John Hancock Investment Management Files Initial Registration Statement for New High Yield ETF Subadvised by Marathon Asset Management
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BOSTON, Feb. 1, 2024 /PRNewswire/ - John Hancock Investment Management, a company of Manulife Investment Management, today filed an initial registration statement with the Securities and Exchange Commission for a new actively managed John Hancock High Yield ETF (ticker: JHHY) anticipated to launch this year. The new ETF will be subadvised by Marathon Asset Management LP and is subject to all applicable regulatory approvals.
As disclosed in the initial registration statement, the objective of the ETF will be to seek to maximize current income. Capital appreciation will be a secondary goal. Under normal market conditions, the fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in U.S.-dollar-denominated high-yield corporate bonds.* For more information on the fund's principal investment strategy please refer to the initial registration statement.
The ETF will be managed by Louis Hanover, Chief Investment Officer, and Michael Schlembach, Managing Director and Senior Portfolio Manager, Marathon Asset Management.
"Marathon is well-known for its knowledge of the global credit market with decades of expertise in providing solutions across the credit universe. Its rigorous approach to credit analysis and keen understanding of the markets, based on bottom – up research allows for opportunistic investing in assets across the global credit markets," said Steve Deroian, co-head of retail product, John Hancock Investment Management.
"We are excited to expand Marathon's partnership with John Hancock Investment Management by bringing our US high yield strategy to a broad range of investors with JHHY," said Bruce Richards, CEO and Chairman of Marathon Asset Management. "We believe that the combination of John Hancock's strong platform alongside Marathon's expertise in credit make for a compelling value proposition for investors seeking efficient access to the high yield market with the benefit of a proven active manager in the space."
John Hancock Investment Management's ETF suite totals 13 funds with over $6 billion in assets under management as of 12/31/2023, including preferred income, mortgage-back securities, corporate bond, municipal bond, U.S. and international equity portfolios.
* Such corporate bonds are below-investment-grade securities rated from BB+ to D by S&P Global Ratings (S&P) or by Fitch Ratings, Inc. (Fitch) or from Ba1 to D by Moody's Investors Service, Inc. (Moody's), or a comparable rating by any nationally recognized statistical rating organization (NRSRO), or unrated equivalents (also called junk bonds).
A registration statement containing a preliminary prospectus (and statement of additional information) relating to the shares of the John Hancock High Yield 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. Shares of the ETF may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. The information contained in the prospectus (and statement of additional information) is not complete and may be changed.
This communication is not an offer to sell this security and is not a solicitation to buy this security in any state where the offer or sale is not permitted.
Investors are advised to carefully consider the investment objectives, risks, charges, and expenses of an ETF before investing. The prospectus contains this and other important information about the ETF and should be read carefully before investing. A copy of the preliminary prospectus for the ETF may be obtained by calling 800-225-5291.
Investing involves risks, including the potential loss of principal. There is no guarantee that a fund's investment strategy will be successful. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if an issuer is unable or unwilling to make principal or interest payments. Investments in higher-yielding, lower-rated securities include a higher risk of default. It is possible that an active trading market for fund shares will not develop, which may hurt your ability to buy or sell fund shares, particularly in times of market stress. Trading securities actively can increase transaction costs, therefore lowering performance and taxable distributions. Large company stocks could fall out of favor, and illiquid securities may be difficult to sell at a price approximating their value. The stock prices of small and midsize companies can change more frequently and dramatically than those of large companies. Foreign investing has additional risks, such as currency and market volatility and political and social instability. 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. Fund distributions generally depend on income from underlying investments and may vary or cease altogether in the future. Shares may trade at a premium or discount to their NAV in the secondary market. These variations may be greater when markets are volatile or subject to unusual conditions. There can be no assurance that active trading markets for the shares will develop or be maintained by market makers or authorized participants. Please see the fund's prospectus for additional risks.
John Hancock ETFs are distributed by Foreside Fund Services, LLC in the United States, and are subadvised by Boston Partners, Dimensional Fund Advisors LP or our affiliate Manulife Investment Management (US) LLC. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC, Boston Partners, Dimensional Fund Advisors LP, or Marathon Asset Management. The new ETF discussed in this press release will be subadvised by Marathon Asset Management LP.
Shares of the ETF are not redeemable with the ETF other than in creation unit aggregations. Instead, investors must buy or sell the ETF shares in the secondary market at market price (not NAV) 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.
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.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
About John Hancock Investment Management
A company of Manulife Investment Management, we serve investors through a unique multimanager approach, complementing our extensive in-house capabilities with an unrivaled network of specialized asset managers, backed by some of the most rigorous investment oversight in the industry. The result is a diverse lineup of time-tested investments from a premier asset manager with a heritage of financial stewardship.
About Manulife Investment Management
Manulife Investment Management is the brand for the global wealth and asset management segment of Manulife Financial Corporation. Our mission is to make decisions easier and lives better by empowering investors for a better tomorrow. Serving more than 17 million individuals, institutions, and retirement plan members, we believe our global reach, complementary businesses, and the strength of our parent company position us to help investors capitalize on today's emerging global trends. We provide our clients access to public and private investment solutions across equities, fixed income, multi-asset, alternative, and sustainability-linked strategies, such as natural capital, to help them make more informed financial decisions and achieve their investment objectives. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.
About Marathon Asset Management
Marathon Asset Management L.P. is a leading global asset manager specializing in the public and private credit markets with over $22 billion of assets under management. The firm was founded in 1998 and is managed by Bruce Richards (Co-Founder & CEO) and Louis Hanover (Co-Founder & CIO) and employs more than 180 professionals, with 9 Partners that include Christine Chartouni, Ed Cong, Jason Friedman, Jeff Jacob, Jamie Raboy, Andy Springer and Gaby Szpigiel. Its corporate headquarters is located in New York City, and it has offices in London, Miami, Los Angeles and Luxembourg. Marathon is a Registered Investment Adviser with the Securities Exchange Commission. For more information, please visit the company's website at marathonfund.com.
JHS-491465-2024-01-30
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SOURCE John Hancock Investment Management
