#United States #Boston #ETFs #John Hancock #Senior Loans

Manulife John Hancock Investments Launches Global Senior Loan ETF

On August 20, 2025, Manulife John Hancock Investments announced the launch of the John Hancock Global Senior Loan ETF (NYSE Arca: JHLN). This new fund, subadvised by the affiliated manager Manulife | CQS Investment Management, expands Manulife's ETF offerings to a total of 18 funds, with assets exceeding $7.5 billion. The firm offers diverse investment strategies, encompassing U.S. and international equity, preferred income, mortgage-backed securities, alongside corporate and municipal bonds.

The primary goal of the Global Senior Loan ETF is to secure a substantial current income by allocating a minimum of 80% of its assets, plus any borrowings for investment purposes, into a diversified portfolio that includes senior loans. These loans cover originated first and second lien loans, delayed draw term loans, revolving credit facilities, and club deals. Such investments primarily encompass senior secured floating rate bank loans.

James Fitzpatrick, who serves as Portfolio Manager, Chief Investment Officer for North America, and Head of Global Loans at Manulife | CQS IM, will oversee the day-to-day portfolio management of the fund. Fitzpatrick has a rich background in managing similar funds, including the John Hancock CQS Multi Asset Credit Fund.

Kristie Feinberg, President and CEO of Manulife John Hancock Investments, expressed her enthusiasm for this launch: "We are thrilled to introduce a new capability that leverages the extensive expertise of Manulife | CQS Investment Management in the global credit market. This ETF is designed to assist investors in income pursuit and enhance diversification in their portfolios, complementing our existing active fixed-income ETF lineup."

Further insights were shared by Soraya Chabarek, President and CEO of Manulife | CQS IM. She stated, "We are incredibly excited to bring this new ETF to the market as it showcases our loan team's rigorous investment process, developed over nearly two decades. Our strategy is fundamentally driven and improved by proprietary analytics, ensuring we respond promptly to market fluctuations while optimizing outcomes for our clients."

Steve Deroian, Global Head of Exchange Traded Products and Models at Manulife John Hancock Investments, highlighted the importance of active income ETFs in the current volatile market landscape. "They provide investors with a significant opportunity for steady returns while effectively managing risk. Our active income ETFs are molded to adapt to changing market conditions, leveraging our teams' expertise to discover and exploit opportunities as they present themselves. By embracing a flexible approach, we aim to empower our investors to navigate market fluctuations with confidence."

Understanding the Risks

Investing in fixed-income securities entails interest-rate and credit risk. Typically, their value declines as interest rates rise or if an issuer faces challenges in fulfilling principal or interest payments. Higher-yielding, lower-rated securities, while attractive for their potential returns, come with increased default risks. Investors should also be aware of risks associated with collateralized loan obligations (CLOs) included within the ETF, as these involve various loan-related risks and potential market volatility tied to the financial stability of the obligors and wider economic conditions.

Additionally, foreign investments expose investors to additional risks, including currency fluctuations and political instability. The ETF's liquidity can be influenced by trading volume and market conditions, which may further impact investors.

Conclusion

The launch of the John Hancock Global Senior Loan ETF represents a strategic effort by Manulife John Hancock Investments to diversify investment options and enhance income opportunities for investors in an uncertain economic climate. With rigorous management and an advanced investment strategy, this ETF exemplifies the firm's commitment to fostering better investment outcomes and ensuring robust support for their clientele's diverse financial goals. It's crucial for prospective investors to diligently review the fund's objectives, risks, and other vital information outlined in the prospectus before making investment decisions.