$ unless otherwise
stated
TSX/NYSE/PSE: MFC SEHK: 945
BOSTON, Dec. 5, 2022
/PRNewswire/ - John Hancock Investment Management, a company of
Manulife Investment Management, today announced enhancements to the
John Hancock Freedom 529 education savings plan. The plan has
recently added a stable value portfolio to its investment options
and reduced fees on the John Hancock Freedom 529 education savings
plan.
"We understand that investors are prioritizing savings in this
current environment and we are happy to help our customers continue
their efforts to save for college, despite the current economic
uncertainty," said John Bryson, head
of investment consulting, education savings, and territory sales
strategists at John Hancock Investment Management. "Fee reductions
are helpful anytime, and Stable Value Portfolio provides an option
that can help protect capital amid market volatility or simply
serve as a diversification tool."
Stable Value Portfolio
Stable Value Portfolio, which seeks to maintain stability of
principal and maximize current income, joined John Hancock Freedom
529 education savings plan's lineup of investment options on
December 1, 2022.
Stable Value Portfolio invests in a separately managed account
contract (SAC) made up of broadly diversified fixed-income
securities, and may invest up to 5% of its portfolio in equity
securities in order to further diversify its holdings and
potentially enhance performance.
The underlying securities are managed by T. Rowe Price, and the SAC is issued by the
contract issuer through an agreement with the Education Trust of
Alaska that includes a guaranteed
minimum crediting rate (yield) to be backed by the contract issuer.
The crediting rate is reset monthly.
Money Market Portfolio and Short-Term Bond Portfolio have closed
as a result of the addition of Stable Value Portfolio. All existing
assets in these two portfolios have moved into Stable Value
Portfolio.
Fee Reductions
Earlier this fall, the John Hancock Freedom 529 education
savings plan also reduced total annual asset-based fees by
converting several underlying funds to the lowest cost share
classes available. The fee reductions were effective on
October 15, 2022.
The share class for the underlying fund American Mutual Fund
converted from Class F-1 to Class F-3, resulting in lower total
annual asset-based fees for eight portfolios. Additionally, each
existing T. Rowe Price underlying
mutual fund converted from Investor Class to I Class.
These changes resulted in lower total annual asset-based fees
for the portfolios that hold these underlying mutual funds. These
combined underlying share class changes affected 17 of the plan's
22 portfolios, with fee reductions ranging from 6 to 37 basis
points—an average reduction of 12%.1
The John Hancock Freedom 529 plan has been available to help
American families save toward higher education since 2001. The plan
design offers multiple investment strategies from multiple asset
managers and is overseen by the Education Trust
of Alaska, John Hancock Investment Management, and
T. Rowe Price, giving the plan additional investment
oversight. The John Hancock Freedom 529 education savings plan
has helped more than 100,000 students pay for college and currently
has approximately 225,000 accounts in the program, with assets
totaling over $5
billion.2
1 John Hancock Freedom 529
Plan Disclosure Document, as of 10/15/22.
|
2 T. Rowe Price, as of
9/30/22.
|
|
Diversification does
not guarantee a profit or eliminate the risk of a loss.
|
About John Hancock Investment
Management
A company of Manulife Investment Management, we serve investors
through a unique multimanager approach, complementing our extensive
in-house capabilities with an unrivaled network of specialized
asset managers, backed by some of the most rigorous investment
oversight in the industry. The result is a diverse lineup of
time-tested investments from a premier asset manager with a
heritage of financial stewardship.
About Manulife Investment
Management
Manulife Investment Management is the global brand for the
global wealth and asset management segment of Manulife Financial
Corporation. We draw on more than a century of financial
stewardship and the full resources of our parent company to serve
individuals, institutions, and retirement plan members worldwide.
Headquartered in Toronto, our
leading capabilities in public and private markets are strengthened
by an investment footprint that spans 19 geographies. We complement
these capabilities by providing access to a network of unaffiliated
asset managers from around the world. We're committed to investing
responsibly across our businesses. We develop innovative global
frameworks for sustainable investing, collaboratively engage with
companies in our securities portfolios, and maintain a high
standard of stewardship where we own and operate assets, and we
believe in supporting financial well-being through our workplace
retirement plans. Today, plan sponsors around the world rely on our
retirement plan administration and investment expertise to help
their employees plan for, save for, and live a better retirement.
Not all offerings are available in all jurisdictions. For
additional information, please visit manulifeim.com.
If your state or your designated beneficiary's state offers a
529 plan, you may want to consider what, if any, potential state
income-tax or other state benefits it offers, such as financial
aid, scholarship funds, and protection from creditors, before
investing. State tax or other benefits should be one of
many factors to be considered prior to making an investment
decision. Please consult with your financial, tax, or other
professional about how these state benefits, if any, may apply to
your specific circumstances. You may also contact your state 529
plan or any other 529 education savings plan to learn more about
their features. Please contact your financial professional or
call 866-222-7498 to obtain a Plan Disclosure Document or
prospectus for any of the underlying funds. The Plan Disclosure
Document contains complete details on investment objectives, risks,
fees, charges, and expenses, as well as more information about
municipal fund securities and the underlying investment companies
that should be considered before investing. Please read the Plan
Disclosure Document carefully prior to investing.
John Hancock Freedom 529 is an education savings plan offered by
the Education Trust of Alaska, managed by T. Rowe Price,
and distributed by John Hancock Distributors
LLC through other broker-dealers that have a selling
agreement with John Hancock Distributors LLC. John Hancock
Distributors LLC is a member of FINRA and is listed with the
Municipal Securities Rulemaking Board (MSRB). © 2022 John Hancock.
All rights reserved.
529 PLANS ARE NOT FDIC INSURED, MAY LOSE VALUE, AND ARE NOT BANK
OR STATE GUARANTEED.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/john-hancock-investment-management-adds-stable-value-portfolio-and-reduces-fees-on-john-hancock-freedom-529-education-savings-plan-301694564.html
SOURCE John Hancock Investment Management