Target-date funds from John Hancock Investments

When it comes to addressing the unprecedented challenges faced by today’s retirement savers, we believe a one-size-fits-all approach to your plan’s most important investment option just isn’t enough. Discover why our three series of target-date funds offer more ways for retirement savers to meet their goals.


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Target-date funds: embracing open architecture in retirement’s most important investment option.

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ranked #1 by top dc plan advisors
for open architecture1

  • John Hancock Multimanager Lifetime Portfolios
  • John Hancock Multi-Index Lifetime Portfolios
  • John Hancock Multi-Index Preservation Portfolios

Multiple glide paths

Among sponsors considering changes to their plans, more than 65% believe their existing target-date funds may have a glide path that is unsuitable for all participants.2 That’s why we offer two.

The veteran portfolio management team at John Hancock Asset Management explains why they developed two distinct glide paths.

Allocation to equity
Age
100%
80%
60%
40%
20%
0%
25
30
35
40
45
50
55
60
65
70
75
80
85
90
Common retirement age chart lines

Lifetime

  • Designed to address longevity risk
  • Equity allocation begins at 95%
  • Reduced to 50% at retirement date; stabilizes at 25% 20 years into retirement
  • Utilizes a choice of actively managed or passive underlying investments
  • Designed to support 4% in annualized withdrawals over a multidecade retirement horizon.3

Preservation

  • Designed to address retirement “readiness zone” risk
  • Equity allocation begins at 82%
  • Reduced to 8% at retirement date
  • Uses ETFs and a low-cost asset allocation strategy to minimize the impact of expenses on portfolio returns

Lifetime

  • Designed to address longevity risk
  • Equity allocation begins at 95%
  • Reduced to 50% at retirement date; stabilizes at 25% in retirement
  • Utilizes actively managed underlying investments
  • Designed to support 4% in annualized withdrawals over a multidecade retirement horizon.3
Allocation to equity
Age
100%
75%
50%
25%
0%
25
35
45
55
65
75
85
90
Preservation
Lifetime
Common retirement age chart lines

Preservation

  • Designed to address retirement “readiness zone” risk
  • Equity allocation begins at 82%
  • Reduced to 8% at retirement date
  • Uses ETFs and a low-cost asset allocation strategy to minimize the impact of expenses on portfolio returns
Allocation to equity
Age
100%
75%
50%
25%
0%
25
35
45
55
65
75
85
90
Preservation
Lifetime
Common retirement age chart lines
Source: John Hancock Asset Management, 2016.

Open architecture

More than 50% of all plans and nearly 70% of small plans still offer closed-architecture target-date funds run by their recordkeepers.4 Our target-date funds were rated #1 by top DC plan advisors for open architecture.1

The industry-leading asset allocation team at John Hancock Asset Management explains how open-architecture portfolio construction benefits shareholders.

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Oversight

Monitoring each portfolio team for the repeatability of its investment process and management of risk

Multiple asset classes

Both within and beyond traditional equity and fixed income

Multiple styles

Continual exposure to a variety of strategies, as different characteristics go in and out of favor

Multiple managers

A diversity of approaches from some of the world’s best managers

Representative example for illustrative purposes only.


Over 20 specialized teams

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Results geared for retirement

When it comes to retirement, we believe the most important performance benchmark is an investor’s long-term goal. That’s why we focus on pursuing strong risk-adjusted performance over the long term and on protecting against market risk when it matters most.

Strong risk-adjusted returns

morning star rating

of our target-date portfolios are rated 4 or 5 stars by Morningstar

Based on 3-, 5-, and 10-year Morningstar Risk-Adjusted Returns, accounting for variations in monthly performance.5

All funds may experience periods of negative performance. Please see the portfolio's prospectus or visit jhinvestments.com for current returns.


