BOSTON, March 30, 2016 /PRNewswire/ -- John Hancock Investments today added three new retirement portfolios to its suite of target-date offerings. Each new portfolio is designed for investors expecting to retire in or near the year 2060. The new portfolios aim to serve many of today's youngest defined contribution plan participants, as the millennial generation—those born from 1981 to 2004—continues to grow its presence in the workforce. According to the Investment Company Institute, 35 percent of all 401(k) plan assets belonging to twenty-somethings were invested in target-date funds.1
Two options with a glide path asset allocation strategy designed to help manage longevity risk
Designed to help manage longevity risk—the prospect of outliving one's assets—both new John Hancock Retirement Living Portfolios follow a dynamic glide path that decreases equity exposure to about 50 percent through the target date; equities gradually taper down over the subsequent 20 years of retirement until reaching roughly 25 percent:
- John Hancock Retirement Living through 2060 Portfolio's asset allocation strategy is implemented with a combination of active open-end mutual funds and other investments.
- John Hancock Retirement Living through II 2060 Portfolio's asset allocation strategy is implemented through a combination of index-tracking exchange-traded funds (ETFs) and other investments.
An additional more conservative option emphasizing downside risk management
John Hancock Retirement Choices at 2060 Portfolio is designed for investors who wish to limit downside risk in the years leading up to retirement; it follows a dynamic glide path that aims for equity exposure of eight percent at the target date, where it remains fixed thereafter. The portfolio's asset allocation strategy is implemented through a combination of ETFs and other investments.
The portfolios are managed by John Hancock Asset Management's co-heads of global asset allocation, Robert M. Boyda, Marcelle Daher, CFA, and Nathan W. Thooft, CFA.
"For millennials and their more seasoned colleagues alike, target-date portfolios are playing an increasingly important role as default options in retirement plans," said Andrew G. Arnott, president and CEO. "At John Hancock Investments, we are committed to providing investors of all ages with a full range of options as they plan for—and continue to invest throughout—their retirement years."
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 portfolios' prospectuses for additional risks.
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 Investments at 1-800-225-5291, or visit jhinvestments.com. Please read the prospectus carefully before investing or sending money.
About John Hancock Investments
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of America's strongest and most-recognized brands. As a manager of managers, John Hancock Investments searches the world to find proven portfolio teams with specialized expertise for every fund we offer, then we apply vigorous investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Our unique 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 C$935 billion (US$676 billion) as of December 31, 2015. 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, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.
1 2015 Investment Company Fact Book, as of year-end 2013.
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SOURCE John Hancock Investments