John Hancock Investment Management launches actively managed Mortgage-Backed Securities ETF subadvised by Manulife Investment Management

Rhea-AI Summary

On August 19, 2021, John Hancock Investment Management launched the John Hancock Mortgage-Backed Securities ETF (ticker: JHMB), subadvised by Manulife Investment Management. This is the second actively managed fixed-income ETF introduced in 2021, with the first being the John Hancock Corporate Bond ETF (ticker: JHCB) in March. The new ETF aims for high current income, investing at least 80% of its net assets in mortgage-backed securities. As of June 30, 2021, John Hancock's ETF offerings grew to 17, managing nearly $5 billion in assets.

Positive

• Launch of John Hancock Mortgage-Backed Securities ETF (JHMB) enhances investor options.
• The ETF targets high current income and aims to outperform its benchmark.
• John Hancock now manages 17 ETFs with nearly $5 billion in assets under management.

Negative

• None.

TSX/NYSE/PSE: MFC SEHK: 945

BOSTON, Aug. 19, 2021 /PRNewswire/ - John Hancock Investment Management LLC today announced the availability of John Hancock Mortgage-Backed Securities ETF (ticker: JHMB). The exchange-traded fund (ETF) is subadvised by Manulife Investment Management (US) LLC, John Hancock Investment Management's affiliated asset manager. It is the second actively managed fixed-income ETF launched by John Hancock Investment Management this year, following the launch of John Hancock Corporate Bond ETF (ticker: JHCB) in March 2021.

"We're pleased to bring another ETF from the Manulife Investment Management fixed-income team to investors," said Andrew G. Arnott, CEO, John Hancock Investment Management and head of wealth and asset management, Manulife Investment Management, United States and Europe. "The team is highly regarded for its bottom-up sector allocation and security selection process in making investment decisions, and we believe this fund is another strong example of their capabilities for those investors interested in accessing this strategy in an ETF wrapper."

John Hancock Mortgage-Backed Securities ETF is actively managed and seeks a high level of current income while seeking to outperform the benchmark over a market cycle. Under normal market conditions, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in mortgage-backed securities. The fund may invest in mortgage-related securities issued or guaranteed by U.S. governmental entities and privately issued mortgage-related securities. These may include residential mortgage-backed securities, commercial mortgage-backed securities, and to-be-announced mortgage contracts and may be rated investment grade or below.

The ETF is managed by David A. Bees, CFA, managing director and portfolio manager, Peter M. Farley, CFA, managing director and senior portfolio manager, and Jeffrey N. Given, CFA, and Howard C. Greene, CFA, senior managing directors and senior portfolio managers, Manulife Investment Management.

"According to SIFMA, the market for mortgage-backed and other asset-backed securities is large and in demand, and represents over $12 trillion of the bond market today, which is larger than the investment-grade and high-yield corporate bond markets combined," added Steven L. Deroian, co-head of retail product, John Hancock Investment Management. "We're excited to bring this new ETF to market in a growing category for asset allocators and advisors."

John Hancock Investment Management launched its first ETFs more than five years ago. With this announcement, the firm's ETF offering has grown to 17 ETFs with nearly $5 billion in assets under management as of June 30, 2021, including mortgage-back securities, corporate bond, U.S. and international equity portfolios, and a range of sector-specific products.

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 prospectus may be obtained by calling 800-225-6020. Please read the prospectus carefully before investing.

John Hancock Corporate Bond ETF and John Hancock Mortgage-Backed Securities ETF are distributed by Foreside Fund Services, LLC in the United States. Foreside is not affiliated with John Hancock Investment Management 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.

Investing involves risks, including the potential loss of principal. Mortgage-backed and asset-backed securities are subject to different combinations of prepayment, extension, interest-rate, and other market risks. Factors that impact the value of these securities include interest-rate changes, the reliability of available information, credit quality or enhancement, and market perception.

© 2021 John Hancock Investment Management. All rights reserved. 

There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results. This material is for informational purposes only and is not intended to be, nor shall it be interpreted or construed as, a recommendation or providing advice, impartial or otherwise, regarding any security, mutual fund, ETF, sector, or index. Investors should consult with their financial professional before making any investment decisions.

The shares of the ETFs do not represent a deposit or an obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency.

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.

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 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 18 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.

As of June 30, 2021, Manulife Investment Management's assets under management and administration, including assets managed for Manulife's other segments, totaled CAD$1.0 trillion (US$834 billion). Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

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SOURCE John Hancock Investment Management

FAQ

What is the John Hancock Mortgage-Backed Securities ETF (JHMB)?

The JHMB is an actively managed ETF that seeks high current income by investing at least 80% of its net assets in mortgage-backed securities.

When was the John Hancock Mortgage-Backed Securities ETF launched?

The ETF was launched on August 19, 2021.

What was the asset management growth for John Hancock ETFs as of June 30, 2021?

As of June 30, 2021, John Hancock's ETFs managed nearly $5 billion in assets.

What is the first actively managed ETF launched by John Hancock in 2021?

The first actively managed ETF launched by John Hancock in 2021 is the John Hancock Corporate Bond ETF (JHCB), which was introduced in March.