John Hancock Investment Management expands alternatives availability and reach for investors
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Diversified Macro Fund surpasses $1 billion in AUM; Asset-Based Lending Fund available on multiple platforms
BOSTON, June 8, 2023 /PRNewswire/ - John Hancock Investment Management, a company of Manulife Investment Management, announced today expanded availability for its alternative investment product offering. Having launched its first alternative allocation fund in 2009, the firm continues to see increased interest in its alternative and private markets solutions and has implemented additional solutions to meet the demand of advisors, their clients, and qualified investors through multiple distribution platforms.
Nathan W. Thooft, CIO, Multi-Asset Solutions, Manulife Investment Management, said, "We are currently experiencing an economic and market environment with high uncertainties, notable volatility, and the prospect for weaker growth. With this in mind, our goal is to provide investors the opportunity to consider an increased allocation to alternatives, adding differentiated exposures to their portfolios."
Underscoring the firm's longstanding experience in bringing liquid alternatives to investor portfolios, John Hancock Diversified Macro Fund, subadvised by Graham Capital Management, has surpassed $1 billion in assets under management (AUM) this year.1 John Hancock Diversified Macro Fund pursues diversified sources of returns through algorithmic long and short positions in carry, fundamental, trend, and value strategies. As of 4/30/2023, the John Hancock Diversified Macro Fund I shares received a 4-star overall rating out of 68 funds in the Morningstar Macro Trading category. The fund was rated 4 stars out of 68 funds for the 3-year period.*
The John Hancock Diversified Macro Fund delivered a positive return of 12.29% in 2022.
The John Hancock Diversified Macro Fund Average Annual Total Returns2 as of March 31, 2023 |
% |
|||||||
Qtd |
Ytd |
1yr |
3yr |
5yr |
10 yr |
Life of |
Life of |
|
Class I without sales charge |
0.89 |
0.89 |
2.53 |
5.94 |
– |
– |
2.63 |
7/29/19 |
Class A without sales charge |
0.90 |
0.90 |
2.27 |
5.67 |
– |
– |
2.36 |
7/29/19 |
Class A with sales charge |
-4.15 |
-4.15 |
-2.80 |
3.87 |
– |
– |
0.93 |
7/29/19 |
ICE BofA 0-3 Month U.S. |
1.09 |
1.09 |
2.61 |
0.91 |
– |
– |
1.10 |
– |
Macro trading category |
-0.42 |
-0.42 |
-2.66 |
3.81 |
– |
– |
– |
– |
Expense Ratios3 |
||||||||
Gross |
Net |
Contractual |
||||||
Class I |
1.40 % |
1.39 % |
7/31/2024 |
|||||
Class A |
1.65 % |
1.64 % |
7/31/2024 |
|||||
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense |
||||||||
2. The Intercontinental Exchange (ICE) Bank of America (BofA) 0-3 month U.S. Treasury Bill Index tracks the |
||||||||
3. "Net (what you pay)" represents the effect of a contractual fee waiver and/or expense reimbursement and is |
||||||||
"We are extremely pleased to see the growth of John Hancock Diversified Macro Fund and believe it is a testament to our strong partnership and the value of macro strategies in a broader portfolio," said Brian Douglas, CEO of Graham Capital management. "In a time of many market uncertainties and questions around the resilience of a traditional 60/40 portfolio, we believe a strategic, long-term allocation to diversifying strategies like macro is very important."
John Hancock Investment Management's legacy in alternatives helped to launch John Hancock Alternative Asset Allocation Fund in 2009 as a one-stop alternative allocation solution. The fund is subadvised by Manulife Investment Management US and was the firm's first fund to bring alternative asset class strategies to retail investors looking for core alternative holdings in their portfolios to provide diversification. As of 4/30/2023, the John Hancock Alternative Asset Allocation Fund I shares received a 4-star overall rating out of 131 funds in the Morningstar Multi-strategy category. The fund was rated 3 stars out of 131 funds in the 3-year period and 4 stars out of 115 and 50 funds for the 5- and 10-year periods, respectively.*
To continue to meet the diversification needs of investors, John Hancock Investment Management expanded its registered alternative offerings to include semi-liquid tender offer funds that provide mass affluent eligible investors access to private securities with the launch of the John Hancock Asset-Based Lending Fund in July 2022. The fund, which seeks to provide investors high current income and to a lesser extent, capital appreciation in various private asset-based lending investments ranging from transportation finance to healthcare royalties, is managed by New York-based public and private credit specialist Marathon Asset Management. The fund is now available on all three RIA custody platforms – Fidelity, Pershing and Schwab and is available for electronic transactions on the +SUBSCRIBE platform and the iCapital Marketplace.
