EX-99.(H)(8) 2 d846705dex99h8.htm EXPENSE LIMITATION LETTER AGREEMENT AND VOLUNTARY EXPENSE LIMITATION NOTICE Expense Limitation Letter Agreement and Voluntary Expense Limitation Notice

 

John Hancock Investment Management LLC

200 Berkeley Street

Boston, MA 02116

  LOGO

June 27, 2024

To the Trustees of

John Hancock Funds

200 Berkeley Street

Boston, MA 02116

 

Re:

Expense Limitation Letter Agreement and Voluntary Expense Limitation Notice

With reference to each of the Advisory Agreements approved by the Board or entered into by and between John Hancock Investment Management LLC (the “Adviser”) and each of the trusts listed in Appendix A to this letter (each, a “Trust” and collectively, the “Trusts”), on behalf of each of their respective series listed in Appendix A (each, a “Fund” and collectively, the “Funds”), we hereby notify you as follows:

1. The Adviser agrees to contractually waive its advisory fees or, to the extent necessary, reimburse other expenses of each Fund as set forth in Appendix B, Appendix C, Appendix D, Appendix E, and Appendix F hereto.

2. The Adviser agrees to voluntarily waive its advisory fees or, to the extent necessary, reimburse other expenses of each Fund as set forth in Appendix G, Appendix H, Appendix I, and Appendix J hereto.

3. We understand and intend that the Trusts will rely on this undertaking in overseeing the preparation and filing of Post-effective Amendments to the Registration Statement on Form N-1A for the Trusts and the Funds with the Securities and Exchange Commission, in accruing each Fund’s expenses for purposes of calculating its net and gross asset value per share, and for other purposes permitted under Form N-1A and/or the Investment Company Act of 1940, as amended, and we expressly permit the Trusts so to rely.

 

Very truly yours,
JOHN HANCOCK INVESTMENT MANAGEMENT LLC
By:  

/s/ Jeffrey H. Long

  Jeffrey H. Long
  Chief Financial Officer


Agreed and Accepted

on behalf of each applicable Trust listed in Appendix A

 

By:  

/s/ Fernando A. Silva

  Fernando A. Silva
  Chief Financial Officer

A copy of the document establishing each Trust is filed with the Secretary of The Commonwealth of Massachusetts. This Agreement is executed by the officer in his capacity as such and not as an individual and is not binding upon any of the Trustees, officers or shareholders of the Trusts individually but only upon the assets of the Funds.


APPENDIX A

TRUSTS and Funds

JOHN HANCOCK BOND TRUST

John Hancock ESG Core Bond Fund

John Hancock Government Income Fund

John Hancock High Yield Fund

John Hancock Investment Grade Bond Fund

John Hancock Short Duration Bond Fund

JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND

John Hancock California Municipal Bond Fund

JOHN HANCOCK CAPITAL SERIES

John Hancock Classic Value Fund

John Hancock U.S. Global Leaders Growth Fund

JOHN HANCOCK CURRENT INTEREST

John Hancock Money Market Fund

JOHN HANCOCK EXCHANGE-TRADED FUND TRUST

John Hancock Corporate Bond ETF

John Hancock Disciplined Value International Select ETF

John Hancock Dynamic Municipal Bond ETF

John Hancock Fundamental All Cap Core ETF

John Hancock High Yield ETF

John Hancock International High Dividend ETF

John Hancock Mortgage-Backed Securities ETF

John Hancock Multifactor Developed International ETF

John Hancock Multifactor Emerging Markets ETF

John Hancock Multifactor Large Cap ETF

John Hancock Multifactor Mid Cap ETF

John Hancock Multifactor Small Cap ETF

John Hancock Preferred Income ETF

John Hancock U.S. High Dividend ETF

JOHN HANCOCK INVESTMENT TRUST

John Hancock Balanced Fund

John Hancock Disciplined Value Global Long/Short Fund

John Hancock Disciplined Value International Fund

John Hancock Diversified Macro Fund

John Hancock Diversified Real Assets Fund

John Hancock Emerging Markets Equity Fund

John Hancock ESG International Equity Fund

John Hancock ESG Large Cap Core Fund

John Hancock Fundamental Equity Income Fund

John Hancock Fundamental Large Cap Core Fund

John Hancock Global Climate Action Fund

John Hancock Global Environmental Opportunities Fund

 

