Hancock Taps a Legg Mason Unit to Subadvise its New Bond Fund
News summary by MFWire's editors
John Hancock has hired Legg Mason subsidiary Western Asset Management to subadvise the John Hancock Floating Rate Income Fund, which launched on January 22. This marks the first time that Pasadena-based Western Asset Management landed a subadvisory contract with Hancock. Keith Hartstein, president and CEO of John Hancock Funds, said Hancock now has a total of eight subadvisory relationships.
Company Press Release
John Hancock Funds said that it has launched the John Hancock Floating Rate Income Fund (JFIAX), effective January 22. The fund will be provided with portfolio management services by Western Asset Management (WAMCO), which is marking its first time serving as a sub-adviser for John Hancock Funds. The Floating Rate Income Fund will also be available to investors as an underlying fund in John Hancock’s target date Lifecycle Funds and target risk Lifestyle Funds.
The new fund is the first high-yield short-term bond fund in John Hancock’s product line. It will invest in one-year paper rated below Baa or BBB. Members of the WAMCO portfolio management team for the fund are Kenneth Leech, Stephen Walsh, Michael Buchanan and Timothy Settel.
“With the current turmoil in the credit markets, we believe this is an opportune time to launch a Floating Rate Income Fund,” said Keith F. Hartstein, President & CEO, John Hancock Funds. “In addition, we are adding yet another world-class sub-advisor to our platform in Western Asset Management, bringing the number of sub-advisory relationships to eight.”
“Floating Rate Income fund is an important addition to our product line because it offers our investors the attributes of the asset class – compelling income, less interest rate sensitivity and a low correlation to other asset classes,” said Andrew Arnott, Senior Vice President and head of product development.
About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial Services, John Hancock Funds manages more than $59 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors at September 30, 2007. John Hancock Funds are distributed by John Hancock Funds, LLC, member FINRA. For more information, please visit www.jhfunds.com.
John Hancock Financial Services is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through 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 Cdn$399 billion (US$398 billion) at September 30, 2007. Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial may be found on the Internet at www.manulife.com.
About WAMCO
With offices in Pasadena, New York, London, Tokyo, Singapore, Hong Kong, Melbourne, and Sao Paulo, Western Asset Management offers clients a full range of local and cross-border fixed income products. For more information, please visit www.westernasset.com.
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