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John Hancock Income Securities Trust
John Hancock Income Securities Trust launched in 1973 as one of the early closed-end funds focused on delivering consistent monthly income through a...
John Hancock Income Securities Trust
John Hancock Income Securities Trust launched in 1973 as one of the early closed-end funds focused on delivering consistent monthly income through a diversified bond portfolio. John Hancock Investment Management, a division of Manulife Investment Management, serves as the fund's adviser. The trust pools capital from public shareholders and deploys it across a broad swath of investment-grade fixed income, including U.S. Treasury and agency obligations, corporate bonds rated BBB or higher, and structured products such as mortgage-backed and asset-backed securities. The strategy emphasizes current income generation over capital appreciation. The portfolio typically divides exposure across three broad categories: U.S. government and agency debt, investment-grade corporate credit, and securitized assets like MBS, CMBS, and ABS. The trust can also hold a smaller allocation to high-yield corporates and foreign bonds, though the core orientation remains investment-grade. By operating as a closed-end fund, the structure allows the managers to avoid forced selling during market dislocations — maintaining exposure to less liquid pockets of the bond market that open-end mutual funds often avoid. The portfolio is managed by a team at Manulife Investment Management, with Andrew Arnott serving as President of the trust. Total net assets fluctuate with market pricing and distribution activity. The trust distributes income monthly under a managed distribution plan, a structure that appeals to retirees, income-oriented family offices, and institutional allocators seeking predictable cash flows. The monthly payout is set periodically by the board and can include return of capital in addition to net investment income. The trust trades on the New York Stock Exchange, providing daily liquidity at a price that may reflect a premium or discount to net asset value. Structurally, the trust differs from open-end bond funds in one critical way: a fixed capital base. The closed-end format eliminates daily shareholder redemptions, enabling the portfolio management team to invest in securities where liquidity premiums can be captured over a full market cycle. This structural differentiator means the trust can hold larger positions in structured credit and agency MBS without worrying about a redemption run forcing a fire sale — a genuine advantage in credit markets that periodically freeze.
General information
Firm type
Asset Manager
Year founded
1973
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Boston
Corporate office
Boston, MA, United States
Principals
Andrew G. Arnott
President
Sector focus
Frequently asked questions
How is John Hancock Income Securities Trust structured?
It operates as a closed-end fund that trades on the New York Stock Exchange under the ticker JHS. Unlike open-end mutual funds, the trust maintains a fixed number of shares. This structure allows portfolio managers to invest without the pressure of meeting daily shareholder redemptions. Shareholders buy and sell shares on the exchange at market price, which can diverge from the underlying net asset value.
What types of bonds does the trust invest in?
The trust primarily holds U.S. investment-grade debt. The portfolio typically spans U.S. Treasury and agency obligations, corporate bonds rated BBB or higher, and securitized products including mortgage-backed and asset-backed securities. A smaller sleeve may include high-yield corporate debt and non-U.S. bonds, though the investment-grade core defines the risk profile. The adviser, John Hancock Investment Management, has discretion over sector weightings.
Who manages the portfolio?
The trust is managed by John Hancock Investment Management, a division of Manulife Investment Management. The firm's fixed-income team handles day-to-day portfolio decisions. Andrew Arnott serves as President of the trust, overseeing governance and distribution policy. Specific portfolio managers are disclosed in the trust's regulatory filings.
How does the monthly distribution policy work?
The trust employs a managed distribution plan that pays shareholders monthly. The board sets the distribution rate periodically. Payments may consist of net investment income, capital gains, and return of capital. This structure appeals to income-focused investors such as retirees and certain institutional allocators. The sustainable yield varies based on the portfolio's actual earnings and realized gains.
Does the trust participate in fund commitments or only direct holdings?
The trust invests directly in individual fixed-income securities. It does not function as a fund-of-funds allocating to external managers. Holdings consist of specific bonds, notes, and structured products. The closed-end wrapper gives it access to direct ownership of less liquid securities that open-end structures may avoid.
What is the relationship between John Hancock and Manulife?
John Hancock is a U.S. division of Manulife Financial Corporation, a Canada-based global financial services group. John Hancock Investment Management serves as the adviser to the trust and is part of Manulife Investment Management. The parent relationship provides access to Manulife's global fixed-income research and trading infrastructure.
Which sectors does the trust explicitly avoid?
The trust does not hold equities, convertible bonds in significant size, or speculative-grade private credit. It purposefully limits high-yield exposure to a small portion of assets. The mandate restricts the trust to predominantly investment-grade debt, excluding venture capital, real estate equity, and other alternative asset classes that fall outside the stated income-oriented objective.
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