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BOSTON, Feb. 1, 2024
/PRNewswire/ - John Hancock Investment Management, a company
of Manulife Investment Management, today filed an initial
registration statement with the Securities and Exchange Commission
for a new actively managed John Hancock High Yield ETF
(ticker: JHHY) anticipated to launch this year. The new ETF will be
subadvised by Marathon Asset Management LP and is subject to all
applicable regulatory approvals.
As disclosed in the initial registration statement, the
objective of the ETF will be to seek to maximize current income.
Capital appreciation will be a secondary goal. Under normal market
conditions, the fund will invest at least 80% of its net assets
(plus any borrowings for investment purposes) in
U.S.-dollar-denominated high-yield corporate bonds.* For more
information on the fund's principal investment strategy please
refer to the initial registration statement.
The ETF will be managed by Louis
Hanover, Chief Investment Officer, and Michael Schlembach, Managing Director and Senior
Portfolio Manager, Marathon Asset Management.
"Marathon is well-known for its knowledge of the global credit
market with decades of expertise in providing solutions across the
credit universe. Its rigorous approach to credit analysis and keen
understanding of the markets, based on bottom – up research allows
for opportunistic investing in assets across the global credit
markets," said Steve Deroian,
co-head of retail product, John Hancock Investment Management.
"We are excited to expand Marathon's partnership with John
Hancock Investment Management by bringing our US high yield
strategy to a broad range of investors with JHHY," said
Bruce Richards, CEO and Chairman of
Marathon Asset Management. "We believe that the combination of
John Hancock's strong platform
alongside Marathon's expertise in credit make for a compelling
value proposition for investors seeking efficient access to the
high yield market with the benefit of a proven active manager in
the space."
John Hancock Investment Management's ETF suite totals 13 funds
with over $6 billion in assets under
management as of 12/31/2023, including preferred income,
mortgage-back securities, corporate bond, municipal bond, 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).
A registration statement containing a preliminary prospectus
(and statement of additional information) relating to the shares of
the John Hancock High Yield ETF has been filed with the Securities
and Exchange Commission, but has not yet been declared
effective. Information contained herein is subject to
completion or amendment. Shares of the ETF may not be sold, nor may
offers to buy be accepted, prior to the time the registration
statement becomes effective. The information contained in the
prospectus (and statement of additional information) is not
complete and may be changed.
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.
Investors are advised to carefully consider the investment
objectives, risks, charges, and expenses of an ETF before
investing. The prospectus contains this and other important
information about the ETF and should be read carefully before
investing. A copy of the preliminary prospectus for the ETF may be
obtained by calling 800-225-5291.
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. It is
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. Large company stocks could fall out of
favor, and illiquid securities may be difficult to sell at a price
approximating their value. The stock prices of small and midsize
companies can change more frequently and dramatically than those of
large companies. 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. 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 will be subadvised by Marathon
Asset Management LP.
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 is
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-491465-2024-01-30
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SOURCE John Hancock Investment Management