John Hancock Floating Rate Income Fund Marks Fifth Anniversary
A top performer in Morningstar's Bank Loan category over five years
BOSTON, Feb. 1, 2013
BOSTON, Feb. 1, 2013 /PRNewswire/ --John Hancock Funds announced that the
John Hancock Floating Rate Income Fund (Class A: JFIAX; Class I: JFIIX)
recently marked its fifth anniversary. For the five-year period ended
December 31, 2012, the fund's Class I shares rank in the top two percent of
Morningstar's Bank Loan category; while the Class A shares rank in the top
Sub-advised by Western Asset Management Company (WAMCO), under the supervision
of John Hancock Investment Management Services (IMS), the Fund's investment
objective is to seek a high level of current income. The Fund's Class A and I
shares were both launched on January 2, 2008. The John Hancock Floating Rate
Income Fund had approximately $2.8 billion in assets as of December 31, 2012.
"We congratulate the portfolio management team at Western Asset Management
Company on achieving this milestone with the John Hancock Floating Rate Income
Fund," said Andrew G. Arnott, President & CEO, John Hancock Funds. "The Fund
offers investors attractive levels of current income, and may provide
protection against rising interest rates and an appealing way to diversify
their portfolios, as bank loans have historically provided a lower correlation
to other traditional fixed-income and equity asset classes. Moreover, the Fund
is yet another example of the extensive, ongoing research we perform in order
to provide mutual fund investors with access to proven institutional asset
management expertise and products that would otherwise not be available to
Western Asset Management is one of the world's premier fixed-income managers.
The portfolio management team for the John Hancock Floating Rate Income Fund
includes Portfolio Manager Timothy J. Settle; Stephen Walsh, CIO of WAMCO; and
Michael Buchanan, CFA, Head of Credit.
The Fund invests primarily in floating rate loans, which often include debt
securities of domestic and foreign issuers that are rated below investment
grade (rated below Baa or BBB by a rating organization such as Moody's
Investor Services or Standard & Poor's), at the time of purchase, or are of
comparable quality, as determined by the subadviser, and other floating rate
"We are very pleased with the success of the fund over the last five years,"
said Mr. Settle, Portfolio Manager. "The team at John Hancock has done a
tremendous job raising awareness among investors about the benefits of
including bank loans in their portfolios. In our view, bank loans continue to
offer an attractive yield relative to other asset classes today and should
benefit from rising rates and improving company fundamentals."
The Class I shares are currently rated 5 stars, the Class A load-waived shares
are rated 4 stars, and the Class A shares with load are rated 3 stars by
Morningstar. Class I shares were rated 4 stars out of 134 funds and 5 stars
out of 110 funds for the 3- and 5-year periods, respectively, as of December
31, 2012, by Morningstar. The Class A load-waived shares were rated 3 stars
out of 134 funds and 5 stars out of 110 funds for the 3- and 5-year periods,
respectively. Class A shares with load were rated 2 stars out of 134 funds
and 4 stars out of 110 funds for the 3- and 5-year periods, respectively.
Class I and Class A shares share a common portfolio of investments, but have
difference expense structures.
About Western Asset Management
Western Asset Management is one of the world's premier fixed-income managers.
With offices in Pasadena, New York, London, Tokyo, Singapore, Hong Kong,
Melbourne and Sao Paulo, Western's only business is fixed income. For more
information, please visit www.westernasset.com.
About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial, John
Hancock Funds manages more than $77.8 billion in open-end funds, closed-end
funds, private accounts, college savings and retirement plans, and related
party assets for individual and institutional investors as at September 30,
About John Hancock Financial and Manulife Financial
John Hancock Financial is a division of Manulife Financial, a leading
Canada-based financial services group with principal operations in Asia,
Canada and the United States. Operating as Manulife Financial in Canada and
Asia, and primarily as John Hancock in the United States, the Company offers
clients a diverse range of financial protection products and wealth management
services through its extensive network of employees, agents and distribution
partners. Funds under management by Manulife Financial and its subsidiaries
were C$515 billion (US$523 billion) as at September 30, 2012. Manulife
Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under
'945' on the SEHK. Manulife Financial can be found on the Internet at
The John Hancock unit, through its insurance companies, comprises one of the
largest life insurers in the United States. John Hancock offers a broad range
of financial products and services, including life insurance, annuities, fixed
products, mutual funds, 401(k) plans, long-term care insurance, college
savings, and other forms of business insurance. Additional information about
John Hancock may be found at johnhancock.com.
Fixed-income investments are subject to interest-rate and credit risk; their
value will normally decline as interest rates rise or if the creditor is
unable or unwilling to make principal or interest payments. Investments in
higher-yielding, lower-rated securities involve additional risks as these
securities include a higher risk of default and loss of principal. If the Fund
invests in illiquid securities, it may be difficult to sell them at a price
approximating their value. Foreign investing, especially in emerging markets,
has additional risks, such as currency and market volatility and political and
social instability. The Fund may invest its assets in a small number of
issuers. Performance could suffer significantly from adverse events affecting
these issuers. The distribution rate and income amounts reflect past amounts
distributed and may not be indicative of future rates or income amounts. The
distribution amounts paid by the Fund generally depend on the amount of income
and/or dividends received by the Fund's investments. The Fund may not be able
to pay distributions or may have to reduce its distribution level if the
amount of such income and/or dividends received from its investment declines.
Therefore, distribution rates and income amounts can change at any time. For
additional information on these and other risk considerations, please see the
Past performance is no guarantee of future results. A fund's investment
objectives, risks, charges and expenses should be considered carefully before
investing. The prospectus contains this and other important information about
the Fund. To obtain a prospectus, contact your financial professional, call
John Hancock Funds at 1-800-225-5291 or visit our Web site at www.jhfunds.com.
Please read the prospectus carefully before investing or sending money.
The Morningstar rating methodology rates funds based on an enhanced
Morningstar Risk-Adjusted Return measure. Within the Morningstar Bank Loan
Category, the top 10% of funds receive five stars, the next 22.5% four stars,
the middle 35% three stars, the next 22.5% two stars, and the bottom 10%
receive one star. Funds are rated for up to three time periods--three-, five-,
and 10 years--and these ratings are combined to produce an overall rating.
The fund's adviser has waived a portion of its management fee and/or
reimbursed or paid operating expenses of the fund. Without such waiver and/or
reimbursement, the fund's returns for the periods indicated would be lower.
SOURCE John Hancock Funds
Contact: Beth McGoldrick, +1-617-663-4751, email@example.com
Press spacebar to pause and continue. Press esc to stop.