John Hancock Launches New Asset-Backed Securities Fund with Manulife | CQS

BOSTON, Jan. 22, 2025 – John Hancock Investment Management, in collaboration with Manulife | CQS Investment Management, announced the launch of a new fund focused on asset-backed securities (ABS). The fund aims to generate returns through current income and capital appreciation by investing in diversified ABS sectors, including residential and commercial mortgages, bank regulatory capital, and collateralized loan obligations.

“We’re thrilled to announce the launch of our second fund in collaboration with Manulife | CQS Investment Management,” said Kristie Feinberg, Head of U.S. and Europe at Manulife Investment Management and President and CEO of John Hancock Investment Management. “This fund brings their expertise in asset-backed securities investing to advisors and their clients, catering to the growing demand for alternative investment solutions.”

The fund seeks to exploit inefficiencies in the pricing of credit and related risks in the ABS market while mitigating volatility. Soraya Chabarek, CEO of Manulife | CQS Investment Management, emphasized the strategy’s focus on income generation and downside protection. “ABS is at the very core of our alternative credit platform, a strategy we’ve been managing for the better part of 19 years,” she said.

Jason Walker, Co-Chief Investment Officer of Manulife | CQS Investment Management and portfolio manager of the fund, highlighted the team’s extensive experience in ABS markets. “I’ve been investing in ABS markets for almost 30 years, and on average, my dedicated team has been active in these markets for 20 years,” he said. “We see compelling opportunities for investors across ABS subsectors, which have historically exhibited low correlation to broader equity and credit markets.”

The fund is part of John Hancock’s broader expansion into alternative investments, following the launch of three alternative funds last year. The firm anticipates continued growth in demand for alternative and private market solutions, offering a range of strategies to meet investor needs.

Investors should note that the fund is an “interval fund,” conducting quarterly repurchase offers of its shares at net asset value (NAV). There is no secondary market for the fund’s shares, and they are considered illiquid. The fund’s use of leverage may amplify risks, including return volatility and potential losses.

John Hancock Investment Management, a subsidiary of Manulife Financial Corporation, provides global investment and retirement plan services to 19 million individuals and institutions worldwide. Manulife | CQS Investment Management specializes in multi-sector alternative credit strategies, with over two decades of experience in managing credit investments across market cycles.