John Hancock's Alternative Asset Allocation Fund (JAAAX) Reaches Three-Year Mark; Awarded Five Stars on Load-Waived Basis by Morningstar®

BOSTON, Jan. 24, 2012 /PRNewswire/ -- John Hancock Funds said today that its John Hancock Alternative Asset Allocation Fund (JAAAX) reached its three-year anniversary on December 31, 2011, and has been awarded five stars by Morningstar® on a load-waived basis.  Moreover, the John Hancock Alternative Asset Allocation Fund ranked as the #1 fund in Morningstar's® Multi-alternative category for the three years ending December 31, 2011.

The John Hancock Alternative Asset Allocation Fund is a fund-of-funds product that invests in alternative asset classes including, but not limited to, currencies, global real estate, commodities, natural resources, and emerging market debt. Additionally, the Fund invests in absolute return funds as well as funds that utilize highly flexible investment strategies. The John Hancock Alternative Asset Allocation Fund is a multi-managed fund that includes funds from leading asset management firms such as Pacific Investment Management Company (PIMCO), Wellington Management Company LLP, Dimensional Fund Advisors, Stone Harbor, Deutsche Asset Management, First Quadrant, and John Hancock Asset Management.

First offered to investors through their financial advisers in January of 2011, the John Hancock Alternative Asset Allocation Fund was launched into the firm's fund development program in 2008 after John Hancock saw a growing need among advisers for a vehicle that offered a comprehensive alternative asset allocation choice.

"With more investors looking for ways to decrease volatility in their portfolios, the John Hancock Alternative Asset Allocation Fund offers a 'one-stop' solution delivering exposure to various alternative asset classes and alternative strategies that act as diversifiers, and may help to improve the risk-return profile of a traditional investment portfolio," said Keith F. Hartstein, President & CEO, John Hancock Funds. 

"We have been investing in alternatives within our John Hancock Lifestyle portfolios since 1997 due to their diversification benefits and the low correlation to traditional asset classes.  Offering a packaged solution that investors could add to their existing portfolios was a natural extension of our $70 billion-plus asset allocation franchise," said Bob Boyda, Co-Head of Global Asset Allocation and Senior Portfolio Manager, John Hancock Asset Management, sub-adviser to the Fund.

"Successfully investing in alternatives is challenging and we approach new product development from a best-of-breed perspective.  That is how our forward-thinking team realized several years ago that advisers and their clients needed a one-stop fund that could meet their alternative investing needs by utilizing specialty asset managers who have demonstrated success in their distinct type of alternatives," said Andrew Arnott, Executive Vice President of John Hancock Investment Management Services (IMS), the group responsible for overseeing the more than $180 billion in assets across John Hancock and Manulife Financial investment platforms in the U.S., Canada and Asia.  

"The John Hancock Alternative Asset Allocation Fund highlights the unique strengths John Hancock has by leveraging the asset allocation capabilities of the Global Asset Allocation team and the extensive research and manager due diligence of the IMS team.  The Global Asset Allocation team establishes the right alternative asset classes and the IMS team finds the right managers," Mr. Hartstein said. "By bringing all these resources together, the John Hancock Alternative Asset Allocation Fund helps advisers overcome the obstacles to investing in alternatives, namely, choosing the pieces of the portfolio, tracking performance, and providing transparency regarding its components. At John Hancock, we also vet the managers and provide the risk oversight, so advisers don't have to."  

Adviser Survey on Use of Alternatives

A December 2011 John Hancock Funds survey of financial advisers illuminated the concerns advisers have about incorporating alternatives into client portfolios. Seventy-five percent of respondents report they are not as knowledgeable as they would like to be about alternative investing. The biggest challenge, advisers say, is allocating among alternatives and knowing which types to use.

Asset classes are still the most common way to employ alternatives; the most commonly used asset classes are Natural Resources (57 percent of advisers), and US REITs (69 percent), but a majority of advisers report also using Energy, Emerging Market Debt, Commodities and Gold.  About 37 percent of advisers use a multi-strategy alternative; one-third use Absolute Return funds, and only 21 percent use currencies.

Most respondents (54 percent) expect to increase their use of alternatives in client portfolios over the next 12 months, while 40 percent say their level of use will remain the same.  The majority report they use alternatives because of their low correlation to stocks and bonds. Although 89 percent said they feel very or somewhat comfortable discussing alternatives with their clients, more than half (56 percent) said that clients do not fully understand the role alternatives play in investment portfolios.

The Fund was rated 5 stars overall by Morningstar® for the 3-year period, out of 105 funds in Morningstar's Multi-Alternative category; the Fund was rated 5 stars on a load-waived basis for the 3-year period. Overall rating is based on 3-year Morningstar® Risk-Adjusted Returns and accounts for variation in a fund's monthly performance. The Fund was rated out of 105 funds for the 3-year period. The overall rating includes effects of sales charges, loads and redemption fees, while the load-waived rating does not. Load-waived ratings for Class A shares should only be considered by investors who are not subject to a front-end sales charge. Contact your financial professional to determine whether you are eligible to purchase the Class A share without paying the front load. Other share classes may be rated differently.

Morningstar rankings are based on total return and do not account for sales charges.  As of 12/31/11, the Fund was ranked 1 out of 105 and 78 out of 175 Multi–alternative funds for 3 and 1 year performance, respectively. Past performance is no guarantee of future results. 

About John Hancock Funds

The Boston-based mutual fund business unit of John Hancock Financial, John Hancock Funds manages more than $62.3 billion in open-end funds, closed-end funds, private accounts, retirement plans and related party assets for individual and institutional investors as at September 30, 2011.   

About John Hancock Financial and Manulife Financial Corporation

John Hancock Financial is a unit of Manulife Financial Corporation, a leading Canada-based financial services group serving millions of customers in 21 countries and territories worldwide. In 2012, John Hancock celebrates 150 years of serving clients across the United States, while Manulife celebrates its 125^th anniversary. Operating as Manulife Financial in Canada and in most of Asia, and primarily as John Hancock in the United States, Manulife Financial Corporation offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were C$492 billion (US$473 billion) as at September 30, 2011. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet 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 a broad range of financial products and services, including life insurance, annuities, fixed products, mutual funds, 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.

 

SOURCE John Hancock Funds