Under the agreements, John Hancock will adopt eight highly rated funds managed by GMO, which increases Hancock’s mutual fund offerings from 32 to 40, according to a Boston Globe report.
John Hancock’s mutual funds unit has experienced only mediocre performance. The provisions of the agreements will double and perhaps triple the number of high performing funds in the unit’s offerings, the Globe report said. The news release by Manulife quoted John DesPrez, president and chief executive officer of John Hancock as saying, “John Hancock Funds is committed to providing superior investment products, whether internally or externally managed, to a broad range of investors. With GMO, we have a sub-advisor that can help us to achieve this vision.” John Hancock is a Manulife subsidiary.
The company’s executives estimate about 100 jobs will be created as John Hancock plans to increase its sales force as a result of the deal. According to the Globe, this ends speculation that John Hancock will sell its troubled mutual funds unit.
The deal is still subject to regulatory, shareholder and trustees’ approvals and is expected to close later this year. The Manulife news release can be found here .