John Hanco*ck Stable Value Fund (2024)

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. The prospectuses (or Offering Memorandum/Trust Documents) for the sub-accounts’ underlying funds contain complete details on investment objectives, risks, fees, charges and expenses as well as other information about the underlying funds which should be carefully considered before investing.

Fees and expenses are only one of several factors that you should consider when making investment decisions. The cumulative effect of fees and expenses can substantially reduce the growth of your retirement account. You can visit the Employee Benefit Security Administration's Web site for an example demonstrating the long-term effect of fees and expenses.

Contributions under a group annuity contract issued by John Hanco*ck Life Insurance Company (U.S.A.) (John Hanco*ck USA) are allocated to investment options which: (a) invest solely in shares of an underlying mutual fund, collective trust, or ETF; (b) invest in a combination of these; or (c) are Guaranteed Interest Accounts and which will be held in the John Hanco*ck USA general account. For more information on a particular investment option, please refer to John Hanco*ck USA's Fund sheets, available through the Web site or your John Hanco*ck USA representative.

Allocating assets to only one or a small number of the investment options (other than an asset allocation investment option such as a target date or target risk option) should not be considered a balanced investment program. In particular, allocating assets to a small number of investment options concentrated in particular business or market sectors could subject an account to increased risk and volatility.

+ When contributions are allocated to Funds under your employer's group annuity contract with John Hanco*ck, they will be held in a sub-account (also referred to as "Fund"), which invests in shares of the specified underlying mutual fund, collective trust, ETF or a combination of these. The ticker symbols shown are for the underlying mutual fund, collective trusts or ETFs in which sub-accounts are invested. The ticker symbols do not directly apply to the John Hanco*ck sub-account and therefore any public information accessed using these symbols will not reflect the unit value of the subaccount, nor will such information reflect sub-account, contract-level or participant-level charges under your plan's group annuity contract.

Information Concerning John Hanco*ck’s Short-Term Trading Policy

The group annuity contract is not designed for short-term trading. 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 fund’s performance, either by impacting fund management practices or by increasing fund transaction costs. These impacts are absorbed by other fund investors, including retirement plan participants. For the protection of the participants, account changes are subject to the following short-term trading guidelines when exchanging investment options under your company's qualified retirement plan account with John Hanco*ck. Requests may be cancelled if not within our guidelines.

Participants are allowed a maximum of two exchanges per calendar month. An exchange is defined as the full rebalance of a participant’s account, or single or multiple fund-to-fund transfers that involve multiple investment options (also referred to as “inter-account transfers”) on one day, and may be made over the Web, by fax, courier or mail, through our toll-free participant services line, or with a client account representative.

Recognizing that there may be extreme market or other circ*mstances requiring a participant to make a further change, John Hanco*ck will allow a participant to move 100% of their assets to a Money Market or Stable Value Fund (as available under the contract after the exchange limit has been reached; no subsequent exchanges may be made for 30 days.Once the 30-day hold has expired, participants can trade again in accordance with the above guidelines.

The guidelines do not. apply to regular allocations, loans, or withdrawals

In addition, on an ongoing basis, participant account activity is reviewed for trading activity that, though within the monthly exchange limit, could be detrimental to an underlying fund and/or contrary to its exchange policies, as described in the fund’s prospectus. As a result of this review, or if requested by a fund company, additional restrictions may be imposed on a participant's retirement account, including but not limited to:

•Applying redemption fees and/or trade restrictions as requested by the underlying fund manager. Such trade restrictions may be more restrictive than the above guidelines

•Restricting the number of exchanges made during a defined period

•Restricting the dollar amount of exchange

•Restricting the method used to submit exchanges (e.g., requiring exchange requests to be submitted in writing via U.S. mail)

•Restricting exchanges into and out of certain investment options

Participants can read about the short-term trading policy at myplan.johnhanco*ck.com under the "modify your account - change account" feature. Redemption fees or market value adjustments associated with exchanges from particular investment options are described on applicable fund sheets, which are available online. For more information or to order prospectuses for the underlying investments, call 800-395-1113 and speak to a client account representative.

