BOSTON, July 6, 2016 /PRNewswire/ -- John Hancock Investments today announced another sweeping package of expense reductions aimed at providing cost savings to investors in its suite of target-date Retirement Living Portfolios, as well as in four popular mutual funds. Together, these funds represent more than $14.4 billion in assets as of June 30, 2016, across multiple asset categories.
"At John Hancock Investments, we remain intensely focused on expenses and on ensuring that our funds are cost-effective for investors. That is an important facet of our goal of maximizing the value we provide our mutual fund shareholders," said Andrew G. Arnott, president and CEO of John Hancock Investments. "Investors and financial advisors have embraced our unique manager-of-managers approach because they value the more than 25 years' experience in manager research and oversight we put into every one of our funds. Our assets under management have grown as a result, and we're pleased that our growth is enabling us to share those greater economies of scale with our investors."
The expense reductions and new breakpoint schedule cover:
- John Hancock Retirement Living Portfolios—9 basis point reduction on all share classes across the suite
- John Hancock Enduring Assets Fund—30 basis point reduction on all share classes
- John Hancock Investment Grade Bond Fund—8 basis point reduction on all share classes
- John Hancock Strategic Income Opportunities Fund—Additional breakpoints added to the fund's expense schedule to help shareholders benefit from lower costs as the fund grows
- John Hancock Value Equity Fund—9 basis point reduction on all share classes
Additional details of these new expense reductions and breakpoint schedule can be found in the funds' and portfolios' latest prospectuses.
The move marks the firm's fifth set of expense reductions in the past four years—affecting more than 30 funds—including a 20 to 26 basis point (100 basis points equals one percentage point) reduction in 2014 for John Hancock Retirement Living Portfolios, the company's premier target-date suite and a qualified default investment option in many retirement plans.
All investments involve risk, including the possible loss of principal. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if an issuer, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. Value stocks may decline in price. Large company stocks could fall out of favor. The securities of small companies are subject to higher volatility than those of larger, more established companies. Investments in higher-yielding, lower-rated securities include a higher risk of default. Frequent trading may increase fund transaction costs and increase taxable distributions. 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. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Fund distributions generally depend on income from underlying investments and may vary or cease altogether in the future. An asset allocation portfolio's performance depends on the advisor's skill in determining asset class allocations, the mix of underlying funds, and the performance of those underlying funds, and it is subject to the same risks as the underlying funds and exchange-traded funds in which it invests. The principal value of each asset allocation portfolio is not guaranteed, and you could lose money at any time, including at, or after, the target date. Please see the portfolios' prospectuses for additional risks.
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The 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 us 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.
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$904 billion (US$676 billion) as of March 31, 2016. Manulife Financial Corporation trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK. Manulife can be found 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