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.
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.
About Marathon Asset
Management
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
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SOURCE John Hancock Investment Management