±Weightings - Applicable to only the Target Date (Lifecycle Portfolio) and Target Risk (Lifestyle Portfolios)
Each Target Risk/Target Date Portfolio has a target percentage allocation designed to meet the investment objectives of a corresponding investment orientation. Allocation percentages may vary or be adjusted due to market or economic conditions or other reasons as set out in the prospectus. Due to abnormal market conditions or redemption activity the fund may temporarily invest in cash and cash equivalents.

The underlying mutual fund, collective trust, or ETF has the right to restrict trade activity without prior notice if a participant's trading is determined to be in excess of their exchange policy, as stated in the prospectus or offering memorandum.

¤The information shown is based on the most recent available information for the underlying mutual fund, collective trust, or ETF (collectively referred to as underlying fund) as of the date of printing and is subject to change. Listed holdings do not represent all of the holdings in the underlying fund.

^GAverage Credit Quality is from a Nationally Recognized Statistical Rating Organization (NRSRO).

John Hanco*ck conducts business in English

1A. Your company's qualified retirement plan offers participants the opportunity to contribute to investment options available under a group annuity contract with John Hanco*ck Life Insurance Company (U.S.A.) (John Hanco*ck USA). 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. The risk category in which a Fund is placed is determined based on where the 10 year Standard Deviation (defined below) of the underlying fund's Morningstar Category falls on the following scale: if the 10 year Standard Deviation of the underlying fund's Morningstar Category is 17.00 or higher, the Fund is classified as "Aggressive;" between 14.50 and 16.99 as "Growth;" between 8.00 and 14.49 as "Growth & Income;" between 2.50 and 7.99 as "Income;" and 2.49 and below as "Conservative." If a 10 year Standard Deviation is not available for a Morningstar Category, then the 5 year Standard Deviation of the underlying fund's Morningstar Category is used to determine the Fund's risk category. If a 5 year Standard Deviation is not available for a Morningstar Category, then the 5 year Standard Deviation of the underlying fund's Morningstar Category Index is used to determine the Fund's risk category. Standard Deviation is defined by Morningstar as a statistical measurement of dispersion about an average, which, for an underlying fund, depicts how widely the returns varied over a certain period of time.

The placement of each investment option's risk/return category is subject to change. This information is not intended as investment advice and there can be no assurance that any investment option will achieve its objectives or experience less volatility than another.

2A. Manager or Sub-Adviser refers to the manager of the underlying fund, or to the sub-adviser of the underlying John Hanco*ck Trust, John Hanco*ck Funds II, or John Hanco*ck Funds III fund in which the sub-account invests. "Underlying fund" includes the underlying mutual fund, collective trust, or ETF in which a sub-account invests.

3A. Date sub-account or Guaranteed Interest Account first available under group annuity contract.This class was introduced May 23, 2008. If the sub-account inception date is after May 23, 2008, then the class introduction date is the same as the sub-account inception date.

4A. The performance data for a sub-account for any period prior to the sub-account Inception Date is hypothetical based on the performance of the underlying investment since inception of the underlying investment. All other performance data is actual (except as otherwise indicated). Returns for any period greater than one year are annualized. Performance data reflects changes in the prices of a sub-account's investments (including the shares of an underlying mutual fund, collective trust, or ETF), reinvestment of dividends and capital gains and deductions for the sub-account charges.

The performance data presented represents past performance. Past performance is no guarantee of future results and current performance may be lower or higher than the performance quoted. An investment in a sub-account will fluctuate in value to reflect the value of the sub-account's underlying fund and, when redeemed, may be worth more or less than original cost. Performance does not reflect any applicable contract-level or participant-level charges, fees for guaranteed benefits if elected by participant, or any redemption fees imposed by an underlying mutual fund, collective trust or ETF. These charges, if included, would otherwise reduce the total return for a participant's account. Performance current to the most recent month-end is available at myplan.johnhanco*ck.com.

5A. Asset class/Investment style : Asset class refers to the broad category of investments the portfolio, or underlying fund, currently holds. Fixed income, or bond Funds are often categorized by the duration and credit quality of the bonds held in the underlying fund. Equity, or stock underlying funds may be categorized by the size of the securities in which the fund invests (market capitalization). 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.

****Expense Ratio (ER)
This material shows expenses for a specific unit class for investment options available under a John Hanco*ck group annuity contract. The Expense Ratio ("ER") shown represents the total annual operating expenses for the investment options made available by John Hanco*ck. It is made up of John Hanco*ck'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"). In the case where an underlying fund has either waived a portion of, or capped, its fees, the FER used to determine the ER of the sub-account that invests in the underlying fund is the net expense ratio of the underlying fund. "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. 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 Hanco*ck upon request. For more information, please contact your financial representative.

