Following recent reductions by Fidelity and Vanguard, John Hancock Investments announced its own expense reductions aimed at providing cost savings to investors in its suite of target-date Retirement Living Portfolios, as well as in four mutual funds.
Together, according to the company, these funds represent $14.4 billion in assets as of June 30, 2016.
“At John Hancock Investments, we remain intensely focused on expenses and on ensuring that our funds are cost-effective for investors,” Andrew G. Arnott, president and CEO of John Hancock Investments, said in a statement. “That is an important facet of our goal of maximizing the value we provide our mutual fund shareholders.”
The expense reductions and new break point schedule cover:
- John Hancock Retirement Living Portfolios—9 basis point reduction on all share classes across the suite
- John Hancock Enduring Assets Fund—30 basis point reduction on all share classes
- John Hancock Investment Grade Bond Fund—8 basis point reduction on all share classes
- John Hancock Strategic Income Opportunities Fund—Additional breakpoints added to the fund’s expense schedule to help shareholders benefit from lower costs as the fund grows
- John Hancock Value Equity Fund—9 basis point reduction on all share classes
Additional details of these new expense reductions and break point schedule can be found in the funds’ and portfolios’ latest prospectuses.
The move marks the firm’s fifth set of expense reductions in the past four years—affecting 30 funds—including a 20 to 26 basis point reduction in 2014 for John Hancock Retirement Living Portfolios, the company’s target-date suite and a qualified default investment option in many retirement plans.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
