Scout Investments Awarded $400 Million Variable Annuity Mandate From Jackson
National Life Insurance Company
KANSAS CITY, Mo. -- May 15, 2014
Scout Investments, Inc. (Scout) announced today that it has been awarded a
$400 million mandate from Jackson National Life Insurance Company^®
(Jackson^®) for the newly launched JNL/Scout Unconstrained Bond Fund.
The JNL/Scout Unconstrained Bond Fund (the Fund) is managed by lead portfolio
manager Mark Egan and the seasoned team of Tom Fink, Todd Thompson and Steve
Vincent. The team has managed unconstrained fixed income accounts for over 16
years and was among the first in the industry to do so. The Fund is available
within Jackson’s Elite Access^® Variable Annuity investment platform (Elite
Elite Access is a variable annuity designed to offer portfolio diversification
through the use of both traditional and alternative classes in a tax-efficient
“We are pleased to partner with Jackson to bring our unconstrained fixed
income investing expertise toits variable annuity platform, and we look
forward to a successful long-term relationship,” said Andy Iseman, chief
executive officer of Scout Investments.
The objective of the JNL/Scout Unconstrained Bond Fund is to maximize total
return consistent with the preservation of capital. The Fund seeks to maximize
total return by systematically identifying and evaluating relative value
opportunities throughout all sectors of the fixed income market.
The team employs a disciplined investment philosophy and process to select the
“best ideas” for the Fund. They may use derivative instruments, such as
futures, options and credit default swaps, to manage risk and gain exposure.
Given its strategy, the Fund is not managed against a benchmark.
“We feel confident that the new partnership with Scout will further Jackson’s
goal of helping investors address their individual financial goals,” said
Alison Reed, senior vice president of Product and Investment Management for
Jackson National Life Distributors, the distribution arm of Jackson. “Through
access to high-quality money managers within Elite Access, advisors are
provided with a combination of traditional and alternative asset classes to
help create a diversified investment portfolio.”
Additionally, Scout recently assembled an experienced team of sales
professionals dedicated to supporting Scout’s variable insurance partners.
“In the last two years, we have seen significant growth in our sub-advisory
business within both equity and fixed income capabilities. Building out a
dedicated team solidifies our commitment to provide top-tier support to this
channel,” said Toby Cromwell, senior vice president, head of global
institutional distribution at Scout.
^1 Diversification does not assure a profit or protect against loss in a
declining market. Portfolios that have a greater percentage of alternatives
may have greater risks, especially those including arbitrage, currency,
leveraging and commodities. This additional risk can offset the benefit of
diversification. Tax deferral offers no additional value if an annuity is used
to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower
cost in other investment products. It also may not be available if the annuity
is owned by a “nonnatural person” such as a corporation or certain types of
About Scout Investments
Scout Investments, Inc., a global asset manager headquartered in Kansas City,
Mo., manages more than$32 billion in equity and fixed income investment
strategies for institutions and individual investors. Scout is the investment
subsidiary of UMB Financial Corporation (NASDAQ: UMBF). Please visit
scoutinv.com for more information on our firm and our products.
SCOUT, SCOUT INVESTMENTS, SEE FURTHER, the Scout design, and the Ribbon design
– Reg. U.S. Tm. Off.
