Returns for Class A Shares
Since Inception	27.30%
(Inception date April 6, 2009)

JNL Institutional Alt 35 Fund Total Returns for Class A Shares
Since Inception	32.40%
(Inception date April 6, 2009)

JNL Institutional Alt 50 Fund Total Returns for Class A Shares
Since Inception	35.70%
(Inception date April 6, 2009)

JNL Institutional Alt 65 Fund Total Returns for Class A Shares
Since Inception	39.70%
(Inception date April 6, 2009)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/AIM International Growth Fund

Invesco AIM Capital Management , Inc.

Team Management

Objective:

The investment objective of the JNL/AIM International Growth Fund is long-term growth of capital.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 36.99% for Class A shares compared to 29.36% for the MSCI EAFE Growth Index.

Outperformance versus the Fund’s benchmark came from information technology (“IT”), utilities, healthcare and financial sectors.  In each instance, favorable stock selection was a key contributor to the outperformance.  Healthcare equipment and pharmaceutical industries were the main contributors in healthcare.  While in the IT sector, the IT services and electronic equipment segments outperformed the benchmark.

In broad geographical terms, all regions in which the Fund was invested delivered double-digit gains during the year. Compared to the benchmark, Fund holdings in Asia outperformed versus the Asian component of the benchmark.  The Fund’s holdings in Europe modestly lagged the benchmark component during the year.  Exposure in emerging markets also helped as these markets saw staggering gains throughout the year.  The Fund’s benchmark does not provide exposure to emerging markets.

In contrast, the Fund’s cash position was the largest detractor from performance during the year as equities rallied.  The Fund’s cash exposure was not a strategic decision, but a fall-out of what occurred in economies and markets globally.  While normal cash position is 5-6%, the Fund ran a much higher cash position during the year due to the lack of conviction in new investment opportunities.  However, the cash exposure in the Fund came down significantly during the year and is now at approximately 8%.  In addition, despite delivering double-digit gains in the materials sector, the Fund’s underweight exposure prevented the Fund from fully participating in this sector’s strength.

During the first few months of the year, global equity markets experienced declines as severe problems in the credit markets, a rapidly deteriorating housing market, rising energy and food prices and a deteriorating outlook for corporate earnings led to a global economic recession.  Global equity markets began to recover some of the losses in early March as unprecedented, synchronized action by global policy makers improved the outlook for economic recovery.  The vast majority of developed countries finished the year in positive territory, with emerging markets like China and Indonesia posting even larger gains.

All sectors delivered double-digit gains during the year and contributed positively to absolute results.  The top three contributing sectors to Fund performance included consumer staples, healthcare and consumer discretionary.  The top five companies that contributed to Fund performance were Anheuser-Busch InBev NV, Infosys Technologies Ltd., Nidec Corp., BHP Billiton Ltd. and Sonova Holding AG.  Significant purchases during the year included Talisman Energy Inc., BG Group Plc, Koninklijke Ahold NV, Koninklijke KPN NV, CSL Ltd. and Hyundai Mobis.  Significant sales during the year included Cap Gemini SA, Heineken Holding NV, Henkel AG & Co. KGaA, Porsche Automobil Holding SE and Telekomunikasi Indonesia Tbk PT.

Stock selection in the Fund is driven by the underlying fundamentals of a company versus any top down macroeconomic views. Therefore, the Fund’s exposure in the energy, industrial and healthcare sectors increased during the year due to a combination of new purchases and appreciation.  Liquidations in the consumer discretionary and IT sectors led to a reduction in Fund’s exposure to these segments of the market.

At the end of the year, the Fund was overweight healthcare, energy, telecommunication services and IT.  The Fund was underweight materials, financials, consumer staples, utilities, consumer discretionary and industrials.

JNL/AIM International Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	36.99%
5 year	3.80%
10 year	-0.19%

Average Annual Total Returns for Class B Shares
1 year	39.94%
5 year	4.42%
10 year	5.61%

Invesco AIM Capital Management, Inc. assumed portfolio management responsibility on December 3, 2007.

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/AIM Large Cap Growth Fund

Invesco AIM Capital Management, Inc.

Team Management

Objective:

The investment objective of the JNL/AIM Large Cap Growth Fund is long-term growth of capital.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmarks by posting a return of 24.29% for Class A shares compared to 26.46% for the S&P 500 Index and 37.21% for the Russell 1000® Growth Index.  Much of the Fund’s underperformance was due to a more defensive position across and within sectors at the market inflection point as well as stock selection across sectors.

During the first two months of the year, equity markets experienced steep declines as severe problems in the credit markets, a rapidly deteriorating housing market, rising energy and food prices and a deteriorating outlook for corporate earnings led to a global economic recession.  However, the U.S. economy began to show signs that the economic contraction was moderating, and equity markets reversed direction starting in March and continued for most of the remaining months in the year.

During the market decline, the Fund benefited from a more defensive posture, with overweight positions in less economically sensitive sectors such as healthcare, and underweight positions in more economically sensitive sectors such as consumer discretionary, energy and materials. Additionally, within sectors, the Fund benefited from higher exposure to less cyclical holdings.  However, the Fund began to underperform  the Russell 1000 Growth Index when equity markets hit a bottom and began to rebound in March 2009.

Fund underperformance was driven primarily by two factors. First, much of the Fund’s underperformance was driven by its defensive posture both within and across sectors, as more economically sensitive stocks outperformed following the March low.  Second, the Fund underperformed because it did not own many of the lower quality, highly levered companies that outperformed during the market rebound.  Our investment approach specifically avoids companies with these traits because over the long-term they tend to perform poorly.

Throughout the year, the Fund underperformed by the widest margin in the consumer discretionary sector, primarily due to stock selection.  Much of the Fund’s underperformance was because it did not own many of the lower quality companies that performed strongly during the stock market rebound.

The Fund’s top five contributors included Apple Inc., Hewlett Packard Co., Microsoft Corp., International Business Machines Corp. and Adobe Systems Inc.  The five largest purchases made during the year included BHP Billiton Ltd, EMC Corp., Goldman Sachs Group Inc., AmerisourceBergen Corp. and Medco Health Solutions Inc.  The five largest complete sales made during the year included Lockheed Martin, Baxter International Inc., Wal-Mart Stores Inc., Raytheon Co. and Chubb Corp.

During the year, the most significant positioning changes included additions in more economically sensitive sectors including information technology, materials, consumer discretionary and energy. Purchases in these sectors were largely funded by reducing exposure to the more defensive sectors such as consumer staples and healthcare, as well as industrials and financials.

At year end, the Fund’s largest overweight positions included the information technology, energy and materials sectors. The Fund’s largest underweight positions included the consumer staples, consumer discretionary, utilities and financials sectors.

JNL/AIM Large Cap Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	24.29%
5 year	0.73%
Since Inception	2.39%
(Inception date October 29, 2001)

Average Annual Total Returns for Class B Shares
1 year	24.57%
5 year	0.94%
Since Inception	1.88%
(Inception date March 5, 2004)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/AIM Global Real Estate Fund

Invesco AIM Capital Management , Inc.

Team Management

Objective:

The investment objective of the JNL/AIM Global Real Estate Fund is high total return.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed one of its benchmarks by posting a return of 32.53% for Class A shares compared to 38.26% for the FTSE EPRA/NAREIT Developed Index Net TRI. The Fund outperformed its other benchmark, the FTSE NAREIT Equity REIT Index, which returned 27.99%.

A primary reason the Fund underperformed the FTSE EPRA/NAREIT Developed Index Net TRI is that the market rally since March 2009 favored riskier real estate investments.  The Fund, on the other hand, focused on companies operating in better real estate markets, with higher quality real estate, better balance sheets and management teams.

In early 2009, equity markets experienced steep declines as credit markets froze and risk premiums rose dramatically in response to the global economic recession.  As central banks coordinated easing efforts and companies cut costs aggressively, access to funding improved and market valuations in both the credit and equity markets recovered from the March lows.  Real estate securities rallied as a result of improvements in the economy, and more importantly, improved capital availability.  Although government programs have  normalized credit markets, real estate companies have also taken significant action to recapitalize.  In the U.S., real estate companies raised over $17 billion in new equity; globally, close to $51 billion was raised.  With better access to capital, companies are expected to pay down debt or take advantage of discounted commercial real estate opportunities. However, real estate typically lags the economy and further improvements in GDP and employment will be needed for real estate fundamentals to fully recover.

Security selection in Japan, the UK and Singapore had the greatest negative impact on the Fund’s relative performance.  A combination of security selection and an underweight in China relative to its global benchmark was also a detractor.  On the positive side, holdings in U.S. REITs benefited Fund performance from a security selection and market allocation standpoint.

Top contributors to Fund performance for the year included Sun Hung Kai Properties Ltd., Hang Lung Properties Ltd., Simon Property Group Inc., Unibail-Rodamco SE and China Overseas Land & Investment Ltd.  Conversely, Kimco Realty Corp., Nippon Building Fund Inc., Mitsubishi Estate Co. Ltd., Mitsui Fudosan Co. Ltd. and SEGRO Plc were top detractors from Fund performance.

Significant purchases during the year included: Hong Kong Land, the Fund increased this position in an effort to re-position portfolio weight from China towards Hong Kong;  Goodman Group, an Australian-listed integrated industrial property development and service business which presented deeper value opportunities; and SEGRO Plc, a company that we believe is positioned to generate better earnings growth through the next UK cycle.

Significant sales during the year included:  Federal Realty Investment Trust, the Fund reduced this position following outperformance within the shopping center sector. The proceeds were used to purchase another shopping center company with attractive earnings growth potential; Land Securities Group Plc, a relative value company within the UK, the proceeds of which were used to fund the purchase of SEGRO Plc; and Kimco Realty Corp., which was sold due to management changes, increased strategic risks and development projects which continue to pose risks for further writeoffs and additional funding.

One of the outcomes of the Fund’s comprehensive risk management approach is that it tends not to significantly overweight or underweight a sector, country or currency, relative to its benchmarks.  The Fund assumes stock specific risk rather than sector risk.  The Fund’s focus remains on companies with lower leverage because we think companies with better balance sheets will be able to negotiate a possible downturn better, as well as benefit from favorable acquisition opportunities in the marketplace.

JNL/AIM Global Real Estate Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	32.53%
Since Inception	3.15%
(Inception date May 2, 2005)

Average Annual Total Returns for Class B Shares
1 year	32.86%
Since Inception	3.36%
(Inception date May 2, 2005)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/AIM Small Cap Growth Fund

Invesco AIM Capital Management, Inc.

Team Management

Objective:

The investment objective of the JNL/AIM Small Cap Growth Fund is long-term growth of capital.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 34.80% for Class A shares compared to 34.47% for the Russell 2000® Growth Index.  Positive outperformance verses its benchmark was driven by stock selection in the industrials, energy and telecommunications sectors.  An overweight position in the energy and information technology sectors also contributed to outperformance.  Underperformance verses its benchmark was concentrated in the consumer discretionary, consumer staples and materials sectors.

During the first two months of the year, equity markets experienced steep declines as severe problems in the credit markets, a rapidly deteriorating housing market, rising energy and food prices and a deteriorating outlook for corporate earnings led to a global economic recession.  However, the U.S. economy began to show signs that the economic contraction was moderating, and equity markets reversed direction starting in March and continued for most of the remaining months in the year.

The Fund outperformed by the widest margin in the industrials sector, driven by stock selection. Outperformance in the energy sector was driven by stock selection and an overweight position.  The Fund also outperformed in the telecommunication services sector, due to stock selection.

The Fund underperformed by the widest margin in the consumer discretionary sector.  Within this sector, the leading detractor to performance was a for profit education services provider.  This more defensive holding had weak performance as investors shifted into more economically sensitive holdings during the market rebound.  Much of the remaining underperformance in the consumer discretionary sector was because the Fund did not own many of the more highly leveraged and/or cyclical companies that had the highest performance following the market inflection point.

The Fund’s top five contributors included Starent Networks Corp., Dril-Quip Inc., Tech Data Corp., SBA Communications Corp. and Quality Systems Inc.  The five largest purchases made during the year included Sybase Inc., F5 Networks Inc., Corrections Corp. of America, Vistaprint Ltd. and Deckers Outdoor Corp.  The five largest complete sales made during the year included Strayer Education Inc., DeVry Inc., Marvel Entertainment Inc., Varian Inc. and Bankrate Inc.

During the year, the most significant positioning changes included additions in more economically sensitive sectors including information technology, consumer discretionary and energy.  Purchases in these sectors were largely funded by reducing exposure to the more defensive healthcare sector.  All changes to the Fund were based on the Fund’s bottom-up stock selection process of identifying high quality growth companies trading at what we believe are attractive valuations.

At the close of the year, the Fund’s largest overweight positions included the energy and financials sectors.  The Fund’s largest underweight positions included the healthcare, consumer staples and consumer discretionary sectors.

JNL/AIM Small Cap Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	34.80%
5 year	2.35%
Since Inception	4.21%
(Inception date October 29, 2001)

Average Annual Total Returns for Class B Shares
1 year	35.00%
5 year	2.57%
Since Inception	2.59%
(Inception date March 5, 2004)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Capital Guardian Global Balanced Fund

Capital Guardian Trust Company

Team Management

Objective:

The investment objective of the JNL/Capital Guardian Global Balanced Fund is to seek income and capital growth, consistent with reasonable risk.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed one of its benchmarks by posting a return of 22.48% compared to 34.63% for the MSCI All Country World Index. The Fund outperformed its other benchmark, the Barclays Capital Global Aggregate Bond Index, which returned 6.93%.

Developed market equities rose during the year as represented by the 26% return of the S&P 500 Index. Emerging markets stocks delivered an astounding 79% return as represetned by the MSCI Emerging Markets Index. Credit markets also showed a spectacular return to health. A record $1 trillion in investment grade bonds was sold in primary markets as corporations sought to reduce balance sheet risk by converting shorter term bank debt to longer-term bonds and also build a cushion of reserve capital. The supply was met with equally strong demand. Against the backdrop of an investor hunt for yield reminiscent of the pre-crisis days, high yield bonds, as measured by the Merrill Lynch High Yield Master II Index, delivered a 58% total return, compared to 19% for investment grade bonds, as measured by the Barclays Capital U.S. Aggregate Corporate Index. In contrast, U.S. Treasuries provided a negative total return for the year.

The Fund maintained a greater than benchmark allocation to fixed income for most of 2009, which detracted from relative results.

The equity portion of the Fund had strong returns for the year.  The selection of energy stocks was the largest contributor to returns.  Asian coal producers, China Shenhua Energy Co. Ltd. and Banpu Public Co. Ltd., were among the stocks that rose sharply, propelled by a resurgence in demand in China and other Asian countries.  The decision to hold fewer investments in utilities was supportive of relative results as the sector lagged cyclical areas of the market.

Stock selection in the materials sector was the largest detractor to relative returns particularly due to metals and mining holdings.  Selection in information technology was negative as shares of Nintendo Co. Ltd. fell amid ongoing concerns about slowing demand for its Wii video game consoles. We remained selective in the Fund’s investments in financials which was detrimental as a sharp rally in this sector translated into higher returns for the riskier banks and insurers. Nevertheless, several of the Fund’s financial holdings had strong returns, including Goldman Sachs Group Inc., the top contributor to absolute returns, which benefited from resurgent capital markets. The Fund’s cash position was also a drag in a rising market.

Within the fixed income portion of the Fund, the decision to have few investments in the Japanese bond market and the yen currency was a positive factor. The resurgence of deflation and a rising fiscal deficit weighed on Japan’s government bonds and the currency. An overweight stance on the Australian dollar, a currency we favor because of its sensitivity to commodity price rises, also benefited the Fund.  However, the underweight exposure to the British pound was a detractor. At a sector level, the less than benchmark investment in corporate bonds and overweight stance in Treasuries was also a negative contributor to relative returns.

Looking to 2010, we are focused on finding companies that will be able to reliably grow revenues beyond 2010 as the inventory cycle wanes and the benefits of monetary and fiscal policies gradually fade.

Within the fixed income portion of the Fund, we have an underweight in corporate bonds and an overweight in Treasuries. We expect the U.S. Federal Reserve to keep an accommodative monetary policy as long as unemployment remains elevated and inflation remains tame. Against this backdrop, Treasury yields may fluctuate within a wider range than in 2009, but we do not expect them to spike sharply higher.

JNL/Capital Guardian Global Balanced Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	22.48%
5 year	2.95%
Since Inception	2.41%
(Inception date May 1, 2000)

Average Annual Total

Returns for Class B Shares

1 year

5 year

Since Inception

(Inception date March 5, 2004)

Capital Guardian Trust Company assumed portfolio management responsibility on December 3, 2007.

*Balanced Hybrid Composite is composed of 65% MSCI All Country World Index, 35% Barclays Capital Global Aggregate Bond Index.

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Capital Guardian Global Diversified Research Fund

Capital Guardian Trust Company

Team Management

Objective:

The investment objective of the JNL/Capital Guardian Global Diversified Research Fund is long-term growth of capital.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 38.32% compared to 34.63% for the MSCI All Country World Index.

Financial assets rebounded sharply in 2009 in an almost steady climb after touching a bottom in March. Developed market equities rose during the year as represented by the 26% return of the S&P 500 Index, while emerging markets stocks delivered an astounding 79% return as represented by the MSCI Emerging Markets Index, supported partly by the resumption of high single digit GDP growth in both China and India. Commodities rallied and gold touched an all time high. The U.S. dollar weakened against most currencies, falling sharply versus commodity linked currencies but rising slightly against the Japanese yen.

The Fund outpaced its benchmark for the year. The choice of energy stocks was the biggest contributor to Fund gains for the year. The Fund’s holding in Brazil’s Petròleo Brasileiro SA. was helped by new deepwater oil and natural gas discoveries. Canadian Natural Resources, which specializes in oil sands extraction, and China Shenhua Energy Co. Ltd. also contributed, as did Norway’s SeaDrill Ltd., an operator of deepwater oil rigs.

The choice of consumer discretionary stocks aided relative results. Automobile manufacturers and auto components companies benefited from sales increases boosted by government supported purchase initiatives. The underweight stance in the utilities sector, which typically lags in an economic recovery, helped. Within telecommunication services, another typically defensive area, stock choice and emphasis on companies with exposure to emerging markets mitigated some of the negative effects of being overweight the sector. American Tower Corp., which builds infrastructure for wireless telecommunications ended the year as the Fund’s largest holding and was a notable contributor.

Stock choice in the materials sector hurt Fund results. Commodity prices soared as economic conditions improved, lifting the values of Rio Tinto Ltd. and Vale S.A. Overseas Ltd., both iron ore miners. But the lack of exposure to some gold miners weighed on results, as these companies had additional support from increased buying by central banks.   As financials rallied worldwide the Fund’s underweight position and stock choice in the sector, particularly among insurance firms and commercial banks, held back returns. Some financial holdings were major contributors, however, including investment bank Goldman Sachs Group Inc. and banks with ties to fast growing emerging markets, including Bank of China Ltd., HSBC Bank and BNP Paribas.  Stock selection also detracted in information technology and industrials. Nintendo Co. Ltd. was pulled down by declining sales for its Wii gaming console, while airlines and machinery makers weighed on the industrials sector. The Fund’s cash position was also a drag in a rising market.

We continue to focus on companies best placed to maintain revenue growth, those with unique products or expertise, dominant positions in fast growing areas or the financial wherewithal to invest for future growth. This is reflected in our choice of technology and consumer related stocks. We have also found many such companies in the materials sector, where demand from emerging markets can be expected to remain strong. Among financials there are fewer opportunities. We have focused our investments in companies with ties to emerging economies and those whose superior risk controls and proven expertise in key areas of the capital markets have allowed them to boost their competitive strength.

JNL/Capital Guardian Global Diversified Research Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	38.32%
5 year	2.07%
10 year	-3.55%

Average Annual Total Returns for ClassB Shares
1 year	38.63%
5 year	2.28%
Since Inception	2.96%
(Inception date March 5, 2004)

Capital Guardian Trust Company assumed portfolio management responsibility on December 3, 2007.

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Capital Guardian International Small Cap Fund

Capital Guardian Trust Company

Team Management

Objective:

The investment objective of the JNL/Capital Guardian International Small Cap Fund is long-term growth of capital and income.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 52.93% compared to 45.70% for the S&P Developed ex-U.S. (under $2 billion) Index.

Stocks rebounded sharply in 2009 in an almost steady climb after touching a bottom in March. The energy and materials sectors led the market.  Rising oil prices lifted energy stocks, while robust demand for base metals in China and India drove materials higher. Gold stocks rose as gold hit an all time high, boosted by central bank buying and demand from exchange traded funds (“ETFs”) tied to commodities.  Cyclical sectors such as information technology and consumer discretionary did well, while the more defensive areas of consumer staples and healthcare lagged the market.

The Fund’s gains outpaced its benchmark.  Stock selection in the materials sector was the largest contributor.  Petropavlovsk Plc, formerly Peter Hambro Mining Plc (“Peter Hambro”), Russia’s third largest gold producer, rallied as gold prices soared to record levels and the company announced a production increase of nearly 30% and a joint iron ore venture with China’s XY Group. Aricom Plc was the top contributor overall as Peter Hambro reacquired the iron ore producer just six years after spinning it out.

In the information technology sector, Dialog Semiconductor Plc rose after lifting its earnings guidance for the year.  Among industrials, online employment advertiser Seek Ltd. benefited as the economic downturn led to a significant migration of job ads from print to online.  SMA Solar Technology SA gained on the potential increase in demand for solar products, and Dutch staffing firm Brunel International NV rose as market conditions improved.

Our selection of consumer related stocks was a positive factor as consumers began to regain their confidence and increase spending.  In consumer staples, Brazilian retail pharmacy Drogasil SA rose on plans to add about 40 stores as the pharmaceutical industry withstood the country’s economic slump.

Several Japanese companies, including retailers Sundrug Co. Ltd. and ABC-Mart Inc. and boiler maker Miura Co. Ltd., were among the largest detractors as small cap stocks in Japan lagged most other markets.  In the healthcare sector, shares of Hogy Medical Co. Ltd. and other device companies fell. Danish biotechnology company Genmab A/S was the largest detractor as the company said it would report a large loss in 2009 due to the absence of a milestone payment for its experimental leukemia drug Arzerra.  The Fund’s cash position was the biggest drag in a rising equity market.

We reduced the Fund’s investments in Japan, eliminating Nakanishi Inc. and Micronics Japan Co. Ltd., while adding to investments in the UK and Canada.  We added Iluka Resources Ltd. in the

materials sector, and also increased our investments in financials and information technology while decreasing our holdings in energy and healthcare.

Our largest areas of investment relative to the market continue to be information technology, consumer staples and healthcare.  Several technology stocks should benefit from the onset of a new upgrade cycle.  We remain more cautious on financials, particularly certain European banks due to the uncertain regulatory landscape and lack of growth opportunities.  In Japan, we have hope that small-cap stocks will rebound as currency trends improve and the new Democratic Party enacts policies that should mostly favor smaller companies, especially those with strong ties to China.

JNL/Capital Guardian Internatonal Small Cap Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	52.93%
Since Inception	-16.11%
(Inception date December 3, 2007)

Average Annual Total Returns for Class B Shares
1 year	53.05%
Since Inception	-15.89%
(Inception date December 3, 2007)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Capital Guardian U.S. Growth Equity Fund

Capital Guardian Trust Company

Team Management

Objective:

The investment objective of the JNL/Capital Guardian U.S. Growth Equity Fund is long-term growth of capital.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 34.91% compared to 37.21% for the Russell 1000 Growth Index.

Equity markets began the year in freefall.  They hit bottom on March 9 and climbed steadily thereafter, ending the year substantially higher.  The information technology, materials and consumer discretionary sectors led the market.  Financials, which had the steepest declines during the crisis, more than doubled from their lows in March, but lagged for the calendar year.

Technology companies benefited from the weak dollar and the anticipation of a major upgrade cycle.  Resurgent demand for raw materials from China triggered a surge in prices for commodities and materials companies.  Consumer discretionary stocks were helped by improving economic data, including retail sales that held up better than had been feared and consumer confidence that perked up from depressed levels.  Returns for healthcare stocks were restrained by uncertainty as Congress debated sweeping legislation.

The Fund appreciated in value but did not keep pace with its benchmark.  Stock selection among industrials was the largest detractor to the Fund’s performance.   First Solar Inc. had negative returns as investors worried about the level of government subsidies and the ability of its customers to finance projects.  Iron Mountain Inc., which specializes in records management and is not as cyclical in nature as other industrials, also declined.  Stock selection among financials overall was a negative factor.  The Fund’s cash position was also a drag in a rising market.

On the positive side, shares of Goldman Sachs Group Inc., Google Inc., Cerner Corp. and Apple Inc. all more than doubled, helping Fund returns.  Goldman Sachs benefited from resurgent capital markets.  Google Inc. rose on gains in advertising revenue and hopes for its Android operating system for mobile devices.  Cerner Corp. was helped by government incentives to digitize medical records.  Apple Inc. experienced a surge in the popularity of its iPhone.  American Tower Corp. also helped Fund results, benefiting from the growing ubiquity of mobile browsing and the need for carriers to upgrade wireless infrastructure.  Deemphasizing consumer staples stocks helped results as the sector lagged the rally.  Owning very little of Exxon Mobil Corp. was also a plus, as the stock posted negative returns for the year.

We added to the areas of materials, consumer staples and energy. This included purchases of Monsanto Co., Wal-Mart Stores Inc. and Schlumberger Ltd.  We reduced the Fund’s exposure to consumer discretionary and industrial stocks, including Omnicom Group Inc. and United Parcel Service Inc.  Within the technology sector we trimmed Yahoo! Inc. and Google Inc. while purchasing Juniper Networks Inc.  In the area of healthcare we purchased Aetna Inc. and sold Genentech Inc. and Gilead Sciences Inc.

We have significant investments in media and retail companies, believing the diminished consumer spending consensus may be overly pessimistic.  We are focused on finding companies that will be able to reliably grow revenues beyond 2010 as the inventory cycle wanes and the benefits of monetary and fiscal policies fade.  The Fund owns companies that we believe fit this description in the areas of technology, where product cycles have revived revenue growth; healthcare, where we expect legislation to provide growth opportunities; and materials, where supply bottlenecks and rising global demand for specific products should lead to pricing power.

JNL/Capital Guardian U.S. Growth Equity Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	34.91%
5 year	-0.86%
10 year	-5.61%

Average Annual Total Returns for Class A Shares
1 year	35.16%
5 year	-0.66%
Since Inception	0.40%
(Inception date March 5, 2004)

Capital Guardian Trust Company assumed portfolio management responsibility on December 3, 2007.

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Credit Suisse Commodity Securities Fund (formerly, JNL/Credit Suisse Global Natural Resources Fund)

Credit Suisse Asset Management, LLC

Jordan Low, Christopher Burton and Andrew B. Karsh

Objective:

The investment objective of the JNL/Credit Suisse Commodity Securities Fund is long-term capital growth.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmarks by posting a return of 50.17% for Class A shares compared to 26.46% for the S&P 500 Index and 18.91% for the Dow Jones UBS-Commodity Index.

The equity portion of the Fund benefited from the pronounced global recovery in the markets and the higher beta of equities to raw materials.  The valuation factor was the strongest contributor to active returns, best demonstrated by the steel industry.  In general, material stocks, such as steel, performed better than energy stocks as they began 2009 at a much deeper discount to book and normalized earnings.  The quality factor was the largest detractor to active returns as low quality names significantly outperformed high quality names.  In general, low quality securities have greater bankruptcy risk than high quality securities.  In the beginning of 2009, the risk of companies entering into bankruptcy increased until the market bottomed.  This risk then dissipated as the economy recovered in the latter half of the year.

Following a market sell off in the second half of 2008, commodities delivered solid positive performance to investors in 2009.  Signs of economic stabilization started to materialize in the spring and eventually turned into positive growth.  This was generally supportive of commodity demand and prices, with particularly favorable returns for base metals and energy.  Part of the performance of the commodities portion can be attributed to the strong gains of copper and zinc, up 98.31% and 129.98%, respectively.  This is a result of low interest rates, a weaker U.S. dollar, and stockpiling of easily storable commodities by countries such as China.

Unprecedented government stimulus measures were a key factor in driving the beginning of the economic recovery in 2009.  The impacts of such efforts are not instantaneous, nor do they merely create one time gains.  The benefits will filter through the economy over time and we believe economic strength in the near to intermediate term may take investors by surprise.  Commodity markets and other capital markets rationally began to price in these impacts with particular vigor in March 2009, while we believe their future benefits may be under appreciated.  Looking at specific examples, the S&P 500 Index gained 26.46% for the year and the Dow Jones Industrial Average gained 22.68%.  The commodities market also posted positive results, with the Dow Jones UBS-Commodity Index up 18.91% for the year.  Yet, despite positive markets, the economy is still far from recovery as the unemployment rate was at 10.0% as of December 31, 2009, and the U.S. Federal Funds rate continues to be unchanged at 0.00% - 0.25%.

Equities of raw material extractors suffered disproportionately relative to their underlying commodities as markets bottomed.  The oil and gas and paper and forest products sectors contributed to alpha while the chemicals sector detracted.  Within commodities, the industrial metals sector was the leading contributor to performance, followed by precious metals.  The livestock and energy sectors detracted from performance.

Of the equities portion of the Fund, Vale SA and Petroleo Barsileiro SA were the greatest contributors for the year, while Arcelormittal and Teck Cominco Ltd. were the greatest detractors.  Within commodities, copper and zinc were the strongest commodities while natural gas and wheat were the weakest.

On June 12, 2009, the Fund converted from a fundamental bottom-up security selection strategy that only invested in natural resources equities to a quantitative strategy which provides exposure to both commodity related securities and a broad based commodities index.  Thus, instead of holding only securities, the Fund also holds commodity-linked derivatives.  When the Fund transitioned from a securities only Fund to a securities/commodities Fund on June 12, 2009, the asset breakdown was 75% securities and 25% commodities.  Subsequently, when the name of the Fund was changed on September 28, 2009, the asset allocation was adjusted to 50% securities and 50% commodities.

For the equities portion of the Fund, the latter half of the year was marked by a beta rally, defined as the outperformance of stocks with high betas substantially outperforming beta adjusted market returns.  Despite this trend of low quality stocks and high beta companies, we do not believe trading low quality stocks is sustainable and ultimately profitable.  We believe that the first stage of the recovery trade is coming to an end.  We feel that the beta of the markets should gradually become less important as investors begin to focus more on underlying fundamentals of companies.  We also believe that balance sheet and earnings quality will be positively rewarded in 2010.  Valuations of securities may be enhanced by considering momentum, as trends for the next business cycle begin to form.

Regarding commodities, official inflation expectations continue to be low and the bond market seems to still be pricing in a benign inflation environment, despite a modest increase in longer term yields of late.  It is difficult to predict when inflation will pick up, but history suggests it can possibly pick up much quicker than is expected.  Unprecedented government stimulus and swelling government debt loads in the U. S. and elsewhere are likely to eventually lead to inflation.  We believe the push for real returns and inflation protection should be supportive of commodities.  We continue to believe now is an excellent time to hold or increase allocations to commodities.  Many commodity prices are below previous cycle highs and well below inflation adjusted highs.  Amidst the prolonged uncertainty, we expect investors to maintain focus on exposure to hard assets.  Additionally, we continue to believe in the role of commodities as a strategic player in investors’ portfolios, potentially reducing risk and enhancing returns.

JNL/Credit Suisse Commodity Securities Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	50.17%
Since Inception	0.56%
(Inception date January 16, 2007)

Average Annual Total Returns for Class B Shares
1 year	50.34%
Since Inception	0.75%
(Inception date January 16, 2007)

*MSCI World Composite Index is comprised of 50% MSCI Metals & Mining Index, 25% MSCI Oil & Gas Index, 15% MSCI Paper & Forest Index and 10% MSCI Chemicals Index.

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Credit Suisse Long/Short Fund

Credit Suisse Asset Management, LLC

Jordan Low

Objective:

The investment objective of the JNL/Credit Suisse Long/Short Fund is total return.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 24.86% for Class A shares compared to 26.46% for the S&P 500 Index.  Underperformance for the Fund was mainly a result of the beta rally, defined as the outperformance of stocks with high betas substantially outperforming beta adjusted market returns, in the latter half of the year.

In general, the summer months of the third quarter were a difficult environment for individual stock selection, but a relatively good environment for taking directional or thematic bets due to the rapid shift from a bear market to a bull market.  Positive performance from funds in the third and fourth quarter can be attributed to increased correlation between securities as we enter into this bull market at a rapid and unanticipated rate.  In further detail, investors seeking high beta companies have been buying lower quality names, looking at factors such as poor credit quality, low earnings, bankruptcy risk and illiquidity.  American International Group Inc. (“AIG”), Federal National Mortgage Association (“Fannie Mae”), and Federal Home Loan Mortgage Corporation (“Freddie Mac”) are prime examples of this effect.  During these periods, we may experience temporary losses but we believe it is prudent to continue to trade as we can enter many positions at attractive prices and increase the potential for a strong autumn.  We believe that our models are on the right track as the inception to date numbers have continued to outperform.

After a tumultuous 2008, market conditions in 2009 improved significantly with the S&P 500 Index up 26.46% for the year and the Dow Jones Industrial Average up 22.68%.  Despite stronger markets, the economy is still far from recovery as the unemployment rate was at 10.0% as of December 31, 2009, and the U.S. Federal Funds rate continues to be unchanged at 0.00% - 0.25%.

The Fund had its greatest net overweights in the financials and consumer discretionary sectors.  The long sleeve of the financials sector underperformed the benchmark, whereas the short sleeve of the sector outperformed.  In contrast, the long holdings of the consumer discretionary sector contributed to alpha and the short holdings of the sector detracted from performance.  The Fund was net short the consumer staples and information technology sectors, with the consumer discretionary sector adding to overall performance and the information technology sector detracting.  On a net basis, the strongest sector for the year was the industrials sector and the weakest sector for the year was the financials sector.

Within the long sleeve of the Fund, the top three contributors were Apple Computer Inc., Western Digital Corp. and Bristol-Myers Squibb Co.  The top three detractors were Exxon Mobil Corp., Allstate Corp. and Torchmark Corp.  Within the short sleeve of the Fund, the top three contributors were Allegheny Technologies Inc., Lowe’s Cos. Inc. and Goodyear Tire & Rubber Co.  The top three detractors were Freeport-McMoRan Copper & Gold Inc., Southwest Airlines Co. and Amazon.com Inc.

As of April 6, 2009, the Fund transitioned from a 120/20 strategy to a flexible 140/40 approach.  Despite the adoption of a more flexible long/short ratio, there were no drastic changes in weightings during the year.

The latter half of the year was marked by a beta rally as described previously.  Despite this trend of low quality stocks and high beta companies, we do not believe trading low quality stocks is sustainable and ultimately profitable.  We believe that the first stage of the recovery trade is coming to an end.  Beta of the markets should gradually become less important as investors begin to focus more on underlying fundamentals of companies.  We also believe that balance sheet and earnings quality will be positively rewarded in 2010.  Valuations of securities will be enhanced by considering momentum, as trends for the next business cycle begin to form.

JNL/Credit Suisse Long/Short Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	24.86%
Since Inception	-5.57%
(Inception date January 16, 2007)

Average Annual Total Returns for Class B Shares
1 year	25.07%
Since Inception	-5.37%
(Inception date January 16, 2007)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Eagle Core Equity Fund

Eagle Asset Management, Inc.

Team Management

Objective:

The investment objective of the JNL/Eagle Core Equity Fund is long-term growth through capital appreciation, and secondly, current income.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 33.83% for Class A shares compared to 26.46% for the S&P 500 Index.

The Fund’s strong relative performance reflected superior stock selection and sector allocation during a year that spanned the depth of the worst recession since the Great Depression and the stock market’s discounting of economic recovery.  In response to relative valuation disparities and in anticipation of improved economic conditions, the Fund was positioned early in the year to participate in economically sensitive sectors by overweighting technology and consumer discretionary while underweighting the more stable consumer staples and utility sectors.

The stock market covered two phases during the year: a selloff phase lasting through early March, followed by a recovery phase that extended through year end.  When the year began, investor confidence was overwhelmed by deepening recessionary conditions, disappointing earnings reports and guidance, continued financial system stress, uncertainty as to the effectiveness of government financial rescue and economic stimulus plans, and the higher tax and deficit implications of an particularly expansive fiscal 2010 federal budget proposal.

Stock prices turned higher in early March following comments by major bank CEOs indicating profitable operations during the first two months of the year.  Market gains continued through September, supported initially by investors’ willingness to focus on early signs of encouragement which were gradually confirmed in data showing evidence of global economic stabilization and recovery.  The rally stalled during October, however, on investor concerns over the sustainability of economic recovery following 3.5% third quarter real GDP growth when levels of monetary accommodation and fiscal stimulus programs are gradually removed.  Investor sentiment turned positive again in early November as prospects of continued recovery following the third quarter real GDP rebound was supported by positive economic data.  But in mid-November stock prices flattened out for several weeks following a warning by U.S. Federal Reserve Chairman Bernanke, of a weakened economic rebound due to high unemployment, tepid bank lending and problems in commercial real estate.  Indices moved higher later in December on positive economic releases that included consumer spending, consumer confidence, holiday retail sales, durable goods and capital equipment orders, low core inflation and declining jobless claims.

Sectors that contributed to the Fund’s performance were telecommunication services, financials, energy, information technology, consumer discretionary, consumer staples, industrials and utilities.  Sectors that detracted from the Fund’s performance were materials and healthcare.  Companies that contributed to the Fund’s performance were Sprint Nextel Corp., Apple Inc., Macy’s Inc., Staples Inc. and Applied Materials Inc.

Significant purchases during the year included Macy’s Inc., Dell Inc., Adobe Systems Inc., Viacom Inc., Electronic Arts Inc. and UnitedHealth Group Inc.  Significant sales during the year included Dell Inc., Adobe Systems Inc., CVS Caremark Corp., Intel Corp., Morgan Stanley, Sprint Nextel Corp. and American Express.

Percent changes in sector and cash weightings during the year were materials, up 3.0%; energy, up 2.8%; industrials, up 1.6%; financials, up 0.2%; consumer discretionary, unchanged; utilities, unchanged; telecommunication services, down -0.1%; healthcare, down -1.2%; information technology, down -1.2%; cash, down -2.2%; and consumer staples, down -2.9%.

Overall sector positioning continues to be more reflective of a dynamic process that seeks fundamentally attractive businesses selling at reasonable valuations than a macro based, top down strategy.  Currently, this discipline has produced overweighted Fund positions in consumer discretionary and healthcare with below market exposure in consumer staples and utilities.

JNL/Eagle Core Equity Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	33.83%
5 year	-0.96%
10 year	-0.97%

Average Annual Total Returns for Class B Shares
1 year	34.26%
5 year	-0.74%
Since Inception	-0.16%
(Inception date March 5, 2004)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Eagle SmallCap Equity Fund

Eagle Asset Management, Inc.

Bert L. Boksen & Eric Mintz

Objective:

The investment objective of the JNL/Eagle SmallCap Equity Fund is long-term capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 35.52% for Class A shares compared to 34.47% for the Russell 2000 Growth Index.  Outperformance resulted from investments in more cyclical investments that participated in 2009’s strong rally. Growth outperformed value during the year and cyclicals were notable outperformers.

On an absolute basis, energy, materials, consumer staples, consumer discretionary and information technology were each up more than 50% in 2009.  On a relative basis, energy, materials and consumer staples were positive contributors.  On an absolute basis, financials traded down during the year; healthcare, financials and information technology detracted from relative returns.

Our strongest stocks for the year included Huntsman Advanced Materials LLC (“Huntsman”), Rovi Corp. (“Rovi”) and American Medical Systems Holdings Inc. (“American Medical Systems”).  Chemical producer Huntsman remains our best overall stock for 2009.  This highly cyclical company rose in anticipation of an economic recovery and due to its cost reduction program.  Rovi, a provider of solutions that enable digital product protection, had strong performance due to excitement about a significant new contract, strong financial performance and increased guidance.  American Medical Systems benefitted from increased new product flow, increased operational efficiency and the addition of new management.

Lagging stocks for the year were EMS Technologies Inc. (“EMS Technologies”), Thoratec Corp. (“Thoratec”) and Northwest Pipe Co. (“Northwest Pipe”).  EMS Technologies declined on lower than expected earnings and muted guidance.  The stock remains in the Fund as an important change in management has been implemented.  Thoratec traded down slightly but it had a particularly strong effect overall due to its heavy weighting in the Fund.  The stock remains in the Fund as the company is expected to outperform due to continued strong financial results and potential pipeline announcements.  Northwest Pipe fell after the company pre-announced disappointing third quarter results and delayed filing its financial reports due to an ongoing investigation in accounting irregularities.  The stock remains in the Fund due to favorable prospects for its end markets in 2010 and the belief that the stock’s current valuation more than adequately discounts the risks associated with an accounting restatement.

Significant purchases during the year included Varian Semiconductor Equipment Associates Inc., DTS Inc., Informatica Corp., ON Semiconductor Corp., FormFactor Inc., Coinstar Inc., Regal-Beloit Corp., Ritchie Bros. Auctioneers Inc., Landstar System Inc. and Teradyne Inc.  Significant sales during the year included FTI Consulting Inc., WMS Industries Inc., Factset Research Systems Inc., Intrepid Potash Inc., John Wiley & Sons Inc., Corrections Corp. of America, Investment Technology Group Inc., Texas Industries Inc., ResMed Inc. and Ameron International Corp..

During the year, the Fund increased weightings in information technology in line with the appreciation of the benchmark.  In financials, the Fund moved from an underweight position to a slight overweight and in industrials the Fund went from a significant underweight to an in line position.  The Fund decreased weightings in healthcare from an overweight position to in line with the benchmark.

We believe that continued government stimulus, stabilization of home prices, strong growth from emerging markets and easy economic comparisons are expected to lead to further strength in equity markets.  We believe government policy is expected to keep short-term rates low through the mid-term elections with some increase in long-term rates.  Over the long-term, we believe government spending is expected to be somewhat inflationary and, therefore, the Fund has established a modest overweight in hard commodities.

JNL/Eagle SmallCap Equity Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	35.52%
5 year	2.89%
10 year	3.61%

Average Annual Total Returns for Class B Shares
1 year	35.76%
5 year	3.10%
Since Inception	4.22%
(Inception date March 5, 2004)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Franklin Templeton Global Growth Fund

Templeton Global Advisors Limited

Team Management

Objective:

The investment objective of the JNL/Franklin Templeton Global Growth Fund is long-term capital growth.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 31.06% for Class A shares compared to 29.99% for the MSCI World Index.

While the Fund’s recent bias towards well capitalized, cash generating stocks on the higher end of the quality spectrum was out of step with the equity market risk rally in 2009, the Fund benefited from our careful stock selection and preference for globally diversified businesses.

Equities entered 2009 pricing in a possible economic depression and systemic solvency crisis, scenarios that were ultimately averted by one of the most aggressive global policy responses in history.  Central bankers lowered interest rates and expanded access to credit in 2009, boosting the fortunes of lower quality companies and emerging market stocks with intrinsic growth potential.

All regions and sectors delivered double digit absolute gains during the year under review.  Asian holdings led regional performance as a result of both the Fund’s significant underweighting in the weak Japanese market and its overweighting in stronger emerging Asian markets.  Overweighted positions in companies domiciled in some mature western European countries detracted from returns in 2009.

From a sector perspective, consumer discretionary had the Fund’s largest overweighting and also some of the best performing stocks.  Retail and automotive stocks in particular rebounded as policymakers slashed borrowing costs and incentivized consumption.  Information technology holdings also outperformed, and the Fund maintained above benchmark exposure to the sector.  We believe many companies in this sector offer a superb balance sheet profile and an ability to generate tremendous amounts of free cash flow for growth, acquisitions or shareholder returns.  The Fund also maintained an overweighting in the healthcare sector, though those holdings detracted from performance as the rally favored stocks more leveraged into an economic recovery.  Still, fundamentals remain sound in select sector stocks and average valuations are near 15 year lows, creating what we believe are compelling current buying opportunities for long-term investors.

The materials sector was less fundamentally attractive to us within our disciplined valuation framework, where valuations are again approaching the inflated levels reached in the lead up to the financial crisis. The Fund’s materials underweighting detracted from performance in 2009 as commodities delivered their best annual gains on record.  Resurgent financials also underperformed due to the Fund’s underweighting in a sector that remains fraught with balance sheet and regulatory risk.  The Fund was rewarded, however, for its underweighting in the defensive consumer staples sector, where rising input costs and increasing competition from private label brands has made it difficult to find long-term bargains amid current valuations.

The Fund’s holdings in U.S. based clothing retailer Chico’s FAS Inc. and South Korean auto manufacturer Hyundai Motor Co. both more than tripled in value.  Our technology holdings outperformed in 2009, led by South Korean electronics manufacturer Samsung Electronics Co. Ltd., which benefited from a cyclical demand recovery in the latter part of the year.

Notable acquisitions during the year included U.S. oil company Chevron Corp., U.S. cable operator Time Warner Cable Inc. and Bermudan reinsurer RenaissanceRe Holdings Inc.  We also added to existing holdings in Swiss pharmaceutical company Roche Holding AG and UK telecommunications operators Vodafone Group Plc and Singapore Telecommunications Ltd.  Notable liquidations included the Royal Bank of Scotland Group Plc and Finnish paper company UPM-Kymmene Oyj.

We believe continued leadership from the market’s riskiest stocks is most likely unsustainable; valuations of higher quality stocks remain depressed relative to low-quality stocks, creating discounted entry points into the investments that we believe are likely to survive an uncertain recovery and thrive in a more discriminating market environment.

JNL/Franklin Templeton Global Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	31.06%
Since Inception	-7.99%
(Inception date January 16, 2007)

Average Annual Total Returns for Class B Shares
1 year	31.21%
Since Inception	-7.78%
(Inception date January 16, 2007)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Franklin Templeton Income Fund

Franklin Advisers, Inc.

Edward D. Perks & Charles B. Johnson

Objective:

The investment objective of JNL/Franklin Templeton Income Fund is to maximize income while maintaining prospects for capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmarks by posting a return of 32.92% for Class A shares compared to 26.46% for the S&P 500 Index and 5.93% for the Barclays Capital U.S. Aggregate Bond Index.  An equity market rally, strong corporate bond performance and a heavier weighting in corporate bonds versus stocks were factors affecting the Fund’s performance.

During the year, long-term interest rates increased as the economy began to recover and the financial system moved away from the turmoil that engulfed markets beginning in the second half of 2008.  Despite the modest increase in long-term interest rates during the year, corporate bonds rallied as credit spreads contracted from their extremely elevated levels on December 31, 2008.

Corporate bonds, particularly high yield bonds, surged during the year as companies that survived the credit crisis began to access the capital markets.  One of the Fund’s largest holdings at the start of the year, Ford Motor Credit Co., advanced as automotive finance companies maintained access to funding.  Additionally, the overall automotive sector improved partly due to government involvement through the “cash for clunkers” program, which helped stimulate auto industry sales.  The Fund also benefited from the strong performance of other high yield issuers such as iStar Financial Inc., Tenet Healthcare Corp. and Charter Communications Holdings Inc.

Energy sector holdings also recovered sharply with strong gains realized by companies involved in the oil and gas production and pipeline business including Chesapeake Energy Corp., PetroHawk Energy Corp. and El Paso Corp. As the economy emerged from recession, commodity prices improved and helped drive positive results and, we believe, a more favorable outlook for companies in the sector.

With a strong recovery in credit and equity markets, convertible securities delivered substantial gains, and the Fund’s holdings in convertible bonds and convertible preferred stocks were strong contributors to overall performance.  Real estate sector holdings Vornado Realty Trust and Duke Realty Corp. advanced as property and real estate financing markets began to recover.  Technology holdings in Advanced Micro Devices Inc. and Maxim Integrated Products Inc. were strong as demand for semiconductors improved.

Although some common stock holdings, such as Southern Co., Pfizer Inc. and Ameren Corp., detracted from performance, other positions including Merck & Co. Inc., Canadian Oil Sands Trust and JPMorgan Chase & Co. delivered strong gains.

During the year, we bought new holdings in Ford Motor Credit Co. and HCA Inc. corporate bonds, Exxon Mobil Corp. common stock and Citigroup preferred stock.  For many of our fixed income holdings, significant price increases provided us with an opportunity for profit taking, and we sold Sempra Energy, Dominion Resources Inc. and Illinois Power Corp. bonds.

The Fund began the year with a greater weighting in fixed income securities, largely corporate bonds, than in equities, and rapidly increased that weighting to take advantage of what we considered attractive valuations and a favorable risk adjusted return profile offered by the sector relative to other asset classes.  As we ended the year, the Fund took advantage of several profit taking opportunities in corporate bonds, and thus shifted toward a more balanced portfolio of equity and fixed income securities.

JNL/Franklin Templeton Income Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	32.92%
Since Inception	1.19%
(Inception date May 1, 2006)

Average Annual Total Returns for Class B Shares
1 year	33.07%
Since Inception	1.39%
(Inception date May 1, 2006)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Franklin Templeton Mutual Shares Fund

Franklin Mutual Advisers, LLC

Peter A. Langerman, Deborah A. Turner & F. David Segal

Objective:

The investment objective of the JNL/Franklin Templeton Mutual Shares Fund is capital appreciation, which may occasionally be short-term, and secondarily, income.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 26.74% for Class A shares compared to 26.46% for the S&P 500 Index.

Our inherent investment focus is on buying securities when they are trading at a meaningful discount to our analysis of intrinsic value and selling them as they trade close to that value.  We also buy distressed securities and participate in merger arbitrage and privately negotiated transactions when we believe the investments can generate attractive risk adjusted returns.  As a result, the Fund frequently contains sector and security allocations that are significantly different than those of its benchmark.

The Fund held some currency forwards and a few index puts throughout the year, and also sold some covered call options.  The index puts the Fund owned were listed, exchange-traded broad index puts, and they were used to somewhat hedge a small portion of the Fund against systemic risk to the market.  The index puts had a small negative impact on performance for the year.  Currency forwards are used to somewhat hedge the currency risk of the Fund’s non-U.S. dollar security investments.  As the U.S. dollar depreciated throughout the year versus most other major currencies, the hedges weighed on the Fund’s performance throughout the year.  The Fund managers also sold some covered calls against a few stock positions, which had a minimal negative effect, offset of course by the increase in the prices of the Fund’s underlying stocks.

The year under review was remarkable for the extent of the stress imposed on and absorbed by the global economic infrastructure and the dramatic market rebound from historical lows.  The global banking system’s survival came into question, home prices dropped precipitously and economic paralysis spread.

As the U.S. and other global economies climbed out of recession, the rebound in equity and credit markets was driven by a sequence of factors: the mere survival of the banking system; generally positive results of government “stress tests” of major financial institutions; signs of stabilization in the U.S. housing market; improving credit conditions; and resumption of economic activity.

