John Hancock Investments announced a sweeping package of expense reductions on a broad range of funds that together represent more than $36 billion in assets under management.
Reductions of up to 26 basis points or up to 38% per fund vary by fund and result from a combination of direct cuts, contractual expense caps, new breakpoints, and growing economies of scale, the firm says.
Funds with contractual expense reductions to net expense ratios ranging from 1 to 24 basis points include:
- John Hancock Global Income Fund (Class A and Class I only);
- John Hancock International Core Fund (Class A and Class I only);
- John Hancock Small Cap Value Fund (Class A and Class I only);
- John Hancock Small Company Fund (Class A and Class I only); and
- John Hancock Value Equity Fund.
In addition, expenses are estimated to be between 3 and 24 basis points lower going forward for Class A shares for the following funds:
- John Hancock Core High Yield Fund;
- John Hancock Disciplined Value Fund;
- John Hancock Disciplined Value Mid Cap Fund;
- John Hancock Global Shareholder Yield Fund;
- John Hancock International Growth Fund;
- John Hancock International Value Equity; and
- John Hancock Strategic Growth Fund.
John Hancock Investments also lowered expenses by 20 to 26 basis points across both the John Hancock Retirement Living II target-date suite and the John Hancock Retirement Choices target-date suite, which total 20 funds.
These expense reductions follow other fee reductions in the mutual fund lineup over the last few years.
“Maximizing the value we provide our mutual fund shareholders goes well beyond the strong risk-adjusted performance of our funds,” says Andrew G. Arnott, President and CEO of John Hancock Investments. “We remain intensely focused on fees and on ensuring that our funds are cost effective for investors.”