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.
With the new fund, the companies are looking to “provide investors with access to credit strategies typically available to institutions and the potential for increased yield,” he added.
The fund will normally “invest at least 80% of its managed assets in credit instruments and other investments with similar economic characteristics,” the firms said.
“We believe the Fund may appeal to investors with its exposure to five distinct strategies through dynamic allocation, and is potentially well suited to an uncertain rate environment,” according to Leland Hart, head of U.S. loans and high yield at Alcentra, who is serving as one of the fund’s managers.
“One of Alcentra’s differentiating factors as a firm is our global credit footprint and broad bench of analysts who represent 14 countries with deep credit expertise along with knowledge of regional markets and legal structures,” he said.
BNY Mellon Securities Corporation, a wholly-owned subsidiary of BNYM Investment Adviser, was the fund’s principal underwriter and distributor in connection with the offering. Morgan Stanley Smith Barney and BofA Securities were the dealers in connection with the offering.
Clough Global Equity Fund Rights Offering
Clough Global Equity Fund announced the successful completion of its rights offering, saying a total of 2.2 million new common shares were made available through the offering.
The fund received subscriptions for more than 250% of the original offering and the shares were issued at $11.24 each as part of the over-subscription privilege of the rights offering.
Boston-based Clough Capital Partners, which managed about $1.7 billion in assets as of July 31, is serving as investment advisor to the fund, which had about $253 million in total assets as of Thursday, the firm said.
The fund is a closed-end fund using Clough Capital’s “research-driven, thematic process, with an investment objective of providing a high level of total return,” the firm said. The fund plans to “invest at least 80% of its net assets, including any borrowings for investment purposes, in equity and equity-related securities in both U.S. and non-U.S. markets, and the remainder in fixed income securities, including corporate and sovereign debt, in both U.S. and non-U.S. markets,” the company said.
Check out last week’s portfolio product roundup here: Goldman Sachs Plans Six Bond ETFs: Portfolio Products