John Hancock Investments lowers fund expenses

BOSTON, July 10, 2017 /PRNewswire/ -- John Hancock Investments today announced expense reductions on six mutual funds and two closed-end funds that together represent more than $6.9 billion in assets under management. Reductions of up to 20 basis points—or as much as 17% per fund—vary by fund and result from a combination of direct management fee cuts, contractual expense caps, new breakpoints, and growing economies of scale.

The announcement marks the third expense reduction this year for John Hancock Investments. In April, the firm implemented new fee schedules for John Hancock Seaport Fund and John Hancock Emerging Markets Fund; in February, it cut fees on some of its target-date portfolios for the defined contribution retirement plan marketplace, following multiple rounds of expense reductions since 2014.

"At John Hancock Investments, we remain intensely focused on expenses and on ensuring that our funds are competitively priced 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.

One factor that has helped create the opportunity to repeatedly lower expenses in recent years has been an increase in assets under management at John Hancock Investments and the greater economies of scale that provides. The firm experienced positive net flows in 17 of the past 20 calendar quarters, and assets in the firm's mutual funds, 529 college savings plan, and closed-end funds increased 12.7% on a year-over-year basis through the end of June 2017. This dramatic growth has been driven in large part by the firm's exceptionally strong performance, with 46 funds rated four or five stars by Morningstar at the highest-rated share class.¹  

"Investors and financial advisors have increasingly turned to our unique multimanager approach because they value the nearly three decades of experience in manager research and oversight we put into every one of our funds," explained Mr. Arnott. "We are pleased that we have been able to offer this unparalleled level of expertise while continually managing expenses through fee reductions in recent years to enhance the level of value that we provide to shareholders."

The latest round of fee reductions is effective July 1, 2017.

For John Hancock mutual funds benefiting from the reductions, the following table lists total annual fund operating expenses after expense reimbursements as they applied previously to Class A and Class I shares (where Class I shares are available) compared with the new expense levels. The funds below may offer additional share classes.

Additional information on these expense reductions, including details about their impact on other fund share classes, can be found in the funds' latest prospectuses.

In addition, contractual reductions to advisory fees apply to two closed-end funds, resulting in the following reductions to the funds' total expense ratios, effective July 1, 2017:

Investing involves risks, including the potential loss of principal. These products carry many individual risks, including some that are unique to each fund. Please see each funds' prospectuses to learn all of the risks associated for each investment.

As is the case with all closed-end funds, shares of this fund may trade at a discount to the fund's net asset value (NAV). An investment in the fund is subject to investment and market risks, including the possible loss of the entire principal invested. There is no guarantee prior distribution levels will be maintained, and distributions may include a substantial return of capital, which may increase the potential gain or reduce the potential loss of a subsequent sale. Fixed-income investments are subject to interest-rate risk; their value will normally decline as interest rates rise. An issuer of securities held by the fund may default, have its credit rating downgraded, or otherwise perform poorly, which may affect fund performance. The fund's use of leverage creates additional risks, including greater volatility of the fund's NAV, market price, and returns. There is no assurance that the fund's leverage strategy will be successful. Investing in derivative instruments involves risks different from, and in some cases greater than, the risks associated with investing directly in securities and other traditional investments. In an illiquid market, derivatives could become harder to value or sell.

About John Hancock Investments
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of the strongest and most-recognized financial brands. We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Our 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 CAD $1 trillion (US $754 billion) as of March 31, 2017. 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.

Request a prospectus or summary prospectus from your financial advisor, 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. If you are interested in investing in any of the John Hancock closed-end funds, please contact your financial professional. For current fund information or to request closed-end fund literature, call 800-843-0090 or visit our website at jhinvestments.com. For account information, call 800-852-0218.

1 Data is as of 6/30/17. For each managed product, including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts, with at least a 3-year history, Morningstar calculates a Morningstar rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a fund's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. Exchange-traded funds and open-end mutual funds are considered a single population for comparative purposes. The top 10.0% of funds in each category, the next 22.5%, 35.0%, 22.5%, and bottom 10.0% receive 5, 4, 3, 2, or 1 star(s), respectively. The overall Morningstar rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar rating metrics. The rating formula most heavily weights the 3-year rating, using the following calculation: 100% 3-year rating for 36 to 59 months of total returns, 60% 5-year rating/40% 3-year rating for 60 to 119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. Star ratings do not reflect the effect of any applicable sales load. Past performance does not guarantee future results

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