Morningstar percentile rankings

John Hancock Multimanager Lifetime Portfolios
John Hancock Multi-Index Lifetime Portfolios
U.S. target-date funds over
the past 10 years6
U.S. target-date funds over
the past 3 years7
Top 30%
Top 20%
100%
75%
50%
25%
10%

U.S. target date funds over the past 10 years6

John Hancock Multimanager Lifetime Portfolios

Top 30%

U.S. target date funds over the past 3 years8

John Hancock Multi-Index Lifetime Portfolios

Top 20%


Seeking to protect in down markets8

John Hancock Multi-Index 2020 Preservation Portfolio

As of 3/31/17
39%

Participation in up markets since inception

36%

Participation in down markets since inception


Expenses to fit your plan’s budget

Despite expenses coming down in recent years, the average net expense ratio for target-date funds is still 86 basis points. Our expenses are below average for both our actively and passively implemented target-date funds.9

Total expense ratios

U.S. target-date fund average
John Hancock Multimanager Lifetime Portfolio average10
John Hancock Multi-Index Lifetime Portfolio average10
John Hancock Multi-Index Preservation Portfolio average10
0.86%
0.57%
0.37%
0.36%

U.S. target-date fund average

0.86%

John Hancock Multimanager Lifetime Portfolio average10

0.57%

John Hancock Multi-Index Lifetime Portfolio average10

0.37%

John Hancock Multi-Index Preservation Portfolio average10

0.36%

0.00%
0.25%
0.50%
0.75%
1.00%

Put our approach to work for you

Retirement plan advisors and sponsors: Ask a John Hancock Investments retirement specialist for a detailed review of how John Hancock Multimanager Target-Date Portfolios can fit into your plan or practice.


find out more
Find out more

Target-date funds: embracing open architecture in retirement’s most important investment option.

Read our white paper

find out more
Find out more

Target-date funds: embracing open architecture in retirement’s most important investment option.

Read our white paper

All funds may experience periods of negative performance. Please see the portfolio’s prospectus or visit jhinvestments.com for current returns.

All logos are the property of their respective owners.

The portfolio’s performance depends on the advisor’s skill in determining asset class allocations, the mix of underlying funds, and the performance of those underlying funds. The portfolio is subject to the same risks as the underlying funds and exchange-traded funds in which it invests: Stocks and bonds can decline due to adverse issuer, market, regulatory, or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; the securities of small companies are subject to higher volatility than those of larger, more established companies; and high-yield bonds are subject to additional risks, such as increased risk of default. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value, if at all—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Please see the portfolio’s prospectus for additional risks.

  1. “Opportunities in Target Date Funds,” Ignites Retirement Research, March 2016. The #1 ranking is for John Hancock Multimanager Lifetime Portfolios and is based on a survey of 225 DC plan advisors.
  2. “2017 Defined Contribution Trends,” Callan Institute Survey, 2017.
  3. Based on analysis conducted by John Hancock Asset Management as of 9/30/16, which relies on simulations and expectations of future outcomes and is subject to numerous limitations and biases, including subjectivity. Actual results may differ significantly from those intended.
  4. “As plan sponsors realize a redesign is needed, target date funds get a second look,” SEI, July 2016.
  5. As of 3/31/17. Includes mutual fund rankings/ratings only. Out of 29 John Hancock multimanager target-date portfolios rated by Morningstar, 10 portfolios received a 5-star overall rating and 14 portfolios received a 4-star overall rating. Ratings are counted at the highest-rated share class. For each managed product, including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts, with at least a 3-year history, Morningstar calculates a Morningstar rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a fund’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. Exchange-traded funds and open-end mutual funds are considered a single population for comparative purposes. The top 10.0% of funds in each category, the next 22.5%, 35.0%, 22.5%, and bottom 10.0% receive 5, 4, 3, 2, or 1 star(s), respectively. The overall Morningstar rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar rating metrics. The rating formula most heavily weights the 3-year rating, using the following calculation: 100% 3-year rating for 36 to 59 months of total returns, 60% 5-year rating/40% 3-year rating for 60 to 119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. Star ratings do not reflect the effect of any applicable sales load. Results shown are for Class R6 shares.
  6. Morningstar, 2017. John Hancock Multimanager Lifetime Portfolios were in the top 30% for performance across all portfolios among 435 U.S. target-date funds as of 3/31/17.
  7. Morningstar, 2017. John Hancock Multi-Index Lifetime Portfolios were in the top 20% for performance across all portfolios among 1,502 U.S. target-date funds as of 3/31/17.
  8. Based on the period from inception to 3/31/17. Upside capture ratio measures a manager’s performance in up markets relative to the market itself. Downside capture ratio measures a manager’s performance in down markets relative to the market itself.
  9. Morningstar, 2017. Average total expense ratio of all open-end target-date funds that are tracked by Morningstar.
  10. For class R6 shares.