Indexes designed by Dimensional Fund Advisors
BOSTON, September 29, 2015—John Hancock Investment Management today announced the official launch of six strategic beta John Hancock Multifactor ETFs. In July, John Hancock Investment Management disclosed that Dimensional Fund Advisors LP — a company regarded as one of the pioneers in strategic beta investing— was selected to design all six underlying indexes in line with Dimensional’s time-tested factor-based approach. Each passively managed John Hancock Multifactor ETF seeks to provide investment results that closely correspond, before fees and expenses, to the performance of a Dimensional-designed index.
“We’re excited to be entering the ETF business at this time, and to bring our manager-of-managers approach to the world of strategic beta ETFs,” said Andrew G. Arnott, president and CEO of John Hancock Investment Management. “Investors are facing a proliferation of ETF strategies today, and many investors are looking for more than just low-cost access to markets. For those reasons, it was important to us to develop an ETF product that seeks to address investor needs for performance potential, backed by an investment approach rooted in decades of academic research. That thinking is what led us to select Dimensional Fund Advisors.”
Dimensional Fund Advisors has managed rules-based, multifactor strategies for more than 30 years and today is one of the most respected asset managers in the industry. “Dimensional is dedicated to implementing the great ideas in finance,” explained Eduardo Repetto, co-CEO and co-CIO of Dimensional Fund Advisors. “Our approach is rooted in decades of academic research into the factors that drive higher expected returns. In the equity markets, we believe this means smaller capitalizations, lower relative prices, and higher profitability. Each of the John Hancock Multifactor ETFs seeks to track an index constructed to emphasize and balance those factors while managing investment costs.”
The suite of John Hancock Multifactor ETFs, which will trade on the NYSE Arca, consists of:
- John Hancock Multifactor Large Cap ETF (NYSE Arca: JHML)
- John Hancock Multifactor Mid Cap ETF (NYSE Arca: JHMM)
- John Hancock Multifactor Consumer Discretionary ETF (NYSE Arca: JHMC)
- John Hancock Multifactor Financials ETF (NYSE Arca: JHMF)
- John Hancock Multifactor Healthcare ETF (NYSE Arca: JHMH)
- John Hancock Multifactor Technology ETF (NYSE Arca: JHMT)
The launch coincides with a surge in investor demand for strategic beta strategies as investors weigh the pros and cons of active and passive management. “We believe investors can benefit from combining active and passive strategies in their portfolios,” said Mr. Arnott.
The firm also announced a robust campaign of advertising and promotional events in support of the launch of John Hancock Multifactor ETFs. A national advertising campaign kicks off in October, with TV, digital, and print ads running in a wide range of business publications and news properties.
About John Hancock Investment Management
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of America’s strongest and most-recognized brands. As a manager of managers, John Hancock Investment Management searches the world to find proven portfolio teams with specialized expertise for every fund we offer, then applies vigorous investment oversight to ensure they continue to meet our uncompromising standards. Our unique 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. John Hancock Investment Management managed more than $131 billion in assets as of June 30, 2015.
About John Hancock Financial and Manulife
John Hancock Financial is a division of Manulife Financial, a leading Canada-based financial services group with principal operations in Asia, Canada, and the United States. Operating as Manulife in Canada and Asia, and primarily as John Hancock in the United States, the company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents, and distribution partners. Assets under management and administration by Manulife and its subsidiaries were C$883 billion (US$708 billion) as at June 30, 2015. Manulife Financial Corporation trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK. Manulife can be found at manulife.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.