These charges, if included, would otherwise reduce the total return for a participants account. Understanding how a stable value fund works can help you determine if it's right for your 401 (k) or other institutional plan lineup. Our responsibility is to express an opinion on these financial statements based on our audits. Net assets represent the sum of participant balances on deposit in this plan's stable valueinvestment option. The total revenue John Hancock receives on this Fund is higher than those advised or sub-advised exclusively by unaffiliated entities. John Hancock Retirement Offers New Stable Value Guaranteed Income Fund Indexes are unmanaged and cannot be invested in directly. These charges, if included, would otherwise reduce the total return for a participant's account. Past performance is not a guarantee of future results. The performance data for a sub-account for any period prior to the sub-account Inception Date is hypothetical based on the performance of the underlying investment since inception of the underlying investment. If the sub-account inception date is after February 23, 2007, then the class introduction date is the same as the sub-account inception date.Returns for any period greater than one year are annualized. If a 5 year Standard Deviation is not available for a Morningstar Category, then the 5 year Standard Deviation of the underlying fund's Morningstar Category Index is used to determine the Fund's risk category. Seeks to preserve capital and provide stability of principal while earning current income that exceeds money market rates over the long term. December 31, 2020 and 2019 . These investment options may be sub-accounts (pooled funds) investing directly in underlying mutual fund, collective trusts, or ETFs, or they may be Guaranteed Interest Accounts.The Funds offered on the JH Signature platform are classified into five risk categories. Key stable value due diligence areas Stable value isn't built like a mutual fund or a money market fund, and anyone evaluating a stable value fund should understand how it works. Often, the issuer of asset-backed securities is a special purpose entity and the investors recourse is limited to the assets comprising the pool. Analysis of performance and other indicative facts are also considered. Recognizing that there may be extreme market or other circumstances requiring a participant to make a further change, John Hancock will allow a participant to move 100% of their assets to a Money Market or Stable Value Fund (as available under the contract after the exchange limit has been reached; no subsequent exchanges may be made for 30 days If the sub-account inception date is after February 23, 2007, then the class introduction date is the same as the sub-account inception date. MAY LOSE VALUE. Although individual securities or individual funds may outperform the market, the entire market may decline as a result of rising interest rates, regulatory developments or deteriorating economic conditions. The actual market value of the underlying assets may, at times, be greater than or less than the book value of the Fund. How stable value funds work | John Hancock Retirement Such trade restrictions may be more restrictive than the above guidelinesRestricting the number of exchanges made during a defined periodRestricting the dollar amount of exchangeRestricting the method used to submit exchanges (e.g., requiring exchange requests to be submitted in writing via U.S. mail)Restricting exchanges into and out of certain investment options Participants can read about the short-term trading policy at myplan.johnhancock.com under the "modify your account - change account" feature. Securities are offered through John Hancock Distributors LLC, member FINRA, SIPC.NOT FDIC INSURED. John Hancock Life Insurance Company has a more than 30-year track record of backing guaranteed interest contracts and has been a stable value asset manager since 2006, with total stable. Default by a Stability Provider could result in participant withdrawals from the fund at less than book value. These charges, if included, would otherwise reduce the total return for a participants account. 13. Redemption fees or market value adjustments associated with exchanges from particular investment options are described on applicable fund sheets, which are available online. For more information, please contact your financial representative. The fixed income portfolios selected for . MAY LOSE VALUE. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.For each underlying fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in the underlying funds monthly performance (does not include the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The underlying fund company has not reviewed the sub-accounts performance. Due to abnormal market conditions or redemption activity the fund may temporarily invest in cash and cash equivalents. Fees and expenses are only one of several factors that you should consider when making investment decisions. Requests may be cancelled if not within our guidelines.Participants are allowed a maximum of two exchanges per calendar month. 1A. This investment option is deemed a 'Competing' investment option with the Federated Capital Preservation Fund and may not be available if the Federated Capital Preservation Fund is selected. 4A. As interest rates decline, the issuers of certain fixed income securities, including asset-backed securities, may prepay principal earlier than scheduled, forcing the applicable portfolio manager to reinvest in potentially lower yielding securities. Examples of business or market sectors where this risk may be particularly high include: a) technology-related businesses, including Internet-related businesses, b) small-cap securities and c) foreign securities. John Hancock does not provide advice regarding appropriate investment allocations. John Hancock Credit Risk. The fund is a stable value product that guarantees principal and accumulated interest. In the case where an underlying fund has either waived a portion of, or capped, its fees, the FER used to determine the ER of the sub-account that invests in the underlying fund is the net expense ratio of the underlying fund. This category can include corporate or government ultrashort bond portfolios, but it excludes international, convertible, multisector, and high yield bond portfolios. Peer groups are unmanaged and cannot be invested in directly. Although the underlying portfolio seeks to preserve the value of an investment, it is possible to lose money by investing in this portfolio. Generally, fixed income investments will decrease in value when interest rates rise (and increase in value when interest rates fall). This design allows money market funds to maintain a fixed net asset value and daily liquidity at the same time. The availability of products, Funds and contract features may be subject to Broker-Dealer Firm approval, State approval, Broker Licensing requirements, tax law requirements, or other contract-related requirements. 142. Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. Returns for any period greater than one year are annualized. Crediting Rate is set on January 1 and July 1 of each year. Allocating assets to only one or a small number of the investment options (other than an asset allocation investment option such as a target date or target risk option) should not be considered a balanced investment program. Past performance is no guarantee of future results and current performance may be lower or higher than the performance quoted. 