EX-99.(H)(11) 2 b89954a1exv99wxhyx11y.htm FORM OF EXPENSE LIMITATION AGREEMENT DATED___, 2012 exv99wxhyx11y
Exhibit (h)(11)
DRAFT FORM OF
     
John Hancock Investment Management Services, LLC
  (GRAPHIC)
   
601 Congress Street
 
Boston, MA 02210
   
March 23, 2012
To the Trustees of:
John Hancock Funds II
601 Congress Street
Boston, MA 02210
Re: Amended and Restated Expense Limitation Agreement and Voluntary Expense Limitation Notice
With reference to the Amended and Restated Advisory Agreement dated September 26, 2008, entered into by and between John Hancock Investment Management Services, LLC (the “Adviser”) and John Hancock Funds II (the “Trust”), as amended, on behalf of each series of the Trust (each, a “Fund” and collectively, the “Funds”), we hereby notify you as follows:
1. The Adviser agrees to waive its management fee for each Fund or, to the extent necessary, bear other expenses, as set forth in the Appendix attached hereto. As noted in the Appendix, certain waivers are voluntary and may be terminated at any time by the Adviser upon notice to the Trust.
2. We understand and intend that you 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 Trust and the Funds with the Securities and Exchange Commission and in accruing each Fund’s expenses for purposes of calculating its net 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 you so to rely.
Very truly yours,
JOHN HANCOCK INVESTMENT MANAGEMENT SERVICES, LLC
         
     
  By:      
    Name:   Jeffrey H. Long   
    Title:   Chief Financial Officer   
 
ACCEPTED BY:
JOHN HANCOCK FUNDS II
         
     
  By:      
    Name:   Andrew Arnott   
    Title:   Executive Vice President   

 


 

         
APPENDIX A
Fund Level Contractual Expense Limitations
— The Adviser contractually agrees to reduce its management fee for each Fund listed below, 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 annual net assets (on an annualized basis) of the Fund set forth below. “Other Expenses” means the expenses of the Fund, excluding (a) advisory fees (b) taxes, (c) brokerage commissions, (d) interest expense, (e) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business (f) 12b-1 fees, (g) transfer agency fees and service fees, (h) blue-sky fees, (i) printing and postage fees, (j) underlying fund expenses (“acquired fund fees”) and (k) short dividend expense.
For the following Funds the current expense limitation agreement expires on December 31, 2012 (March 1, 2013 in the case of Lifecycle 2050 Portfolio and December 31, 2013 in the case of all Retirement Portfolios), 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.
         
Short Term Government Income Fund
    0.08 %
Core Diversified Growth & Income Portfolio
    0.06 %
Core Fundamental Holdings Portfolio
    0.06 %
Core Global Diversification Portfolio
    0.06 %
Lifecycle 2050 Portfolio
    0.05 %
Retirement 2050 Portfolio
    0.05 %
Retirement 2045 Portfolio
    0.05 %
Retirement 2040 Portfolio
    0.05 %
Retirement 2035 Portfolio
    0.05 %
Retirement 2030 Portfolio
    0.05 %
Retirement 2025 Portfolio
    0.05 %
Retirement 2020 Portfolio
    0.05 %
Retirement 2015 Portfolio
    0.05 %
Retirement 2010 Portfolio
    0.05 %

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APPENDIX B
Class Level Contractual Expense Limitations
For each Fund listed in the table below, the Adviser contractually agrees to reduce its management fee or, if necessary, make payment to each of the following share classes of the Fund in an amount equal to the amount by which “Expenses” of the share class exceed the percentage of average annual net assets (on an annualized basis) attributable to the class as outlined in the table below.
“Expenses” means all fund level and class specific operating expenses, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) underlying fund expenses (“acquired fund fees”), (e) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business and (f) short dividend expense. 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.
                                                 
