John Hancock Investment Management made expense reductions on additional funds, decreasing fees on the affected funds by an average of 5.25 basis points, the company announced.
The decreases were a combination of direct management fee cuts, contractual expense cap reductions and new breakpoints mainly sourced via “growing economies of scale, providing additional value to shareholders,” the Manulife Investment Management division stated in a release.
Expense reductions were as low as 4 basis points and as high as 7 basis points, varying by fund and class, and offered immediate cost savings to shareholders, the firm said.
The John Hancock funds affected were: Investment Grade Bond Fund (TIUSX, with its net expense ratio lowered to 0.49% from 0.53%); Disciplined Value International Fund (JDIBX, net expense ratio lowered to 1.24% from 1.29%); New Opportunities Fund (JASOX, net expense ratio lowered to 1.16% from 1.21%); andFundamental All Cap Core Fund (JFCIX, net expense ratio lowered to 0.96% from 1.03%).
This was the second announcement made this year by John Hancock Investment Management regarding expense reductions. Reductions for its Multifactor Sector ETF suite, Floating Rate Income Fund and Small Cap Value Fund were made effective Jan. 1, 2019.
“Our shareholders are looking for the best place to invest, and regardless of how an investor implements our funds, comparing funds and fees is a part of the process to build a portfolio that suits an investor’s risk-and-return profile,” Andrew Arnott, president and CEO of John Hancock Investment Management and head of Wealth and Asset Management at Manulife Investment Management, U.S. and Europe, said in a statement.
“We continue to reduce fees across our offering so investors may find even more value when making their investment decisions,” he added.
RIA Alcentra, BNY Mellon Launch Multi-Asset Credit Fund
RIA Alcentra and investment firm BNY Mellon Investment Management are targeting retail investors with a new multi-asset credit fund, the companies said.
Pricing for an initial public offering of common shares of BNY Mellon Alcentra Global Multi-Strategy Credit Fund was set at $100 a share and 2.652 million shares are being offered to net gross proceeds of $265.2 million, the companies announced.
The fund is out to provide total return consisting of high current income and capital appreciation, the companies stated, noting it’s not being publicly traded and has a limited term of six years, subject to a one year extension by the fund’s board. BNY Mellon Investment Adviser is serving as the investment manager of the fund, while Alcentra NY is serving as the sub-investment advisor.
“It’s a challenging time right now in the markets for investors with a slowing global economy and a low interest rate environment with investors on the lookout for yield,” Andy Provencher, head of North America Distribution at BNY Mellon Investment Management, said in a statement.