John Hancock Reduces Fees on Global Absolute Return Strategies and Sovereign Investors Funds
BOSTON, July 8, 2013 /PRNewswire/ -- John Hancock has added a new management fee breakpoint for the John Hancock Global Absolute Return Strategies Fund (Class A: JHAAX) and decreased a breakpoint in the management fee schedule for the John Hancock Sovereign Investors Fund (Class A: SOVIX). Both fee reductions were effective July 1, 2013.
"We are pleased to announce our second set of fee reductions in as many months. We are focused on driving higher investment value for our shareholders because we know the only way we can be successful as an asset manager is if our shareholders are successful," said Andrew G. Arnott, President & CEO of John Hancock Funds, LLC.
John Hancock Global Absolute Return Strategies Fund (GARS) added a new management fee breakpoint, decreasing the management fee by 5 basis points on all assets over $3 billion. Based on the fund's current assets of $3.6 billion (as of June 30, 2013), shareholders will see an immediate savings of approximately one basis point.
"GARS is an example of the solutions John Hancock can bring to our customers by providing them access to high quality portfolio management talent from around the world," said Mr. Arnott. "As a manager John Hancock has a nearly $90 billion book of asset allocation assets, and naturally views our product line with an asset allocation mindset. We understand firsthand the challenges financial advisors and shareholders face in building better portfolios. The growth and demand seen in GARS reflect the fact that John Hancock identified an investment need among our customers and set out to solve it, through our process of finding highly skilled managers."
Launched late in 2011, GARS has been one of the fastest-growing funds for John Hancock. "GARS crossed the $3 billion in assets milestone in just 17 months and as a result has achieved greater efficiencies. The new breakpoint we are adding today and resulting expense reduction allow John Hancock to share those economies of scale with shareholders," Arnott added.
John Hancock is also lowering fees on the John Hancock Sovereign Investors Fund by decreasing the management fee on the first breakpoint from 60 basis points to 57.5 basis points. Based on the fund's current assets of $570 million (as of June 30, 2013), shareholders will see an immediate savings of 2.5 basis points. "John Hancock Sovereign Investors Fund is one of the oldest funds in the mutual fund industry. It was launched in 1936 and has a long history of seeking to invest in the securities of companies that have the potential to raise their dividends. We are pleased to be able to lower fees for the fund's long-term and loyal shareholders," Arnott said.
The new fee reductions follow John Hancock's June announcement whereby new fee schedules were implemented for John Hancock Classic Value Fund (Class A: PZFVX), John Hancock U.S. Global Leaders Growth Fund (Class A: USGLX), and John Hancock Alternative Asset Allocation Fund (Class A: JAAAX). Previously, in 2012, John Hancock Funds implemented a lower expense cap on John Hancock Core High Yield Fund (Class A: JYIAX), which resulted in a total expense reduction of six basis points. John Hancock Government Income Fund (Class A: JHGIX) also instituted a lower expense cap in 2012, reducing advisory fees by eight basis points. Additional details are available in the funds' prospectuses.
About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial, John Hancock Funds is a world-class provider of asset management solutions, utilizing a unique best of breed, "manager of managers" model with an asset allocation mindset. We partner with affiliated and non-affiliated asset managers from around the world through objective manager selection and diligent oversight. John Hancock Funds manages open-end funds, closed-end funds, college savings assets, retirement plans and related party assets for individual and institutional investors.
About John Hancock Financial and Manulife Financial
John Hancock Financial is a division of Manulife Financial, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Operating as Manulife Financial in Canada and Asia, and primarily as John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were C$555 billion (US$547 billion) as at March 31, 2013. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at manulife.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, mutual funds, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.
SOURCE John Hancock Funds