John Hancock Investment Management Launches New Fund
John Hancock Investment Management has officially launched the John Hancock CQS Asset Backed Securities Fund, in collaboration with Manulife | CQS Investment Management. This new offering marks an important step in expanding the firm's alternative investment capabilities. The fund is designed to tap into the growing demand from investors seeking diversified income sources.
Investment Objective and Strategy
The primary objective of the fund is to generate returns that combine current income and capital appreciation. The experienced team at Manulife | CQS focuses on acquiring a diverse range of asset-backed securities (ABS) including residential and commercial mortgages, and bank regulatory capital. By actively managing the portfolio, they aim for strong risk-adjusted returns, targeting ABS subsectors that typically demonstrate low correlations to traditional credit and equity markets.
Diversified Income Sources
Investors are increasingly looking for innovative ways to diversify their credit allocations, and this fund meets that need. The seasoned management team is committed to enhancing returns by identifying pricing inefficiencies in the ABS market. Their strategy is not only focused on income but also on mitigating risks associated with market volatility.
Leadership Insights
Kristie Feinberg, Head of U.S. and Europe at Manulife Investment Management, shared her enthusiasm about this new fund, emphasizing its role in providing additional avenues for investment. She noted, "This fund caters to the rising demand for alternative investment solutions and empowers advisors to better serve their clients."
Expert Commentary
Soraya Chabarek, CEO of Manulife | CQS Investment Management, added insights into the power of ABS as a core component of their alternative credit strategy. With nearly two decades of experience in managing these investments, she explains how ABS can offer investors appealing income generation opportunities while diversifying their overall credit exposure.
Market Opportunities
Jason Walker, Co-Chief Investment Officer at Manulife | CQS, highlighted the growth potential in the asset-backed securities market, valuing it at approximately $4.5 trillion. He emphasized the importance of thorough credit analysis and advanced analytics capabilities to navigate these markets successfully.
Continued Expansion
In addition to launching this fund, John Hancock Investment Management has previously introduced several alternative funds. These include the CQS Multi Asset Credit Fund, Disciplined Value Global Long-Short Fund, and the Manulife Private Credit Plus Fund. The company is committed to meeting the growing interest in alternative investment strategies from advisors and qualified investors alike.
Important Considerations
Potential investors should be aware of the risks associated with investing in asset-backed securities, including the possibility of losing their entire investment. It is crucial to conduct thorough due diligence, considering the fund's investment objectives, risks, charges, and expenses. John Hancock Investment Management remains dedicated to providing comprehensive information to help investors make informed decisions.
Frequently Asked Questions
What is the primary objective of the new fund?
The John Hancock CQS Asset Backed Securities Fund aims to generate returns that include both current income and capital appreciation.
Who manages the fund?
Manulife | CQS Investment Management oversees the fund, leveraging their extensive expertise in the asset-backed securities market.
How does this fund help diversify credit allocations?
The fund invests in asset-backed securities, which typically show low correlations with traditional credit and equity markets, providing diversification benefits.
What is the experience of the management team?
The management team at Manulife | CQS has a significant track record in the ABS market, collectively bringing decades of experience to the fund.
What should investors consider before investing?
Investors need to carefully evaluate the fund's investment objectives, associated risks, charges, and the potential for investment loss.
