Understanding Stable Value Deconstructing Stable Value Understanding stable value funds is no easy task. 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. Although gathered from reliable sources, the information is not represented or warranted by Morningstar to be accurate, correct, complete or timely. MGR-P41154-GE 1/20 41154 MGR011520505449. Some Vanguard, Fidelity, T. Rowe Price, and other mutual fund estimate big dispersals despite big losses. Unless otherwise specifically stated in writing, John Hancock Life Insurance Company (U.S.A.) does not, and is not undertaking to, provide impartial investment advice or give advice in a fiduciary capacity. 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. Contact your John Hancock representative if you wish to obtain a copy.Units of the Fund have not been registered under the Securities Act of 1933, as amended, or under the securities laws of any other jurisdiction; and the Fund is not registered under the Investment Company Act of 1940, as amended, or other applicable law, and participants are not entitled to the protections of such Act. Ultrashort is defined as 25% of the three-year average effective duration of the MCBI. Consult your John Hancock representative for details. The Turnover Ratio shown is based on the most recent available financial statements for the underlying mutual fund, collective trust, or ETF as of the date of printing and is subject to change. It is made up of John Hancock's (i) "Revenue from Sub-account", and (ii) the expenses of the underlying fund (based on expense ratios reported in the most recent prospectuses available as of the date of printing; "FER"). Extension Risk. Marketing support services are provided by John Hancock Distributors LLC. We have sent an authorization code to the email address on file. Investment style tells you whether the underlying fund invests in securities of companies that exhibit growth-style characteristics, such as above-average revenue and earnings growth, or in securities that exhibit value-style characteristics, such as shares considered to be underpriced in relation to fundamental measures such as revenues, earnings and assets. 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. Because of their focus on bonds with very short durations, these portfolios offer minimal interest-rate sensitivity and therefore low risk and total return potential. The Net Expense Ratio represents the effect of a fee waiver and/or expense reimbursement and is subject to change. Investment Grade Securities for Fixed Income. darlene ortiz birthday; dunkin donuts k cups nutrition facts; falesha & jacqueline Performance data reflects changes in the prices of a sub-account's investments (including the shares of an underlying mutual fund, collective trust, or ETF), reinvestment of dividends and capital gains and deductions for the sub-account charges.The performance data presented represents past performance. The value of such securities depends on many factors, including, but not limited to, changes in interest rates, the structure of the pool and the priority of the securities within that structure, the credit quality of the underlying assets, the skill of the pool's servicer, the market's perception of the pool's servicer, and credit enhancement features (if any). The John Hancock Stable Value Fund Collective Investment Trust (the "Trust") is a bank-maintained collective trust fund ("BCT") that satisfies the conditions of Revenue Ruling 81-100. 5Y. Fund Expense Ratio or FER). However, if the book value of the Fund exceeds the market value of underlying securities, the stabilizing agreements provide that the payment of certain withdrawals may be delayed for up to 12 months unless the plan or the participant requesting the withdrawal elects to accept such payment subject to a market value adjustment. Competing funds include other stable value investments, money markets and most fixed income funds with a duration of 3 years or less. Risk of Increase in Expenses for Sub-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. All thoughts welcome. 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 value assets under management above $2.7 billion with over 12,000 plans 1. The highest speculative-grade rating is Ba1. The fund invests a portion of its assets (including cash and cash equivalents) in a separate account of John Hancock Life & Health Insurance Company (JHLH). Although the portfolio will seek to maintain a stable value, there is a risk that it will not be able to do so, and participants may lose their investment if both the Fund's investment portfolio and the Stability Provider(s) fail. 1A. The staff granted relief under the Capital Company Act, the Exchange Act and the Securities Act. Sub-Account Inception Date: May 14, 2004 Underlying fund Inception Date: May 8, 2006. The effect of short-term trading may disrupt or be potentially disruptive to the management of the fund underlying an investment option and may thereby adversely impact the underlying funds performance, either by impacting fund management practices or by increasing fund transaction costs. Once the plan fiduciary has been notified and unless they elect otherwise, in the case of fund mergers and replacements, the affected funds that are being merged or replaced may implement the