A-1


John Hancock Global Thematic Opportunities Fund

John Hancock Infrastructure Fund

John Hancock International Dynamic Growth Fund

John Hancock Mid Cap Growth Fund

John Hancock Seaport Long/Short Fund

John Hancock Small Cap Core Fund

JOHN HANCOCK INVESTMENT TRUST II

John Hancock Financial Industries Fund

John Hancock Regional Bank Fund

JOHN HANCOCK MUNICIPAL SECURITIES TRUST

John Hancock High Yield Municipal Bond Fund

John Hancock Municipal Opportunities Fund

John Hancock Short Duration Municipal Opportunities Fund

JOHN HANCOCK SOVEREIGN BOND FUND

John Hancock Bond Fund

JOHN HANCOCK STRATEGIC SERIES

John Hancock Income Fund

 

A-2


APPENDIX B

Fund Level Contractual Limitation on Fund Level Expenses

For purposes of this Appendix:

The Adviser contractually agrees to reduce its management fee for the Fund or, if necessary, make payment to the Fund, in an amount equal to the amount by which the “Expenses” of the Fund exceed the percentage of average daily net assets (on an annualized basis) of the Fund as set forth in the table below. “Expenses” means all the expenses of the Fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, (e) Rule 12b-1 fees, (f) transfer agent fees and service fees, (g) shareholder servicing fees, (h) borrowing costs, (i) prime brokerage fees, (j) acquired fund fees and expenses paid indirectly, and (k) short dividend expense.

“Expense Limit” means the percentage of a Fund’s average daily net assets (on an annualized basis) set forth below.

The current expense limitation agreement expires on the date specified, unless renewed by mutual agreement of the Fund and the Adviser based upon a determination that this is appropriate under the circumstances at that time.

 

Fund

   Limit on Fund Level
Expenses
    Expiration Date of
Expense Limit
 

California Municipal Bond Fund

     0.55      9/30/2025 1 

Disciplined Value Global Long/Short Fund

     1.53      2/28/2026 2 

Diversified Macro Fund

     1.33     2/28/2025  

ESG Core Bond Fund

     0.45     9/30/2025 1 

ESG International Equity Fund

     0.85     2/28/2025  

ESG Large Cap Core Fund

     0.75     2/28/2025  

Fundamental Equity Income Fund

     0.71     7/31/2025  

Global Climate Action Fund

     0.84     7/31/2025  

Global Environmental Opportunities Fund

     0.84     2/28/2025  

Global Thematic Opportunities Fund

     0.84     2/28/2025  

Government Income Fund 

     0.60     9/30/2025 1 

 

1 

At the June 25-27, 2024 meeting of the Board of Trustees of the Trust, the Adviser notified the Board of, and the Board approved, the renewal of the contractual limit on fund expenses for California Municipal Bond Fund (0.55%), ESG Core Bond Fund (0.45%), Government Income Fund (0.60%), High Yield Municipal Bond Fund (0.58%), Investment Grade Bond Fund (0.38%), Municipal Opportunities Fund (0.55%), Short Duration Bond Fund (0.29%), and Short Duration Municipal Opportunities Bond Fund (0.43%) each an expiration date of September 30, 2025, each effective upon the current expiration date of September 30, 2024.

2 

At the June 25-27, 2024 meeting of the Board of Trustees of the Trust, the Adviser notified the Board of, and the Board approved, the establishment of the contractual limit on fund level expenses for the Disciplined Value Global Long/Short Fund, with an expiration date of February 28, 2026, effective as of the commencement of operations of the Disciplined Value Global Long/Short Fund.

 

B-1


High Yield Municipal Bond Fund

     0.58     9/30/2025 1 

International Dynamic Growth Fund

     0.83     2/28/2025  

Investment Grade Bond Fund

     0.38     9/30/2025 1 

Municipal Opportunities Fund

     0.55     9/30/2025 1 

Short Duration Bond Fund

     0.29     9/30/2025 1 

Short Duration Municipal Opportunities Bond Fund

     0.43     9/30/2025 1 

 

B-2


APPENDIX C

Fund Level Contractual Limitation on Total Operating Expenses

For purposes of this Appendix:

The Adviser contractually agrees to reduce its management fee for the Fund or, if necessary, make payment to the Fund, in an amount equal to the amount by which the “Expenses” of the Fund exceed the percentage of average daily net assets (on an annualized basis) of the Fund as set forth in the table below. “Expenses” means all the expenses of the Fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, (e) borrowing costs, (f) prime brokerage fees, (g) acquired fund fees and expenses paid indirectly, and (h) short dividend expense.