                                                Expiration Date of
Fund   Class A   Class B   Class C   Class I   Class R1   Class R2   Class R3   Class R4   Class R5   Class R6   Class NAV   Expense Limit
China Emerging Leaders Fund
  1.80%   N/A   N/A   1.44%   N/A   N/A   N/A   N/A   N/A   N/A   N/A   December 31, 2012
Currency Strategies Fund
  1.60%   N/A   N/A   1.24%   N/A   N/A   N/A   N/A   N/A   1.05%   N/A   November 30, 2012
Fundamental All Cap Core Fund
  1.30%   N/A   2.00%   0.84%   1.59%   N/A   1.49%   1.19%   0.89%   N/A   N/A   December 31, 2012
Fundamental Large Cap Core Fund
  1.30%   N/A   2.00%   0.84%   1.59%   N/A   1.49%   1.19%   0.89%   N/A   N/A   December 31, 2012
Fundamental Large Cap Value Fund
  1.30%   N/A   2.00%   0.84%   1.59%   N/A   1.49%   1.19%   0.89%   N/A   0.82% (expires on 11/30/12)   December 31, 2012 (except for Class NAV as noted)
Global Absolute Return Strategies Fund
  1.95%   N/A   2.65%   1.59%   N/A   2.00% (effective 3/1/12; expires on 3/1/13)   N/A   N/A   N/A   1.50%   N/A   December 31, 2012 (except for Class R2 as noted)
Global High Yield Fund
  1.30%   N/A   N/A   1.10%   N/A   N/A   N/A   N/A   N/A   N/A   N/A   November 30, 2012
Multi-Sector Bond Fund
  1.25%   N/A   N/A   1.05%   N/A   N/A   N/A   N/A   N/A   N/A   N/A   November 30, 2012
Technical Opportunities Fund
  1.95%   N/A   N/A   1.59%   N/A   N/A   N/A   N/A   N/A   1.45%   N/A   November 30, 2012
Technical Opportunities Fund II
  1.80%   N/A   N/A   1.44%   N/A   N/A   N/A   N/A   N/A   N/A   N/A   November 30, 2012

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                                                Expiration Date of
Fund   Class A   Class B   Class C   Class I   Class R1   Class R2   Class R3   Class R4   Class R5   Class R6   Class NAV   Expense Limit
Emerging Markets Fund
  1.75%   N/A   2.45%   1.29%   2.04%   N/A   1.94%   1.64%   1.34%   1.22%   N/A   December 31, 2012
Emerging Markets Debt Fund
  1.35%   N/A   N/A   0.98%   N/A   N/A   N/A   N/A   N/A   N/A   N/A   December 31, 2012
Floating Rate Income Fund
  1.20%   1.95%   1.95%   0.95%   N/A   N/A   N/A   N/A   N/A   0.81%   N/A   December 31, 2012
Global Agribusiness Fund
  1.45%   N/A   N/A   1.10%   N/A   N/A   N/A   N/A   N/A   N/A   1.00%   December 31, 2012
Global Infrastructure Fund
  1.45%   N/A   N/A   1.10%   N/A   N/A   N/A   N/A   N/A   N/A   1.00%   December 31, 2012
Natural Resources Fund
  1.60%   N/A   N/A   1.40%   N/A   N/A   N/A   N/A   N/A   1.30%   N/A   December 31, 2012
Strategic Income Opportunities Fund
  1.17%   N/A   1.87%   N/A   N/A   1.22% (effective 3/1/12; expires on 3/1/13)   N/A   N/A   N/A   0.83%   N/A   December 31, 2012 (except for Class R2 as noted)
U.S. Equity Fund
  1.35%   N/A   N/A   0.89%   N/A   N/A   N/A   N/A   N/A   N/A   N/A   December 31, 2012
Diversified Strategies Fund
  1.22%   N/A   N/A   .80%   N/A   N/A   N/A   N/A   N/A   N/A   N/A   November 30, 2012

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APPENDIX C
Fund Level Contractual Investment Management Fee Waivers
Global Fund
International Value Fund
Small Cap Opportunities Fund
Smaller Company Growth Fund
The Adviser contractually agrees to waive its management fee for each Fund in an amount equal to the amount by which the management fee retained by the Adviser after payment of the subadvisory fees for the Fund exceeds 0.45% as a percentage of average annual net assets (on an annualized basis) of the Fund. The current expense limitation agreement expires on December 31, 2012, 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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APPENDIX D
Lifecycle Portfolios’ Class Only Expense Limitation Agreement
Lifecycle Portfolios
— The Adviser contractually agrees to reduce its management fee or, if necessary, make payment to each of the following share classes of each of the Lifecycle Portfolios in an amount equal to the amount by which the “Expenses” of the share class exceed the percentage of average annual net assets (on an annualized basis) attributable to the class as set forth in the table below. “Expenses” means all expenses attributable to a class of shares, excluding fund level expenses such as (a) advisory fees, (b) underlying fund expenses (“acquired fund fees”), (c) taxes, (d) brokerage commissions, (e) interest expense, (f) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and (g) short dividend expense. This expense limitation agreement expires on December 31, 2012 (March 1, 2013 in the case of Class R2 shares of all Lifecycle Portfolios, and December 31, 2013 in the case of Class R4 shares of all Lifecycle Portfolios), unless renewed by mutual agreement of the Portfolio and the Adviser based upon a determination that this is appropriate under the circumstances at that time.
                                                         
