John Hancock Investment Management Launches New High Yield ETF Subadvised by Marathon Asset Management
US$ unless otherwise stated
BOSTON, May 2, 2024 /PRNewswire/ - John Hancock Investment Management, a company of Manulife Investment Management, today announced the launch of the John Hancock High Yield ETF (NYSE Arca: JHHY). The new actively managed ETF is subadvised by Marathon Asset Management, L.P. (Marathon), a global credit investment manager. With more than $22 billion in assets under management as of 12/31/23, Marathon's credit platform is recognized for its deep expertise across the spectrum of private and public credit markets.
JHHY's primary investment objective is to maximize current income with a secondary goal of capital appreciation. Under normal market conditions, JHHY will invest at least 80% of its net assets (plus any borrowings for investment purposes) in U.S.-dollar-denominated high-yield corporate bonds.*
The new ETF will be managed by Marathon's Louis Hanover, Chief Investment Officer, and Michael Schlembach, Managing Director and Senior Portfolio Manager, who have more than 40 years of combined industry experience and are primarily responsible for the management of the fund's portfolio. They are supported by an experienced team of more than 30 investment professionals with expertise in managing index-like actively managed fixed income portfolios.
"Expanding the solutions available to advisors and their clients with Marathon Asset Management through the convenience of an ETF speaks to our continued commitment leveraging the skill of our multimanager network to bring new capabilities and robust active strategies – like Marathon's approach to high-yield credit - to investors' portfolios," said Kristie Feinberg, Head of U.S. and Europe, Manulife Investment Management, and President and Chief Executive Officer, John Hancock Investment Management.
"We are proud to expand our partnership with John Hancock with this active ETF. We believe the combination of John Hancock's platform and our expertise in managing high yield bonds presents a compelling value proposition for those seeking access to the potential income and value provided by this strategy," said Louis Hanover, Chief Investment Officer, Marathon Asset Management.
"We believe that many investors are looking for an ETF investment option in high-yielding fixed income that combines their expectations of index-like risk and return with the benefits of active management," added Michael Schlembach, Managing Director and High Yield Portfolio Manager, Marathon Asset Management. "Our consistent investment process and diversified approach strives to capture the merits of the high yield asset class and deliver a better investor experience with JHHY."
"We are excited to launch JHHY at a time when investors are seeking income and looking for the potential benefits of a high-yield strategy in an active ETF structure. Marathon's consistent portfolio construction process and nimble approach to the high-yield credit market allows for diverse positioning and the potential to provide investors with favorable opportunities within the high-yield universe," added Steve Deroian, co-head of retail product, John Hancock Investment Management.
With the launch of John Hancock High Yield ETF, John Hancock Investment Management's ETF suite now totals 14 funds with over $6.5 billion in assets under management**, including preferred income, mortgage-backed securities, corporate bond, municipal bond, and U.S. and international equity portfolios.
* Such corporate bonds are below-investment-grade securities rated from BB+ to D by S&P Global Ratings (S&P) or by Fitch Ratings, Inc. (Fitch) or from Ba1 to D by Moody's Investors Service, Inc. (Moody's), or a comparable rating by any nationally recognized statistical rating organization (NRSRO), or unrated equivalents (also called junk bonds).
** Assets under management as of 3/31/24.
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.
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.
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. Foreign investing has additional risks, such as currency and market volatility and political and social instability. 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. The use of hedging and derivatives could produce disproportionate gains or losses and may increase costs. 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. There can be no assurance that active trading markets for the shares will develop or be maintained by market makers or authorized participants, 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. Please see the fund's prospectus for additional risks.
John Hancock ETFs are distributed by Foreside Fund Services, LLC in the United States, and are subadvised by Boston Partners, Dimensional Fund Advisors LP or our affiliate Manulife Investment Management (US) LLC. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC, Boston Partners, Dimensional Fund Advisors LP, or Marathon Asset Management. The new ETF discussed in this press release is subadvised by Marathon Asset Management, L.P.
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.
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.
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.
Marathon Asset Management, L.P. is a leading global asset manager specializing in the public and private credit markets with over $22 billion of assets under management. The firm was founded in 1998 and is managed by Bruce Richards (Co-Founder & CEO) and Louis Hanover (Co-Founder & CIO) and employs more than 180 professionals, with 9 Partners that include Christine Chartouni, Ed Cong, Jason Friedman, Jeff Jacob, Jamie Raboy, Andy Springer and Gaby Szpigiel. Its corporate headquarters are located in New York City, and it has offices in London, Miami, Los Angeles and Luxembourg. Marathon is a Registered Investment Adviser with the Securities Exchange Commission. For more information, please visit the company's website at marathonfund.com.
JHS-538175-2024-04-30
SOURCE John Hancock Investment Management
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