John Hancock Investments has announcedthat it is using a stress-testing tool to help assess the liquidityof securities held in its mutual fund portfolios.

The technology of the tool, LiquidityMetrics from MSCI, willallow the firm to stress test the liquidity of its funds, measurethe potential impact of various market scenarios and evaluatepotential transaction costs, liquidation time horizons, amountsavailable for liquidation, and other critical information.

In the wake of the financial crisis, the need for mutual fundsto hold sufficient cash on hand in case of high redemptions becamea priority.

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