NOT FDIC INSURED – NO BANK GUARANTEE – MAY LOSE VALUE
Jackson is a leading provider of retirement solutions for industry
professionals and their clients. The company offers a diverse range of
products including variable, fixed and fixed index annuities designed for
tax-efficient accumulation and distribution of retirement income for retail
customers, and fixed income products for institutional investors. Jackson
subsidiaries and affiliates provide specialized asset management and retail
brokerage services. With $191.5 billion in assets*, Jackson prides itself on
product innovation, sound corporate risk management practices and strategic
technology initiatives. Focused on thought leadership and education, the
company develops proprietary research, industry insights and financial
representative training on retirement planning and alternative investment
strategies. Jackson is also dedicated to corporate social responsibility and
supports charities focused on helping children and seniors in the communities
where its employees live and work. For more information, visit
Jackson is the marketing name for Jackson National Life Insurance Company
(Home Office: Lansing, Michigan), Jackson National Life Insurance Company of
New York® (Home Office: Purchase, New York) and Jackson National Life
*Jackson has $191.5 billion in total IFRS assets and $178.5 billion in IFRS
policy liabilities primarily set aside to pay future policyowner benefits (as
of 12/31/13). International Financial Reporting Standards (IFRS) is a
principles-based set of international accounting standards indicating how
transactions and other events should be reported in financial statements. IFRS
is issued by the International Accounting Standards Board in an effort to
increase global comparability of financial statements and results. IFRS is
used by Jackson’s parent company.
Jackson National Life Insurance Company is an indirect subsidiary of
Prudential plc, a company incorporated in England and Wales. Prudential plc
and its affiliated companies constitute one of the world's leading financial
services groups. It provides insurance and financial services through its
subsidiaries and affiliates throughout the world. It has been in existence for
165 years and has $733.6 billion in assets under management (as of December
31, 2013). 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.
Before investing, investors should carefully consider the investment
objectives, risks, charges and expenses of the variable annuity and its
underlying investment options. The current contract prospectus and underlying
fund prospectuses, which are contained in the same document, provide this and
other important information. Please contact your representative or the Company
to obtain the prospectuses. Please read the prospectuses carefully before
investing or sending money.
Although asset allocation among different asset categories generally limits
risk and exposure to any one category, the risk remains that management may
favor an asset category that performs poorly relative to the other asset
categories. The subaccounts expect to invest in positions that emphasize
alternatives or nontraditional asset classes or investment strategies and, as
a result, are subject to the risk factors of those asset classes. Some of
those risks include general economic risk, geopolitical risk, commodity-price
volatility, counterparty and settlement risk, currency risk, derivatives risk,
emerging markets risk, foreign securities risk, high-yield bond exposure,
noninvestment-grade bond exposure commonly known as “junk bonds,” index
investing risk, industry concentration risk, leveraging risk, market risk,
prepayment risk, liquidity risk, real estate investment risk, sector risk,
short sales risk, temporary defensive positions and large cash positions.
Variable annuities are long-term, tax-deferred investments designed for
retirement, involve investment risks and may lose value. Earnings are taxable
as ordinary income when distributed and may be subject to a 10% additional tax
if withdrawn before age 59½.
Tax deferral offers no additional value if an annuity is used to fund a
qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in
other investment products. It also may not be available if the annuity is
owned by a “non-natural person” such as a corporation or certain types of
Diversification does not assure a profit or protect against loss in a
The investment companies (subaccounts) offered in Elite Access are registered
as investment companies under the Investment Company Act of 1940, as amended
(“1940 Act”), and their shares are registered under the Securities Act of
1933, as amended. There are many differences among 1940 Act registered
subaccounts and unregistered hedge funds, including but not limited to
liquidity, restrictions on leverage and diversification, fund reporting and
transparency, fees, and availability.
International investing involves special risks, such as exposure to
potentially adverse local political and economic developments, nationalization
and exchange controls, potentially lower liquidity and higher volatility,
possible problems arising from accounting, disclosure, settlement and
regulatory practices that differ from U.S. standards, and the chance that
fluctuations in foreign exchange rates will decrease the investment’s value.
The latest income date allowed is age 95, which is the required age to
annuitize or take a lump sum. Please see the prospectus for important
information regarding the annuitization of a contract.
The standard death benefit is equal to contract value on the date of the claim
and does not include any additional guarantees.
Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson
National Life Insurance Company (Home Office: Lansing, Michigan) and in New
York (VA650NY, VA660NY) by Jackson National Life Insurance Company of New York
(Home Office: Purchase, New York). Variable annuities are distributed by
Jackson National Life Distributors LLC, member FINRA. May not be available in
all states, and state variations apply. This product has limitations and
restrictions, including withdrawal charges and excess interest adjustments
(interest rate adjustments in New York) where applicable. Jackson issues other
variable annuities with similar features, benefits, limitations and charges.
Discuss them with your representative or contact Jackson for more information.
This portfolio could lose money if the issuer or guarantor of a fixed-income
security, or the counterparty to a derivatives contract, repurchase agreement
or a loan of portfolio securities, is unable or unwilling to make timely
principal and/or interest payments, or to otherwise honor its obligations.
This portfolios invests in derivative instruments such as, swaps, options,
futures contracts, forward currency contracts, indexed securities and
asset-backed securities, to be announced (TBAs) securities, interest rate
swaps, credit default swaps, and certain exchange-traded funds, involves
risks, including liquidity, interest rate, market, currency, counterparty,
credit and management risks, mispricing or improper valuation, low correlation
with the underlying asset, rate, or index and could lose more than originally
invested. Fixed income prices respond to changing economic environments
including interest rate changes and credit risk perceptions of individual
issuers which can negatively affect the price and income level.
Investments in foreign securities are subject to adverse fluctuations in
foreign currency values, political, less publicly available information,
social and economic developments and possible imposition of foreign
withholding taxes on income payable on the securities. They may be more
volatile and less liquid than U.S. markets.
Successful use of futures and forwards is dependent upon the sub advisors’
skill and experience with those instruments and include risks including:
imperfect correlation, potentially unlimited losses, inability to predict
movements or direction, counterparty default, and margin requirements
resulting in a disadvantageous sale.
A portfolio that invests in high-yield bonds, lower-rated bonds, and unrated
securities are broadly referred to as “junk bonds,” and are considered below
“investment-grade” by national ratings agencies are subject to the increased
risk of an issuer’s inability to meet principal and interest payment
When interest rates increase, fixed-income securities generally will decline
in value. Long-term fixed-income securities normally have more price
volatility than short-term fixed-income securities. Some equity securities may
also be sensitive to interest rate changes. A security’s value may decline for
reasons that directly relate to the issuer, such as management performance,
corporate governance, financial leverage and reduced demand for the issuer’s
goods or services.
Reverse repurchase agreements, loans of portfolio securities, dollar rolls,
buy backs, futures, forwards, and the use of when-issued, delayed delivery or
forward commitment transactions, and other derivatives, may give rise to a
form of leverage thereby amplifying the Fund’s gains and losses and making the
Fund more volatile.
Investments in securities that are difficult to purchase or sell (illiquid or
thinly-traded securities) may reduce returns if the Fund is unable to sell the
securities at advantageous times or prices. Illiquid securities may also be
difficult to value.
The manager’s investment techniques could fail to achieve the Fund’s
investment objective or negatively affect the Fund’s investment performance.
As with any investment in securities, variable annuities are subject to
investment risks, including the possible loss of principal. Investor units
will fluctuate with the performance of the underlying investments, and there
may be a gain or loss upon redemption. All forms of securities may decline in
value due to factors affecting securities markets generally, such as real or
perceived adverse economic, political, or regulatory conditions, inflation,
changes in interest or currency rates or adverse investor sentiment. Adverse
market conditions may be prolonged and may not have the same impact on all
types of securities. The values of securities may fall due to factors
affecting a particular issuer, industry or the securities market as a whole.
Rising interest rates tend to extend the duration of mortgage-related
securities, making them more sensitive to changes in interest rates and
exhibit additional volatility. When interest rates decline, borrowers may pay
off their mortgages sooner than expected, which can reduce the returns. Swap
agreements have default risk with the counterparty and risk that the Fund will
not be able to meet its obligations to pay the other party to the agreement.
For Scout Investments, Inc.
Kristin Kovach, 816.423.6131
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