As the stock market broadly rebounded in 2009, many Fund investments increased in value.  Microsoft Corp. shares performed well as cost discipline throughout the company positioned it well for the rebound.  Virgin Media Inc.’s management sought to improve efficiencies, and the company’s second quarter 2009 earnings reflected continued improvement in subscriber metrics and earnings growth.  The Fund’s investment in International Paper Co. appreciated as the company expanded margins partly through productivity initiatives, helping it deliver strong operating results and free cash flow.

Some of the Fund’s investments did not fare as well and lost value during 2009.  Eastman Kodak Co.’s stock depreciated as operational losses and revaluation of post retirement assets and liabilities significantly eroded its book value in the first quarter.  Supermarket operator Kroger Co. did not perform well in 2009 as food price deflation in the second half of the year contributed to lower than expected operating earnings. The Fund’s Deutsche Post AG holdings declined in value during the time the Fund held them, primarily due to concerns about the negative outlook for global growth.  In addition, concerns grew about Deutsche Bank AG’s ability to close the Deutsche Postbank AG sale and rumors of a dividend cut.  The Fund sold its position prior to the dividend cut announcement in early 2009.

New Fund positions included common stock Wyeth, which was later liquidated as it was acquired by Pfizer Inc., Vodafone Group Plc, Altria Group Inc., Barclays Bank Plc, Cable & Wireless Plc, Pepsi Bottling Group Inc. and preferred stock of Citigroup.  The Fund liquidated its positions in several holdings, the largest of which included the common stock of Comcast Corp., Qwest Communications International Inc., United Technologies Corp., Time Warner Inc. and Constellation Energy Group Inc.

The Fund began the year with slightly under 6% in cash and dropped down to as low as slightly more than 2% by the end of March, as the Fund became nearly fully invested.  As securities appreciated, the Fund’s sector weightings changed a bit through year end, but none by more than 2% of the Fund’s total net assets with the exception of the Fund’s consumer discretionary sector weighting which dropped by approximately 4% over the course of the year as the Fund took profits on several related positions.  The cash weighting, due to the sale of some equity holdings and appreciated distressed investments, as well as the completion of some merger arbitrage investments, increased to approximately 12% of the Fund’s total net assets by year end.  Given the dramatic nature of the sell off in the equity markets, we anticipate continued opportunities in the area of undervalued equities as 2010 unfolds.  Merger and acquisition activity increased over the latter part of 2009, and we expect it to accelerate further.

Formidable headwinds remain, as the reserve currency status of the U.S. dollar continues to be questioned, as does the ability of the U.S. Federal Reserve to scale back monetary stimulus without slowing the economic recovery.  Imbalances and upheavals often generate mispriced securities, and that volatility should help us find value for our shareholders.

JNL/Franklin Templeton Mutual Shares Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	26.74%
Since Inception	-7.72%
(Inception date January 16, 2007)

Average Annual Total Returns for Class B Shares
1 year	27.00%
Since Inception	-7.55%
(Inception date January 16, 2007)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Franklin Templeton Small Cap Value Fund

Franklin Advisory Services, LLC

Team Management

Objective:

The investment objective of the JNL/Franklin Templeton Small Cap Value Fund is long-term total return.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of  33.80% for Class A shares compared with 27.68% for the Russell 2500TM Value Index.

During the 12 months under review, the equity markets hit a low in early March and quickly rebounded as investors began to see signs of economic recovery.  In this environment, stock markets made strong gains for the year.  Among small cap stocks, growth outpaced value as investor risk aversion began to subside.  All major sectors in the Fund’s benchmark posted positive results, with the most significant gains in consumer discretionary, information technology and materials.

Contributors to Fund performance included the consumer discretionary sector, particularly the automobile industry.  The industrials sector boosted performance with notable results in the building products and machinery industries.  In the energy sector, the energy equipment and services industry helped results.  The financials sector detracted from performance mainly due to holdings in the thrifts and mortgage finance industry.

Fund performance benefited from several consumer discretionary sector holdings, including Thor Industries Inc., Group 1 Automotive Inc., J.C. Penney Co. Inc. (“J.C. Penny”), Men’s Wearhouse Inc., La-Z-Boy Inc. and Autoliv Inc. Materials sector holdings Reliance Steel & Aluminum Co. and Westlake Chemical Corp. contributed to returns, as did industrials sector holding Universal Forest Products Inc.

Detractors from performance included several financials sector positions, including TrustCo Bank Corp., Montpelier Re Holdings Ltd., RLI Corp., StanCorp Financial Group Corp. and Corus Bankshares Inc. Industrials sector holdings Wabash National Corp., Gibraltar Industries Inc. and SkyWest Inc. detracted from results, as did General Maritime Corp. in the energy sector.

Significant purchases during the year included new positions in Pharmaceutical Product Development Inc., Gardner Denver Inc., J.C. Penney and Ceradyne Inc. Other significant purchases included adding to holdings in Protective Life Corp., Rowan Cos. Inc., Trinity Industries Inc. and Steris Corp.  During the year, the Fund liquidated positions in Monaco Coach Corp., General Maritime Corp., Syncora Holdings Ltd. and Corus Bankshares Inc., among others.

The Fund will continue to invest in small cap companies we believe are selling below their underlying worth.  Our strategy is to buy and hold fundamentally sound companies for five years or more on average.  We purchase securities at what we consider attractive prices, often when they are out of favor with other investors.  We select securities without regard to benchmark comparisons, and we aim for long-term results.  We are confident that over time the market will provide opportunities for us to execute our strategy with success.

JNL/Franklin Templeton Small Cap Value Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	33.80%
Since Inception	1.84%
(Inception date May 2, 2005)

Average Annual Total Returns for Class B Shares
1 year	33.96%
Since Inception	2.04%
(Inception date May 2, 2005)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Goldman Sachs Core Plus Bond Fund

Goldman Sachs Asset Management, L.P.

Team Management

Objective:

The primary investment objective of the JNL/Goldman Sachs Core Plus Bond Fund is to seek a high level of current income. As a secondary objective, the Fund seeks capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 14.16% for Class A shares compared to 5.93% for the Barclays Capital U.S. Aggregate Bond Index.  The primary factors that influenced the Fund’s performance relative to its benchmark were an allocation to riskier assets, such as credit sensitive mortgages and corporate bonds.

The U.S. economy appears to be back on the road to recovery after suffering its worst recession in the post war era. The combination of improving financial conditions and stability in economic data led to a drastic increase in demand for risky assets during the year.  All spread sectors significantly outperformed Treasuries in 2009.  The largest outperforming sectors were high yield corporate bonds and commercial mortgage-backed securities (“CMBS”), which returned 58.21%, as measured by the Barclays Capital High Yield Index, and 28.45%, as measured by the Barclays Capital CMBS Index, respectively, in 2009. Many spread sectors have gained back their 2008 underperformance as liquidity and risk appetite returned to the market. Interest rates rose over the year, with the 2-year Treasuries increasing 37 basis points (“bps”) to 1.14% and 10-year Treasuries increasing 163 bps to 3.84%. Short-term rates remained anchored by the U.S. Federal Reserve Board (“Fed”), which continues to commit to an extended period of low interest rates.

Top-down strategies contributed to performance during the year. In addition, duration positioning positively impacted the Fund’s returns, as did cross sector positioning.  With regard to our duration and yield curve positioning, the Fund’s fundamental short position in the long end of the curve contributed as rates rose across the curve.  Cross sector positioning was also a key contributor. The Fund’s strategic and tactical overweight to spread sectors relative to the benchmark was a key driver of performance.  An overweight exposure to credit sensitive mortgages contributed positively to performance as non-agency mortgages posted strong returns in both July and September. In addition, an overweight exposure to the corporate sector proved beneficial as the sector outperformed in 2009 as spreads tightened.

Bottom-up security selection in the securitized and government agency sectors were the primary contributors to the Fund’s performance.  Security selection within the collateralized sector was positive, due to our focus on the most senior tranches of credit sensitive mortgages.  Security selection within the government/agency sector also had a positive impact on performance, such as our preference for Treasury Inflation-Protected Securities (“TIPS”) and government-guaranteed securities.  This was slightly offset by corporate security selection.

We are targeting a short duration position, as we expect a very large issuance of longer dated Treasuries.  In addition, with the support from central bank buying greatly reduced, the risk of higher long dated yields remains.  Within the mortgage sector, we are overweight non-agency mortgages and favor deeply distressed senior non-agency residential mortgage-backed securities.  Specifically, we like senior tranche non-agency adjustable rate mortgages (“ARM”) backed by Alt-A and Option ARM collateral.  We also favor corporates, as we believe spreads remain high relative to default and recovery rates.  Within the corporate sector, we are negative on industries that are highly susceptible to a growth slowdown.  Rather, we favor defensive sectors, such as energy, pipelines and cable, and are avoiding cyclical sectors, such as consumer products, retail and technology.  We are overweight financials and focusing on large property and causality insurers and banks.  Within banking, we are focusing on large money center banks.

JNL/Goldman Sachs Core Plus Bond Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	14.16%
5 year	4.47%
10 year	6.48%

Average Annual Total Returns for Class B Shares
1 year	14.47%
5 year	4.71%
Since Inception	4.94%
(Inception date March 5, 3004)

Goldman Sachs Asset Management, L.P. assumed portfolio management responsibility on April 30, 2007.

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Goldman Sachs Emerging Markets Debt Fund

Goldman Sachs Asset Management, L.P.

Team Management

Objective:

The investment objective of the JNL/Goldman Sachs Emerging Markets Debt Fund is a high level of total return consisting of income and capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 23.06% for Class A shares compared to 21.98% for the JPMorgan Government Bond Index-Emerging Markets (“GBI-EM”) Global Diversified Index.

Based on our proprietary factor based risk and attribution model and on a total return basis, contributors to performance included the Fund’s active currency exposure to the Brazilian real, the Peruvian new sol and the Indonesian rupiah. Also contributing to performance was its country and security selection of Russian and Turkish local market debt. Detractors from performance included the Fund’s country and security selection of local market debt from Mexico, Indonesia and Peru.

The Fund does not employ derivatives in order to gain leverage or to generate short term, tactical returns. Derivatives used in the Fund are used to gain access to markets and trade ideas in the most efficient manner.  The performance of the derivatives themselves did not significantly result in contributors or detractors from the Fund’s performance, however derivatives may have been used as an implementation vehicle for trade ideas and those trades ideas would have contributed or detracted from the Fund’s performance.

Emerging market debt spreads on the JPMorgan Emerging Market Bond Index (“EMBI”) Global Diversified Index ended the year more than 300 basis points (“bps”) narrower, reaching their tightest levels since June 2008. The degree of spread tightening in 2009 was largely driven by original wide spread levels. In hindsight, 2009 was a year where being long beta did indeed deliver excess returns. The JPMorgan EMBI Global Diversified Index posted a 29.82% return during the year, its second best performance in history (1996 posted a 37.75% return). With spreads at 288 bps at the end of December, they were less than half of where they started 2009 (748 bps). With the degree of dispersion in spreads across countries much narrower today, with no imminent catalyst to break out of recent ranges, and with less obvious points of dislocation, we believe 2010 will demand even more fastidious emphasis on country and security selection to deliver excess returns.

In local markets, the JPMorgan GBI-EM Global Diversified Index posted a 21.98% return in 2009 (in unhedged USD terms). This gain was propelled by a 16.78% return from foreign exchange appreciation and bolstered by a 5.20% contribution from rate declines. Historically, looking at cumulative returns since the inception of the JPMorgan GBI-EM Global Diversified Index in 2002, foreign exchange has contributed 60-70% of overall returns and risk, with the residual driven by rates. We anticipate currency returns and risk will be the dominant determinant of overall local market exposure in the medium term, as the foreign exchange story should remain well underpinned by relative growth differentials, capital flows and carry, which all favor emerging markets over industrialized countries.  In contrast, the rate story remains less compelling, given relative low excess risk premia and, as emerging market economies recover more quickly, monetary policy is likely to normalize ahead of monetary policy in the industrialized world. Still, we think there is room for rate declines in the near future, as some curves are pricing in more aggressive rate hikes than we think will materialize.

On a total return basis, the Fund’s country and security selection sectors detracted from performance while active currency exposure contributed to overall returns.

Our Fund has historically benefited from a bottom-up approach based on country and security selection and evaluating the disparity between fundamentals embedded in the price and our view on fundamentals.  While global macro themes have also been important, country specific themes have played a driving role.  We focus on the following themes: dominance of macro themes, flow of investment capital, rebalancing of external accounts across borders and trajectory of growth, to drive the basic strategy.  The Fund management team is focusing on these themes to balance out bottom-up country views.

JNL/Goldman Sachs Emerging Markets Debt Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	23.06%
Since Inception	15.12%
(Inception date October 6, 2008)

Average Annual Total Returns for Class B Shares
1 year	23.38%
Since Inception	15.36%
(Inception date October 6, 2008)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Goldman Sachs Mid Cap Value Fund

Goldman Sachs Asset Management, L.P.

Team Management

Objective:

The investment objective of the JNL/Goldman Sachs Mid Cap Value Fund is long-term capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of  32.65% for Class A shares compared to 34.21% for the Russell Mid Cap® Value Index.

Throughout this market cycle, a disciplined focus on quality, cash generating companies with strong balance sheets and disciplined management teams has led to strong, long term performance.  The Fund’s quality biased approach served well as markets declined in the first quarter of 2009, but was challenged in the subsequent euphoric environment post March 9.  Despite the extreme rally that was particularly pronounced in the mid cap space, the Fund’s strategy managed to outperform its benchmark for the fourth quarter and finished slightly below its benchmark for the year.

In 2009, U.S. equity markets oscillated between extremes of fear and exuberance.  The credit crisis from 2008 spilled into the first quarter, as the nation’s financial system experienced an extremely challenging period.  As governments around the world coordinated a response to the financial crisis, extinction risk was removed for many companies.  Stocks rallied sharply off of the March 9th trough into the second and third quarters.  Propelled by investors’ renewed appetite for risk, markets were driven by the most battered names from the first quarter.  Markets continued to experience gains through the year end, albeit less pronounced.  The economy showed encouraging signs of stabilization and improvement.  However, despite some positive economic data, concerns about the elevated 10% unemployment rate, the U.S. Federal Reserve Board’s outlook on interest rates, and the strength of the U.S. dollar continue to weigh on the markets.

The S&P 500 Index returned 26.46% in 2009.  All sectors ended the year in high positive territory, and growth stocks outpaced the gains of value stocks.  Within the value space, mid cap stocks experienced the most dramatic rise in 2009, with gains of over 34% for the year.  Market trends were particularly pronounced in the mid cap value index.  Over 40% of the Fund’s benchmark consists of the consumer discretionary and financials sectors, which climbed over 148% and 91%, respectively, from their March 9th lows.  These sectors contain some of the most credit or economic sensitive companies, including REITs, retailers, autos, media and hotels, many of which rebounded dramatically in the recent risk charged rally despite the absence of catalysts or improving fundamentals.

Stock selection was strong in energy and materials.  In the energy sector, exploration and production companies Whiting Petroleum Corp.’s and Newfield Exploration Co.’s, shares were boosted by the announcement of a major acquisition in the industry signaling potential future consolidation, in addition to improving energy prices during the latter part of the quarter.  Fund performance was boosted by stock selection in materials, driven by stocks tied to an economic recovery and with high operating leverage, such as specialty chemical producer Huntsman Corp.

Select holdings in consumer discretionary and technology detracted from performance.  Shares retailers, including J.C. Penney Co. Inc. declined during the reporting period due to market concerns over consumer sales trends.   Holdings in PPL Corp. and Entergy Corp.  also detracted from performance.  While both companies lagged due to a combination of cool weather, weak industrial sales and lower power prices, Entergy Corp. also delayed a spin-off of its nuclear business.  Entergy Corp. was sold in the fourth quarter.

The Fund initiated positions in Boston Properties Inc. and Newfield Exploration Co.  Boston Properties Inc. has a strong balance sheet and an experienced management team that we believe will effectively navigate through the current, challenging environment.  Newfield Exploration Co. is an oil and gas company with operations in the U.S.  Recently, the company has focused its strategy of divesting from its high cost, short lived assets and increased development of properties with long production lives and lower costs.  In our view, the company is currently trading at an attractive valuation that does not reflect this transformation.  H&R Block Inc. and Becton Dickinson & Co. were sold.  We believed competitive pressures had been negatively impacting H&R Block Inc.’s pricing power and market share.  Becton Dickinson & Co. hit our price target.

We believe that the current environment presents an opportunity to add great franchises to the Fund at compelling valuations, as many companies with strong balance sheets and disciplined management have lagged in the recent rally.  Within financials, we continue to favor insurance companies such as,  WR Berkley Corp., which provide the opportunity for pricing improvement and market share gains due to decreased competition.  We also continue to favor asset managers and diversified financial services companies such as, Principal Financial Group Inc.,  who have strong capital positions and should benefit from an improving economic environment.  In the energy space, we added to Whiting Petroleum Corp. and Dril-Quip Inc. to increase exposure to oil and oil service companies that we believe should benefit from the favorable near term supply and demand imbalance in oil.

During the fourth quarter, we took profits on select names that had benefited from the recent stock price strength.  We reduced our exposure in consumer discretionary stocks, which included selling out of media stock Viacom Inc., which performed well during the quarter and the year.  We trimmed our position in natural gas producer, Range Resources Corp., a former core energy holding.  We took some profits on Newfield Exploration Co., which remains one of our highest conviction names.

Looking into the U.S. equity market in 2010, we anticipate finding ample opportunities to buy quality businesses at deeply discounted valuations.  Many quality stocks are inexpensive relative to their lower quality peers; a valuation gap we expect to narrow over time as we enter into a more normalized environment.  Earnings should accelerate due to economic improvement and unprecedented company level operating leverage driven by aggressive cost cutting.  Low borrowing costs should be a further tailwind to earnings.  As investors refocus on fundamentals, we believe that 2010 will be a fertile environment to generate alpha.  We continue to anticipate increased stock level differentiation going forward, distinguishing quality companies with robust business models from those likely to remain challenged.  We see prospects in select companies that are poised to benefit from an environment of lower competition, higher pricing and improved market share.  We maintain our focus on quality companies trading at compelling valuations, and believe that this long term discipline will help us navigate volatile markets.

JNL/Goldman Sachs Mid Cap Value Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	32.65%
Since Inception	3.02%
(Inception date May 2, 2005)

Average Annual Total Returns for Class B Shares
1 year	33.09%
Since Inception	3.23%
(Inception date May 2, 2005)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Ivy Asset Strategy Fund

Ivy Investment Management Company

Michael L. Avery and Ryan F. Caldwell

Objective:

The investment objective of the JNL/Ivy Asset Strategy Fund is to seek high total return over the long-term.

Portfolio manager Commentary:

For the period September 28, 2009 through December 31, 2009, the Fund underperformed its benchmark by posting a return of 4.10% for Class A shares compared to 5.46% for the S&P 500 Index.

The Fund’s weaker performance during the period was attributable to an untimely underweight in consumer staples and industrials, and, to a lesser extent, technology stocks, which all performed well during the period.  A slight underweight in financials also hampered performance.

On a positive note, the Fund benefited during the period due to a significantly greater exposure to the materials sector and a healthy relative overweight in selected consumer discretionary stocks.  A strategic and meaningful underweight exposure in the healthcare sector, which struggled due to uncertainty surrounding healthcare reform and intense regulatory pressures, also boosted performance.  Additionally beneficial was the Fund’s smaller relative stake in energy and telecommunication services stocks and its complete lack of exposure to utilities.  Although the Fund was somewhat underweight in financials, better stock selection in this arena proved additive.

Superior stock selection in several other sectors worked to the Fund’s favor.  Better picks in the overweight materials sector, along with choices in the consumer staples and healthcare sectors added meaningfully to performance.

In an attempt to increase the Fund’s exposure to China and participate in market gains while protecting shareholders from downside risks, the Fund established a position in equity option securities at approximately zero cost.  This position protected shareholders from 5% downside while providing the opportunity to benefit if the market rose up to 15%.  Because the market level at year-end was relatively unchanged from the time that the Fund entered into this position, these options expired with little benefit or cost to the Fund.

During the period, the U.S equity market extended the rebound that began in March, and global stocks did even better than U.S. equities, due to renewed strength in developed markets and a powerful rise in emerging markets that has, in fact, caused some market pundits to become concerned about a new asset bubble.  Investors who regained their appetite for risk as recession concerns diminished, continued their reentry into global markets.  The final quarter of 2009 saw improvements in rising home sales, better retail  sales, strengthening industrial activity, less negative employment trends and continued low interest rates as the U.S. Federal Reserve (“Fed”) kept the Feds Fund rate accommodative.

Manufacturing indices from Europe to Asia are showing positive momentum and reflect broad manufacturing recovery.  Auto sales in places such as China are surging as a burgeoning Chinese middle class demonstrates its growing buying power.  Strong investment in infrastructure has also recovered, as have prices of commodities that support infrastructure build out.  These trends benefited the Fund’s exposure to the materials and consumer discretionary sectors, in particular.  Most notable during the period was the improving strength of the dollar, which became an issue in late November and early December.  This was a seminal event in our view, driven by improving investor sentiment, the tendency for mangers and investors to rebalance their portfolios at year end, particularly outside the United States.

Sectors that contributed to performance during the period included energy, materials, consumer staples, healthcare, financials and information technology. Sectors that detracted from performance include industrials, consumer discretionary, telecommunication services and utilities.

The greatest individual contributors to the Fund’s performance during the period were gold bullion, China Life Insurance Co. Ltd., Visa Inc., Industrial & Commercial Bank of China and Hyundai Motor Co.  The greatest individual detractors were Weatherford International Inc., Wynn Resorts Ltd., Sands China Ltd., Jacobs Engineering Group Inc. and Monsanto Co.

At year end, approximately 72% of the Fund’s assets were in equities, 15% was in gold bullion and the remaining 13% was net cash.

Average Annual Total Returns for Class A Shares
Since Inception	4.10%
(Inception date September 28, 2009)

Average Annual Total Returns for Class B Shares
Since Inception	4.10%
(Inception date September 28, 2009)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/JPMorgan International Value Fund

J.P. Morgan Investment Management Inc.

Jeroen Huysinga and Gert Woort-Menker

Objective:

The investment objective of the JNL/JPMorgan International Value Fund is to provide high total return from a portfolio of equity securities of foreign companies in developed and, to a lesser extent, developing markets.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 30.17% for Class A shares compared to 34.23% for the MSCI EAFE Value Index.

At the sector level, the Fund’s holdings in basic industries, transport services and consumer cyclicals contributed to outperformance, while underweights in banks, finance and insurance weighed on relative returns during the year.

Looking at regions, stocks in the emerging markets and a slight underweight in the UK added value, while holdings in Europe ex-UK and an underweight in the Pacific Rim detracted from performance.

2009 will long be remembered for how the global economy pulled back from the brink of collapse. Less than a year ago, investors were staring at the prospect of a systemic meltdown.  Today, thanks in large part to policymakers’ aggressive response to the crisis, the global banking system has been stabilized, financial markets are functioning normally and the world economy is on the mend with most of the G7 nations having emerged from recession.  Markets have responded positively to these developments.  The Fund’s benchmark rose by more than 90% from its March 9 low, fuelled by the prospect of an economic pick up.

Nintendo Co. Ltd., the Japanese electronic game maker, had a difficult year, reporting a 52% year over year decline in earnings for the fiscal first half ended September 30.  Weak consumer demand and increased competitive pressures undermined the company’s profits.  Price cuts by rival gaming console makers Sony Corp. and Microsoft Corp., combined with a shortage of new blockbuster titles, have reduced sales of the Wii, forcing Nintendo Co. Ltd. to cut its own prices.  Meanwhile, the DS handheld unit increasingly has contended with smart phones, which can download games online.  Despite the difficult environment, the company remains profitable and has a rock solid balance sheet.

Hon Hai Precision Industry Co. (“Hon Hai”), the Taiwanese electronics contract manufacturer, performed well during the year. The stock surged on the back of better than expected earnings and signs of a turnaround in demand.  Despite the severity of the downturn, Hon Hai generated a notable net profit in the first nine months of 2009, up from the previous year.  In response to the economic crisis, management moved aggressively to cut costs through employee layoffs, consolidating facilities and curbing capital expenditures.  In recent months, demand for PCs and cell phones have started to recover, which should benefit Hon Hai, one of the world’s most successful contract manufacturers of electronic products, a supplier of iPhones for Apple Inc. and PS3 gaming consoles and notebook computers for Sony Corp. and Hewlett-Packard Co.

The Fund is driven by a bottom-up strategy that seeks to add value by identifying the most attractive value stocks within each global sector.  Stocks are purchased and sold based on valuation signals, as measured using a proprietary dividend discount model, and the existence of a timely catalyst that will unlock the stock’s inherent value.

Major transactions during the year included purchases of  BP Plc, Siemens AG, Royal Dutch Shell Plc, ING Groep NV, Sumitomo Mitsui Financial Group Inc. and UniCredit SpA and sales of Honda Motor Co. Ltd., E.ON AG, Mitsubishi UFJ Financial Group Inc., Credit Suisse and Australia & New Zealand Banking Group Ltd.  BP Plc, ING, Credit Suisse and  Australia & New Zealand Banking Group Ltd. were bought and sold during the year.

Entering 2010, one may reflect on whether equity markets can continue to build on gains seen in 2009.  It is certainly not out of the question.  While funds have flowed out of cash in recent months, most have been diverted into fixed income instruments.  Only a small portion has gone into equities.  That suggests a significant amount of “fire power” remains and is capable of fuelling further gains in stocks.  Whether that fire power is actually put to use, however, is a different matter.

While economic conditions will continue to improve, we believe that markets are reaching a point where further gains in share prices increasingly must be justified by evidence of improving

fundamentals. Much of the fiscal and monetary stimuli  so instrumental in reviving activity are starting to ebb.  Central banks in Australia, Norway and Israel already have begun to raise interest rates and key emerging markets, such as Brazil, China and India, are implementing administrative measures designed to pre-empt asset bubbles.  The larger, developed economies are not at that point, but concerns about inflation and budget deficits will likely prompt more talk of “exit strategies” as the year progresses.  The central question then becomes: can private demand take up the slack?

In such an environment, stock picking will be key.  Companies that deliver earnings that justify their current valuations could see their stocks rise further.  Those that cannot will be derated.  To that end, we continue to focus on reasonably priced, well managed, profitable companies with solid balance sheets and strong market positions.   We believe such firms are most likely to increase earnings even in the midst of a lackluster economic environment.

JNL/JPMorgan International Value Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	30.17%
5 year	4.83%
10 year	0.68%

Average Annual Total Returns for Class B Shares
1 year	30.60%
5 year	5.08%
Since Inception	6.85%
(Inception Date March 5, 2004)

Past performance is not predictive of future performance.  Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.  Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/JPMorgan MidCap Growth Fund

J.P. Morgan Investment Management Inc.

Christopher M.V. Jones & Tim Parton

Objective:

The investment objective of the JNL/JPMorgan MidCap Growth Fund is to seek capital growth over the long-term.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 42.96% for Class A shares  compared to 46.29% for the Russell Midcap® Growth Index.

Midcap growth managers in general had a difficult year, with only approximately one quarter outperforming the Russell Midcap Growth Index.  The Fund, which seeks high quality growth companies, was negatively impacted as the smallest market capitalization, lowest priced, lowest quality and lowest growth stocks outperformed during the year.

2009 will certainly be remembered as one of the most volatile periods in U.S. equity market history.  The onslaught of continuously poor economic data continued well into 2009 as the U.S. economy experienced a surge in unemployment claims, a wave of announcements on corporate layoffs and an extremely poor level of consumer confidence.

However, U.S. equity markets rebounded strongly from their March 2009 lows as investors began to realize that the banking system was not insolvent and that economic activity was not in a terminal freefall.

Stock selection in the financial services and healthcare sectors detracted from performance, while stock selection in the consumer discretionary sector and a portfolio underweight in the consumer staples sector benefited results.

At the individual stock level, Leap Wireless International Inc. was a top detractor from performance.  The wireless communications carrier was hurt by growing competition in the prepaid wireless market and pricing pressures.

Among the contributors to performance was Amdocs Ltd., a provider of software and services to the communication services industry. The company benefited from stabilization in its discretionary business combined with strong recurring revenues.

Significant purchases during the  year included Cognizant Technology Solutions Corp., Marvell Technology Group Ltd., UnitedHealth Group Inc., WW Grainger Inc. and Education Management Corp.  The top five liquidated positions included ITT Educational Services Inc., Ecolab Inc., Harris Corp., Celgene Corp. and John Wiley & Sons Inc. Over the past year, the Fund increased its consumer discretionary and technology weightings and decreased those in the financial services and healthcare sectors.

The Fund employs a bottom-up approach, seeking to invest in dominant franchises with predictable business models deemed capable of achieving sustained above average growth.  This approach has led to an overweight versus the Fund’s benchmark in the technology and consumer discretionary sectors and an underweight versus its benchmark in the consumer staples and utilities sectors.

JNL/JPMorgan MidCap Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	42.96%
5 year	0.40%
10 year	-7.65%

Average Annual Total Returns for Class B Shares
1 year	43.25%
5 year	0.60%
Since Inception	2.55%
(Inception date March 5, 2004)

J.P. Morgan Investment Management Inc. assumed portfolio management responsibility on December 3, 2007.

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/JPMorgan U.S. Government & Quality Bond Fund

J.P. Morgan Investment Management Inc.

Michael Sais

Objective:

The investment objective of the JNL/JPMorgan U.S. Government & Quality Bond Fund is to obtain a high level of current income.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 3.69% for Class A Shares compared to -2.20% for the Barclays Capital U.S. Government Bond Index.

The Fund’s concentration in agency and non-agency mortgage-backed securities (“MBS”) contributed to outperformance as the benchmark, composed solely of Treasury and agency securities, pulled back, especially late in the year.  In contrast, the Treasury market, spread sectors, and particularly non-agency MBS and collateralized mortgage obligations (“CMOs”), tightened from the historic wide levels reached in late 2008.  The government’s varied stimulus programs helped to return liquidity to the spread sectors, and agency MBS performed well as the U.S. Federal Reserve (“Fed”) continued its purchase program throughout the year, driving spreads tighter.

The contraction in spread levels from what had been historic wide levels drove the capital markets in 2009.  For example, high yield markets, as measured by the Barclays Capital High Yield Index, were up 58.21% and the commercial mortgage-backed security (“CMBS”) sector, as measured by the Barclays Capital CMBS Index, returned 28.45% for the year.

With the Fed maintaining the historically low target of 0.0% - 0.25% throughout 2009, investors in search of yield ventured back into assets that offered more attractive returns.  This shift in investment philosophy drove spread sectors to levels not seen since the summer of 2007.

The Fund’s concentration in agency and non-agency MBS contributed to performance as the benchmark, composed solely of Treasury and agency securities, trailed throughout the year, while mortgage spreads tightened considerably.

At the end of 2008, the Fund had approximately 16% invested in money market funds as a large amount of cash flowed into the Fund in December of that year.  That cash was deployed throughout 2009 to increase allocations in Treasury debt and the MBS sector.  Asset-backed security (“ABS”) and CMBS levels remained roughly the same as at the end of 2008 while the agency allocation was increased slightly during 2009.

JNL/JPMorgan U.S. Government & Quality Bond Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	3.69%
5 year	4.43%
10 year	5.66%

Average Annual Total Returns for Class B Shares
1 year	3.92%
5 year	4.63%
Since Inception	4.23%
(Inception date March 5, 2004)

J.P. Morgan Investment Management Inc. assumed portfolio management responsibility on April 30, 2007.

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Franklin Templeton Founding Strategy Fund

JNL/Mellon Capital Management 10 X 10 Fund

Jackson National Asset Management, LLC

Team Management

JNL/Franklin Templeton Founding Strategy Fund

Objective:

The investment objective of the JNL/Franklin Templeton Founding Strategy Fund is capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmarks by posting a return of 30.13% for Class A shares compared to the 26.46% return for the S&P 500 Index and 29.99% for the MSCI World Index.  The Fund seeks to achieve its objective by investing approximately equal allocations (331/3%) in the following three Funds: JNL/Franklin Templeton Income Fund, JNL/Franklin Templeton Global Growth Fund and JNL/Franklin Templeton Mutual Shares Fund (“Underlying Funds”).  The Underlying Funds performance contributed to the results of the Fund proportionally based on relative value to the Fund throughout the year.  The Fund’s allocation to the Underlying Funds may be rebalanced when the actual allocations to the Underlying Funds approaches plus or minus 3% of the predetermined allocation percentages.  For the year ended December 31, 2009, the average daily investment in each of the Underlying Funds was 34.4% for the JNL/Franklin Templeton Income Fund, 33.8% for the Franklin Templeton Global Growth Fund, and 31.8% for the JNL/Franklin Templeton Mutual Shares Fund.  The performance and investment objectives of the Underlying Funds are discussed elsewhere in this report.

JNL/Franklin Templeton Founding Strategy Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	30.13%
Since Inception	-5.78%
(Inception date January 16, 2007)

JNL/Mellon Capital Management 10 X 10 Fund

Objective:

The investment objective of the JNL/Mellon Capital Management 10 x 10 Fund is capital appreciation and income.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 24.59% for Class A shares compared to 28.34% for the Russell 3000® Index.  The Fund seeks to achieve its objective by investing in the following Funds: JNL/Mellon Capital Management JNL 5 Fund, JNL/Mellon Capital Management S&P 500 Index Fund, JNL/Mellon Capital Management S&P 400 MidCap Index Fund, JNL/Mellon Capital Management Small Cap Index Fund, JNL/Mellon Capital Management International Index Fund and JNL/Mellon Capital Management Bond Index Fund (“Underlying Funds”).  The Underlying Funds performance contributed to the results of the Fund proportionally based on the relative value to the Fund throughout the year.  For the year ended December 31, 2009, the average daily investment in each of the Underlying Funds was 49.1% for the JNL/Mellon Capital Management JNL 5 Fund, 10.1% for the JNL/Mellon Capital Management S&P 500 Index Fund, 10.7% for the JNL/Mellon Capital Management S&P 400 MidCap Index Fund, 10.0% for the JNL/Mellon Capital Management Small Cap Index Fund, 10.2% for the JNL/Mellon Capital Management International Index Fund and 9.9% for the JNL/Mellon Capital Management Bond Index Fund.  The Fund expects to rebalance its assets to the allocation percentages specified for each Underlying Fund every January.  The performance and investment objectives of the Underlying Funds are discussed elsewhere in this report.

JNL/Mellon Capital Management 10 X 10 Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	24.59%
Since Inception	-8.54%
(Inception date April 30, 2007)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Mellon Capital Management Index 5 Fund

JNL/S&P 4 Fund

Jackson National Asset Management, LLC

Team Management

JNL/Mellon Capital Management Index 5 Fund

Objective:

The investment objective of the JNL/Mellon Capital Management Index 5 Fund is capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 25.16% for Class A shares compared to 28.34% for the Russell 3000 Index.  The Fund seeks to achieve its objective by investing in the following Funds:  JNL/Mellon Capital Management S&P 500 Index Fund, JNL/Mellon Capital Management S&P 400 MidCap Index Fund, JNL/Mellon Capital Management Small Cap Index Fund, JNL/Mellon Capital Management International Index Fund and JNL/Mellon Capital Management Bond Index Fund (“Underlying Funds”).  The Underlying Funds performance contributed to the results of the Fund proportionally based on the relative value to the Fund throughout the year.  For the year ended December 31, 2009, the average daily investment in each of the Underlying Funds was 19.8% the JNL/Mellon Capital Management S&P 500 Index Fund, 21.0% for the JNL/Mellon Capital Management S&P 400 MidCap Index Fund, 19.6% for the JNL/Mellon Capital Management Small Cap Index Fund, 20.1% for the JNL/Mellon Capital Management International Index Fund and 19.5% for the JNL/Mellon Capital Management Bond Index Fund.  The Fund rebalances its allocations to the Underlying Funds every January.  The performance and investment objectives of each Underlying Fund are discussed elsewhere in this report.

JNL/Mellon Capital Management Index 5 Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	25.16%
Since Inception	-4.76%
(Inception date April 30, 2007)

JNL/S&P 4 Fund

Investment Objective:

The investment objective of the JNL/S&P 4 Fund is capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 41.85% for Class A shares compared to 26.46% for the S&P 500 Index.  The Fund seeks to achieve its objective by investing in the following Funds: JNL/S&P Competitive Advantage Fund, JNL/S&P Dividend Income & Growth Fund, JNL/ S&P Intrinsic Value Fund and JNL/ S&P Total Yield Fund (“Underlying Funds”).  The Underlying Funds performance contributed to the results of the Fund proportionally based on the relative value to the Fund throughout the year.  For the year ended December 31, 2009, the average daily investment in each of the Underlying Funds was 24.8% for the JNL/S&P Competitive Advantage Fund, 22.5% for the JNL/S&P Dividend Income & Growth Fund, 26.1% for the JNL/ S&P Intrinsic Value Fund and 26.6% for the JNL/ S&P Total Yield Fund.  The Fund rebalances its allocations to the Underlying Funds every December.  The performance and investment objectives of each Underlying Fund are discussed elsewhere in this report.

JNL/S&P 4 Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	41.85%
Since Inception	-1.79%
(Inception date December 3, 2007)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Lazard Emerging Markets Fund

Lazard Asset Management LLC

Team Management

Objective:

The investment objective of the JNL/Lazard Emerging Markets Fund is long-term capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 71.74% for Class A shares compared to 78.51% for the MSCI Emerging Markets Index.

Stock selection in the financials, telecommunication services and energy sectors helped performance.  An underweight position in China and an overweight exposure to Indonesia added to returns.  Stock selection in the information technology and consumer discretionary sectors, as well as in Brazil, detracted from returns.  The Fund’s cash position hurt performance as well.

During the first quarter of 2009, shares in the developing world experienced periods of considerable weakness caused by pessimistic sentiment over the outlook for global financial institutions.  This period was followed by a significant rebound toward the end of the quarter, as shares rose due to value hunting by investors who were following signs of improvement in the credit markets.  The Fund’s benchmark finished the quarter almost flat.  Stocks in Latin America performed considerably better than those in Asia, and especially better than markets in Eastern Europe, the Middle East and Africa.  Ongoing weakness and range constrained price action continued in commodity prices, as crude oil prices traded between $30 and $55 per barrel.

Emerging markets equities experienced an extraordinary recovery in the second quarter of 2009.  Although stocks in the developing world experienced a respite in June, they rose very strongly in both April and May, as credit and global equity markets showed signs of improvement.  The Fund’s benchmark increased by 33% over the quarter, as shares in Eastern Europe, the Middle East, Africa and Latin America performed better than those in Asia.  Strong price action occurred in many commodities, and crude oil prices reached more than $70 per barrel by quarter end.

The impressive recovery continued through the third quarter of 2009.  Although growth in the developing world slowed in August, it rose very strongly in both July and September, as credit and global equity markets, as well as investor sentiment, demonstrated significant signs of improvement.  The Fund’s benchmark increased by almost 21% over the quarter, as shares in Eastern Europe and Latin America performed better than those in Asia.  Remarkably, every sector and every country but Morocco rose over the quarter.  Stable prices continued in many commodities, and crude oil prices remained at around $70 per barrel over the quarter.

Emerging markets equities finished a remarkably strong year positively, as the Fund’s benchmark ended the fourth quarter up almost 9%.  Shares in Latin America performed the strongest, although markets in Eastern Europe also rose, while Asian stocks lagged.  For the year as a whole,  Latin American equities significantly outperformed shares in Eastern Europe, the Middle East, Africa and Asia.

By sector, consumer discretionary, materials and information technology outperformed the Fund’s benchmark.  The utilities, healthcare, industrials and telecommunication services sectors were the weakest performers during the year.

Banco do Brasil SA, a Brazilian bank, performed well as loan growth recovered, asset quality deterioration seemed to approach a bottom and the local currency strengthened.  Shares of LUKOIL OAO, a Russian oil and gas company, benefited from rising oil prices.  Mobile Telesystems, a Russian telecommunications services company, helped performance due to the Russian ruble’s stabilization and investors’ focus on the company’s cash flow generation.

Shares of Satyam Computer Services Ltd., an Indian software company, were weak due to investor concerns over an alleged fraud.  TAM SA, a Brazilian airline company, was weak due to increasing competition and the negative effect of fuel hedges.  Shares of Turkcell Iletisim Hizmet AS, a Turkish telecommunication services company, fell over concerns that the weak macroeconomic conditions in Turkey and a weak currency would negatively affect margins.

Significant purchases and sales during the year included: In the consumer discretionary sector; a purchase of Truworths International Ltd. and sales of PT Astra International Tbk, Truworths International Ltd. and Hero Honda Motors Ltd.  In the consumer staples sector; purchases of KT&G Corp., Tiger Brands Ltd. and Natura Cosmeticos SA and a sale of Amorepacific Corp.  In the information technology sector; purchases of Cielo SA, NHN Corp. and NetEase.com and a sale of Satyam Computer Services Ltd.  In the industrials sector; a purchase of Koc Holding AS and sales of TAM SA, Embraer Overseas Ltd. and Iochpe Maxion SA.  In the materials sector; a purchase of Usinas Siderurgicas de Minas Gerais SA and a sale of Companhia Vale Do Rio Doce.  In the financials sector; purchases of Standard Bank Group Ltd., Akbank T.A.S. and Commercial International Bank and sales of JHSF Participacoes SA and KB Financial Group Inc.

Significant changes in weightings from December 31, 2008 to December 31, 2009 were as follows:  Consumer discretionary moved from a 4.4% overweight to a - -.05% underweight.  Consumer staples increased from a 5.2% overweight to a 7.9% overweight.  Financials decreased its underweight, from a - -6.6% underweight to a -2.0% underweight.  Energy increased its underweight, from a -4.0% underweight to a -9.7% underweight.  Industrials moved from a 1.5% overweight to a -.05% underweight.  Information technology moved from a -1.8% underweight to a 3.0% overweight.

We continue to be reasonably optimistic about emerging markets in the medium and long-term, but are neutral in the short-term.  While valuations are not excessive and many investors appear to want to increase their exposure to this asset class, it is markedly more expensive than it was 12 months ago.  Therefore, we believe long term investors should maintain exposure to a conservative strategy in this arena, but not to be aggressive at this time.

JNL/Lazard Emerging Markets Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	71.74%
Since Inception	6.10%
(Inception date May 1, 2006)

Average Annual Total Returns for Class B Shares
1 year	71.96%
Since Inception	6.30%
(Inception date May 1, 2006)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Lazard Mid Cap Equity Fund

Lazard Asset Management, LLC

Team Management

Objective:

The investment objective of the JNL/Lazard Mid Cap Equity Fund is long-term capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 39.65% for Class A shares compared to 40.48% for the Russell Midcap® Index.

During the year, the Fund benefited from stock selection in the healthcare sector, as positions in Hospira Inc., Life Technologies Corp. and Warner Chilcott Corp. consistently exceeded earnings expectations.  The Fund’s underweight position and stock selection in the financials sector contributed to performance.  The Fund benefited from an underweight position in the utilities sector as well, as it lagged the overall market considerably.  Stock selection in the information technology sector detracted from returns, as wholesale technology distributor Ingram Micro Inc., and software companies such as NeuStar Inc. and Symantec Corp., slightly lagged.  Stock selection in the consumer staples sector hurt returns. Shares of Molson Coors Brewing Co. declined, despite its positive earnings for the most recent quarter, due to concerns over price competition in Canada.  Stock selection in the industrials sector also detracted from returns.

Equities experienced a tremendous rally since the lows reached in March of 2009, as the economy recovered from one of the worst economic and financial crises in recent history. The events of 2009 largely eliminated the short term risk of systemic failure that we faced only a year ago.  The U.S. Federal Reserve’s near zero interest rate policy, combined with a fiscal deficit of approximately 10% of U.S. GDP, transformed the economic freefall to moderate growth quite quickly. This, in turn, encouraged investors to buy into riskier assets. The economy appears to be pulling out of its recession, as it returned to growth following four consecutive quarters of contraction. The housing market also showed further signs of stabilization, as the U.S. government extended its tax incentive program and maintained low borrowing costs for homebuyers.  However, the recovery in consumer activity, a primary driver of the economy in the U.S., remained uncertain amid the high unemployment rate.  A deceleration of consumer credit volumes also pointed to the continued deleveraging of U.S. consumers.

By sector, materials, information technology, energy and consumer discretionary performed well on the back of an improving economic outlook. A strong recovery in commodity prices boosted confidence in many commodity producers. The information technology sector was a consistent and overall best performer throughout the year, as strong cash positions and profitability in many technology companies attracted investors in the midst of the economic downturn earlier in the year.  In addition, computer hardware and semiconductor stocks rebounded due to the surprisingly resilient global PC market. Meanwhile, the consumer staples and utilities sectors underperformed, as investors rotated away from the more defensive sectors amid the improving economic outlook. Financial stocks rebounded sharply from their March lows, but lagged overall for the year, as the expected arrival of more normalized earnings levels for banks was pushed further back amid continued deterioration in the credit markets.

During the year, the Fund benefited from stock selection in the healthcare sector, as positions in Hospira Inc., Life Technologies Corp., and Warner Chilcott Corp. consistently exceeded earnings expectations.  Hospira Inc., a specialty pharmaceuticals and medication delivery company, benefited from its management’s multi year cost reduction plan, which increased its margins.  Life Technologies Corp. also benefited from cost savings efforts as a result of merger related synergies, and has experienced accelerated revenue growth.  In addition to strong earnings during the year, Warner Chilcott Corp. rose sharply after announcing it would purchase Procter & Gamble’s global pharmaceuticals business.  We view the deal favorably, as the purchase price was attractive and Warner Chilcott Corp. will likely realize immediate financial and strategic benefits.

The Fund’s underweight position and stock selection in the financials sector contributed to performance. Waddell & Reed Financial Inc. outperformed during the year, as the asset manager outperformed its peers due to strong performance across key products and a strong distribution network.  The company’s most recent earnings were better than expected, benefiting from the management team’s operational improvement plan and a sharp rebound in equity markets. The Fund benefited from an opportunistic purchase of PNC Financial Services Group Inc. (“PNC”) as well after its sharp decline in the beginning of the year.  PNC performed strongly following the lows reached in March and continued to do so following the completion of the U.S. government’s stress tests.  The Fund sold the position as it reached the valuation target. Ameriprise Financial Inc. also performed well off of March lows and, more recently, as investors favorably viewed the news that it agreed to acquire the asset management unit of Columbia Management from Bank of America Corp.

The Fund benefited from an underweight position in the utilities sector as well, as it lagged the overall market considerably.

Conversely, stock selection in the information technology sector detracted from returns, as wholesale technology distributor Ingram Micro Inc., and software companies such as NeuStar Inc. and Symantec Corp., slightly lagged. Despite this, we currently continue to favor these technology holdings due to their low valuations, robust free cash flow generation and strong balance sheets.  A low exposure to the semiconductors and semiconductor equipment segment also detracted from performance, as it was the best performing group in the sector due to an improving economic outlook.

Stock selection in the consumer staples sector hurt returns, as shares of Molson Coors Brewing Co. declined, despite its positive earnings for the most recent quarter, due to concerns over price competition in Canada.

Stock selection in the industrials sector also detracted from returns, as waste collection and disposal company Republic Services Inc. lagged due to continued soft volumes in both commercial and residential waste removal. However, the company’s pricing currently remains solid.

While conditions for investors have continued to improve throughout 2009, we believe we will see both new opportunities and uncertainties in the quarters and years ahead. This environment demands that managers rely on forward looking, fundamental research to make investment decisions.  As the economy deleverages and recalibrates, we believe our focus on balance sheet strength, robust organic cash flows and the resulting operational flexibility will deliver strong results.

JNL/Lazard Mid Cap Equity Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	39.65%
5 year	0.69%
10 year	7.33%

Average Annual Total Returns for Class B Shares
1 year	39.19%
5 year	0.75%
Since Inception	3.12%
(Inception date March 5, 2004)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/M&G Global Basics Fund

M&G Investment Management Limited

Graham French

Objective:

The investment objective of the JNL/M&G Global Basics Fund is to maximize long-term capital growth.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 46.88% for Class A shares compared to 34.38% for the FTSE World Index.

During the latter stages of 2008 and the first few months of 2009, the Fund took advantage of the depressed valuations of many commodity stocks to continue to build up the Fund’s weighting in this area of the market.  The Fund held an overweight position in commodity related stocks versus its benchmark during the year.  This meant that the Fund was well placed to take advantage of the strong performance of commodity related stocks once prospects for the global economy improved and risk appetite returned.  Good stock selection among basic material stocks was also a key driver of performance, in particular, comparatively large positions in Anglo-Irish oil and gas exploration group Tullow Oil Plc (“Tullow Oil”), French nickel mining firm Eramet, Anglo-African platinum mining business Lonmin Plc (“Lonmin”) and Australian metal recycler Sims Metal Management Ltd.  Good stock selection among the Fund’s consumer related holdings also added performance, most notably positions in Starbucks, Wimm-Bill-Dann Foods OJSC, sugar products maker Agrana Beteiligungs AG and chicken producer Pilgrim’s Pride Corp.

Despite a treacherous start to the year, global equities enjoyed strong returns during 2009.  As soon as signs emerged that the unprecedented monetary and fiscal stimulus measures employed by governments worldwide had saved the economy from a 1930’s style depression, investors demanded higher returning and higher yielding assets.  Having been heavily sold at the height of the downturn, cyclical-led sectors with the greater exposure to any rebound in economic activity were the biggest beneficiaries of investors’ renewed appetite for risk.  Commodity and industrial related stocks therefore achieved some of the biggest gains, spurred on by attractive demand fundamentals from emerging countries, such as China and India.  Consumer related stocks with exposure to less mature markets also rose on the back of these much improved economic prospects.

The Fund’s relatively large overweight positions in basic materials contributed positively to performance.  A comparatively big weighting in industrials also proved beneficial.  On the downside, the Fund’s relatively large position in consumer related stocks detracted from performance, however, this was offset by good stock selection in this sector.

Holdings in South Africa based platinum producer Lonmin and Anglo-Irish oil & exploration Tullow Oil added value.  Lonmin continued to benefit from the rebound in platinum prices, supported by the demand positive news that a platinum exchange-traded-fund would be launched in 2010.  A long held position in oil business, Tullow Oil benefited from the rise in oil prices and a continuation of positive exploration newsflow from its African oilfields.

Although the Fund has significantly outperformed its benchmark during the year, there were, however, some disappointments, including drinks manufacturer Constellation Brands Inc (“Constellation Brands”).  As well as being overlooked to a large extent in the cyclical driven rally of 2009, sentiment in Constellation Brands suffered because of problems at its wine division.  Nevertheless, we believe in the long-term growth prospects for this company and think that it is a good quality business with a great product range, well placed to benefit from demand in Asia.