Portfolio   Class A   Class R1   Class R2   Class R3   Class R4   Class R5   Class R6   Class I
Lifecycle 2050
    0.50 %     0.75 %   0.50% (effective 3/1/12)     0.65 %   0.25% (effective 6/1/12; 0.35% until 6/1/12)     0.05 %     0.00 %     0.10 %
Lifecycle 2045
    0.50 %     0.75 %   0.50% (effective 3/1/12)     0.65 %   0.25% (effective 6/1/12; 0.35% until 6/1/12)     0.05 %     0.00 %     0.10 %
Lifecycle 2040
    0.50 %     0.75 %   0.50% (effective 3/1/12)     0.65 %   0.25% (effective 6/1/12; 0.35% until 6/1/12)     0.05 %     0.00 %     0.10 %
Lifecycle 2035
    0.50 %     0.75 %   0.50% (effective 3/1/12)     0.65 %   0.25% (effective 6/1/12; 0.35% until 6/1/12)     0.05 %     0.00 %     0.10 %
Lifecycle 2030
    0.50 %     0.75 %   0.50% (effective 3/1/12)     0.65 %   0.25% (effective 6/1/12; 0.35% until 6/1/12)     0.05 %     0.00 %     0.10 %

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Portfolio   Class A   Class R1   Class R2   Class R3   Class R4   Class R5   Class R6   Class I
Lifecycle 2025
    0.50 %     0.75 %   0.50% (effective 3/1/12)     0.65 %   0.25% (effective 6/1/12; 0.35% until 6/1/12)     0.05 %     0.00 %     0.10 %
Lifecycle 2020
    0.50 %     0.75 %   0.50% (effective 3/1/12)     0.65 %   0.25% (effective 6/1/12; 0.35% until 6/1/12)     0.05 %     0.00 %     0.10 %
Lifecycle 2015
    0.50 %     0.75 %   0.50% (effective 3/1/12)     0.65 %   0.25% (effective 6/1/12; 0.35% until 6/1/12)     0.05 %     0.00 %     0.10 %
Lifecycle 2010
    0.50 %     0.75 %   0.50% (effective 3/1/12)     0.65 %   0.25% (effective 6/1/12; 0.35% until 6/1/12)     0.05 %     0.00 %     0.10 %

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APPENDIX E
Lifestyle Portfolios’ Class Only Expense Limitation Agreement
Lifestyle Portfolios
— The Adviser contractually agrees to reduce its management fee or, if necessary, make payment to each of the following share classes of each of the five Lifestyle Portfolios in an amount equal to the amount by which the “Expenses” of the share class exceed the percentage of average annual net assets (on an annualized basis) attributable to the class as follows:
                                                             
Class A   Class B   Class C   Class R1   Class R2   Class R3   Class R4   Class R5   Class R6
0.59%
    1.29 %     1.29 %     1.04 %   0.56% (effective 3/1/12)     0.94 %     0.64 %     0.34 %     0.05 %
“Expenses” means all expenses attributable to a class of shares, excluding fund level expenses such as (a) advisory fees, (b) underlying fund expenses (“acquired fund fees”), (c) taxes, (d) brokerage commissions, (e) interest expense, (f) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and (g) short dividend expense. The current expense limitation agreement expires on April 30, 2012 (April 30, 2013 in the case of Class R2 and Class R6 of all Lifestyle Portfolios, and April 30, 2013 in the case of Class B of Lifestyle Aggressive Portfolio), unless renewed by mutual agreement of the Portfolio and the Adviser based upon a determination that this is appropriate under the circumstances at that time.
[— After April 30, 2012, the Adviser contractually agrees to reduce its management fee or, if necessary, make payment to each of the following share classes of each of the five Lifestyle Portfolios in an amount equal to the amount by which the “Expenses” of the share class exceed the percentage of average annual net assets (on an annualized basis) attributable to the class as follows:
                                         
