John Hancock Investment Management LLC today announced the launch of John Hancock Corporate Bond ETF (ticker: JHCB). The exchange-traded fund (ETF) is the first fixed-income ETF advised by the firm and is subadvised by Manulife Investment Management (US) LLC, John Hancock Investment Management's affiliated asset manager.
The new ETF is actively managed and seeks a high level of current income consistent with prudent investment risk. Under normal market conditions, it invests at least 80% of its net assets (plus any borrowings for investment purposes) in corporate bonds. The ETF is managed by Jeffrey N. Given, CFA, senior managing director and senior portfolio manager, and Howard C. Greene, CFA, senior managing director and senior portfolio manager, Manulife Investment Management.
"We're excited about our product line expansion and thrilled to enter the fixed-income ETF space by offering expanded access to the investment expertise of Howard and Jeff and the fixed-income team," said Andrew G. Arnott, CEO, John Hancock Investment Management and head of wealth and asset management, Manulife Investment Management, United States and Europe. "This is the first ETF managed by Manulife Investment Management to be distributed in the U.S. and represents a new opportunity for investors who are familiar with our fixed-income management capabilities but prefer the ETF wrapper."
The investment capability available to investors through John Hancock Corporate Bond ETF is inherent to the team's investment process.
"We continue to see demand from ETF investors who would like additional tools to be more granular in this environment to maintain diversification and manage risk in their portfolios," added Steven L. Deroian, co-head of retail product, John Hancock Investment Management. "JHCB gives investors this access in an actively managed ETF focused on investment-grade corporate bonds."
John Hancock Investment Management LLC has also filed a preliminary registration statement for the launch of two additional fixed-income ETFs: John Hancock Mortgage Backed Securities ETF and John Hancock Ultra Short Income ETF.
- John Hancock Mortgage [Backed Securities] ETF will seek a high level of current income while seeking to outperform its benchmark [over a market cycle] and will invest at least 80% of its net assets (plus any borrowings for investment purposes) in [mortgage-backed securities].
- John Hancock Ultra Short Income ETF will seek a high level of current income consistent with the maintenance of liquidity and the preservation of capital. The ETF's average weighted duration will be under one year. There is no limit on average maturity.
Both ETFs will also be managed by a team at Manulife Investment Management including Jeffrey Given and Howard Greene, and David A. Bees, CFA, managing director and portfolio manager and Peter M. Farley, CFA, managing director and senior portfolio manager.
John Hancock Investment Management launched its first ETFs more than five years ago. With this announcement, the firm's ETF offering has grown to 16 ETFs with more than $4.5 billion in assets under management, which now includes corporate bond, U.S. and international equity portfolios, and a range of sector-specific products.
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 for John Hancock Corporate Bond ETF may be obtained by calling: 800-225-6020. Please read the prospectus carefully before investing.
Disclosure regarding John Hancock Mortgage Backed Securities ETF and John Hancock Ultra Short Income ETF: A registration statement containing a preliminary prospectus (and statement of additional information) relating to shares of the ETF has been filed with the SEC, 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 prospectuses for the John Hancock Mortgage Backed Securities ETF and John Hancock Ultra Short Income ETF may be obtained by calling 800-225-6020.
John Hancock Corporate Bond ETF, John Hancock Mortgage Backed Securities ETF and John Hancock Ultra Short Income ETF are distributed by Foreside Fund Services, LLC in the United States, and are subadvised by Manulife Investment Management (US) LLC in all markets. 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. 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
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 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 December 31, 2020, Manulife Investment Management had CAD$966 billion (US$758 billion) in assets under management and administration. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.