During the year, the Fund purchased K+S AG, a German potash manufacturer and a company we believe will be a major beneficiary of the urgent need for fertilizer from developing countries such as China due to rapid population growth.  The Fund also purchased BHP Billiton Plc (“BHP Billiton”), a company who has some of the best assets in the world and promising growth prospects.  Also importantly, BHP Billiton boasts a healthy balance sheet, the long-term value of which, we believe, is far from reflected in the share price of the business.  Additions were made to several of the Fund’s consumer related holdings, including Singapore based conglomerate Fraser & Neave Ltd., food manufacturer Kerry Group Plc, high end hotel chain Hong Kong & Shanghai Hotels and UK consumer products manufacturer PZ Cussons Plc.  While commodities and consumer related stocks continue to make up a core part of the Fund, we are finding an increasing number of opportunities among global services names.  For example, the Fund established holdings in ports operator DP World Ltd., power supply business Aggreko Plc and security services group G4S Plc.

The Fund sold Santos Ltd.  We believed that the strong performance of this oil and gas exploration company had left its valuation looking relatively expensive and disposed of this holding.  Positions in chemicals manufacturer FMC Corp., BlueScope Steel Ltd. and Peabody Energy Corp., were also sold, freeing up assets to invest in more compelling opportunities.

There were no major shifts in the Fund’s investments, in particular in its sector and capitalization weightings, during the year.  The Fund’s biggest sector weightings are still basic materials, consumer goods and industrials.

Reflecting our positive opinion of the structural and demographic changes taking place in the emerging world, the Fund has an overweight position in consumer related stocks.  We believe that companies such as Unilever Plc, Colgate-Palmolive Co. and Starbucks Corp. are well placed to benefit from the growth of consumer spending in developing markets.  These businesses are highly cash generative, should be able to fund their growth organically, and return cash to shareholders.  The Fund also has a relatively large weighting in basic materials stocks, including mining businesses BHP Billiton, Eramet and Lonmin, as well as brick manufacturer Wienerberger AG, among others, and is therefore well placed to gain from the strong requirements for commodities from developing countries such as China.  We are also finding an increasing number of opportunities among global services names, including security services group G4S Plc and energy provider Aggreko Plc, as mentioned above.

We believe strongly in the migration of economic power from west to east and think that companies, which understand this shift and are positioning themselves accordingly, will be the winners over the next decade.  By continuing to select well managed good quality companies, which have attractive assets and are in sound financial health, as outlined above, we believe that the Fund will be able to reap the rewards of this exciting scenario and provide good performance over the long-term.

JNL/M&G Global Basics Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	46.88%
Since Inception	18.76%
(Inception date October 6, 2008)

Average Annual Total Returns for Class B Shares
1 year	47.19%
Since Inception	19.08%
(Inception date October 6, 2008)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/M&G Global Leaders Fund

M&G Investment Management Limited

Aled Smith

Objective:

The investment objective of the JNL/M&G Global Leaders Fund is to maximize long-term total return (the combination of income and growth of capital).

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 37.43% for Class A shares compared to 34.38% for the FTSE World Index.

From March 2009 onwards, global equities recovered from the low levels experienced in late 2008 and early 2009 following the collapse of Lehman Brothers.  As a result of improved sentiment, stock correlations in the market fell and investors regained their appreciation for stock specific fundamentals.  This provided a positive environment for the Fund’s stock picking approach.  Consistent with this, performance was to a large extent driven by good stock selection, in particular within the industrial and consumer goods sectors.

Emerging markets strongly outperformed during the rally, which harmed the Fund’s relative performance somewhat.  The Fund’s investment process has a bias towards developed markets where more mature companies undertaking self help initiatives are located.  As discussed below,  the Fund manager expects the allocation to emerging markets to rise in future periods.

With investors favoring risk, economically sensitive industries, such as technology, media and personal goods outperformed the market.  The top performing sector was mining, which returned more than 60% over the year on the back of stronger metal prices.  Banking stocks recovered as well, but towards the end of the year banks came under pressure from default fears in Dubai.  Meanwhile, the healthcare, utilities and tobacco sectors lagged the market due to their more defensive characteristics.  Over the year, emerging markets, including Brazil and Mexico, outperformed developed countries, with Japan particularly weak due to the strong Japanese yen and ongoing deflationary pressures.

The Fund’s outperformance was helped by good sector allocation, including overweight positions in the oil and gas and industrial sectors.  The Fund’s underweight positions in financials and utilities also added value.  Some of these gains were offset by an overweight position in healthcare companies, which underperformed more cyclical companies during the year.

The technology hardware and equipment sector featured prominently in the list of contributors as two out of three top performers came from that sector.  Shares in U.S. based chipmaker Marvell Technology Group Ltd. benefited from the company’s sharply rising profits which it achieved on the back of lower expenses and higher sales.  Meanwhile, growing demand for consumer discretionary products was a boost to Korean electronics manufacturer Samsung Electronics Co. Ltd., which has experienced higher sales of its televisions and mobile phones.

Another strong contribution came from Chinese industrial conglomerate Shanghai Industrial Holdings Ltd.  Investors responded well to the company’s strategy of selling non-core assets and focusing on the core areas within infrastructure and medicine.

On the other hand, the Fund’s healthcare holdings detracted as the sector underperformed during the year, including pharmaceutical groups Astellas Pharma Inc., Daiichi Sankyo Co. Ltd. (“Daiichi Sankyo”) and Lonza AG (“Lonza”) as well as health data provider IMS Health Inc.

Positions were closed in stocks including Swiss pharmaceutical company Lonza and Dutch consumer electronics maker Koninklijke Philips Electronics NV (“Phillips Electronics”).  The current external environment for Lonza, which manufactures active ingredients for the pharmaceutical industry, has become more difficult, which means that Lonza has not been able to achieve the high asset utilization rates required to support improved returns.  Meanwhile, we were not convinced that the management team at Philips Electronics had sufficient resolve to carry out the changes required to drive a significant improvement in the company’s returns.  Holdings in beverage bottler Coca-Cola Enterprises Inc., Malaysian bank AMMB Holdings Bhd and chemicals group DuPont Fabros Technology Inc. were sold after their shares reached fair value.

On the other hand, the Fund established a position in Japanese convenience store operator Lawson Inc. (“Lawson”) as, on our view that the company understands value creation by allocating capital to stores that can generate long-term returns. Other entrants to the Fund included Irish food business Kerry Group Plc (“Kerry”) and online auction company eBay Inc. (“eBay”).  A recent management initiative at Kerry is looking to better integrate the group’s different segments, while eBay’s CEO John Donahoe has introduced a restructuring plan, which we believe will enhance returns.

Purchases in emerging markets included State Bank of India Ltd. and Energias Do Brasil SA, which were purchased in the second half of 2009. We expect more emerging market opportunities to present themselves as these markets mature. However, the Fund’s stock picking approach seeks to diversify country risk. As a result, it is unlikely that emerging markets, or any other geographic region, will become a significant overweight relative to the Fund’s benchmark.

The Fund’s exposure to consumer services, specifically retailers, was increased by adding to an existing holding in French supermarket chain Carrefour SA and by initiating positions in Lawson, eBay, department store Macy’s Inc. and tax returns company H&R Block Inc.  On the other hand, the Fund’s weighting in consumer goods was decreased by closing holdings in the automobile sector, including Yamaha Motor Co. Ltd. and Hankook Tire Co. Ltd.

Another significant change to the Fund was a reduction in the overweight position in the healthcare sector.  This was achieved by trimming the Fund’s holdings in drug makers Merck & Co. Inc. and Daiichi Sankyo and disposing of a holding in Smith & Nephew Plc, which makes products for the knee and hip replacement markets.

The Fund continues to have overweight positions in consumer services, industrial goods and technology while weightings in consumer goods and utilities are lower than the benchmark.  However, the financials sector continues to be the Fund’s largest underweight as we remain uncomfortable with the level of obscurity surrounding the balance sheets of many financial companies.  Nonetheless, we have taken investment opportunities within selected financials where we believe that the valuation margins are sufficient to compensate for the additional risk, including Swiss investment manager GAM Holding Ltd. and State Bank of India Ltd.

JNL/M&G Global Leaders Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	37.43%
Since Inception	11.86%
(Inception date October 6, 2008)

Average Annual Total Returns for Class B Shares
1 year	37.70%
Since Inception	12.07%
(Inception date October 6, 2008)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Mellon Capital Management Funds

Mellon Capital Management Corporation

Team Management

JNL/Mellon Capital Management S&P 500 Index Fund

JNL/Mellon Capital Management S&P 400 MidCap Index Fund

JNL/Mellon Capital Management Small Cap Index Fund

JNL/Mellon Capital Management International Index Fund

JNL/Mellon Capital Management Bond Index Fund

The equity market recovered from a dismal 2008 to stage a rally that saw the best gains for most U.S. indices since 2003.  The U.S. stock market got off to a slow start in 2009 on continued fallout from the credit crisis, with continued concerns about the growing unemployment rate, grim corporate earnings, and dismal home sales.  Through March 9, the Dow Jones Industrial Average fell 24.8%, while the S&P 500 Index lost 24.6%.  In mid March, investors were encouraged by reports that signaled improvements on consumer confidence, corporate earnings and housing sales, while Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc. forecasted profits in the first two months of 2009.  Stocks continued to rally after consumer confidence soared above expectations, capital shortfalls at U.S. banks were smaller than expected, and employment numbers beat estimates.  Later in the year, positive GDP numbers for most developed markets confirmed that the global recession was over.  The S&P 500 Index gained 26.5% during 2009, while the Russell 3000 added 28.3%.  Growth handily outperformed value across the capitalization spectrum.  Among S&P 500 Index economic sectors, information technology soared 59.9%, followed by materials at 45.2% and consumer discretionary, which rose 38.8%.

International stocks also bounced back during 2009, in most cases outperforming the U.S.  The MSCI EAFE Index rose 31.8% in U.S. dollar terms.  The return of positive sentiment and risk appetite caused the U.S. dollar to fall versus most currencies during 2009, helping U.S. dollar based investors.  The top performing country markets in U.S. dollar terms were Norway (87.1%), Australia (76.4%), and Singapore (74.0%).  Ireland (12.3%), Finland (11.1%), and Japan (6.3%) were the worst performers.

The Barclays Capital U.S. Aggregate Bond Index, a measure of the overall domestic bond market, generated a total return of 5.9% in 2009.  After the flight to quality during the latter half of 2008 and early 2009, spreads narrowed considerably, to levels seen prior to the credit crisis.  The latter half of the year saw marked improvement in sentiment and economic fundamentals after

unprecedented government actions succeeded in reducing the fear that rippled through the financial system following the subprime meltdown, helped repair the credit markets, and bolstered investor and consumer confidence.  The Treasury sector underperformed all spread sectors, falling -3.6% for the year.  The longer end of the yield curve fell even more, with long Treasuries losing 12.9% and 20-year+ Treasuries tumbling 21.4%.  The corporate and securitized sectors, commercial mortgaged-backed securities and asset-backed securities sectors, were the strongest performers.

JNL/Mellon Capital Management S&P 500 Index Fund

Objective: The investment objective of the JNL/Mellon Capital Management S&P 500 Index Fund is to match the performance of the S&P 500 Index.

Fund Specific Overview: For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 25.97% for Class A shares compared to 26.46% for the S&P 500 Index.

The Fund is an index fund.  As such, its portfolio manager is not selecting specific stocks to own, but is trying to match the Fund’s overall stock weightings and characteristics to the S&P 500 Index stock weightings, while minimizing transaction costs.

Companies that contributed to the Fund’s performance included:  Advanced Micro Devices Inc., a manufacturer of semiconductor products, was one of the Fund’s top performers as the company was able to pay down debt using a $1.2 billion dollar anti-competitive lawsuit settlement from its main competitor, Intel Corp.  Tenet Healthcare Corp., a U.S. healthcare provider, gained as outpatient visits grew, pricing trends improved and bad debt expense decreased.  XL Capital Ltd., a Bermuda based insurer, was one of the Fund’s best performers as the U.S. Treasury’s Troubled Asset Relief Program (“TARP”) boosted the value of its bond portfolio and the company stabilized its balance sheet.

Companies that detracted from the Fund’s performance included:  M&I Marshall & Ilsley Bank, a diversified financial services company, was one of the Fund’s worst performers as the company took losses on homebuilder defaults and had their credit rating cut.  Huntington Bankshares Inc., a provider of commercial and consumer banking services, was one of the Fund’s worst performers as the company cut its dividend to preserve capital and the company’s credit was downgraded by the credit rating agencies.  Citigroup, a diversified financial service company with both corporate and consumer customers, was one of the Fund’s worst performers as the company received government monetary aid to help stabilize its operations.

JNL/Mellon Capital Management S&P 400 MidCap Index Fund

Objective: The investment objective of the JNL/Mellon Capital Management S&P 400 MidCap Index Fund is to match the performance of the S&P 400 MidCap Index.

Fund Specific Overview: For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 38.03% for Class A shares compared to 37.38%% for the S&P 400 MidCap Index.

The Fund is an index fund.  As such, its portfolio manager is not selecting specific stocks to own, but is trying to match the Fund’s overall stock weightings and characteristics to the S&P 400 MidCap Index stock weightings, while minimizing transaction costs.

Companies that contributed to the Fund’s performance included:  Louisiana-Pacific Corp., a manufacturer of building materials and engineered wood products, returned positively due to its cost cutting efforts and improved capital position.  Temple-Inland Inc., a manufacturer of paper, corrugated packaging and building products, gained due to increased demand and prices for boxes.  RF Micro Devices Inc., a high performance semiconductor manufacturer, was one of the Fund’s best performers as its cellular products gained market share.

Companies that detracted from the Fund’s performance included:  Synovus Financial Corp., a southern U.S. financial services holding company, was one of the Fund’s worst performers as credit provisions and goodwill impairments hurt earnings.  Cathay General Bancorp, the holding company for commercial bank Cathay Bank, was one of the Funds worst performers as the slowdown in residential housing increased credit costs and markdowns in related assets.  Associated Banc-Corp, a diversified multi-bank holding company, returned negatively due to the poor economy and loan losses.

JNL/Mellon Capital Management Small Cap Index Fund

Objective: The investment objective of the JNL/Mellon Capital Management Small Cap Index Fund is to match the performance of the Russell 2000 Index.

Fund Specific Overview: For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 27.54% for Class A shares compared to 27.17%% for the Russell 2000 Index.

The Fund is an index fund.  As such, its portfolio manager is not selecting specific stocks to own, but is trying to match the Fund’s overall stock weightings and characteristics to the Russell 2000 Index stock weightings, while minimizing transaction costs.

Companies that contributed to the Fund’s performance include:  Dollar Thrifty Automotive Group Inc., the operator of Dollar and Thrifty vehicle rental systems, was one of the Fund’s best performers as the company was able to maintain rental pricing power and used vehicle residual values increased.  Diedrich Coffee Inc., a specialty coffee distributor that also owns retail locations throughout the world, was one of the Fund’s best performers as the company restructured, turned its focus to specialty coffees and sold off non-related parts of the company. The company was the target of Green Mountain Coffee Roasters Inc. who offered a 23% premium for the company.  Vanda Pharmaceuticals Inc., a biopharmaceutical company, gained due to the FDA approval for Fanapt, a drug used to treat schizophrenia.

Companies that detracted from the Fund’s performance included:  Pacific Capital Bancorp, a California commercial bank holding company, fell due to the poor economy and the expense of raising capital.  Sterling Financial Corp., a northwestern U.S. retail bank, fell as the deteriorating credit conditions caused it to announce a credit provision, goodwill impairment and eliminate its cash dividend.  Repros Therapeutics Inc., a clinical stage biopharmaceutical company, fell after the company halted development of its drug Proellex due to adverse side effects resulting in patients during its clinical trials.

JNL/Mellon Capital Management Funds

Mellon Capital Management Corporation

Team Management

JNL/Mellon Capital Management International Index Fund

Objective: The investment objective of the JNL/Mellon Capital Management International Index Fund is to match the performance of the MSCI EAFE Index.

Fund Specific Overview: For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 29.28% for Class A shares compared to 31.78%% for the MSCI EAFE Index.

The Fund is an index fund.  As such, its portfolio manager is not selecting specific stocks to own, but is trying to match the Fund’s overall stock weightings and characteristics to the MSCI EAFE Index stock weightings, while minimizing transaction costs.

Companies that contributed to the Fund’s performance included:  Immoeast, a Central Europe real estate development company, was one of the Fund’s best performers as investors were found to restart some projects that were halted due to the credit crunch and a lack of funding.  Infineon Technologies AG, the German semiconductor producer, fell as a result of the company’s decision to refocus its business by selling their wireless communication segment and retaining the automotive business.  Kazakhmys Plc, a Kazakhstan based national resource company, gained steadily throughout the year as demand for mining from developing countries compensated for weaker demand in developed markets.

Companies that detracted from the Fund’s performance included: Japan Airlines Co. Ltd., a Japanese airline operator, struggled as legacy pension costs and lower demand for air travel pushed the company closer to bankruptcy.  Volkswagen AG, a global carmaker, fell amid a bid to acquire a 50% stake in Porsche AG.  Acom Co. Ltd., a Japanese consumer financing company, struggled with the current economy and tightened lending rules.

JNL/Mellon Capital Management Bond Index Fund

Objective: The investment objective of the JNL/Mellon Capital Management Bond Index Fund is to match the performance of the Barclay’s Capital U.S. Aggregate Bond Index.

Fund Specific Overview: For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 5.65% for Class A shares compared to 5.93% for the Barclays Capital U.S. Aggregate Bond Index.

The Fund is an index fund.  As such, its portfolio manager is not selecting specific securities to own, but is trying to match the Fund’s overall weightings and characteristics to the Barclays Capital U.S. Aggregate Bond Index weightings, while minimizing transaction costs.

In 2009, the Fund underperformed its benchmark by 28 basis points, giving up some of the alpha from last year.  Despite all the market volatility of 2008 and 2009, the Fund managed to closely track the index.

During the year, the market experienced dramatic spread tightening in all products especially in the more credit sensitive sectors.  For example, excess returns over duration equivalent treasuries on Corporate, asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) returned close to 20%, 25% and 30% respectively.  The spread tightening in the credit sector was driven predominantly by a lack of supply in the market combined with tremendous demand for corporate bonds.  This combined to create conditions of illiquidity and difficulty in buying this sector.  During the year, the Fund had a slight bias toward treasury securities.  The Fund experienced a significant amount of cash contributions, and given the volatility and liquidity of the markets it was a bit challenging getting exposure to some of these higher spread products which detracted from performance.

During the first quarter of 2009, interest rates in the U.S. reversed the dramatic declines of the prior quarter and rose in January while the yield curve steepened.  Yields continued to rise in February, and made a down turn in March as the U.S. Federal Reserve (“Fed”) announced a quantitative easing program aiming at driving down interest rates to boost the economy.  The 10-year Treasury yield finished the quarter at 2.7%, while the 2-year Treasury yield closed at 0.8%.  Among the sectors of the fixed income markets, high yield bonds posted strong returns as investors regained their risk appetite.  The Barclays Capital U.S. Corporate High Yield Bond Index returned nearly 6.0%.  The Treasury Inflation-Protected Securities (“TIPS”) sector also outperformed.  The Barclays Capital U.S. TIPS Index returned 5.5%, reflecting growing concerns about inflation.

The Barclays Capital U.S. Aggregate Bond Index finished the quarter with a return of 0.1%.  Within the Barclays Capital U.S. Aggregate Bond Index, the asset-backed sector delivered a strong return of 7.6%, following the announcement by the U.S. Treasury and the Fed to launch the Term Asset-Backed Securities Loan Facility (“TALF”), which is designed to support the purchases of certain AAA rated asset-backed securities and to stimulate the broader economy in the long term.  Among the other sectors, Treasuries returned - -1.3%.  Agencies and mortgage-backed securities returned -0.1% and 2.2%, respectively.  CMBS were down -1.9%.  Corporate bonds fell -1.9%, pulled down by extreme weakness of the financial institutions sub-sector, which was down -19.6%.

During the second quarter of 2009, in the U.S. bond markets, Treasury yields climbed in the second quarter as investors embraced riskier assets.  The 10-year Treasury yield finished the quarter at 3.5%, an increase of 0.8% from the end of the first quarter.  The 30-year Treasury yield also rose 0.8% to 4.3%.  Credit spreads narrowed as economic reports continued to show slower deterioration of the economy and as investors feared that fiscal deficits and quantitative easing by the government would induce inflation in the long run.  The Barclays Capital U.S. Corporate Investment Grade Bond Index returned 10.5% for the quarter, while the Barclays Capital U.S. Corporate High Yield moved up 23.1%.

Investors increased risk appetite helped all sectors to outperform Treasuries in the second quarter.  Within the Barclays Capital U.S. Aggregate Bond Index, the CMBS sector delivered a considerable return of 12.5%, helped by the Fed’s announcement in May to include CMBS as eligible collateral under the TALF.  The TALF also helped push up the demand for asset-backed securities; the sector finished the quarter with a 7.6% gain.  On the other end of the spectrum, the U.S. Treasury sector was down - -3.0%.  ABS and mortgage-backed securities (“MBS”) returned 0.1% and 0.7%, respectively.  Overall, the Barclays Capital U.S. Aggregate Index returned 1.8% for the quarter.

During the third quarter of 2009, U.S. Treasury securities regained their appeal as investors’ concern about near term inflationary pressures was somewhat eased.  The 10-year Treasury yield finished the quarter at 3.3%, a decrease of -0.2% from the end of the second quarter.  The 30-year Treasury yield declined -0.3% to 4.0%.  Credit spreads narrowed further in the third quarter.  Demand for corporate bonds, particularly high yield bonds, continued to strengthen as improvements in global economic indicators stirred investor risk appetite.  The Barclays Capital U.S. Corporate High Yield Index returned 14.2%.

Alleviation of inflation pressures and the federal government’s continued quantitative easing efforts drummed up demand in all fixed income sectors.  Every sector within the Barclays Capital U.S. Aggregate Bond Index posted positive returns for the quarter.  The CMBS sector topped the group, returning 12.7%, followed by the investment grade corporate sector, which was up 8.1%.  The ABS sector finished the quarter with a 6.3% gain.  The MBS sector gained 2.3%.  The U.S. Treasury and agencies sectors, the worst performing sectors, returned 2.1% and 2.0%, respectively.  Overall, the Barclays Capital U.S. Aggregate Index returned 3.7% for the quarter.

During the fourth quarter of 2009, treasury securities lost ground, with bond yields rising to multi month highs and the spread between the 2-year and 10-year notes hitting record high levels.  The Barclays Capital Long Treasury Index was down - -5.3% during the quarter, as brighter economic prospects lifted expectation of inflation and concerns about the amount of debt the government needs to sell in order to fund the widening budget deficit weighted on the longer maturities.  The 10-year yield rose by 0.5% to 3.8% as the yield curve steepened.

Spread sectors narrowed considerably during the quarter as evidence continued to mount that the U.S. and global recessions are over and economic recoveries have begun.  The Federal Open Market Committee kept rates at near zero with the risk to growth remaining, but with the improvements in the economy, the committee indicated that most of the special liquidity facilities would expire on February 1st, and gave more details about the wind down of the various liquidity programs it has put in place over the last 15 months or so.  Spread sectors outperformed during the quarter.  CMBS was the top performing spread sector.  In the corporate sector, financials were the best performer.  The Barclays Capital U.S. Aggregate Index returned 0.2% for the quarter.

JNL/Mellon Capital Management Funds

Mellon Capital Management Corporation

Team Management

JNL/Mellon Capital Management S&P 500 Index Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	25.97%
5 year	-0.21%
Since Inception	1.02%
(Inception date January 15, 2002)

Average Annual Total Returns for Class B Shares
1 year	26.26%
5 year	-0.03%
Since Inception	0.97%
(Inception date March 5, 2004)

(Mellon Capital Management Corporation assumed portfolio management responsibility on February 17, 2004)

JNL/Mellon Capital Management S&P 400 MidCap Index Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	38.03%
5 year	2.60%
Since Inception	5.44%
(Inception date January 15, 2002)

Average Annual Total Returns for Class B Shares
1 year	38.34%
5 year	2.79%
Since Inception	3.82%
(Inception date March 5, 2004)

(Mellon Capital Management Corporation assumed portfolio management responsibility on February 17, 2004)

JNL/Mellon Capital Management Small Cap Index Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	27.54%
5 year	-0.13%
Since Inception	3.99%
(Inception date January 15, 2002)

Average Annual Total Returns for Class A Shares
1 year	27.68%
5 year	0.06%
Since Inception	1.58%
(Inception date March 5, 2004)

(Mellon Capital Management Corporation assumed portfolio management responsibility on February 17, 2004)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Mellon Capital Management Funds

Mellon Capital Management Corporation

Team Management

JNL/Mellon Capital Management International Index Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	29.28%
5 year	3.00%
Since Inception	6.44%
(Inception date January 15, 2002)

Average Annual Total Returns for Class B Shares
1 year	29.57%
5 year	3.20%
Since Inception	5.05%
(Inception date March 5, 2004)

JNL/Mellon Capital Management Bond Index Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	5.65%
5 year	4.26%
Since Inception	4.57%
(Inception date January 15, 2002)

Average Annual Total Returns for Class B Shares
1 year	5.90%
5 year	4.48%
Since Inception	4.07%
(Inception date March 5, 2004)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Mellon Capital Management Funds

Mellon Capital Management Corporation

Team Management

JNL/Mellon Capital Management European 30 Fund

JNL/Mellon Capital Management Pacific Rim 30 Fund

JNL/Mellon Capital Management European 30 Fund

Objective: The investment objective of the JNL/Mellon Capital Management European 30 Fund is to provide capital appreciation.

Fund Specific Overview: For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 41.03% for Class A shares compared to 35.83% for the MSCI Europe Index.

Companies that contributed to the Fund’s performance include:  Antofagasta, an operator and explorer for copper mines, became a top performer in the Fund as the company benefited from increased copper prices.  DnB Nor Asa, a Norwegian commercial bank, rose due to its sound operations and increased capital.  Mets Oyi, a global supplier of process industry machinery and systems, was one of the top performers of the Fund as customers began to discuss bigger projects and spending on industrial equipment began to show signs of a recovery.

Companies that detracted from the Fund’s performance include:  Banco De Sabadell, a Spanish based retail and commercial bank, fell as late payments and defaults increased as a result of Spain’s high unemployment rate.  France Telecom SA, a telecommunications services company to residential, professional and large business customers, fell as the ongoing economic slump forced customers to cut back on telecommunications services.  Mobistar SA, a Belgian firm that offers mobile telephone services through a GSM network and fixed line services for international calls, had decreased performance due to the weak economy and increased competition.

JNL/Mellon Capital Management Pacific Rim 30 Fund

Objective: The investment objective of the JNL/Mellon Capital Management Pacific Rim 30 Fund is to provide capital appreciation.

Fund Specific Overview: For the year ended December 31, 2009, the Fund slightly underperformed its benchmark by posting a return of 24.15% for Class A shares compared to 24.18% for the MSCI Pacific Index.

Companies that contributed to the Fund’s performance include:  Rio Tinto, an international mining company, gained as a result of the decline in value of the Australian dollar, which gave it an advantage over rivals in South Africa and India.  Australia and New Zealand Banking Group, an international bank with activities in general banking, mortgage and installment lending, life insurance, leasing, hire purchase and general finance, was up as it was able to acquire strategic businesses in Asia and from subsidiaries of ING. These activities put the company in a better position to grow it’s business throughout Asia.  Jardine Cycle and Carriage, a company which distributes, retails, and assembles motor vehicles, parts, and accessories, rose as analysts noted that the company’s position in the market gave it little exposure to the export market and the company’s balance sheet was extremely healthy and would allow it to participate in strategic acquisitions.

Companies that detracted from the Fund’s performance include:  Tokuyama Corporation, a Japanese producer of cement and other construction materials, fell due to the weakened global demand for building materials and significant dilution due to an equity offering to finance a Malaysian plant.  West Japan Railway, Japan’s third largest railway operator, fell on declining passenger numbers and a significant drop in Japan’s GDP.  NTT Docomo Inc, a provider of various telecommunications services, had negative returns because of decreased sales and increased costs.

JNL/Mellon Capital Management European 30 Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	41.03%
Since Inception	17.19%
(Inception date October 6, 2008)

Average Annual Total Returns for Class B Shares
1 year	41.27%
Since Inception	17.39%
(Inception date October 6, 2008)

JNL/Mellon Capital Management Pacific Rim 30 Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	24.15%
Since Inception	15.26%
(Inception date October 6, 2008)

Average Annual Total Returns for Class B Shares
1 year	24.49%
Since Inception	15.52%
(Inception date October 6, 2008)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Mellon Capital Management Global Alpha Fund

Mellon Capital Management Corporation

Team Management

Objective:

The investment objective of the JNL/Mellon Capital Management Global Alpha Fund is to seek total return.

Portfolio Manager Commentary:

For the period September 28, 2009 through December 31, 2009, the Fund underperformed its benchmark by posting a return of -1.20% for Class A shares compared to 0.02% for the Citigroup 1 Month Treasury Bill Index.  The factors that caused underperformance during the period were losses in the currency and bond allocation components.  The equity allocation component added alpha.  Exchange-traded equity and bond futures, and currency forwards are used to implement the Fund’s strategy.  However, their use has a very small impact on the performance as they are merely a more cost effective and highly liquid substitute for gaining market exposure.  What impacts the Fund’s performance is the allocation among the developed equity, bond, and currency markets, as described below.

Evidence continued to mount that the U.S. and global recessions are over and economic recoveries have begun.  The Organization for Economic Cooperation and Development doubled its growth forecast for the leading developed economies, saying the economies of the group’s 30 member countries will expand 1.9% next year and 2.5% in 2011.  The third quarter gross domestic product report showed the U.S. economy expanded at an annualized rate of 3.5%.  In a sign that the labor market may finally be healing, initial reports showed that November non-farm payrolls fell by 11,000 workers, far less than the 111,000 decline in jobs in October.  For the eighth consecutive month, the Conference Board’s index of leading economic indicators rose.  Existing home sales jumped again up 7.4% in November after jumping 10.1% in October as the overall economic picture continues to improve.  Abroad, China’s industrial production grew more than economists had forecasted in November, a development that reaffirms the expectations of many economists that China will help lead the rest of the world in recovery.  Data was mixed in the Euro area.  Service and manufacturing industries grew at the fastest pace in two years in November.  At the same time, Greece had its debt rating cut while Spain and the UK were facing the possibility of downgraded ratings.  The UK economy has lagged; their third quarter 2009 GDP declined to -0.4%.  As economies transition to growth, the next step for governments and central banks will be to remove the stimulative policies without harming the nascent growth.  European Central Bank President Trichet said policymakers will withdraw emergency cash gradually in an effort to ensure the bank does not fuel inflation.  The Federal Open Market Committee (“FOMC”) kept rates at near zero with the risk to growth remaining, but with the improvements in the economy, the FOMC indicated that most of the special liquidity facilities would expire on February 1st, and gave more details about the wind down of the various liquidity programs it has put in place over the last 15 months or so.  Australia became the first G20 country to raise interest rates in more than a year.  Norges Bank became the first European central bank to reverse its easing cycle as the Norwegian economy accelerated.

In general, the Fund uses derivatives as direct substitutes for developed market stock indices, government bonds, and currencies.  The Fund employs derivatives because they have much lower trading costs.  Some important points about the types of derivatives the Fund uses are as follows: 1) In almost all the markets covered by the Fund, the derivative is more liquid than the underlying physical securities.  This is often the case for exchange traded futures on liquid developed markets.  2) The Fund limits derivatives use to futures and forwards which are among the simplest types of derivatives.  They have linear payoffs, meaning a $1 price change in the underlying equals $1 in derivative profit and loss or mark-to-market.  This is not the case for more exotic over the counter derivatives with embedded optionality and so called non-linear payoffs.  3) Most of the derivatives the Fund uses are exchange traded with daily mark-to-market and no counterparty credit risk.  4) For the over-the-counter derivatives, mostly currency forwards, the Fund minimizes counterparty credit exposure by rolling them quarterly and by trading only with the highest credit rated counterparties.

The largest volume of trading activity during the quarter was in the fixed income selection strategy component.  The Fund purchased U.S. and Japanese bond futures.  The term premium for U.S. bonds increased significantly as the rise in yields, combined with a relatively muted rise in cash expected returns against the global average, increased their attractiveness.  The Fund pared its short in Japanese bond futures as the position was less attractive on a risk adjusted basis.  The Fund sold Euro and UK bond futures after their term premiums decreased versus the global average.  Euro bond yields rose less than the global average, while the rise in UK long-term inflation expectations narrowed the UK term premium.  In the currency component, the Fund’s largest purchase was the euro after its monetary policy signal turned more positive.  The Fund’s largest sales were the British pound and the Swiss franc.  The British pound’s monetary policy signal was less attractive and the real rate signal became negative after inflation expectations rose in the UK.  The Fund sold the Swiss franc against its euro purchase, as it was less attractive on the real rate and monetary policy signals and due to its high correlation with the euro.

Within the equity market selection strategy, the Fund’s largest overweight is in France (CAC 40 10 Euro Index Future), where stocks are attractively valued relative to bonds and to other country equity markets.  Our largest equity futures position continues to be an underweight to Japan (TOPIX Index Future), where stocks are expensive relative to bonds, and we expect the lowest equity returns of any developed country.  In the bond allocation strategy, the largest overweights are in U.S. and UK bond futures as they offer the largest term premiums.  The Fund’s largest underweight remains in Japan, where the term premium is unattractive versus the global average.  In the currency strategy, the Australian dollar and the Japanese yen are the Fund’s largest overweights.  The Fund is overweight the Australian dollar because its short-term real interest rate is relatively high and it is expected to remain above the global average.  The Japanese yen overweight is driven by the positive monetary policy signal.  The Fund’s largest underweights are in the British pound and the U.S. dollar.  Both the British pound and the U.S. dollar are relatively unattractive from a monetary policy standpoint, while the British pound also has a negative real interest rate.

Average Annual Total Returns for Class A Shares
Since Inception	-1.20%
(Inception date September 28, 2009)

Average Annual Total Returns for Class B Shares
Since Inception	-1.10%
(Inception date September 28, 2009)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Oppenheimer Global Growth Fund

OppenheimerFunds, Inc.

Rajeev Bhaman

Objective:

The investment objective of the JNL/Oppenheimer Global Growth Fund is to seek capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 39.42% for Class A shares compared to 29.99% for the MSCI World Index.

The year began with near panic in the financial markets.  For the first quarter of 2009, there was a very real fear that the world economy might be heading towards the conditions experienced during the Great Depression.  As credit dried up and consumer confidence collapsed, global economic activity slowed dramatically or went into reverse as many large financial institutions disappeared or neared bankruptcy.

Central bankers and governments did not sit idly by.  Last year, we maintained that with the help of government intervention, the financial system would stabilize, risk premiums would fall, loans would be made available to qualified businesses and consumers, and the global economy would largely recover.  The scale of government intervention has been unprecedented, and while the long-term impacts are still to be assessed, we believe the “medicine” has clearly worked and we are now in the early stages of an economic recovery.

Given our relatively sanguine view last year that there would be a fairly robust market recovery sooner rather than later, we did not panic with regard to the Fund during this extreme market volatility.  We instead stuck to our investment principles.  As a result, we were able to produce results that were well ahead of the benchmark during the year.

Our approach is essentially bottom-up and based on a stock’s fundamentals.  Sector and country allocation are also primarily driven by stock selection. We do not make changes to the Fund because of sweeping top-down asset or country allocation decisions. Although we tend to avoid jurisdictions where the legal structures appear inadequate to provide shareholder protection.  Currently, we tend to favor securities located in open economies, such as the U.S., Japan and UK, which have high quality companies and feature significant innovation.

Our fundamental, bottom-up approach, which seeks long-term, sustainable and superior growth, has currently led us to focus on the information technology and consumer discretionary sectors.  This is where we are finding the most companies with the characteristics we seek.  Indeed, we had approximately 43% of the Fund invested in these two sectors at year end, compared to the benchmark’s roughly 20% allocation.  So, it is particularly encouraging that these two sectors were the biggest positive contributors to performance during the year.

Within information technology, the biggest contributors were Telefonaktiebolaget LM Ericsson, our largest holding; Infosys Technologies Ltd., the Indian software company; U.S. based Juniper Networks Inc.; semiconductor firm MediaTek Inc.; internet service company eBay Inc.; and specialty glass and ceramics producer Corning Inc.  All of these companies were among the top ten positive contributors to overall Fund performance.  Among consumer discretionary companies, we had positive contributions from a wide array of holdings, such as retailers Hennes & Mauritz AB, which the Fund exited, and Tiffany & Co.  Other contributors included Bayerische Motoren Werke (BMW) AG and luxury goods companies LVMH Louis Vuitton Moet Hennessy SA and Tod’s SpA.

Our other major overweight sector at year end was industrials.  Industrials was a positive contributor to performance, with a particular strong showing by Assa Abloy AB, a Swedish company that is a leading manufacturer and supplier of locks.  Our energy stock selection, which had detracted from Fund performance during the first half of the year, experienced a strong rebound and ended the year strongly outperforming the Fund’s benchmark.  Technip SA, Europe’s second largest provider of oil field services, was the largest contributor to performance.  The Fund also handily outperformed in the consumer staples sector as a result of better relative stock selection.

In contrast, materials, a sector where we were underweight at year end, detracted from performance.  It was a roller coaster period for this sector. As the commodity and energy bubble burst, the sector was very weak through March 2009.  But as prices recovered, materials was the top performing sector for the Fund’s benchmark in terms of total return.  Thus, our substantial underweight in materials hurt relative performance.  We are, however, maintaining our underweight position in materials as the fundamentals of supply and demand in a slow growth world do not appear to support another big run up in this sector.

At the country level, the stellar performance of technology stocks moved the U.S. into the top position in terms of positive contributors to performance.  As a region, Europe was the top contributor to Fund performance, with solid contributors coming from France, Germany and Sweden, among others.  Latin America also outperformed for the Fund, with Brazil and Mexico leading the way, as did Asia excluding Japan, primarily due to India and Taiwan providing the bulk of the returns.  On the negative tack, our underweights in Australia and Canada detracted from overall performance, as did our overweight position to Japan.

The global outlook continues to be mixed as much of the global economy seems poised to transition from a state of “less bad” to sustained growth.  On the positive side, we see some increases in investor participation and a return of risk appetite as economic data shows movement from the depressed levels of 2008 and the first quarter of 2009.  We are encouraged by early signs of stabilization in the housing and employment markets and improvement in consumer confidence.

While the exact shape of recovery is yet unknown, we remain conservative in our assumptions: deleveraging, at least in the developed world and at both the personal and corporate levels, has a long way to run.  This will restrain demand and, thus, growth.  It is also clear that the crisis is putting considerable pressure on companies to adapt via cost cutting and aggressive competition.  As a result, the gap between the strong and the weak will grow; hence, our emphasis is on picking and sticking with what we believe are winners.  We are optimistic about the outlook for the Fund because of the quality of the companies we believe it holds and the compelling valuations on which those names continue to trade.  We believe the Fund is well positioned to seek attractive returns without any heroic assumptions for the shape of the recovery.

JNL/Oppenheimer Global Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	39.42%
5 year	3.12%
Since Inception	3.89%
(Inception date April 30, 2001)

Average Annual Total Returns for Class B Shares
1 year	39.58%
5 year	3.34%
Since Inception	4.81%
(Inception date March 5, 2004))

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/PAM Asia ex-Japan Fund

Prudential Asset Management (Singapore) Limited

Kannan Venkataramani

Objective:

The investment objective of the JNL/PAM Asia ex-Japan Fund is long-term total return.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 69.59% for Class  A shares compared with 72.07% for the MSCI Asia ex-Japan Index.

Stock selection in the financial and utility sectors and asset allocation to utilities contributed to the Fund’s performance.  However, stock selection in the consumer discretionary and energy sectors, allocation to consumer discretionary and the Fund’s cash position hurt Fund performance. Taiwan and Hong Kong contributed to the Fund, while Korea and India detracted from Fund performance.

The stock markets of Asia ex-Japan increased sharply during 2009 after experiencing large declines during the global financial crisis in 2008. Gains in 2009 occurred as international economies appeared to stabilize and begin recovering.

AAC Acoustic Technologies Holdings Inc. (“AAC”) and Sterlite Industries India Ltd. (“Sterlite”) were among the larger contributors to Fund performance. Each outperformed its domestic market as well as the region. We believe their valuations are attractive.  We expect AAC’s margins to widen as prices rise for the equipment this China-based company manufactures for high end phones.   We believe Sterlite is one of the world’s lowest cost producers of zinc, copper and aluminium.

In contrast, China Zhongwang Holdings Ltd. (“Zhongwang”) and Shinsegae Co. Ltd. (“Shinsegae”) were among the larger detractors from Fund performance. Each was an overweight that underperformed its domestic market as well as the region.  We like them despite temporary setbacks.  Zhongwang makes aluminium goods but was hit by profit taking and a news report that questioned information about company customers. Zhongwang rejected the news report as groundless. We expect the company to gain from Beijing’s economic stimulus spending.  Shinsegae, an operator of department and discount stores in Korea, suffered because company sales appeared weak. We believe Shinsegae’s valuations are attractive.

Among its larger transactions, the Fund established new positions in Taiwan Semiconductor Manufacturing Co. Ltd. (“Taiwan Semiconductor”) and Samsung Fire & Marine Insurance Co. Ltd. (“Samsung Fire & Marine”). A stake in CNOOC Ltd. (“CNOOC”) was also raised.  We are attracted to valuation and the dividend at Taiwan Semiconductor, a leading foundry.  Samsung Fire & Marine is Korea’s biggest non-life insurer and seems to offer value for the long term.  CNOOC is an offshore oil and gas company that is likely to benefit from China’s growing demand for energy. We estimate that the stock is cheap compared with other China energy stocks.

China, Indonesia and India were the Fund’s top weighted markets at year end.  Led by these three countries, we believe Asia ex-Japan economic growth will exceed that of the world’s developed markets by around 3% annually in the coming years.

At year end, the Fund  moved to neutral in utilities from underweight a year earlier on a belief that the industry had been left behind by a rally and had become attractive.  The Fund moved to overweight in materials from underweight a year earlier by buying POSCO Inc., China Shanshui Cement Group Ltd. and Hindalco Industries Ltd. We believe these companies are attractively valued.

JNL/PAM Asia ex-Japan Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	69.59%
Since Inception	-8.60%
(Inception date December 3, 2007)

Average Annual Total Returns for Class B Shares
1 year	69.80%
Since Inception	-8.40%
(Inception date December 3, 2007)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

Prudential Asset Management (Singapore) Limited is an indirect, wholly-owned subsidiary of Prudential Plc, a publicly ptraded company incorporated in the United Kingdom.  Prudential Plc is not affiliated in any manner with Prudential Financial Inc., a company whose principal place of business is in the United States of America.

JNL/PAM China-India Fund

Prudential Asset Management (Singapore) Limited

DR Rao

Objective:

The investment objective of the JNL/PAM China-India Fund is long-term total return.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed one of its benchmarks by posting a return of 82.27% for Class A Shares compared to 62.29% for the MSCI China Index.  The Fund underperformed its other benchmark, the MSCI India Index which returned 102.81%.  Stock selection in China and Hong Kong benefited the Fund’s relative performance while stock selection in India and currency movements limited returns.

Asian equity markets started 2009 poorly.  Global efforts to avoid an economic crisis paid dividends as an extended period of equity appreciation began in March. The rebound continued in the second and third quarter as stimulus measures by governments gained traction while macroeconomic and production data from China and India stabilized.  China’s commitment to a loose monetary policy also stimulated markets. The fourth quarter saw a slowdown in equity gains on concerns of a pricing bubble.

Hong Kong based automobile and battery producer BYD Co. Ltd. (“BYD”) was the top contributor and reported that its 9-month earnings rose 201% due to strong domestic car sales.  Off-benchmark AAC Acoustic Technologies Holdings Inc. price increased after being supported by positive earnings and guidance from handset brands such as Nokia Oyj and Apple Inc. The top Indian contributor was the Fund’s non-position in Reliance Communications Ltd. which declined because of poor financial results. Indian carmaker Maruti Suzuki India Ltd. was another contributor advancing on increased sales and competitive positioning.  An overweight in China Unicom Hong Kong Ltd. and non-positions in Tencent Holdings Ltd. and Tata Consultancy Services Ltd detracted from performance.

Positions were established in China Resources Land Ltd., China Life Insurance Co. Ltd., Fosun International Ltd., Li Ning Co. Ltd., Sohu.com Inc., Sino-Ocean Land Holdings Ltd., Sinotrans Shipping Ltd., China Zhongwang Holdings Ltd., China Resources Cement Holdings Ltd., China Pacific Insurance (Group) Co. Ltd., Dr. Reddy’s Laboratories Ltd., Colgate-Palmolive India Ltd., Tata Steel Ltd., Hindalco Industries Ltd., Axis Bank Ltd., IVRCL Infrastructures & Projects Ltd., Sterlite Industries India Ltd., Mphasis Ltd., LIC Housing Finances Ltd., Reliance Industries Ltd., GVK Power & Infrastructure Ltd., Sun TV Network Ltd., Rural Electrification Corp. Ltd., OnMobile Global Ltd., Oil India Ltd. and Tata Motors Ltd.

The Fund sold out of positions in Housing Development Finance Corp., China Shipping Development Co. Ltd., Anhui Conch Cement Co. Ltd., Beijing Capital International Airport Co. Ltd., China Resources Power Holdings Co. Ltd., BYD Electronic International Co. Ltd., China Life Insurance Co. Ltd., Satyam Computer Services Ltd., Bharat Heavy Electricals Ltd., Hindustan Unilever Ltd., HDFC Bank Ltd., Tata Power Co. Ltd., NTPC Ltd., Cairn India Ltd., Larsen & Toubro Ltd. and Oil & Natural Gas Corp. Ltd.

During the year consumer discretionary shifted to an overweight while consumer staples went to an underweight position.  The Fund ended the year underweight energy, industrials, healthcare, financials and telecommunications.  Materials, information technology and utilities were overweight positions.   The Fund ended the year underweighting China, Hong Kong and India.  The Fund also has a cash position that will be deployed as deemed by the Fund’s Manager.

JNL/PAM China-India Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	82.27%
Since Inception	-11.77%
(Inception date December 3, 2007)

Average Annual Total Returns for Class B Shares
1 year	82.55%
Since Inception	-11.61%
(Inception date December 3, 2007)

*MSCI Chin-India Index is comprised of 50% MSCI China Index and 50% MSCI India Index.

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

Prudential Asset Management (Singapore) Limited is an indirect, wholly-owned subsidiary of Prudential Plc, a publicly ptraded company incorporated in the United Kingdom. Prudential Plc is not affiliated in any manner with Prudential Financial Inc., a company whose principal place of business is in the United States of America.

JNL/PIMCO Real Return Fund

Pacific Investment Management Company LLC

Mihir Worah

Objective:

The investment objective of the JNL/PIMCO Real Return Fund is to seek maximum real return, consistent with preservation of real capital and prudent investment management.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 17.25% for Class A shares compared to 11.41% for the Barclay’s Capital U.S. TIPS Index.

Main contributors to the Fund’s performance relative to its benchmark in 2009 include:  Corporate bonds, especially exposure to financial companies and high yield credits, added to performance over the year and were among the best performing fixed income assets for all of 2009.  Exposure to non-agency mortgage-backed securities (MBS) and high quality consumer asset-backed securities (ABS) added to annual performance as these bonds also rallied amid strong government policy support.  Positions in inflation-linked bonds in Japan added to performance as these bonds gained from continued government support.

The following strategies negatively impacted the Fund’s performance:  Above-index total duration stemming from U.S. nominal bonds was a negative impact to returns. Nominal interest rates rose during the year as investors’ risk appetites revived, crimping demand for Treasuries and other sovereign bonds.  Underweight shorter maturity Treasury Inflation-Protected Securities (TIPS) was a negative impact to returns. Real yields declined on better than expected economic data, continued asset inflow into shorter maturities, and a general lack of liquidity across the TIPS curve.

The Fund management team invests in the following derivatives; financial future contracts, option contracts, forward foreign currency contracts and swap agreements, as a tool to manage credit, interest and currency exposure as well as to gain overall exposure to certain markets as part of its investment strategy.  Money market futures positions added 1.20% to the Fund’s performance, especially in the U.S., as the U.S. Federal Reserve (“Fed”) indicated that short maturity rates would remain low for longer than markets had expected.  The other derivatives held during the year did not have a significant impact on the Fund’s performance.

Policy responses to the financial crisis and economic downturn that began in the second half of 2008 helped to stabilize the global economy in 2009.  Interest rates generally rose during the year as investors’ risk appetites revived, crimping demand for Treasuries and other sovereign bonds.

TIPS gained 11.41% in 2009 as represented by the Barclays Capital U.S. TIPS Index.  Real yields declined across most of the maturity spectrum with the exception of long dated issues, where real rates rose only modestly.  Real coupon helped returns as did positive inflation accruals despite cyclical disinflationary pressures.  TIPS outperformed comparable maturity nominal bonds overall.

TIPS yields declined most for shorter maturities up through the 5-year sector, partly reflecting an increase in energy prices such as crude and crude products, but mostly a reaction to improved fourth quarter economic data, continued asset inflow into shorter maturities and a general lack of liquidity across the TIPS curve.  TIPS gained despite continued near term disinflationary pressures weighing on market sentiment.  The benchmark ten-year yields ended the year 71 basis points lower at 1.41%.

A striking feature of the U.S. economy as the year drew to a close was the record steepness in the Treasury yield curve.  This steepening also occurred in government yield curves of other major developed economies.  Additionally, corporate bonds, MBS and ABS gained and Treasuries fell during 2009 as government policies helped push investors out of cash and toward higher yielding, riskier assets.

During the year, significant changes in the Fund’s weightings included an increase in cash equivalents of +33%, and a decrease in MBS and non U.S. of -20% and -13%, respectively.

JNL/PIMCO Real Return Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	17.25%
Since Inception	7.89%
(Inception date January 16, 2007)

Average Annual Total Returns for Class A Shares
1 year	17.76%
Since Inception	8.18%
(Inception date January 16, 2007)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/PIMCO Total Return Bond Fund

Pacific Investment Management Company LLC

William H. Gross

Objective:

The investment objective of the JNL/PIMCO Total Return Bond Fund is to realize maximum total return, consistent with the preservation of capital and prudent investment management.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 15.45% for Class A shares compared to 5.93% for the Barclays Capital U.S. Aggregate Bond Index.

