John Hancock Investment Management announces changes to municipal fund suite bringing additional options to tax-free income investors

Rhea-AI Summary

John Hancock Investment Management announced enhancements to its municipal fund suite, effective October 1, 2022. These changes include management fee reductions and expense cap adjustments for the John Hancock Municipal Opportunities Fund, California Municipal Bond Fund, and High Yield Municipal Bond Fund, resulting in lower expense ratios for shareholders. Additionally, the eligibility for Class A shares was lowered from $1 million to $250,000, increasing access for investors. The launch of the John Hancock Short Duration Municipal Opportunities Fund also aims for tax-exempt total returns while preserving capital.

Positive

• Management fee reductions leading to lower expense ratios for funds.
• Lowered investment eligibility for Class A shares from $1 million to $250,000, improving accessibility.
• Launch of John Hancock Short Duration Municipal Opportunities Fund targeting tax-exempt total returns.

Negative

• None.

$ unless otherwise stated                                               TSX/NYSE/PSE: MFC     SEHK: 945

BOSTON, Nov. 4, 2022 /PRNewswire/ - John Hancock Investment Management, a company of Manulife Investment Management, today announced recent enhancements to its municipal fund suite bringing additional flexibility to advisors and their clients seeking tax-free income opportunities and potential cost savings to shareholders.

Expense reductions

Effective October 1, 2022, as a result of reductions to the management fees and contractual expense caps affecting John Hancock Municipal Opportunities Fund and John Hancock California Municipal Bond Fund, shareholders will see an immediate reduction in the funds' overall expense ratios. John Hancock High Yield Municipal Bond Fund is also affected by a contractual expense cap reduction. The new fee schedules can be found in the updated prospectus for each fund at jhinvestments.com.

Lowered eligibility requirement for investments in Class A shares

Effective August 1, 2022, reductions were made to the eligibility requirement for investments in Class A shares with no front-end sales charge for its municipal bond funds from $1 million to $250,000.¹ This includes John Hancock Municipal Opportunities Fund, John Hancock California Municipal Bond Fund, and John Hancock High Yield Municipal Bond Fund. John Hancock Short Duration Municipal Opportunities Fund was launched with a similar $250,000 eligibility. These opportunities are available at all firms where the funds are approved or available.

John Hancock Short Duration Municipal Opportunities Fund launch

Effective June 9, 2022, John Hancock Investment Management announced the launch of John Hancock Short Duration Municipal Opportunities Fund. The objective of the fund is to seek total return exempt from federal income tax as is consistent with preservation of capital.

The municipal suite is subadvised by Manulife Investment Management (US) LLC, John Hancock Investment Management's affiliated asset manager. The managers of the municipal suite of funds are Adam A. Weigold, CFA, senior portfolio manager, head of municipal bonds and Dennis DiCicco, portfolio manager, municipal bonds.

1	There is a 1.00% contingent deferred sales charge on any Class A shares upon which a commission or finder's fee was paid that are sold within 18 months of purchase.

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.

NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.

This material does not constitute tax, legal, or accounting advice, is for informational purposes only and is not meant as investment advice. Please consult your tax or financial professional before making any investment decisions. 

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 fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/john-hancock-investment-management-announces-changes-to-municipal-fund-suite-bringing-additional-options-to-tax-free-income-investors-301668996.html

SOURCE John Hancock Investment Management

FAQ

What changes were announced for John Hancock's municipal fund suite on November 4, 2022?

The announcement included management fee reductions and lowered expense caps for several funds, leading to lower expense ratios.

How has the eligibility requirement for Class A shares changed as of August 1, 2022?

The eligibility requirement was reduced from $1 million to $250,000 for investments with no front-end sales charge.

What is the purpose of the newly launched John Hancock Short Duration Municipal Opportunities Fund?

The fund aims to seek total return exempt from federal income tax while preserving capital.

How will the changes to the municipal fund suite benefit shareholders?

Shareholders will benefit from lower expense ratios and increased accessibility to Class A shares.