BOSTON, March 25, 2020—John Hancock Investment Management, a company of Manulife Investment Management, recently announced fee reductions to five John Hancock Multifactor ETFs. The fee reductions are a combination of reductions in contractual operating expense caps and restructuring of advisory fee schedules. The reductions will result in approximately $1.5 million total savings for current shareholders over the next 12 months.1
The funds affected are John Hancock Multifactor Large Cap ETF (JHML), John Hancock Multifactor Developed International ETF (JHMD), John Hancock Multifactor Mid Cap ETF (JHMM), John Hancock Multifactor Small Cap ETF (JHSC), and John Hancock Multifactor Emerging Markets ETF (JHEM). All funds are subadvised by Dimensional Fund Advisors LP (Dimensional). The announced changes are expected to be effective on March 30, 2020.
Previous expense ratio
|Expense ratio as of 3/30/20202||Reduction as of
|JH Multifactor Large Cap ETF||JHML||0.34%||0.29%||-.05%|
|JH Multifactor Mid Cap ETF||JHMM||0.44%||0.42%||-.02%|
|JH Multifactor Small Cap ETF||JHSC||0.50%||0.42%||-.08%|
|JH Multifactor Developed International ETF||JHMD||0.45%||0.39%||-.06%|
|JH Multifactor Emerging Markets ETF||JHEM||0.55%||0.49%||-.06%|
1. Prospectus as of 3/17/20, estimate on AUM of $15,124,571 if shareholders remain in funds over 12-month period
2. Expense ratio excludes: (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, (e) borrowing costs, (f) prime brokerage fees, (g) acquired fund fees and expenses paid indirectly, and (h) short dividend expense.
“We are pleased to implement these reductions as interest and adoption from investors in multifactor
strategies continue to rise,” said Steve Deroian, Head of Asset Allocation Models and ETF Product, John Hancock Investment Management. “According to SimFund, net flows into smart beta ETFs hit an industry high in 2019 with over $48 billion flowing into these strategies, and we believe the demand for these ETFs will continue to increase as investors search for ways to potentially outperform the market, rather than just match its returns.”
John Hancock Investment Management has worked with Dimensional and its portfolio management teams for more than a decade, and launched ETFs built around Dimensional strategies in late 2015. The firm’s ETF offering has since expanded to 15 funds including the U.S. and international equity portfolios affected by these reductions and a range of sector-specific products.
“When we introduced the John Hancock Multifactor ETF suite more than four years ago, we were excited to offer advisors and their clients the expertise of Dimensional in an ETF wrapper,” said Andrew G. Arnott, CEO, John Hancock Investment Management and Head of Wealth and Asset Management, Manulife Investment Management, U.S. and Europe. “These fee reductions allow even more access to these products as advisors work tirelessly to find value and return for investors.”
Additional information on these fee reductions can be found in the funds’ latest prospectuses.
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