BOSTON, Jan. 22, 2025 /PRNewswire/ – John Hancock Investment Management, a company of Manulife Wealth & Asset Management, announced today that it has launched John Hancock CQS Asset Backed Securities Fund (the fund) with its affiliated investment manager Manulife | CQS Investment Management (Manulife | CQS), a London-based multi-sector alternative credit specialist.
The fund’s investment objective is to seek to generate a return comprised of both current income and capital appreciation. The Manulife | CQS team looks to access diversified and steady sources of income in an actively managed portfolio of asset backed securities (ABS) such as residential and commercial mortgages, bank regulatory capital and collateralized loan obligations. In pursuit of the fund’s objective, the portfolio managers seek to achieve risk-adjusted returns by investing in ABS subsectors that have exhibited low correlations to credit and equity markets. The team seeks to enhance returns by exploiting inefficiencies in the pricing of credit and related risks in the ABS market, while seeking to buffer volatility and mitigate risk.
“We’re thrilled to announce the launch of our second fund in collaboration with Manulife | CQS Investment Management. This fund brings their expertise in asset-backed securities investing to advisors and their clients, catering to the growing demand for alternative investment solutions,” said Kristie Feinberg, Head of U.S. and Europe at Manulife Investment Management, and John Hancock Investment Management’s President and CEO. “This new fund offers investors additional opportunities to diversify their credit allocation, potentially increase income, and leverage the broader benefits of the asset class with the seasoned management of the Manulife | CQS team.”
“ABS is at the very core of our alternative credit platform, a strategy we’ve been managing for the better part of 19 years,” said Soraya Chabarek, CEO, Manulife | CQS Investment Management. “Launching alongside our Multi Asset Credit strategy on the John Hancock fund platform will offer a line-up that is focused on income generation potential while mitigating the downside. We are excited about what ABS markets can offer John Hancock investors: a diversifier to their credit allocations and the potential for high levels of stable income through accessing the real economy. We think the real benefit of ABS is its global, diversified nature, allowing our dedicated ABS team to select the right geographies, sectors, and different parts of the capital structure to help seek consistent risk-adjusted returns.”
Jason Walker, Co-Chief Investment Officer of Manulife | CQS Investment Management and portfolio manager of the fund said, “I’ve been investing in ABS markets for almost 30 years and on average my dedicated team has been active in these markets for 20 years. It is an exciting space and a $4.5 trillion market. We see compelling opportunities for investors across ABS subsectors which have historically exhibited low correlation to broader equity and credit markets. To take advantage of opportunities, detailed bottom-up credit analysis and sophisticated analytics capabilities are essential. We focus on assets that may offer high levels of income, which serve to help buffer portfolios against volatility. We also look for strong credit quality that can help to protect against potentially deteriorating macroeconomic and borrowing conditions.”
John Hancock Investment Management continues to expand its alternative investment capabilities having launched three alternative funds last year including: John Hancock CQS Multi Asset Credit Fund Class I, John Hancock Disciplined Value Global Long/Short Fund Class I, and John Hancock Manulife Private Credit Plus Fund Class I. The firm believes interest in alternative and private markets solutions will continue to grow and provides a range of additional strategies to meet the demand of advisors, their clients, and qualified investors through multiple distribution platforms.
This material is not intended to be, nor shall it be interpreted or construed as a recommendation or for providing advice, impartial or otherwise. John Hancock Investments and its representatives and affiliates may receive compensation derived from the sale of and/or from any investment made in its products and services.
Diversification does not guarantee a profit or eliminate the risk of a loss.
The Fund is an “interval fund” and, in order to provide liquidity to shareholders, subject to applicable law, will conduct quarterly repurchase offers of the Fund’s outstanding common shares of beneficial interest (“Common Shares”) at NAV. There is no secondary market for the fund’s shares and none is expected to develop. Investors should consider shares of the fund to be an illiquid investment. The fund’s use of leverage may not be successful and may create additional risks, including the risk of magnified return volatility and the potential for unlimited loss. ABS include interests in pools of debt securities, commercial or consumer loans, or other receivables. The value of these securities depends on many factors, including changes in interest rates, the availability of information concerning the pool and its structure, the credit quality of the underlying assets, the market’s perception of the servicer of the pool, and any credit enhancement provided. In addition, ABS have prepayment risk. Investors could lose all or substantially all of their investment. Convertible securities are subject to certain risks of both equity and debt securities. Fund distributions generally depend on income from underlying investments and may vary or cease altogether in the future. Investing in distressed debt securities is highly speculative and risky, as they often do not generate interest, may not repay principal, and can result in a total loss of the investment. Exposure to credit risk due to the types of investments and loans made by the fund. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if an issuer is unable or unwilling to make principal or interest payments. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Please see the fund’s prospectus for additional risks.
Clients should read and carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. To request a prospectus or summary prospectus with this and other important information, please call us at 800-225-6020, or visit us at jhinvestments.com.
John Hancock Investment Management Distributors LLC Member FINRA, SIPC 200 Berkeley Street Boston, MA 02116 800-225-6020 jhinvestments.com
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
About Manulife Wealth & Asset Management
As part of Manulife Financial Corporation, Manulife Wealth & Asset Management provides global investment, financial advice, and retirement plan services to 19 million individuals, institutions, and retirement plan members worldwide. Our mission is to make decisions easier and lives better by empowering people today to invest for a better tomorrow. As a committed partner to our clients and as a responsible steward of investor capital, we offer a heritage of risk management, deep expertise across public and private markets, and comprehensive retirement plan services. We seek to provide better investment and impact outcomes and to help people confidently save and invest for a more secure financial future. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.
About Manulife | CQS Investment Management
Manulife | CQS Investment Management, a company of Manulife Investment Management, is a multi-sector alternative credit manager. The firm has a 20+ year history of managing research-driven credit strategies over multiple market cycles, with core capabilities that span corporate credit (loans and bonds), asset-backed securities, regulatory capital, collateralized loan obligations and convertible bonds. Our ambition is to continue to help investors achieve their goals across market cycles by selecting good quality credits and generating income. We are committed to building enduring partnerships with investors, generating long-term risk-adjusted returns and delivering high levels of service, tailoring mandates across a range of return objectives and risk appetites. For additional information, please visit cqs.com.
SOURCE John Hancock Investment Management
The Asset Backed Securities fund will offer investors the opportunity to access a diversified portfolio of high-quality, income-generating securities backed by a variety of assets such as mortgages, auto loans, and credit card receivables. This fund aims to provide attractive risk-adjusted returns while also offering diversification benefits to investors’ portfolios.
“We are thrilled to partner with Manulife to launch this new fund, as we believe that Asset Backed Securities can play a valuable role in a well-rounded investment strategy,” said Michael McNamara, Head of Alternative Investments at John Hancock Investment Management. “This fund will provide investors with access to a unique asset class that has the potential to deliver consistent income and enhance overall portfolio diversification.”
The Asset Backed Securities fund will be managed by a team of experienced investment professionals with deep expertise in the fixed income and alternatives space. With a focus on rigorous credit analysis and risk management, the team aims to identify attractive investment opportunities and generate strong risk-adjusted returns for investors.
We are excited about the launch of this new fund and look forward to helping investors achieve their investment goals through innovative and diversified investment solutions. To learn more about the Asset Backed Securities fund and our full suite of alternative offerings, please visit our website or contact your financial advisor.
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