Main contributors to the Fund’s performance relative to its benchmark in 2009 included:  An overweight to agency mortgage-backed securities (“MBS”), which enjoyed a powerful rally for all of 2009.  The success of the U.S. Federal Reserve’s (“Fed”) MBS Purchase program drove yield premiums to their tightest levels ever.  An overweight to non-Agency MBS and high quality consumer asset-backed bonds (“ABS”) added to annual performance as these bonds also rallied amid strong government policy support.  Corporate bonds, especially an overweight to bonds of financial companies and high yield credits, added to performance over the year and were among the best performing fixed income assets for all of 2009.  Municipal bonds were also strong performers, and added to annual performance.  Municipal yield ratios relative to Treasuries moved closer to historical averages after widening dramatically last year.  Exposure to Treasury Inflation-Protected Securities (“TIPS”) added to annual performance as real yields outperformed their nominal counterparts during the year.  An allocation to emerging market (“EM”) bonds was positive for performance.  Indices of EM bonds denominated both in U.S. dollars and local EM currencies delivered returns in excess of 20% in 2009.  A major detractor from the Fund’s performance relative to the benchmark was an overweight to duration in the U.S. which detracted from returns as the U.S. Treasury market lagged most other developed bond markets in 2009.

The Fund management team invests in the following derivatives; financial future contracts, option contracts, forward foreign currency contracts and swap agreements, as a tool to manage credit, interest and currency exposure as well as to gain overall exposure to certain markets as part of its investment strategy.  Money market futures positions added 2.55% to the Fund’s performance as the Fed indicated that short maturity rates would remain low for longer than markets had expected.  The other derivatives held during the year did not have a significant impact on the Fund’s performance.

Policy responses to the financial crisis and economic downturn that began in the second half of 2008 helped to stabilize the global economy in 2009.  Interest rates generally rose in the fourth quarter and for the full year as investors’ risk appetites revived, crimping demand for Treasuries and other sovereign bonds.  The Barclays Capital U.S. Aggregate Index, a widely used index of U.S. high-grade bonds, returned 0.20% during the fourth quarter and 5.93% for all of 2009.

Initiatives such as the Fed’s purchase of mortgage and Treasury securities, the Fed’s commitment to hold short-term rates near zero and government support for consumer finance markets were major factors behind enhanced stability.  The U.S. economy expanded in the third quarter and was expected to do so again in the final quarter amid a modest recovery in consumer spending and a slower rate of inventory draw down by businesses.

A striking feature of the U.S. economy as the year drew to a close was the record steepness in the Treasury yield curve.  This steepening also occurred in government yield curves of other major developed economies.  Additionally, corporate bonds, MBS and ABS gained and Treasuries fell during 2009 as government policies helped push investors out of cash and toward higher yielding, riskier assets.

During the year, significant changes in the Fund’s weightings included an increase in government securities and non U.S. of +19% and +13%, respectively, and a decrease in MBS of - -24%.

JNL/PIMCO Total Return Bond Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	15.45%
5 year	5.84%
10 year	6.83%

Average Annual Total Returns for Class A Shares
1 year	15.66%
5 year	6.04%
Since Inception	5.60%
(Inception date March 5, 2004)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/PPM America Funds

PPM America, Inc.

Team Management

JNL/PPM America Mid Cap Value Fund

JNL/PPM America Small Cap Value Fund

JNL/PPM America Value Equity Fund

In 2009, the S&P 500 Index increased 26.46%, in contrast to a decline of -37.00% in 2008.  The consensus view was that the U.S. exited one of the longest recessions (which started in December 2007) in its history.  The U.S. Federal Reserve (“Fed”) Funds rate remained unchanged for all of 2009 at a rate of 0% - 0.25%.  The Federal Open Market Committee believed economic conditions were likely to warrant exceptionally low short-term interest rates for an extended period.  Additionally, inflation is forecasted to remain in check.  Sector performance followed the typical textbook cycle in 2009.  Early cyclical stocks outperformed in 2009 with the information technology (+61.7%) and consumer discretionary (+41.3%) sectors leading the way.  The materials sector (+48.6%) took its place among the best performers as commodity prices increased globally.  Traditional defensive sectors such as utilities (+11.9%) and telecommunication services (+8.9%), underperformed the broad market.  Health care stocks (+19.7%) were weak for much of 2009 as Congress attempted to reform healthcare.  Not surprising, given the strong technology performance in 2009, within the S&P 500 Index, the top five stock contributors included Apple Inc., Microsoft Corp., Google Inc., IBM and Cisco Systems Inc. The worst five stock contributors for the year included Exxon Mobil Corp., Citigroup, General Electric Co., Wells Fargo & Co. and Gilead Sciences Inc.  Value based investment styles underperformed growth based investment styles by a sizable margin. The S&P 500/Citigroup Growth Index increased 31.57% whereas the S&P 500/Citigroup Value Index increased 21.18%.  Overall market capitalization influenced 2009 equity returns.  The largest 100 stocks in the S&P 500 Index returned 20.26% compared to 87.50% for the smallest 100 stocks.  As the effect of the 2008 credit crisis eased, U.S. equity market volatility declined in 2009.  The CBOE Volatility Index (“VIX”), an index measuring option market volatility, fell nearly 50% from a year earlier.

JNL/PPM America Mid Cap Value Fund

Objective: The investment objective of the JNL/PPM America Mid Cap Value Fund is long-term growth of capital.

Fund Specific Overview: For the year ended December 31, 2009, the Fund outperformed its benchmarks by posting a return of 47.38% for Class A shares compared to 34.21% for the Russell Mid Cap Value Index and 40.48% for the Russell Mid Cap Index.  The Fund’s outperformance relative to the Russell Mid Cap Index can be primarily attributed to individual stock selection. The relative overweight position in the consumer discretionary sector and underweight position in the financials sector helped Fund performance.  Even though the Fund had an overweight position in the information technology sector, individual stock selection detracted from Fund performance.

Companies that contributed to the Fund’s outperformance included independent oil and gas company, Newfield Exploration Co., cruise operator, Royal Caribbean Cruises Ltd., and metals service center, Reliance Steel & Aluminum Co.  Improved economic and credit conditions have influenced all three companies positively in 2009.  Companies that detracted from the Fund’s performance included healthcare services company, Res-Care Inc., holding company, Astoria Financial Corp., and energy company, Comstock Resources Inc.

New purchases during the year included Viacom Inc., Bally Technologies Inc., Edison International Inc. and Novell Inc.  Sales included Sherwin-Williams Co., Apache Corp., Masco Corp. and Pinnacle West Capital Corp.  Contract drilling company, ENSCO International Inc., purchased during the year, was sold when the company announced that it would reincorporate in the UK in late 2009.  Healthcare services provider, IMS Health Inc., also purchased during the year, was sold after the company announced that it would be acquired by TPG Capital LP and the Canada Pension Plan Investment Board.

Relative to the Russell Mid Cap Index, the Fund’s overweight position in energy was reduced to an underweight.  The Fund’s overweight position in industrials and significant underweight in utilities was reduced during the year. At year end, compared to the Russell Mid Cap Index, the Fund was overweight in the industrials, materials and consumer discretionary sectors and was underweight in the financials and information technology sectors.

We believe the market’s current valuation is attractive and that the Fund is inexpensive relative to the overall market.  We continue to favor stocks within the industrials, materials and consumer discretionary sectors, which relative to the Russell Mid Cap Index are the Fund’s larger sector overweight positions at the end of the year.  We believe these sectors are still very attractive on a long-term basis and offer significant upside potential using our normal 2 to 3 year investment time horizon.

JNL/PPM America Small Cap Value Fund

Objective: The investment objective of the JNL/PPM America Small Cap Value Fund is long-term growth of capital.

Fund Specific Overview: For the year ended December 31, 2009, the Fund outperformed its benchmarks by posting a return of 33.97% for Class A shares compared to 22.85% for the S&P Smallcap 600/Citigroup Value Index and 25.57% for the S&P Small Cap 600 Index. The Fund’s outperformance relative to the S&P Small Cap 600 Index can be primarily attributed to individual stock selection. The relative overweight position in the consumer discretionary sector and underweight in the financials sector helped Fund performance.  The underweight position in the information technology sector detracted from Fund performance.

Companies that contributed to the Fund’s outperformance included technology company, Omnivision Technologies Inc., and consumer names, NBTY Inc., which specializes in nutritional supplements, and apparel/footwear company, Skechers U.S.A., Inc.  All three companies are benefiting from sales and margin improvements despite a soft retail environment.  Stock names that detracted from the Fund’s performance were recreational products company, JAKKS Pacific Inc., financial firm, Associated Banc-Corp., which was sold during period, and health care services company, Res-Care Inc.

Purchases during the year included Abercrombie & Fitch Co., Spirit AeroSystems Holdings Inc., Bally Technologies Inc., Apogee Enterprises Inc., Hain Celestial Group Inc. and Novell Inc.  Sales during the year included Associated Banc-Corp., Macy’s, Newfield Exploration Co., Avnet Inc., Masco Corp., Pinnacle West Capital Corp. and Royal Caribbean Cruises Ltd.  Healthcare services provider, IMS Health Inc., also purchased during the year, was sold after the company announced that it would be acquired by TPG Capital LP and the Canada Pension Plan Investment Board.

Relative to the S&P 600 Small Cap Index, the Fund  increased its overweight position in the industrials and consumer staples sectors.  The energy sector overweight was reduced to a modest underweight while the materials sector overweight position was also decreased during the year.

Compared to the S&P 600 Small Cap Index, at year end the Fund was overweight in the industrials, consumer discretionary and consumer staples sectors and was underweight in the information technology, healthcare and financials sectors.

We believe the market’s current valuation is attractive and that the Fund is inexpensive relative to the overall market.  We continue to favor stocks within the industrials, consumer discretionary and consumer staples sectors, the Fund’s larger sector overweight positions, relative to the S&P 600 Small Cap Index, at the end of the year.  We believe these sectors are still very attractive on a long-term basis and offer significant upside potential using our normal 2 to 3 year investment time horizon.

JNL/PPM America Value Equity Fund

Objective: The investment objective of the JNL/PPM America Value Equity Fund is long-term growth of capital.

Portfolio Manager Commentary: For the year ended December 31, 2009, the Fund outperformed its benchmarks by posting a return of 44.58% for Class A shares compared to 26.46% for the S&P 500 Index and 21.18% for the S&P 500/Citigroup Value Index.  The Fund’s outperformance relative to the S&P 500 Index can be primarily attributed to individual stock selection.  The relative overweight positions in the materials and consumer discretionary sectors helped Fund performance.  The underweight position in the information technology sector detracted from Fund performance.

A diverse group of stocks including energy company, Newfield Exploration Co., managed healthcare name, CIGNA Corp., and global financial services company, Morgan Stanley, led Fund outperformance.  Companies that detracted from Fund performance included Citigroup whose fundamentals weakened significantly and the stock was sold during the year, property/casualty insurance company, Allstate Insurance, a company impacted by the financial crisis, and steel company, Nucor Corp., a company who has seen little improvement in real demand.

New purchases included Microsoft Corp., Johnson & Johnson, Procter & Gamble Co., Edison International Inc. and Lockheed Martin Corp.  Sales included Citigroup, Sherwin-Williams Co., Masco Corp. and E.I. DuPont de Nemours & Co. Contract drilling company, ENSCO International Inc., purchased during the year, was sold when the company announced that it would reincorporate in the UK in

JNL/PPM America Funds

PPM America, Inc.

Team Management

2009.  Healthcare services provider, IMS Health Inc., also purchased during the year, was sold after the company announced that it would be acquired by TPG Capital LP and the Canada Pension Plan Investment Board.

Relative to the S&P 500 Index, the Fund reduced its significant underweight position in the healthcare and consumer staples sectors.  The relative weight in the financials and consumer discretionary sector positions were reduced.

At year end the Fund was overweight, compared to the S&P 500 Index in the financials, consumer discretionary and materials sectors and was underweight in the information technology, consumer staples and healthcare sectors.

We believe the market’s current valuation is attractive and that the Fund is inexpensive relative to the overall market.  We continue to favor stocks within the financials and consumer discretionary sectors, the Fund’s larger sector overweight positions relative to the S&P 500 Index at the end of the year.  We believe these sectors are still very attractive on a long-term basis and offer significant upside potential using our normal 2 to 3 year investment time horizon.

JNL/PPM America Mid Cap Value Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	47.38%
Since Inception	-9.46%
(Inception date March 31, 2008)

Average Annual Total Returns for Class A Shares
1 year	47.82%
Since Inception	-9.25%
(Inception date March 31, 2008)

JNL/PPM America Small Cap Value Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	33.97%
Since Inception	-9.09%
(Inception date March 31, 2008)

Average Annual Total Returns for Class B Shares
1 year	34.30%
Since Inception	-8.89%
(Inception date March 31, 2008)

JNL/PPM America Value Equity Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	44.58%
5 year	-3.11%
10 year	-0.64%

Average Annual Total Returns for Class B Shares
1 year	44.72%
5 year	-2.90%
Since Inception	-1.65%
(Inception date March 5, 2004)

PPM America, Inc. assumed portfolio responsibility on January 16, 2007.

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/PPM America High Yield Bond Fund

PPM America, Inc.

Anthony Balestrieri & Scott B. Richards

Objective:

The investment objective of the JNL/PPM America High Yield Bond Fund is to maximize current income.  As a secondary objective, the Fund seeks capital appreciation.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 46.30% for Class A shares compared to 58.10% for the Merrill Lynch High Yield Master II Constrained Index.

The Fund performed well against the universe of actively managed portfolios, which on average trailed the record setting returns posted by high yield indices by very large margins.  The Fund outperformed the average return for the Peer Group (Morningstar High Yield Variable Annuity Funds) by 106 basis points (“bps”).

Returns as measured by high yield indices set records in 2009.  Actual high yield bond funds also generated outsized returns, but the average active manager lagged index returns by over 1000 bps and passive managers ETFs trailed by even larger margins.  Large investor inflows, illiquid trading markets and significant index turnover were the major drivers of the dislocation between theoretical index results and the returns generated by actual funds.

The Fund was the beneficiary of strong investor inflows throughout most of the year and tripled in size during 2009.  While the Fund was able to invest the monies fairly efficiently and maintain cash balances below 4-5% for most of the year, cash and cash substitutes significantly underperformed the broader high yield market and cost the Fund 561 bps versus its benchmark.  High yield indices maintain zero cash balances and incur no trading costs.

The 2009 rally in high yield was led by the lower end of the quality spectrum.  CCC rated securities generated returns of over 90% and the distressed sector was well over 135% in their respective Barclays Capital U.S. High Yield Index categories.  The Fund’s strategy to generate sustainable current income by investing broadly in “core” high yield issues caused it to be underweight the most speculative “tail” section of the market, which in aggregate generated extraordinary returns this year.

The high yield market rallied dramatically through most of 2009 and generated record returns.  The Merrill Lynch U.S. High Yield Master II Index, of which the Fund’s benchmark is a subset, was up over 57%, easily surpassing the previous record of 39% set in 1991.  This year’s rebound started in December 2008 and after a brief pause in February, rallied consistently for the next ten months.  The recovery was lead by the riskiest sectors of the high yield market as CCC-rated issues, the financial sector and high beta issues outperformed the broader market.  The Merrill Lynch U.S. High Yield Master II Index yielded 19.6% with an option adjusted spread (“OAS”) of over 1800 bps at year end 2008, a year later those metrics plummeted to 9.1% and 639 bps respectively.

Investors continued to fuel the market rally throughout the year with strong and steady inflows into the sector.  Mutual fund flows as measured by AMG Data Services were over $31 billion in 2009, a staggering 35% increase in assets.  Strong investor demand resulted in large volumes of new issues for high yield companies, which used the capital market opportunity to extend maturities and increase financial liquidity.  These balance sheet improvements in turn, lead to rapidly decreasing default rate expectations for 2010 for individual issuers and the market aggregates.  Defaults in 2009 increased largely as expected to approximately 13%, but default forecasts for 2010 which were over 15% a year ago, plummeted this year and now show a consensus closer to 4%.

Attribution analysis, which compares the Fund to its benchmark, indicates the largest sources of underperformance came from cash and underweighted holdings in the most speculative issues in the banking, insurance and automobile industries which rebounded dramatically in 2009.  Holdings in more defensive industries such as cable and utility sectors generally performed well, but failed to keep pace with the broader market.  On an individual name basis, the largest detractors of relative performance generally included the most speculative names in the sector not owned or underweighted by the Fund. Three notable issuers - AIG Inc., CIT Group Inc., and Residential Capital LLC – accounted for over 170 bps of relative underperformance versus its benchmark.

Fund performance versus its benchmark was enhanced by the Fund’s overweighted investment in the homebuilder and telecommunication sectors and by superior security selection in the chemical, food and gas distribution industries.  The Fund’s commercial mortgaged-backed securities (“CMBS”) and bank loan investments also enhanced relative performance during the year.  On an individual name basis; Stone Container Finance Co., Harrah’s Entertainment Inc., HCA Inc. and chemical company, Ineos Group Holdings Plc, were the top contributors, adding over 210 bps in aggregate.

The Fund attempted to maintain a consistent and balanced portfolio throughout the year despite the rapid growth in assets experienced during the year.  The Fund was an active participant in the new high yield issue market and despite diminished trading liquidity, utilized the secondary trading markets whenever attractive opportunities were available.  During the year, the Fund increased its holdings in the banking, retailer and airline industries and reduced weightings in the utility, homebuilder and healthcare sectors.

The Fund holds a broadly diversified portfolio of high yield bonds across several dozen industry sectors.  The Fund maintains a risk profile in line with the broad high yield universe and is consistent with our relatively constructive view of the market.  The largest overweights in the Fund at year end include the cable, airline, media and telecommunications industries and our CMBS and investment grade financial holdings, which are not owned by its benchmark.  The Fund’s most significant underweights include energy, healthcare and support services.

JNL/PPM America High Yield Bond Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	46.30%
5 year	2.40%
10 year	4.99%

Average Annual Total Returns for Class B Shares
1 year	46.58%
5 year	2.61%
Since Inception	3.39%
(Inception date March 5, 2004)

PPM America, Inc. assumed portfolio responsibility on April 30, 2007.

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Red Rocks Listed Private Equity Fund

Red Rocks Capital LLC

Adam Goldman & Mark Sunderhuse

Objective:

The investment objective of the JNL/Red Rocks Listed Private Equity Fund is to seek maximum total return.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of  40.33% for Class A shares compared to 61.65% for the S&P Listed Private Equity Index.

The Fund manager was cautious in selections of listed private equity names and purposefully avoided many names that were or still are a going concern.  This hurt the Fund’s performance on a relative basis but the absolute return faired well versus the risk taken.  In addition, the Fund manager focused on the ability of companies to fund their economic commitments and also paid close attention to valuation metrics.

The market conditions impacting private equity were threefold.  Private equity companies were significantly limited in their ability to obtain leverage, to exit, or monetize their portfolio investments, and the valuation metrics used to value existing investments were substantially lower.  Many of these factors improved in 2009, but more time will be needed for investors to regain confidence in the market and in private equity.

Net contributors to the Fund’s performance included KKR Private Equity Investors LLP, AP Alternative Assets LP, GP Investments Ltd., Wendel Investissement and Ratos AB.  Net detractors to the Fund’s performance included  Candover Investments PLC, Babcock & Brown Infrastructure Group, DeA Capital SPA, European Capital Ltd. and Capital Southwest Corp.

Significant purchases during the year included KKR Private Equity Investors LLP, Onex Corp. and 3i Group Plc.  There were no significant sales during the year.

Looking to the new year, the Fund manager continues to seek out companies that exhibit the following consistent characteristics: companies that have lower debt levels; companies that can take advantage of the dislocated environment; companies that can access capital for new investments; and companies that can raise liquidity in existing investments.

JNL/Red Rocks Listed Private Equity Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	40.33%
Since Inception	-13.65%
(Inception date October 6, 2008)

Average Annual Total Returns for Class B Shares
1 year	40.62%
Since Inception	-13.49%
(Inception date October 6, 2008)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/S&P Funds

Standard & Poor’s Investment Advisory Services, LLC

Team Management

JNL/S&P Managed Conservative Fund

JNL/S&P Managed Moderate Fund

JNL/S&P Managed Moderate Growth Fund

JNL/S&P Managed Growth Fund

JNL/S&P Managed Aggressive Growth Fund

JNL/S&P Disciplined Moderate Fund

JNL/S&P Disciplined Moderate Growth Fund

JNL/S&P Disciplined Growth Fund

Investment Objective:

The investment objective of the JNL/S&P Managed Conservative Fund, the JNL/S&P Managed Moderate Growth Fund and the JNL/S&P Disciplined Moderate Growth Fund is capital growth and current income.  The investment objective of the JNL/S&P Managed Moderate Fund, the JNL/S&P Managed Growth Fund and the JNL/S&P Disciplined Moderate Fund is to seek capital growth.  Current income is a secondary objective. The investment objective of the JNL/S&P Managed Aggressive Growth Fund and the JNL/S&P Disciplined Growth Fund is capital growth.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the JNL/S&P Managed Conservative Fund returned 13.53% and the JNL/S&P Managed Moderate Fund returned 18.63%. The JNL/S&P Managed Moderate Growth Fund returned 23.46%, the JNL/S&P Managed Growth Fund returned 28.06% and the JNL/S&P Managed Aggressive Growth Fund returned 31.05%.  All five of the JNL/S&P Managed Funds outperformed the Barclays Capital U.S. Aggregate Bond Index which returned 5.93%. The JNL/S&P Managed Conservative Fund, the JNL/S&P Managed Moderate Fund, and the JNL/S&P Managed Moderate Growth Fund underperformed the S&P 500 Index which returned 26.46%, while the JNL/S&P Managed Growth Fund and the JNL/S&P Managed Aggressive Growth Fund  outperformed the S&P 500 Index.

For the year ended December 31, 2009, the JNL/S&P Disciplined Moderate Fund returned 18.67%, the JNL/S&P Disciplined Moderate Growth Fund returned 22.77% and the JNL/S&P Disciplined Growth Fund returned 25.39%.  All the funds outperformed the Barclays Capital U.S. Aggregate Bond Index which returned 5.93% and underperformed the S&P 500 Index, which returned 26.46%.

JNL/S&P Managed Conservative Fund

Aiding performance to the upside last year were allocations to JNL/T. Rowe Price Value Fund and JNL/AIM International Growth Fund relative to the S&P 500 Index as well as to JNL/PIMCO Real Return Fund, JNL/PIMCO Total Return Bond Fund and JNL/Goldman Sachs Core Plus Bond Fund vis-à-vis the Barclays Capital U.S. Aggregate Bond Index.

Detracting from performance last year were allocations to JNL/Select Value Fund and JNL/AIM Large Cap Growth Fund by comparison to the S&P 500 Index, JNL/Select Money Market Fund and JNL/JP Morgan U.S. Government and Quality Bond Fund relative to the Barclays Capital U.S. Aggregate Bond Index as well as having not allocated to JNL/Lazard Emerging Markets Fund, JNL/PAM Asia ex-Japan Fund and JNL/Capital Guardian International Small Cap Fund vis-à-vis the S&P 500 Index and JNL/PPM America High Yield Bond Fund in terms of the Barclays Capital U.S. Aggregate Bond Index.

JNL/S&P Managed Moderate Fund

JNL/S&P Managed Moderate Growth Fund

JNL/S&P Managed Growth Fund

Aiding performance to the upside last year were allocations to JNL/Lazard Emerging Markets Fund, JNL/T. Rowe Price Mid-Cap Growth Fund and JNL/T. Rowe Price Established Growth Fund relative to the S&P 500 Index as well as to JNL/PIMCO Real Return Fund, JNL/PIMCO Total Return Bond Fund and JNL/Goldman Sachs Core Plus Bond Fund vis-à-vis the Barclays Capital U.S. Aggregate Bond Index.

Detracting from performance last year were allocations to JNL/Select Value Fund and JNL/AIM Large Cap Growth Fund by comparison to the S&P 500 Index, JNL/Select Money Market Fund and JNL/JP Morgan U.S. Government and Quality Bond Fund relative to the Barclays Capital U.S. Aggregate Bond Index as well as having not allocated to JNL/PAM Asia ex-Japan Fund and JNL/PAM China-India Fund vis-à-vis the S&P 500 Index and JNL/PPM America High Yield Bond Fund in terms of the Barclays Capital U.S. Aggregate Bond Index.

JNL/S&P Managed Aggressive Growth Fund

Aiding performance to the upside last year were allocations to JNL/Lazard Emerging Markets Fund, JNL/T. Rowe Price Mid-Cap Growth Fund and JNL/T. Rowe Price Established Growth Fund relative to the S&P 500 Index as well as to JNL/PIMCO Real Return Fund and JNL/Goldman Sachs Emerging Market Debt Fund vis-à-vis the Barclays Capital U.S. Aggregate Bond Index.

Detracting from performance last year were allocations to JNL/Select Value Fund and JNL/AIM Large Cap Growth Fund by comparison to the S&P 500 Index, JNL/Select Money Market Fund and JNL/JP Morgan U.S. Government and Quality Bond Fund relative to the Barclays Capital U.S. Aggregate Bond Index as well as having not allocated to JNL/PAM China-India Fund vis-à-vis the S&P 500 Index and JNL/PPM America High Yield Bond Fund in terms of the Barclays Capital U.S. Aggregate Bond Index.

JNL/S&P Disciplined Moderate Fund

Aiding performance to the upside last year were allocations to JNL/Mellon Capital Management JNL Optimized 5 Fund and JNL/Mellon Capital Management S&P 400 MidCap Index Fund relative to the S&P 500 Index as well as to JNL/PIMCO Real Return Fund vis-à-vis the Barclays Capital U.S. Aggregate Bond Index.

Detracting from performance last year were allocations to JNL/Mellon Capital Management Select Small Cap Fund by comparison to the S&P 500 Index and JNL/Select Money Market Fund relative to the Barclays Capital U.S. Aggregate Bond Index as well as having not allocated to the JNL/Mellon Capital Management 25 Fund vis-à-vis the S&P 500 Index and JNL/Goldman Sachs Emerging Market Debt Fund vis-à-vis the Barclays Capital U.S. Aggregate Bond Index.

JNL/S&P Disciplined Moderate Growth Fund

JNL/S&P Disciplined Growth Fund

Aiding performance to the upside last year were allocations to JNL/Mellon Capital Management 25 Fund, JNL/Mellon Capital Management JNL Optimized 5 Fund and JNL/Mellon Capital Management S&P 400 MidCap Index Fund relative to the S&P 500 Index as well as to JNL/PIMCO Real Return Fund vis-à-vis the Barclays Capital U.S. Aggregate Bond Index.

Detracting from performance last year were allocations to JNL/Mellon Capital Management Select Small Cap Fund by comparison to the S&P 500 Index and JNL/Select Money Market Fund relative to the Barclays Capital U.S. Aggregate Bond Index as well as having not allocated to JNL/Goldman Sachs Emerging Market Debt Fund vis-à-vis the Barclays Capital U.S. Aggregate Bond Index.

2009 Market Overview

Despite a mildly shaky start to the fourth quarter of 2009, equity markets globally shook off initial jitters and, with the exception of Japan, demonstrated remarkable buoyancy during the October to December period, broadening their gains from the third quarter in the process.  Meanwhile, emerging markets, combined with high yield and investment grade corporate fixed income markets worldwide complemented what they had achieved in the three prior quarters to attain significant positive performance.  Positive performance was a result of resurgent investors’ risk appetites for yield that recompressed speculative and investment grade spreads to the disadvantage of U.S. Treasuries.  Domestic and foreign real estate market returns recovered further from October to December, and the performance of commodities rebounded as well in the final quarter of 2009.

Three consecutive quarters of increasingly progressive, positive performance overturned a deeply unfavorable beginning of the year, testifying convincingly to the keenness of investors to abandon risk aversion and exploit lower market valuations to their financial advantage.

Although the U.S. housing market experienced some renewed unsteadiness, riskier investment appetites, combined with healthier corporate earnings and holiday demand trends to reinforce investor confidence, underpined capital market performance in the last quarter of 2009.  High yield debt markets proceeded to lure investors, whose escalating distrust of the undisciplined fiscal practices of Western nations and dubious credit status of some high grade corporate issuers has encouraged them to pursue avenues of investment more deserving of their risk eagerness.

In spite of a feeble start to the fourth quarter, domestic stock markets retained their winning edge, posting solid single digit increases in performance, but underperforming many, if not most, of their mature and emerging competitors.  Large capitalization stocks outdid their small and mid cap rivals for the quarter; yet, small cap, which were up 37.4%, prevailed for the year.  Meanwhile, growth outdistanced value by 320 basis points during the quarter and 994 basis points for the year.  In 2009, every sector re- corded positive performance to one extent or another.  Those outperforming the S&P 500 Index included technology and consumer discretionary along with materials as

JNL/S&P Funds

Standard & Poor’s Investment Advisory Services, LLC

Team Management

other sectors did poorer than the S&P 500 Index.  In surrendering 2.2% last quarter, financials saw their performance for the year depressed to 15.5%, a slight setback to an otherwise amazing comeback for the industry.

Market Outlook

As an ever so gradual economic revival proceeds to take shape globally, enduring concerns in the capital markets about its potential to strengthen sustainably in 2010 could limit the scope for further equity appreciation in the coming months.  Evidence thus far of only patchy progress in the recovery of business activity worldwide spells little enthusiasm and incentives for taking additional risk in stock markets around the globe.  Anticipated high unemployment levels should continue to restrain consumer spending, promote further cost streamlining, discourage capital investing and hamper top line corporate revenue growth to the disadvantage of company valuations and shareholder value.  Rising joblessness aside, many mature economies, like core Euro-zone, U.S., Canada and UK, appear to have bottomed conclusively and already begun to rebound, albeit tediously.  Even so, we remain unconvinced of the recovery’s sustainability in much of Western Europe and north of the Rio Grande.

Irrespective of the measures put in place by Western Europe’s governments and central banks to breathe life into domestic business activity in their respective economies, tentatively embryonic signs of a bottoming in the contraction have come to light thus far, indicating that a recovery in the Euro-zone, UK, Swiss and Scandinavian economies may start to consolidate some time in 2010.  To date, the only source of economic impetus has emanated from expansionary credit and fiscal policies, which have reinvigorated internal demand somewhat.  Yet, any restrengthening of the euro, sterling and Swiss franc would stand in the way of a more energetic economic rebound by deterring demand from overseas markets.

Deflation, despite an anomalously overstated fractional rebound of late in real activity, is expected to continue to plague the Japanese economy and overshadow other policy matters for quite some time to come.  Foreign trade, Japan’s main engine of growth, may seem to have regained some momentum of late, as have some other economic indicators, but the strength of the yen, no matter what measures newly appointed Finance Minister Kan may employ to try to weaken the Japanese unit, should proceed to weigh on export competitiveness.  Meantime, internal sources of macroeconomic activity are faring worse than their external counterparts, and prospects for a measurable rebound remain bleak since domestic demand is likely to stay sidelined for much of this year.  As a result of dormant consumption patterns, output will remain sluggish and unemployment could increase further.  Politically, the ruling Democratic Party of Japan appears helpless in the face of a dire economic situation insofar as we believe it lacks the effective wherewithal to rescue the nation from the psychological grip of declining prices.

While a significant divide persists between emerging and mature stock market performance, dubious and perhaps disingenuous market speculation of a disconnection, or decoupling, of the former from the latter distracts attention from the more pertinent topic of the variation in returns among emerging markets in 2009, a trend that is likely to last for the foreseeable future, with Latin America again edging out Central and Eastern Europe, Middle East and Africa and perhaps both surpassing Asia ex-Japan again.

Debt market performance, with returns of low quality having outshined those of high quality fixed income last year, could come undone if growing investor fatigue vis-à-vis unparalleled fiscal indiscipline by governments of mature markets were to exacerbate fears of insolvency.  Steepening U.S .Treasury, UK gilt and Euro-zone yield curves are signaling a degree of gloom, but not outright doom as yet, for the mature government bond markets.  Investors search for higher returns may have worked to the advantage of the emerging and high yielding fixed income markets, but the resurgent hunger for riskier debt instruments may be laying the foundation for the eventual emergence of yet another asset market bubble that, if it were to burst, could provoke yet another crisis, entailing, once again, a reversion in demand for more secure investments.

JNL/S&P Managed Conservative Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	13.53%
5 year	3.09%
Since Inception	3.62%
(Inception date October 4, 2004)

JNL/S&P Managed Moderate Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	18.63%
5 year	3.13%
Since Inception	4.02%
(Inception date October 4, 2004)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/S&P Funds

Standard & Poor’s Investment Advisory Services, LLC

Team Management

JNL/S&P Managed Moderate Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	23.46%
5 year	3.03%
10 year	2.54%

JNL/S&P Managed Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	28.06%
5 year	1.99%
10 year	1.51%

JNL/S&P Managed Aggressive Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	31.05%
5 year	1.76%
10 year	0.32%

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/S&P Funds

Standard & Poor’s Investment Advisory Services, LLC

Team Management

JNL/S&P Disciplined Moderate Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	18.67%
Since Inception	-2.35%
(Inception date January 16, 2007)

JNL/S&P Disciplined Moderate Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	22.77%
Since Inception	-5.18%
(Inception date January 16, 2007)

JNL/S&P Disciplined Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	25.39%
Since Inception	-6.81%
(Inception date January 16, 2007)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/S&P Funds

Standard & Poor’s Investment Advisory Services LLC

Massimo Santicchia

JNL/S&P Competitive Advantage Fund

JNL/S&P Dividend Income & Growth Fund

JNL/S&P Intrinsic Value Fund

JNL/S&P Total Yield Fund

Despite a mildly shaky start to the fourth quarter of 2009, equity markets globally shook off initial jitters and, with the exception of Japan, demonstrated remarkable buoyancy during the October to December period, broadening their gains from the third quarter in the process.  Meanwhile, emerging markets, combined with high yield and investment grade corporate fixed income markets worldwide,  complemented what they had achieved in the three prior quarters to attain significant positive performance.  Positive performance was a result of resurgent investors’ risk appetites for yield that recompressed speculative and investment grade spreads to the disadvantage of U.S. Treasuries.  Domestic and foreign real estate market returns recovered further from October to December, and the performance of commodities rebounded as well in the final quarter of 2009.

Three consecutive quarters of increasingly progressive, positive performance overturned a deeply unfavorable beginning of the year, testifying convincingly to the keenness of investors to abandon risk aversion and exploit lower market valuations to their financial advantage.

As we look forward to 2010, we believe that equity market performance will be more contained and differentiated across sectors, styles and market capitalization ranges. Our approach remains focused on seeking to construct concentrated portfolios with positive exposure to historically favorable alpha factors. We believe this disciplined approach has the potential to generate an overall performance which has limited relationship to traditional equity styles and economic sectors’ performance. Our positioning at the stock selection date emphasized a combination of what we believed to be high quality and value factors.

The Funds were rebalanced in early December based on the December 1, 2009 stock selection date.

JNL/S&P Competitive Advantage Fund

Objective: The investment objective of the JNL/S&P Competitive Advantage Fund is capital appreciation.

Fund Specific Overview: For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 44.22% for Class A shares compared to 26.46% for the S&P 500 Index.

The main alpha factors driving the performance of the Fund, return on invested capital and price to book, interacted positively to generate significant outperformance over the benchmark for the year.  Historically, companies with high return on capital have shown a tendency to be more resilient to economic recessions and less sensitive to overall corporate earnings growth. This behavior was evident during the first quarter of 2009 when the Fund outperformed its benchmark by over 10%. As the market rebounded sharply over the following three quarters, the Fund kept up with the market thus showing almost full participation in up markets.

Attribution analysis indicates that for the year, both sector allocation and stock selection positively contributed to performance. Top contributors, with positive contribution, were stocks in the consumer discretionary, energy and consumer staples sectors. Bottom contributors, with negative contribution, were stocks in the industrials and technology sectors.

As of year end, the Fund was significantly overweighted in consumer discretionary and underweighted in financials, telecommunicaton and utilities.  50% of the stocks had an S&P Quality Rank of at least A- and 80% of at least B+.

JNL/S&P Dividend Income & Growth Fund

Objective: The investment objective of the JNL/S&P Dividend Income & Growth Fund is primarily capital appreciation with a secondary focus on current income.

Fund Specific Overview: For the year ended December 31, 2009, the Fund underperformed its benchmark by posting a return of 23.47% for Class A shares compared to 26.46% for the S&P 500 Index.

The main alpha factors driving the performance of the Fund, dividend yield, S&P Quality Rankings and S&P credit ratings, were out of favor, as investors moved towards riskier securities.  Historically, companies with greater than average S&P Quality Rankings and S&P credit ratings have shown a tendency to be more resilient to economic recessions and less sensitive to overall corporate earnings growth.  However, the Fund suffered a sharp drawdown in the first quarter of 2009 due to dislocation in the credit markets and the dividend yield’s difficulties in identifying potential value opportunities.  As credit markets stabilized, the Fund rebounded in the following quarters in line with the overall market.

Attribution analysis indicates that for the year, the Fund’s underperformance was attributable to negative sector allocation effects despite positive stock selection effects.  Top contributors, with positive contribution, were stocks in the consumer staples, consumer discretionary, financials and industrials sectors.  Bottom contributors, with negative contribution were stocks in the technology, materials and utilities sectors.

As of year end, the Fund was significantly overweighted in telecommunication, materials and utilities and underweighted in technology and financials.  80% of the stocks had an S&P Quality Rank of at least A- and 97% of at least B+.

JNL/S&P Intrinsic Value Fund

Objective: The investment objective of the JNL/S&P Intrinsic Value Fund is capital appreciation.

Fund Specific Overview: For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 57.04% for Class A shares compared to 26.46% for the S&P 500 Index.

The main alpha factors driving the performance of the Fund, free cash flow and external financing, interacted positively to generate significant outperformance over the benchmark for the year.  As the credit market crisis unfolded and the stock market crashed, many stocks in the Fund became extremely inexpensive on a number of valuation metrics.  As the market rebounded from the March lows, the Fund significantly outperformed its benchmark.

Attribution analysis indicates that for the year both sector allocation and stock selection positively contributed to performance.  Top contributors, with positive contribution, were stocks in the consumer discretionary, materials, health care, consumer staples and telecommunication sectors. The only negative contribution came from stocks in the technology sector.

As of year end, the Fund was significantly overweighted in industrials, health care, discretionary and staples, and underweighted in technology, financials, energy, telecommunication and materials.  30% of the stocks had an S&P Quality Rank of at least A- and 80% of at least B+.

JNL/S&P Funds

Standard & Poor’s Investment Advisory Services LLC

Massimo Santicchia

JNL/S&P Total Yield Fund

Objective: The investment objective of the JNL/S&P Total Yield Fund is capital appreciation.

Fund Specific Overview: For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 42.88% for Class A shares compared to 26.46% for the S&P 500 Index.

The main alpha factors driving the performance of the Fund, share buyback yield, dividend yield and debt buyback yield, interacted positively to generate significant outperformance over the benchmark for the year. As the credit market crisis unfolded and the stock market crashed, many stocks in the Fund became extremely inexpensive on a number of valuation metrics. As the market rebounded from the March lows, the Fund significantly outperformed its benchmark.

Attribution analysis indicates that for the year both sector allocation and stock selection positively contributed to performance. Top contributors, with positive contribution, were stocks in the consumer discretionary, healthcare, consumer staples, telecommunication and utilities sectors. Bottom contributors, with negative contribution were stocks in the financials, technology, energy, materials and industrials sectors.

As of year end, the Fund was significantly overweighted in financial, discretionary, industrials and staples, and underweighted in healthcare, utilities, telecommunication and energy.   30% of the stocks had an S&P Quality Rank of at least A- and 70% of at least B+.

JNL/S&P Competitive Advantage Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	44.22%
Since Inception	0.51%
(Inception date December 3, 2007)

Average Annual Total Returns for Class B Shares
1 year	44.70%
Since Inception	0.58%
(Inception date December 3, 2007)

JNL/S&P Dividend Income & Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	23.47%
Since Inception	-5.25%
(Inception date December 3, 2007)

Average Annual Total Returns for Class B Shares
1 year	23.79%
Since Inception	-5.06%
(Inception date December 3, 2007)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/S&P Funds

Standard & Poor’s Investment Advisory Services LLC

Massimo Santicchia

JNL/S&P Intrinsic Value Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	57.04%
Since Inception	-0.03%
(Inception date December 3, 2007)

Average Annual Total Returns for Class B Shares
1 year	57.84%
Since Inception	0.34%
(Inception date December 3, 2007)

JNL/S&P Total Yield Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	42.88%
Since Inception	-3.63%
(Inception date December 3, 2007)

Average Annual Total Returns for Class B Shares
1 year	43.04%
Since Inception	-3.49%
(Inception date December 3, 2007)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Select Balanced Fund

Wellington Management Company, LLP

Edward P. Bousa, Christopher L. Gootkind, & John C. Keogh

Objective:

The investment objective of the JNL/Select Balanced Fund is reasonable income and long-term capital growth.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed one of its benchmarks by posting a return of 19.78% for Class A shares compared to 5.93% for the Barclays Capital U.S. Aggregate Bond Index. The Fund underperformed its other benchmark, the S&P 500 Index which returned 26.46%.

Even though the Fund underperformed the S&P 500 Index, the equity portion of the Fund slightly outperformed this benchmark.  Positive stock selection within six out of the ten sectors boosted relative performance.  Sector allocation decisions detracted from returns.

The fixed income portion also outperformed the Barclays Capital U.S. Aggregate Bond Index.  Sector allocation was the primary driver of outperformance.  The fixed income portfolio’s overweight to credit contributed to positive relative returns.

Throughout the year, extraordinary government measures helped to stabilize global economies and markets.  As the year progressed, low interest rates, better than expected corporate earnings

and improving economic data provided a favorable backdrop for equities.  Aided by the ongoing economic recovery and improved sentiment, non-Treasury fixed income sectors set the pace.  Global government rates moved meaningfully higher, while credit spreads continued to narrow.  Many sectors finished the year at or within basis points of the tightest levels of the year.

Within the equity portion of the Fund, security selection was particularly strong in healthcare, materials and consumer staples.  Sector selection in technology, telecommunications and utilities detracted.  A sizeable underweight to strong performing technology hurt relative returns.

The fixed income portfolio’s security selection within corporate bonds specifically the financials sector, including insurance, REITS, and large banks contributed to returns.  Commercial mortgage-backed securities were a modest detractor.

The top three contributors to performance of the equity portfolio, on a relative basis, during the year were Schering-Plough Corp., International Paper Co. and Exxon Mobil Corp.  Apple Inc., Google Inc. and Eli Lilly & Co. were the largest detractors.

The largest purchases during the year were in healthcare and financials.  In healthcare, the Fund initiated positions in Pfizer Inc. and Johnson & Johnson as we looked to build positions at historically low valuations.   In financials, the Fund added to Wells Fargo & Co. and initiated a position in Chubb Corp., where we continue to close our underweight position as the industry stabilizes and consolidates amid overly bearish sentiment.  The largest sells were in healthcare and energy.  In healthcare, the Fund eliminated Wyeth and Abbott Laboratories, as we sought to lock in gains for many strong performers.  In energy, the Fund trimmed XTO Energy Inc. and eliminated Schlumberger Ltd., where we took profit and looked to upgrade the Fund.

The equity portion of the Fund remains focused on investing in areas of strong demand and avoiding areas of oversupply.  Materials, especially metals, are starting to get speculative.  We believe that government reform of healthcare appears to be less severe than feared.  Valuations are low and remain positive.  Quality stocks recovered somewhat in the quarter, but remain attractive.

We believe the U.S. economy is recovering and that government intervention has reduced systemic risk.  We think that the recovery will be stronger than markets anticipate and sluggish housing and commercial real estate markets will remain headwinds.

JNL/Select Balanced Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	19.78%
5 year	4.07%
10 year	6.80%

Average Annual Total Returns for Class B Shares
1 year	20.08%
5 year	4.30%
Since Inception	4.81%
(Inception date March 5, 2004)

Wellington Management Company, LLP assumed portfolio management responsibility on October 4, 2004.

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/Select Value Fund

Wellington Management Company, LLP

Karen H. Grimes, Ian R. Link, & W. Michael Reckmeyer III

Objective:

The investment objective of the JNL/Select Value Fund is long-term growth of capital.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 23.98% for Class A shares compared to 19.69% for the Russell 1000 Value Index.  Relative outperformance was driven by a combination of stock selection and sector allocation, a residual of the Fund’s bottom-up process.

After a tumultuous start, U.S. equities finished 2009 near their highs for the year and recorded a third consecutive quarter of gains.  Throughout the year, extraordinary government measures helped to stabilize global economies and markets, and as the year progressed, low interest rates, better than expected corporate earnings and improving economic data provided a favorable backdrop for equities.  Growth stocks outpaced value for the year, while small cap stocks lagged their larger peers.  Sector performance was almost universally positive. Materials, information technology and consumer discretionary stocks led the market higher, while telecommunications, energy and utilities lagged the broader market returns during the year.

Favorable security selection in industrials, energy and consumer staples aided returns.  Less favorable results from information technology, consumer discretionary and utilities hurt performance relative to the benchmark.  Our overweight to strong performing information technology and underweight to the weaker performing utilities and financials sectors also helped performance.

Citigroup, which was eliminated in January, and our positions in Goldman Sachs Group Inc. and Cliffs Natural Resources Inc., contributed to relative performance.  ACE Ltd., International Paper Co. and Kroger Co. were the largest detractors from relative returns during the year.  The largest purchases during the year were in financials, we added to positions in Bank of America Corp. and Wells Fargo & Co., as we continue to believe that many financial companies are discounting worst case scenarios despite positive inflection points, and as we believe the market leaders will enjoy the benefit of both synergies and less competition as the industry consolidates.  The Fund continues to be constructive on energy, in general, and there was a fair amount of activity in the sector in terms of both purchases and sales as we sought to slightly increase beta, the Fund sold Total SA and added Baker Hughes Inc., and trimmed names that had performed well, such as, Newfield Exploration Co.  The Fund sold some healthcare positions as a number of companies rebounded from excessively low valuations driven by healthcare reform uncertainty, while others benefitted from increased merger activity as companies sought to avoid patent cliffs and rebuild pipelines at low valuations.  Among the healthcare names sold were Bristol-Myers Squibb Co., Wyeth, and Schering-Plough Corp.

The Fund is constructed on a stock by stock basis.  Sector weights are a fall out of stock selection.  Healthcare moved from an underweight to an overweight relative to the benchmark.  The underweight to the utilities sector increased, largely due to market movement. The Fund’s overweights to information technology and consumer staples were reduced during the year.

At the end of the year, the Fund’s largest overweights relative to its benchmark were in information technology, healthcare and consumer staples.  Utilities, financials and telecommunication services were the largest underweights.

JNL/Select Value Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	23.98%
5 year	3.11%
Since Inception	9.86%
(Inception date September 30, 2002)

Average Annual Total Returns for Class B Shares
1 year	24.18%
5 year	3.32%
Since Inception	4.41%
(Inception date March 5, 2004))

Wellington Management Company, LLP assumed portfolio management responsibility on October 4, 2004.

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/T. Rowe Price Established Growth Fund

T. Rowe Price Associates, Inc.

P. Robert Bartolo

Objective:

The investment objective of the JNL/T. Rowe Price Established Growth Fund is long-term growth of capital and increasing dividend income.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmarks by posting a return of 43.49% for Class A shares compared to 26.46% for the S&P 500 Index and 37.21% for the Russell 1000 Growth Index.  The portfolio very significantly outperformed the S&P 500 Index as exceptionally strong stock selection and sector weighting contributed positively to relative results.

U.S. stocks were strong in 2009, with all sectors of the large cap market posting positive returns.  In the first quarter, major indexes extended last year’s decline and plunged to 12 year lows as the economy contracted, unemployment surged, and the federal government intervened aggressively to provide liquidity to the credit markets, stabilize the banking sector, and stimulate the economy.  From the low in early March, share prices then soared, as credit conditions improved, corporate earnings were generally better than expected, and the economy showed signs that it was emerging from recession.

Shares of information technology companies produced superior returns, thanks to attractive valuations, aggressive cost cutting, cash rich balance sheets and revenues that were not as bad as feared.  Materials stocks soared with commodity prices, while consumer discretionary shares climbed as investors anticipated that the sector would benefit substantially from an economic recovery and increased consumer spending.  Utilities and telecommunication services, two sectors often perceived as relatively safe havens in an economic downturn, trailed with modest gains.  Energy stocks also lagged, even though oil prices rebounded sharply from the lows reached early in the year.

Relative to the S&P 500 Index benchmark, the information technology sector was the top contributor to relative gain.  A sector overweight to this top performing group and favorable stock selection drove relative outperformance in the sector.  Stock selection in healthcare contributed positively to relative performance, notably in the pharmaceuticals and healthcare providers and services industries.  Stock selection also added value in the energy and telecommunication services sectors.  The only sector to detract from relative performance during the period was materials, where stock selection in the chemicals industry was the primary reason for the performance shortfall.

Relative to the S&P 500 Index benchmark, the Fund’s largest sector changes included significantly reducing our underweight to financials, which are in much stronger shape after the government’s efforts to steady the U.S. financial system and bringing our healthcare overweight exposure down to more of a market weight given the uncertainty of the current regulatory overhaul.  In addition, we added to our overweight position in information technology since we believe secular trends such as the rising availability of wireless Internet and growing popularity of smartphones and other devices will make mobile computing increasingly widespread and drive strong growth in the sector.  Although we expect a modest improvement in consumer spending and high unemployment will keep a lid on credit dependent purchases, we moderately increased our sector overweight in consumer discretionary names by selectively investing in companies that we believe will lead the recovery.

We are generally optimistic that the worst of the global economic and market downturn is behind us, but believe the strength of the economic recovery is still uncertain.  Numerous risks continue to weigh on the likelihood of a strong, sustainable recovery.  New home construction is recovering, but a large supply of existing homes combined with tight financing conditions will temper the recovery.  We believe non financial companies will focus more on paring debt rather than hiring new workers, which would impede a recovery in the jobs market.  Finally, with unemployment likely to remain high into 2010, we expect households will continue to restrain their spending, which will keep personal savings rates high and further undercut worker demand.  As we have stated in the past, we believe the U.S. economy is improving, but the transition from recession to recovery will be gradual as the drags on economic growth fade.

Our investment approach remains unchanged.  We still seek to invest in high quality companies with strengthening balance sheets, seasoned management teams and superior growth prospects that we believe will successfully weather the sluggish recovery.  Our mission is to select companies with potential for generating above average earnings and free cash flow, while maintaining an awareness of stock price valuations.  We will continue to rely on the strength of our independent research and concentrate on the underlying fundamentals of our holdings, rather than on macroeconomic concerns or short-term market sentiment.  We are confident that our philosophy can lead to consistent outperformance for our clients over the long term.

