John Hancock Investment Management debuts new names for target-date fund suites
John Hancock Investment Management debuts new names for target-date fund suites, highlighting open architecture and lower costs for retirement savers.
Three series renamed Multimanager Lifetime Portfolios, Multi-Index Lifetime Portfolios, and Multi-Index Preservation Portfolios.
BOSTON, February 1, 2017—John Hancock Investment Management today completed a repositioning of its target-date portfolios for the defined contribution (DC) retirement plan marketplace. The portfolios now have new names and lower fees, following multiple rounds of expense reductions since 2014. With three distinct target-date series offering two glide paths, more than 20 elite asset managers, and a choice of active or passive underlying strategies, the new names more closely align each series with its investment approach and objective.
“These funds have strong performance, a competitive fee structure, and a multimanager approach that mirrors everything we do at John Hancock Investment Management,” said Andrew G. Arnott, President & CEO. “In fact, John Hancock Multimanager Lifetime Portfolios were ranked #1 by top DC plan advisors for open architecture.”*
- John Hancock Multimanager Lifetime Portfolios, formerly known as John Hancock Retirement Living Portfolios, are designed to help manage longevity risk—the prospect of outliving one’s assets—by following a dynamic glide path that begins with 95 percent equity exposure, which gradually decreases to 50 percent at the target retirement date, and then continues tapering down over the initial 20 years of retirement until stabilizing at 25 percent. The portfolio management team at John Hancock Asset Management implements the asset allocation strategy with a combination of active open-end mutual funds and other investments, tapping nearly 20 specialized teams. Each portfolio posted top-quartile performance for the 10 years ending 12/31/16.**
- John Hancock Multi-Index Lifetime Portfolios, formerly known as John Hancock Retirement Living II Portfolios, are also designed to help manage longevity risk and follow the same lifetime glide path. John Hancock Asset Management implements the asset allocation strategy with a combination of low-cost index-tracking exchange-traded funds (ETFs) and other investments to minimize the impact of expenses on portfolio returns. Each portfolio posted top-decile performance for the 3 years ending 12/31/16.**
- John Hancock Multi-Index Preservation Portfolios, formerly known as John Hancock Retirement Choices Portfolios, are designed for an investor who wishes to limit retirement “readiness zone” risk, or downside risk in the years immediately leading up to retirement. The portfolios follow a more conservative glide path that begins with 82 percent equity exposure, which decreases to and stabilizes at eight percent upon reaching the target retirement date. John Hancock Asset Management implements the asset allocation strategy with a combination of index-tracking ETFs and other investments to minimize the impact of expenses on portfolio returns.
Asset allocation portfolios at John Hancock Investment Management total over $53 billion.*** “Our target-risk portfolios have long been a source of business strength and client satisfaction,” said Todd J. Cassler, President of Institutional Distribution. “Today, our target-date series of funds, managed by the same industry-leading asset allocation team at John Hancock Asset Management, represent one of the biggest opportunities we have to extend the reach of our multimanager model in the DC investment only (DCIO) channel.”
Beginning today, the new names will be supported by a full complement of advertising and multimedia resources—available at jhinvestments.com/target-date-funds—for DC plan sponsors, advisors, consultants, and participants.
About John Hancock Investment Management
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of the strongest and most-recognized financial brands. We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Our approach to asset management has led to a diverse set of investments deeply rooted in investor needs, along with strong risk-adjusted returns across asset classes.
About John Hancock Financial and Manulife
John Hancock Financial is a division of Manulife, a leading Canada-based financial services group with principal operations in Asia, Canada, and the United States. Operating as Manulife in Canada and Asia, and primarily as John Hancock in the United States, our group of companies offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents, and distribution partners. Assets under management and administration by Manulife and its subsidiaries were CAD$966 billion (US$862 billion) as of September 30, 2016. Manulife Financial Corporation trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK. Manulife can be found at manulife.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.
This material is not intended to be, nor shall it be interpreted or construed as, a recommendation or providing advice, impartial or otherwise. John Hancock Investment Management and its representatives and affiliates may receive compensation derived from the sale of and/or from any investment made in its products and services.
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. Each portfolio’s name refers to the approximate retirement year of the investors for whom the portfolio’s asset allocation strategy is designed. The portfolios with dates further off initially allocate more aggressively to stock funds. As a portfolio approaches and passes its target date, the allocation will gradually migrate to more conservative, fixed-income funds. The principal value of each portfolio is not guaranteed, and you could lose money at any time, including at, or after, the target date. 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. Hedging and other strategic transactions may increase volatility and result in losses if not successful. Please see the portfolio’s prospectus for additional risks. The underlying funds’ performance may be lower than the performance of the asset class which they were selected to represent. Owning an ETF generally reflects the risks of owning the underlying securities it is designed to track, which may cause lack of liquidity, more volatility and increased management fees. Each portfolio is subject to the same risks as the underlying funds in which it invests, which include the following: 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-capitalization companies are subject to higher volatility than larger, more established companies; and high-yield bonds are subject to additional risks such as increased risk of default. Hedging, derivatives and other strategic transactions may increase a fund’s volatility and could produce disproportionate losses, potentially more than the fund’s principal investment. Liquidity, the extent to which a security may be sold or a derivative position closed without negatively impacting its market value, if at all, may be impaired by reduced market activity or participation, legal restrictions, or other economic and market impediments. Other than Multi-Index Income Preservation Portfolio, each portfolio’s name refers to the approximate retirement year of the investors for whom the portfolio’s asset allocation strategy is designed. The portfolios with dates farther off initially allocate more aggressively to stock funds. As a portfolio approaches its target date, the allocation will gradually migrate to more conservative fixed-income funds. The principal value of each portfolio. Including Multi-Index Income Preservation Portfolio, is not guaranteed and you could lose money at any time, including at, or after, the target date. Unlike other John Hancock Multi-Index Preservation Portfolios, Multi-Index Income Preservation Portfolio is not designed to decrease its equity holdings over time. This portfolio typically will have greater exposure to risks associated with fixed-income securities than will other John Hancock Multi-Index Income Preservation Portfolios. The portfolio is designed for an investor in or near retirement, and it is anticipated that investors will make gradual withdrawals from the portfolio.
A fund's investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 1-800-225-5291, or visit jhinvestments.com. Please read the prospectus carefully before investing or sending money.
* “Opportunities in Target Date Funds,” Ignites Retirement Research, March 2016. The #1 ranking is based on a survey of 225 DC plan advisors.
** Morningstar, 2017.
*** John Hancock Investment Management as of 12/31/16.