John Hancock lifestyle Portfolios
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
John Hancock Lifestyle Portfolios Not FDIC insured. May lose value. no bank guarantee. not insured by any government agency.
Sophisticated choices, personalized results Lifestyle Portfolios take the emotion out of investing because experienced investment professionals manage your asset allocation, the selection of investments and the selection of individual managers. Additionally, the Portfolios are monitored and rebalanced on an ongoing basis to maintain their target allocations.
1
How would you
describe your past
investing experiences?
If you answered “frustrating,” “disappointing”
or “confusing,” then you’re certainly not alone.
Many investors today are dissatisfied with their
results because the investment they purchased
has not met expectations or because it simply
did not help them accomplish their goals.
Letting emotions get in the way of your investing discipline
Perhaps the most common mistake investors make is to let emotions drive their investment decisions. It’s easy
to get caught up in the euphoria when everything is going up. But buying at the top of the market when stocks
are at their most expensive, or selling after prices have already fallen, creates a frustrating investment experience.
Unfortunately, a ride on the emotional rollercoaster of investing often ends with a failure to reach your financial goals.
The emotional rollercoaster of investing
Positive
EUPHORIC
“I should quit my job and do this full-time!
look at the money I‘m making!”
NERVOUS Best opportunity
“What happened? to make money
MAR k ET PER F O R MAnC E
CONFIDENT What is going on?”
“I‘ve already
made money.
this is great.”
DESPERATE
“there‘s no point in
selling now; I‘ve
lost too much.”
HOPEFUL
Riskiest time “things seem
like they‘re
turning around.”
DEFEATED
“there go my dreams
negative of an early retirement.”
This chart is an example and does not represent the performance of any actual investment. This is not meant as investment advice. Consult your financial professional about
how this example applies to your situation.
2
Overcoming the emotion of investing
So how do you keep emotions in check and avoid making these common investing mistakes?
First, it makes sense to get help from a financial professional — someone who can help you
develop strategies to meet your specific needs. In addition, research shows that strategies
built upon the principles of asset allocation and diversification can help you reduce risk and
potentially earn more consistent performance over time.
Professional help
An important part of long-term investment success is to define and stay focused on your goals.
That’s why working with a financial professional can make a world of difference. Your financial
professional can help you identify your goals and develop strategies for reaching them. In
addition, he or she may review your strategies periodically and recommend changes or the
appropriate course of action to make it more likely that you will be successful.
Asset allocation and diversification
When you divide your money among a variety of asset classes — stocks, bonds and cash —
using a strategy called asset allocation, you can smooth the ups and downs of the financial
markets. You may also diversify, or divide, your investments within each of the major asset
classes to take advantage of different investment styles, like growth and value, for example.
The idea is to own a wide enough selection of securities so that you can benefit when one
asset class performs well and limit the downside when another asset class does poorly. In
fact, experts agree that how you divide your assets has a major influence on your long-term
investing success. However, asset allocation and diversification do not ensure a profit or
protect against loss.
3
A portfolio that is diversified across asset classes and styles may make for a smoother ride on the
emotional rollercoaster of investing and help you reach your long-term financial goals.
Annual returns of asset classes and a diversified portfolio (2000–2009)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Small/Mid Small/Mid Small/Mid Small/Mid Large Cap Small/Mid
Bond International International Bond
Value Value Growth Value Growth Cap Growth
BEST
10.25% 13.54% 26.34% 5.24%
20.79% 9.74% 46.31% 21.58% 11.81% 41.66%
Small/Mid Small/Mid Large Cap Large Cap
Bond Bond Cash International International Cash
Value Growth Value Growth
11.63% 8.44% 1.61% 20.25% 11.17% 1.40%
44.93% 8.17% 22.25% 37.21%
Large Cap Small/Mid Large Cap Small/Mid Small/Mid Small/Mid Diversified
Cash International International
Value Value Value Value Value Growth Portfolio
3.48% 38.59% 31.78%
7.01% –9.87% 16.49% 7.74% 20.18% 9.69% –31.15%
Large Cap Diversified Diversified Small/Mid Diversified Diversified Small/Mid Small/Mid
Cash Bond
Value Portfolio Portfolio Growth Portfolio Portfolio Value Cap Value
5.94% 6.97%
–5.59% –14.68% 32.29% 14.59% 7.37% 15.74% –31.99% 27.68%
Diversified Diversified Large Cap Large Cap Diversified Large Cap Small/Mid Diversified Large Cap Diversified
Portfolio Portfolio Value Value Portfolio Value Growth Portfolio Value Portfolio
–2.21% –6.68% –15.52% 30.03% 13.93% 7.05% 12.26% 5.37% –36.85% 27.33%
Small/Mid Large Cap Large Cap Large Cap Large Cap Large Cap Large Cap
International International Cash
Growth Growth Growth Growth Growth Growth Value
–14.17% –15.94% 4.40%
–10.83% 29.75% 6.30% 5.26% 9.07% –38.44% 19.69%
Small/Mid Large Cap Large Cap Large Cap Small/Mid
Bond Bond Cash Cash Bond
Growth Growth Growth Value Growth
4.10% 4.34% 3.07% 4.67% 5.93%
–16.09% –20.42% –27.88% –0.17% –41.50%
WORST
Large Cap Small/Mid Small/Mid
International Cash Cash Bond Bond International Cash
Growth Growth Value
–21.44% 1.03% 1.38% 2.43% 4.33% –43.38% 0.15%
–22.42% –29.09% –7.27%
Source: Lipper, Inc. Annual returns are based on calendar years. Indexes are unmanaged and do not take transaction costs or fees into consideration. It is not possible to invest
directly in an index. Performance figures assume reinvestment of dividends and capital gains. This chart is for illustrative purposes only and does not represent the performance of any
John Hancock fund. Diversification does not guarantee against a loss. Past performance is no guarantee of future results. Share price and yield will vary and you may
have a gain or a loss when you sell your shares.
