John Hancock Investments [profile]
is paying it forward to investors.
| Todd Cassler|
John Hancock Investments
President of Institutional Distribution
The Boston-based investment manager cut fees on its suite of target date funds (TDFs) in addition to four other mutual funds comprised of $14.4 billion in total assets.
Changes to the fee structure, which MFWire
has learned took effect on July 1, include:
- John Hancock Retirement Living Portfolios: 9 basis point reduction
- John Hancock Enduring Assets Fund: 30 basis point reduction
- John Hancock Investment Grade Bond Fund: 30 basis point reduction
- John Hancock Strategic Income Opportunities Fund: additional breakpoints added to the fund's expense schedule
- John Hancock Value Equity Fund: 9 basis point reduction
The fee reductions apply to all share classes across the TDFs as well as the John Hancock Enduring Assets Fund
, the John Hancock Investment Grade Bond Fund
and the John Hancock Value Equity Fund
A catalyst for the fee changes is a rise in assets under management at John Hancock that the manager of managers wants to share with investors.
, president of institutional distribution at John Hancock Investments, tells MFWire
All else being equal, we’ve found that lower expenses tend to prompt greater interest and net inflows -- especially in the highly fee-sensitive retirement plan marketplace. Fee cuts can foster a virtuous circle that benefits retirement plan participants, plan fiduciaries, and, by extension, our business as well. We view this as a classic win-win-win scenario.
It's not the first time John Hancock Investments has introduced more competitive fees. "Prior to this month’s expense cuts, John Hancock Investments last enacted across-the-board fee reductions for John Hancock Retirement Living Portfolios
in 2014, a move that helped us promote a more cost-conscious, open-architecture active management target- date offering to plan fiduciaries," says Cassler.
Details of the fee changes will become available in the latest fund prospectuses.
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