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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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

Explore our funds

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

Explore our funds

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’s unsuitable for all participants.² That’s why we offer two.

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 agechart 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
  • Uses 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%
  • Stabilizes at 8% at retirement
  • 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
  • Uses 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 agechart lines

Preservation

  • Designed to address retirement “readiness zone” risk
  • Equity allocation begins at 82%
  • Stabilizes at 8% at retirement
  • 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 agechart lines

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

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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

Over 20 specialized teams from our network

74 portfolio teams across 28 elite firms

  • Analytic Investors
  • Barrow, Hanley, Mewhinney & Strauss
  • Boston Common Asset Management
  • Boston Partners
  • Brandywine Global Investment Management
  • Breckinridge Capital Advisors
  • Dimensional Fund Advisors
  • Epoch Investment Partners
  • First Quadrant
  • GW&K Investment Management
  • Jennison Associates
  • John Hancock Asset Management
  • Pzena Investment Management
  • Redwood Investments
  • Standard Life Investments
  • Stone Harbor Investment Partners
  • Sustainable Growth Advisers
  • T. Rowe Price
  • Trillium Asset Management
  • Wellington Management
  • Western Asset Management Company

Strong risk-adjusted returns

morning star rating

of our lifetime portfolios are rated 4 or 5 stars by Morningstar

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

All funds may experience periods of negative performance.


Morningstar percentile rankings6

John Hancock Multimanager Lifetime Portfolios
John Hancock Multi-Index Lifetime Portfolios
Among 606 target-date funds for the 10 years ended 3/31/18
Among 1,648 target-date funds for the 3 years ended 3/31/18
Top 33%
Top 55%
100%
75%
50%
25%
10%

Among 606 target-date funds for the 10 years ended 3/31/18

John Hancock Multimanager Lifetime Portfolios

Top 33%

Among 1,628 target-date funds for the 3 years ended 3/31/18

John Hancock Multi-Index Lifetime Portfolios

Top 25%

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Seeking to protect in down markets with our preservation portfolios7

John Hancock Multi-Index 2020 Preservation Portfolio

As of 3/31/18
37%

Participation in up markets since inception

35%

Participation in down markets since inception

Explore our target-date funds

When it comes to addressing challenges faced by today’s retirement savers, we believe a one-size-fits-all approach to target-date funds is not enough. That’s why our three distinct target-date fund suites empower plan fiduciaries to choose the one that serves their participants best.


Expenses to fit your plan’s budget

Despite expenses coming down in recent years, the average net expense ratio for target-date funds is 81 basis points. Our expenses are below average for both our actively and passively implemented target-date funds.8

Total expense ratios

Morningstar target-date fund average
John Hancock Multimanager Lifetime Portfolio average9
John Hancock Multi-Index Lifetime Portfolio average9
John Hancock Multi-Index Preservation Portfolio average9
0.81%
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%


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

Read our white paper

Diversification does not guarantee a profit or eliminate the risk of a loss.

Portfolio 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 underlying funds’ performance may be lower than the performance of the asset class that they were selected to represent. The portfolio is subject to the same risks as the underlying funds and ETFs 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. 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. Hedging and other strategic transactions may increase volatility of a portfolio and could result in a significant loss. 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 or 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. Please see the portfolios' prospectuses for additional risks.

  1. “Opportunities in Target Date Funds,” Ignites Retirement Research, March 2016, which is the last time this survey was conducted. 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 3/31/18. Out of 20 John Hancock Multimanager Lifetime and Multi-Index Lifetime Portfolios rated by Morningstar, 2 portfolios received a 5-star overall rating and 16 portfolios received a 4-star overall rating. 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, as of 3/31/18. The placement of a particular fund in a ranking, with 1 being the highest percentile and 100 the lowest for a specific time period. Rankings do not reflect the effect of any applicable sales load.
  7. Based on the period from inception to 3/31/18. 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.
  8. Morningstar, 2018. This is the average total expense ratio of all open-end target-date funds that are tracked by Morningstar.
  9. For Class R6 shares.

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