Class A   Class B   Class C   Class R1   Class R2   Class R3   Class R4   Class R5   Class R6
N/A
  1.29% (Lifestyle Aggressive Portfolio only)   N/A   N/A     0.56 %   N/A   N/A   N/A     0.05 %
“Expenses” means all expenses attributable to a class of shares, excluding fund level expenses such as (a) advisory fees, (b) underlying fund expenses (“acquired fund fees”), (c) taxes, (d) brokerage commissions, (e) interest expense, (f) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and (g) short dividend expense. The current expense limitation agreement expires on April 30, 2013, unless renewed by mutual agreement of the Portfolio and the Adviser based upon a determination that this is appropriate under the circumstances at that time.]

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APPENDIX F
Retirement Portfolios’ Class Only Expense Limitation Agreement
Retirement 2050 Portfolio
Retirement 2045 Portfolio
Retirement 2040 Portfolio
Retirement 2035 Portfolio
Retirement 2030 Portfolio
Retirement 2025 Portfolio
Retirement 2020 Portfolio
Retirement 2015 Portfolio
Retirement 2010 Portfolio
— The Adviser contractually agrees to reduce its management fee or, if necessary, make payment to each of the following share classes of the Retirement Portfolios in an amount equal to the amount by which the “Expenses” of the share class exceed the percentage of average annual net assets (on an annualized basis) attributable to the class as set forth in the table below. “Expenses” means all expenses attributable to a class of shares, excluding fund level expenses such as (a) advisory fees, (b) underlying fund expenses (“acquired fund fees”), (c) taxes, (d) brokerage commissions, (e) interest expense, (f) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and (g) short dividend expense. The current expense limitation agreement expires on December 31, 2013, unless renewed by mutual agreement of the Portfolio and the Adviser based upon a determination that this is appropriate under the circumstances at that time.
             
Class R1   Class R2   Class R4   Class R6
0.75% (effective 9/1/12)
  0.50% (effective 9/1/12)   0.25% (effective 5/1/12)   0.00% (effective 9/1/12; 0.05% until 9/1/12)

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APPENDIX G
Voluntary Advisor Waiver Agreement
T. Rowe Price Subadvised Funds
The Adviser has voluntarily agreed to reduce the management fee for each of the following funds subadvised by T. Rowe Price Associates, Inc. by the amount that the subadvisory fee is reduced for the fund by T. Rowe Price Associates, Inc. pursuant to the Amended and Restated Group Fee Waiver Agreement between John Hancock Investment Management Services, LLC and T. Rowe Price Associates, Inc. dated September 30, 2011.
Blue Chip Growth Fund
Capital Appreciation Value Fund
Equity-Income Fund
Health Sciences Fund
Mid Value Fund
Real Estate Equity Fund
Science & Technology Fund
Small Company Value Fund
Spectrum Income Fund

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APPENDIX H
Alternative Asset Allocation Expense Limitation Agreement
Alternative Asset Allocation Fund
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 “Other Expenses” of the Fund exceed 0.04% as a percentage of average annual net assets (on an annualized basis) of the Fund. “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) advisory fees, (f) 12b-1 fees, (g) transfer agency fees and service fees, (h) blue-sky fees, (i) printing and postage fees, (j) underlying fund expenses (“acquired fund fees”) and (k) short dividend expense. The current expense limitation agreement expires on March 1, 2013, 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 Adviser contractually agrees to reduce its management fee or, if necessary, make payment to each of the following share classes of the Fund in an amount equal to the amount by which the “Expenses” of the share class exceed the percentage of average annual net assets (on an annualized basis) attributable to the class as set forth in the table below. “Expenses” means all expenses attributable to a class of shares, excluding fund level expenses such as (a) advisory fees, (b) underlying fund expenses (“acquired fund fees”), (c) taxes, (d) brokerage commissions, (e) interest expense, (f) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business and (g) short dividend expense. This expense limitation agreement expires on December 31, 2012 (March 1, 2013 in the case of Class R2 shares), 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.
                             