"John Hancock Investment Management has seen growing interest in the Asset-Based Lending Fund as investors look for differentiated investments that bring diversification to traditional assets in their portfolios," said York Lo, head of alternative product, John Hancock Investment Management. "For investors who believe we are in a recession or pre-recessionary climate, the opportunity to increase diversification through alternative asset classes could add ballast to a portfolio into the next cycle, and we look forward to providing investors with expanded offerings to make the appropriate allocations."
Click here for more information about John Hancock Investment Management's alternative funds.
1.As of February 6, 2023 |
*For each managed product, including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts, with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return that accounts for variation in a fund's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. Exchange-traded funds and open-end mutual funds are considered a single population for comparative purposes. The top 10.0% of funds in each category, the next 22.5%, 35.0%, 22.5%, and bottom 10.0% receive 5, 4, 3, 2, or 1 star(s), respectively. The overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The rating formula most heavily weights the 3-year rating using the following calculation: 100% 3-year rating for 36 to 59 months of total returns, 60% 5-year rating/40% 3-year rating for 60 to 119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. For complete performance information, visit jhinvestments.com. Other share classes may be rated differently. Past performance does not guarantee future results. |
© 2023 Morningstar, Inc. All rights reserved. The information contained herein (1) is proprietary to Morningstar and/or its content providers, (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. |
John Hancock Diversified Macro Fund Risk
Quantitative models may not accurately predict future market movements or characteristics, which may negatively affect performance. The use of hedging and derivatives could produce disproportionate gains or losses and may increase costs. The fund's use of derivatives may result in a leveraged portfolio that may not be successful and may create additional risks, including heightened price and return volatility. Exposure to commodities and commodities markets may also subject the fund to greater volatility than investments in traditional securities. Commodity investments can be volatile and are affected by speculation, supply-and-demand dynamics, geopolitical stability, and other factors. Large company stocks may underperform the market as a whole. Foreign investing has additional risks, such as currency and market volatility and political and social instability. The securities of small companies are subject to higher volatility than those of larger, more established companies. 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. The extent to which a security may be sold or a derivative position closed without negatively affecting its market value may be impaired by reduced market activity or participation, legal restrictions, or other economic and market impediments. By investing in a subsidiary, the fund is indirectly exposed to the risks associated with the subsidiary's investments and operations. The tax treatment of commodity-related investments and income from the subsidiary may be adversely affected by future U.S. tax legislation, regulation, or guidance. Please see the fund's prospectus for additional risks.
John Hancock Alternative Asset Allocation Fund Risk
The fund's performance depends on the advisor's skill in determining asset class allocations, the mix of underlying funds, and the performance of those underlying funds. The fund is subject to the same risks as the underlying funds and exchange-traded funds in which it invests: Stocks and bonds can decline due to adverse issuer, market, regulatory, or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; the securities of small companies are subject to higher volatility than those of larger, more established companies; and high-yield bonds are subject to additional risks, such as increased risk of default. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value, if at all—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Currency transactions are affected by fluctuations in exchange rates. The fund's losses could exceed the amount invested in its currency instruments. Please see the fund's prospectus for additional risks.
John Hancock Asset-Based Lending Fund Risk
Fund shares are illiquid and, therefore, an investment in the fund should be considered a speculative investment that entails substantial risks. Investors could lose all or substantially all of their investment. Shares of the fund are not listed on any securities exchange, and it is not anticipated that a secondary market for the fund's shares will develop; therefore, an investment in the fund may not be suitable for investors who may need the money they invest in a specified timeframe. The amount of distributions that the fund may pay, if any, is uncertain. Annual distributions may consist of all or part of your original investment, and therefore may not consist of a return of net investment income. The fund's use of leverage may not be successful and may create additional risks, including the risk of magnified return volatility and the potential for unlimited loss. Exposure to investments in commercial real estate, residential real estate, transportation, healthcare loans, and royalty-backed credit and other asset-based lending, including distressed loans, may also subject the fund to greater volatility than investments in traditional securities. Investments in distressed loans are subject to the risks associated with below-investment-grade securities. In addition, when a fund focuses its investments in certain sectors of the economy, its performance may be driven largely by sector performance and could fluctuate more widely than if the fund were invested more evenly across sectors. The fund's investment strategy may not produce the intended results. Please see the fund's prospectus for additional risks.
Request a prospectus or summary prospectus from your financial professional, by visiting jhinvestments.com, or by calling us at 800-225-5291. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should consider carefully before investing.
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 19 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. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.
Manulife, Manulife Investment Management, Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.
John Hancock Investment Management Distributors LLC ▪ Member FINRA, SIPC
200 Berkeley Street ▪ Boston, MA 02116 ▪ 800-225-6020 ▪ jhinvestments.com
SOURCE John Hancock Investment Management
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