“Expense Limit” means the percentage of a Fund’s average daily net assets (on an annualized basis) set forth below.

The current expense limitation agreement expires on the date specified, unless renewed by mutual agreement of the Fund and the Adviser based upon a determination that this is appropriate under the circumstances at that time.

 

Fund

   Limit on Fund Level
Expenses
    Expiration Date of
Expense Limit
 

John Hancock Corporate Bond ETF

     0.29     8/31/2025  

John Hancock Disciplined Value International Select ETF

     0.69     8/31/2025  

John Hancock Dynamic Municipal Bond ETF

     0.39     8/31/2025  

John Hancock Fundamental All Cap Core ETF

     0.72     8/31/2025  

John Hancock High Yield ETF

     0.52     8/31/2025  

John Hancock International High Dividend ETF

     0.46     8/31/2025  

John Hancock Mortgage-Backed Securities ETF

     0.39     8/31/2025  

John Hancock Multifactor Large Cap ETF

     0.29     8/31/2025  

John Hancock Multifactor Mid Cap ETF

     0.42     8/31/2025  

John Hancock Multifactor Developed International ETF

     0.39     8/31/2025  

John Hancock Multifactor Emerging Markets ETF

     0.49     8/31/2025  

John Hancock Multifactor Small Cap ETF

     0.42     8/31/2025  

John Hancock Preferred Income ETF

     0.54     8/31/2025  

John Hancock U.S. High Dividend ETF

     0.34     8/31/2025  

 

C-1


APPENDIX D

Class Level Contractual Total Operating Expense Limitations

For purposes of this Appendix:

“Expenses” means all the expenses of a class of shares of a Fund (including those expenses of the Fund attributable to such class) but excluding: (i) taxes; (ii) portfolio brokerage commissions; (iii) interest expense; (iv) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business; (v) acquired fund fees and expenses paid indirectly; (vi) borrowing costs; (vii) prime brokerage fees; (viii) short dividend expense; and (ix) fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund.

“Expense Limit” means the percentage of average daily net assets (on an annualized basis) attributable to a class of shares of the Funds set forth below.

The Adviser contractually agrees to waive advisory fees or, if necessary, reimburse expenses or make payment to a specific class of shares of the Fund (up to the amount of the expenses relating solely to such class of shares), in an amount equal to the amount by which the Expenses of such class of shares exceed the Expense Limit for such class set forth in the table below. The current expense limitation agreements expire on the dates specified, unless renewed by mutual agreement of the Fund and the Adviser based upon a determination that this is appropriate under the circumstances at that time.

The Expense Limit for the classes of shares of the Funds indicated below for the purposes of this Appendix shall be as follows:

 

D-1


Fund

   Class
A
    Class
C
    Class
I
    Class
R2
     Class
R4
     Class
R6
    Class
NAV
    Expiration Date
of Expense Limit
 

Disciplined Value International Fund

     N/A       N/A       0.98     N/A        N/A        0.88     N/A       2/28/2024  

Fundamental Large Cap Core Fund

     N/A       1.82     0.78     N/A        N/A        N/A       N/A       2/28/2025  

Global Thematic Opportunities Fund

     1.19     1.94     0.94     N/A        N/A        N/A       N/A       2/28/2025  

Infrastructure Fund

     1.31     2.01     1.00     N/A        N/A        0.92     0.92     2/28/2025  

Short Duration Bond Fund

     0.65     1.40     0.40     N/A        N/A        0.29     N/A       9/30/2024  

 

D-2


APPENDIX E

Fund Level Contractual Limit on Other Expenses

For purposes of this Appendix:

The Adviser contractually agrees to reduce its management fee for the Fund or, if necessary, make payment to the Fund, in an amount equal to the amount by which the “Expenses” of the Fund exceed the percentage of average daily net assets (on an annualized basis) of the Fund as set forth in the table below. “Expenses” means all the expenses of the Fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, (e) advisory fees, (f) Rule 12b-1 fees, (g) transfer agent fees and service fees, (h) shareholder servicing fees, (i) borrowing costs, (j) prime brokerage fees, (k) acquired fund fees and expenses paid indirectly, and (l) short dividend expense.

