Jackson National Life Insurance Co.’s Elite Access® variable annuity investment platform now offers DoubleLine Capital LP’s Curian/DoubleLine Total Return Fund under a $450-million agreement struck yesterday.
The fund, which is managed by DoubleLine CEO and CIO Jeffrey Gundlach and DoubleLine President Philip Baruch, aims to invest at least 80 percent of its assets (net assets plus the amount of borrowings for investment purposes) in bonds.
More than 50 percent of its net assets will be placed in mortgage-backed securities that are either backed by the U.S. government or, if privately issued, have a rating Aa3 or higher by Moody’s, AA- or higher by Standard & Poor’s or the equivalent from another nationally recognized rating organization. If unrated, DoubleLine, the fund’s sub-advisor, will determine if the securities are of comparable quality.
According to a company release, the fund may invest up to 33.5 percent of its net assets in junk bonds, bank loans and assignments and credit default swaps of companies in high-yield arena.
In a statement, Ron Redell, president of DoubleLine Funds Trust and an executive vice president of DoubleLine, said the mandate continues its “diversification into the variable annuity space.”
In January, DoubleLine Capital was named as the fastest growing manager of actively managed stock and bond funds by Strategic Insight. It was the second consecutive year DoubleLine was tagged with that classification.
In Q2, Jackson National Life took the top spot among all annuity sellers, coming in at $11.7 billion, according to LIMRA. It was also the top seller of variable annuities at $10.3 billion.
Elite Access is geared for investors who want a tax-efficient investment vehicle rather than income guarantees. Tamiko Toland, managing director of retirement income at Strategic Insights, says this recent move is another fund addition to the Curian line and that Jackson National “has been adding a lot of investment options.”
Toland adds in an email exchange that Elite Access variable annuities integrate alternative investments in various asset allocation funds. The product also offers standalone alternatives funds for “advisors who are comfortable managing their own allocations,” Toland says.