Large growth stocks are represented by the Russell 1000 Growth Index, a market capitalization-weighted index of securities in the Russell 1000 Index with higher price-to-book
ratios and higher forecasted growth values. Large value stocks are represented by the Russell 1000 Value Index, a market capitalization-weighted index of securities in the Russell
1000 Index with lower price-to-book ratios and lower forecasted growth values. Small/Mid growth stocks are represented by the Russell 2500 Growth Index, which measures the
performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. Small/Mid value stocks are represented by the Russell 2500
Value Index, which measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. International stocks are
measured by the MSCI EAFE Index, a market value-weighted, arithmetic average of the performance of more than 900 securities listed in several developed world markets, excluding
the United States. Bonds are measured by the Barclays U.S. Aggregate Bond Index, which includes U.S. government, corporate and mortgage-backed securities with maturities of
up to 30 years. Cash represents the performance of the 3-month T-bill, published by the Federal Reserve. Diversified is represented by the average return of the six indexes above,
excluding cash. It does not represent any specific index. You cannot invest directly in an index.
Small company stocks are more volatile than stocks of larger, more established companies. Foreign investments involve greater risks, including political and economic risks and the
risk of currency fluctuations, all of which are magnified in emerging markets. Bonds, if held to maturity, provide a fixed rate of return and a fixed principal value. Bonds will fluctuate
and, when redeemed, may be worth more or less than their original cost.
4
A sophisticated process made easy —
the John Hancock Lifestyle Portfolios
With thousands of mutual funds available in the U.S., many investors simply don’t know where
to begin when it comes to building a diversified portfolio. John Hancock Funds offers a group of
portfolios that make it easy for you. Our Lifestyle Portfolios take the emotion out of investing
because experienced investment professionals manage your asset allocation, the selection of
investments and the selection of individual managers. These five Portfolios invest in other mutual
funds and offer varying levels of risk and return potential.
Portfolios
Target
Conservative Moderate Balanced Growth Aggressive
Allocations
Stocks 20% 40% 60% 80% 100%
Bonds 80% 60% 40% 20% 0%
With the Lifestyle Portfolios, you gain access to a sophisticated asset allocation and diversification process managed
by experienced professionals. John Hancock Investment Management Services (JHIMS) selects the underlying funds
to be included in the Lifestyle Portfolios and then calls on the expertise of seasoned asset allocation professionals
from MFC Global Investment Management (U.S.A.) Limited and Deutsche Asset Management to help determine the
optimal mix of asset classes and underlying funds to reach the stated goals of each Lifestyle Portfolio.
Experienced professionals make the difference
■■ John Hancock has been managing lifestyle assets since 1995.1
■■ We are the third largest provider of lifestyle portfolios in the U.S.2
■■ s of December 31, 2009, John Hancock Investment Management Services oversees over
A
100 asset manager relationships, approximately $60 billion in lifestyle assets and $185 billion
in total assets.
1 The Retail Mutual Funds Lifestyle Portfolios were newly organized in October 2005.
2 Source: Strategic Insight, John Hancock, as of 12/31/09. John Hancock figures include assets invested in Annuity, U.S. Pension Retail, M Group Assets and Retail Mutual Funds.
How the Lifestyle Portfolios are built —
our four-part process
Asset class and
1
manager selection John Hancock Investment
Management Services
Asset class
2
MFC Global Investment
optimization Management (U.S.A.)
