Navigating Dynamic Markets: A Deep Dive into John Hancock Marathon Asset-Based Lending Fund's Q2 2025 Performance

As we reflect on the second quarter of 2025, the John Hancock Marathon Asset-Based Lending Fund (JAMBAX) continued to demonstrate its strategic prowess and resilience within the ever-evolving private credit landscape. In a period characterized by persistent, albeit moderating, inflation and a cautious interest rate environment, JAMBAX's focus on directly originated asset-based loans proved to be a cornerstone of its consistent performance and value generation for investors.

The second quarter saw financial markets grappling with nuanced signals: robust employment figures on one hand, and ongoing concerns about global growth deceleration on the other.

This bifurcated economic narrative underscored the critical role of private credit, particularly asset-based lending, as traditional bank financing continued to navigate tighter regulatory frameworks and a more selective approach to corporate lending. JAMBAX, leveraging Marathon Asset Management's deep expertise, capitalized on these market dynamics, sourcing high-quality, collateral-backed loans to middle-market companies that are often underserved by conventional lenders.

From a performance standpoint, JAMBAX delivered solid results, driven primarily by its exposure to floating-rate debt instruments.

This structure proved advantageous as interest rates remained elevated, allowing the fund's income generation to keep pace with, and in some cases, benefit from, the higher rate environment. The fund’s credit selection methodology, which emphasizes thorough due diligence on borrowers’ collateral and operational health, was instrumental in mitigating potential credit risks.

This disciplined approach is paramount in an environment where economic uncertainties necessitate a sharp focus on asset quality and robust repayment capacity.

The portfolio's diversification across various industries and asset types — including inventory, accounts receivable, and equipment — further contributed to its stability.

This intentional breadth minimizes concentration risk, ensuring that no single industry downturn or idiosyncratic company issue significantly impacts overall fund performance. The managers actively monitor existing credits, engaging proactively with borrowers to ensure adherence to covenants and to address any emerging challenges swiftly, thereby protecting investor capital and maximizing recovery rates.

Looking ahead, the outlook for asset-based lending remains compelling.

Structural shifts in the financial ecosystem continue to drive demand for flexible, non-bank financing solutions, creating a robust origination pipeline for skilled private credit managers. While potential interest rate adjustments and broader economic fluctuations will always present challenges, JAMBAX's investment philosophy — centered on strong collateral, rigorous underwriting, and active portfolio management — positions it favorably to navigate these complexities.

The fund's leadership remains optimistic about the opportunities in the private credit market, particularly as businesses continue to seek agile capital partners to fuel their growth and manage working capital.

JAMBAX offers investors a differentiated exposure to the private debt space, aiming for attractive risk-adjusted returns through a diversified portfolio of secured loans. As we move beyond Q2 2025, the John Hancock Marathon Asset-Based Lending Fund is committed to maintaining its disciplined approach, seeking to deliver consistent income and capital preservation in an evolving investment landscape.