John Hancock Investments adopts state-of-the-art liquidity stress testing across its mutual fund lineup
Enhanced risk monitoring capability reflects growing significance of liquidity risk in today's markets.
BOSTON, Dec. 7, 2015 /PRNewswire/ -- John Hancock Investments said today that it is implementing MSCI's industry-leading LiquidityMetrics tool as a means to help assess the liquidity of securities held in its mutual fund portfolios. The technology allows Hancock to stress test the liquidity of its funds, measure the potential impact of various market scenarios, and evaluate potential transaction costs, liquidation time horizons, amounts available for liquidation, and other critical information.
"The 2008 financial crisis and subsequent regulatory changes put a premium on identifying liquidity-related risks before they become a problem," said Andrew G. Arnott, president and CEO. "However, until recently the technology available in our industry for analyzing those risks was imperfect and often limited to equities. By adopting MSCI's platform, our goal is to be best in class in terms of liquidity risk management and monitoring, with an even deeper understanding of the liquidity profile of our funds. We're pleased to be an early adopter of this technology in the asset management industry. We think it's the right thing to do for our shareholders."
MSCI first introduced its LiquidityMetrics platform in 2013 at a time when increasing regulatory controls were reducing the number of fixed-income market makers, leaving corporate bonds and other securities more vulnerable to liquidity shocks. "The significance of liquidity risk has steadily increased over the past several years," said Leo M. Zerilli, head of investments. "Risk management is a critical part of the role we perform as investment advisor to the John Hancock funds, and our dedicated risk team is focused on these issues every day. As a manager of managers, this enhancement enables us to raise the bar on the risk management oversight we provide for our shareholders and that supports our global line up of investment managers."
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. A fund's prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
About John Hancock Investments
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of America's strongest and most-recognized brands. As a manager of managers, John Hancock Investments searches the world to find proven portfolio teams with specialized expertise for every fund we offer, then we apply vigorous investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Our unique approach to asset management has led to a diverse set of investments deeply rooted in investor needs, along with strong risk-adjusted returns across asset classes. John Hancock Investments managed more than $127 billion in assets as of September 30, 2015.
About John Hancock Financial and Manulife
John Hancock Financial is a division of Manulife, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Operating as Manulife in Canada and Asia, and primarily as John Hancock in the United States, our group of companies offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Assets under management and administration by Manulife and its subsidiaries were C$888 billion (US$663 billion) as at September 30, 2015. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife 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, investments, 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.
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SOURCE John Hancock Investments
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