JNL/T. Rowe Price Established Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	43.49%
5 year	1.73%
10 year	0.70%

Average Annual Total Returns for Class B Shares
1 year	43.79%
5 year	1.92%
Since Inception	2.64%
(Inception date March 5, 2004)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/T. Rowe Price Mid-Cap Growth Fund

T. Rowe Price Associates, Inc.

Brian W.H. Berghuis

Objective:

The investment objective of the JNL/T. Rowe Price Mid-Cap Growth Fund is long-term growth of capital.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmarks by posting a return of 46.93% for Class A shares compared to 37.38% for the S&P MidCap 400 Index and 46.29% for the Russell MidCap Growth Index.  The Fund modestly outperformed the Russell MidCap Growth Index for the year, while turning in a robust absolute gain.  Relative stock selection overall was positive, but showed a great amount of dispersion with particularly beneficial outcomes in some sectors while being weighed down by detrimental results in others.  Sector allocations proved beneficial to relative results.

After a dismal start, U.S. stocks produced strong gains in 2009.  While it was the best year for U.S. equities since 2003, the last decade was the worst for U.S.  equities since the 1930s.  In the first quarter of 2009, major large cap indexes plunged to 12 year lows as the economy contracted and unemployment surged.  The federal government intervened aggressively to provide liquidity to the credit markets, stabilize the banking sector and stimulate the economy.  From early March through the end of the year, share prices soared as credit market conditions improved, corporate earnings were generally better than expected, and the economy showed signs that it was emerging from the longest and deepest recession since the Great Depression.

As measured by Russell benchmarks, within the mid-cap space, growth stocks have outperformed value stocks for the year, though there was much volatility along the way with dominance by a particular style for short periods.  Mid cap stocks outperformed both large caps and small caps during year, and have been especially strong recently.  Sector results varied greatly during the year, though all sectors turned in significantly positive gains.  The strongest performances in the benchmark were in the energy, information technology and materials sectors.  The utilities sector was the weakest sector on an absolute basis.  The telecommunication services, industrials and business services and consumer staples sectors posted relatively weak results as well, though all were up nearly 30%.

The largest detraction to relative returns for the year was within the information technology sector.  Stock selection was accountable for the lackluster results.  Holdings in the information technlogy services industry in particular negatively impacted relative results.  Stock selection and an underweight position in the materials sector also weighed on relative performance.  The energy sector was the top performer in the benchmark, and Fund holdings could not keep pace these returns.  Stock selection in the sector detracted from relative results.

Stock selection in the consumer discretionary sector was the largest contributor to relative performance.  An overweight in the internet catalog and retail industry also helped.  Stock selection in the consumer staples sector further contributed to relative performance.  Also, the consumer staples sector was one of the worst performing sectors within the Russell MidCap Growth Index, so a significant underweight to the sector was beneficial.

All sectors except for utilities positively impacted the Fund’s absolute performance during the year.  The Fund’s consumer staples holdings posted the strongest absolute gain, followed by consumer discretionary and energy positions.

The Fund’s long term focus on areas of growth has not changed dramatically over the past year.  The largest weighting increase in the Fund was in financials, though its remains underweight relative to the Russell MidCap Growth Index.  The Fund’s increase primarily reflects an emphasis on commercial banks.  We believe that banks are getting back in to the real business of banking, borrowing cheaply from depositors and lending at higher rates to borrowers.  Now that many companies and individuals must turn again to banks for loans, we expect that banks will enjoy higher margins on their lending.  Still, we should note that the future shape of the banking system is highly uncertain, and the Fund has made only small investments to date, using a basket approach to diversify our risk.

Another increase was in the consumer discretionary sector.  While we have been somewhat cautious on the sector due to the constraints of housing weakness and high personal debt levels, it remains an important area of investment for the Fund, though the Fund is underweight against the Russell MidCap Growth Index.  Our current strategy is to focus on firms that dominate their markets.  The Fund has significant exposure to the hotels, restaurants and leisure group, and holds key names in the specialty retail internet and catalog retail and media industries.

The largest decrease in weighting was in the information technology sector, though it remains the largest overweight relative to the Russell MidCap Growth Index.  We believe many companies in the sector possess excellent prospects, solid balance sheets and shareholder oriented management teams.  We find that technology stocks are trading at reasonable valuations and remain confident in a number of catalysts to drive the sector higher.  Following closely was a decrease in the industrials and business services sector, which mostly reflects a dampened view on defense spending.

We remain focused on the long term changes wrought by the 2008-2009 financial crisis, primarily the trend toward deleveraging, the drive by consumers and businesses to increase savings and pay down debt.  Inflation and the potential devaluation of the dollar remain challenges for the economy, although probably not over the short term.  That noted, we have positioned the Fund to benefit from a cyclical turn in the economy, which appears to be taking place.  This stance has helped the Fund keep pace with the very strong gains in its benchmarks.  Typically, we would not be surprised to lag somewhat during strong rallies given our focus on higher quality stocks, which are less likely to come roaring back after having suffered steep declines.

JNL/T. Rowe Price Mid-Cap Growth Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	46.93%
5 year	4.48%
10 year	5.31%

Average Annual Total Returns for Class B Shares
1 year	47.22%
5 year	4.69%
Since Inception	6.10%
(Inception date March 5, 2004)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/T. Rowe Price Short-Term Bond Fund (formerly, JNL/Goldman Sachs Short Duration Bond Fund)

T. Rowe Price Associates, Inc.

Edward A. Wiese

Objective:

The investment objective of the JNL/T. Rowe Price Short-Term Bond Fund is a high level of income consistent with minimal fluctuation in principal value and liquidity.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmarks by posting a return of 7.64% for Class A shares compared to 0.78% for the Merrill Lynch 1-3 Year Treasury Index and 1.41% for the Barclays Capital 1-3 Year Government/Credit Index.

For the period January 1, 2009 through September 28, 2009, the Fund was sub-advised by Goldman Sachs Asset Management, L.P.  During that time, the Fund outperformed its benchmark by posting a return of 6.94% for Class A shares compared to 0.66% for the Merrill Lynch 1-3 year Treasury Index.

T. Rowe Price Associates, Inc. replaced Goldman Sachs Asset Management, L.P. as the Fund’s sub-adviser on September 28, 2009.  Since T. Rowe Price Associates, Inc. took over investment decision through the end of 2009, the Fund outperformed its benchmarks by posting a return of 0.65% for Class A shares compared to 0.08% the Merrill Lynch 1-3 year Treasury Index and 0.42% for the Barclay’s Capital 1-3 Year Government/Credit Index.

For period January 1, 2009 through September 28, 2009, the primary factors that influenced the Fund’s performance relative to its benchmark were an allocation to riskier assets, such as credit sensitive mortgages and corporate bonds.

Tactical management of the Fund’s duration and term structure contributed to returns during the earlier part of 2009.  Specifically, the Fund held a short 20-year position that contributed to performance as investors became slightly more risk tolerant and yields rose from their December lows.  Cross sector positioning relative to the benchmark was a significant contributor to returns

during the period ended September 25, 2009.  The Fund’s overweight exposure to the corporate sector meaningfully contributed to returns, specifically during the second and third quarters, as liquidity returned to the credit markets.  In April, corporates set a record for the best monthly performance on record.  While the rally in corporates continued into the third quarter, though at a slower pace, the Barclays Capital Corporate Credit Index still managed to outperform duration matched Treasuries by 556 basis points (“bps”) during the quarter.  The non-agency mortgage-backed securities (“MBS”) sector was a significant source of positive return, primarily in April.  The sector carried its strong performance from the latter half of March into April, with prices rising generally 15-30% from the lows witnessed in February.  Security selection of Prime and Alt-A super senior, credit enhanced, non-agency-backed adjustable rate mortgages was also a large contributor to returns.  The non-agency MBS sector continued to perform well during the latter part of the period, in part due to anticipation of the Public Private Investment Program (“PPIP”) coming on line, as well as a variety of housing market indicators suggesting overall activity seems to be stabilizing.  The Fund also benefitted from having exposure to various spread sectors.  Specifically, during the third quarter, spreads across risk sectors continued to contract as excess liquidity from government policy and programs made itself present to the market.

For the period September 28, 2009 to December 31, 2009, the primary factors that influenced the Fund’s performance relative to the Barclays Capital 1-3 Year Government/Credit Index were the following: Sector allocations within the portfolio drove relative outperformance versus the benchmark.  An out of benchmark allocation to MBS was the largest contributor to relative returns.  An overweight to corporate bonds and an underweight to U.S. Treasuries aided performance as well.  Security selection within the portfolio also aided relative results.

For the period September 28, 2009 to December 31, 2009, the greatest contributor to relative performance was the Fund’s nonbenchmark exposure to securitized sectors, particularly MBS.  MBS rose steadily through the first two months, fueled by the U.S. Federal Reserve’s continued MBS purchase program, which supported favorable mortgage rates.

An overweight to investment grade corporate bonds also boosted relative returns, as all corporate sectors (industrials, financials and utilities) posted solid returns.  An overweight to BBB rated bonds was the greatest factor in relative performance within the sector, and lower rated bonds also performed well.  Security selection did offset some relative gain in the sector, as the Fund is more conservative than the benchmark.

Underweighting Treasuries also proved successful for the Fund.  Investors began to pull out of Treasuries as economic data improved, and supply was pressured by news of heavy issuance to come.  The Fund’s strategy favors an underweight to Treasuries in favor of higher yield prospects, such as investment grade corporate bonds and securitized sectors.

Due to the size of the Fund and the liquidity challenges in some of the relevant sectors, most Fund purchases occurred in the new issue market during the quarter.  The Fund accumulated industrials during the quarter to meet its strategy’s overweight to that sector.  In addition, the Fund opportunistically added financials in the new issue market because we believe financial spreads should eventually regain their spread relationship to industrials.  Currently, financials trade with larger spreads than industrials due to the effects of the recent financial crisis.

Against the Barclays Capital 1-3 Year Government/Credit Index, the short-term bond strategy typically maintains a strategic overweight to corporate credit at the expense of low risk government related and Treasury sectors.  The strategy also has an nonbenchmark allocation to securitized sectors, which is largely concentrated in agency MBS.  We also have a smaller out of benchmark allocation to asset-backed securities (“ABS”) and AAA rated commercial mortgage-backed securities (“CMBS”).

This year, the strategy moved to a larger corporate overweight and took opportunistic securitized positions in reaction to large risk premium available at times in the sector.  Our largest overweight within corporate bonds is to industrials, specifically, through telecommunications and noncyclical names.  We also have increased our overweight to financials during the year, with the largest concentration in high quality banking names.

At the end of the year, the Fund’s weightings in comparison to the Barclays Capital 1-3 Year Government/Credit Index was overweight corporate bonds (19.3%), MBS (22.5%), ABS (3.7%) CMBS (.7%), international securities (.5%) and cash (5.4%); and underweight Treasuries (-45.4%) and Government securities (-7.0%).

JNL/T. Rowe Price Short-Term Bond Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	7.64%
Since Inception	2.47%
(Inception date May 1, 2006)

Average Annual Total Returns for Class B Shares
1 year	7.74%
Since Inception	2.68%
(Inception date May 1, 2006)

T. Rowe Price Associates, Inc. assumed portfolio management responsibility on September 28, 2009.

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL/T. Rowe Price Value Fund

T. Rowe Price Associates, Inc.

John Linehan, through December 31, 2009; Mark S. Finn effective December 31, 2009

Objective:

The investment objective of the JNL/T. Rowe Price Value Fund is to provide long-term capital appreciation by investing in common stocks believed to be undervalued.  Income is a secondary objective.

Portfolio Manager Commentary:

For the year ended December 31, 2009, the Fund outperformed its benchmark by posting a return of 37.09% for Class A shares compared to 19.69% for the Russell 1000 Value Index.

After a dismal start, U.S. stocks produced strong gains in 2009.  While it was the best year for U.S. equities since 2003, the last decade was the worst for U.S. equities since the 1930s.  In the first quarter of 2009, major large cap indexes plunged to 12 year lows as the economy contracted and unemployment surged.  The federal government intervened aggressively to provide liquidity to the credit markets, stabilize the banking sector and stimulate the economy.  From early March through the end of the year, share prices soared as credit market conditions improved, corporate earnings were generally better than expected and the economy showed signs that it was emerging from the longest and deepest recession since the Great Depression.

As measured by various Russell indexes, growth stocks outperformed value stocks across all market capitalizations.  All sectors in the large cap value universe, as measured by the Russell 1000 Value Index, produced positive returns in 2009.  Materials was the strongest sector for the year as a result of higher commodity prices, which were driven up by the weak U.S. dollar.  Shares of information technology companies produced powerful returns, thanks to attractive valuations, aggressive cost cutting, cash rich balance sheets, and better than expected revenues.  Energy and telecommunication services were the weakest performing sectors in the Fund’s benchmark.

The consumer discretionary sector was the largest contributor to relative performance driven by an overweight position.  Another contributor to relative performance was the energy sector due primarily to stock selection.  The financials sector also supported relative outperformance driven by stock selection.  The Fund’s overweight position to information technology, one of the best performing sectors in the Fund’s benchmark, also aided relative results.  The largest negative influence on relative performance was stock selection in information technology, but this was more than offset by our overweight position.  Group weighting in industrials and business services also had a slight negative impact that was outweighed by positive stock selection in the sector.

Companies that contributed to Fund performance were American Express Co., Microsoft Corp., Discovery Communications Inc. (“Discovery Communications”), MeadWestvaco Corp. and International Paper Co.  Companies that detracted from Fund performance were Sunoco Inc., Citigroup Inc., Liberty Media Corp., Exxon Mobil Corp. and Omnicom Group Inc.

Significant purchases during the year included Aon Corp., which was a new purchase for the Fund, Weyerhaeuser Co. (“Weyerhaeuser”), AT&T Corp., Spectra Energy Corp. and Keycorp.  Significant sales during the year included Wyeth, Dish Network Corp., Liberty Media Corp., Discovery Communications and Coca-Cola Enterprises Inc.

During the year, the largest weighting increase in the Fund was in financials.  The Fund was a net purchaser adding to commercial banks and diversified financial services names with strong balance sheets that were more likely to benefit as the economy recovered.

Materials was the best performing sector for the year, but the Fund was also a net purchaser adding mostly to paper and forest products name, Weyerhaeuser, primarily early in the year given its attractive valuation and the fact that its timberland ownership provided some downside protection.

The largest decrease in weighting was in the consumer discretionary sector where the Fund was a net seller as valuations became less compelling.

The weight in healthcare decreased slightly during the year.  The Fund was a net buyer of healthcare stocks mostly within the healthcare equipment and supplies and healthcare providers and services industries as uncertainty around industry reform pushed the stocks of some companies to attractive valuations.

We believe that there are very good opportunities to invest in high quality companies at attractive prices in a variety of market environments.  In the current rally where investors seem to be favoring risk, the market has left many high quality, traditionally defensive companies behind.  As a result, we find ourselves selling the more uncertain names whose risk reward profiles have diminished, in favor of the more stable names with attractive valuations.  Additionally, at current levels, valuations favor larger cap stocks over their smaller cap counterparts.  While no one knows what the future holds, we believe that this environment should be positive for the Fund’s performance given T. Rowe Price’s organizational focus on in house proprietary research and our bottom-up style of investing.  Our focus will continue to be selecting stocks with valuation appeal, sound fundamentals and reasonable balance sheet integrity.

JNL/T. Rowe Price Value Fund (Class A)

Average Annual Total Returns for Class A Shares
1 year	37.09%
5 year	0.95%
Since Inception	4.14%
(Inception date May 1, 2000)

Average Annual Total Returns for Class B Shares
1 year	37.46%
5 year	1.17%
Since Inception	2.65%
(Inception date March 5, 2004)

Past performance is not predictive of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance numbers are net of all Fund operating expenses, but do not reflect the deduction of insurance charges.

JNL Series Trust

Schedules of Investments (in thousands)

December 31, 2009

				Shares / Par (q)		Value
JNL Institutional Alt 20 Fund (b)
INVESTMENT FUNDS - 100.0%
	JNL/AIM Global Real Estate Fund (1.8%) (a)			826	$	6,218
	JNL/Credit Suisse Commodity Securities Fund (1.3%) (a)			885		8,332
	JNL/Goldman Sachs Emerging Markets
	Debt Fund (2.0%) (a)			326		3,874
	JNL/Lazard Emerging Markets Fund (0.6%) (a)			421		4,195
	JNL/Mellon Capital Management Bond
	Index Fund (7.6%) (a)			5,317		60,556
	JNL/Mellon Capital Management Global Alpha
	Fund (6.2%) (a)			391		3,862
	JNL/Mellon Capital Management International
	Index Fund (3.3%) (a)			2,029		24,150
	JNL/Mellon Capital Management Nasdaq®
	25 Fund (7.0%) (a)			840		8,261
	JNL/Mellon Capital Management S&P 24 Fund (17.8%) (a)			2,827		24,677
	JNL/Mellon Capital Management S&P SMid
	60 Fund (7.6%) (a)			1,588		14,915
	JNL/Mellon Capital Management Select Small-Cap
	Fund (2.4%) (a)			842		8,144
	JNL/Mellon Capital Management Value Line
	30 Fund (2.9%) (a)			1,698		18,321
	JNL/PIMCO Real Return Fund (0.3%) (a)			336		3,889
	JNL/PPM America High Yield Bond Fund (0.7%) (a)			666		4,099
	JNL/Red Rocks Listed Private Equity Fund (2.7%) (a)			754		6,055
	Total Investment Funds (cost $190,551)					199,548
Total Investments - 100.0% (cost $190,551)						199,548
Other Assets and Liabilities, Net - 0.0%						(32)
Total Net Assets - 100%					$	199,516
JNL Institutional Alt 35 Fund (b)
INVESTMENT FUNDS - 100.0%
	JNL/AIM Global Real Estate Fund (4.7%) (a)			2,120	$	15,967
	JNL/Credit Suisse Commodity Securities Fund (4.0%) (a)			2,729		25,683
	JNL/Goldman Sachs Emerging Markets
	Debt Fund (4.6%) (a)			748		8,899
	JNL/Ivy Asset Strategy Fund (3.2%) (a)			592		6,160
	JNL/Lazard Emerging Markets Fund (1.3%) (a)			976		9,720
	JNL/Mellon Capital Management Bond
	Index Fund (8.4%) (a)			5,835		66,461
	JNL/Mellon Capital Management Global
	Alpha Fund (14.3%) (a)			901		8,898
	JNL/Mellon Capital Management International
	Index Fund (4.7%) (a)			2,868		34,126
	JNL/Mellon Capital Management Nasdaq
	25 Fund (8.0%) (a)			966		9,495
	JNL/Mellon Capital Management S&P 24 Fund (25.0%) (a)			3,967		34,631
	JNL/Mellon Capital Management S&P SMid
	60 Fund (10.1%) (a)			2,105		19,762
	JNL/Mellon Capital Management Select
	Small-Cap Fund (2.8%) (a)			965		9,334
	JNL/Mellon Capital Management Value Line
	30 Fund (4.0%) (a)			2,311		24,931
	JNL/PPM America High Yield Bond Fund (2.2%) (a)			2,051		12,612
	JNL/Red Rocks Listed Private Equity Fund (9.8%) (a)			2,726		21,887
	Total Investment Funds (cost $291,050)					308,566
Total Investments - 100.0% (cost $291,050)						308,566
Other Assets and Liabilities, Net - 0.0%						(50)
Total Net Assets - 100%					$	308,516
JNL Institutional Alt 50 Fund (b)
INVESTMENT FUNDS - 100.0%
	JNL/AIM Global Real Estate Fund (9.8%) (a)			4,454	$	33,540
	JNL/Credit Suisse Commodity Securities Fund (4.1%) (a)			2,789		26,245
	JNL/Goldman Sachs Emerging Markets
	Debt Fund (7.2%) (a)			1,170		13,912
	JNL/Ivy Asset Strategy Fund (7.4%) (a)			1,383		14,401
	JNL/Lazard Emerging Markets Fund (2.1%) (a)			1,515		15,089
	JNL/Mellon Capital Management Bond
	Index Fund (7.7%) (a)			5,372		61,192
	JNL/Mellon Capital Management Global
	Alpha Fund (33.6%) (a)			2,110		20,842
	JNL/Mellon Capital Management International
	Index Fund (4.5%) (a)			2,739		32,596
	JNL/Mellon Capital Management Nasdaq
	25 Fund (6.3%) (a)			754		7,417
	JNL/Mellon Capital Management S&P 24 Fund (21.3%) (a)			3,383		29,531
	JNL/Mellon Capital Management S&P SMid
	60 Fund (9.8%) (a)			2,042		19,172
	JNL/Mellon Capital Management Select
	Small-Cap Fund (2.2%) (a)			755		7,304
	JNL/Mellon Capital Management Value Line
	30 Fund (3.5%) (a)			2,033		21,932
	JNL/PPM America High Yield Bond Fund (2.6%) (a)			2,399		14,755
	JNL/Red Rocks Listed Private Equity Fund (19.5%) (a)			5,435		43,646
	Total Investment Funds (cost $343,652)					361,574
Total Investments - 100.0% (cost $343,652)						361,574
Other Assets and Liabilities, Net - 0.0%						(58)
Total Net Assets - 100%					$	361,516
JNL Institutional Alt 65 Fund (b)
INVESTMENT FUNDS - 100.0%
	JNL/AIM Global Real Estate Fund (7.6%) (a)			3,437	$	25,882
	JNL/Credit Suisse Commodity Securities Fund (3.0%) (a)			2,017		18,976
	JNL/Goldman Sachs Emerging Markets
	Debt Fund (5.7%) (a)			930		11,057
	JNL/Ivy Asset Strategy Fund (7.0%) (a)			1,316		13,700
	JNL/Lazard Emerging Markets Fund (1.6%) (a)			1,198		11,929
	JNL/Mellon Capital Management Bond
	Index Fund (2.5%) (a)			1,710		19,472
	JNL/Mellon Capital Management Global
	Alpha Fund (35.5%) (a)			2,229		22,022
	JNL/Mellon Capital Management International
	Index Fund (2.2%) (a)			1,348		16,037
	JNL/Mellon Capital Management Nasdaq
	25 Fund (4.0%) (a)			478		4,703
	JNL/Mellon Capital Management S&P 24 Fund (11.9%) (a)			1,881		16,418
	JNL/Mellon Capital Management S&P SMid
	60 Fund (5.0%) (a)			1,030		9,674
	JNL/Mellon Capital Management Select
	Small-Cap Fund (1.4%) (a)			480		4,643
	JNL/Mellon Capital Management Value Line
	30 Fund (1.5%) (a)			860		9,283
	JNL/PPM America High Yield Bond Fund (1.2%) (a)			1,141		7,016
	JNL/Red Rocks Listed Private Equity Fund (17.5%) (a)			4,862		39,038
	Total Investment Funds (cost $219,509)					229,850
Total Investments - 100.0% (cost $219,509)						229,850
Other Assets and Liabilities, Net - 0.0%						(37)
Total Net Assets - 100%					$	229,813
JNL/AIM International Growth Fund
COMMON STOCKS - 91.0%
CONSUMER DISCRETIONARY - 10.7%
	Adidas AG			69	$	3,763
	Compass Group Plc			881		6,332
	Denso Corp.			95		2,875
	Esprit Holdings Ltd.			415		2,750
	Grupo Televisa SA - ADR			224		4,642
	Hyundai Mobis			26		3,773
	Informa Plc			680		3,513
	Li & Fung Ltd.			574		2,373
	Puma AG Rudolf Dassler Sport			17		5,682
	Reed Elsevier Plc			478		3,952
	Toyota Motor Corp.			74		3,117
	WPP Plc			374		3,685
						46,457
CONSUMER STAPLES - 14.4%
	Anheuser-Busch InBev NV			162		8,454
	British American Tobacco Plc			140		4,546
	Danone SA			46		2,827
	Imperial Tobacco Group Plc			318		10,075
	Koninklijke Ahold NV			369		4,900
	Nestle SA			201		9,775
	Reckitt Benckiser Group Plc			184		9,970
	Tesco Plc			1,003		6,934
	Unilever NV (e)			63		2,073
	Woolworths Ltd.			98		2,462
						62,016
ENERGY - 9.0%
	BG Group Plc			273		4,955
	Canadian Natural Resources Ltd.			52		3,775
	Cenovus Energy Inc.			48		1,209
	EnCana Corp.			48		1,556
	ENI SpA			232		5,919
	Petroleo Brasileiro SA - ADR			94		3,965
	Petroleum Geo-Services ASA (c)			197		2,272
	Suncor Energy Inc.			121		4,312
	Talisman Energy Inc.			230		4,314
	Total SA			104		6,742
						39,019
FINANCIALS - 6.5%
	Akbank T.A.S.			472		2,988
	AXA SA			157		3,717
	BNP Paribas			76		6,126
	Deutsche Boerse AG			21		1,751
	Fairfax Financial Holdings Ltd.			5		1,835
	QBE Insurance Group Ltd.			202		4,616
	United Overseas Bank Ltd.			496		6,909
						27,942
HEALTH CARE - 17.8%
	Bayer AG			115		9,251
	Cochlear Ltd.			91		5,599
	CSL Ltd.			133		3,868
	Fresenius Medical Care AG & Co. KGaA (e)			54		2,881
	Merck KGaA (e)			47		4,354
	Novartis AG			40		2,162
	Novo-Nordisk A/S - Class B			105		6,700
	Roche Holding AG			69		11,654
	Shire Plc			466		9,102
	Smith & Nephew Plc			205		2,116
	Sonova Holding AG			57		6,948
	Teva Pharmaceutical Industries Ltd. - ADR			215		12,056
						76,691
INDUSTRIALS - 11.7%
	BAE Systems Plc			603		3,501
	Bharat Heavy Electricals Ltd.			53		2,719
	Bombardier Inc. - Class B			684		3,134
	Canadian National Railway Co.			59		3,244
	Capita Group Plc			253		3,073
	Fanuc Ltd.			41		3,860
	Finmeccanica SpA			396		6,358
	Hutchison Whampoa Ltd.			765		5,234
	Keppel Corp. Ltd.			938		5,467
	Komatsu Ltd.			107		2,241
	Singapore Technologies Engineering Ltd. (e)			1,648		3,795
	TNT NV			178		5,505
	Vestas Wind Systems A/S (c)			36		2,216
						50,347
INFORMATION TECHNOLOGY - 8.1%
	Hoya Corp.			163		4,343
	Infosys Technologies Ltd. - ADR (e)			147		8,113
	Keyence Corp.			18		3,650
	MediaTek Inc.			192		3,336
	Nidec Corp.			69		6,389
	Nokia Oyj (e)			133		1,708
	SAP AG			39		1,846
	Taiwan Semiconductor Manufacturing Co. Ltd.			2,848		5,741
						35,126
MATERIALS - 4.1%
	BHP Billiton Ltd.			214		8,207
	CRH Plc			93		2,527
	Syngenta AG			26		7,176
						17,910
TELECOMMUNICATION SERVICES - 7.3%
	America Movil SAB de CV - ADR (e)			164		7,713
	Koninklijke KPN NV			311		5,291
	Philippine Long Distance Telephone Co.			109		6,173
	Telefonica SA			183		5,135
	Vodafone Group Plc			3,132		7,269
						31,581
UTILITIES - 1.4%
	International Power Plc			1,209		6,035
	Total Common Stocks (cost $379,854)					393,124
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Sigma Finance, Inc. (d) (f) (u)		$	1,173		50
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $1,173)					50
SHORT TERM INVESTMENTS - 12.4%
Mutual Funds - 8.4%
	JNL Money Market Fund, 0.07% (a) (h)			36,147		36,147
Securities Lending Collateral - 4.0%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			4,668		4,668
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			12,768		12,741
						17,409
	Total Short Term Investments (cost $53,583)					53,556
Total Investments - 103.4% (cost $434,610)						446,730
Other Assets and Liabilities, Net -  (3.4%)						(14,749)
Total Net Assets - 100%					$	431,981
JNL/AIM Large Cap Growth Fund
COMMON STOCKS - 97.2%
CONSUMER DISCRETIONARY - 9.5%
	Apollo Group Inc. - Class A (c)			162	$	9,805
	Dollar Tree Inc. (c)			134		6,450
	Gap Inc.			316		6,617
	J.C. Penney Co. Inc.			286		7,622
	Kohl's Corp. (c)			112		6,031
	Limited Brands Inc.			435		8,376
	Ross Stores Inc.			193		8,238
	Target Corp.			124		6,003
						59,142
CONSUMER STAPLES - 1.1%
	Estee Lauder Cos. Inc.			137		6,633
ENERGY - 8.6%
	Diamond Offshore Drilling Inc. (e)			62		6,130
	Ensco International Plc - ADR			152		6,068
	FMC Technologies Inc. (c)			176		10,189
	National Oilwell Varco Inc.			273		12,020
	Occidental Petroleum Corp.			239		19,435
						53,842
FINANCIALS - 4.2%
	BlackRock Inc. (e)			31		7,094
	Goldman Sachs Group Inc.			77		13,037
	TD Ameritrade Holding Corp. (c)			302		5,846
						25,977
HEALTH CARE - 15.5%
	Abbott Laboratories			93		5,032
	AmerisourceBergen Corp.			416		10,851
	Amgen Inc. (c)			308		17,415
	Express Scripts Inc. (c)			91		7,897
	Gilead Sciences Inc. (c)			142		6,153
	Johnson & Johnson			123		7,900
	McKesson Corp.			162		10,116
	Medco Health Solutions Inc. (c)			163		10,422
	Quest Diagnostics Inc.			95		5,708
	UnitedHealth Group Inc.			268		8,156
	WellPoint Inc. (c)			136		7,922
						97,572
INDUSTRIALS - 10.4%
	ABB Ltd.			407		7,860
	Cooper Industries Plc			147		6,289
	Fluor Corp.			211		9,492
	Goodrich Corp.			116		7,436
	Joy Global Inc.			114		5,904
	Norfolk Southern Corp.			122		6,397
	Union Pacific Corp.			107		6,823
	United Technologies Corp.			105		7,270
	URS Corp. (c)			164		7,298
						64,769
INFORMATION TECHNOLOGY - 39.7%
	Accenture Plc			341		14,155
	Apple Inc. (c)			168		35,472
	BMC Software Inc. (c)			251		10,063
	Cisco Systems Inc. (c)			482		11,533
	Cognizant Technology Solutions Corp. (c)			178		8,083
	EMC Corp. (c)			785		13,716
	Flextronics International Ltd. (c)			821		6,004
	Google Inc. - Class A (c)			19		11,748
	Hewlett-Packard Co.			441		22,715
	International Business Machines Corp.			124		16,171
	Marvell Technology Group Ltd. (c)			500		10,368
	MasterCard Inc.			30		7,764
	Microsoft Corp.			580		17,689
	Netease.com - ADR (c) (e)			166		6,241
	Oracle Corp.			650		15,963
	Shanda Interactive Entertainment Ltd. - ADR (c) (e)			152		7,986
	Taiwan Semiconductor Manufacturing Co. Ltd. - ADR			522		5,975
	Texas Instruments Inc.			355		9,245
	Western Digital Corp. (c)			235		10,385
	Xilinx Inc.			283		7,103
						248,379
MATERIALS - 7.3%
	BHP Billiton Ltd. - ADR			351		26,889
	Rio Tinto Plc - ADR			33		7,186
	Syngenta AG			42		11,747
						45,822
TELECOMMUNICATION SERVICES - 0.9%
	America Movil SAB de CV - ADR			115		5,398
	Total Common Stocks (cost $540,006)					607,534
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Sigma Finance, Inc. (d) (f) (u)		$	510		22
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $510)					22
SHORT TERM INVESTMENTS - 5.4%
Mutual Funds - 2.8%
	JNL Money Market Fund, 0.07% (a) (h)			17,262		17,262
Securities Lending Collateral - 2.6%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			11,846		11,846
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			4,543		4,533
						16,379
	Total Short Term Investments (cost $33,651)					33,641
Total Investments - 102.6% (cost $574,167)						641,197
Other Assets and Liabilities, Net -  (2.6%)						(16,454)
Total Net Assets - 100%					$	624,743
JNL/AIM Global Real Estate Fund
COMMON STOCKS - 97.5%
CONSUMER DISCRETIONARY - 0.1%
	Starwood Hotels & Resorts Worldwide Inc.			11	$	388
FINANCIALS - 97.4%
Real Estate Investment Trusts – 66.3%
Diversified – REITS – 23.5%
	Ascendas Real Estate Investment Trust			1,442		2,265
	BGP Holdings Plc (f) (u)			5,552		-
	British Land Co. Plc			550		4,263
	Canadian Real Estate Investment Trust			76		1,974
	CapitaCommercial Trust			2,594		2,149
	Cominar Real Estate Investment Trust			49		908
	Corio NV			30		2,071
	Derwent London Plc			77		1,637
	Dexus Property Group			4,583		3,481
	Digital Realty Trust Inc. (e)			118		5,925
	Eurocommercial Properties NV			56		2,326
	Gecina SA (e)			19		2,092
	Goodman Group			7,487		4,241
	Hammerson Plc			383		2,622
	Kenedix Realty Investment Corp.			-		605
	Klepierre (e)			39		1,575
	Land Securities Group Plc			174		1,924
	Liberty Property Trust			99		3,179
	Morguard Real Estate Investment Trust			93		1,154
	Segro Plc			726		4,038
	Shaftesbury Plc			322		2,047
	Stockland			2,114		7,457
	Suntec Real Estate Investment Trust			1,332		1,276
	Unibail-Rodamco SE			47		10,354
	United Urban Investment Corp.			-		978
	Vornado Realty Trust (e)			101		7,081
	Washington Real Estate Investment Trust (e)			26		713
	Wereldhave NV			26		2,489
						80,824
Industrial – REITS – 2.6%
	AMB Property Corp.			74		1,901
	DCT Industrial Trust Inc.			200		1,005
	EastGroup Properties Inc.			36		1,386
	Hansteen Holdings Plc			1,012		1,316
	ProLogis			217		2,973
	ProLogis European Properties (c)			61		374
						8,955
Office – REITS – 8.2%
	Alexandria Real Estate Equities Inc. (e)			31		1,980
	Boston Properties Inc.			93		6,248
	Commonwealth Property Office Fund (e)			1,049		910
	Great Portland Estates Plc			332		1,537
	Highwoods Properties Inc. (e)			69		2,301
	Icade SA			16		1,499
	Japan Real Estate Investment Corp.			-		2,441
	Kilroy Realty Corp. (e)			68		2,098
	Mack-Cali Realty Corp.			69		2,368
	Nippon Building Fund Inc.			-		2,448
	SL Green Realty Corp.			86		4,320
						28,150
Residential – REITS – 5.4%
	American Campus Communities Inc.			21		593
	AvalonBay Communities Inc. (e)			45		3,732
	Camden Property Trust			63		2,673
	Equity Residential			213		7,193
	Essex Property Trust Inc. (e)			43		3,618
	Mid-America Apartment Communities Inc.			12		599
						18,408
Retail – REITS – 16.6%
	Acadia Realty Trust			81		1,374
	CapitaMall Trust			2,457		3,139
	CFS Retail Property Trust (e)			2,809		4,788
	Federal Realty Investment Trust (e)			22		1,510
	Frontier Real Estate Investment Corp.			-		405
	Japan Retail Fund Investment Corp. (e)			-		1,048
	Link Real Estate Investment Trust			778		1,985
	Macerich Co. (e)			80		2,880