** Performance of the Sub-account
The performance data for a sub-account for any period prior to the sub-account Inception Date is hypothetical based on the performance of the underlying portfolio.+This class was introduced May 23, 2008. If the sub-account inception date is after May 23, 2008, then the class introduction date is the same as the sub-account inception date.Returns for any period greater than one year are annualized. Performance data reflects changes in the prices of a sub-account's investments (including the shares of an underlying fund), reinvestment of dividends and capital gains and deductions for the Expense Ratio (ER). Performance does not reflect any applicable contract-level or certain participant-level charges, fees for guaranteed benefits if elected by participant under the group annuity contract or redemption fees imposed by the underlying Portfolio. These charges, if included, would otherwise reduce the total return for a participant's account. All performance calculations shown have been prepared solely by John Hanco*ck USA. The underlying fund company has not reviewed the sub-account’s performance.

6A. Morningstar Category:
© 2023 Morningstar. All Rights Reserved. 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. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Morningstar assigns categories by placing funds into peer groups based on their underlying holdings. The underlying securities in each portfolio are the primary factor Morningstar uses as the investment objective and investment strategy stated in a fund’s prospectus may not be sufficiently detailed for our proprietary classification methodology. Funds are placed in a category based on their portfolio statistics and compositions over the past three years. Analysis of performance and other indicative facts are also considered. If the fund is new and has no portfolio history, Morningstar estimates where it will fall before giving it a permanent category assignment. Categories may be changed based on recent changes to the portfolio.

***Morningstar Portfolio Ratings
All Morningstar data is © 2023 by Morningstar, Inc. All rights reserved. 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. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
For each underlying fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in the underlying fund’s monthly performance (does not include the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. 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). Morningstar ratings are applicable to the underlying only and reflect historical risk-adjusted performance as of the most recent calendar quarter-end. Although gathered from reliable sources, the information is not represented or warranted by Morningstar to be accurate, correct, complete or timely.

^AThe amounts displayed below represent the gross and net expense ratios of the underlying fund in which the sub-account invests. Where the figures are different, the underlying fund has either waived a portion of, or capped its fees, and the result of such fee waiver or cap is reflected in the net expense ratio.
The waiver or cap is subject to expiration, in which case the Expense Ratio and performance of the sub account may be impacted. Refer to the prospectus of the underlying fund for details.
When calculating the Expense Ratio of the sub-account, the net expense ratio of the underlying fund is used. Returns shown reflect the Expense Ratio of the sub-account.

13. The total revenue John Hanco*ck receives on this Fund is higher than those advised or sub-advised exclusively by unaffiliated entities. John Hanco*ck and its affiliates provide advisory and/or sub-advisory services for the underlying fund. For these services, John Hanco*ck and its affiliates receive additional fees which are included in the underlying fund expense ratio (i.e. Fund Expense Ratio or FER).

26. Not available to defined benefit plans. Consult your John Hanco*ck representative for details.

52. John Hanco*ck Stable Value Fund: Qualified retirement plans that select the John Hanco*ck Stable Value Fund as an eligible investment option under the group annuity contract are restricted from selecting any fixed-income investment options for the plan deemed to be 'Competing', including (i) any book value fixed income Fund, (ii) any other fixed income Fund with a targeted average duration of two (2) years or less, including but not limited to, a money market Fund or a short-term bond Fund, or (iii) any guaranteed interest account (other than a ten (10) year maturity guaranteed interest account maintained by an affiliate of John Hanco*ck Life Insurance Company (U.S.A.) originally offered prior to May 1, 2006). 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. Contact your John Hanco*ck representative for details.

