Fixed-income investing at John Hancock Investment Management
Fixed-income investments have a vital role to play in a broad range of diversified portfolios, from dampening equity volatility to providing current income and pursuing capital preservation.
Bond investors face new challenges
Bond prices tend to move in the opposite direction of interest rates, and for nearly three decades, longer-term interest rates steadily declined, sending prices on existing bonds higher. Today’s historically low rates have already begun to rise, and bond investors could discover that their portfolios contain more risk than they intend.
After 30 years of declining rates, bond investors need new sources of return
Passive strategies have significant exposure to interest-rate risk
Because the income offered today in many bond market sectors is so low, it could take years for coupon payments to make up for capital losses due to rising rates. According to one study, in an average rising-rate scenario (where rates rise 3% over about three years), bondholders in the highest-rated securities could lose more than 22% of their bond portfolios’ principal value during that period.1
Look beyond mainstream bond funds for more promising opportunities
During periods of rising interest rates over the past 30 years, U.S. Treasuries and core U.S. bonds have historically been among the worst performers. More specialized sectors, on the other hand, generally fared well, in part because they're less reliant on declining interest rates to fuel performance. Today, these sectors tend to offer higher yields as well.
Debt issued by lower credit quality companies, typically less sensitive to interest rates and driven more by corporate fundamentals
Debt issued by governments and corporations within developing economies, often buttressed by strong demographic trends, such as growing consumer classes
Interest payments on these bank loans made to corporations float along with interest rates, paying higher coupons as rates rise
Bonds with shorter maturities are less sensitive to rising rates since bondholders can expect to have their principal repaid relatively soon
Income payments to these bonds are derived from pools of mortgages, and as housing fundamentals improve, the risk of defaults tends to decrease
Core U.S. bonds
U.S. investment-grade bonds dominated by government securities whose returns are driven by rate movements
10-year U.S. Treasuries
Some of the most heavily traded securities in the world, 10-year U.S. Treasuries are the de facto proxy for intermediate-term interest rates
Broadening your fixed-income portfolio can help you lessen risks and potentially boost returns
Adding more types of fixed-income investments to your portfolio doesn’t necessarily mean taking on more risk. In fact, a broadly diversified bond portfolio generated more income and higher returns than an index-oriented portfolio over the past 10 years, and did so with less volatility.
Finding the best specialized manager for every fund we offer
Our multimanager approach puts us in a unique position to evaluate the skill sets, track records, and experience of today’s portfolio managers, and our fixed-income lineup features a range of portfolios managed by some of the industry’s best teams.
Explore our fixed-income funds
At John Hancock Investment Management, our fixed-income funds are designed to pursue a range of investor goals. We’ve offered fixed-income strategies to individual and institutional investors for more than 30 years, and today we oversee nearly $25 billion in fixed-income assets across a range of strategies, managed by some of the best specialized portfolio teams from around the world.
|TICKER||FUND NAME||MANAGED BY||MORNINGSTAR CATEGORY||USE FOR|
|JHBIX||Bond Fund||Manulife Investment Management||Intermediate Core-Plus Bond||Diversifying income holdings|
|JCAFX||California Tax-Free Income Fund||Manulife Investment Management||Muni California Long||Tax planning strategies|
|JBOIX||ESG Core Bond Fund||Breckinridge Capital Advisors||Intermediate Core Bond||Opportunistic fixed-income holding|
|JMKIX||Emerging Markets Debt Fund||Manulife Investment Management||Emerging Markets Bond||Diversifying income holdings|
|JFIIX||Floating Rate Income Fund||Bain Capital Credit||Bank Loan||High current income and reducing interest-rate risk|
|JGIFX||Government Income Fund||Manulife Investment Management||Intermediate Government||High-quality income opportunities|
|JYHIX||High Yield Fund||Manulife Investment Management||High Yield Bond||Generating income|
|JHYMX||High Yield Municipal Bond Fund||Manulife Investment Management||High Yield Muni||Tax planning strategies|
|JSTIX||Income Fund||Manulife Investment Management||Multisector Bond||Diversifying income holdings|
|JHS||Income Securities Trust||Manulife Investment Management||Closed-End Intermediate Core Bond||Diversifying income holdings|
|TIUSX||Investment Grade Bond Fund||Manulife Investment Management||Intermediate Core Bond||High-quality income opportunities|
|JHI||Investors Trust||Manulife Investment Management||Closed-End Multisector Bond||Diversifying income|
|HPI||Preferred Income Fund||Manulife Investment Management||Closed-End Preferred Stock||Diversifying sources of income|
|HPF||Preferred Income Fund II||Manulife Investment Management||Closed-End Preferred Stock||Diversifying sources of income|
|HPS||Preferred Income Fund III||Manulife Investment Management||Closed-End Preferred Stock||Diversifying sources of income|
|JMBIX||Short Duration Credit Opportunities Fund||Stone Harbor Investment Partners||Multisector Bond||Diversifying income holdings and reducing interest-rate risk|
|JIPIX||Strategic Income Opportunities Fund||Manulife Investment Management||Multisector Bond||Diversifying income holdings|
|JTBDX||Tax-Free Bond Fund||Manulife Investment Management||Muni National Long||Tax planning strategies|
Investing involves risks, including the potential loss of principal. These products carry many individual risks, including some that are unique to each fund. Please click a fund's name above to learn all of the risks associated with each investment.