Class A   Class C   Class I   Class R2   Class R6
0.66%
    1.36 %     0.30 %   0.67% (effective 3/1/12)     0.20 %
The Adviser contractually agrees to reduce its management fee by 0.10% as a percentage of average annual net assets (on an annualized basis) of the Fund. The current expense limitation agreement expires on March 1, 2013, 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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APPENDIX I
Voluntary Advisor Waiver Agreements
Lifestyle Portfolios
The Adviser voluntarily agrees to waive its advisory fee for each Lifestyle Portfolio (each a “Fund”) so that the aggregate advisory fee retained by the Adviser with respect to both the Fund and its underlying investments (after payment of subadvisory fees) does not exceed 0.50% of the Fund’s first $7.5 billion of average annual net assets and 0.49% of the Fund’s average annual net assets in excess of $7.5 billion. The Adviser may terminate this voluntary waiver at any time upon notice to the Trust.
Lifecycle Portfolios
The Adviser voluntarily agrees to waive its advisory fee for each Lifecycle Portfolio (each a “Fund”) so that the aggregate advisory fee retained by the Adviser with respect to both the Fund and its underlying investments (after payment of subadvisory fees) does not exceed 0.51% of the Fund’s first $7.5 billion of average annual net assets and 0.50% of the Fund’s average annual net assets in excess of $7.5 billion. The Adviser may terminate this voluntary waiver at any time upon notice to the Trust.
Retirement Portfolios
The Adviser voluntarily agrees to waive its advisory fee for each Retirement Portfolio (each a “Fund”) so that the aggregate advisory fee retained by the Adviser with respect to both the Fund and its underlying investments (after payment of subadvisory fees) does not exceed 0.51% of the Fund’s first $7.5 billion of average annual net assets and 0.50% of the Fund’s average annual net assets in excess of $7.5 billion. The Adviser may terminate this voluntary waiver at any time upon notice to the Trust.
Diversified Strategies Fund
The Adviser voluntarily agrees to waive its advisory fee for the Fund so that the aggregate advisory fee retained by the Adviser with respect to both the Fund and its underlying investments (after payment of subadvisory fees) does not exceed 0.70% of the Fund’s first $1.0 billion of average annual net assets and 0.675% of the Fund’s average annual net assets in excess of $1.0 billion. The Adviser may terminate this voluntary waiver at any time upon notice to the Fund.
Alternative Asset Allocation Fund
The Adviser voluntarily agrees to waive its advisory fee for the Fund so that the aggregate advisory fee retained by the Adviser with respect to both the Fund and its underlying investments (after payment of subadvisory fees) does not exceed 0.60% of the Fund’s average annual net assets. The Adviser may terminate this voluntary waiver at any time upon notice to the Fund.

12


 

APPENDIX J
Fund Level Voluntary Limit on Total Operating Expenses
For purposes of this Appendix:
“Expenses” means all the expenses of a Fund 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) underlying fund expenses (“acquired fund fees”); (vi) short dividend expense; (vii) Rule 12b-1 fees; (viii) transfer agency fees; 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 Trust.
“Expense Limit” means the percentage of a Fund’s average annual net assets (on an annualized basis) set forth below.
The Adviser agrees to waive advisory fees and, to the extent necessary, reimburse other expenses of the Fund, in an amount equal to the amount by which the Expenses of such Fund exceed the Expense Limit for such Fund set forth in the table below.
The Expense Limit for each of the Funds indicated below for the purposes of this Appendix shall be as follows:
                 
            Expiration Date of
Fund   Annual Expense Limit   Expense Limit*
Global Agribusiness Fund
    0.97 %     N/A  
Global Infrastructure Fund
    0.97 %     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.

13


 

Funds Listed in Attachment A
The Adviser voluntarily agrees to reduce its management fee for each 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 annual net assets (on an annualized basis) of the Fund listed in Attachment A. “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) 12b-1 fees, (g) transfer agency fees and service fees, (h) blue-sky fees, (i) printing and postage fees, (j) underlying fund expenses (“acquired fund fees”) and (k) short dividend expense. This voluntary expense reimbursement will continue in effect until terminated at any time by the Adviser on notice to the Trust.

14