BOSTON, July 13, 2015 /PRNewswire/ -- In a registration statement filed today with the U.S. Securities and Exchange Commission, John Hancock Investments disclosed that Dimensional Fund Advisors LP (Dimensional) was selected to manage six John Hancock multifactor exchange-traded funds (ETFs), leveraging Dimensional's long record of applying insight from academic research into a systematic investment process across asset classes. This rules-based, or strategic beta, approach seeks to improve outcomes for investors by focusing on additional factors outside of market capitalization that, through historical analysis, have been shown to have the potential for higher expected returns.
The Board of Trustees of John Hancock Exchange-Traded Fund Trust approved the ETF product offering in June 2015.
Dimensional started applying the concept of multifactor investing more than 30 years ago, and today the firm is one of the most well-respected managers in the industry. Dimensional's approach is rooted in decades of academic research into the factors that drive expected returns, along with a record of delivering results to investors. John Hancock Investments has had a relationship with Dimensional and its portfolio management teams since 2006, resulting in strategies being offered as both individual John Hancock mutual funds and through John Hancock asset allocation portfolios.
The suite of ETFs includes:
- John Hancock Multifactor Large Cap ETF
- John Hancock Multifactor Mid Cap ETF
- John Hancock Multifactor Consumer Discretionary ETF
- John Hancock Multifactor Financials ETF
- John Hancock Multifactor Healthcare ETF
- John Hancock Multifactor Technology ETF
As disclosed in the registration statement, each ETF will maintain an objective of seeking to provide investment results that closely correspond, before fees and expenses, to the performance of its underlying index; Dimensional will be designing the six underlying indexes. While the ETFs are passively managed, the indexes will embody Dimensional's multifactor investment philosophy and approach to portfolio construction, along with rules aimed at minimizing unnecessary or costly turnover.
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A registration statement containing a preliminary prospectus relating to the shares of each ETF has been filed with the Securities and Exchange Commission, but has not yet been declared effective. Information contained herein is subject to completion or amendment. These securities may not be sold nor may offers be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to buy or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration nor qualification under securities laws of any such state.
An indication of interest in response to this advertisement will involve no obligation or commitment of any kind.
The information contained in the prospectus is not complete and may be changed. No sales of the shares of an ETF may be made until the registration statement filed with the Securities and Exchange Commission is effective.
Investors are advised to carefully consider the investment objectives, risks, charges, and expenses of an ETF before investing. Each prospectus contains this and other important information about the relevant ETF and should be read carefully before investing. A copy of the preliminary prospectus for each ETF may be obtained from: 800-225-6020.
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.
The shares of the ETFs are not redeemable with the ETFs other than in Creation Unit aggregations. Instead, investors must buy or sell the ETF shares in the secondary market 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 risk, including the possible loss of principal. There is no guarantee strategies will be successful. Large company stocks could fall out of favor, and value stocks may decline in price. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The use of hedging and derivatives could produce disproportionate gains or losses and may increase costs. Please see the funds' prospectus for additional risks.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the shares of an ETF referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. Foreside Services, LLC, distributor.
Neither John Hancock Advisers, LLC (John Hancock) nor Dimensional Fund Advisors LP (Dimensional) guarantee the accuracy and/or the completeness of an underlying index or any data included therein, and neither John Hancock nor Dimensional shall have any liability for any errors, omissions, or interruptions therein. Neither John Hancock nor Dimensional make any warranty, express or implied, as to results to be obtained by an ETF, owners of the shares of the ETF, or any other person or entity from the use of an underlying index, trading based on an underlying index, or any data included therein, either in connection with an ETF or for any other use. Neither John Hancock nor Dimensional make any express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to an underlying index or any data included therein. Without limiting any of the foregoing, in no event shall either John Hancock or Dimensional have any liability for any special, punitive, direct, indirect, or consequential damages (including lost profits) arising out of matters relating to the use of an underlying index, even if notified of the possibility of such damages.
Dimensional is a trademark of Dimensional Fund Advisors LP.
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 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, and then applies vigorous investment oversight to ensure they continue to meet our uncompromising standards. Our unique approach to asset management has led to a diverse set of investments deeply rooted in investor needs, along with risk-adjusted returns across asset classes. John Hancock Investments managed nearly $130 billion in assets as of March 31, 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 by Manulife and its subsidiaries were C$821 billion (US$648 billion) as of March 31, 2015. 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.
SOURCE John Hancock Investments