John Hancock Investment Management launches actively managed Corporate Bond ETF
John Hancock Investment Management has launched the John Hancock Corporate Bond ETF (JHCB). The exchange-traded fund (ETF) is the first fixed-income ETF advised by the firm and is sub-advised by Manulife Investment Management (US) LLC, John Hancock Investment Management's affiliated asset manager.
The new ETF is actively managed and seeks a high level of current income consistent with prudent investment risk. Under normal market conditions, it invests at least 80 per cent of its net assets (plus any borrowings for investment purposes) in corporate bonds. The ETF is managed by Jeffrey N Given, CFA, senior managing director and senior portfolio manager, and Howard C Greene, CFA, senior managing director and senior portfolio manager, Manulife Investment Management.
"We're excited about our product line expansion and thrilled to enter the fixed-income ETF space by offering expanded access to the investment expertise of Howard and Jeff and the fixed-income team," says Andrew G Arnott, CEO, John Hancock Investment Management and head of wealth and asset management, Manulife Investment Management, United States and Europe. "This is the first ETF managed by Manulife Investment Management to be distributed in the US and represents a new opportunity for investors who are familiar with our fixed-income management capabilities but prefer the ETF wrapper."
The investment capability available to investors through John Hancock Corporate Bond ETF is inherent to the team's investment process.
"We continue to see demand from ETF investors who would like additional tools to be more granular in this environment to maintain diversification and manage risk in their portfolios," adds Steven L Deroian, co-head of retail product, John Hancock Investment Management." JHCB gives investors this access in an actively managed ETF focused on investment-grade corporate bonds."
John Hancock Investment Management LLC has also filed a preliminary registration statement for the launch of two additional fixed-income ETFs: John Hancock Mortgage Backed Securities ETF and John Hancock Ultra Short Income ETF.
John Hancock Mortgage [Backed Securities] ETF will seek a high level of current income while seeking to outperform its benchmark [over a market cycle] and will invest at least 80 per cent of its net assets (plus any borrowings for investment purposes) in [mortgage-backed securities].
John Hancock Ultra Short Income ETF will seek a high level of current income consistent with the maintenance of liquidity and the preservation of capital. The ETF's average weighted duration will be under one year. There is no limit on average maturity.
Both ETFs will also be managed by a team at Manulife Investment Management including Jeffrey Given and Howard Greene, and David A Bees, CFA, managing director and portfolio manager and Peter M Farley, CFA, managing director and senior portfolio manager.