(TSX: MFC) (NYSE: MFC) (PSE: MFC) (SEHK: 945)
BOSTON, July 12, 2022 /PRNewswire/ – John Hancock Investment Management, a Manulife Investment Management company, and Marathon Asset Management today announced the launch of the John Hancock Asset-Based Lending Fund (the Fund). The fund is sub-advised by Marathon Asset Management (Marathon), a leading global credit investor with nearly 25 years of successful investing experience across multiple sectors, including structured credit and mortgage lending. Assets (ABL), where it has deployed over $20 billion during its history with approximately $23 billion of assets under management at December 31, 2021.
“We are delighted to offer our accredited investors access to the private asset lending and specialty finance industries through such an accomplished and experienced partner at Marathon,” said Andrew G. ArnottCEO, John Hancock Investment Management, and Head of US and Europe, Manulife Investment Management. “With high inflation, rising interest rates and continued market volatility, advisors and their clients are turning to alternative asset classes such as private credit to generate differentiated sources of yield and return that have historically been less correlated with traditional stocks and bonds.”
“Marathon is delighted to partner with John Hancock Investment Management to bring this institutional-grade alternative credit strategy to a wider range of investors,” added Bruce Richards, CEO of Marathon. “Asset-based lending, which has historically provided attractive yields with strong downside protection in different market environments, is particularly well suited to this environment, where financial conditions are tightening but companies still need to finance their operations and their growth.
The fund’s investment objective is to seek high current income and, to a lesser extent, capital appreciation. The fund seeks to invest at least 80% of its net assets (plus any borrowing for investment purposes) in asset-based loan 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 Springerand portfolio manager Edward Cong.
The fund takes a flexible, all-weather approach to private credit with the aim of delivering strong returns with low volatility and low correlation to other asset classes throughout the market cycle. This will enable it to leverage a strong portfolio of asset-based capital solutions across all 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
- Transmission assets—Transportation assets such as loans and leases secured by commercial aircraft and shipping vessels
- Residential mortgages—Origination and acquisition of residential real estate loans and legacy mortgage pools, including distressed or non-performing loans and new agencyless mortgages
- Commercial real estate loans—The origination and acquisition of commercial real estate loans secured by housing-related and traditional types of commercial real estate
- Consumption assets—Acquisitions of consumer loans, including distressed loans and high-yield asset-backed securities (ABS) backed by various forms of non-mortgage household debt, primarily focused on certain market segments such as loans and car leases, credit cards and personal installment loans
- Business asset-based credit—Asset-based business 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, secured mortgage bonds, secured corporate loans and other asset-backed securities.
Marathon determines asset allocation at the sector level and considers several factors in its asset allocation, including, but not limited to, credit risk at the portfolio level, geographic and sector diversification, interest rate risk, optimization of capital deployment and macroeconomic conditions. The fund is not limited in the amount of its assets that can be allocated to a sector.
For more information on John Hancock Asset-Based Lending Fund, please click here.
The shares of the fund are illiquid and therefore an investment in the fund should be considered a speculative investment which involves substantial risks. Investors could lose all or substantially all of their investment. The shares of the fund are not listed on any stock exchange and it is not expected that a secondary market for the shares of the fund will develop; therefore, an investment in the fund may not be suitable for investors who may need the money they invest within a specified time frame. The amount of distributions the fund may pay, if any, is uncertain. Annual distributions may consist of the original investment, in whole 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 amplifying the volatility of returns and the potential for unlimited loss. Exposure to investments in commercial real estate, residential real estate, transportation, healthcare loans and royalty-backed credits and other asset-based loans, including distressed loans, may also expose the fund has greater volatility than investments in traditional securities. Investments in distressed loans are subject to the risks associated with lower quality securities. In addition, when a fund concentrates its investments in certain sectors of the economy, its performance may be greatly influenced by sector performance and could fluctuate more widely than if the fund were invested more evenly across all sectors. The fund’s investment strategy may not produce the expected results. Please see the fund’s prospectus for additional risks.
Request a prospectus from your finance professional by visiting jhinvestments.com or calling us at 800-225-5291. The prospectus includes investment objectives, risks, charges, expenses and other information that you should consider carefully before investing.
About John Hancock Investment Management
As a Manulife Investment Management company, we serve investors through a unique multi-manager approach, complementing our extensive in-house capabilities with an unrivaled network of specialist asset managers, backed by some of the most rigorous investment oversight in the industry. industry. The result is a diverse range of proven investments from a leading 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 business of Manulife Financial Corporation. We draw on more than a century of financial stewardship and all the resources of our parent company to serve individuals, institutions and pension plan members around the world. Based at Toronto, our industry-leading capabilities in public and private markets are bolstered by an investment footprint that spans 19 geographies. We complement these capabilities by providing access to a network of unaffiliated asset managers around the world. We are committed to investing responsibly in our business. We develop innovative global frameworks for sustainable investing, collaborate 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 pension plans. Today, plan sponsors around the world rely on our expertise in pension plan administration and investment to help their employees plan, save and live a better retirement. Not all offers are available in all jurisdictions. For more information, please visit manuvieim.com.
About Marathon Asset Management
Marathon Asset Management, LP is a New Yorkglobal investment advisor with approximately $23 billion of capital under management at December 31, 2021. The company was founded in 1998 by Bruce Richards and Louis Hanover and employs more than 160 professionals worldwide. The firm seeks attractive absolute returns by investing in global capital markets and private credit markets, where it is known for its ability to provide capital solutions to businesses across all industries. Marathon has significant experience investing in companies through multiple cycles. Marathon has a unique and diverse skill set and proprietary platform to research, analyze and act on complex capital structures and situations. Marathon’s head office is located at New York Citywith 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.
SOURCE John Hancock Investment Management