	Primaris Retail Real Estate Investment Trust			92		1,410
	Regency Centers Corp.			89		3,134
	RioCan Real Estate Investment Trust			247		4,681
	Simon Property Group Inc. (e)			164		13,097
	Tanger Factory Outlet Centers Inc.			56		2,181
	Vastned Retail NV			30		2,008
	Westfield Group			1,184		13,267
						56,907
Specialized – REITS – 10.0%
	Big Yellow Group Plc (c)			283		1,616
	HCP Inc.			91		2,793
	Health Care REIT Inc.			101		4,485
	Host Hotels & Resorts Inc. (c)			505		5,888
	LaSalle Hotel Properties			16		340
	Nationwide Health Properties Inc.			121		4,263
	Public Storage			81		6,573
	Senior Housing Properties Trust			127		2,775
	Ventas Inc.			127		5,570
						34,303
REAL ESTATE MANAGEMENT
& DEVELOPMENT– 31.1%
Real Estate Operating Companies – 25.0%
	Agile Property Holdings Ltd.			1,154		1,675
	Brookfield Properties Corp.			90		1,093
	CapitaLand Ltd.			1,769		5,251
	China Overseas Land & Investment Ltd.			2,505		5,248
	China Resources Land Ltd.			1,710		3,849
	City Developments Ltd.			120		982
	Gagfah Sa			93		851
	Glorious Property Holdings Ltd. (c)			959		434
	Guangzhou R&F Properties Co. Ltd.			166		289
	Hang Lung Properties Ltd.			1,151		4,512
	Henderson Land Development Co. Ltd.			790		5,903
	Hongkong Land Holdings Ltd.			1,538		7,575
	Kerry Properties Ltd.			645		3,260
	KWG Property Holding Ltd.			915		698
	Mitsui Fudosan Co. Ltd. (e)			565		9,557
	New World Development Ltd.			1,106		2,253
	Pebblebrook Hotel Trust (c)			29		645
	Retail Opportunity Investments Corp. (c)			80		814
	Sino Land Co.			1,162		2,237
	Sumitomo Realty & Development Co. Ltd. (e)			338		6,383
	Sun Hung Kai Properties Ltd.			1,232		18,317
	Unite Group Plc (c)			414		2,003
	Wharf Holdings Ltd.			284		1,629
	Yanlord Land Group Ltd. (e)			292		446
						85,904
Real Estate Services – 6.1%
	AEON Mall Co. Ltd.			57		1,095
	Castellum AB			333		3,385
	Citycon Oyj			361		1,524
	Conwert Immobilien Invest SE (c) (e)			129		1,581
	Deutsche EuroShop AG			40		1,361
	Hufvudstaden AB			99		753
	Mitsubishi Estate Co. Ltd.			629		10,047
	Nomura Real Estate Holdings Inc.			75		1,109
						20,855
	Total Common Stocks (cost $287,217)					334,694
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Morgan Stanley Capital I REMIC, 5.77%, 10/15/42 (i)		$	330		118
	Sigma Finance, Inc. (d) (f) (u)			1,085		46
						164
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $1,408)					164
SHORT TERM INVESTMENTS - 8.1%
Mutual Funds - 2.6%
	JNL Money Market Fund, 0.07% (a) (h)			8,814		8,814
Securities Lending Collateral - 5.5%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			5,818		5,818
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			13,160		13,132
						18,950
	Total Short Term Investments (cost $27,791)					27,764
Total Investments - 105.6% (cost $316,416)						362,622
Other Assets and Liabilities, Net -  (5.6%)						(19,267)
Total Net Assets - 100%					$	343,355
JNL/AIM Small Cap Growth Fund * (y)
COMMON STOCKS - 94.8%
CONSUMER DISCRETIONARY - 13.9%
	Big Lots Inc. (c)			26	$	749
	Deckers Outdoor Corp. (c)			8		772
	Jack in the Box Inc. (c)			37		720
	NetFlix Inc. (c) (e)			13		744
	PF Chang’s China Bistro Inc. (c) (e)			24		903
	TRW Automotive Holdings Corp. (c)			32		759
	Other Securities					8,355
						13,002
CONSUMER STAPLES - 1.5%
	Church & Dwight Co. Inc.			14		863
	Other Securities					509
						1,372
ENERGY - 7.1%
	Arena Resources Inc. (c) (e)			18		794
	Carrizo Oil & Gas Inc. (c) (e)			28		749
	Dril-Quip Inc. (c)			22		1,230
	FMC Technologies Inc. (c) (e)			14		820
	Other Securities					2,966
						6,559
FINANCIALS - 7.5%
	Affiliated Managers Group Inc. (c) (e)			11		757
	Greenhill & Co. Inc.			10		815
	ProAssurance Corp. (c) (e)			15		797
	SVB Financial Group (c)			20		820
	Other Securities					3,820
						7,009
HEALTH CARE - 16.6%
	American Medical Systems Holdings Inc. (c)			39		750
	Chemed Corp.			19		913
	Eclipsys Corp. (c)			41		750
	Mednax Inc. (c)			16		963
	Perrigo Co.			19		762
	United Therapeutics Corp. (c)			17		915
	VCA Antech Inc. (c)			29		725
	Other Securities					9,606
						15,384
INDUSTRIALS - 14.6%
	Bucyrus International Inc. - Class A			16		915
	Corrections Corp. of America (c)			37		901
	CoStar Group Inc. (c) (e)			24		1,023
	HUB Group Inc. - Class A (c) (e)			30		801
	Knight Transportation Inc. (e)			55		1,058
	Regal-Beloit Corp.			18		945
	Tetra Tech Inc. (c)			31		843
	TransDigm Group Inc.			25		1,204
	Wabtec Corp.			20		814
	Other Securities					5,105
						13,609
INFORMATION TECHNOLOGY - 28.8%
	Advanced Energy Industries Inc. (c)			53		803
	Ansys Inc. (c)			17		726
	Blackboard Inc. (c) (e)			16		737
	Cogent Inc. (c)			68		709
	CommVault Systems Inc. (c)			30		707
	F5 Networks Inc. (c)			18		929
	Global Payments Inc.			16		866
	Informatica Corp. (c) (e)			49		1,255
	Microsemi Corp. (c)			40		710
	Nice Systems Ltd. - ADR (c)			27		838
	ON Semiconductor Corp. (c) (e)			84		739
	Polycom Inc. (c) (e)			38		956
	Quality Systems Inc.			19		1,221
	Sybase Inc. (c)			24		1,047
	Tech Data Corp. (c)			16		753
	VistaPrint NV (c) (e)			15		844
	Other Securities					12,945
						26,785
MATERIALS - 2.8%
	Grief Inc.			18		950
	Other Securities					1,627
						2,577
TELECOMMUNICATION SERVICES - 1.1%
	SBA Communications Corp. (c)			29		1,005
UTILITIES - 0.9%
	ITC Holdings Corp.			16		857
	Total Common Stocks (cost $82,164)					88,159
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Other Securities					12
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $289)					12
SHORT TERM INVESTMENTS - 22.5%
Mutual Funds - 4.9%
	JNL Money Market Fund, 0.07% (a) (h)			4,526		4,526
Securities Lending Collateral - 17.6%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			12,335		12,335
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			3,995		3,987
						16,322
	Total Short Term Investments (cost $20,856)					20,848
Total Investments - 117.3% (cost $103,309)						109,019
Other Assets and Liabilities, Net -  (17.3%)						(16,069)
Total Net Assets - 100%					$	92,950
JNL/Capital Guardian Global Balanced Fund
COMMON STOCKS - 63.7%
CONSUMER DISCRETIONARY - 6.5%
	Adidas AG			15		813
	Anhanguera Educacional Participacoes SA (c) (t) (u)			34		487
	B2W Compania Global Do Varejo			5		137
	BorgWarner Inc.			10		345
	Carnival Corp. (c)			3		101
	CBS Corp. - Class B			61		854
	Coach Inc.			7		270
	Daimler AG			38		2,019
	Discovery Communications Inc. - Class A (c)			13		393
	Hennes & Mauritz AB - Class B			12		674
	Home Depot Inc.			27		772
	Honda Motor Co. Ltd.			14		479
	Hyundai Mobis			6		894
	LG Electronics Inc.			4		417
	Li & Fung Ltd.			120		496
	Li Ning Co. Ltd. (e)			275		1,041
	Lowe's Cos. Inc.			27		622
	PT Astra International Tbk			57		208
	SES SA			52		1,169
	Strayer Education Inc. (e)			2		361
	Target Corp.			61		2,936
	Time Warner Cable Inc. (e)			4		170
	Toyota Motor Corp.			22		907
	Urban Outfitters Inc. (c)			4		140
	Vivendi SA			11		327
	Walt Disney Co.			37		1,181
						18,213
CONSUMER STAPLES - 8.0%
	British American Tobacco Plc			6		69
	Coca-Cola Amatil Ltd.			27		279
	Coca-Cola Co.			5		279
	CP ALL PCL			18		14
	Danone SA			14		871
	General Mills Inc.			3		212
	Hypermarcas SA (c) (t) (u)			11		252
	Imperial Tobacco Group Plc			42		1,329
	Kraft Foods Inc. - Class A			6		174
	KT&G Corp.			1		76
	KT&G Corp. - GDR (t) (v)			4		118
	Lawson Inc.			3		119
	L'Oreal SA			27		3,044
	Magnit OAO (c)			9		148
	Marfrig Frigorificos e Comercio de Alimentos SA (t) (u)			105		1,149
	Metro AG			9		525
	Nestle SA			32		1,570
	PepsiCo Inc.			15		906
	Pernod-Ricard SA (e)			24		2,024
	Philip Morris International Inc.			45		2,183
	Procter & Gamble Co.			40		2,426
	Seven & I Holdings Co. Ltd.			11		233
	Shoppers Drug Mart Corp. (e)			6		243
	Tesco Plc			200		1,381
	Unilever NV			6		196
	United Spirits Ltd.			32		852
	Wal-Mart Stores Inc.			29		1,534
	Woolworths Ltd.			6		156
						22,362
ENERGY - 4.8%
	BG Group Plc			76		1,372
	BP Plc			71		689
	Cameco Corp.			40		1,278
	Cenovus Energy Inc.			14		346
	Chevron Corp.			8		577
	China Shenhua Energy Co. Ltd.			250		1,214
	CNOOC Ltd.			105		164
	EnCana Corp.			5		163
	Gazprom OAO - ADR			23		579
	Marathon Oil Corp.			22		681
	Oil Search Ltd.			29		161
	Reliance Industries Ltd.			20		457
	Royal Dutch Shell Plc - Class A			34		1,032
	Sasol Ltd.			43		1,732
	Schlumberger Ltd.			22		1,425
	SeaDrill Ltd. (e)			11		272
	S-Oil Corp.			4		169
	Transocean Ltd. (c)			9		761
	Weatherford International Ltd. (c)			17		298
						13,370
FINANCIALS - 10.6%
	ACE Ltd.			3		156
	Allianz SE			5		575
	Allstate Corp.			40		1,202
	AON Corp.			6		219
	AXA SA (t) (u)			13		316
	Banco Bilbao Vizcaya Argentaria SA			81		1,472
	Banco Bradesco SA - ADR			41		897
	Banco Santander SA			16		268
	Bank of China Ltd. (e)			1,686		906
	Bank of New York Mellon Corp.			3		84
	Bank Pekao SA (c)			3		176
	Barclays Plc (t) (u)			162		721
	Berkshire Hathaway Inc. - Class A (c)			-		1,091
	BlackRock Inc. (e)			1		232
	BNP Paribas (t) (u)			13		1,028
	BOC Hong Kong Holdings Ltd.			85		190
	Bumiputra-Commerce Holdings Bhd			82		308
	CapitaMalls Asia Ltd. (c) (t) (u)			216		391
	Charles Schwab Corp.			19		356
	CME Group Inc.			1		235
	DLF Ltd. (u)			201		1,544
	Goldman Sachs Group Inc.			18		2,973
	Grupo Financiero Inbursa SA			440		1,301
	Hong Kong Exchanges & Clearing Ltd.			28		493
	HSBC Holdings Plc			218		2,498
	Industrial & Commercial Bank of China			2,376		1,957
	Itau Unibanco Holding SA - ADR (e)			15		338
	JPMorgan Chase & Co.			35		1,442
	Link Real Estate Investment Trust			166		424
	Lloyds Banking Group Plc (c)			445		364
	MSCI Inc. (c)			38		1,199
	Muenchener Rueckversicherungs AG			4		681
	National Australia Bank Ltd.			6		147
	Onex Corp.			4		92
	Plum Creek Timber Co. Inc. (e)			12		449
	Progressive Corp. (c)			72		1,290
	Shinsei Bank Ltd.			200		218
	State Street Corp.			3		144
	UBS AG (c) (u)			16		247
	UniCredit SpA (c)			352		1,183
	Wharf Holdings Ltd.			40		230
						30,037
HEALTH CARE - 6.2%
	Aetna Inc.			17		548
	Allergan Inc.			4		246
	Baxter International Inc.			26		1,520
	Bayer AG			13		1,060
	Celgene Corp. (c)			25		1,409
	Cerner Corp. (c)			27		2,226
	DaVita Inc. (c)			19		1,122
	Johnson & Johnson			15		985
	Medtronic Inc.			10		418
	Merck & Co. Inc.			27		983
	Novo-Nordisk A/S - Class B			4		230
	Roche Holding AG			18		2,982
	Shire Plc			73		1,422
	Shire Plc - ADR (e)			3		158
	Synthes Inc.			1		144
	Teva Pharmaceutical Industries Ltd. - ADR			18		1,011
	UnitedHealth Group Inc.			29		881
						17,345
INDUSTRIALS - 4.5%
	Andritz AG			9		518
	Assa Abloy AB			10		185
	BAE Systems Plc			74		427
	British Airways Plc (c) (e)			39		117
	China Railway Construction Corp. Ltd.			472		601
	China Railway Group Ltd. (c) (e)			177		137
	Cia de Concessoes Rodoviarias			43		984
	Container Corp. of India Ltd.			8		214
	Cummins Inc.			4		161
	Danaher Corp.			4		278
	East Japan Railway Co.			5		298
	Emerson Electric Co.			18		758
	FedEx Corp.			2		200
	First Solar Inc. (c) (e)			5		691
	JetBlue Airways Corp. (c)			48		262
	Mitsubishi Corp.			40		999
	Mitsui OSK Lines Ltd.			99		523
	Norfolk Southern Corp.			25		1,331
	Orascom Construction Industries - GDR (t) (u)			8		341
	Parker Hannifin Corp.			3		145
	Qantas Airways Ltd.			122		325
	Siemens AG (e)			17		1,520
	SMC Corp.			5		548
	Sumitomo Corp.			42		431
	SunPower Corp. - Class A (c)			4		92
	Suntech Power Holdings Co. Ltd. - ADR (c) (e)			9		150
	Vestas Wind Systems A/S (c)			6		342
						12,578
INFORMATION TECHNOLOGY - 9.8%
	Acer Inc.			490		1,471
	Adobe Systems Inc. (c)			34		1,243
	Agilent Technologies Inc. (c)			7		224
	Apple Inc. (c)			7		1,392
	ASML Holding NV			42		1,461
	Broadcom Corp. - Class A (c) (e)			20		629
	BYD Co. Ltd. (c) (e)			19		162
	Cielo SA  (t) (u)			4		37
	Cisco Systems Inc. (c)			54		1,295
	Epistar Corp.			24		90
	Epistar Corp. - GDR (c) (f) (t) (u)			6		113
	Foxconn International Holdings Ltd. (c)			127		146
	Genpact Ltd. (c)			25		370
	Giant Interactive Group Inc. - ADR (e)			12		82
	Google Inc. - Class A (c)			5		3,225
	HON HAI Precision Industry Co. Ltd. - GDR			39		377
	International Business Machines Corp.			11		1,453
	Juniper Networks Inc. (c) (e)			46		1,216
	Keyence Corp.			1		216
	Maxim Integrated Products Inc.			20		414
	MediaTek Inc.			16		278
	Microchip Technology Inc. (e)			8		232
	Murata Manufacturing Co. Ltd.			17		849
	NetApp Inc. (c)			6		199
	Nidec Corp.			2		203
	Nintendo Co. Ltd.			9		2,055
	Oracle Corp.			8		199
	Oracle Corp. Japan (e)			12		513
	QUALCOMM Inc.			21		976
	Research In Motion Ltd. (c)			2		156
	Samsung Electronics Co. Ltd. - GDR			1		256
	SAP AG (e)			15		729
	Taiwan Semiconductor Manufacturing Co. Ltd.			827		1,667
	Taiwan Semiconductor Manufacturing Co. Ltd. - ADR			12		137
	TDK Corp.			4		245
	Tencent Holdings Ltd.			18		398
	Trend Micro Inc. (e)			36		1,368
	Visa Inc. - Class A			14		1,181
	Wistron Corp.			86		167
						27,424
MATERIALS - 5.6%
	Air Liquide			4		463
	Allegheny Technologies Inc. (e)			30		1,361
	Anglo American Plc (c)			12		521
	AngloGold Ashanti Ltd.			9		366
	Barrick Gold Corp.			27		1,075
	China Shanshui Cement Group Ltd.			549		398
	Cliffs Natural Resources Inc.			10		461
	CRH Plc			56		1,531
	Harmony Gold Mining Co. Ltd (e)			6		57
	HeidelbergCement AG			3		180
	Holcim Ltd. (e)			14		1,097
	Inmet Mining Corp.			4		237
	Lafarge SA (t) (u)			9		774
	LG Chem Ltd.			2		388
	LG Chem Ltd. - GDR (c) (t) (v)			2		157
	MMC Norilsk Nickel - ADR (c)			16		236
	Monsanto Co.			7		605
	Nucor Corp.			3		145
	OCI Co. Ltd.			-		79
	Pretoria Portland Cement Co. Ltd.			68		321
	PT Indocement Tunggal Prakarsa Tbk			9		13
	Rio Tinto Plc			6		318
	Sappi Ltd. (c)			115		556
	Sappi Ltd. - ADR (c) (e)			15		70
	Semen Gresik Persero Tbk PT			241		192
	Shin-Etsu Chemical Co. Ltd.			3		175
	Stora Enso Oyj - Class R (c) (e)			22		153
	Sumitomo Chemical Co. Ltd.			25		110
	Syngenta AG			4		1,231
	UPM-Kymmene Oyj			7		86
	Vale SA - ADR			6		156
	Vulcan Materials Co. (e)			33		1,722
	Xstrata Plc (c)			19		349
						15,583
TELECOMMUNICATION SERVICES - 5.5%
	America Movil SAB de CV - ADR			4		193
	American Tower Corp. (c)			29		1,236
	Bezeq Israeli Telecommunication Corp. Ltd.			92		234
	Bharti Airtel Ltd.			76		540
	France Telecom SA			61		1,526
	Koninklijke KPN NV			143		2,422
	Maxis Bhd (t) (u)			298		467
	MTN Group Ltd.			13		208
	Rogers Communications Inc. - Class B			5		159
	SK Telecom Co. Ltd.			1		201
	SK Telecom Co. Ltd. - ADR (e)			16		265
	SoftBank Corp.			57		1,339
	Taiwan Mobile Co. Ltd.			109		212
	Telefonos de Mexico SAB de CV			50		42
	Telefonos de Mexico SAB de CV - ADR (e)			119		1,978
	Telmex Internacional SAB de CV - ADR (e)			112		1,981
	Telstra Corp. Ltd.			263		809
	Turk Telekomunikasyon AS			67		205
	Turkcell Iletisim Hizmet AS			11		78
	Turkcell Iletisim Hizmet AS - ADR			1		12
	Verizon Communications Inc.			38		1,246
						15,353
UTILITIES - 2.2%
	Centrais Eletricas Brasileiras SA			10		208
	Centrais Eletricas Brasileiras SA - ADR			3		52
	China Longyuan Power Group Corp. (c) (e) (t) (u)			236		306
	Companhia Energetica de Minas Gerais - ADR			13		229
	E.ON AG (e)			28		1,178
	Edison International			4		146
	Electricite de France SA			21		1,252
	Enersis SA - ADR			1		27
	Exelon Corp.			3		161
	GDF Suez			16		695
	National Grid Plc			29		317
	Tanjong Plc			45		219
	Veolia Environnement (e)			44		1,457
						6,247
	Total Common Stocks (cost $161,366)					178,512
PREFERRED STOCKS - 0.5%
INFORMATION TECHNOLOGY - 0.0%
	ASAT Holdings Ltd., 13.00%  (f) (s) (u)			7		-
MATERIALS - 0.1%
	Cia Vale do Rio Doce			6		145
TELECOMMUNICATION SERVICES - 0.2%
	Tele Norte Leste Participacoes SA			22		466
UTILITIES - 0.2%
	Cia Energetica de Sao Paulo			61		838
	Eletropaulo Metropolitana Eletricidade de Sao Paulo SA			4		71
						909
	Total Preferred Stocks (cost $1,214)					1,520
WARRANTS - 0.0%
	ASAT Holdings Ltd. 07/24/11 (c) (f) (s) (u)			-		-
	Total Warrants (cost $0)					-
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Sigma Finance, Inc. (d) (f) (u)		$	826		35
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $826)					35
CORPORATE BONDS AND NOTES - 6.2%
CONSUMER DISCRETIONARY - 0.5%
	Altegrity Inc., 10.50%, 11/01/15 (t) (u)			200		178
	Charter Communications Operating LLC,
	8.38%, 04/30/14 (d) (k) (t) (u)			200		206
	Comcast Corp., 5.88%, 02/15/18			250		265
	Daimler Finance North America LLC, 5.88%, 03/15/11			355		371
	Time Warner Inc., 5.88%, 11/15/16			250		270
	Volvo AB, 5.00%, 05/31/17	EUR		150		209
						1,499
CONSUMER STAPLES - 0.3%
	Anheuser-Busch InBev NV, 8.63%, 01/30/17	EUR		175		316
	Imperial Tobacco Finance Plc, 8.38%, 02/17/16	EUR		250		434
	Tesco Plc, 5.50%, 01/13/33	GBP		100		156
						906
ENERGY - 0.0%
	Evergreen Energy Inc., 8.00%, 08/01/12 (s) (u)			60		21
	Petrobras International Finance Co., 6.88%, 01/20/20			85		87
						108
FINANCIALS - 2.7%
	Bank of America Corp., 5.75%, 12/01/17			480		492
	BAT International Finance Plc, 8.13%, 11/15/13 (t) (u)			150		173
	DBS Bank Ltd. Singapore, 7.88%, 04/15/10 (t) (u)			150		152
	Depfa ACS Bank, 3.25%, 02/15/12	EUR		550		779
	Eurohypo AG, 4.50%, 01/21/13	EUR		100		152
	Ford Motor Credit Co. LLC, 8.00%, 12/15/16			175		175
	Goldman Sachs Group Inc., 7.50%, 02/15/19			300		350
	JPMorgan Chase & Co., 6.30%, 04/23/19			150		165
	Liberty Mutual Group Inc., 7.50%, 08/15/36 (t) (u)			350		320
	Lloyds TSB Bank Plc, 6.38%, 06/17/16	EUR		500		778
	Merrill Lynch & Co. Inc., 4.63%, 09/14/18	EUR		250		319
	Muenchener Rueckversicherungs AG,
	6.75%, 06/21/23	EUR		150		229
	Nielsen Finance LLC, 10.00%, 08/01/14			200		208
	ProLogis, 7.38%, 10/30/19			600		592
	Rodamco Europe Finance BV, 3.75%, 12/12/12	EUR		200		293
	Royal Bank of Scotland Plc
	4.38%, 07/13/16	EUR		250		360
	6.93%, 04/09/18	EUR		200		266
	Societe Generale, 5.75%, 04/20/16 (t) (u)			150		152
	Standard Chartered Bank, 6.40%, 09/26/17 (t) (u)			300		312
	Telecom Italia Finance SA, 7.75%, 01/24/33	EUR		150		248
	UniCredito Luxemburg Finance SA,
	6.00%, 10/31/17 (e) (t) (u)			150		149
	Westfield Europe Finance Plc
	3.63%, 06/27/12	EUR		400		568
	5.50%, 06/27/17	EUR		150		229
						7,461
HEALTH CARE - 0.8%
	AstraZeneca Plc, 5.90%, 09/15/17 (e)			250		278
	GlaxoSmithKline Capital Inc., 5.65%, 05/15/18			200		216
	HCA Inc., 9.25%, 11/15/16			75		81
	Pfizer Inc., 6.20%, 03/15/19			400		445
	Roche Holdings Inc., 6.00%, 03/01/19 (t) (u)			400		440
	Schering-Plough Corp., 5.38%, 10/01/14	EUR		350		548
	Tenet Healthcare Corp., 8.88%, 07/01/19 (t) (u)			200		216
						2,224
INDUSTRIALS - 0.1%
	General Electric Co., 5.00%, 02/01/13			200		212
INFORMATION TECHNOLOGY - 0.1%
	NXP BV, 7.88%, 10/15/14			200		182
MATERIALS - 0.1%
	Lafarge SA, 8.75%, 05/30/17	GBP		100		182
TELECOMMUNICATION SERVICES - 1.1%
	AT&T Inc., 5.80%, 02/15/19			600		640
	AT&T Wireless Services Inc., 8.13%, 05/01/12			250		282
	France Telecom SA
	7.75%, 03/01/11 (l)			150		161
	7.50%, 03/14/11	GBP		150		259
	Koninklijke KPN NV, 4.75%, 01/17/17	EUR		200		295
	Qwest Communications International Inc.,
	7.25%, 02/15/14 (k)			100		100
	Telecom Italia SpA, 8.25%, 03/21/16	EUR		150		261
	Telefonica Emisiones SAU, 5.88%, 07/15/19			400		429
	Vodafone Group Plc, 4.75%, 06/14/16	EUR		350		522
						2,949
UTILITIES - 0.5%
	Abu Dhabi National Energy Co., 6.17%, 10/25/17			300		288
	AES Corp., 7.75%, 10/15/15			125		127
	AES Panama SA, 6.35%, 12/12/16 (t) (u)			300		295
	Edison Mission Energy, 7.75%, 06/15/16			150		128
	National Grid Plc, 6.30%, 08/01/16			300		326
	Veolia Environnement, 5.25%, 06/03/13 (e)			325		344
						1,508
	Total Corporate Bonds and Notes (cost $16,728)					17,231
GOVERNMENT AND AGENCY OBLIGATIONS - 25.4%
GOVERNMENT SECURITIES - 22.3%
Sovereign - 16.0%
	Argentina Government International Bond,
	7.00%, 10/03/15 (f)			175		147
	Brazil Notas do Tesouro Nacional Series F,
	10.00%, 01/01/17	BRL		410		212
	Brazilian Government International Bond
	12.50%, 01/05/16	BRL		300		194
	12.50%, 01/05/22	BRL		250		162
	Canadian Government Bond
	4.50%, 06/01/15	CAD		1,100		1,134
	4.50%, 06/01/15	CAD		100		103
	Colombia Government International Bond
	12.00%, 10/22/15	COP		411,000		247
	9.85%, 06/28/27	COP		35,000		20
	Croatia Government International Bond,
	6.75%, 11/05/19 (t) (u)			750		808
	Denmark Government Bond, 5.00%, 11/15/13	DKK		11,975		2,517
	Dominican Republic International Bond,
	8.63%, 04/20/27 (t) (u)			150		157
	France Government Bond
	5.00%, 10/25/11	EUR		625		955
	4.25%, 10/25/23	EUR		550		811
	Gabonese Republic, 8.20%, 12/12/17			200		209
	German Treasury Bond
	4.75%, 06/11/10	EUR		1,400		2,045
	4.00%, 01/04/37	EUR		100		140
	Indonesia Government Bond
	12.50%, 03/15/13	IDR		250,000		29
	11.00%, 10/15/14	IDR		65,000		7
	9.50%, 06/15/15	IDR		1,965,000		212
	10.75%, 05/15/16	IDR		145,000		16
	12.80%, 06/15/21	IDR		95,000		12
	Ireland Government Bond, 4.00%, 01/15/14	EUR		575		846
	Italy Buoni Poliennali Del Tesoro
	5.00%, 02/01/12	EUR		825		1,260
	3.75%, 12/15/13	EUR		700		1,045
	4.50%, 03/01/19	EUR		1,700		2,558
	Japan Government Bond
	1.10%, 03/21/11	JPY		140,000		1,521
	1.50%, 09/20/14	JPY		125,000		1,407
	1.70%, 09/20/17	JPY		280,000		3,183
	2.30%, 12/20/35	JPY		50,000		542
	Korea Treasury Bond
	4.25%, 09/10/14	KRW		1,050,000		878
	5.75%, 09/10/18	KRW		100,000		88
	Malaysia Government Bond
	5.09%, 04/30/14	MYR		2,325		718
	3.74%, 02/27/15	MYR		200		58
	Mexican Bonos
	9.50%, 12/18/14	MXN		20,000		1,661
	7.75%, 12/14/17	MXN		3,300		251
	Netherlands Government Bond, 3.25%, 07/15/15	EUR		1,250		1,844
	Norway Government Bond, 6.50%, 05/15/13	NOK		1,250		239
	Poland Government International Bond
	5.75%, 04/25/14	PLN		5,250		1,837
	5.25%, 10/25/17	PLN		600		198
	6.38%, 07/15/19 (e)			250		272
	Qatar Government International Bond,
	5.25%, 01/20/20 (t) (u)			150		151
	Queensland Treasury Corp., 6.00%, 10/14/15	AUD		2,500		2,263
	Republic of Argentina, 0.94%, 08/03/12 (i)			325		112
	Republic of Colombia, 7.38%, 01/27/17			100		113
	Republic of Deutschland
	3.75%, 07/04/13	EUR		250		380
	4.25%, 07/04/14	EUR		1,570		2,426
	3.25%, 07/04/15	EUR		1,025		1,516
	4.75%, 07/04/34	EUR		950		1,478
	Republic of El Salvador, 7.38%, 12/01/19 (t) (u)			100		103
	Republic of Iraq, 5.80%, 01/15/28			500		382
	Republic of Turkey
	7.50%, 07/14/17			125		142
	7.50%, 11/07/19			150		169
	Republic of Venezuela
	5.38%, 08/07/10			115		112
	9.38%, 01/13/34			260		175
	Singapore Government Bond, 3.75%, 09/01/16	SGD		1,000		787
	Spanish Government Bond, 4.40%, 01/31/15	EUR		400		611
	Sweden Government Bond, 6.75%, 05/05/14	SEK		5,250		865
	Thailand Government Bond
	5.25%, 05/12/14	THB		4,950		160
	3.63%, 05/22/15	THB		5,425		162
	Turkey Government International Bond
	10.00%, 02/15/12	TRY		225		167
	16.00%, 03/07/12	TRY		350		262
	United Kingdom Treasury Bond
	4.50%, 03/07/19	GBP		775		1,292
	4.25%, 06/07/32	GBP		300		471
						44,842
Treasury Inflation Index Securities - 0.6%
	U.S. Treasury Inflation Indexed Note, 2.00%, 07/15/14 (r)			1,305		1,549
U.S. Treasury Securities - 5.7%
	U.S. Treasury Bond
	7.50%, 11/15/16			1,400		1,764
	5.25%, 02/15/29			1,000		1,083
	4.38%, 02/15/38			850		816
	U.S. Treasury Note
	4.50%, 02/28/11			2,500		2,609
	2.75%, 02/28/13			4,500		4,636
	4.25%, 08/15/13			1,600		1,726
	4.25%, 11/15/13			2,450		2,647
	3.50%, 02/15/18			750		744
						16,025
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED SECURITIES - 3.1%
Federal National Mortgage Association - 2.8%
	Federal National Mortgage Association
	6.00%, 01/16/37, TBA (g)			1,915		2,028
	5.50%, 03/01/37			911		955
	6.50%, 11/01/37			1,081		1,158
	5.50%, 01/01/39			3,676		3,853
						7,994
Government National Mortgage Association - 0.3%
	Government National Mortgage Association,
	4.50%, 11/20/39			849		849
	Total Government and Agency Obligations (cost $70,224)					71,259
SHORT TERM INVESTMENTS - 10.0%
Mutual Funds - 5.0%
	JNL Money Market Fund, 0.07% (a) (h)			13,868		13,868
Securities Lending Collateral - 5.0%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			3,706		3,706
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			10,418		10,396
						14,102
	Total Short Term Investments (cost $27,992)					27,970
Total Investments - 105.8% (cost $278,350)						296,527
Other Assets and Liabilities, Net -  (5.8%)						(16,310)
Total Net Assets - 100%					$	280,217
JNL/Capital Guardian Global
Diversified Research Fund * (y)
COMMON STOCKS - 94.9%
CONSUMER DISCRETIONARY - 7.1%
	LG Electronics Inc.			27	$	2,846
	Lowe’s Cos. Inc.			102		2,387
	Target Corp.			82		3,952
	Toyota Motor Corp.			56		2,354
	Other Securities					12,193
						23,732
CONSUMER STAPLES - 10.4%
	Coca-Cola Amatil Ltd.			234		2,416
	Coca-Cola Co.			34		1,910
	Imperial Tobacco Group Plc			83		2,618
	Kraft Foods Inc. - Class A			86		2,348
	Lawson Inc.			61		2,678
	PepsiCo Inc.			54		3,277
	Pernod-Ricard SA			66		5,712
	Procter & Gamble Co.			38		2,322
	Other Securities					11,233
						34,514
ENERGY - 11.1%
	BG Group Plc			322		5,825
	Cenovus Energy Inc.			99		2,505
	Chevron Corp.			31		2,402
	China Shenhua Energy Co. Ltd.			922		4,476
	Gazprom OAO - ADR			174		4,427
	Royal Dutch Shell Plc - Class A			156		4,732
	Sasol Ltd.			64		2,594
	Schlumberger Ltd.			36		2,337
	Other Securities					7,590
						36,888
FINANCIALS - 18.3%
	Banco Santander SA			139		2,304
	Bank of China Ltd. (e)			6,845		3,678
	BNP Paribas (u)			60		4,796
	Goldman Sachs Group Inc.			28		4,728
	HSBC Holdings Plc			329		3,762
	Industrial & Commercial Bank of China			5,477		4,510
	Link Real Estate Investment Trust			940		2,398
	Progressive Corp. (c)			127		2,287
	UBS AG (c) (u)			162		2,520
	Wharf Holdings Ltd.			551		3,163
	Other Securities					26,828
						60,974
HEALTH CARE - 9.0%
	Allergan Inc.			42		2,640
	DaVita Inc. (c)			41		2,408
	Medtronic Inc.			72		3,175
	Roche Holding AG			30		5,054
	Shire Plc			143		2,792
	Other Securities					13,819
						29,888
INDUSTRIALS - 8.3%
	China Railway Construction Corp. Ltd.			938		1,195
	China Railway Group Ltd. (c) (e)			1,715		1,324
	JetBlue Airways Corp. (c)			439		2,391
	Other Securities					22,819
						27,729
INFORMATION TECHNOLOGY - 13.1%
	Google Inc. - Class A (c)			6		3,596
	Juniper Networks Inc. (c)			91		2,424
	Keyence Corp.			12		2,413
	Maxim Integrated Products Inc.			126		2,566
	Oracle Corp.			71		1,745
	Oracle Corp. Japan			22		917
	SAP AG			49		2,325
	Visa Inc. - Class A (e)			37		3,193
	Other Securities					24,260
						43,439
MATERIALS - 8.7%
	Anglo American Plc (c)			63		2,758
	Inmet Mining Corp.			41		2,494
	Rio Tinto Plc			54		2,955
	Xstrata Plc (c)			160		2,901
	Other Securities					17,961
						29,069
TELECOMMUNICATION SERVICES - 6.5%
	American Tower Corp. (c)			158		6,827
	France Telecom SA			97		2,433
	Koninklijke KPN NV			160		2,709
	Other Securities					9,509
						21,478
UTILITIES - 2.4%
	Other Securities					8,028
	Total Common Stocks (cost $280,551)					315,739
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Other Securities					34
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $810)					34
CORPORATE BONDS AND NOTES - 0.1%
ENERGY - 0.1%
	Other Securities					299
	Total Corporate Bonds and Notes (cost $153)					299
SHORT TERM INVESTMENTS - 10.2%
Mutual Funds - 5.5%
	JNL Money Market Fund, 0.07% (a) (h)			18,355		18,355
Securities Lending Collateral - 4.7%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			8,015		8,015
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			7,677		7,661
						15,676
	Total Short Term Investments (cost $34,047)					34,031
Total Investments - 105.2% (cost $315,561)						350,103
Other Assets and Liabilities, Net -  (5.2%)						(17,197)
Total Net Assets - 100%					$	332,906
JNL/Capital Guardian International
Small Cap Fund * (y)
COMMON STOCKS - 90.2%
CONSUMER DISCRETIONARY - 14.2%
	ABC-Mart Inc.			52	$	1,452
	DSG International Plc (c)			1,638		965
	Hyundai Department Store Co. Ltd.			18		1,780
	Inchcape Plc (c)			2,187		1,054
	JB Hi-Fi Ltd.			58		1,173
	Yell Group Plc (c) (e) (t) (u)			1,568		995
	Other Securities					13,001
						20,420
CONSUMER STAPLES - 10.2%
	C&C Group Plc			617		2,665
	Davide Campari-Milano SpA			313		3,281
	Hite Brewery Co. Ltd.			7		1,016
	MARR SpA (e)			147		1,259
	Olam International Ltd. (e) (t) (u)			511		961
	Pigeon Corp. (e)			33		1,297
	Sundrug Co. Ltd.			66		1,462
	Other Securities					2,838
						14,779
ENERGY - 1.2%
	Other Securities					1,714
FINANCIALS - 12.4%
	Bolsas y Mercados Espanoles SA (e)			33		1,050
	CapitaCommercial Trust (t) (u)			1,264		1,047
	Industrial Alliance Insurance & Financial Services Inc.			39		1,189
	Korean Reinsurance Co.			190		1,604
	Laurentian Bank of Canada			42		1,696
	Paragon Group Companies Plc			485		1,026
	Sumitomo Real Estate Sales Co. Ltd.			32		1,340
	Other Securities					8,868
						17,820
HEALTH CARE - 5.8%
	Hogy Medical Co. Ltd.			34		1,672
	MANI Inc.			16		945
	Sysmex Corp.			61		3,196
	Other Securities					2,586
						8,399
INDUSTRIALS - 20.3%
	Aecon Group Inc.			115		1,638
	Andritz AG			19		1,119
	Chiyoda Corp. (e)			160		1,236
	Cosel Co. Ltd.			79		949
	Kintetsu World Express Inc.			39		1,011
	MISUMI Group Inc. (e)			99		1,699
	Miura Co. Ltd. (e)			91		2,312
	S1 Corp.			25		1,042
	Seek Ltd.			783		4,842
	SMA Solar Technology SA			11		1,498
	Other Securities					11,891
						29,237
INFORMATION TECHNOLOGY - 11.5%
	Dai-ichi Seiko Co. Ltd.			27		1,152
	Dialog Semiconductor Plc (c) (e)			90		984
	Hamamatsu Photonics KK (e)			115		2,805
	Kontron AG			139		1,585
	Wacom Co. Ltd. (e)			1		2,500
	Yamatake Corp. (e)			77		1,715
	Other Securities					5,901
						16,642
MATERIALS - 13.3%
	Centerra Gold Inc. (c)			58		593
	Centerra Gold Inc. (c) (f) (u)			71		728
	China Shanshui Cement Group Ltd.			1,309		950
	Iluka Resources Ltd. (c)			666		2,131
	Inmet Mining Corp.			18		1,113
	Labrador Iron Ore Royalty Income Fund			40		1,659
	Minefinders Corp. (c) (e)			160		1,657
	Petropavlovsk Plc			112		1,850
	Platmin Ltd. (c)			1,054		1,271
	Uranium One Inc. (c)			423		1,218
	Other Securities					5,984
						19,154
TELECOMMUNICATION SERVICES - 0.8%
	Freenet AG (c)			82		1,108
UTILITIES - 0.5%
	Other Securities					773
	Total Common Stocks (cost $122,102)					130,046
PREFERRED STOCKS - 0.1%
HEALTH CARE - 0.1%
	Other Securities					181
	Total Preferred Stocks (cost $244)					181
INVESTMENT FUNDS - 0.9%
	SPDR S&P International Small Cap ETF			51		1,282
	Total Investment Funds (cost $1,288)					1,282
RIGHTS - 0.0%
	Other Securities					69
	Total Rights (cost $0)					69
WARRANTS - 0.1%
	Minefinders Corp., 12/31/11 (c)			19		110
	Peter Hambro Mining Plc, 06/09/10 (c)			10		19
	Other Securities					14
	Total Warrants (cost $87)					143
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Other Securities					9
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $212)					9
CORPORATE BONDS AND NOTES - 0.1%
CONSUMER STAPLES - 0.1%
	Olam International Ltd., 1.00%, 07/03/13			100		100
	Total Corporate Bonds and Notes (cost $55)					100
SHORT TERM INVESTMENTS - 16.6%
Mutual Funds - 9.1%
	JNL Money Market Fund, 0.07% (a) (h)			13,149		13,149
Securities Lending Collateral - 7.5%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			8,483		8,483
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			2,271		2,266
						10,749
	Total Short Term Investments (cost $23,903)					23,898
Total Investments - 108.0% (cost $147,891)						155,728
Other Assets and Liabilities, Net -  (8.0%)						(11,506)
Total Net Assets - 100%					$	144,222
JNL/Capital Guardian U.S. Growth
Equity Fund
COMMON STOCKS - 94.0%
CONSUMER DISCRETIONARY - 10.7%
	Coach Inc.			181	$	6,608
	Lowe's Cos. Inc.			343		8,030
	Omnicom Group Inc.			70		2,733
	Scripps Networks Interactive Inc.			79		3,266
	Strayer Education Inc. (e)			30		6,375
	Target Corp.			319		15,415
	Time Warner Cable Inc. (e)			79		3,286
	Time Warner Inc.			67		1,956
	Urban Outfitters Inc. (c) (e)			65		2,271
	Viacom Inc. - Class B (c)			319		9,487
						59,427
CONSUMER STAPLES - 10.1%
	Alberto-Culver Co.			90		2,627
	Avon Products Inc.			115		3,607
	Colgate-Palmolive Co.			43		3,565
	Costco Wholesale Corp.			106		6,272
	Energizer Holdings Inc. (c)			29		1,759
	PepsiCo Inc.			276		16,805
	Philip Morris International Inc.			151		7,262
	Procter & Gamble Co.			76		4,614
	Wal-Mart Stores Inc.			184		9,819
						56,330
ENERGY - 4.5%
	Baker Hughes Inc. (e)			25		1,000
	Diamond Offshore Drilling Inc.			14		1,358
	EOG Resources Inc.			21		2,053
	Marathon Oil Corp.			61		1,914
	Schlumberger Ltd.			211		13,708
	Transocean Ltd. (c)			39		3,254
	Weatherford International Ltd. (c)			89		1,596
						24,883
FINANCIALS - 7.8%
	Berkshire Hathaway Inc. - Class A (c)			-		2,282
	Charles Schwab Corp.			384		7,225
	CME Group Inc.			4		1,344
	Goldman Sachs Group Inc.			89		14,993
	Hudson City Bancorp Inc. (e)			179		2,459
	JPMorgan Chase & Co.			189		7,859
	Progressive Corp. (c)			285		5,120
	RenaissanceRe Holdings Ltd.			34		1,807
						43,089
HEALTH CARE - 18.3%
	Aetna Inc.			100		3,154
	Allergan Inc.			90		5,684
	Baxter International Inc.			231		13,567
	Celgene Corp. (c)			277		15,434
	Cerner Corp. (c) (e)			283		23,297
	DaVita Inc. (c)			184		10,802
	Medtronic Inc.			201		8,858
	Merck & Co. Inc.			56		2,039
	Shire Plc - ADR (e)			160		9,398
	Teva Pharmaceutical Industries Ltd. - ADR			90		5,062
	UnitedHealth Group Inc.			140		4,252
						101,547
INDUSTRIALS - 7.6%
	Cummins Inc.			27		1,224
	Danaher Corp. (e)			70		5,287
	Emerson Electric Co.			57		2,407
	FedEx Corp. (e)			71		5,892
	First Solar Inc. (c) (e)			89		12,078
	Illinois Tool Works Inc.			105		5,015
	Iron Mountain Inc. (c)			122		2,777
	Jacobs Engineering Group Inc. (c)			39		1,448
	Monster Worldwide Inc. (c) (e)			132		2,293
	WW Grainger Inc. (e)			36		3,525
						41,946
INFORMATION TECHNOLOGY - 26.8%
	Adobe Systems Inc. (c)			250		9,199
	Apple Inc. (c)			71		15,055
	Broadcom Corp. - Class A (c)			218		6,856
	Cisco Systems Inc. (c)			561		13,418
	eBay Inc. (c)			87		2,053
	Google Inc. - Class A (c)			39		24,426
	International Business Machines Corp.			23		3,024
	Jabil Circuit Inc.			86		1,494
	Juniper Networks Inc. (c) (e)			408		10,884
	Maxim Integrated Products Inc. (e)			133		2,708
	NetApp Inc. (c)			121		4,154
	Nintendo Co. Ltd. - ADR			121		3,605
	Oracle Corp.			376		9,227
	Paychex Inc. (e)			209		6,413
	QUALCOMM Inc.			383		17,699
	Research In Motion Ltd. (c)			89		6,031
	Visa Inc. - Class A			125		10,906
	Yahoo! Inc. (c)			96		1,614
						148,766
MATERIALS - 6.3%
	Allegheny Technologies Inc. (e)			214		9,572
	Cliffs Natural Resources Inc.			84		3,876
	Ecolab Inc.			62		2,765
	Monsanto Co.			130		10,636
	Vulcan Materials Co. (e)			159		8,348
						35,197
TELECOMMUNICATION SERVICES - 1.9%
	American Tower Corp. (c)			250		10,807
	Total Common Stocks (cost $458,039)					521,992
INVESTMENT FUNDS - 3.6%
	iShares Russell 1000 Growth Fund			400		19,940
	Total Investment Funds (cost $19,690)					19,940
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Sigma Finance, Inc. (d) (f) (u)		$	1051		45
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $1,051)					45
SHORT TERM INVESTMENTS - 13.0%
Mutual Funds - 2.7%
	JNL Money Market Fund, 0.07% (a) (h)			14,662		14,662
Securities Lending Collateral - 10.3%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			42,739		42,739
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			14,570		14,539
						57,278
	Total Short Term Investments (cost $71,971)					71,940
Total Investments - 110.6% (cost $550,751)						613,917
Other Assets and Liabilities, Net -  (10.6%)						(58,629)
Total Net Assets - 100%					$	555,288

