John Hancock Investment Management Expands ETF Lineup
US$ unless otherwise stated
BOSTON, Nov. 2, 2023 /PRNewswire/ - John Hancock Investment Management, a company of Manulife Investment Management, today will launch two exchange-traded funds (ETFs) to expand its ETF lineup and to bring additional income and capital appreciation opportunities to investors.
The firm's ETF suite now totals 12 funds with over $5 billion in assets under management as of 9/30/2023, including preferred income, mortgage-back securities, corporate bond, municipal bond, U.S. and international equity portfolios.
"John Hancock Investment Management has a lengthy track record of providing access to a variety of managers and investment strategies that bring opportunities for a well-diversified portfolio to investors," said Kristie Feinberg, Head of U.S. and Europe, Manulife Investment Management, and President and Chief Executive Officer, John Hancock Investment Management. "We are excited to launch two new actively managed ETFs for those investors who may be seeking these municipal bond and equity strategies in an ETF wrapper."
Steve Deroian, Co-Head of Retail Product, John Hancock Investment Management, added, "Regardless of the broader macro environment or prevailing market conditions, strategies that aim to provide income and capital appreciation opportunities are appealing to investors. Our new ETFs, managed by our affiliated subadvisor, Manulife Investment Management, reflect our ability to deliver solutions across the allocation spectrum for our clients."
New ETFs
- John Hancock Dynamic Municipal Bond ETF (NYSE Arca: JHMU) is the firm's first municipal bond ETF. JHMU is managed by Adam A. Weigold, CFA, Senior Managing Director, Senior Portfolio Manager, and Head of the Municipal Fixed Income Team, and Dennis DiCicco, Portfolio Manager at Manulife Investment Management. JHMU seeks a high level of interest income exempt from federal income tax. The Municipal Team manages more than $1.5 billion in assets as of 9/30/2023.
- John Hancock Fundamental All Cap Core ETF (NYSE Arca: JHAC) is the firm's first active semi-transparent ETF. It seeks long-term capital appreciation and is managed by Emory W. (Sandy) Sanders, Jr., CFA, senior managing director and senior portfolio manager and co-lead of the U.S. Core Value Equity Team, and Jonathan T. White, CFA, managing director and co-lead of the U.S. Core Value Equity Team, at Manulife Investment Management. The U.S. Core Value Equity Team manages more than $23 billion in large-cap value, large-cap core, and all-cap core strategies as of 9/30/2023.
JHAC is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example:
- You may have to pay more money to trade the ETF's shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.
- The price you pay to buy ETF shares on an exchange may not match the value of the ETF's portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.
- These additional risks may be even greater in bad or uncertain market conditions.
- The ETF will publish on its website each day a "Tracking Basket" designed to help trading in shares of the ETF. While the Tracking Basket includes some of the ETF's holdings, it is not the ETF's actual portfolio.
The differences between JHAC and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF's performance. If other traders are able to copy or predict the ETF's investment strategy, however, this may hurt the ETF's performance. For additional information regarding the unique attributes and risks of the JHAC, see the ETF's prospectus and statement of additional information.
John Hancock Fundamental All Cap Core ETF Investing involves risks, including the potential loss of principal. There is no guarantee that a fund's investment strategy will be successful. It's possible that an active trading market for fund shares will not develop, which may hurt your ability to buy or sell fund shares, particularly in times of market stress. Large company stocks could fall out of favor. The stock prices of midsize and small companies can change more frequently and dramatically than those of large companies. Preferred stock dividends are payable only if declared by the issuer's board. Preferred stock may be subject to redemption provisions. Trading securities actively can increase transaction costs, therefore lowering performance and taxable distributions.
The objective of the tracking basket is to construct a portfolio of stocks and representative ETFs that tracks the daily performance of the fund without exposing current holdings, trading activities, or internal equity research. The tracking basket is designed to conceal any nonpublic information about the underlying portfolio and only uses the fund's latest publicly disclosed holdings, representative ETFs, and the publicly known daily performance in its construction. You can gain access to the tracking basket and the tracking basket weight overlap (which is designed to provide investors with an understanding of how similar the tracking basket is to the fund's actual portfolio in percentage terms) at jhinvestments.com/etf. The fund's tracking basket structure may affect the price at which shares of the fund trade in the secondary market.
Although the tracking basket is intended to provide investors with enough information to allow for an effective arbitrage mechanism that will keep the market price of the fund at or close to the underlying NAV per share, there is a risk (which may increase during periods of market disruption or volatility) that market prices will vary significantly from the underlying NAV of the fund; ETFs trading on the basis of a published tracking basket may trade at a wider bid/ask spread than ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility, and, therefore, may cost investors more to trade, and although the fund seeks to benefit from keeping its portfolio information secret, market participants may attempt to use the tracking basket to identify a fund's trading strategy, which, if successful, could result in such market participants engaging in certain predatory trading practices that may have the potential to harm the fund and its shareholders. Because shares are traded in the secondary market, a broker may charge a commission to execute a transaction in shares, and an investor may incur the cost of the spread between the price at which a dealer will buy shares and the price at which a dealer will sell shares. Please see the fund's prospectus for additional information regarding the unique attributes and risks of the fund.
John Hancock Dynamic Municipal Bond ETF
Investing involves risks, including the potential loss of principal. There is no guarantee that a fund's investment strategy will be successful. 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. Investments in higher-yielding, lower-rated securities include a higher risk of default. Municipal bond prices can decline due to fiscal mismanagement or tax shortfalls, or if related projects become unprofitable. It's possible that an active trading market for fund shares will not develop, which may hurt your ability to buy or sell fund shares, particularly in times of market stress. Trading securities actively can increase transaction costs, therefore lowering performance and taxable distributions. 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. To the extent that the fund invests in bonds that are subject to the alternative minimum tax (AMT), the income paid by the fund may not be entirely tax-free to all investors. Tender option bonds use leverage that magnifies both positive and negative returns, which increases the fund risk by magnifying the volatility of returns and could lead to termination of the Tender Option Bond trust. In that event, the fund may sell assets to purchase the trust's floating-rate security, which could negatively affect fund performance or liquidate the trust's assets. Fund distributions generally depend on income from underlying investments and may vary or cease altogether in the future. Shares may trade at a premium or discount to their NAV in the secondary market. These variations may be greater when markets are volatile or subject to unusual conditions. Please see the fund's prospectus for additional information regarding the unique attributes and risks of the fund.
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus and summary prospectus contains this and other important information about the fund. To obtain a prospectus or summary prospectus, contact your financial professional, call us at 800-225-5291, or visit our website at jhinvestments.com/etf. Please read the prospectus and summary prospectus carefully before investing.
This press release is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Manulife Investment Management (US) LLC is our affiliated investment advisor.
John Hancock ETFs are distributed by Foreside Fund Services, LLC in the United States, and are subadvised by Manulife Investment Management (US) LLC and Dimensional Fund Advisors LP. 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.
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.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
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 brand for the global wealth and asset management segment of Manulife Financial Corporation. Our mission is to make decisions easier and lives better by empowering investors for a better tomorrow. Serving more than 17 million individuals, institutions, and retirement plan members, we believe our global reach, complementary businesses, and the strength of our parent company position us to help investors capitalize on today's emerging global trends. We provide our clients access to public and private investment solutions across equities, fixed income, multi-asset, alternative, and sustainability-linked strategies, such as natural capital, to help them make more informed financial decisions and achieve their investment objectives. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.
SOURCE John Hancock Investment Management
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