John Hancock Investment Management to launch actively managed fixed-income ETF
Manulife Investment Management to subadvise the new ETF
BOSTON, January 8, 2021— John Hancock Investment Management LLC has filed a preliminary registration statement for the launch of its first fixed-income exchange-traded fund (ETF), John Hancock Corporate Bond ETF. The ETF will be subadvised by Manulife Investment Management (US) LLC, John Hancock Investment Management’s affiliated asset manager. As disclosed in the registration statement, the actively managed ETF will seek a high level of current income consistent with prudent investment risk and will invest at least 80% of its net assets (plus any borrowings for investment purposes) in corporate bonds. The ETF will be managed by Jeffrey N. Given, CFA, managing director and senior portfolio manager and Howard C. Greene, CFA, senior managing director and senior portfolio manager, Manulife Investment Management.
“2020 saw record high ETF industry flows—over half a trillion dollars with fixed income ETFs accounting for nearly $200 billion—and we expect demand will continue throughout the new year,” said Andrew G. Arnott, CEO, John Hancock Investment Management and Head of Wealth and Asset Management, Manulife Investment Management, United States and Europe. “Manulife Investment Management will bring to the new ETF a rigorous fundamental research process and a heritage of risk management as a manager with strong fixed income capabilities.”
“Howard Greene and Jeffrey Given and the portfolio management team at Manulife Investment Management are well-respected fixed-income managers and we look forward to working with them as we prepare to launch John Hancock’s first actively managed fixed-income ETF,” added Steven L. Deroian, head of asset allocation models and ETF product at John Hancock Investment Management.
John Hancock Investment Management launched its first ETFs more than five years ago. The firm’s ETF offering has since expanded to 15 ETFs with more than $5 billion in assets under management, that includes U.S. and international equity portfolios and a range of sector-specific products.
A registration statement containing a preliminary prospectus (and statement of additional information) relating to shares of the ETF has been filed with the Securities and Exchange Commission, but has not yet become effective. Information contained herein is subject to completion or amendment. Shares of the ETF may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. The information in the prospectus (or statement of additional information) is not complete and may be changed. This communication is not an offer to sell this security and is not a solicitation to buy this security in any state where the offer or sale is not permitted.
Investors are advised to carefully consider the investment objectives, risks, charges, and expenses of an ETF before investing. The prospectus contains this and other important information about the ETF and should be read carefully before investing. A copy of the preliminary prospectus for the ETF may be obtained by calling: 800-225-6020.
John Hancock ETFs are distributed by Foreside Fund Services, LLC in the United States. Foreside is not affiliated with John Hancock Investment Management.
Shares of the ETF are not redeemable with the ETF other than in creation unit aggregations. Instead, investors must buy or sell the ETF shares in the secondary market through a broker-dealer. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and may receive less than net asset value when selling.
Investing involves risks, including the potential loss of principal. The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest-rate risk. As interest rates rise the value of bond prices will decline.
© 2021 John Hancock Investment Management. All rights reserved.
There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results. This material is for informational purposes only and is not intended to be, nor shall it be interpreted or construed as, a recommendation or providing advice, impartial or otherwise, regarding any security, mutual fund, ETF, sector, or index. Investors should consult with their financial professional before making any investment decisions.
The shares of the ETF do not represent a deposit or an obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.Statements in this press release that are not historical facts are forward-looking statements as defined by the United States securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the ETF’s control and could cause actual results to differ materially from those set forth in the forward-looking statements.
About John Hancock Investment Management
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we're one of the strongest and most-recognized financial brands. John Hancock Investment Management, a company of Manulife Investment Management, serves investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Our approach to asset management has led to a diverse set of investments deeply rooted in investor needs, along with strong risk-adjusted returns across asset classes.
About Manulife Investment Management
Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 17 countries and territories. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We’re committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement.
As of September 30, 2020, Manulife Investment Management had CAD$923 billion (US$692 billion) in assets under management and administration. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.