Why Corporate Credit and Mortgage-Backed Securities Can Prosper in Rising Rate Environments
In a rising interest rate environment, many investors struggle to properly balance their fixed income portfolios to provide real diversification while still maintaining income generation.
In this upcoming webcast, John Hancock Investment Management and VettaFi will outline fixed income strategies, like corporate credit and mortgage-backed securities, that can help financial advisors better adapt to rapidly changing market conditions.
Tom Lydon, Vice Chairman at VettaFi, will moderate a discussion on:
- An outlook for the mortgage-backed securities and corporate bond market
- Why mortgage-backed securities are worth considering in today’s rising rate environment
- How the team is positioning its strategies now
NOT accepted for one hour of CFP/CIMA CE credit for live and on-demand attendees
CFA Institute members are encouraged to self-document their continuing professional development activities in their online CE tracker.
Pranay SonalkarPortfolio Manager, U.S. Core and Core Plus Fixed Income
Manulife Investment Management
Peter M. Farley, CFASenior Portfolio Manager, Securitized Assets
Manulife Investment Management
Tom LydonVice Chairman
John Hancock Investment Management is not affiliated with Tom Lydon or VettaFi.
Investing involves risks, including the potential loss of principal. There is no guarantee that a fund’s investment strategy will be successful. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if an issuer is unable or unwilling to make principal or interest payments. Preferred stock dividends are payable only if declared by the issuer’s board. Preferred stock may be subject to redemption provisions. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. REITs may decline in value, just like direct ownership of real estate. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. The use of hedging and derivatives could produce disproportionate gains or losses and may increase costs. It’s possible that an active trading market for fund shares will not develop, which may hurt your ability to buy or sell fund shares, particularly in times of market stress. Trading securities actively can increase transaction costs, therefore lowering performance and taxable distributions. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value, if at all—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. A portfolio concentrated in one industry or sector that holds a limited number of securities may fluctuate more than a diversified portfolio. Fund distributions generally depend on income from underlying investments and may vary or cease altogether in the future. Shares may trade at a premium or discount to their NAV in the secondary market. These variations may be greater when markets are volatile or subject to unusual conditions. Please see the fund’s prospectus for additional risks.
John Hancock ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
Clients should carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. To request a prospectus or summary prospectus with this and other important information, call us at 800-225-6020, or visit us at jhinvestments.com/etf.
John Hancock ETFs are distributed by Foreside Fund Services, LLC in the United States, and are subadvised by Dimensional Fund Advisors LP or our affiliate Manulife Investment Management (US) LLC. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC, or Dimensional Fund Advisors LP.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
THIS MATERIAL IS FOR INSTITUTIONAL/BROKER-DEALER USE ONLY. NOT FOR DISTRIBUTION OR USE WITH THE PUBLIC.
JHAN-2022-0712-1544 ETFWBNREM 7/22
John Hancock Investment Management Distributors LLC