EXHIBIT (h)(5)
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| John Hancock Investment Management LLC
200 Berkeley Street Boston, MA 02116 |
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December 12, 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.
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| Very truly yours, |
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| JOHN HANCOCK INVESTMENT MANAGEMENT LLC |
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| By: |
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/s/ Jeffrey H. Nataupsky |
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Jeffrey H. Nataupsky |
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Chief Financial Officer |
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| Agreed and Accepted |
| on behalf of each applicable Trust listed in Appendix A |
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| By: |
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/s/ Fernando A. Silva |
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Fernando A. Silva |
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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 Core Bond ETF
John Hancock Core
Plus Bond ETF
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
A-1
John Hancock Global Climate Action Fund
John Hancock Global Environmental Opportunities Fund
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.
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| Fund |
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Limit on Fund Level
Expenses |
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Expiration Date of
Expense Limit |
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| California Municipal Bond Fund |
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0.43 |
% |
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9/30/2025 |
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| Disciplined Value Global Long/Short Fund |
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1.53 |
% |
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2/28/2026 |
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| Diversified Macro Fund |
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1.33 |
% |
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2/28/2025 |
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| ESG Core Bond Fund |
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0.45 |
% |
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9/30/2025 |
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| ESG International Equity Fund |
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0.85 |
% |
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2/28/2026 |
1 |
| ESG Large Cap Core Fund |
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0.75 |
% |
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2/28/2026 |
1 |
| Fundamental Equity Income Fund |
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0.71 |
% |
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7/31/2025 |
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| Global Climate Action Fund |
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0.84 |
% |
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7/31/2025 |
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| Global Environmental Opportunities Fund |
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0.84 |
% |
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2/28/2026 |
1 |
| Global Thematic Opportunities Fund |
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0.84 |
% |
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2/28/2026 |
1 |
| Government Income Fund |
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0.60 |
% |
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9/30/2025 |
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| High Yield Municipal Bond Fund |
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0.45 |
% |
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9/30/2025 |
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| International Dynamic Growth Fund |
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0.83 |
% |
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2/28/2026 |
1 |
| Investment Grade Bond Fund |
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0.38 |
% |
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9/30/2026 |
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| Municipal Opportunities Fund |
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0.51 |
% |
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9/30/2025 |
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| Short Duration Bond Fund |
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0.29 |
% |
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9/30/2025 |
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| Short Duration Municipal Opportunities Bond Fund |
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0.39 |
% |
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9/30/2025 |
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| 1 |
At the December 10-12, 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 level expenses for ESG International Equity Fund (0.85%); ESG Large Cap Core Fund (0.75%); Global Environmental Opportunities Fund
(0.84%); Global Thematic Opportunities Fund (0.84%); and International Dynamic Growth Fund (0.83%), each with an expiration date of February 28, 2026, each effective upon the current expiration date of February 28, 2025.
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B-1
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.
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| Fund |
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Limit on Fund Level
Expenses |
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Expiration Date of
Expense Limit |
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| John Hancock Core Bond ETF |
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0.29 |
% |
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8/31/2026 |
1 |
| John Hancock Core Plus Bond ETF |
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0.36 |
% |
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8/31/2026 |
2 |
| John Hancock Corporate Bond ETF |
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0.29 |
% |
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8/31/2025 |
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| John Hancock Disciplined Value International Select ETF |
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0.69 |
% |
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8/31/2025 |
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| John Hancock Dynamic Municipal Bond ETF |
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0.39 |
% |
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8/31/2025 |
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| John Hancock Fundamental All Cap Core ETF |
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0.72 |
% |
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8/31/2025 |
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| John Hancock High Yield ETF |
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0.52 |
% |
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8/31/2025 |
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| John Hancock International High Dividend ETF |
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0.46 |
% |
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8/31/2025 |
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| John Hancock Mortgage-Backed Securities ETF |
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0.39 |
% |
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8/31/2025 |
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| John Hancock Multifactor Large Cap ETF |
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0.29 |
% |
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8/31/2025 |
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| John Hancock Multifactor Mid Cap ETF |
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0.42 |
% |
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8/31/2025 |
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| John Hancock Multifactor Developed International ETF |
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0.39 |
% |
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8/31/2025 |
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| John Hancock Multifactor Emerging Markets ETF |
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0.49 |
% |
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8/31/2025 |
