John Hancock has lowered fees for the John Hancock Freedom 529 college savings plan, a national, multi managed, strong performing 529 college savings plan sold through financial consultants, which recently surpassed $4 billion in assets under management.
Effective June 9, 2014: The Program Fee was lowered by 10 basis points for all portfolios, except the JH Money Market Portfolio which was lowered by 5 basis points, reducing the Program Fee for all portfolios to 25 basis points The Distribution and Service Fee for Fixed Income and Short-Term Bond Portfolios was reduced by 10 basis points Account holders who elect to receive account statements and transaction confirmations electronically are eligible for a waiver of the annual Account Maintenance Fee
In addition, effective September 2, 2014: The maximum up front sales charge for Fixed Income and Short-Term Bond Portfolios will be reduced to 4 percent from 5 percent The maximum up front sales charge for all other portfolios, including aged-based portfolios, will be reduced to 5 percent
"These fee reductions make our college savings plan more competitive and provide a greater value for advisors and their clients," said John Bryson, head of Product Management and College Savings, John Hancock Investments. "Ultimately, we strive to help families achieve their goals of improving their future through higher education; we're hopeful these actions not only help our current clients, but also attract interest on the part of prospective advisors and clients."
These 529 fee reductions follow other fee cuts within John Hancock Investments' mutual fund line-up. Over the past 2.5 years, John Hancock Investments reduced fees on 18 mutual funds.
"Saving and paying for college is a key goal for many families. John Hancock Investments is committed to our investors and these new fee reductions in our 529 college savings plan is just one way we are delivering higher investment value for them," said Andrew G. Arnott, president & CEO, John Hancock Investments.
John Hancock's multi-managed approach provides consumers with a choice of 22 investment options and access to more than 20 leading fund managers, offering a diversification of asset class, investment style and fund manager all in one plan. According to savingforcollege.com's plan composite rankings of advisor-sold plans, John Hancock Freedom 529 ranked 2nd among twenty-two plans after five years not including sales charge, 3rd after five years including sales charge and 2nd among eleven plans after ten years, including and not including sales charges.