John Hancock Investment Management announces licensing agreement for active semi- transparent ETF structure
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BOSTON, June 2, 2021 /PRNewswire/ - John Hancock Investment Management, a company of Manulife Investment Management, announced today it has filed an application for an exemptive order to utilize Fidelity Investments’ (“Fidelity”) proprietary active equity ETF methodology to develop new ETFs. The use of the methodology will allow John Hancock Investment Management to add additional capabilities to its offering for investors.
“We are happy to have a partner like Fidelity who has the experience and expertise in developing a semi-transparent ETF structure and will allow us to continue to innovate our product offering for clients,” said Andrew G. Arnott, CEO, John Hancock Investment Management and head of wealth and asset management, Manulife Investment Management, United States and Europe. “As a firm that strongly believes in the power of active management, developing our active ETF offering, while providing our investment teams with peace of mind through the use of Fidelity’s structure, is a true win – win.”
“As the ETF landscape continues to evolve, with investors becoming more aware of the potential benefits of the semi-transparent ETF structure, we are pleased to have the opportunity to develop the capability and plan for the future ETF investor,” added Steven L. Deroian, co-head of retail product, John Hancock Investment Management.
John Hancock Investment Management launched its first ETFs more than five years ago. The firm’s ETF offering has grown to 16 ETFs with more than $4.5 billion in assets under management, and includes corporate bond, U.S. and international equity portfolios, and a range of sector-specific products.
“We are excited to have John Hancock Investment Management license Fidelity’s active equity ETF methodology as they work to develop an innovative ETF offering for their clients,” said Greg Friedman, Head of ETF Management and Strategy at Fidelity. “We believe Fidelity’s methodology is an industry leading approach, designed to operate seamlessly within the existing ETF market.”
Fidelity’s active equity ETF model employs an innovative “tracking basket” methodology, which maintains the benefits of the ETF structure, provides information to market participants to promote efficient trading of shares, and preserves the ability to add value through active management.
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 global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 17 countries and territories. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We’re committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement.
As of March 31, 2021, Manulife Investment Management had CAD $764.1 billion (US $607.6 billion) in assets under management and administration. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.
Request a prospectus or summary prospectus from your financial professional, by visiting jhinvestments.com/etf, 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.
John Hancock ETFs are distributed by Foreside Fund Services, LLC in the United States, and are advised by John Hancock Investment Management LLC. Foreside is not affiliated with John Hancock Investment Management LLC.
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.
Investing involves risks, including the potential loss of principal.
There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results. This material is for informational purposes only and is not intended to be, nor shall it be interpreted or construed as, a recommendation or providing advice, impartial or otherwise, regarding any security, mutual fund, ETF, sector, or index. Investors should consult with their financial professional before making any investment decisions.
The shares of the ETF 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.
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.
The “tracking basket” methodology maintains confidentiality of a portfolio’s securities and trading strategies by disclosing a “tracking basket” comprised of select recently disclosed portfolio holdings, liquid U.S. ETFs that convey information about the types of instruments in which the fund invests, and cash and cash equivalents. This “tracking basket” is disclosed daily and is used to facilitate the creation and redemption process.
No products or investment vehicles offered by JOHN HANCOCK INVESTMENT MANAGEMENT are sponsored, endorsed, sold, or promoted by FIDELITY or any of its affiliates.
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SOURCE John Hancock Investment Management