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| John Hancock Multifactor Small Cap ETF |
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0.42 |
% |
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8/31/2025 |
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| John Hancock Preferred Income ETF |
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0.54 |
% |
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8/31/2025 |
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| John Hancock U.S. High Dividend ETF |
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0.34 |
% |
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8/31/2025 |
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| 1 |
At the December 10-12, 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 total operating expenses for the John Hancock Core Bond ETF, with an expiration date of August 31, 2026, effective as of the
commencement of operations of the John Hancock Core Bond ETF. |
| 2 |
At the December 10-12, 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 total operating expenses for the John Hancock Core Plus Bond ETF, with an expiration date of August 31, 2026, effective as of the
commencement of operations of the John Hancock Core Plus Bond ETF. |
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
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Class |
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Class |
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Class |
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Class |
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Class |
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Class |
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Class NAV |
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Expiration Date
of Expense Limit |
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| Fund |
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A |
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C |
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I |
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R2 |
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R4 |
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R6 |
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| Fundamental Large Cap Core Fund |
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N/A |
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1.82 |
% |
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0.78 |
% |
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N/A |
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N/A |
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N/A |
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N/A |
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2/28/2025 |
1 |
| Global Thematic Opportunities Fund |
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1.19 |
% |
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1.94 |
% |
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0.94 |
% |
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N/A |
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N/A |
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N/A |
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N/A |
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2/28/2026 |
2 |
| Infrastructure Fund |
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1.31 |
% |
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2.01 |
% |
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1.00 |
% |
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N/A |
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N/A |
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0.92 |
% |
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0.92 |
% |
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2/28/2025 |
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| Investment Grade Bond Fund |
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N/A |
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N/A |
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0.49 |
% |
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N/A |
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N/A |
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N/A |
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N/A |
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9/30/2026 |
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| Short Duration Bond Fund |
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0.65 |
% |
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1.40 |
% |
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0.40 |
% |
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N/A |
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N/A |
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0.29 |
% |
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N/A |
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9/30/2024 |
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| 1 |
At the December 10-12, 2024 meeting of the Board of Trustees of the
Trust, the Adviser notified the Board of, and the Board approved, the renewal of the class level limit on total operating expenses for Fundamental Large Cap Core Fund for Class I Shares (0.78%), with an expiration date of February 28,
2026, effective upon the current expiration date of February 28, 2025. |
| 2 |
At the December 10-12, 2024 meeting of the Board of Trustees of the
Trust, the Adviser notified the Board of, and the Board approved, the renewal of the class level limit on total operating expenses for Global Thematic Opportunities Fund for Class A Shares (1.19%); Class C Shares (1.94%); and Class I
Shares (0.94%), each with an expiration date of February 28, 2026, each effective upon the current expiration date of February 28, 2025. |
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.
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| Fund |
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Limit on Other
Expenses |
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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, 20261.
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.
| 1 |
At the December 10-12, 2024 meeting of the Board of Trustees of the
Trust, the Adviser notified the Board of, and the Board approved, the renewal of the advisory waiver for John Hancock Emerging Markets Equity Fund (0.15%), with an expiration date of February 28, 2026, effective upon the current expiration date
of February 28, 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:
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Classes |
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| Fund |
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A |
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B |
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I |
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R2 |
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R4 |
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R5 |
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R6 |
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| N/A |
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| * |
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.
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| Fund |
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Limit on Other
Expenses |
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| Balanced Fund |
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0.20 |
% |
| Classic Value Fund |
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0.20 |
% |
| Emerging Markets Equity Fund |
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0.25 |
% |
| Financial Industries Fund |
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0.20 |
% |
| Fundamental Large Cap Core Fund |
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0.20 |
% |
| Infrastructure Fund |
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0.25 |
% |
| Regional Bank Fund |
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0.20 |
% |
| Seaport Long/Short Fund |
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0.20 |
% |
| Small Cap Core Fund |
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0.20 |
% |
| U.S. Global Leaders Growth Fund |
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0.20 |
% |
| Bond Fund |
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0.15 |
% |
| High Yield Fund |
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0.15 |
% |
| Income Fund |
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0.15 |
% |
| Money Market Fund |
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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