“Expense Limit” means the percentage of a Fund’s average daily net assets (on an annualized basis) set forth below.

The current expense limitation agreement expires on the date specified, unless renewed by mutual agreement of the Fund and the Adviser based upon a determination that this is appropriate under the circumstances at that time.

 

Fund

  

Limit on Other

Expenses

  

Expiration Date of

Expense Limit

 

E-1


APPENDIX F

Fund Level Contractual Investment Management Fee Waivers

The Adviser agrees to reduce John Hancock Diversified Real Assets Fund’s management fee by an annual rate of 0.05% of the Fund’s average daily net assets. The reduction will continue until at least July 31, 2025.

The Adviser agrees to reduce John Hancock Emerging Markets Equity Fund’s management fee by an annual rate of 0.15% of the Fund’s average daily net assets. The reduction will continue until at least February 28, 2025.

The Adviser agrees to reduce John Hancock Mid Cap Growth Fund’s management fee by an annual rate of 0.07% of the Fund’s average daily net assets. The reduction will continue until at least July 31, 2025.

 

F-1


APPENDIX G

Class Level Voluntary Total Operating Expense Limitations*

For purposes of this Appendix:

“Expenses” means all the expenses of a class of shares of the Fund (including those expenses of the Fund attributable to such class) but excluding: (i) taxes; (ii) portfolio brokerage commissions; (iii) interest expense; (iv) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business; (v) acquired fund fees and expenses paid indirectly; (vi) short dividend expense; and (vii) fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund.

“Expense Limit” means the percentage of average daily net assets (on an annualized basis) attributable to a class of shares of the Fund set forth below.

The Adviser voluntarily agrees to waive advisory fees or, if necessary, reimburse expenses or make payment to a specific class of shares of the Fund (up to the amount of the expenses relating solely to such class of shares), in an amount equal to the amount by which the Expenses of such class of shares exceed the Expense Limit for such class set forth in the table below.

The Expense Limit for the classes of shares of the Fund indicated below for the purposes of this Appendix shall be as follows:

 

Fund

   Classes
A
     B      I      R2      R4      R5      R6  

N/A

                    

 

*

These fee waivers and/or expense reimbursements are voluntary and may be amended or terminated at any time by the Adviser on notice to the Trust

 

G-1


APPENDIX H

Fund Level Voluntary Limit on Other Expenses*

For purposes of this Appendix:

The Adviser voluntarily agrees to reduce its management fee for the Fund or, if necessary, make payment to the Fund, in an amount equal to the amount by which the “Other Expenses” of the Fund exceed the percentage of average daily net assets (on an annualized basis) of the Fund as set forth in the table below. “Other Expenses” means all the expenses of the Fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, (e) investment management fees, (f) Rule 12b-1 fees, (g) transfer agent fees and service fees, (h) shareholder servicing fees, (i) borrowing costs, (j) prime brokerage fees, (k) acquired fund fees and expenses paid indirectly, and (l) short dividend expense.

 

Fund

   Limit on Other
Expenses
 

Balanced Fund

     0.20

Classic Value Fund

     0.20

Emerging Markets Equity Fund

     0.25

Financial Industries Fund

     0.20

Fundamental Large Cap Core Fund

     0.20

Infrastructure Fund

     0.25

Regional Bank Fund

     0.20

Seaport Long/Short Fund

     0.20

Small Cap Core Fund

     0.20

U.S. Global Leaders Growth Fund

     0.20

Bond Fund

     0.15

High Yield Fund

     0.15

Income Fund

     0.15

Money Market Fund

     0.15

 

*

These fee waivers and/or expense reimbursements are voluntary and may be amended or terminated at any time by the Adviser on notice to the Trust.

 

H-1


APPENDIX I

Voluntary Money Market Fund Expense Limitation Agreement

For John Hancock Money Market Fund, the Adviser and its affiliates may voluntarily waive a portion of their fees (including, but not limited to, distribution and service (Rule 12b-1) fees) and/or reimburse certain expenses to the extent necessary to assist the Fund in attempting to avoid a negative yield. In addition, the Adviser and its affiliates have voluntarily agreed to waive a portion of their fees (including, but not limited to, Rule 12b-1 fees) and/or reimburse certain expenses to the extent necessary to assist the fund in attempting to achieve a positive yield. These fee waivers and/or expense reimbursements are voluntary and may be amended or terminated at any time by the Adviser on notice to the Trust.

 

I-1