John Hancock Files For Global Balanced ETF
John Hancock has filed paperwork with the SEC for a “Global Balanced ETF.” The John Hancock Global Balanced ETF will seek a balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital. They did not specify a trading symbol or expense ratio in the initial filing.
Principal investment strategies
The fund normally invests approximately 60% of its assets in equity securities and approximately 40% in fixed-income securities. Variations in the target percentage allocation between equity securities and fixed-income securities are permitted up to 10% in either direction. Thus, based on its target percentage allocation of approximately 60% of its assets in equity and 40% in fixed-income securities, the fund may have an equity/fixed-income allocation ranging between 70%/30% and 50%/50%. Although variations beyond the 10% range are generally not permitted, the subadvisers may determine in light of market or economic conditions that the normal percentage limitations should be exceeded to protect the fund or achieve its goal.
Consistent with the prescribed percentage allocations, the fund may invest in a wide range of U.S. and non-U.S. equity type securities including, but not limited to, small-, mid- and large-capitalization stocks, domestic and foreign securities (including emerging market securities) and sector holdings such as utilities and science and technology stocks.
Consistent with the prescribed percentage allocations, the fund may also invest in both U.S. and non-U.S. fixed-income investments including, but not limited to, investment grade and below investment grade debt securities with maturities that range from short to longer term and various types of debt instruments such as corporate bonds and mortgage-backed and government issued securities.
The fund may also invest in the securities of other investment companies (including ETFs) and may make direct investments in other types of investments (including exchange-traded notes (ETNs)). The fund may also invest in foreign currency forward contracts.
For defensive purposes in abnormal market conditions, to meet redemption requests, or make anticipated cash payments, the fund may temporarily invest extensively in cash and cash equivalents.
The fund is non-diversified, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund.
For the complete filing click: HERE