Limited
Double
Optimization
3
Manager
Deutsche Asset
optimization Management
Ongoing
review
4 Final Portfolio
6
1 Asset class and manager selection
Asset class selection Manager selection
John Hancock Investment Management Services Once the asset classes are determined, it is
(JHIMS) selects the asset classes and team of important to call upon knowledgeable professionals
managers for the Lifestyle Portfolios. We’ve to manage each asset class. JHIMS employs a
moved well beyond the traditional asset classes proprietary selection process to assemble a roster of
of U.S. and non-U.S. equity and fixed income carefully chosen asset managers for the underlying
into alternative asset classes like natural resource funds.
equities, international small-cap stocks, TIPS and
real estate securities.
Our selection process in action
We filter the fund universe in search of style-
consistent funds from well-respected managers to Universe of Portfolios
include in our multi-managed Portfolios. The financial landscape is continually
reviewed to identify consistently
performing mutual funds with
leading asset managers.7
Identify Evaluate Select and Monitor
We screen asset manager databases We perform rigorous quantitative analysis Our team of professionals reviews all the
representing more than 16,000 funds. on the underlying funds’ investment styles, findings and makes recommendations
We consider factors such as asset class, characteristics and performance, as well as on both the managers and funds to
track record and adherence to a risk-adjusted returns against their peer include in our investment platform.
disciplined investment approach. To groups and market indexes. But numbers
We continuously scrutinize each of
further narrow our selection, we focus don’t tell the whole story. We perform
our managers and underlying funds
on established firms with sizable assets extensive qualitative analysis as well,
to help ensure consistent ongoing
under management, experienced conducting in-depth, face-to-face manager
performance and adherence to their
and talented managers, advanced interviews, focusing on key elements such
defined style of investing.
technology and broad resources. as performance, investment process, depth
of resources and organizational stability.8
1 Asset class and manager selection (continued)
The result
Our rigorous selection process has produced an elite list of well-known asset
managers utilized in our Lifestyle Portfolios.
Manager selection of the Portfolios is provided by John Hancock Investment Management Services. Underlying investment managers depend on the investment lineup
chosen for the Portfolios and are subject to change.
Templeton® is a registered trademark of the Franklin Templeton Group. Deutsche Asset Management is the marketing name in the U.S. for the asset management
activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management Inc., Deutsche Asset Management Investment Services, Ltd.,
Deutsche Bank Securities Trust Company Americas, Scudder Trust Company and RREEF. BlackRock is a service mark of BlackRock, Inc.9
2 Asset class optimization
■■ orking with JHIMS, MFC Global Investment Management (U.S.A.) Limited
W
(MFC Global (U.S.A.)) helps determine the asset class mix to be implemented.
Double ■■ Thousands of simulations help to create well-diversified asset mixes
that vary by potential risk and return characteristics.
Optimization
■■ Resulting allocations have the potential to deliver robust performance
Together, the asset in a wide range of environments.
class optimization and
3 Manager optimization
manager optimization
stages represent John
Hancock’s proprietary
double optimization ■■ Working with JHIMS, Deutsche Asset Management (DeAM) helps determine
process. This is how the appropriate mix of managers to fit each Portfolio’s asset allocation.
we determine the best ■■ DeAM analyzes information such as historical returns, risk measures,
asset allocation mix for correlations and probabilities of future performance. The goal is to
build Lifestyle Portfolios that maximize the possibility of outperforming
our Lifestyle Portfolios.
the asset class allocations while minimizing downside risk.
■■ JHIMS reviews the work done by Deutsche Asset Management and works with
them to make adjustments as needed.
4 Ongoing review
■■ J HIMS continually monitors the economic environment and investment
markets to determine if any changes are needed.
■■ etailed performance analysis is conducted each quarter to evaluate each
D
Lifestyle Portfolio’s asset class and manager mixes.
Always working for you — maintaining the asset allocations
■■ The Lifestyle Portfolios are monitored daily and incoming cash flows are directed to those underlying
funds that most significantly deviate from their target allocations. This process is utilized to help
maintain the target allocations.
■■ The Portfolios may be rebalanced quarterly to bring allocations completely in line with targets.
■■ Changes may be made periodically to the percent of assets invested in any specific
underlying fund if it would better enable the Portfolios to pursue their investment goals.10
Aggressive
You seek maximum potential for growth
over the long run and are comfortable with
considerable potential risk in the short run.
Your lifestyle, Growth
your goals, Seeking growth of your money is your
main concern, but you prefer to limit your
potential risk.
your choice Balanced
Growth and security are both important
to you, and you want to pursue them in
equal measure.
Each of the five Lifestyle Portfolios offers an
efficient mix of risk and return that is designed
Moderate
to meet your particular objectives. To help you You feel a strong need to protect your
visualize the differences among the Lifestyle assets while achieving a modest level
of growth.
