TORONTO, Feb. 1, 2017 /CNW/ - Manulife Investments today announced plans to launch a series of multifactor exchange traded funds (ETFs) in partnership with Dimensional Fund Advisors Canada ULC (DFAC) as sub-advisor*. Founded in 1981, Dimensional Fund Advisors LP (Dimensional), DFAC's parent company, is a global investment manager with USD$460 billion in AUM (as at Dec. 31, 2016) and a long record of applying insights from academic research into a systematic investment process across asset classes. The firm focuses on the factors that have been shown to have the potential for higher expected returns, which is based in part on the research of Nobel Laureate Eugene Fama and renowned researcher Kenneth French, both of whom serve on Dimensional's board of directors. The ETFs will seek to track indexes designed by Dimensional which leverage their time-tested, factor-based approach.
Manulife Investments will launch four multifactor equity ETF strategies spanning multiple geographies (Canadian Large Cap, Developed International, U.S. Large Cap and U.S. Mid Cap).
"A key component of our strategy is to employ only the highest quality managers for our investment platform, and that's precisely what we have gained with our Dimensional partnership," said Bernard Letendre, President, Manulife Investments. "ETFs have become an essential component of investors' portfolios, now we can offer Canadians a best-in-class product managed by the bench strength of Dimensional."
"Dimensional has applied advanced financial science to investment solutions for more than 35 years and our approach is rooted in decades of research into the factors that drive higher expected returns," said Eduardo Repetto, Co-CEO and Co-CIO of Dimensional. "We are excited to work with Manulife to bring our investment approach to the Canadian ETF market."
Manulife Investments' ETFs are scheduled to launch in April 2017.
*Manulife and DFAC have entered into an agreement which provides Manulife with exclusive access to DFAC's subadvisory services with respect to Canadian ETFs for a period of 7 years, subject to certain conditions.
Neither Dimensional Fund Advisors Canada ULC nor its affiliates are affiliated with Manulife Investments.
A preliminary prospectus containing important information relating to securities of the Manulife ETFs has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be downloaded at www.sedar.com. There will not be any sale or acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
Commissions, management fees, and expenses all may be associated with the Manulife ETFs. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.
Neither John Hancock Advisers, LLC nor Dimensional guarantees the accuracy and/or the completeness of an index (each an underlying index) or any data included therein, and neither John Hancock Advisers, LLC nor Dimensional shall have any liability for any errors, omissions, or interruptions therein. Neither John Hancock Advisers, LLC nor Dimensional makes any warranty, express or implied, as to results to be obtained by an ETF, owners of the units of an ETF, or any other person or entity from the use of an underlying index, trading based on an underlying index, or any data included therein, either in connection with an ETF or for any other use. Neither John Hancock Advisers, LLC nor Dimensional makes any express or implied warranties, and expressly disclaims all warranties, of merchantability or fitness for a particular purpose or use with respect to an underlying index or any data included therein. Without limiting any of the foregoing, in no event shall either John Hancock Advisers, LLC or Dimensional have any liability for any special, punitive, direct, indirect, or consequential damages (including lost profits) arising out of matters relating to the use of an underlying index, even if notified of the possibility of such damages.