Please call 800-395-1113 to obtain the Fund Sheet for the group annuity investment option sub-accounts and/or to obtain a prospectus (or Offering Memorandum/Trust Document) for the sub-accounts' underlying fund, that are available on request. AThe amounts displayed below represent the gross and net expense ratios of the underlying fund in which the sub-account invests. Returns shown reflect the Expense Ratio of the sub-account. John Hancock is obligated to pay the guaranteed crediting rate for each rate period. Performance does not reflect any applicable contract-level or certain participant-level charges, or any redemption fees imposed by an underlying fund company. S&PCredit ratings of AA- or better are considered to be high credit quality; credit ratings of BBB- are good credit quality and the lowest category of investment grade; credit ratings BB+ and below are lower-rated securities (junk bonds); and credit ratings of CCC+ or below have high default risk. Asset-Backed Security Risk for Fixed Income. A.M. Best RatingAM Best's methodologies for rating is a comprehensive overview of the credit rating process, which consists of quantitative and qualitative evaluations of balance sheet strength, operating performance, business profile, and enterprise risk management.Fitch RatingsThe terms investment grade and speculative grade have established themselves over time as shorthand to describe the categories AAA to BBB (investment grade) and BB to D (speculative grade). Not available to defined benefit plans. Past performance is no guarantee of future results and current performance may be lower or higher than the performance quoted. . An investor purchasing a fixed income security faces the risk that the value of that fixed income security may decline because the credit-worthiness of the issuer, guarantor or other counterparty may deteriorate or such party may fail to make timely payments of interest or principal to the investor. "Underlying fund" includes the underlying mutual fund, collective trust, or ETF in which a sub-account invests. Timely payment under unsecured fixed income securities is dependent entirely upon the performance of the issuer, guarantor or counterparty. A market decline could adversely affect the market value of existing fixed income investments of a portfolio, as well as the yield available on investments of new cash flows. This category can include corporate or government ultrashort bond portfolios, but it excludes international, convertible, multisector, and high yield bond portfolios. All Rights Reserved. Our responsibility is to express an opinion on these financial statements based on our audits. However, through its Stabilizing Agreements with one or more Stability Providers, the Fund is designed to meet Department of Labor requirements for 'grandfathered' default contributions under 29 CFR 2550.404c-5(e)(4)(v). Fees and expenses are only one of several factors that you should consider when making investment decisions. John Hancock Life Insurance Company has a more than 30-year track record of backing guaranteed interest contracts and has been a stable value asset manager since 2006, with total stable value assets under management above $2.7 billion with over 12,000 plans 1. The cumulative effect of fees and expenses can substantially reduce the growth of your retirement account. For further details, please refer to the Offering Circular and Declaration of Trust. The effect of short-term trading may disrupt or be potentially disruptive to the management of the fund underlying an investment option and may thereby adversely impact the underlying funds performance, either by impacting fund management practices or by increasing fund transaction costs. You can visit the Employee Benefit Security Administration's Web site for an example demonstrating the long-term effect of fees and expenses. Accordingly, the actual market value of the underlying assets may, at times, be greater than or less than the book value of the Portfolio. The total revenue John Hancock receives on this Fund is higher than those advised or sub-advised exclusively by unaffiliated entities. If the weighted value of certain indexes changes by more than 2%, John Hancock reserves the right to reset the crediting rate on October 1 or April 1. Although gathered from reliable sources, the information is not represented or warranted by Morningstar to be accurate, correct, complete or timely. Ultrashort is defined as 25% of the three-year average effective duration of the MCBI. Returns for any period greater than one year are annualized. The total revenue John Hancock and its affiliates receive from a fund advised or subadvised by John Hancock affiliates is higher than those advised or subadvised exclusively by unaffiliated entities. The underlying securities in each portfolio are the primary factor Morningstar uses as the investment objective and investment strategy stated in a funds prospectus may not be sufficiently detailed for our proprietary classification methodology. This investment option is deemed a 'Competing' investment option with the Federated Capital Preservation Fund and may not be available if the Federated Capital Preservation Fund is selected. Funds with scores in the top 10% of each category receive 5 stars (highest); the next 22.5%, 4 stars (above average); the next 35%, 3 stars (average); the next 22.5%, 2 stars (below average); and the bottom 10%, 1 star (lowest). NOT FDIC INSURED. John Hancock Life Insurance Company (U.S.A.) makes available a platform of investment alternatives to sponsors or administrators of retirement plans without regard to the individualized needs of any plan. MAY LOSE VALUE. The value of such securities depends on many factors, including, but not limited to, changes in interest rates, the structure of the pool and the priority of the securities within that structure, the credit quality of the underlying assets, the skill of the pools servicer, the market's perception of the pools servicer, and credit enhancement features (if any). Investment style tells you whether the underlying fund invests in securities of companies that exhibit growth-style characteristics, such as above-average revenue and earnings growth, or in securities that exhibit value-style characteristics, such as shares considered to be underpriced in relation to fundamental measures such as revenues, earnings and assets. If the John Hancock Stable Value Guaranteed Investment Fund ('SVGIF') is selected or if the Fund selected invests in the SVGIF, John Hancock may earn more from amounts invested in its general account via SVGIF than the interest amount it credits to SVGIF contract holders, depending on investment and market conditions affecting the general account, in which case this 'spread' revenue is retained by John Hancock. For the avoidance of doubt, Competing Investment Option will not include any self-directed brokerage account, or any investment option made available through a self-directed brokerage account. Although individual securities or individual funds may outperform the market, the entire market may decline as a result of rising interest rates, regulatory developments or deteriorating economic conditions. This letter is not a rule, regulation or statement of the Commission, and the Commission has neither approved nor . Stable value funds are a type of principal preservation investment available to 401 (k) plans, pensions, and other institutional funds. These transactions qualify as party-in-interest . John Hancock conducts business in English. Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The fixed income portfolios. Maturity/Duration for Fixed Income. You want a fund where the primary objective is the preservation of capital, You want principal protection and steady returns regardless of the market environment, You want the security of an account value guaranteed by John Hancock. 13. Here are three reasons why stable value funds can withstand a higher interest-rate environment. For the most up-to-date semiannual crediting rates, please call 800-395-1113. Sub-Account Inception Date: July 24, 2020 Underlying fund Inception Date: July 24, 2020. MetLife says that more than eight in 10 defined contribution plan sponsors offer stable value funds as an option to preserve capital, and retirement savers would do well to consider adding this asset class to the mix if it's not already part of their portfolio. Allocation percentages may vary or be adjusted due to market or economic conditions or other reasons as set out in the prospectus. These financial statements are the responsibility of the Plan's management. It is made up of John Hancock's (i) "Revenue from Sub-account", and (ii) the expenses of the underlying fund (based on expense ratios reported in the most recent prospectuses available as of the date of printing; "FER"). The Plan invests in the John Hancock Stable Value Fund which is a collective investment trust fund sponsored by John Hancock. Seeks to preserve capital and provide stability of principal while earning current income that exceeds money market rates over the long term. "Underlying fund" includes the underlying mutual fund, collective trust, or ETF in which a sub-account invests. This category can include corporate or government ultrashort bond portfolios, but it excludes international, convertible, multisector, and high yield bond portfolios. The credit quality breakdown does not give effect to the impact of any credit derivative investments made by the fund.Moody'sThe rating scale, running from a high of Aaa to a low of C, comprises 21 notches. Manager Risk for Fixed Income. The risk that John Hancock will default on its obligations under the contract or that other events could render the contract invalid. Consult your John Hancock representative for details. If John Hancock earns less than the crediting rate, John Hancock will pay the difference out of its own funds. If these charges were reflected, performance would be lower. Performance data for a sub-account for any period prior to the date introduced is shown in bold and is hypothetical based on the performance of the underlying fund. Your company's qualified retirement plan offers participants the opportunity to contribute to investment options available under a group annuity contract with John Hancock Life Insurance Company (U.S.A.) (John Hancock USA). The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Why stable value? This investment option is deemed a 'Competing' investment option with the Reliance Trust New York Life Anchor Account and may not be available if the Reliance Trust New York Life Anchor Account is selected. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). For current ratings, please visit www.johnhancock.com/who-we-are.html and refer to the Fact Sheet. Risks Relating to John Hancock. The objective of the John Hancock Stable Value Fund is preservation of capital and returns that beat money market funds over a full interest rate cycle. or legal statements made herein . The terms investment grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a specific security for investment purposes. Crediting Rate is set in advance and is guaranteed by John Hancock Life Insurance Company (USA) and will not be less than 1%. Although the underlying portfolio seeks to preserve the value of an investment, it is possible to lose money by investing in this portfolio. A Separate Account or a portfolio related to other benefit responsive contracts may invest in asset-backed securities. However, if the book value of the Fund exceeds the market value of underlying securities, the stabilizing agreements provide that the payment of certain withdrawals may be delayed for up to 12 months unless the plan or the participant requesting the withdrawal elects to accept such payment subject to a market value adjustment. The performance data presented represents past performance. The Fund will be launched on John Hancock's Signature Platform next year. Peer Group Performance: With respect to the Funds that display a Peer Group Performance. If the weighted value of certain indexes changes by more than 2%, John Hancock reserves the right to reset the crediting rate on October 1 or April 1. 142. This investment option is deemed a "Competing" investment option with the John Hancock Stable Value Fund and may not be available. Extension Risk. The fixed income portfolios selected for . i3. Fixed income, or bond Funds are often categorized by the duration and credit quality of the bonds held in the underlying fund. ***Morningstar Portfolio Ratings All Morningstar data is 2023 by Morningstar, Inc. All rights reserved. Index performance shown is for a broad-based securities market index. While an insolvency of JHLH should not diminish the assets of the Separate Account, it could delay the timing of payments to plan participants. ****Expense Ratio (ER) This material shows expenses for a specific unit class for investment options available under a John Hancock group annuity contract. Morningstar data is 2023 by Morningstar, Inc. All rights reserved. Any change in the FER of an underlying fund will affect the Expense Ratio of the investment option which invests in the underlying fund.The ER applies daily at a rate equivalent to the annual rate shown, and may vary to reflect changes in the expenses of an underlying fund and other factors.For Expense Ratio information current as of the most recent quarter end, please refer to the monthly Return and Fees listing available from John Hancock upon request. These investment options may be sub-accounts (pooled funds) investing directly in underlying mutual fund, collective trusts, or ETFs, or they may be Guaranteed Interest Accounts.The Funds offered on the JH Signature platform are classified into five risk categories. Please change your search terms and try new. Fund availability subject to regulatory approval and may vary from state to state. Significant Scale Date sub-account or Guaranteed Interest Account first available under group annuity contract. NOTES TO FINANCIAL STATEMENTS . "Underlying fund" or "fund" refers to the underlying mutual fund, collective trust, or exchanged traded fund ("ETF") in which the investment option invests.The FER is determined by the underlying fund and may be subject to fluctuation. The lowest investment-grade rating is Baa3. If these charges were reflected, performance would be lower. p45. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. Source: Morningstar Direct for Mutual Funds, as of the most recent month end. If the sub-account inception date is after February 23, 2007, then the class introduction date is the same as the sub-account inception date. 1A. Guarantees are provided to participating retirement plans through a rider on a group annuity contract issued by John Hancock Life Insurance Company.
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