JNL/Credit Suisse Commodity
Securities Fund * (y)
COMMON STOCKS - 46.1%
ENERGY - 10.6%
	BP Plc			716	$	6,937
	Chevron Corp.			76		5,840
	ConocoPhillips			41		2,088
	Exxon Mobil Corp.			180		12,271
	Occidental Petroleum Corp.			29		2,386
	Petroleo Brasileiro SA - Petrobras - ADR			76		3,610
	Royal Dutch Shell Plc - Class B			135		3,955
	Suncor Energy Inc.			57		2,013
	Total SA			79		5,129
	Other Securities					23,536
						67,765
MATERIALS - 35.5%
	AK Steel Holding Corp.			126		2,692
	Alcoa Inc.			143		2,300
	Allegheny Technologies Inc. (e)			62		2,767
	Anglo American Plc (c)			226		9,916
	ArcelorMittal (e)			153		7,045
	Barrick Gold Corp.			168		6,620
	BASF SE			50		3,133
	BHP Billiton Plc			1,034		33,321
	Cliffs Natural Resources Inc.			93		4,282
	Freeport-McMoRan Copper & Gold Inc.			73		5,872
	Goldcorp Inc.			132		5,203
	International Paper Co.			331		8,876
	JFE Holdings Inc.			107		4,215
	MeadWestvaco Corp.			103		2,942
	Newcrest Mining Ltd.			116		3,674
	Newmont Mining Corp.			75		3,547
	Nippon Steel Corp.			959		3,888
	Nucor Corp.			106		4,952
	OJI Paper Co. Ltd.			848		3,556
	Rio Tinto Ltd. (e)			78		5,221
	Rio Tinto Plc			240		13,163
	Salzgitter AG			30		2,971
	Sino-Forest Corp. (c)			148		2,738
	Stora Enso Oyj - Class R (c) (e)			416		2,915
	Sumitomo Metal Industries Ltd.			605		1,627
	Sumitomo Metal Mining Co. Ltd.			77		1,137
	Svenska Cellulosa AB			532		7,113
	Teck Cominco Ltd. (c)			85		2,971
	United States Steel Corp. (e)			126		6,954
	UPM-Kymmene Oyj			461		5,508
	Vale SA - ADR (e)			288		8,352
	Weyerhaeuser Co.			182		7,838
	Xstrata Plc (c)			269		4,867
	Other Securities					35,661
						227,837
	Total Common Stocks (cost $256,066)					295,602
INVESTMENT FUNDS - 3.3%
	Energy Select Sector SPDR Fund (e)			91		5,211
	Materials Select Sector SPDR Fund (e)			491		16,193
	Total Investment Funds (cost $21,006)					21,404
RIGHTS - 0.0%
	Other Securities					5
	Total Rights (cost $0)					5
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Other Securities					13
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $317)					13
CORPORATE BONDS AND NOTES - 12.9%
FINANCIALS - 12.9%
	BNP Paribas Commodity Linked Note
	0.15%, 11/26/10 (f) (t) (v)		$	5,000		6,594
	0.01%, 01/13/11 (f) (t) (v)			14,000		19,365
	Eksportfinans ASA Commodity Linked Note,
	0.03%, 11/15/10 (f)			20,000		27,408
	Societe Generale Commodity Linked Note
	0.46%, 07/12/10 (f) (t) (v)			13,000		16,085
	0.23%, 01/06/11 (f)			10,000		13,617
	Total Corporate Bonds and Notes (cost $62,000)					83,069
GOVERNMENT AND AGENCY OBLIGATIONS - 20.5%
GOVERNMENT SECURITIES - 6.0%
Sovereign - 6.0%
	Svensk Exportkredit AB Commodity Linked Note
	0.01%, 07/19/10 (f) (i)			20,000		25,408
	0.01%, 03/02/11 (f)			12,000		13,287
						38,695
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED SECURITIES - 14.5%
Federal Farm Credit Bank - 2.0%
	Federal Farm Credit Bank
	0.28%, 06/22/11 (i)			3,000		3,002
	0.53%, 01/13/12 (i)			9,500		9,554
						12,556
Federal Home Loan Bank - 6.8%
	Federal Home Loan Bank
	0.52%, 06/01/10			5,000		5,008
	0.16%, 01/14/11 (i)			15,000		14,992
	0.85%, 01/20/11			5,000		5,012
	0.95%, 02/03/11			5,000		5,016
	1.00%, 02/07/11			3,000		3,007
	1.00%, 02/28/11			3,000		3,010
	0.75%, 03/25/11			7,500		7,495
						43,540
Federal Home Loan Mortgage Corp. - 5.7%
	Federal Home Loan Mortgage Corp.
	1.93%, 02/11/10			7,000		7,011
	0.33%, 01/28/11 (i)			6,858		6,867
	0.33%, 03/09/11 (i)			10,000		10,016
	0.31%, 04/01/11 (i)			10,000		10,014
	0.30%, 04/07/11 (i)			2,500		2,503
						36,411
	Total Government and Agency Obligations (cost $124,543)					131,202
SHORT TERM INVESTMENTS - 25.1%
Federal Home Loan Bank - 0.5%
	Federal Home Loan Bank
	0.36%, 01/21/10			1,000		1,000
	0.18%, 02/16/10			2,000		2,000
						3,000
Federal Home Loan Mortgage Corp. - 9.5%
	Federal Home Loan Mortgage Corp.
	0.24%, 01/25/10			1,500		1,500
	0.13%, 01/28/10			29,000		29,000
	0.12%, 02/02/10			10,000		9,999
	0.13%, 02/16/10			4,000		4,000
	0.26%, 04/27/10			6,000		5,998
	0.22%, 06/14/10			10,000		9,993
						60,490
Federal National Mortgage Association - 2.3%
	Federal National Mortgage Association,
	0.12%, 02/10/10			15,000		14,999
Mutual Funds - 1.5%
	JNL Money Market Fund, 0.07% (a) (h)			9,840		9,840
Securities Lending Collateral - 7.8%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			43,895		43,895
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			6,032		6,019
						49,914
U.S. Treasury Securities - 3.5%
	U.S. Treasury Bill
	0.16%, 04/15/10 (e)		$	10,000		9,998
	0.16%, 04/22/10 (e)			10,000		9,998
	0.35%, 07/15/10 (e)			2,500		2,497
						22,493
	Total Short Term Investments (cost $160,730)					160,736
Total Investments - 107.9% (cost $624,662)						692,031
Other Assets and Liabilities, Net -  (7.9%)						(50,385)
Total Net Assets - 100%					$	641,646
JNL/Credit Suisse Long/Short Fund * (y)
COMMON STOCKS - 126.3%
CONSUMER DISCRETIONARY - 18.7%
	Big Lots Inc. (c) (n)			37	$	1,068
	Darden Restaurants Inc. (n)			45		1,562
	Kohl’s Corp. (c) (n)			29		1,559
	Leggett & Platt Inc. (n)			62		1,258
	Nike Inc. - Class B			20		1,312
	Ross Stores Inc. (n)			21		880
	Starbucks Corp. (c)			72		1,649
	Time Warner Inc. (n)			95		2,770
	Other Securities					4,899
						16,957
CONSUMER STAPLES - 10.5%
	Colgate-Palmolive Co. (n)			21		1,717
	Estee Lauder Cos. Inc. (n)			29		1,417
	PepsiCo Inc. (n)			44		2,650
	Other Securities					3,676
						9,460
ENERGY - 9.2%
	Apache Corp. (n)			29		2,991
	ConocoPhillips (n)			21		1,057
	Exxon Mobil Corp.			29		1,984
	Schlumberger Ltd. (n)			19		1,224
	Other Securities					1,077
						8,333
FINANCIALS - 17.9%
	Capital One Financial Corp. (n)			23		897
	Goldman Sachs Group Inc. (n)			16		2,735
	JPMorgan Chase & Co. (n)			102		4,241
	Public Storage (n)			23		1,897
	State Street Corp. (n)			24		1,062
	Travelers Cos. Inc.			32		1,596
	U.S. Bancorp (n)			44		979
	Other Securities					2,744
						16,151
HEALTH CARE - 14.6%
	Aetna Inc. (n)			37		1,176
	Amgen Inc. (c) (n)			46		2,580
	Humana Inc. (c) (n)			60		2,651
	Medtronic Inc. (n)			31		1,358
	Mylan Inc. (c) (n)			70		1,286
	Waters Corp. (c)			27		1,645
	Other Securities					2,480
						13,176
INDUSTRIALS - 11.5%
	Fluor Corp. (n)			31		1,401
	ITT Corp. (n)			32		1,612
	Lockheed Martin Corp. (n)			11		821
	Raytheon Co.			44		2,261
	United Parcel Service Inc. - Class B			23		1,297
	Other Securities					3,015
						10,407
INFORMATION TECHNOLOGY - 32.8%
	Apple Inc. (c) (n)			10		2,088
	EMC Corp. (c) (n)			102		1,778
	Google Inc. - Class A (c) (n)			4		2,232
	Intel Corp. (n)			111		2,266
	International Business Machines Corp. (n)			12		1,532
	MasterCard Inc. (n)			4		896
	Micron Technology Inc. (c) (n)			210		2,218
	Microsoft Corp. (n)			110		3,341
	NetApp Inc. (c) (n)			41		1,400
	QUALCOMM Inc. (n)			32		1,471
	Texas Instruments Inc. (n)			104		2,713
	VeriSign Inc. (c) (n)			60		1,442
	Western Digital Corp. (c)			43		1,909
	Other Securities					4,420
						29,706
MATERIALS - 3.1%
	Eastman Chemical Co. (n)			29		1,761
	Other Securities					1,077
						2,838
TELECOMMUNICATION SERVICES - 2.0%
	AT&T Inc. (n)			60		1,690
	Other Securities					156
						1,846
UTILITIES - 6.0%
	Exelon Corp. (n)			31		1,515
	Public Service Enterprise Group Inc. (n)			85		2,820
	Other Securities					1,072
						5,407
	Total Common Stocks (cost $109,026)					114,281
SHORT TERM INVESTMENTS - 5.2%
Mutual Funds - 5.2%
	JNL Money Market Fund, 0.07% (a) (h)			4,692		4,692
	Total Short Term Investments (cost $4,692)					4,692
Total Investments - 131.5% (cost $113,718)						118,973
Total Securities Sold Short - (31.7%)
(proceeds $27,298)						(28,666)
Other Assets and Liabilities, Net -  0.2%						146
Total Net Assets - 100%					$	90,453
Securities Sold Short
COMMON STOCKS – 31.7%
CONSUMER DISCRETIONARY - 4.4%
	Lowe’s Cos. Inc.			5	$	115
	McDonald’s Corp.			3		194
	News Corp. - Class A			7		92
	Other Securities					3,524
						3,925
CONSUMER STAPLES - 2.7%
	Altria Group Inc.			6		126
	Coca-Cola Co.			2		137
	Coca-Cola Enterprises Inc.			3		57
	CVS Caremark Corp.			4		142
	Kraft Foods Inc. - Class A			4		117
	Philip Morris International Inc.			5		226
	Wal-Mart Stores Inc.			6		300
	Other Securities					1,338
						2,443
ENERGY - 3.0%
	Anadarko Petroleum Corp.			2		112
	Devon Energy Corp.			2		110
	EOG Resources Inc.			1		97
	Halliburton Co.			3		96
	Marathon Oil Corp.			3		91
	Occidental Petroleum Corp.			2		187
	Other Securities					2,060
						2,753
FINANCIALS - 4.5%
	AFLAC Inc.			2		93
	CME Group Inc.			-		101
	MetLife Inc.			3		110
	Morgan Stanley			5		133
	PNC Financial Services Group Inc.			2		95
	Prudential Financial Inc.			2		95
	Simon Property Group Inc.			1		112
	Other Securities					3,290
						4,029
HEALTH CARE - 3.0%
	Abbott Laboratories			3		184
	Eli Lilly & Co.			3		121
	Express Scripts Inc.			1		86
	Medco Health Solutions Inc.			2		102
	Thermo Fisher Scientific Inc.			2		86
	Other Securities					2,104
						2,683
INDUSTRIALS - 4.7%
	3M Co.			2		165
	Boeing Co.			2		130
	Burlington Northern Santa Fe Corp.			1		99
	Caterpillar Inc.			2		120
	Deere & Co.			2		92
	General Dynamics Corp.			2		102
	Honeywell International Inc.			3		110
	Union Pacific Corp.			2		115
	United Technologies Corp.			3		187
	Other Securities					3,124
						4,244
INFORMATION TECHNOLOGY - 4.2%
	Automatic Data Processing Inc.			2		90
	Corning Inc.			6		106
	Dell Inc.			6		90
	eBay Inc.			4		101
	Hewlett-Packard Co.			4		221
	Other Securities					3,186
						3,794
MATERIALS - 2.5%
	Dow Chemical Co.			4		116
	Freeport-McMoRan Copper & Gold Inc.			2		120
	Monsanto Co.			1		90
	Newmont Mining Corp.			2		90
	Praxair Inc.			1		96
	Other Securities					1,789
						2,301
TELECOMMUNICATION SERVICES - 0.5%
	Verizon Communications Inc.			7		244
	Other Securities					228
						472
UTILITIES - 2.2%
	Dominion Resources Inc.			2		86
	Duke Energy Corp.			5		88
	Southern Co.			3		100
	Other Securities					1,748
						2,022
	Total Securities Sold Short - 31.7%
	(proceeds $27,298)				$	28,666
JNL/Eagle Core Equity Fund
COMMON STOCKS - 91.1%
CONSUMER DISCRETIONARY - 15.3%
	Comcast Corp. - Class A			64	$	1,078
	Home Depot Inc.			49		1,411
	Macy's Inc.			114		1,917
	Omnicom Group Inc. (e)			67		2,610
	Staples Inc.			148		3,639
	Viacom Inc. - Class B (c)			75		2,220
						12,875
CONSUMER STAPLES - 2.0%
	Wal-Mart Stores Inc.			32		1,684
ENERGY - 12.2%
	BP Plc - ADR			42		2,459
	ConocoPhillips			49		2,489
	EOG Resources Inc.			21		2,042
	Exxon Mobil Corp.			20		1,371
	Schlumberger Ltd.			30		1,950
						10,311
FINANCIALS - 13.3%
	Bank of America Corp.			207		3,120
	Goldman Sachs Group Inc.			12		2,088
	JPMorgan Chase & Co.			39		1,645
	MetLife Inc.			35		1,240
	Wells Fargo & Co.			116		3,142
						11,235
HEALTH CARE - 16.5%
	Covidien Plc			33		1,563
	Genzyme Corp. (c)			18		897
	Johnson & Johnson			48		3,122
	Pfizer Inc.			177		3,218
	UnitedHealth Group Inc.			111		3,371
	Zimmer Holdings Inc. (c)			30		1,776
						13,947
INDUSTRIALS - 8.7%
	General Electric Co.			104		1,575
	PACCAR Inc. (e)			46		1,655
	Tyco International Ltd.			78		2,769
	United Technologies Corp.			19		1,329
						7,328
INFORMATION TECHNOLOGY - 21.4%
	Activision Blizzard Inc. (c)			105		1,162
	Apple Inc. (c)			9		1,987
	Applied Materials Inc.			225		3,140
	Autodesk Inc. (c)			71		1,811
	Cisco Systems Inc. (c)			58		1,397
	Electronic Arts Inc. (c)			110		1,953
	EMC Corp. (c)			98		1,715
	Microsoft Corp.			97		2,945
	Nortel Networks Corp. (c)			6		-
	Texas Instruments Inc.			74		1,933
						18,043
TELECOMMUNICATION SERVICES - 1.7%
	Sprint Nextel Corp. (c)			378		1,383
	Total Common Stocks (cost $73,371)					76,806
INVESTMENT FUNDS - 3.0%
	Materials Select Sector SPDR Fund			76		2,519
	Total Investment Funds (cost $2,541)					2,519
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Sigma Finance, Inc. (d) (f) (u)		$	2		-
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $2)					-
SHORT TERM INVESTMENTS - 8.3%
Mutual Funds - 5.6%
	JNL Money Market Fund, 0.07% (a) (h)			4,732		4,732
Securities Lending Collateral - 2.7%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			2,257		2,257
	Total Short Term Investments (cost $6,989)					6,989
Total Investments - 102.4% (cost $82,903)						86,314
Other Assets and Liabilities, Net -  (2.4%)						(2,028)
Total Net Assets - 100%					$	84,286
JNL/Eagle SmallCap Equity Fund
COMMON STOCKS - 100.0%
CONSUMER DISCRETIONARY - 16.3%
	American Axle & Manufacturing Holdings Inc. (c)			348	$	2,792
	Bally Technologies Inc. (c) (e)			156		6,444
	BJ's Restaurants Inc. (c)			258		4,847
	Choice Hotels International Inc.			42		1,329
	Coinstar Inc. (c) (e)			173		4,797
	Genesco Inc. (c)			270		7,420
	Shuffle Master Inc. (c)			446		3,678
	Sotheby's - Class A (e)			152		3,412
	Steak n Shake Co. (c)			5		1,675
	Universal Electronics Inc. (c)			265		6,146
	Vitamin Shoppe Inc. (c)			132		2,945
						45,485
CONSUMER STAPLES - 0.9%
	Herbalife Ltd.			65		2,635
ENERGY - 6.0%
	Lufkin Industries Inc.			110		8,035
	OYO Geospace Corp. (c)			114		4,893
	Whiting Petroleum Corp. (c)			53		3,813
						16,741
FINANCIALS - 6.5%
	Broadpoint Gleacher Securities Inc. (c) (e)			208		927
	Cash America International Inc. (e)			245		8,560
	Duff & Phelps Corp. - Class A			121		2,217
	First Commonwealth Financial Corp.			220		1,025
	optionsXpress Holdings Inc.			99		1,525
	Redwood Trust Inc.			156		2,249
	UMB Financial Corp.			43		1,700
						18,203
HEALTH CARE - 23.0%
	Addus HomeCare Corp. (c)			65		598
	Amedisys Inc. (c) (e)			90		4,348
	American Medical Systems Holdings Inc. (c)			337		6,492
	BioMarin Pharmaceutical Inc. (c) (e)			232		4,369
	Bio-Rad Laboratories Inc. - Class A (c)			26		2,523
	Centene Corp. (c)			151		3,200
	Cubist Pharmaceuticals Inc. (c)			78		1,480
	Cutera Inc. (c)			174		1,479
	Eclipsys Corp. (c)			288		5,332
	Genoptix Inc. (c) (e)			120		4,256
	Icon Plc - ADR (c)			144		3,135
	Lincare Holdings Inc. (c) (e)			95		3,540
	MedAssets Inc. (c)			161		3,415
	Onyx Pharmaceuticals Inc. (c)			94		2,744
	Psychiatric Solutions Inc. (c)			120		2,537
	Regeneron Pharmaceuticals Inc. (c)			87		2,094
	Seattle Genetics Inc. (c)			140		1,423
	SurModics Inc. (c) (e)			47		1,057
	Thoratec Corp. (c) (e)			283		7,609
	Vital Images Inc. (c)			121		1,542
	Vivus Inc. (c) (e)			136		1,253
						64,426
INDUSTRIALS - 15.1%
	A123 Systems Inc. (c) (e)			135		3,023
	Genco Shipping & Trading Ltd. (c) (e)			106		2,368
	Geo Group Inc. (c)			266		5,814
	GrafTech International Ltd. (c) (e)			251		3,898
	Landstar System Inc.			118		4,567
	MasTec Inc. (c)			175		2,182
	Monster Worldwide Inc. (c) (e)			179		3,116
	Northwest Pipe Co. (c)			122		3,276
	Regal-Beloit Corp.			92		4,770
	Ritchie Bros. Auctioneers Inc. (e)			206		4,611
	Waste Connections Inc. (c)			136		4,547
						42,172
INFORMATION TECHNOLOGY - 26.9%
	Ansys Inc. (c) (e)			137		5,944
	Coherent Inc. (c)			173		5,140
	Compellent Technologies Inc. (c) (e)			236		5,362
	DTS Inc. (c)			186		6,352
	EMS Technologies Inc. (c)			242		3,503
	FormFactor Inc. (c)			229		4,988
	Informatica Corp. (c) (e)			213		5,507
	Netezza Corp. (c)			274		2,663
	Novell Inc. (c)			326		1,351
	ON Semiconductor Corp. (c)			609		5,369
	Quality Systems Inc.			65		4,104
	Radiant Systems Inc. (c)			107		1,112
	Rovi Corp. (c)			218		6,934
	Teradyne Inc. (c) (e)			407		4,365
	TIBCO Software Inc. (c) (e)			560		5,389
	Varian Semiconductor Equipment Associates Inc. (c) (e)			197		7,077
						75,160
MATERIALS - 5.3%
	Huntsman Corp.			807		9,106
	Terra Industries Inc.			175		5,632
						14,738
	Total Common Stocks (cost $238,918)					279,560
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Sigma Finance, Inc. (d) (f) (u)		$	1272		54
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $1,272)					54
SHORT TERM INVESTMENTS - 17.1%
Mutual Funds - 1.4%
	JNL Money Market Fund, 0.07% (a) (h)			3,885		3,885
Securities Lending Collateral - 15.7%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			29,593		29,593
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			14,413		14,383
						43,976
	Total Short Term Investments (cost $47,891)					47,861
Total Investments - 117.1% (cost $288,081)						327,475
Other Assets and Liabilities, Net -  (17.1%)						(47,779)
Total Net Assets - 100%					$	279,696
JNL/Franklin Templeton Founding
Strategy Fund (b)
INVESTMENT FUNDS - 100.0%
	JNL/Franklin Templeton Global Growth Fund (76.3%) (a)			37,530	$	286,731
	JNL/Franklin Templeton Income Fund (39.2%) (a)			30,706		285,255
	JNL/Franklin Templeton Mutual Shares Fund (63.0%) (a)			35,062		266,825
						838,811
	Total Investment Funds (cost $986,907)					838,811
Total Investments - 100.0% (cost $986,907)						838,811
Other Assets and Liabilities, Net - 0.0%						(52)
Total Net Assets - 100%					$	838,759
JNL/Franklin Templeton Global Growth Fund
COMMON STOCKS - 93.1%
CONSUMER DISCRETIONARY - 17.5%
	Accor SA			38	$	2,104
	Bayerische Motoren Werke AG			55		2,517
	Chico's FAS Inc. (c)			184		2,587
	Comcast Corp. - Class A			30		506
	Comcast Corp. - Special Class A			307		4,923
	Compagnie Generale des Etablissements Michelin (e)			31		2,355
	Compass Group Plc			141		1,013
	Expedia Inc. (c)			87		2,236
	Harley-Davidson Inc.			64		1,614
	Home Depot Inc.			44		1,281
	Hyundai Motor Co.			40		4,145
	Inditex SA (e)			31		1,916
	Kingfisher Plc			800		2,960
	News Corp. - Class A			473		6,475
	Pearson Plc			201		2,890
	Reed Elsevier NV			171		2,104
	Target Corp.			41		1,977
	Time Warner Cable Inc.			68		2,809
	Time Warner Inc.			114		3,316
	Toyota Motor Corp.			75		3,142
	USS Co. Ltd.			19		1,175
	Viacom Inc. - Class B (c)			92		2,750
	Vivendi SA			183		5,464
	Walt Disney Co.			110		3,549
						65,808
CONSUMER STAPLES - 2.0%
	CVS Caremark Corp.			59		1,915
	Nestle SA			44		2,151
	Premier Foods Plc			1,966		1,133
	Tesco Plc			360		2,489
						7,688
ENERGY - 8.9%
	Aker Solutions ASA			50		654
	BG Group Plc			109		1,969
	BP Plc			520		5,035
	Chevron Corp.			29		2,219
	El Paso Corp.			172		1,691
	ENI SpA			150		3,828
	Gazprom OAO - ADR			61		1,545
	Halliburton Co.			64		1,937
	Royal Dutch Shell Plc - Class B			184		5,388
	SBM Offshore NV			74		1,470
	StatoilHydro ASA			69		1,727
	Total SA			95		6,149
						33,612
FINANCIALS - 12.4%
	ACE Ltd.			38		1,934
	American Express Co.			66		2,661
	Aviva Plc			675		4,338
	AXA SA			69		1,643
	Bank of New York Mellon Corp.			67		1,876
	Cheung Kong Holdings Ltd.			122		1,568
	DBS Group Holdings Ltd.			207		2,252
	HSBC Holdings Plc			288		3,278
	ICICI Bank Ltd. - ADR			39		1,474
	ING Groep NV (c)			300		2,973
	Intesa Sanpaolo SpA (c)			580		2,620
	JPMorgan Chase & Co.			27		1,140
	KB Financial Group Inc. - ADR (c)			44		2,261
	Muenchener Rueckversicherungs AG (e)			19		3,029
	Progressive Corp. (c)			162		2,919
	RenaissanceRe Holdings Ltd.			30		1,616
	Standard Life Plc			310		1,083
	Swire Pacific Ltd.			153		1,850
	Swiss Reinsurance			37		1,810
	Torchmark Corp.			30		1,318
	UBS AG (c)			66		1,029
	UniCredit SpA (c)			571		1,920
						46,592
HEALTH CARE - 16.5%
	Abbott Laboratories			28		1,506
	Amgen Inc. (c)			147		8,324
	Biogen Idec Inc. (c)			18		974
	Boston Scientific Corp. (c)			173		1,558
	Bristol-Myers Squibb Co.			61		1,537
	Covidien Plc			111		5,331
	GlaxoSmithKline Plc			274		5,829
	Lonza Group AG			25		1,768
	Medtronic Inc.			49		2,137
	Merck & Co. Inc.			125		4,573
	Merck KGaA			21		1,916
	Novartis AG			91		4,958
	Pfizer Inc.			329		5,990
	Quest Diagnostics Inc. (e)			64		3,866
	Roche Holding AG			30		5,041
	Sanofi-Aventis SA			84		6,644
						61,952
INDUSTRIALS - 10.2%
	Adecco SA (e)			38		2,088
	BAE Systems Plc			319		1,849
	Brambles Ltd.			263		1,597
	Deutsche Post AG			130		2,515
	Empresa Brasileira de Aeronautica SA - ADR (e)			41		904
	FedEx Corp.			48		4,007
	General Electric Co.			143		2,164
	Koninklijke Philips Electronics NV			88		2,607
	Randstad Holding NV (c)			49		2,478
	Shanghai Electric Group Co. Ltd. (e)			2,294		1,055
	Siemens AG			58		5,331
	Tyco International Ltd.			133		4,760
	United Parcel Service Inc. - Class B			75		4,286
	Wolseley Plc (c)			140		2,820
						38,461
INFORMATION TECHNOLOGY - 16.6%
	Accenture Plc			215		8,937
	Cisco Systems Inc. (c)			184		4,397
	Dell Inc. (c)			131		1,874
	Flextronics International Ltd. (c)			254		1,857
	FUJIFILM Holdings Corp.			49		1,487
	Konica Minolta Holdings Inc.			118		1,211
	Microsoft Corp.			310		9,452
	Nintendo Co. Ltd.			3		693
	Oracle Corp.			368		9,031
	Samsung Electronics Co. Ltd. - GDR			17		5,974
	Samsung Electronics Co. Ltd. - GDR (s) (u)			2		833
	SAP AG			74		3,501
	Seagate Technology Inc.			195		3,543
	Taiwan Semiconductor Manufacturing Co. Ltd. - ADR			417		4,772
	Telefonaktiebolaget LM Ericsson - Class B			189		1,749
	Tyco Electronics Ltd.			117		2,882
						62,193
MATERIALS - 2.0%
	Alcoa Inc.			142		2,289
	CRH Plc			82		2,244
	Svenska Cellulosa AB			112		1,493
	Vale SA - ADR (e)			58		1,434
						7,460
TELECOMMUNICATION SERVICES - 7.0%
	AT&T Inc.			37		1,033
	China Telecom Corp. Ltd. - ADR (e)			15		627
	France Telecom SA			186		4,645
	Singapore Telecommunications Ltd.			2,125		4,684
	Sprint Nextel Corp. (c)			480		1,758
	Telefonica SA			123		3,447
	Telekom Austria AG			160		2,285
	Turkcell Iletisim Hizmet AS - ADR			98		1,705
	Vodafone Group Plc			2,547		5,910
						26,094
	Total Common Stocks (cost $392,309)					349,860
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Sigma Finance, Inc. (d) (f) (u)		$	527		22
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $527)					22
SHORT TERM INVESTMENTS - 8.3%
Mutual Funds - 6.7%
	JNL Money Market Fund, 0.07% (a) (h)			25,086		25,086
Securities Lending Collateral - 1.6%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			2,574		2,574
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			3,290		3,283
						5,857
	Total Short Term Investments (cost $30,950)					30,943
Total Investments - 101.4% (cost $423,786)						380,825
Other Assets and Liabilities, Net -  (1.4%)						(5,101)
Total Net Assets - 100%					$	375,724
JNL/Franklin Templeton Income Fund * (y)
COMMON STOCKS - 29.9%
CONSUMER DISCRETIONARY - 0.8%
	Other Securities				$	5,687
CONSUMER STAPLES - 0.4%
	Other Securities					2,626
ENERGY - 4.9%
	Canadian Oil Sands Trust			295		8,422
	ConocoPhillips			200		10,214
	Exxon Mobil Corp.			200		13,638
	Other Securities					3,438
						35,712
FINANCIALS - 5.3%
	Bank of America Corp.			600		9,036
	Capital One Financial Corp. (e)			163		6,249
	Citigroup Inc.			894		2,961
	iStar Financial Inc. (c) (e)			85		217
	JPMorgan Chase & Co.			150		6,250
	Wells Fargo & Co.			300		8,087
	Other Securities					5,563
						38,363
HEALTH CARE - 2.4%
	Merck & Co. Inc.			340		12,424
	Other Securities					4,958
						17,382
INFORMATION TECHNOLOGY - 1.5%
	Other Securities					10,678
MATERIALS - 0.9%
	Newmont Mining Corp.			100		4,731
	Other Securities					1,969
						6,700
TELECOMMUNICATION SERVICES - 2.0%
	AT&T Inc.			300		8,409
	Other Securities					6,661
						15,070
UTILITIES - 11.7%
	Ameren Corp.			185		5,171
	American Electric Power Co. Inc.			148		5,138
	Dominion Resources Inc.			150		5,838
	Duke Energy Corp.			375		6,454
	FPL Group Inc.			100		5,282
	PG&E Corp.			180		8,037
	Progress Energy Inc.			115		4,716
	Public Service Enterprise Group Inc.			200		6,650
	Southern Co.			200		6,664
	Xcel Energy Inc.			350		7,431
	Other Securities					23,586
						84,967
	Total Common Stocks (cost $235,124)					217,185
PREFERRED STOCKS - 5.7%
CONSUMER DISCRETIONARY - 0.1%
	Other Securities					565
ENERGY - 0.4%
	SandRidge Energy Inc., Convertible Preferred,
	8.50% (p) (t) (v)			13		1,851
	Other Securities					1,041
						2,892
FINANCIALS - 4.8%
	Bank of America Corp., Convertible Preferred,
	7.25%, Series L (p)			8		6,918
	Citigroup Inc. Convertible Preferred, 7.50%, 12/15/12 (c)			90		9,391
	GMAC Inc., 7.00% (callable at 1,000 beginning 12/31/11) (t) (v)			2		1,217
	Goldman Sachs Group Inc., Convertible Preferred
	9.00%, 08/20/10			60		2,703
	12.50%, 04/01/10 (t) (v)			80		3,245
	10.55%, 07/21/10			40		2,481
	Wells Fargo & Co., Convertible Preferred, 7.50%, Series L (p)			3		2,754
	Other Securities					6,238
						34,947
HEALTH CARE - 0.3%
	Tenet Healthcare Corp., 7.00%, 10/01/12			2		2,014
UTILITIES - 0.1%
	FPL Group Inc., 8.38%			20		1,035
	Total Preferred Stocks (cost $59,855)					41,453
WARRANTS - 0.0%
	Other Securities					190
	Total Warrants (cost $106)					190
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Other Securities					55
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $1,285)					55
CORPORATE BONDS AND NOTES - 54.1%
CONSUMER DISCRETIONARY - 9.7%
	Cablevision Systems Corp.
	8.00%, 04/15/12 (e) (k)		$	4,500		4,759
	8.63%, 09/15/17 (t) (v)			1,000		1,041
	CCH II LLC, 13.50%, 11/30/16 (t) (v)			5,134		5,994
	Clear Channel Communications Inc. Term Loan B,
	3.88%, 11/13/15 (i) (u)			8,000		6,600
	Clear Channel Worldwide Holdings Inc.
	9.25%, 12/15/17 (t) (v)			400		408
	9.25%, 12/15/17 (t) (v)			1,600		1,648
	DISH DBS Corp., 7.75%, 05/31/15 (e)			5,000		5,238
	Dollar General Corp.
	10.63%, 07/15/15 (e)			3,771		4,176
	11.88%, 07/15/17			1,373		1,586
	Hertz Corp.
	8.88%, 01/01/14			7,000		7,158
	10.50%, 01/01/16 (e)			1,250		1,334
	Other Securities					30,557
						70,499
CONSUMER STAPLES - 0.6%
	Other Securities					3,917
ENERGY - 11.7%
	Chesapeake Energy Corp.
	9.50%, 02/15/15 (e)			2,500		2,744
	6.50%, 08/15/17 (e)			4,000		3,920
	6.25%, 01/15/18			2,200		2,112
	7.25%, 12/15/18			5,000		5,038
	El Paso Corp.
	12.00%, 12/12/13			1,600		1,876
	7.25%, 06/01/18 (e)			4,100		4,051
	7.75%, 01/15/32			1,000		946
	Petrohawk Energy Corp.
	10.50%, 08/01/14			2,000		2,185
	7.88%, 06/01/15 (e)			3,200		3,232
	SandRidge Energy Inc.
	3.88%, 04/01/14 (i)			2,000		1,793
	9.88%, 05/15/16 (e) (t) (v)			2,600		2,736
	8.00%, 06/01/18 (t) (v)			1,000		982
	Texas Competitive Electric Holdings Co. LLC, Term Loan
	3.73%, 10/24/14 (i) (u)			4,560		3,715
	3.73%, 10/24/14 (i) (u)			1,975		1,605
	3.75%, 10/24/14 (i) (u)			370		301
	Texas Competitive Electric Holdings Co. LLC
	10.25%, 11/01/15 (e) (k)			10,000		8,100
	10.25%, 11/01/15 (k)			3,000		2,430
	10.50%, 11/01/16 (e)			4,907		3,460
	Other Securities					34,294
						85,520
FINANCIALS - 13.1%
	Bank of America Corp.,
	8.13% (callable at 100 beginning 05/15/18) (p)			1,000		963
	Ford Motor Credit Co. LLC
	9.75%, 09/15/10 (k)			2,000		2,064
	9.88%, 08/10/11			1,000		1,047
	7.25%, 10/25/11			2,000		2,020
	3.00%, 01/13/12 (i)			6,000		5,580
	7.50%, 08/01/12 (e)			3,000		3,025
	7.00%, 10/01/13			4,000		3,994
	8.00%, 06/01/14 (e)			2,500		2,567
	8.70%, 10/01/14			5,000		5,227
	12.00%, 05/15/15			3,000		3,479
	GMAC LLC
	7.75%, 01/19/10 (t) (v)			5,000		4,998
	6.88%, 09/15/11 (t) (v)			3,532		3,479
	Host Hotels & Resorts LP
	6.88%, 11/01/14 (e)			1,500		1,509
	6.38%, 03/15/15			3,500		3,430
	6.75%, 06/01/16 (e)			1,000		995
	9.00%, 05/15/17 (e) (t) (v)			600		649
	iStar Financial Inc.
	0.75%, 10/01/12 (i)			4,500		2,481
	8.63%, 06/01/13			5,000		3,200
	JPMorgan Chase & Co.,
	7.90%, (callable at 100 beginning 04/30/18) (p)			11,500		11,862
	Liberty Mutual Group Inc., 10.75%, 06/15/58 (e) (t) (v)			5,000		5,300
	RBS Global & Rexnord LLC, 9.50%, 08/01/14			1,250		1,253
	UPC Germany GmbH
	8.13%, 12/01/17 (e) (t) (v)			2,100		2,124
	8.13%, 12/01/17 (t) (v)	EUR		2,750		4,020
	9.63%, 12/01/19 (t) (v)	EUR		1,500		2,171
	Wells Fargo Capital XIII,
	7.70% (callable at 100 beginning 03/26/13) (p)			900		873
	Wells Fargo Capital XV,
	9.75% (callable at 100 beginning 09/26/13) (p)			5,000		5,350
	Other Securities					11,724
						95,384
HEALTH CARE - 6.7%
	Community Health Systems Inc., 8.88%, 07/15/15			5,000		5,175
	HCA Inc.
	6.38%, 01/15/15			1,500		1,416
	6.50%, 02/15/16			1,500		1,425
	9.25%, 11/15/16			3,500		3,758
	8.50%, 04/15/19 (t) (v)			5,000		5,388
	7.88%, 02/15/20 (t) (v)			6,000		6,248
	Tenet Healthcare Corp.
	7.38%, 02/01/13 (e)			3,000		3,008
	9.25%, 02/01/15 (e) (k)			5,000		5,325
	9.00%, 05/01/15 (t) (v)			3,500		3,780
	10.00%, 05/01/18 (e) (t) (v)			3,500		3,920
	Other Securities					9,451
						48,894
INDUSTRIALS - 2.0%
	RBS Global & Rexnord LLC
	9.50%, 08/01/14 (t) (v)			1,978		1,983
	11.75%, 08/01/16 (e)			1,500		1,485
	Other Securities					11,208
						14,676
INFORMATION TECHNOLOGY - 3.5%
	First Data Corp., Term Loan
	3.00%, 09/24/14 (i) (u)			5		4
	3.00%, 09/24/14 (i) (u)			93		83
	3.00%, 09/24/14 (i) (u)			1,647		1,464
	3.00%, 09/24/14 (i) (u)			215		191
	3.00%, 10/01/14 (i) (u)			195		174
	3.00%, 10/01/14 (i) (u)			1,870		1,666
	3.00%, 10/01/14 (i) (u)			1,845		1,644
	First Data Corp., 9.88%, 09/24/15 (e)			5,500		5,129
	Freescale Semiconductor Inc.,
	Term Loan, 12.50%, 12/15/14 (i) (u)			3,864		3,985
	Freescale Semiconductor Inc., 10.13%, 12/15/16 (e)			850		684
	Other Securities					10,562
						25,586
MATERIALS - 1.3%
	Other Securities					9,748
TELECOMMUNICATION SERVICES - 1.5%
	Other Securities					10,961
UTILITIES - 4.0%
	Dynegy Holdings Inc.
	7.50%, 06/01/15 (e)			10,000		9,350
	7.75%, 06/01/19			2,000		1,735
	Energy Future Holdings Corp.
	10.88%, 11/01/17 (e) (k)			4,000		3,270
	11.25%, 11/01/17			8,847		6,259
	RRI Energy Inc., 7.88%, 06/15/17 (e)			5,000		4,912
	Other Securities					3,712
						29,238
	Total Corporate Bonds and Notes (cost $399,778)					394,423
SHORT TERM INVESTMENTS - 24.2%
Mutual Funds - 12.4%
	JNL Money Market Fund, 0.07% (a) (h)			90,379		90,379
Securities Lending Collateral - 11.8%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			64,754		64,754
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			21,149		21,105
						85,859
	Total Short Term Investments (cost $176,282)					176,238
Total Investments - 113.9% (cost $872,430)						829,544
Other Assets and Liabilities, Net -  (13.9%)						(100,920)
Total Net Assets - 100%					$	728,624
JNL/Franklin Templeton Mutual
Shares Fund * (y)
COMMON STOCKS - 82.9%
CONSUMER DISCRETIONARY - 6.3%
	Mattel Inc.			310	$	6,200
	News Corp. - Class A			680		9,316
	Virgin Media Inc. (e)			263		4,424
	Other Securities					6,824
						26,764
CONSUMER STAPLES - 24.6%
	Altria Group Inc.			432		8,475
	British American Tobacco Plc			261		8,498
	Cadbury Plc			483		6,218
	CVS Caremark Corp.			363		11,676
	Dr. Pepper Snapple Group Inc.			230		6,496
	General Mills Inc.			47		3,332
	Imperial Tobacco Group Plc			270		8,534
	Kraft Foods Inc. - Class A			214		5,807
	Kroger Co.			228		4,680
	Nestle SA			158		7,657
	Pepsi Bottling Group Inc.			108		4,037
	PepsiAmericas Inc.			40		1,167
	Pernod-Ricard SA (e)			65		5,550
	Reynolds American Inc. (e)			57		3,035
	Other Securities					19,128
						104,290
ENERGY - 6.0%
	Marathon Oil Corp.			168		5,234
	Royal Dutch Shell Plc - Class A			172		5,209
	Transocean Ltd. (c)			82		6,812
	Other Securities					8,053
						25,308
FINANCIALS - 12.3%
	ACE Ltd.			73		3,676
	Bank of America Corp.			180		2,706
	Barclays Plc			845		3,766
	Berkshire Hathaway Inc. - Class B (c)			2		7,892
	CIT Group Inc. (c)			36		982
	White Mountains Insurance Group Ltd.			14		4,729
	Other Securities					28,393
						52,144
HEALTH CARE - 4.4%
	Becton Dickinson & Co.			37		2,905
	Novartis AG			71		3,854
	Tenet Healthcare Corp. (c)			787		4,239
	UnitedHealth Group Inc.			164		4,988
	Other Securities					2,873
						18,859
INDUSTRIALS - 7.2%
	A P Moller - Maersk A/S Class B			1		4,164
	Orkla ASA			724		7,122
	Siemens AG (e)			59		5,446
	Tyco International Ltd.			82		2,916
	Other Securities					10,774
						30,422
INFORMATION TECHNOLOGY - 9.0%
	Dell Inc. (c)			353		5,063
	LSI Corp. (c)			747		4,492
	Microsoft Corp.			321		9,796
	Motorola Inc. (c)			455		3,530
	Xerox Corp.			373		3,154
	Other Securities					11,924
						37,959
MATERIALS - 5.7%
	Anglo American Plc (c)			77		3,360
	International Paper Co.			133		3,570
	Linde AG			32		3,902
	MeadWestvaco Corp.			117		3,339
	Weyerhaeuser Co.			196		8,446
	Other Securities					1,388
						24,005
TELECOMMUNICATION SERVICES - 3.5%
	Cable & Wireless Plc			1,672		3,818
	Koninklijke KPN NV			221		3,754
	Vodafone Group Plc			2,135		4,954
	Other Securities					2,380
						14,906
UTILITIES - 3.9%
	E.ON AG			153		6,410
	Exelon Corp.			62		3,019
	Other Securities					7,166
						16,595
	Total Common Stocks (cost $370,343)					351,252
PREFERRED STOCKS - 0.5%
FINANCIALS - 0.5%
	Bank of America Corp., 10.00%			135		2,011
	Total Preferred Stocks (cost $2,024)					2,011
CORPORATE BONDS AND NOTES - 4.2%
CONSUMER DISCRETIONARY - 0.7%
	Other Securities					3,033
ENERGY - 0.9%
	Texas Competitive Electric Holdings Co. LLC, Term Loan
	3.75%, 10/10/14 (i) (u)		$	2,099		1,685
	3.75%, 11/01/15 (i) (u)			698		566
	Texas Competitive Electric Holdings Co. LLC,
	Term Loan B1, 3.75%, 10/10/14 (i) (u)			1,438		1,169
	Texas Competitive Electric Holdings Co. LLC,
	Term Loan B2, 3.75%, 10/10/14 (i) (u)			226		184
	Other Securities					246
						3,850
FINANCIALS - 2.2%
	CIT Group Inc., Term Loan
	9.50%, 01/20/12 (i) (u)			1,541		1,583
	13.00%, 01/20/12 (i) (u)			602		624
	CIT Group Inc.
	7.00%, 05/01/13			176		164
	7.00%, 05/01/14			264		245
	7.00%, 05/01/15			264		236
	7.00%, 05/01/16			440		387
	7.00%, 05/01/17			616		535
	Realogy Corp., Term Loan
	5.35%, 10/10/13 (i) (u)			956		853
	3.28%, 10/10/13 (i) (u)			1,451		1,294
	3.29%, 10/10/13 (i) (u)			3,552		3,168
	13.50%, 10/15/17 (u)			93		99
	Other Securities					285
						9,473
INFORMATION TECHNOLOGY - 0.4%
	Other Securities					1,524
MATERIALS - 0.0%
	Other Securities					57
OTHER EQUITY INTERESTS - 0.0%
	Other Securities					-
	Total Corporate Bonds and Notes (cost $18,586)					17,937
SHORT TERM INVESTMENTS - 15.9%
Mutual Funds - 11.9%
	JNL Money Market Fund, 0.07% (a) (h)			50,580		50,580
Securities Lending Collateral - 4.0%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			16,975		16,975
	Total Short Term Investments (cost $67,555)					67,555
Total Investments - 103.5% (cost $458,508)						438,755
Other Assets and Liabilities, Net -  (3.5%)						(14,901)
Total Net Assets - 100%					$	423,854
JNL/Franklin Templeton Small Cap Value Fund
COMMON STOCKS - 89.8%
CONSUMER DISCRETIONARY - 18.8%
	Autoliv Inc. (e)			55	$	2,386
	Brown Shoe Co. Inc.			132		1,298
	Brunswick Corp.			111		1,407
	Christopher & Banks Corp.			125		952
	DR Horton Inc. (e)			106		1,153
	Drew Industries Inc. (c)			13		275
	Ethan Allen Interiors Inc. (e)			75		1,006
	Fred's Inc.			132		1,346
	Gentex Corp.			101		1,797
	Group 1 Automotive Inc. (c) (e)			67		1,885
	Gymboree Corp. (c) (e)			18		774
	Hooker Furniture Corp.			40		491
	J.C. Penney Co. Inc.			56		1,490
	La-Z-Boy Inc. (c)			139		1,324
	M/I Homes Inc. (c)			84		868
	MDC Holdings Inc.			35		1,074
	Men's Wearhouse Inc.			95		2,002
	Pier 1 Imports Inc. (c)			76		387
	Regis Corp.			57		883
	Saks Inc. (c) (e)			113		742
	Thor Industries Inc.			99		3,112
	Timberland Co. - Class A (c)			23		412
	Tuesday Morning Corp. (c) (e)			166		427
	Warnaco Group Inc. (c)			43		1,810
	West Marine Inc. (c)			120		967
	Winnebago Industries Inc. (c)			79		969
	Zale Corp. (c) (e)			85		231
						31,468
CONSUMER STAPLES - 0.9%
	Casey's General Stores Inc.			49		1,551
ENERGY - 9.6%
	Arch Coal Inc.			23		512
	Atwood Oceanics Inc. (c)			43		1,531
	Bristow Group Inc. (c) (e)			53		2,022
	CARBO Ceramics Inc.			2		136
	Global Industries Ltd. (c) (e)			185		1,319
	Helix Energy Solutions Group Inc. (c)			105		1,230
	Oil States International Inc. (c)			45		1,768
	Overseas Shipholding Group Inc.			25		1,094
	Rowan Cos. Inc. (c)			117		2,653
	Teekay Corp.			38		889
	Tidewater Inc.			20		954
	Unit Corp. (c)			46		1,942
						16,050
FINANCIALS - 12.9%
	American National Insurance Co.			12		1,470
	Arthur J Gallagher & Co. (e)			41		923
	Aspen Insurance Holdings Ltd.			96		2,453
	Chemical Financial Corp.			61		1,441
	Erie Indemnity Co. - Class A			33		1,303
	Montpelier Re Holdings Ltd.			127		2,205
	Old Republic International Corp.			240		2,410
	Peoples Bancorp Inc.			2		22
	Protective Life Corp.			183		3,022
	RLI Corp.			22		1,187
	StanCorp Financial Group Inc.			31		1,221
	TrustCo Bank Corp.			264		1,660
	Validus Holdings Ltd.			59		1,598
	Zenith National Insurance Corp.			25		750
						21,665
HEALTH CARE - 4.3%
	Mettler Toledo International Inc. (c)			19		2,016
	Pharmaceutical Product Development Inc.			75		1,749
	STERIS Corp. (e)			56		1,566
	Teleflex Inc.			29		1,557
	West Pharmaceutical Services Inc.			12		486
						7,374
INDUSTRIALS - 26.4%
	ABM Industries Inc. (e)			92		1,909
	American Woodmark Corp.			55		1,082
	AO Smith Corp.			14		599
	Apogee Enterprises Inc. (e)			102		1,422
	Applied Industrial Technologies Inc.			35		777
	Astec Industries Inc. (c)			31		841
	Brady Corp. - Class A			63		1,883
	Briggs & Stratton Corp. (e)			57		1,066
	Carlisle Cos. Inc. (e)			58		1,987
	Ceradyne Inc. (c) (e)			43		818
	CIRCOR International Inc.			24		615
	CNH Global NV (c)			12		297
	EMCOR Group Inc. (c)			38		1,030
	Franklin Electric Co. Inc. (e)			34		995
	Gardner Denver Inc.			44		1,876
	Genesee & Wyoming Inc. - Class A (c)			55		1,805
	Gibraltar Industries Inc. (c) (e)			137		2,147
	Graco Inc. (e)			63		1,786
	Kansas City Southern (c) (e)			23		756
	Kennametal Inc. (e)			69		1,786
	Lincoln Electric Holdings Inc.			30		1,598
	Mine Safety Appliances Co.			60		1,592
	Mueller Industries Inc.			74		1,828
	Nordson Corp. (e)			35		2,142
	Powell Industries Inc. (c)			7		218
	Roper Industries Inc. (e)			20		1,047
	Simpson Manufacturing Co. Inc. (e)			57		1,538
	SkyWest Inc.			104		1,753
	Timken Co.			21		498
	Trinity Industries Inc. (e)			127		2,213
	Universal Forest Products Inc. (e)			72		2,666
	Wabash National Corp. (c)			163		308
	Watts Water Technologies Inc. (e)			44		1,345
						44,223
INFORMATION TECHNOLOGY - 3.4%
	Benchmark Electronics Inc. (c)			140		2,642
	Cohu Inc.			111		1,548
	Diebold Inc. (e)			8		213
	Omnivision Technologies Inc. (c)			16		225
	Rofin-Sinar Technologies Inc. (c)			46		1,091
						5,719
MATERIALS - 10.7%
	Airgas Inc.			36		1,718
	AptarGroup Inc.			30		1,072
	Cabot Corp.			60		1,561
	Gerdau AmeriSteel Corp.			182		1,504
	Glatfelter			75		910
	Reliance Steel & Aluminum Co.			61		2,632
	RPM International Inc.			117		2,383
	Steel Dynamics Inc.			147		2,610
	United States Steel Corp. (e)			5		276
	Westlake Chemical Corp. (e)			129		3,212
						17,878
UTILITIES - 2.8%
	Atmos Energy Corp.			23		662
	Energen Corp.			36		1,704
	NV Energy Inc.			190		2,352
						4,718
	Total Common Stocks (cost $151,030)					150,646
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Sigma Finance, Inc. (d) (f) (u)		$	636		27
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $636)					27
SHORT TERM INVESTMENTS - 22.8%
Mutual Funds - 10.4%
	JNL Money Market Fund, 0.07% (a) (h)			17,414		17,414
Securities Lending Collateral - 12.4%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			12,512		12,512
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			8,381		8,364
						20,876
	Total Short Term Investments (cost $38,307)					38,290
Total Investments - 112.6% (cost $189,973)						188,963
Other Assets and Liabilities, Net -  (12.6%)						(21,137)
Total Net Assets - 100%					$	167,826