redemption of your interest by payment in cash or by distributing assets in kind. The ticker symbols shown are for the underlying mutual fund, collective trusts or ETFs in which sub-accounts are invested. Due to abnormal market conditions or redemption activity the fund may temporarily invest in cash and cash equivalents. In this event, short- and medium duration securities are effectively converted into longer-duration securities, increasing their sensitivity to interest-rate changes and causing their prices to decline. For more information or to order prospectuses for the underlying investments, call 800-395-1113 and speak to a client account representative. Stable value funds are a type of principal preservation investment available to 401 (k) plans, pensions, and other institutional funds. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. Please enter the email address you used when registering. Read our editorial policy to learn more about our process. Allocation percentages may vary or be adjusted due to market or economic conditions or other reasons as set out in the prospectus. * The Net expense ratio shown is for the underlying fund and reflects any fee waivers or expense reimbursements and is subject to change. Treceded by an z/lccotmt of Old Ouabaiig, Indian and English Occupation, 164J-16J6 . 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. Stable value funds are a type of principal preservation investment available to 401(k) plans, pensions, and other institutional funds. Extension Risk The issuer of a security may repay principal more slowly than expected because of rising interest rates. Many fixed income investments face the risk that the securities will decline in value because of changes in interest rates. Because the crediting rate is set monthly in advance, there can be no assurance that the crediting rate will accurately reflect the actual performance of the Portfolios underlying assets. Merger and Replacement Transition Risk for Sub-Account. 6A. An insurance company accounts safety depends on the financial strength of the issuer. Asset-backed securities include interests in pools of residential or commercial mortgages, debt securities, commercial or consumer loans, or other receivables. Information Concerning John Hancocks Short-Term Trading Policy The group annuity contract is not designed for short-term trading. Performance does not reflect any applicable contract-level or participant-level charges, fees for guaranteed benefits if elected by participant, or any redemption fees imposed by an underlying mutual fund, collective trust or ETF. If these charges were reflected, performance would be lower. Refer to the Massachusetts contract for more details about the John Hancock Stable Value Guaranteed Income Fund. What does this mean? 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. The Trust is a "stable value" trust that provides for collective investment on behalf of specified tax-favored retirement plans, including tax . Any difference between the Portfolios market value and book value will be taken into consideration when setting future crediting rates.For further details regarding risk and other risks that may apply please refer to the Offering Memorandum. Benchmark index. John Hancock and its affiliates provide advisory and/or sub-advisory services for the underlying fund. The underlying mutual fund, collective trust, or ETF has the right to restrict trade activity without prior notice if a participant's trading is determined to be in excess of their exchange policy, as stated in the prospectus or offering memorandum. Redemption fees or market value adjustments associated with exchanges from particular investment options are described on applicable fund sheets, which are available online. 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. View daily, weekly or monthly format back to when John Hancock Funds Disciplined Value Fund Class R6 stock was issued. John Hancock Stable Value Fund: Qualified retirement plans that select the John Hancock Stable Value Fund as an eligible investment option under the group annuity contract are restricted from selecting any fixed-income investment options for the plan deemed to be 'Competing', including (i) any book value fixed income Fund, (ii) any other fixed income Fund with a targeted average duration of two (2) years or less, including but not limited to, a money market Fund or a short-term bond Fund, or (iii) any guaranteed interest account (other than a ten (10) year maturity guaranteed interest account maintained by an affiliate of John Hancock Life Insurance Company (U.S.A.) originally offered prior to May 1, 2006). It is not intended to provide investment, tax, or legal advice (unless otherwise indicated). John Hancock Disciplined Value Mid Cap R6 . The cumulative effect of fees and expenses can substantially reduce the growth of your retirement account. 26. This site is protected by reCAPTCHA and the Google Litigation. Stable value funds generally provide a higher return Stable value funds are also viewed as safe investments. Increased rates of prepayments will generally result in a loss of interest income if the portfolio manager is required to reinvest at a lower interest rate. Avail March 29, 2019).
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