JHancock Short Duration Bond Fund Class NAV (0P0001HDR8)

Overview

This fund focuses on investing primarily in a diverse portfolio of bonds, aiming to allocate at least 80% of its net assets, along with any borrowings for investment purposes, towards this asset class. The portfolio includes a wide range of bond types such as corporate bonds and debentures, mortgage-backed and asset-backed securities, alongside U.S. government and agency securities. The strategy also allows for investment up to 35% of its net assets in below-investment-grade debt securities, including those rated as low as CC by S&P, Ca by Moody's, and C by Fitch, or their equivalents without ratings. This broad approach enables the fund to diversify its investments across various sectors and risk levels to achieve its financial objectives.

Products and Services

• Corporate Bonds and Debentures:

  These are debt securities issued by corporations to finance their operations, expansions, or other investments. Corporate bonds and debentures typically offer higher yields than government securities, reflecting the greater risk associated with corporate financial health and market conditions.

• Mortgage-Backed and Asset-Backed Securities:

  This category includes securities backed by mortgage loans or other financial assets. These instruments provide regular payments derived from the underlying assets, offering a way to invest in a diversified pool of credit exposures. Mortgage-backed securities are primarily secured by residential or commercial mortgage loans, while asset-backed securities can be secured by a wider range of assets, such as auto loans or credit card receivables.

• U.S. Government and Agency Securities:

  The fund invests in securities issued or guaranteed by the U.S. government or its agencies. These investments are considered lower risk due to the government backing and include Treasury securities, agency mortgage-backed securities, and other government-guaranteed debts. They provide a secure, though often lower-yield, investment compared to corporate bonds and debentures.

• Below-Investment-Grade Debt Securities:

  Also known as high-yield or junk bonds, these are bonds rated below BBB- by S&P, Baa3 by Moody's, or an equivalent rating by Fitch. The fund may invest up to 35% of its net assets in these riskier securities, which are rated as low as CC by S&P, Ca by Moody's, and C by Fitch, including their unrated equivalents. While they carry a higher risk of default, these securities offer potential for higher returns, contributing to the fund's overall yield and diversification strategy.