JNL/Goldman Sachs Core Plus Bond Fund
COMMON STOCKS - 0.0%
CONSUMER DISCRETIONARY - 0.0%
	Home Interior Gift Inc. (c) (f) (s) (u)			491	$	5
INFORMATION TECHNOLOGY - 0.0%
	Axiohm Transaction Solutions Inc. (c) (f) (s) (u)			1		-
MATERIALS - 0.0%
	Applied Extrusion Technologies Inc. - Class B (c) (f) (s) (u)			2		4
	Total Common Stocks (cost $379)					9
PREFERRED STOCKS - 0.0%
FINANCIALS - 0.0%
	TCR Holdings - Class B (f)			-		-
	TCR Holdings - Class C (f)			-		-
	TCR Holdings - Class D (f)			1		-
	TCR Holdings - Class E (f)			1		-
	Total Preferred Stocks (cost $0)					-
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 10.8%
	Adjustable Rate Mortgage Trust REMIC,
	3.39%, 04/25/35 (i)		$	375		314
	American Home Mortgage Assets Trust REMIC,
	1.24%, 02/25/47 (i)			3,836		1,788
	Amortizing Residential Collateral Trust REMIC,
	2.03%, 08/25/32 (i)			71		20
	Asset Backed Securities Corp. Home Equity REMIC,
	3.08%, 04/15/33 (i)			49		13
	Banc of America Commercial Mortgage Inc. REMIC
	5.63%, 07/10/46			3,500		3,279
	5.41%, 09/10/47			4,700		4,414
	Banc of America Funding Corp. REMIC
	5.78%, 06/20/36 (i)			2,256		1,428
	5.79%, 10/25/36 (i)			376		368
	0.51%, 06/20/47 (i)			1,700		332
	Banc of America Mortgage Securities Inc. REMIC,
	4.79%, 09/25/35 (i)			1,370		1,109
	BCAP LLC Trust REMIC, 0.87%, 11/25/36 (i)			551		496
	Bear Stearns Adjustable Rate Mortgage Trust REMIC
	3.63%, 04/25/34 (i)			403		355
	4.15%, 11/25/34 (i)			1,167		1,099
	Bear Stearns Alt-A Trust II REMIC, 5.99%, 09/25/47 (i)			3,072		1,705
	Carrington Mortgage Loan Trust REMIC,
	0.46%, 12/25/35 (i)			143		136
	Chase Mortgage Finance Corp. REMIC,
	4.09%, 02/25/37 (i)			545		486
	CIT Mortgage Loan Trust REMIC
	2.65%, 01/25/10 (f) (i) (t) (u)			700		318
	1.92%, 09/25/24 (f) (i) (t) (u)			1,280		480
	1.23%, 10/25/37 (f) (i) (t) (u)			1,082		963
	Citigroup Mortgage Loan Trust Inc. REMIC,
	3.54%, 12/25/35 (i)			1,768		973
	Commercial Mortgage Asset Trust REMIC,
	7.35%, 01/17/32			400		422
	Conseco Financial Corp. REMIC, 7.07%, 01/15/29			217		218
	Countrywide Alternative Loan Trust
	REMIC, 2.04%, 09/25/35 (i)			310		175
	REMIC, 1.92%, 11/25/47 (i)			4,665		1,867
	Countrywide Asset-Backed Certificates REMIC,
	1.48%, 06/25/34 (i)			198		32
	Countrywide Home Equity Loan Trust REMIC,
	0.43%, 05/15/36 (i) (s) (u)			1,271		224
	Countrywide Home Loan Mortgage Pass-Through Trust
	REMIC, 3.44%, 02/19/34 (i)			544		477
	REMIC, 3.62%, 11/20/34 (i)			498		394
	Credit Suisse Mortgage Capital Certificates
	REMIC, 6.50%, 10/25/21 (s) (u)			3,383		2,410
	REMIC, 5.55%, 02/15/39 (i)			3,060		3,014
	REMIC, 5.47%, 09/15/39			6,000		5,139
	Deutsche Bank Alternate Loan Trust REMIC,
	4.91%, 08/25/35 (i)			792		623
	Downey Savings & Loan Association Mortgage Loan Trust
	REMIC, 1.46%, 03/19/46 (i)			517		220
	REMIC, 1.46%, 03/19/47 (i)			517		185
	First Horizon Asset Securities Inc. Pass-Through Trust
	REMIC, 3.01%, 07/25/33 (i)			200		176
	First Union National Bank Commercial Mortgage Trust -
	Interest Only REMIC, 0.63%, 05/17/32 (i) (s) (u)			5,781		86
	GMAC Mortgage Corp. Loan Trust
	REMIC, 7.00%, 09/25/37 (e) (i)			434		197
	REMIC, 7.00%, 09/25/37 (i)			377		198
	GSMPS Mortgage Loan Trust, 0.46%, 02/25/35 (i) (t) (u)			143		114
	GSR Mortgage Loan Trust REMIC, 4.19%, 10/25/35 (i)			696		521
	Harborview Mortgage Loan Trust REMIC
	0.57%, 06/20/35 (i)			1,355		914
	5.91%, 08/19/36 (i)			2,507		1,542
	HFC Home Equity Loan Asset Backed Certificates
	REMIC, 1.43%, 11/20/36 (i)			1,844		1,567
	Impac CMB Trust REMIC, 0.87%, 03/25/35 (i) (s) (u)			181		78
	IndyMac Index Mortgage Loan Trust
	REMIC, 0.85%, 06/25/34 (i)			398		276
	REMIC, 3.92%, 03/25/35 (i)			706		447
	REMIC, 5.15%, 08/25/35 (i)			818		552
	REMIC, 0.44%, 05/25/46 (i)			1,195		617
	JPMorgan Chase & Co. Mortgage Funding Trust
	REMIC, 0.39%, 12/25/36 (i)			3,481		1,639
	JPMorgan Chase Commercial Mortgage Securities Corp.
	REMIC, 4.94%, 08/15/42 (i)			7,000		6,642
	LB-UBS Commercial Mortgage Trust
	6.65%, 11/15/27			6,000		6,242
	REMIC, 5.32%, 09/15/39			1,000		953
	Lehman Mortgage Trust REMIC, 7.25%, 09/25/37			5,536		3,751
	Lehman XS Trust
	REMIC, 0.49%, 02/25/46 (i)			2,505		1,301
	REMIC, 1.08%, 09/25/47 (i)			1,752		956
	Luminent Mortgage Trust REMIC, 0.42%, 05/25/46 (i)			710		314
	MASTR Adjustable Rate Mortgages Trust
	REMIC, 4.08%, 10/25/34 (i)			323		244
	REMIC, 3.94%, 12/25/34 (i)			106		65
	REMIC, 4.84%, 01/25/36 (i)			975		786
	REMIC, 1.74%, 12/25/46 (i)			4,191		1,613
	MASTR Seasoned Securities Trust REMIC,
	4.83%, 10/25/32 (i)			383		330
	Merit Securities Corp. REMIC, 1.73%, 09/28/32 (i) (t) (u)			336		273
	Merrill Lynch Alternative Note Asset Trust
	REMIC, 0.42%, 07/25/37 (i)			869		418
	Mid-State Trust, 7.34%, 07/01/35			239		235
	Morgan Stanley Capital I REMIC, 5.21%, 11/14/42 (i)			1,500		1,479
	Morgan Stanley Mortgage Loan Trust
	REMIC, 3.93%, 08/25/34 (i)			209		155
	REMIC, 5.19%, 03/25/36 (i)			1,931		1,188
	REMIC, 0.35%, 10/25/36 (i)			64		64
	Residential Accredit Loans Inc.
	REMIC, 6.51%, 10/25/37 (i)			4,534		2,109
	REMIC, 1.54%, 01/25/46 (i)			1,458		774
	Residential Funding Mortgage Securities I Inc.
	REMIC, 4.03%, 08/25/35 (i)			787		509
	REMIC, 5.19%, 09/25/35 (i)			1,224		1,006
	Sail Net Interest Margin Notes
	7.75%, 04/27/33 (t) (u)			6		-
	5.50%, 03/27/34 (t) (u)			45		-
	Sigma Finance, Inc. (d) (f) (u)			340		14
	Structured Adjustable Rate Mortgage Loan Trust
	REMIC, 2.96%, 05/25/34 (i)			688		603
	REMIC, 3.25%, 09/25/34 (i)			287		235
	REMIC, 3.05%, 11/25/34 (i)			1,340		1,085
	Structured Asset Mortgage Investments Inc.
	REMIC, 3.59%, 08/25/35 (i)			123		70
	Washington Mutual Alternative Mortgage
	Pass-Through Certificates REMIC, 5.96%, 10/25/36 (i)			137		134
	Washington Mutual Mortgage Pass-Through Certificates
	REMIC, 3.14%, 06/25/34 (i)			932		859
	REMIC, 5.05%, 12/25/35 (i)			1,862		1,702
	REMIC, 5.51%, 09/25/36 (i)			1,587		1,119
	REMIC, 0.46%, 04/25/45 (i)			194		143
	Wells Fargo Alternative Loan Trust REMIC,
	6.53%, 12/28/37 (i)			3,652		2,352
	Wells Fargo Mortgage Backed Securities Trust REMIC,
	5.24%, 04/25/36 (i)			534		468
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $115,883)					84,591
CORPORATE BONDS AND NOTES - 36.1%
CONSUMER DISCRETIONARY - 1.0%
	Comcast Cable Communications Holdings Inc.,
	8.38%, 03/15/13			356		410
	Comcast Corp., 5.50%, 03/15/11			375		392
	Comcast Holdings Corp., 10.63%, 07/15/12			875		1,032
	CSC Holdings Inc.
	7.63%, 04/01/11			250		258
	6.75%, 04/15/12			32		33
	DirecTV Holdings LLC, 5.88%, 10/01/19 (t) (v)			825		839
	DISH DBS Corp., 6.63%, 10/01/14			575		580
	Rainbow National Services LLC, 10.38%, 09/01/14 (t) (u)			80		84
	Reed Elsevier Capital Inc., 8.63%, 01/15/19 (l)			1,125		1,369
	Station Casinos Inc.
	6.50%, 02/01/14 (d) (s) (u)			100		-
	6.88%, 03/01/16 (d) (s) (u)			15		-
	7.75%, 08/15/16 (d) (s) (u)			60		9
	Thomson Reuters Corp., 6.50%, 07/15/18			1,375		1,554
	Whirlpool Corp.
	8.00%, 05/01/12			400		433
	8.60%, 05/01/14 (l)			500		566
						7,559
CONSUMER STAPLES - 1.2%
	Altria Group Inc., 9.70%, 11/10/18			1,350		1,669
	Anheuser-Busch InBev Worldwide Inc.
	7.20%, 01/15/14 (t) (v)			850		964
	4.13%, 01/15/15 (t) (v)			2,125		2,158
	7.75%, 01/15/19 (t) (v)			2,075		2,429
	BAT International Finance Plc, 9.50%, 11/15/18 (t) (v)			1,150		1,460
	CVS Caremark Corp., 5.75%, 06/01/17			975		1,029
						9,709
ENERGY - 2.8%
	Canadian Natural Resources Ltd.
	5.15%, 02/01/13			900		958
	6.25%, 03/15/38			50		52
	Chesapeake Energy Corp.
	6.63%, 01/15/16			275		272
	6.50%, 08/15/17 (e)			275		270
	DCP Midstream LLC, 9.75%, 03/15/19 (t) (v)			1,625		1,999
	Dolphin Energy Ltd., 5.89%, 06/15/19 (t) (v)			832		840
	El Paso Corp.
	7.88%, 06/15/12 (e)			325		337
	7.80%, 08/01/31			33		31
	7.75%, 01/15/32 (e)			515		487
	Energy Transfer Partners LP, 5.95%, 02/01/15			2,000		2,119
	Enterprise Products Operating LLC
	6.65%, 04/15/18			1,500		1,625
	7.03%, 01/15/68			775		711
	Gulf South Pipeline Co. LP, 6.30%, 08/15/17 (t) (v)			1,200		1,249
	Magellan Midstream Partners LP, 6.40%, 07/15/18			1,775		1,886
	Nexen Inc., 6.40%, 05/15/37			1,200		1,209
	ONEOK Partners LP
	6.65%, 10/01/36			1,225		1,249
	6.85%, 10/15/37			375		392
	Petroleos Mexica, 8.00%, 05/03/19			1,940		2,246
	Southern Natural Gas Co., 5.90%, 04/01/17 (k) (t) (v)			120		123
	Suncor Energy Inc., 6.10%, 06/01/18			1,175		1,261
	Williams Cos. Inc.
	7.13%, 09/01/11			50		53
	7.63%, 07/15/19			75		84
	7.88%, 09/01/21			100		115
	8.75%, 03/15/32 (k)			1,075		1,286
	XTO Energy Inc., 6.50%, 12/15/18			1,175		1,343
						22,197
FINANCIALS - 26.7%
	Achmea Hypotheekbank NV, 3.20%, 11/03/14 (t) (v)			5,700		5,689
	African Development Bank, 1.75%, 10/01/12			7,000		6,954
	ANZ Capital Trust,
	4.48% (callable at 100 beginning 01/15/10) (p) (t) (v)			1,075		1,075
	ANZ National International Ltd., 3.25%, 04/02/12 (t) (v)			6,000		6,180
	Bank of America Corp.
	5.42%, 03/15/17			1,300		1,283
	5.75%, 12/01/17			225		230
	7.63%, 06/01/19 (e)			525		607
	Chubb Corp.
	6.50%, 05/15/38			375		413
	6.38%, 03/29/67			825		767
	Citigroup Funding Inc.
	1.88%, 10/22/12			16,800		16,737
	1.88%, 11/15/12			3,300		3,291
	Citigroup Inc.
	4.13%, 02/22/10			1,315		1,320
	2.13%, 04/30/12			1,900		1,920
	1.88%, 05/07/12			3,000		3,016
	6.38%, 08/12/14			1,800		1,884
	5.00%, 09/15/14			2,475		2,386
	CNA Financial Corp., 7.25%, 11/15/23			1,500		1,412
	College Loan Corp. Trust, 2.27%, 03/01/42 (i) (u)			1,000		850
	Credit Agricole SA,
	8.38% (callable at 100 beginning 10/13/19) (p) (t) (v)			750		795
	Discover Bank, 8.70%, 11/18/19 (t) (v)			1,325		1,420
	El Paso Performance-Linked Trust, 7.75%, 07/15/11 (t) (u)			1,290		1,322
	Endurance Specialty Holdings Ltd., 6.15%, 10/15/15			700		731
	Enel Finance International SA, 5.13%, 10/07/19 (t) (v)			1,750		1,761
	Ford Motor Credit Co. LLC, 5.50%, 06/15/11 (i)			600		594
	General Electric Capital Corp.
	2.00%, 09/28/12			8,600		8,611
	2.63%, 12/28/12			6,500		6,620
	GMAC LLC., 1.75%, 10/30/12			9,100		9,041
	GMAC LLC, 6.88%, 09/15/11			3,400		3,364
	HSBC Holdings Plc, 6.80%, 06/01/38			2,650		2,876
	ING Capital Funding Trust III,
	8.44% (callable at 100 beginning 12/31/10) (p)			1,075		924
	International Lease Finance Corp., 4.95%, 02/01/11			700		648
	John Deere Capital Corp., 2.88%, 06/19/12			5,950		6,131
	JPMorgan Chase & Co.
	6.63%, 03/15/12			1,168		1,275
	7.25%, 02/01/18			1,475		1,693
	7.90%, (callable at 100 beginning 04/30/18) (p)			2,050		2,114
	JPMorgan Chase Bank NA, 6.00%, 10/01/17			2,100		2,248
	Landwirtschaftliche Rentenbank
	5.25%, 07/02/12			4,500		4,862
	4.88%, 01/10/14			6,000		6,459
	LeasePlan Corp. NV, 3.00%, 05/07/12 (t) (v)			3,400		3,481
	Merrill Lynch & Co. Inc.
	5.45%, 02/05/13			1,275		1,342
	6.05%, 05/16/16			1,125		1,135
	6.40%, 08/28/17			700		737
	6.88%, 04/25/18			2,125		2,290
	MetLife Capital Trust X, 9.25%, 04/08/38  (t) (v)			500		565
	Morgan Stanley
	5.75%, 08/31/12			675		724
	5.95%, 12/28/17			825		851
	6.63%, 04/01/18			2,775		3,000
	7.30%, 05/13/19			425		477
	5.63%, 09/23/19 (e)			925		932
	MUFG Capital Finance 1 Ltd.,
	6.35% (callable at 100 beginning 07/25/16) (p)			1,310		1,192
	PNC Bank NA, 6.88%, 04/01/18			975		1,035
	PNC Funding Corp., 1.88%, 06/22/11 (e)			5,300		5,354
	ProLogis, 1.88%, 11/15/37			1,075		951
	Resona Preferred Global Securities Cayman Ltd.,
	7.19% (callable at 100 beginning 07/30/15) (p) (t) (v)			1,525		1,247
	Royal Bank of Scotland Group Plc, 1.50%, 03/30/12 (t) (u)			7,500		7,427
	Royal Bank of Scotland Plc
	2.63%, 05/11/12 (t) (v)			6,100		6,187
	4.88%, 08/25/14 (t) (v)			1,850		1,875
	Simon Property Group LP, 10.35%, 04/01/19			1,650		2,073
	SLM Corp., 5.13%, 08/27/12			1,500		1,406
	Svensk Exportkredit AB, 3.25%, 09/16/14			1,300		1,300
	Swiss Re Capital I LP,
	6.85% (callable at 100 beginning on 05/25/16) (p) (t) (v)			1,175		950
	Transatlantic Holdings Inc., 8.00%, 11/30/39			975		993
	Travelers Cos. Inc., 6.25%, 03/15/37 (e)			630		574
	U.S. Bank NA, 4.38%, 02/28/17	EUR		700		964
	UBS AG New Jersey-Credit Linked Note
	(Federative Republic of Brazil, 6.00%, 01/17/17,
	Moody’s Rating Baa3)  (f) (j) (t) (u)	BRL		1,620		424
	US Central Federal Credit Union
	1.25%, 10/19/11 (e) (t) (v)			18,100		18,096
	1.90%, 10/19/12 (t) (v)			1,800		1,799
	Wachovia Corp., 5.50%, 05/01/13			2,925		3,107
	WEA Finance LLC
	7.50%, 06/02/14 (t) (u)			475		535
	7.13%, 04/15/18 (t) (v)			1,125		1,230
	Wells Fargo Capital XIII,
	7.70% (callable at 100 beginning 03/26/13) (p)			1,450		1,406
	Western Corporate Federal Credit Union, 1.75%, 11/02/12			1,900		1,891
	Westpac Banking Corp.
	1.90%, 12/14/12 (t) (u)			4,900		4,860
	4.88%, 11/19/19 (e)			4,325		4,269
	White Mountains Re Group Inc., 6.38%, 03/20/17 (t) (u)			1,275		1,197
	ZFS Finance USA Trust I
	5.88%, 05/09/32 (t) (u)			1,225		992
	6.15%, 12/15/65 (t) (v)			725		660
						209,031
HEALTH CARE - 0.6%
	Boston Scientific Corp.
	4.50%, 01/15/15			950		952
	6.00%, 01/15/20			550		562
	7.00%, 11/15/35 (l)			250		245
	CareFusion Corp., 6.38%, 08/01/19 (t) (v)			1,975		2,114
	HCA Inc., 7.88%, 02/15/20 (e) (t) (v)			500		521
						4,394
INDUSTRIALS - 0.0%
	Radnor Holdings Corp., 11.00%, 03/15/10 (d) (s) (u)			125		-
	Safety-Kleen Services Inc., 9.25%, 06/01/08 (d) (f) (u)			375		-
						-
INFORMATION TECHNOLOGY - 0.3%
	Agilent Technologies Inc., 5.50%, 09/14/15			1,925		2,018
MATERIALS - 0.9%
	Anglo American Capital Plc
	9.38%, 04/08/14 (t) (v)			414		497
	9.38%, 04/08/19 (e) (t) (u)			625		794
	ArcelorMittal, 6.13%, 06/01/18			1,375		1,419
	Dow Chemical Co.
	7.60%, 05/15/14 (l)			1,625		1,849
	5.90%, 02/15/15 (e)			750		806
	International Paper Co., 7.95%, 06/15/18			625		721
	Methanex Corp., 8.75%, 08/15/12			175		182
	Owens Brockway Glass Container Inc., 8.25%, 05/15/13 (e)			375		385
	Smurfit Kappa Treasury Funding Ltd., 7.50%, 11/20/25			225		192
						6,845
TELECOMMUNICATION SERVICES - 1.5%
	AT&T Inc., 6.40%, 05/15/38			1,475		1,516
	France Telecom SA, 7.75%, 03/01/11 (l)			1,975		2,117
	Qwest Capital Funding Inc., 7.25%, 02/15/11			1,075		1,091
	Qwest Communications International Inc.
	7.50%, 02/15/14			255		256
	7.50%, 02/15/14 (k)			80		80
	Qwest Corp., 8.88%, 03/15/12 (e) (k)			125		134
	Sprint Capital Corp., 8.38%, 03/15/12			500		518
	Telecom Italia Capital SA
	6.20%, 07/18/11			975		1,032
	7.00%, 06/04/18			1,175		1,293
	6.00%, 09/30/34			925		875
	UBS Luxembourg SA for OJSC Vimpel Communications,
	8.25%, 05/23/16			100		102
	Verizon Communications Inc., 6.40%, 02/15/38 (e)			1,300		1,359
	Verizon Wireless Capital LLC, 8.50%, 11/15/18 (e)			575		713
	VIP Finance Ireland Ltd. for OJSC Vimpel Communications,
	9.13%, 04/30/13			350		374
	Windstream Corp., 8.63%, 08/01/16			180		183
						11,643
UTILITIES - 1.1%
	AES Corp.
	9.38%, 09/15/10			250		258
	8.88%, 02/15/11			50		52
	Arizona Public Service Co., 8.75%, 03/01/19			1,700		1,981
	Commonwealth Edison Co.
	(insured by AMBAC Assurance Corp.), 5.88%, 02/01/33			550		545
	FirstEnergy Corp., 7.38%, 11/15/31			1,065		1,154
	Nevada Power Co., 7.13%, 03/15/19			1,175		1,312
	NiSource Finance Corp., 10.75%, 03/15/16 (l)			600		739
	Pacific Gas & Electric Co.
	6.05%, 03/01/34			450		470
	5.80%, 03/01/37			300		304
	Progress Energy Inc., 7.05%, 03/15/19			1,275		1,426
	Pugent Sound Energy Inc., 6.97%, 06/01/67			675		595
						8,836
	Total Corporate Bonds and Notes (cost $276,317)					282,232
GOVERNMENT AND AGENCY OBLIGATIONS - 46.3%
GOVERNMENT SECURITIES - 17.3%
Municipals - 0.4%
	State of California Various Purpose Bond
	7.50%, 04/01/34			1,625		1,577
	7.55%, 04/01/39			1,325		1,284
						2,861
Sovereign - 3.8%
	Farmer Mac Guaranteed Notes Trust,
	5.13%, 04/19/17 (t) (v)			2,100		2,189
	Peru Government International Bond, 7.13%, 03/30/19			1,130		1,300
	Province of Ontario, Canada
	4.10%, 06/16/14			1,100		1,148
	4.60%, 05/26/15 (e)			1,475		1,561
	Qatar Government International Bond
	5.15%, 04/09/14			290		304
	5.25%, 01/20/20 (e) (t) (v)			4,350		4,383
	Republic of Argentina, 7.00%, 10/03/15 (f)			1,420		1,216
	Societe Financement de l'Economie Francaise
	3.38%, 05/05/14 (l) (t) (v)			4,500		4,588
	2.88%, 09/22/14 (t) (v)			8,100		8,037
	Tennessee Valley Authority
	4.38%, 06/15/15 (e)			2,400		2,519
	5.98%, 04/01/36			1,250		1,329
	United Mexican States, 6.05%, 01/11/40			1,000		961
						29,535
Treasury Inflation Index Securities - 6.2%
	U.S. Treasury Inflation Indexed Note
	4.25%, 01/15/10 (r)			23,964		30,637
	0.88%, 04/15/10 (r)			6,617		7,557
	1.63%, 01/15/15 (r)			3,464		4,121
	2.00%, 01/15/16 (r)			2,182		2,473
	2.50%, 07/15/16 (r)			3,085		3,730
						48,518
U.S. Treasury Securities - 6.9%
	U.S. Treasury Bond
	4.25%, 11/15/17			10,400		10,900
	5.00%, 05/15/37			4,200		4,461
	4.25%, 05/15/39 (e)			1,100		1,032
	4.38%, 11/15/39			8,900		8,519
	U.S. Treasury Bond Principal Strip
	0.00%, 05/15/20 (j)			3,300		2,130
	0.00%, 08/15/20 (e) (j)			8,400		5,344
	0.00%, 05/15/21 (j)			900		547
	0.00%, 11/15/21 (j)			1,800		1,060
	U.S. Treasury Note
	2.38%, 10/31/14 (e)			8,200		8,111
	2.63%, 12/31/14			1,400		1,396
	4.00%, 08/15/18			5,300		5,413
	3.38%, 11/15/19 (e)			5,700		5,483
						54,396
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED SECURITIES - 29.0%
Federal Farm Credit Bank - 0.6%
	Federal Farm Credit Bank, 4.88%, 12/16/15 (e)			4,600		4,957
Federal Home Loan Bank - 0.3%
	Federal Home Loan Bank, 5.50%, 07/15/36 (o)			2,000		2,052
Federal Home Loan Mortgage Corp. - 8.0%
	Federal Home Loan Mortgage Corp.
	1.75%, 07/27/11 (o)			6,900		6,926
	4.50%, 04/02/14			5,000		5,376
	5.00%, 11/13/14			9,600		10,498
	5.00%, 12/01/35			269		276
	5.50%, 01/01/36			262		275
	5.50%, 01/01/36			48		50
	5.50%, 02/01/36			1		1
	6.00%, 11/01/36			20		22
	6.06%, 01/01/37 (i)			1,726		1,827
	5.50%, 03/01/37			30		31
	5.50%, 04/01/37			11		12
	5.50%, 04/01/37			18		19
	5.50%, 04/01/37			21		22
	5.50%, 04/01/37			73		76
	5.50%, 06/01/37			14		15
	6.00%, 07/01/37			459		487
	6.00%, 09/01/37			25		27
	6.00%, 09/01/37			26		28
	6.00%, 11/01/37			21		23
	5.50%, 12/01/37			110		116
	5.50%, 12/01/37			22		23
	6.50%, 01/01/38			3,562		3,816
	5.50%, 02/01/38			253		265
	6.00%, 02/01/38			27		28
	6.00%, 02/01/38			29		31
	6.00%, 02/01/38			21		22
	5.50%, 04/01/38			88		92
	5.50%, 04/01/38			205		215
	6.00%, 04/01/38			22		23
	5.50%, 05/01/38			23		24
	5.50%, 05/01/38			61		63
	5.50%, 05/01/38			87		91
	6.00%, 05/01/38			3,296		3,498
	5.50%, 06/01/38			93		98
	5.50%, 06/01/38			206		216
	5.50%, 06/01/38			213		224
	5.50%, 06/01/38			12		13
	5.50%, 06/01/38			8		8
	5.50%, 06/01/38			66		69
	5.50%, 06/01/38			23		24
	5.50%, 06/01/38			239		251
	5.50%, 06/01/38			153		161
	5.50%, 06/01/38			162		170
	6.00%, 07/01/38			23		24
	6.00%, 07/01/38			144		153
	6.00%, 07/01/38			146		155
	6.00%, 09/01/38			42		45
	6.00%, 09/01/38			59		62
	5.50%, 10/01/38			75		79
	6.00%, 10/01/38			30		31
	6.00%, 10/01/38			22		23
	6.00%, 11/01/38			22		24
	6.00%, 11/01/38			3,404		3,616
	6.00%, 12/01/38			850		903
	6.50%, 12/01/38			1,869		2,002
	6.00%, 02/01/39			22		24
	5.50%, 04/01/39			13		14
	5.50%, 04/01/39			10		11
	5.00%, 05/01/39			578		593
	5.00%, 05/01/39			59		61
	5.00%, 06/01/39			1,058		1,086
	5.00%, 06/01/39			773		794
	5.00%, 06/01/39			1,452		1,490
	5.00%, 07/01/39			394		405
	5.00%, 07/01/39			293		301
	5.00%, 07/01/39			622		639
	5.00%, 07/01/39			44		45
	5.00%, 07/01/39			49		50
	5.00%, 08/01/39			81		83
	5.00%, 08/01/39			36		37
	5.00%, 08/01/39			90		93
	5.00%, 08/01/39			49		51
	5.00%, 08/01/39			58		59
	5.00%, 08/01/39			31		32
	4.50%, 09/01/39			2,964		2,960
	4.50%, 09/01/39			994		992
	5.00%, 09/01/39			53		54
	5.00%, 09/01/39			44		45
	5.00%, 09/01/39			124		127
	5.00%, 09/01/39			155		159
	5.00%, 09/01/39			157		162
	5.00%, 09/01/39			112		115
	5.00%, 09/01/39			146		150
	5.00%, 09/01/39			66		68
	5.00%, 09/01/39			41		42
	5.00%, 09/01/39			2,972		3,051
	4.50%, 10/01/39			200		200
	4.50%, 10/01/39			100		100
	5.00%, 10/01/39			145		149
	5.00%, 10/01/39			1,199		1,231
	5.00%, 10/01/39			1,494		1,534
	5.00%, 10/01/39			698		716
	5.00%, 11/01/39			1,595		1,637
	REMIC, 1,156.50%, 06/15/21 (s) (u)			-		1
	REMIC, 0.00%, 08/15/35
	(0.00% until LIBOR reaches 6.50%) (i) (s) (u)			15		14
	REMIC, 0.00%, 09/15/35
	(0.00% until LIBOR reaches 7.00%) (i) (s) (u)			453		369
	REMIC, 0.00%, 04/15/37
	(0.00% until LIBOR reaches 6.75%) (i) (s) (u)			212		164
						62,557
Federal National Mortgage Association - 16.0%
	Federal National Mortgage Association
	5.00%, 01/01/18			560		590
	5.00%, 02/01/18			610		643
	5.00%, 02/01/18			383		404
	5.00%, 03/01/18			771		816
	5.00%, 04/01/18			599		631
	5.00%, 05/01/18			644		679
	5.00%, 06/01/18			535		564
	5.00%, 06/01/18			742		782
	5.00%, 06/01/18			738		777
	5.00%, 06/01/18			692		730
	5.00%, 06/01/18			746		786
	5.00%, 06/01/18			634		668
	5.00%, 06/01/18			571		601
	5.00%, 06/01/18			638		672
	4.50%, 07/01/18			213		222
	4.50%, 07/01/18			282		294
	4.50%, 07/01/18			257		268
	5.00%, 07/01/18			552		582
	4.50%, 07/01/18			313		327
	4.50%, 09/01/18			301		313
	4.50%, 09/01/18			194		202
	4.50%, 09/01/18			470		490
	4.50%, 09/01/18			468		488
	4.50%, 09/01/18			221		230
	4.50%, 09/01/18			226		236
	4.50%, 09/01/18			206		215
	5.00%, 09/01/18			480		506
	5.00%, 09/01/18			751		792
	4.50%, 09/01/18			262		274
	5.00%, 10/01/18			490		517
	5.00%, 10/01/18			686		722
	5.00%, 10/01/18			526		554
	4.50%, 10/10/18			217		226
	4.50%, 10/10/18			232		241
	4.50%, 10/10/18			176		183
	5.00%, 11/01/18			558		587
	5.00%, 11/01/18			683		719
	5.00%, 11/01/18			537		566
	5.00%, 11/01/18			769		811
	5.00%, 11/01/18			583		614
	5.00%, 12/01/18			494		521
	5.00%, 12/01/18			461		486
	5.00%, 12/01/18			250		263
	5.00%, 12/01/18			515		542
	5.00%, 01/01/19			813		857
	5.00%, 01/01/19			606		638
	5.00%, 02/01/19			585		615
	6.50%, 02/01/19			2		2
	5.00%, 03/01/19			703		741
	5.00%, 03/01/19			537		565
	5.00%, 04/01/19			540		568
	5.00%, 04/01/19			504		531
	5.00%, 04/01/19			544		572
	5.00%, 04/01/19			509		535
	4.50%, 05/01/19			241		251
	4.50%, 05/01/19			91		95
	4.50%, 05/01/19			266		277
	4.50%, 05/01/19			236		245
	4.50%, 05/01/19			242		252
	4.50%, 05/01/19			199		207
	4.50%, 05/01/19			195		203
	4.50%, 05/01/19			295		307
	4.50%, 05/01/19			256		266
	4.50%, 05/01/19			234		243
	4.50%, 05/01/19			334		347
	4.50%, 05/01/19			341		356
	4.50%, 05/01/19			239		248
	5.00%, 05/01/19			602		633
	6.00%, 09/01/19			1,191		1,276
	0.00%, 10/09/19 (j)			350		190
	6.00%, 12/01/20			1,485		1,592
	4.00%, 02/01/21, TBA (g)			10,000		10,058
	6.00%, 11/01/21			474		507
	6.00%, 12/01/21			31		33
	6.00%, 02/01/23			557		595
	5.50%, 09/01/23			1,206		1,278
	5.50%, 09/01/23			1,616		1,713
	5.50%, 10/01/23			507		537
	6.00%, 12/01/23			102		109
	5.50%, 04/01/29			1		1
	8.00%, 08/01/29			2		2
	8.00%, 04/01/30			7		8
	8.00%, 07/01/30			12		14
	8.00%, 08/01/30			4		4
	8.00%, 10/01/30			53		61
	8.00%, 01/01/31			14		16
	8.00%, 01/01/31			13		15
	8.00%, 02/01/31			6		7
	6.00%, 03/01/32			-		1
	6.00%, 07/01/32			12		13
	7.00%, 07/01/32			20		22
	5.50%, 04/01/33			2,838		2,983
	6.00%, 05/01/33			45		48
	5.00%, 07/01/33			9		9
	5.50%, 07/01/33			11		11
	5.50%, 07/01/33			1,659		1,744
	5.00%, 08/01/33			147		151
	5.00%, 08/01/33			13		13
	5.00%, 08/01/33			38		39
	5.00%, 09/01/33			11		11
	5.50%, 09/01/33			16		17
	5.00%, 11/01/33			12		13
	5.50%, 12/01/33			10		11
	6.00%, 12/01/33			20		21
	5.00%, 01/01/34			12		13
	5.50%, 02/01/34			21		22
	5.50%, 04/01/34			3		3
	5.50%, 05/01/34			44		46
	5.50%, 06/01/34			-		1
	5.50%, 08/01/34			32		34
	5.50%, 10/01/34			2		2
	5.50%, 12/01/34			219		230
	6.00%, 12/01/34			5		5
	6.00%, 02/01/35			142		152
	5.00%, 03/01/35			17		18
	5.00%, 04/01/35			26		27
	5.50%, 04/01/35			77		81
	6.00%, 04/01/35			1,125		1,203
	6.00%, 04/01/35			27		29
	5.00%, 05/01/35			15		16
	5.00%, 06/01/35			305		314
	5.00%, 07/01/35			91		94
	5.00%, 07/01/35			26		27
	5.00%, 07/01/35			22		23
	5.00%, 07/01/35			27		27
	5.00%, 07/01/35			24		25
	5.00%, 07/01/35			22		22
	5.50%, 07/01/35			59		62
	5.50%, 07/01/35			1		1
	6.00%, 07/01/35			176		188
	5.00%, 08/01/35			16		16
	5.00%, 08/01/35			18		18
	5.00%, 08/01/35			27		28
	5.00%, 08/01/35			27		28
	5.50%, 08/01/35			3		4
	6.00%, 08/01/35			151		161
	6.00%, 08/01/35			2		2
	5.00%, 09/01/35			28		29
	5.00%, 09/01/35			25		26
	5.00%, 09/01/35			220		226
	5.00%, 09/01/35			32		33
	5.00%, 09/01/35			645		663
	5.00%, 09/01/35			188		193
	5.00%, 09/01/35			25		25
	5.00%, 09/01/35			29		30
	5.00%, 09/01/35			28		29
	5.00%, 09/01/35			20		21
	5.50%, 09/01/35			27		29
	5.00%, 10/01/35			27		28
	5.00%, 10/01/35			27		28
	2.52%, 11/01/35 (i)			200		201
	5.00%, 11/01/35			19		20
	5.00%, 11/01/35			30		31
	6.00%, 11/01/35			116		123
	6.00%, 11/01/35			136		144
	6.00%, 11/01/35			276		293
	5.50%, 12/01/35			16		17
	6.00%, 01/01/36			510		543
	5.00%, 02/01/36			353		363
	5.50%, 02/01/36			1		1
	6.00%, 02/01/36			45		47
	6.00%, 03/01/36			61		65
	6.00%, 03/01/36			1		2
	6.00%, 03/01/36			99		106
	6.00%, 04/01/36			118		125
	2.90%, 05/01/36 (i)			1,210		1,263
	3.03%, 05/01/36 (i)			1,255		1,310
	6.00%, 06/01/36			52		55
	2.93%, 07/01/36 (i)			1,188		1,241
	5.00%, 07/01/36			30		31
	3.02%, 08/01/36 (i)			1,289		1,346
	6.00%, 08/01/36			87		93
	2.89%, 09/01/36 (i)			1,271		1,333
	6.00%, 09/01/36			19		20
	6.00%, 10/01/36			18		19
	6.00%, 10/01/36			456		484
	6.00%, 11/01/36			122		130
	5.50%, 12/01/36			10		10
	5.50%, 12/01/36			19		20
	4.50%, 01/01/37, TBA (g)			12,000		11,978
	5.50%, 01/01/37			4		4
	5.50%, 02/01/37			3		4
	5.50%, 02/01/37			11		12
	5.50%, 02/01/37			11		12
	5.50%, 03/01/37			14		15
	5.50%, 03/01/37			4		5
	5.50%, 03/01/37			7		8
	5.50%, 03/01/37			7		8
	5.50%, 03/01/37			18		19
	5.50%, 03/01/37			5		5
	5.50%, 04/01/37			10		10
	5.50%, 04/01/37			18		19
	5.50%, 04/01/37			69		73
	5.50%, 04/01/37			12		13
	5.50%, 04/01/37			22		23
	5.50%, 04/01/37			1		1
	5.50%, 04/01/37			6		6
	5.50%, 05/01/37			7		7
	5.50%, 05/01/37			44		47
	5.50%, 05/01/37			8		8
	5.50%, 06/01/37			49		51
	5.50%, 06/01/37			2		2
	6.00%, 06/01/37			46		49
	5.50%, 07/01/37			15		16
	5.50%, 07/01/37			19		20
	5.50%, 07/01/37			10		11
	5.50%, 08/01/37			37		39
	6.00%, 08/01/37			19		21
	6.00%, 08/01/37			22		23
	6.00%, 08/01/37			31		33
	6.00%, 09/01/37			86		91
	6.00%, 10/01/37			17		18
	6.00%, 10/01/37			20		21
	6.00%, 10/01/37			159		169
	5.50%, 11/01/37			17		18
	6.00%, 11/01/37			19		20
	6.00%, 11/01/37			38		40
	6.00%, 11/01/37			852		904
	5.50%, 12/01/37			1		1
	6.00%, 12/01/37			89		95
	6.00%, 12/01/37			130		138
	5.50%, 02/01/38			2		3
	6.00%, 02/01/38			142		151
	5.50%, 03/01/38			11		12
	5.50%, 03/01/38			17		17
	5.50%, 03/01/38			7		7
	5.50%, 03/01/38			6		6
	6.00%, 03/01/38			89		94
	5.50%, 04/01/38			107		112
	5.50%, 04/01/38			26		27
	5.50%, 04/01/38			52		55
	5.50%, 05/01/38			15		15
	5.50%, 05/01/38			10		10
	5.50%, 05/01/38			28		30
	5.50%, 05/01/38			14		14
	5.50%, 05/01/38			1		1
	5.50%, 05/01/38			2		3
	6.00%, 05/01/38			43		46
	5.50%, 06/01/38			1		1
	5.50%, 06/01/38			32		33
	5.50%, 06/01/38			3		3
	5.50%, 06/01/38			1		1
	5.50%, 06/01/38			34		36
	5.50%, 06/01/38			5		6
	5.50%, 06/01/38			2		2
	6.00%, 06/01/38			24		26
	6.00%, 06/01/38			38		40
	5.50%, 07/01/38			1		1
	5.50%, 07/01/38			1		1
	5.50%, 07/01/38			2		2
	5.50%, 07/01/38			4		4
	5.50%, 07/01/38			2		2
	5.50%, 07/01/38			8		8
	5.50%, 07/01/38			27		28
	6.00%, 07/01/38			86		91
	5.50%, 08/01/38			7		7
	5.50%, 08/01/38			4		4
	5.50%, 08/01/38			49		51
	6.00%, 08/01/38			35		37
	6.00%, 08/01/38			165		175
	5.50%, 09/01/38			7		7
	5.50%, 09/01/38			37		38
	5.50%, 09/01/38			17		17
	5.50%, 09/01/38			40		41
	5.50%, 09/01/38			17		18
	5.50%, 10/01/38			4		4
	5.50%, 10/01/38			52		54
	5.50%, 10/01/38			1		1
	6.00%, 10/01/38			30		31
	6.00%, 10/01/38			56		59
	6.00%, 11/01/38			31		33
	5.50%, 12/01/38			43		45
	5.50%, 12/01/38			19		20
	5.50%, 12/01/38			4		4
	5.50%, 12/01/38			11		12
	5.50%, 12/01/38			37		39
	5.50%, 12/01/38			15		16
	5.50%, 01/01/39			17		18
	5.50%, 01/01/39			10		10
	5.50%, 01/01/39			54		57
	5.50%, 01/01/39			31		33
	5.50%, 01/01/39			266		278
	5.50%, 01/01/39			41		43
	5.50%, 01/01/39			29		30
	5.50%, 01/01/39			66		69
	5.50%, 01/01/39			330		346
	5.50%, 01/01/39			19		20
	5.00%, 02/01/39			181		186
	5.00%, 02/01/39			38		39
	5.00%, 02/01/39			54		55
	5.00%, 02/01/39			42		44
	5.50%, 02/01/39			32		34
	5.50%, 02/01/39			41		43
	5.50%, 02/01/39			15		16
	5.50%, 02/01/39			33		35
	5.50%, 02/01/39			46		48
	6.00%, 02/01/39			11,473		12,170
	5.00%, 03/01/39			187		192
	5.00%, 03/01/39			40		41
	5.50%, 03/01/39			26		27
	5.50%, 03/01/39			133		139
	5.50%, 03/01/39			51		53
	5.00%, 04/01/39			25		25
	5.00%, 04/01/39			48		49
	5.50%, 04/01/39			24		25
	5.00%, 05/01/39			97		100
	5.00%, 05/01/39			49		50
	5.00%, 05/01/39			53		54
	5.00%, 05/01/39			56		58
	5.00%, 05/01/39			155		159
	5.00%, 05/01/39			97		100
	5.00%, 05/01/39			38		39
	5.00%, 05/01/39			31		32
	5.00%, 05/01/39			83		85
	5.00%, 05/01/39			65		67
	5.00%, 05/01/39			28		28
	5.00%, 05/01/39			91		93
	5.00%, 05/01/39			96		99
	5.00%, 05/01/39			75		77
	4.50%, 06/01/39			77		77
	4.50%, 06/01/39			75		75
	4.50%, 06/01/39			37		37
	5.00%, 06/01/39			55		57
	5.00%, 06/01/39			130		134
	5.00%, 06/01/39			51		53
	4.50%, 07/01/39			57		57
	4.50%, 07/01/39			36		36
	4.50%, 07/01/39			64		64
	4.50%, 07/01/39			68		68
	5.00%, 07/01/39			96		98
	5.00%, 07/01/39			51		52
	5.00%, 07/01/39			39		40
	5.00%, 07/01/39			99		101
	5.00%, 07/01/39			49		51
	5.00%, 07/01/39			100		102
	5.00%, 07/01/39			49		50
	5.00%, 07/01/39			64		66
	5.00%, 07/01/39			49		51
	5.00%, 07/01/39			62		64
	5.00%, 07/01/39			97		100
	4.50%, 08/01/39			51		51
	4.50%, 08/01/39			66		66
	4.50%, 08/01/39			35		35
	4.50%, 08/01/39			37		37
	4.50%, 08/01/39			42		42
	4.50%, 08/01/39			50		50
	4.50%, 08/01/39			98		97
	5.00%, 08/01/39			31		32
	5.00%, 08/01/39			49		51
	5.00%, 08/01/39			42		43
	5.00%, 08/01/39			22		23
	5.00%, 08/01/39			47		48
	5.00%, 08/01/39			51		53
	4.50%, 09/01/39			397		396
	5.00%, 09/01/39			43		44
	5.00%, 09/01/39			68		70
	5.00%, 09/01/39			592		609
	5.00%, 09/01/39			113		116
	5.00%, 09/01/39			24		24
	4.50%, 10/01/39			694		694
	4.50%, 10/01/39			696		696
	4.50%, 10/01/39			298		298
	5.00%, 10/01/39			80		82
	5.00%, 10/01/39			395		406
	5.00%, 10/01/39			78		80
	5.00%, 10/01/39			2,090		2,147
	5.00%, 10/01/39			99		102
	5.00%, 10/01/39			594		611
	5.00%, 10/01/39			100		102
	5.00%, 10/01/39			583		599
	5.00%, 10/01/39			934		960
	5.00%, 10/01/39			694		713
	5.00%, 11/01/39			697		716
	6.00%, 12/31/49			245		261
	REMIC, 10.40%, 04/25/19			1		1
	REMIC, 0.00%, 05/25/35
	(0.00% until LIBOR reaches 7.00%) (i) (s) (u)			95		91
	REMIC, 0.00%, 09/25/36
	(0.00% until LIBOR reaches 7.00%) (i) (s) (u)			159		138
	REMIC, 0.68%, 02/25/37 (i)			4,795		4,696
	REMIC, 1.07%, 04/25/48 (i)			4,445		4,433
	REMIC, 1.17%, 07/25/48 (i)			4,890		4,887
						125,586
Government National Mortgage Association - 4.1%
	Government National Mortgage Association
	6.00%, 01/24/32, TBA (g)			9,000		9,509
	5.50%, 01/01/34, TBA (g)			1,000		1,048
	6.00%, 10/15/38			36		38
	6.00%, 11/15/38			61		65
	6.00%, 11/15/38			74		78
	6.00%, 12/15/38			22		23
	6.00%, 12/15/38			35		37
	6.00%, 12/15/38			643		681
	6.00%, 12/15/38			27		29
	6.00%, 12/15/38			581		615
	6.00%, 12/15/38			112		119
	6.00%, 01/15/39			95		100
	6.00%, 01/15/39			53		56
	6.00%, 01/15/39			24		26
	6.00%, 01/15/39			96		102
	6.00%, 01/15/39			37		39
	6.00%, 01/15/39			41		44
	6.00%, 01/15/39			101		107
	6.00%, 01/15/39			26		28
	6.00%, 01/15/39			41		44
	5.00%, 04/15/39			24		25
	5.00%, 04/15/39			31		31
	5.00%, 04/15/39			777		800
	5.00%, 04/15/39			150		155
	5.00%, 04/15/39			111		114
	5.00%, 05/15/39			58		60
	5.00%, 05/15/39			196		202
	5.00%, 05/15/39			968		997
	5.00%, 05/15/39			58		60
	5.00%, 05/15/39			304		313
	5.00%, 05/15/39			63		65
	5.00%, 05/15/39			42		43
	5.00%, 05/15/39			68		70
	5.00%, 05/15/39			69		71
	5.00%, 05/15/39			690		711
	5.00%, 05/15/39			788		812
	5.00%, 05/15/39			75		77
	5.00%, 05/15/39			164		169
	5.00%, 05/15/39			158		163
	5.00%, 05/15/39			111		114
	5.00%, 05/15/39			26		26
	5.00%, 05/15/39			38		39
	5.00%, 05/15/39			62		64
	5.00%, 05/15/39			286		294
	5.00%, 05/15/39			45		46
	4.50%, 06/15/39			197		198
	4.50%, 06/15/39			297		298
	5.00%, 06/15/39			265		273
	5.00%, 06/15/39			280		288
	5.00%, 06/15/39			477		491
	5.00%, 06/15/39			63		65
	5.00%, 06/15/39			166		171
	5.00%, 06/15/39			84		87
	5.00%, 06/15/39			169		174
	5.00%, 06/15/39			669		689
	5.00%, 06/15/39			1,277		1,316
	5.00%, 07/15/39			102		105
	5.00%, 07/15/39			990		1,020
	5.00%, 07/15/39			95		98
	5.00%, 07/15/39			27		28
	4.50%, 09/15/39			397		398
	5.00%, 09/15/39			1,986		2,046
	5.00%, 09/15/39			228		235
	5.00%, 09/15/39			25		26
	5.00%, 09/15/39			597		615
	5.00%, 09/15/39			80		83
	5.00%, 09/15/39			55		57
	5.00%, 09/15/39			281		290
	5.00%, 09/15/39			326		336
	4.50%, 10/15/39			100		100
	4.50%, 10/15/39			100		100
	4.50%, 10/15/39			199		200
	5.00%, 10/15/39			698		719
	5.00%, 10/15/39			498		514
	5.00%, 10/15/39			299		308
	5.00%, 10/15/39			298		307
	5.00%, 10/15/39			497		512
	5.00%, 10/15/39			1,196		1,233
	5.00%, 10/15/39			499		514
	5.00%, 10/15/39			199		205
						32,408
	Total Government and Agency Obligations (cost $358,852)					362,870
SHORT TERM INVESTMENTS - 14.4%
Mutual Funds - 10.1%
	JNL Money Market Fund, 0.07% (a) (h)			79,220		79,220
Securities Lending Collateral - 4.3%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			28,509		28,509
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			5,248		5,237
						33,746
	Total Short Term Investments (cost $112,977)					112,966
Total Investments - 107.6% (cost $864,408)						842,668
Total Forward Sales Commitments - (2.1%)
(proceeds $16,699)						(16,410)
Other Assets and Liabilities, Net -  (5.5%)						(43,269)
Total Net Assets - 100%					$	782,989
Forward Sales Commitments - 2.1%
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED SECURITIES - 2.1%
Federal Home Loan Mortgage Corp. - 1.3%
	Federal Home Loan Mortgage Corp.,
	5.00%, 01/01/34		$	10,000	$	10,253
Federal National Mortgage Association - 0.8%
	Federal National Mortgage Association,
	5.00%, 01/01/34			6,000		6,157
	Total Forward Sales Commitments - 2.1%
	(proceeds $16,699)				$	16,410
JNL/Goldman Sachs Emerging
Markets Debt Fund
CORPORATE BONDS AND NOTES - 8.2%
FINANCIALS - 8.2%
	Barclays Bank Plc Credit Linked Note (Indonesia
	Government, 10.00%, 07/15/17,
	Moody's rating Ba2) (f)	IDR		32,000,000	$	3,669
	Hongkong & Shanghai Banking Corp. Credit Linked
	Note (Indonesia Government, 10.75%, 05/15/16,
	Moody rating Ba2) (f)	IDR		36,000,000		4,092
	HSBC Regs Credit Linked Note
	(Indonesia Government, 10.00%, 07/15/17,
	Moody rating Ba2) (f)	IDR		10,000,000		1,144
	JPMorgan Chase & Co., 6.00%, 10/10/12 (f)	PHP		40,000		888
	JPMorgan Chase Bank Credit Linked Note
	(Indonesia Government, 10.00%, 07/15/17,
	Moody rating Ba2) (f)			$4,580		4,719
	Red Arrow International Leasing Plc,
	8.38%, 06/30/12	RUB		41,672		1,351
	Total Corporate Bonds and Notes (cost $14,327)					15,863
GOVERNMENT AND AGENCY OBLIGATIONS - 66.1%
GOVERNMENT SECURITIES - 66.1%
Sovereign - 66.1%
	Brazil Notas do Tesouro Nacional
	Series F, 10.00%, 01/01/17	BRL		30,000		15,540
	Colombia Government International Bond,
	9.85%, 06/28/27	COP		13,500,000		7,663
	Egypt Government Bond, 8.75%, 07/18/12	EGP		5,000		908
	Hungary Government International Bond,
	6.00%, 11/24/23	HUF		2,130,000		9,484
	Israel Government International Bond,
	7.00%, 04/29/11	ILS		12,900		3,771
	Malaysian Government Bond,
	3.74%, 02/27/15	MYR		28,100		8,175
	Mexican Bonos
	9.00%, 12/20/12	MXN		150,000		12,169
	10.00%, 12/05/24	MXN		70,000		6,144
	Peru Government International Bond
	9.91%, 05/05/15	PEN		8,500		3,708
	8.20%, 08/12/26	PEN		7,257		3,007
	Poland Government Bond, 5.25%, 04/25/13	PLN		38,475		13,409
	Poland Government Inflation Indexed Bond,
	3.00%, 08/24/16 (r)	PLN		3,470		1,374
	Republic of South Africa Government Bond,
	13.50%, 09/15/15	ZAR		103,160		17,188
	Republic of Turkey, 10.00%, 02/15/12	TRY		14,267		11,959
	Thailand Government Bond, 3.63%, 05/22/15	THB		241,700		7,231
	Turkey Government International Bond,
	16.00%, 03/07/12	TRY		2,500		1,875
	Uruguay Government International Inflation Index Bond
	5.00%, 09/14/18 (r)	UYU		37,606		2,830
	3.70%, 06/26/37 (r)	UYU		19,183		1,239
	Total Government and Agency Obligations (cost $124,091)					127,674
SHORT TERM INVESTMENTS - 22.8%
Mutual Funds - 22.8%
	JNL Money Market Fund, 0.07% (a) (h)			44,096		44,096
	Total Short Term Investments (cost $44,096)					44,096
Total Investments - 97.1% (cost $182,514)						187,633
Other Assets and Liabilities, Net - 2.9%						5,610
Total Net Assets - 100%					$	193,243
JNL/Goldman Sachs Mid Cap Value Fund
COMMON STOCKS - 96.5%
CONSUMER DISCRETIONARY - 13.6%
	CBS Corp. - Class B			269	$	3,778
	DISH Network Corp.			304		6,306
	Fossil Inc. (c)			23		775
	Harley-Davidson Inc.			127		3,201
	J.C. Penney Co. Inc.			84		2,243
	Johnson Controls Inc.			84		2,289
	Liberty Media Corp. - Interactive (c)			240		2,604
	Mohawk Industries Inc. (c)			24		1,129
	Newell Rubbermaid Inc.			291		4,369
	NVR Inc. (c)			5		3,308
	Snap-On Inc.			36		1,529
	Starwood Hotels & Resorts Worldwide Inc.			60		2,181
	TJX Cos. Inc.			53		1,933
	Urban Outfitters Inc. (c) (e)			74		2,590
						38,235
CONSUMER STAPLES - 2.8%
	BJ's Wholesale Club Inc. (c) (e)			59		1,925
	Clorox Co.			23		1,377
	JM Smucker Co.			27		1,646
	Molson Coors Brewing Co. (e)			66		2,993
						7,941
ENERGY - 11.8%
	Atlas Energy Inc.			79		2,385
	Concho Resources Inc. (c)			70		3,160
	Core Laboratories NV (e)			15		1,743
	Dril-Quip Inc. (c) (e)			70		3,974
	EXCO Resources Inc.			128		2,727
	Newfield Exploration Co. (c)			169		8,151
	Oil States International Inc. (c)			83		3,277
	Range Resources Corp.			56		2,788
	Whiting Petroleum Corp. (c)			67		4,805
						33,010
FINANCIALS - 27.5%
	Alexandria Real Estate Equities Inc. (e)			36		2,334
	Arch Capital Group Ltd. (c) (e)			34		2,468
	AvalonBay Communities Inc.			30		2,439
	Boston Properties Inc.			50		3,331
	Comerica Inc.			116		3,422
	Digital Realty Trust Inc. (e)			48		2,413
	Douglas Emmett Inc. (e)			126		1,789
	Essex Property Trust Inc. (e)			26		2,174
	Everest Re Group Ltd.			45		3,887
	First Horizon National Corp. (c)			101		1,349
	Genworth Financial Inc. - Class A (c)			176		1,997
	Hartford Financial Services Group Inc.			164		3,815
	Host Hotels & Resorts Inc. (c) (e)			287		3,354
	Invesco Ltd.			229		5,381
	Janus Capital Group Inc. (e)			139		1,869
	Lincoln National Corp.			56		1,397
	M&T Bank Corp. (e)			32		2,173
	Marsh & McLennan Cos. Inc.			179		3,957
	Marshall & Ilsley Corp.			371		2,020
	Principal Financial Group Inc.			178		4,280
	Progressive Corp. (c)			198		3,562
	Raymond James Financial Inc. (e)			80		1,913
	SLM Corp. (c)			329		3,709
	SunTrust Banks Inc.			150		3,038
	WR Berkley Corp.			236		5,815
	XL Capital Ltd. - Class A			181		3,323
						77,209
HEALTH CARE - 5.1%
	Aetna Inc.			130		4,122
	Biogen Idec Inc. (c)			40		2,149
	CR Bard Inc.			35		2,751
	Edwards Lifesciences Corp. (c)			27		2,362
	Kinetic Concepts Inc. (c)			73		2,759
						14,143
INDUSTRIALS - 8.4%
	BE Aerospace Inc. (c) (e)			73		1,726
	Cooper Industries Plc			45		1,900
	Corrections Corp. of America (c)			93		2,287
	Cummins Inc.			60		2,761
	Eaton Corp.			61		3,898
	Fluor Corp.			2		110
	Kansas City Southern (c)			60		2,006
	Parker Hannifin Corp.			52		2,790
	Pentair Inc.			52		1,690
	Republic Services Inc. - Class A			91		2,571
	Ryder System Inc.			46		1,894
						23,633
INFORMATION TECHNOLOGY - 7.5%
	Amphenol Corp. - Class A			41		1,906
	CommScope Inc. (c)			162		4,307
	IAC/InterActiveCorp. (c) (e)			195		3,994
	Lexmark International Inc. (c)			44		1,141
	ON Semiconductor Corp. (c)			314		2,765
	Parametric Technology Corp. (c)			191		3,123
	QLogic Corp. (c)			102		1,918
	Teradyne Inc. (c) (e)			171		1,835
						20,989
MATERIALS - 8.8%
	Cliffs Natural Resources Inc.			98		4,504
	FMC Corp. (e)			48		2,692
	Huntsman Corp.			364		4,111
	International Paper Co.			119		3,198
	Pactiv Corp. (c)			75		1,814
	Terra Industries Inc.			40		1,278
	United States Steel Corp. (e)			81		4,439
	Vulcan Materials Co. (e)			51		2,683
						24,719
TELECOMMUNICATION SERVICES - 2.5%
	CenturyTel Inc.			58		2,089
	Clearwire Corp. (c) (e)			199		1,348
	Sprint Nextel Corp. (c)			972		3,559
						6,996
UTILITIES - 8.5%
	Alliant Energy Corp.			47		1,408
	CMS Energy Corp. (e)			195		3,055
	DPL Inc.			115		3,178
	Edison International			109		3,783
	FirstEnergy Corp.			44		2,026
	Great Plains Energy Inc.			36		689
	Northeast Utilities			30		768
	NV Energy Inc.			133		1,650
	Pinnacle West Capital Corp.			24		881
	PPL Corp.			141		4,540
	SCANA Corp.			27		1,036
	Xcel Energy Inc.			44		943
						23,957
	Total Common Stocks (cost $243,249)					270,832
RIGHTS - 0.0%
	Clearwire Corp. (c) (e)			49		20
	Total Rights (cost $0)					20
NON-U.S. GOVERNMENT AGENCY
ASSET-BACKED SECURITIES - 0.0%
	Sigma Finance, Inc. (d) (f) (u)			398		17
	Total Non-U.S. Government Agency
	Asset-Backed Securities (cost $398)					17
SHORT TERM INVESTMENTS - 14.2%
Mutual Funds - 4.3%
	JNL Money Market Fund, 0.07% (a) (h)			12,147		12,147
Securities Lending Collateral - 9.9%
	Securities Lending Cash Collateral Fund LLC,
	0.16% (a) (h)			21,876		21,876
	Securities Lending Liquidating Fund LLC, 0.36% (a) (h)			5,796		5,784
						27,660
	Total Short Term Investments (cost $39,819)					39,807
Total Investments - 110.7% (cost $283,466)						310,676
Other Assets and Liabilities, Net -  (10.7%)						(29,951)
Total Net Assets - 100%					$	280,725
JNL/Ivy Asset Strategy Fund
COMMON STOCKS - 72.0%
CONSUMER DISCRETIONARY - 12.3%
	Belle International Holdings Ltd.			333	$	386
	Ctrip.com International Ltd. - ADR (c)			12		884
	Hyundai Motor Co.			60		6,190
	Li & Fung Ltd.			488		2,017
	New Oriental Education & Technology Group - ADR (c)			13		972
	Sands China Ltd. (c)			3,763		4,591
	Starwood Hotels & Resorts Worldwide Inc.			53		1,931
	Wynn Macau Ltd. (c)			1,008		1,241
	Wynn Resorts Ltd.			104		6,059
						24,271
CONSUMER STAPLES - 2.7%
	BRF - Brasil Foods SA - ADR			13		691
	Hengan International Group Co. Ltd.			196		1,451
	Philip Morris International Inc.			42		2,005
	Reckitt Benckiser Group Plc			22		1,165
						5,312
ENERGY - 8.1%
	China Petroleum & Chemical Corp.			2,094		1,845
	China Shenhua Energy Co. Ltd.			481		2,335
	CNOOC Ltd.			2,012		3,134
	Halliburton Co.			114		3,423
	Schlumberger Ltd.			36		2,346
	SeaDrill Ltd.			75		1,927
	Weatherford International Ltd. (c)			57		1,021
						16,031
FINANCIALS - 17.8%
	Annaly Capital Management Inc.			169		2,936
	Banco Santander Brasil SA - ADR			150		2,084
	China Life Insurance Co. Ltd.			1,838		8,993
	China Overseas Land & Investment Ltd.			544		1,140
	China Resources Land Ltd.			242		545
	Hong Kong Exchanges & Clearing Ltd.			174		3,099
	Industrial & Commercial Bank of China			10,620		8,746
	Renhe Commercial Holdings Co. Ltd.			6,374		1,442
	Standard Chartered Plc			237		6,028
						35,013
HEALTH CARE - 0.5%
	Vertex Pharmaceuticals Inc. (c)			22		943
INDUSTRIALS - 3.3%
	A P Moller - Maersk A/S Class B			-		2,329
	Alstom SA			22		1,570
	China Communications Constructions Co. Ltd.			219		208
	Komatsu Ltd.			112		2,335
						6,442
INFORMATION TECHNOLOGY - 19.6%
	Accenture Plc			53		2,187
	Acer Inc.			72		216
	Apple Inc. (c)			20		4,122
	Lenovo Group Ltd.			1,248		773
	MediaTek Inc.			211		3,666
	PMC - Sierra Inc. (c)			184		1,592
	QUALCOMM Inc.			126		5,850
	Redecard SA			118		1,960
	Samsung Electronics Co. Ltd.			7		4,800
	Taiwan Semiconductor Manufacturing Co. Ltd.			4,716		9,505
	Visa Inc. - Class A			45		3,931
						38,602
MATERIALS - 6.9%
	ArcelorMittal			67		3,112
	Holcim Ltd.			3		202
	Lafarge SA			2		191
	Monsanto Co.			32		2,583
	Southern Copper Corp.			74		2,419
	Vale SA - ADR			48		1,393
	Xstrata Plc (c)			200		3,611
						13,511
TELECOMMUNICATION SERVICES - 0.8%
	MTN Group Ltd.			104		1,673
	Total Common Stocks (cost $137,966)					141,798
PRECIOUS METALS - 15.3%
	Gold Bullion			27,530		30,151
	Total Bullion (cost $30,251)					30,151
SHORT TERM INVESTMENTS - 14.8%
Mutual Funds - 14.8%
	JNL Money Market Fund, 0.07% (a) (h)			29,184		29,184
	Total Short Term Investments (cost $29,184)					29,184
Total Investments - 102.1% (cost $197,401)						201,133
Other Assets and Liabilities, Net -  (2.1%)						(4,156)
Total Net Assets - 100%					$	196,977
JNL/JPMorgan International Value Fund
COMMON STOCKS - 97.0%
CONSUMER DISCRETIONARY - 8.1%
	Aisin Seiki Co. Ltd.			151	$	4,373
	Compagnie Generale des Etablissements Michelin			90		6,915
	Daimler AG (e)			152		8,113
	GKN Plc (c)			2,098		3,964
	InterContinental Hotels Group Plc			337		4,860
	Nissan Motor Co. Ltd. (c)			1,235		10,860
	Sodexo SA (e)			91		5,181
						44,266
CONSUMER STAPLES - 4.7%
	Anheuser-Busch InBev NV			124		6,495
	Imperial Tobacco Group Plc			126		3,991
	Japan Tobacco Inc.			1		2,685
	Koninklijke Ahold NV			309		4,111
	Unilever NV (e)			256		8,349
						25,631
ENERGY - 11.9%
	BG Group Plc			313		5,662
	BP Plc			1,731		16,776
	Cairn Energy Plc (c)			1,131		6,076
	China Petroleum & Chemical Corp.			2,478		2,183
	China Shenhua Energy Co. Ltd.			1,015		4,927
	OMV AG			94		4,139
	Royal Dutch Shell Plc - Class A			565		17,176
	Santos Ltd.			297		3,751
	Total SA			74		4,804
						65,494
FINANCIALS - 27.8%
	African Bank Investments Ltd.			964		3,901
	Banco Bilbao Vizcaya Argentaria SA			430		7,849
	Banco Santander SA			992		16,439
	Barclays Plc			1,042		4,644
	BNP Paribas			132		10,557
	China Bank Ltd.			664		3,973
	China Merchants Bank Co. Ltd. (e)			2,349		6,110
	China Resources Land Ltd.			1,304		2,935
	HSBC Holdings Plc			1,343		15,372
	ING Groep NV (c)			1,096		10,846
	KBC Groep NV (c)			99		4,304
	Legal & General Group Plc			2,751		3,581
	Lloyds Banking Group Plc (c)			8,019		6,564
	Mitsui Fudosan Co. Ltd.			265		4,483
	Muenchener Rueckversicherungs AG			72		11,171
	Societe Generale - Class A			141		9,923
	Sumitomo Mitsui Financial Group Inc.			226		6,499
	UBS AG (c)			306		4,743
	UniCredit SpA (c)			2,744		9,221
	Zurich Financial Services AG			43		9,448
						152,563
HEALTH CARE - 4.4%
	Bayer AG			66		5,333
	GlaxoSmithKline Plc			320		6,823
	Sanofi-Aventis SA			156		12,297
						24,453
INDUSTRIALS - 13.0%
	Cie de Saint-Gobain			122		6,660
	Cookson Group Plc (c)			511		3,481
	Hamburger Hafen und Logistik AG (e)			68		2,624
	Hutchison Whampoa Ltd.			773		5,288
	Kubota Corp.			681		6,251
	Marubeni Corp.			976		5,394
	Mitsubishi Corp.			331		8,256
	Mitsubishi Electric Corp. (c)			881		6,547
	Mitsui & Co. Ltd.			402		5,708
	Nippon Sheet Glass Co. Ltd.			370		1,061
	Nippon Yusen KK			1,292		3,981
	Ruukki Group Oyj (c)			743		2,282
	Siemens AG (e)			106		9,797
	Sumitomo Heavy Industries Ltd.			808		4,092
						71,422
INFORMATION TECHNOLOGY - 7.7%
	ASML Holding NV			176		6,051
	FUJIFILM Holdings Corp.			261		7,880
	Fujitsu Ltd.			851		5,524
	HON HAI Precision Industry Co. Ltd.			1,326		6,202
	Nintendo Co. Ltd.			22		5,352
	Nokia Oyj			357		4,574
	Ricoh Co. Ltd. (e)			468		6,709
						42,292
MATERIALS - 6.3%
	ArcelorMittal (e)			208		9,605
	First Quantum Minerals Ltd.			31		2,389
	Lafarge SA			75		6,233
	Lanxess AG			168		6,359
	Petropavlovsk Plc			160		2,645
	Rhodia SA (c)			306		5,528
	Sidenor Steel Production & Manufacturing Co. SA (c)			315		2,039
						34,798
TELECOMMUNICATION SERVICES - 6.1%
	BT Group Plc			1,879		4,097
	Cable & Wireless Plc			1,305		2,981
	Koninklijke KPN NV			488		8,286
	Telekomunikasi Indonesia Tbk PT			3,371		3,356
	Vodafone Group Plc			6,497		15,077
						33,797
UTILITIES - 7.0%
	Centrica Plc			1,335		6,060
	GDF Suez (e)			277		12,039
	National Grid Plc			808		8,860
	Perusahaan Gas Negara PT			7,784		3,216
	Snam Rete Gas SpA			1,698		8,453
						38,628
	Total Common Stocks (cost $509,229)					533,344
NON-U.S. GOVERNMENT AGENCY