Target-date funds from John Hancock Investment Management

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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Embracing drawdowns in target-date funds

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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

Multiple glide paths

More than 75% of plan sponsors evaluated the glide path suitability of existing target date for their participants among those who took target-date fund action with their plan.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

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

Our method delivers three kinds of diversification to shareholders of our asset allocation portfolios

  • Fund oversight—John Hancock Investment Management’s open-architecture approach oversees the complete selection and allocation process. To supplement our investment expertise, we scour the world for managers for different portfolio components and then adjust those components over time based on risk, expected returns, correlation, and manager performance.
  • Multiple asset classes—Our managers allocate to various asset classes but can add new ones based on expected returns and portfolio fit. Our analysis seeks attractive multi-year expected returns and opportunities from market dislocations.
  • Multiple managers—Our open-architecture approach identifies management teams specializing in distinct asset classes and styles, based on a proven record, experienced team, and repeatable process. We then monitor those teams to ensure they adhere to their mandates.
  • Distinct styles—We adjust style blends to modify risk over time while seeking to enhance returns, preserve capital, and manage longevity exposure.

 

Target-date-funds-pies

Over 20 specialized teams

Allianz
Axiom Investors
Bain Capital Credit
Boston Partners
Deutesche Asset and Wealth Management
Dimensional Fund Advisors
Epoch Investment Partners
Graham Capital Management
First Quadrant
Franklin Templeton
Invesco
Manulife Investment Management
Nordea Asset Management
Pictet Asset Management
PIMCO
Stone Harbor Investment Partners
T. Rowe Price
Wellington Management
Wells Capital Management

Morningstar percentile rankings³

Target-date Morningstar percentile-barchart



Seeking to protect in down markets with our preservation portfolios³

Target-date Seeking to protect in down markets-barchart

Explore our target-date funds⁴

When it comes to addressing challenges faced by today’s retirement savers, we believe a one-size-fits-all approach to target-date funds isn't 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 71 basis points. Our expenses are below average for both our actively and passively implemented target-date funds.

target-date-total-expense-ratio-barchart

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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.

 © 2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

 

  1. The #1 ranking is for John Hancock Multimanager Lifetime Portfolios and is based on a survey of 249 advisors conducted by Market Strategies International in February 2019.
  2.  “2020 Defined Contribution Trends,” Callan Institute Survey, 2020.
  3. Based on the period from inception to 12/31/20. 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.
  4. Ranked by Morningstar as of 12/31/20 out of 892 and 1,576 target-date funds, respectively. The Multimanager Lifetime Portfolios ranked 27 out of 123, 25 out of 129, 24 out of 125, 19 out of 129, 19 out of 130, 21 out of 107, 24 out of 70, and 25 out of 80 for the 10-year period. The Multi-Index Lifetime Portfolios ranked 53 out of 169, 48 out of 185, 40 out of 173, 33 out of 186, 31 out of 173, 27 out of 186, 20 out of 178, 28 out of 143, 30 out of 191, and 25 out of 92 for the 5-year period. Rankings are based on total return and do not account for sales charges. The fund's absolute peer ranking may not be available for all time periods. Morningstar does not calculate an absolute peer ranking when a fund's performance has been linked to a preexisting share class. Past performance does not guarantee future results.
  5. Morningstar, 2020. This is the average total expense ratio of all open-end target-date funds that are tracked by Morningstar.

MF1521176