Portfolios, we’ve plotted them on the “Efficient
Frontier” — a map that indicates the degree of
Conservative
risk and return in an investment portfolio.
Security is your greatest concern.
You would not feel comfortable if your
portfolio returns fluctuated greatly.11
Select from five John Hancock Lifestyle Portfolios that give you access
to a broad range of asset classes and over 30 leading managers
John Hancock Lifestyle Portfolios
Aggressive Growth Growth Growth & income income
Higher
Aggressive
100% stocks
sectio
sectio
sectio
P ote n tial retur n
sectio
Growth sectio
80% stocks
20% bonds section_1
section_2
section_3
section_4
Balanced section_5
60% stocks
40% bonds section_1
section_2
section_3
section_4
Moderate section_5
40% stocks
60% bonds section_1
section_2
Lower
section_3
section_4
Conservative section_5
20% stocks
80% bonds
ris k
This chart is an example and does not represent the performance of any actual investment. This is not meant as investment advice.
Consult your financial professional about how this example applies to your situation.12
End your ride on the
emotional rollercoaster
Begin by working with your financial
professional to evaluate your financial
situation and goals. Then find out what
kind of investor you are by completing our
Investor Profile or one provided to you by
your financial professional. Your answers to
the profile will help you and your financial
professional select the appropriate John
Hancock Lifestyle Portfolio for your personal
needs and risk tolerance.
Asset allocation by a “fund of funds” does not ensure a profit or protection against a loss. Please note that asset
allocation may not be appropriate for all investors, particularly those interested in the underlying funds on
their own.
Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency
fluctuations and changes in political and economic conditions. The securities of small-capitalization companies are
subject to higher volatility than larger, more established companies. High-yield bonds are subject to additional
risks, such as the increased risk of default. Before making an investment in a Lifestyle Portfolio, you should
consider all the risks associated with it. Please see the prospectus for further information on these and other
risk conditions.
A Lifestyle Portfolio’s investment objectives, risks, charges and expenses should be considered carefully
before investing. The prospectus contains this and other important information about the Portfolios. To
obtain a prospectus, call your financial professional, call John Hancock Funds at 1-800-225-5291 or visit our
Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.John Hancock Lifestyle Portfolios Ticker Symbols Share Class Conservative Moderate Balanced Growth Aggressive Class A JALRX JALMX JALBX JaLgx jalax Class B JBLCX JBLMX JBLBX Jblgx jblax Class C JCLCX JCLMX JCLBX jclgx jclax Class R1 JPLCX JPLMX JPLBX JPLGX JPLAX Class R3 JRLCX JRLMX JRLBX JRLGX JRLAX Class R4 JSLCX JSLMX JSLBX JSLGX JSLAX Class R5 JTLRX JTLMX JTSBX JTLGX JTLAX Share classes R1, R3, R4 and R5 are available to retirement plans.
Why John Hancock Funds?
For more than three decades, A name you know and trust
John Hancock Funds has been When you invest with John Hancock Funds, you are investing with one of the
most recognized and respected names in the financial services industry. Our
helping individual, corporate
parent company has been helping individuals and institutions increase and
and institutional clients reach
protect wealth since 1862.
their most important financial
goals. With so many fund Solutions across the investing spectrum
We offer equity, income, international, sector and asset-allocation investment
companies to choose from,
solutions managed by leading institutional money managers. We take a disciplined,
why should you invest with us?
team approach to portfolio management and research, leveraging the expertise
of seasoned investment professionals.
Committed to you
Our shareholders come first. We work hard to provide you with the products
you may need to build a solid financial foundation. We believe in the value of
advice and partner with financial professionals in a commitment to help you
reach your long-term investing goals.
John Hancock Funds won many awards in 2009, including “Best Overall Communications”
from the Mutual Fund Education Alliance for the fourth year in a row.
John Hancock Signature Services, Inc., the transfer and shareholder services agent for John Hancock
�
Funds, attained the 2009 “Dalbar Mutual Fund Service Award” for excellence in customer
service and was awarded “5-Star” performer status for all of 2009 from National Quality Review.
In 2009, the John Hancock Funds’ public Web site won “Outstanding Website” and the financial
professional Web site won “Best Mutual Fund Website” from the Web Marketing Association.
John Hancock Funds, LLC
Member FINRA | SIPC
601 Congress Street n Boston, MA 02210-2805
1-800-225-5291 n 1-800-554-6713 TDD n www.jhfunds.com
Not FDIC insured. May lose value. no bank guarantee.
not insured by any government agency. RLAABR 2/10
Visit our Web site at www.jhfunds.comYou can also read
