(TSX: MFC) (NYSE: MFC) (PSE: MFC) (SEHK:
945)
BOSTON, July 12,
2022 /PRNewswire/ - John Hancock Investment
Management, a company of Manulife Investment Management, and
Marathon Asset Management announced today the launch of John
Hancock Asset-Based Lending Fund (the fund). The fund is subadvised
by Marathon Asset Management (Marathon), a leading global credit
investor with nearly 25 years of experience successfully investing
across multiple sectors, including structured credit and
asset-based lending (ABL), where it has deployed more than
$20 billion over its history with
approximately $23 billion in assets
under management as of December 31,
2021.
"We're excited to bring our accredited investors access to
private asset-based lending and specialty finance sectors through
such an accomplished and experienced partner in Marathon," said
Andrew G. Arnott, CEO, John Hancock
Investment Management, and head of U.S. and Europe, Manulife Investment Management. "With
elevated inflation, rising interest rates, and ongoing market
volatility, advisors and their clients are looking at alternative
asset classes such as private credit to generate differentiated
sources of yield and return that have been historically less
correlated with traditional stocks and bonds."
"Marathon is thrilled to partner with John Hancock Investment
Management to bring this institutional-quality alternative credit
strategy to a broader set of investors," added Bruce Richards, CEO of Marathon. "Asset-based
lending, which has historically delivered attractive yields with
strong downside protection across different market environments, is
especially well suited for this environment, where financial
conditions are tightening but companies still need to finance their
operations and growth."
The fund's investment objective is to seek to provide high
current income and, to a lesser extent, capital appreciation. The
fund seeks to invest at least 80% of its net assets (plus any
borrowings for investment purposes) in asset-based lending
investments, which may include investments in distressed loans. The
fund is managed by Marathon Co-Founder, Managing Partner, and CIO
Louis Hanover, Partner and Senior Portfolio Manager Andrew Springer, and Portfolio Manager
Edward Cong.
The fund pursues a flexible all-weather approach to private
credit with the goal of delivering strong returns with low
volatility and low correlation to other asset classes across the
market cycle. This will enable it to take advantage of a robust
pipeline of asset-based capital solutions across sectors in which
Marathon has deep analytical capabilities and experience,
including:
- Healthcare loans and royalty-backed credit—Healthcare
loans secured by revenue, intellectual property rights, and royalty
streams on primarily FDA-approved drugs and devices
- Transportation assets—Transportation assets such as
loans and leases backed by commercial aircraft and shipping
vessels
- Residential mortgage loans—The origination and
acquisition of residential real estate loans and legacy mortgage
loans pools, including distressed or nonperforming loans and newly
originated nonagency mortgage loans
- Commercial real estate loans—The origination and
acquisition of commercial real estate loans secured by
housing-related and traditional commercial real estate property
types
- Consumer-related assets—Acquisitions of consumer loans,
including distressed loans and high-yield asset-backed securities
(ABS) backed by various forms of non-mortgage household debt,
largely focused on select market segments such as automobile loans
and leases, credit cards, and personal installment loans
- Corporate asset-based credit—Asset-based corporate
credit secured by real estate, equipment, receivables, inventory,
and intellectual property rights, among other assets
- Liquid securitized credit—Securities backed by
residential real estate, commercial real estate, collateralized
mortgage obligations, secured corporate loans, and other
asset-backed securities.
Marathon determines sector-level asset allocation and considers
several factors in its asset allocation, including, but not limited
to, portfolio-level credit risk, geographical and industry
diversification, interest-rate risk, capital deployment
optimization, and macroeconomic conditions. The fund is not limited
in the amount of its assets that may be allocated to any
sector.
For more information on John Hancock Asset-Based Lending Fund,
please click here.
Fund shares are illiquid and, therefore, an investment in the
fund should be considered a speculative investment that entails
substantial risks. Investors could lose all or substantially all of
their investment. Shares of the fund are not listed on any
securities exchange, and it is not anticipated that a secondary
market for the fund's shares will develop; therefore, an investment
in the fund may not be suitable for investors who may need the
money they invest in a specified timeframe. The amount of
distributions that the fund may pay, if any, is uncertain. Annual
distributions may consist of the original investment, all or in
part, and therefore may not consist of a return of net investment
income. 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. Exposure to
investments in commercial real estate, residential real estate,
transportation, healthcare loans, and royalty-backed credit and
other asset-based lending, including distressed loans, may also
subject the fund to greater volatility than investments in
traditional securities. Investments in distressed loans are subject
to the risks associated with below-investment-grade securities. In
addition, when a fund focuses its investments in certain sectors of
the economy, its performance may be driven largely by sector
performance and could fluctuate more widely than if the fund were
invested more evenly across sectors. The fund's investment strategy
may not produce the intended results. Please see the fund's
prospectus for additional risks.
Request a prospectus from your financial professional, by
visiting jhinvestments.com, or by calling us at 800-225-5291. The
prospectus includes investment objectives, risks, fees, expenses,
and other information that you should consider carefully before
investing.
About John Hancock Investment
Management
A company of Manulife Investment Management, we serve investors
through a unique multimanager approach, complementing our extensive
in-house capabilities with an unrivaled network of specialized
asset managers, backed by some of the most rigorous investment
oversight in the industry. The result is a diverse lineup of
time-tested investments from a premier asset manager with a
heritage of financial stewardship.
About Manulife Investment
Management
Manulife Investment Management is the global brand for the
global wealth and asset management segment of Manulife Financial
Corporation. We draw on more than a century of financial
stewardship and the full resources of our parent company to serve
individuals, institutions, and retirement plan members worldwide.
Headquartered in Toronto, our
leading capabilities in public and private markets are strengthened
by an investment footprint that spans 19 geographies. We complement
these capabilities by providing access to a network of unaffiliated
asset managers from around the world. We're committed to investing
responsibly across our businesses. We develop innovative global
frameworks for sustainable investing, collaboratively engage with
companies in our securities portfolios, and maintain a high
standard of stewardship where we own and operate assets, and we
believe in supporting financial well-being through our workplace
retirement plans. Today, plan sponsors around the world rely on our
retirement plan administration and investment expertise to help
their employees plan for, save for, and live a better retirement.
Not all offerings are available in all jurisdictions. For
additional information, please visit manulifeim.com.
About Marathon Asset
Management
Marathon Asset Management, L.P. is a New York-based global investment advisor with
approximately $23 billion of capital
under management as of December 31,
2021. The firm was founded in 1998 by Bruce Richards and Louis
Hanover and employs more than 160 professionals globally.
The firm seeks attractive absolute returns through investments in
the global capital markets and the private credit markets where it
is known for its ability to provide capital solutions to companies
across industries. Marathon has significant experience investing in
companies through multiple cycles. Marathon possesses a unique,
broad-based skill set and proprietary platform to research,
analyze, and act on complex capital structures and situations.
Marathon's corporate headquarters are in New York City, with international offices in
London and Tokyo. Marathon is a Registered Investment
Adviser with the Securities and Exchange Commission.
Please visit the company's website at marathonfund.com.
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SOURCE John Hancock Investment Management