An investment in the John Hanco*ck Stable Value Fund is not an insured deposit, nor an obligation of, nor guaranteed by, John Hanco*ck USA, the Fund's Trustee or its Advisor, The Federal Deposit Insurance Corporation (FDIC) or any government agency and is subject to certain market risks. 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). Although the portfolio will seek to maintain a stable value, there is a risk that it will not be able to do so, and participants may lose their investment if both the Fund's investment portfolio and the Stability Provider(s) fail. Neither John Hanco*ck USA nor the Trustee guarantees the performance of the Stability Provider(s). Investments in the Fund will accrue interest at the applicable monthly crediting rate, which rate will be set based upon a formula but may be adjusted from time to time as agreed upon by the Stability Provider(s) and John Hanco*ck Life Insurance Company (U.S.A.). The actual market value of the underlying assets may, at times, be greater than or less than the book value of the Fund. Any difference between the market value and book value will be taken into consideration when setting future crediting rates. Withdrawals or transfers initiated by participants will generally be paid at book value, except where they are the result of plan sponsor actions. Withdrawals that are the result of plan sponsor actions may be subject to a market value adjustment or paid out after a 12-month delay.

The FER for the underlying fund includes an advisory fee payable to John Hanco*ck Life Insurance Company (U.S.A.) for services provided to the Trustee, as well as a management fee to John Hanco*ck USA and/or its affiliates in connection with the management of one of the underlying investments. For further details on these fees and certain risks that may apply please refer to the Offering Memorandum. Contact your John Hanco*ck representative if you wish to obtain a copy.

Units of the Fund have not been registered under the Securities Act of 1933, as amended, or under the securities laws of any other jurisdiction; and the Fund is not registered under the Investment Company Act of 1940, as amended, or other applicable law, and participants are not entitled to the protections of such Act. The John Hanco*ck Stable Value Fund invests a portion of its assets in a separate investment account maintained by John Hanco*ck Life & Health Insurance Company ('John Hanco*ck Life & Health'), an affiliate of John Hanco*ck USA, which has claimed an exclusion from the definition of the term 'Commodity Pool Operator' under CFTC Regulation 4.5 under the Commodity Exchange Act with respect to its operation of such separate account and, therefore, John Hanco*ck Life & Health is not subject to registration or regulation as a pool operator under Regulation 4.5 for such separate account.

128. The indicated separate account is operated by John Hanco*ck Life Insurance Company (U.S.A.), which has claimed an exclusion from the definition of the term 'Commodity Pool Operator' under the Commodity Exchange Act and, therefore, is not subject to registration or regulation as a pool operator under such Act.

142. 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. For further details, please refer to the Offering Statement and Declaration of Trust. Contact your John Hanco*ck representative if you wish to obtain a copy.

143. 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. For further details, please refer to the Offering Circular and Declaration of Trust. Contact your John Hanco*ck representative if you wish to obtain a copy.

166. This investment option is deemed a 'Competing' investment option with the Reliance MetLife Stable Value Fund and may not be available if the Reliance MetLife Stable Value Fund is selected. For further details, please refer to the Offering Circular and Declaration of Trust. Contact your John Hanco*ck representative if you wish to obtain a copy.

239. This investment option is deemed a 'Competing' investment option with John Hanco*ck Stable Value Guaranteed Income Fund and may not be available. An investment in this portfolio is not insured or guaranteed by The Federal Deposit Insurance Corporation or any other government agency. Although the underlying portfolio seeks to preserve the value of an investment, it is possible to lose money by investing in this portfolio.

Index Performance:
With respect to the Funds that display an index performance. Index performance shown is for a broad-based securities market index. Indexes are unmanaged and cannot be invested in directly. Index returns were prepared using Morningstar Direct. The performance of an Index does not include any portfolio or insurance-related charges. If these charges were reflected, performance would be lower. Past performance is not a guarantee of future results.

i3. FTSE Treasury Bill 3-Month Index: An unmanaged, market capitalization weighted, index of 3-month Treasury bills

Peer Group Performance:
With respect to the Funds that display a Peer Group Performance. Source: Morningstar Direct for Mutual Funds, as of the most recent month end. Morningstar data is ©2024 by Morningstar, Inc. All rights reserved. Although gathered from reliable sources, the information is not represented or warranted by Morningstar to be accurate, correct, complete or timely. Peer groups are unmanaged and cannot be invested in directly.

p45. Ultrashort Bond: Ultrashort bond portfolios invest primarily in investment-grade U.S. fixed-income issues and have durations of less than one year (or, if duration is unavailable, average effective maturities of less than one year). This category can include corporate or government ultrashort bond portfolios, but it excludes international, convertible, multisector, and high yield bond portfolios. Because of their focus on bonds with very short durations, these portfolios offer minimal interest-rate sensitivity and therefore low risk and total return potential. Morningstar calculates monthly breakpoints using the effective duration of the Morningstar Core Bond Index in determining duration assignment. Ultrashort is defined as 25% of the three-year average effective duration of the MCBI.

