John Hancock Retirement and John Hancock Investment Management, companies of Manulife Investment Management, today announced the launch of John Hancock Stable Value Guaranteed Income Fund (the Fund), a principal stable value option within John Hancock's lineup of retirement investments.
The Fund seeks to provide plan participants with steady and stable returns, guaranteed principal and interest, and daily liquidity by investing in John Hancock's General Account, a well-diversified portfolio of investment-grade fixed income investments.
The Fund is offered through a group annuity contract, with underlying assets issued and guaranteed by the John Hancock Life Insurance Company. John Hancock Life Insurance Company has a more than 30-year track record of backing guaranteed interest contracts and has been a stable value asset manager since 2006, with total stable value assets under management above $2.7 billion with over 12,000 plans1.
"John Hancock Stable Value Guaranteed Income Fund provides an option to retirement investors which can protect capital amid market volatility. The Fund is also a great diversification tool for conservative investors and those nearing or in retirement," said Patrick Murphy, CEO, John Hancock Retirement. "We are pleased to offer this option on our platform to assist advisors and consultants, plan sponsors and participants in creating an investment line-up that meets each individual's unique needs."
From an industry perspective, the Stable Value asset class is the largest conservative investment option in defined contribution plans with over $839 billion in assets and is the most popular fixed income investment option2.
"With the power of John Hancock and Manulife, one of the world's most valued insurance companies behind us, we are able to combine the strength of our balance sheet, with the innovation of our investment capabilities, to offer John Hancock Stable Value Guaranteed Income Fund," said Andrew Arnott, CEO, John Hancock Investment Management and Head of Wealth & Asset Management, US and Europe, at Manulife Investment Management. "We are excited to introduce this new conservative investment option to our clients."
Effective immediately, the Fund is available on the John Hancock Retirement open architecture platform. The Fund will be launched on John Hancock's Signature Platform next year. The Fund is available for 401(k), 401(a), governmental 457(b) and Taft-Hartley plans. It is fully portable and benefit responsive upon plan termination3 and has no initial investment minimums. The expense ratio is 0.00%4.
About John Hancock and Manulife
John Hancock is a unit of Manulife Financial Corporation, a leading international financial services group that helps people make their decisions easier and lives better. We operate primarily as John Hancock in the United States, and Manulife globally, including Canada, Asia and Europe. We provide financial advice, insurance and wealth and asset management solutions for individuals, groups and institutions. Assets under management and administration by Manulife and its subsidiaries were over CAD$1.2 trillion (US$$881 billion) as of September 30, 2019. 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.
One of the largest life insurers in the United States, John Hancock supports more than 10 million Americans with a broad range of financial products, including life insurance, annuities, investments, 401(k) plans and college savings plans. Additional information about John Hancock may be found at johnhancock.com.
About John Hancock Retirement
As of September 30, 2019, John Hancock serviced over 60,000 plans with over 2.9 million participants* and over $172 billion in AUMA.
Participant Counts reflect all active participants with a balance.
About Manulife Investment Management
Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than 150 years of financial stewardship to partner with clients across our institutional, retail, and retirement businesses globally. Our specialist approach to money management includes the highly differentiated strategies of our fixed-income, specialized equity, multi-asset solutions, and private markets teams—along with access to specialized, unaffiliated asset managers from around the world through our multimanager model5,6. Our personalized, data-driven approach to retirement is focused on delivering financial wellness in retirement plans of all sizes to help plan participants and members retire with dignity.
Headquartered in Toronto, we operate as Manulife Investment Management throughout the world, with the exception of the United States, where the retail and retirement businesses operate as John Hancock Investment Management and John Hancock, respectively; and in Asia and Canada, where the retirement business operates as Manulife. Manulife Investment Management had C$854 billion (USD$645 billion) in assets under management and administration as of September 30, 20197. Not all offerings available in all jurisdictions. For additional information, please visit our website at manulifeinvestmentmgt.com.
As of June 30, 2019
Stable Value Investment Association survey: December 31, 2018
Non-benefit responsive transfers and withdrawals—which occur as a result of plan termination, large-scale layoffs, sale of a business unit, or company merger—are limited to 5% of investments in SVGI per year at book value.
Expense ratio is 0.00% unless the plan determines to select certain product features that include; the Market Value Recovery or includes Rev Share which would add an additional expense that would be netted out of the plan's specific crediting rate.
Public Markets strategies managed by Manulife Investment Management, formerly known as Manulife Asset Management and John Hancock Asset Management. Manulife Investment Management's Private Markets platform offers long term solutions across private equity and private credit, real estate equity and debt, infrastructure equity, timberland and farmland.
John Hancock Investment Management's multimanager approach oversees a global network of over 30 unaffiliated asset management firms, managing more than 100 investment strategies, in addition to our affiliated asset managers.
MFC financials. Global Wealth and Asset Management AUMA as of September 30, 2019 was C$854 billion and includes C$195 billion of assets managed on behalf of other segments and C$140 billion of assets under administration.
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. Refer to the Massachusetts contract form for more details about the John Hancock Stable Value Guaranteed Income Fund.
John Hancock Distributors LLC Member FINRA, SIPC 200 Berkeley Street Boston, MA 02116 800-225-6020
John Hancock Retirement Plan Services• 200 Berkeley Street • Boston, MA 02116
NOT FDIC INSURED. MAY LOSE VALUE. NOT BANK GUARANTEED.