John Hancock Investment Management launches preferred income ETF subadvised by Manulife Investment Management
BOSTON, December 15, 2021 —John Hancock Investment Management LLC, a company of Manulife Investment Management, today announced the availability of John Hancock Preferred Income ETF (ticker: JHPI). The exchange-traded fund (ETF) is subadvised by Manulife Investment Management (US) LLC, John Hancock Investment Management’s affiliated asset manager.
JHPI is an actively managed ETF that seeks to provide a high level of current income, consistent with preservation of capital, by investing at least 80% of its net assets in preferred stocks and other preferred securities. The manager focuses on sector allocation, industry allocation and security selection in making investment decisions and looks to invest in securities that may be undervalued relative to similar securities in the marketplace.
The ETF is managed by Joseph H. Bozoyan, CFA, and Bradley L. Lutz, CFA, portfolio managers, Manulife Investment Management. The team manages more than $5 billion in preferred and other income generating strategies.*
“We’re excited to launch our first ETF focused on preferred securities,” 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 has been managing preferred strategies for nearly 20 years in our closed end funds and is one of the largest preferred managers in the world. We are pleased to make John Hancock Preferred Income ETF available to investors who may want to use the ETF structure to access this asset class.”
“There is demand in the market to diversify sources of income. Preferred securities may provide more favorable yields with less interest-rate sensitivity than traditional bonds,” added Steven L. Deroian, co-head of retail product, John Hancock Investment Management. “We see JHPI providing a new opportunity for investors and asset allocators who may be interested in diversifying their income sources and return characteristics.”
John Hancock Investment Management launched its first ETFs more than six years ago. With this announcement, the firm’s ETF offering has grown to 18 ETFs with nearly $5 billion in assets under management as of September 30, 2021, including preferred income, mortgage-back securities, corporate bond, U.S. and international equity portfolios, and a range of sector-specific products.
About John Hancock Investment Management
A company of Manulife Investment Management, we serve investors through a unique multimanager approach, complementing our extensive in-house capabilities with an unrivaled network of specialized asset managers, backed by some of the most rigorous investment oversight in the industry. The result is a diverse lineup of time-tested investments from a premier asset manager with a heritage of financial stewardship.
About Manulife Investment Management
Manulife Investment Management is the global brand for 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 18 geographies. 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, 2021, Manulife Investment Management's assets under management and administration, including assets managed for Manulife's other segments, totaled CAD $1.1 trillion (US $835 billion). Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.
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 prospectus may be obtained by calling 800-225-6020. Please read the prospectus carefully before investing.
John Hancock Preferred Income ETF is distributed by Foreside Fund Services, LLC in the United States, and is subadvised by our affiliate Manulife Investment Management (US) LLC. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Manulife Investment Management (US) LLC.
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 at market price (not NAV) 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. There is no guarantee that a fund’s investment strategy will be successful. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if an issuer is unable or unwilling to make principal or interest payments. Preferred stock dividends are payable only if declared by the issuer’s board. Preferred stock may be subject to redemption provisions. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. REITs may decline in value, just like direct ownership of real estate. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The use of hedging and derivatives could produce disproportionate gains or losses and may increase costs. Shares may trade at a premium or discount to their NAV in the secondary market. These variations may be greater when markets are volatile or subject to unusual conditions. Please see the fund’s prospectus for additional risks.
© 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 ETFs 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.