166. These investment options may be sub-accounts (pooled funds) investing directly in underlying mutual fund, collective trusts, or ETFs, or they may be Guaranteed Interest Accounts.The Funds offered on the JH Signature platform are classified into five risk categories. You want a fund where the primary objective is the preservation of capital, You want principal protection and steady returns regardless of the market environment, You want the security of an account value guaranteed by John Hancock. If John Hancock were to fail, there is no certainty that the guarantee could be honored. John Hancock Retirement Offers New Stable Value Guaranteed Income Fund The credit quality breakdown does not give effect to the impact of any credit derivative investments made by the fund.Moody'sThe rating scale, running from a high of Aaa to a low of C, comprises 21 notches. This information is not intended as investment advice and there can be no assurance that any investment option will achieve its objectives or experience less volatility than another. Performance current to the most recent month-end is available at myplan.johnhancock.com. ****Expense Ratio (ER) This material shows expenses for a specific unit class for investment options available under a John Hancock group annuity contract. Your company's qualified retirement plan offers participants the opportunity to contribute to investment options available under a group annuity contract with John Hancock Life Insurance Company (U.S.A.) (John Hancock USA). Past performance is not a guarantee of future results. However, the default of a Stability Provider and an inability to obtain a replacement Stabilizing Agreement could render the fund unable to pay withdrawals at book value. Fixed income, or bond Funds are often categorized by the duration and credit quality of the bonds held in the underlying fund. Fixed income, or bond Funds are often categorized by the duration and credit quality of the bonds held in the underlying fund. New York Life maintains the Plan's contributions in a separate account. Actively managed investments are subject to the risk that the investment managers usage of investment techniques and risk analysis to make investment decisions fails to perform as expected, which may cause the relevant portfolio to lose money or underperform investments with similar objectives and strategies or the market in general. The objective of the John Hancock Stable Value Fund is preservation of capital and returns that beat money market funds over a full interest rate cycle. For further details, please refer to the Offering Circular and Declaration of Trust. Although the underlying portfolio seeks to preserve the value of an investment, it is possible to lose money by investing in this portfolio. The terms investment grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a specific security for investment purposes. In the event John Hancock is able to earn more than the crediting rate and the expense of operating the fund, John Hancock will keep that difference as its compensation. If the sub-account inception date is after December 8, 2014, then the Signature Menu introduction date is the same as the sub-account inception date. Where the figures are different, the underlying fund has either waived a portion of, or capped its fees, and the result of such fee waiver or cap is reflected in the net expense ratio.The waiver or cap is subject to expiration, in which case the Expense Ratio and performance of the sub account may be impacted. Also, the redemption and reinvestment processes, including any transition period that may be involved in completing such mergers and replacements, could be subject to market gains or losses, including those from currency exchange rates. Our prudent approach to risk management helps protect customers' money. All rights reserved. Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York). John Hancock Stable Value Fund - viewjhfunds.com Investment grade categories indicate relatively low to moderate credit risk, while ratings in the speculative categories either signal a higher level of credit risk or that a default has already occurred.S&PCredit ratings of AA- or better are considered to be high credit quality; credit ratings of BBB- are good credit quality and the lowest category of investment grade; credit ratings BB+ and below are lower-rated securities (junk bonds); and credit ratings of CCC+ or below have high default risk. The fund is a stable value product that guarantees principal and accumulated interest. The John Hancock Stable Value Fund invests a portion of its assets in a separate investment account maintained by John Hancock Life & Health Insurance Company ('John Hancock Life & Health'), an affiliate of John Hancock USA, which has claimed an exclusion from the definition of the term 'Commodity Pool Operator' under CFTC Regulation 4.5 under the Commodity Exchange Act with respect to its . The highest speculative-grade rating is Ba1. Performance data reflects changes in the prices of a sub-account's investments (including the shares of an underlying fund), reinvestment of dividends and capital gains and deductions for the Expense Ratio (ER). The John Hancock Stable Value Fund is invested primarily in benefit responsive contracts issued by state regulated insurance companies and banks, including but not limited to John Hancock Life & Health Insurance Company. Peer Group Performance: With respect to the Funds that display a Peer Group Performance. The underlying securities in each portfolio are the primary factor Morningstar uses as the investment objective and investment strategy stated in a funds prospectus may not be sufficiently detailed for our proprietary classification methodology. The risk that John Hancock will default on its obligations under the contract or that other events could render the contract invalid. These charges, if included, would otherwise reduce the total return for a participant's account. The Fund will be launched on John Hancock's Signature Platform next year. Investments in investment-grade securities that are not rated in the highest rating categories may lack the capacity to pay principal and interest compared with higher-rated securities and may be subject to increased credit risk. Where the figures are different, the underlying fund has either waived a portion of, or capped its fees, and the result of such fee waiver or cap is reflected in the net expense ratio.The waiver or cap is subject to expiration, in which case the Expense Ratio and performance of the sub account may be impacted. NOT FDIC INSURED. All other performance data is actual (except as otherwise indicated). For these services, John Hancock and its affiliates receive additional fees which are included in the underlying fund expense ratio (i.e. Plans that select the Fund may not select any "competing fund" in their plan. John Hancock Stable Value Fund, Investment Company Act Section 3 (c Stable value fund due diligence| John Hancock Retirement Document - SEC The lowest investment-grade rating is Baa3. For more information or to order prospectuses for the underlying investments, call 800-395-1113 and speak to a client account representative.
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