Last week, John Hancock Investment Management LLC announced the availability of John Hancock Mortgage Backed Securities ETF (JHMB). The exchange-traded fund (ETF) is sub-advised by Manulife Investment Management (US) LLC, the asset manager affiliated with John Hancock Investment Management. This is the second actively managed fixed income ETF launched by John Hancock Investment Management this year, following the launch of John Hancock Corporate Bond ETF (JHCB) in March 2021.
“We are delighted to offer investors another ETF from the Fixed Income team at Manulife Investment Management,” said Andrew G. Arnott, CEO, John Hancock Investment Management and Head of Wealth and Asset Management, Manulife Investment Management, United States and Europe. “The team is highly regarded for their bottom-up sector allocation and stock selection process in making investment decisions, and we believe this fund is another solid example of their capabilities for investors interested in accessing this strategy in an ETF wrapper. “
The John Hancock Mortgage-Backed Securities ETF is actively managed and seeks a high level of current income while seeking to outperform the benchmark over a market cycle. Under normal market conditions, the fund invests at least 80% of its net assets (plus any borrowing for investment purposes) in mortgage backed securities. The fund may invest in mortgage related securities issued or guaranteed by US government entities and mortgage related securities issued by the private sector. These can include residential mortgage-backed securities, commercial mortgage-backed securities and advertised mortgage contracts and may be rated investment grade or less.
The ETF is managed by David A. Bees, CFA, Managing Director and Portfolio Manager, Peter M. Farley, CFA, Managing Director and Senior Portfolio Manager, and Jeffrey N. Given, CFA and Howard C. Greene, CFA, Senior Managing Directors and Senior Portfolio Managers, Manulife Investment Management.
“According to SIFMA, the market for mortgage-backed securities and other asset-backed securities is large and in demand, and represents more than $ 12 trillion bond market today, which is more important than the high-quality, high-yield corporate bond markets combined, ”added Steven L. Deroian, Co-Head of Retail Products, John Hancock Investment Management. “We are delighted to bring this new ETF to market in a growing category for asset distributors and advisers.
John Hancock Investment Management launched his first ETFs over five years ago. With the announcement, the company’s ETF offering grew to 17 ETFs with nearly $ 5 billion in assets under management at June 30, 2021, including mortgage-backed securities, corporate bonds, US and international equity portfolios and a range of industry-specific products.
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