Mr. Patrick Murphy reports
JOHN HANCOCK RETIREMENT OFFERS NEW STABLE VALUE GUARANTEED INCOME FUND
John Hancock Retirement and John Hancock Investment Management, companies of Manulife Financial Corp.'s Manulife Investment Management, have launched John Hancock Stable Value Guaranteed Income Fund, a principal stable value option within John Hancock's lineup of retirement investments.
The fund seeks to provide plan participants with steady and stable returns, guaranteed principal and interest, and daily liquidity by investing in John Hancock's general account, a well-diversified portfolio of investment-grade fixed income investments.
The fund is offered through a group annuity contract, with underlying assets issued and guaranteed by the John Hancock Life Insurance Company. John Hancock Life Insurance Company has a more-than-30-year record of backing guaranteed interest contracts and has been a stable value asset manager since 2006, with total stable value assets under management above $2.7-billion with over 12,000 plans (1).
"John Hancock Stable Value Guaranteed Income Fund provides an option to retirement investors which can protect capital amid market volatility. The fund is also a great diversification tool for conservative investors and those nearing or in retirement," said Patrick Murphy, chief executive officer, John Hancock Retirement. "We are pleased to offer this option on our platform to assist advisers and consultants, plan sponsors, and participants in creating an investment lineup that meets each individual's unique needs."
From an industry perspective, the stable value asset class is the largest conservative investment option in defined contribution plans with over $839-billion in assets and is the most popular fixed income investment option (2).
"With the power of John Hancock and Manulife, one of the world's most valued insurance companies behind us, we are able to combine the strength of our balance sheet, with the innovation of our investment capabilities, to offer John Hancock Stable Value Guaranteed Income Fund," said Andrew Arnott, CEO, John Hancock Investment Management and head of wealth and asset management, United States and Europe, at Manulife Investment Management. "We are excited to introduce this new conservative investment option to our clients."
Effective immediately, the fund is available on the John Hancock Retirement open architecture platform. The fund will be launched on John Hancock's signature platform next year. The fund is available for 401(k), 401(a), governmental 457(b) and Taft-Hartley plans. It is fully portable and benefit responsive upon plan termination (3) and has no initial investment minimums. The expense ratio is 0.00 per cent (4).
About John Hancock and Manulife Financial Corp.
John Hancock is a unit of Manulife Financial, a leading international financial services group that helps people make their decisions easier and lives better. The company operates primarily as John Hancock in the United States, and Manulife globally, including Canada, Asia and Europe. It provides financial advice, insurance and wealth and asset management solutions for individuals, groups and institutions. Assets under management and administration by Manulife and its subsidiaries were over $1.2-trillion (Canadian) ($881-billion (U.S.)) as of Sept. 30, 2019.
About John Hancock Retirement
As of Sept. 30, 2019, John Hancock serviced over 60,000 plans with over 2.9 million participants* and over $172-billion in AUMA.
Participant counts reflect all active participants with a balance.
About Manulife Investment Management
Manulife Investment Management is the global wealth and asset management segment of Manulife Financial. The company draws on more than 150 years of financial stewardship to partner with clients across its institutional, retail and retirement businesses globally. Its specialist approach to money management includes the highly differentiated strategies of its fixed income, specialized equity, multiasset solutions, and private markets teams -- along with access to specialized, unaffiliated asset managers from around the world through its multimanager model (5) (6). The company's personalized, data-driven approach to retirement is focused on delivering financial wellness in retirement plans of all sizes to help plan participants and members retire with dignity.
(1) As of June 30, 2019.
(2) Stable Value Investment Association survey: Dec. 31, 2018.
(3) Non-benefit responsive transfers and withdrawals -- which occur as a result of plan termination, large-scale layoffs, sale of a business unit, or company merger -- are limited to 5 per cent of investments in SVGI per year at book value.
(4) Expense ratio is 0.00 per cent unless the plan determines to select certain product features that include the market value recovery or includes rev share which would add an additional expense that would be netted out of the plan's specific crediting rate.
(5) Public markets strategies managed by Manulife Investment Management, formerly known as Manulife Asset Management and John Hancock Asset Management. Manulife Investment Management's private markets platform offers long-term solutions across private equity and private credit, real estate equity and debt, infrastructure equity, timberland, and farmland.
(6) John Hancock Investment Management's multimanager approach oversees a global network of over 30 unaffiliated asset management firms, managing more than 100 investment strategies, in addition to its affiliated asset managers.
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