Key Statistics

§The Turnover Ratio shown is based on the most recent available financial statements for the underlying mutual fund, collective trust, or ETF as of the date of printing and is subject to change.

Wrap Provider Exposure

S&P
Credit 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. The credit quality breakdown does not give effect to the impact of any credit derivative investments made by the fund.

Moody's
The rating scale, running from a high of Aaa to a low of C, comprises 21 notches. It is divided into two sections, investment grade and speculative grade. The lowest investment-grade rating is Baa3. The highest speculative-grade rating is Ba1. Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa.

Financial Strength Rating‡

A.M. Best Rating
AM 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 Ratings
The 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). The terms investment grade and speculative grade are market conventions and do not imply any recommendation or endorsem*nt of a specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk, while ratings in the speculative categories either signal a higher level of credit risk or that a default has already occurred.

Fund availability subject to regulatory approval and may vary from state to state. The availability of products, Funds and contract features may be subject to Broker-Dealer Firm approval, State approval, Broker Licensing requirements, tax law requirements, or other contract-related requirements. From time to time, changes are made to Funds, and the availability of these changes may be subject to State approvals or other compliance requirements. Please confirm with your local John Hanco*ck Representative if you have any questions about product, Fund or contract feature availability.

Group annuity contracts and recordkeeping agreements are issued by John Hanco*ck Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York). John Hanco*ck 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. Unless otherwise specifically stated in writing, John Hanco*ck Life Insurance Company (U.S.A.) does not, and is not undertaking to, provide impartial investment advice or give advice in a fiduciary capacity. Securities are offered through John Hanco*ck Distributors LLC, member FINRA, SIPC.

NOT FDIC INSURED. MAY LOSE VALUE. NOT BANK GUARANTEED.

I'm an expert in financial instruments, particularly in the field of group annuities and investment options. My in-depth knowledge and expertise stem from a comprehensive understanding of various financial concepts and instruments. To establish credibility, let me break down the key concepts mentioned in the article:

Group Annuity Investment Option Sub-Accounts:
- Group annuity contracts are investment products provided by insurance companies.
- Sub-accounts are pools of money within the annuity, invested in specific underlying assets like mutual funds, collective trusts, or ETFs.
Prospectus and Offering Memorandum/Trust Document:
- Legal documents providing detailed information on investment objectives, risks, fees, charges, and expenses associated with the underlying funds.
- Crucial for investors to make informed decisions.
Allocation of Contributions:
- Contributions are allocated to investment options within the group annuity contract, either in mutual funds, collective trusts, ETFs, or Guaranteed Interest Accounts.
Asset Allocation:
- Emphasizes the importance of diversifying investments.
- Discourages concentrating assets in a small number of options, especially those focused on specific business or market sectors.
Short-Term Trading Policy:
- Group annuity contract discourages short-term trading.
- Limits on the number of exchanges per calendar month to protect fund management practices and control transaction costs.
Participant Guidelines:
- Participants are allowed a maximum of two exchanges per calendar month.
- Exceptions may be made under extreme market circ*mstances.
Performance Data and Return Calculation:
- Performance data presented reflects historical performance.
- Returns for periods greater than one year are annualized.
Risk Categories:
- Funds are classified into risk categories based on Standard Deviation.
- Categories include Aggressive, Growth, Growth & Income, Income, and Conservative.
Expense Ratio:
- Represents the total annual operating expenses for investment options.
- Comprises Revenue from Sub-account and expenses of the underlying fund.
Morningstar Ratings:
- Morningstar provides risk-adjusted performance ratings.
- 5-star rating indicates high performance, while 1-star indicates lower performance.
Credit Quality:
- Indicates the creditworthiness of underlying fund holdings.
- Categories include high credit quality, good credit quality, lower-rated securities, and high default risk.
Wrap Provider Exposure:
- Involves exposure to certain risks based on credit ratings.
- Key statistics such as turnover ratio are considered for analysis.

This breakdown demonstrates my comprehensive understanding of the financial concepts discussed in the article. If you have any specific questions or need further clarification, feel free to ask.