John Hancock Funds: Safe Investment Or Risky Business?

John Hancock, a unit of Canada-based Manulife Financial Corporation, offers a portfolio of subadvised funds in the categories of domestic equity, global and international equity, income, alternative and specialty, as well as asset allocation. The firm has been forging subadvisory partnerships with institutional managers and currently oversees more than 100 investment strategies. In addition to mutual funds, John Hancock manages 529 college savings plans and closed-end funds. John Hancock's top funds for retirement include the Fundamental Large Cap Core Fund, the Disciplined Value Mid-Cap, and the Small Cap Value Fund. The company has been in business for over 160 years and is committed to helping its customers live longer, healthier, and better lives.

John Hancock's fees and share classes

John Hancock Investment Management offers a portfolio of subadvised funds in the categories of domestic equity, global and international equity, income, alternative and specialty, and asset allocation. The firm currently oversees more than 100 investment strategies, including mutual funds, 529 college savings plans, and closed-end funds.

John Hancock, like all asset managers, operates its funds with different share classes, each with a different fee structure. Some share classes have front-end loads, while others have deferred loads or no loads at all. The same 401(k) investment can come in different packages, known as share classes, and different share classes have different fees included in the expense ratios. For example, two different share class versions of the same fund are available: Class R shares and Class Z shares. Both have the same net fee, but Class R has a higher gross fee because it shares revenue with the plan sponsor.

In May 2017, John Hancock Investment Management expanded the share classes available in its college savings plan, John Hancock Freedom 529, to include a fee-based share class, Class F, for all of its 22 unique portfolios. Class F units are available for account holders who open an account and purchase shares through the fee-based programs of broker-dealers and investment advisor firms, with no initial sales charge or annual distribution and service fee.

Actively-managed funds, such as those offered by John Hancock, typically have higher expenses than index funds, which are passively managed. Fund fees have a significant impact on returns, so it is essential to consider them when choosing a fund.

John Hancock's retirement funds

John Hancock Investment Management offers a range of retirement funds, including 401(k) plans and IRAs. The company has been in the retirement planning business for nearly 50 years and is now one of the largest full-service providers in the industry.

John Hancock's 401(k) plans are offered by employers, allowing employees to contribute a percentage of their salary on a tax-deferred basis. These plans typically include a blend of stocks and bonds, and employees can choose the type of investment funds within the plan according to their risk appetite and financial goals.

The company also offers Individual Retirement Accounts (IRAs), which are qualified plans designed to help individuals save for retirement. These include traditional IRAs and Roth IRAs, each with different rules, limits, and tax implications.

In addition to these retirement accounts, John Hancock also manages 529 college savings plans and closed-end funds. The company provides resources and expertise to help individuals navigate their short-term and long-term financial goals, offering guidance and tools to achieve financial wellness and retire with confidence.

John Hancock's asset allocation funds

John Hancock Investment Management offers a range of asset allocation funds, including the John Hancock Alternative Asset Allocation Fund. Asset allocation funds are designed to provide broad exposure to financial markets and diversification benefits through a mix of asset classes, investment styles, and asset managers.

The company's asset allocation franchise represents more than a third of the $149 billion in client assets under management. John Hancock's expertise in multi-asset investing dates back to 1995, and they have since introduced a wide array of new and alternative strategies to strengthen the diversification benefits of their asset allocation portfolios.

John Hancock Investment Management offers various types of portfolios, including:

• Multimanager Lifestyle Portfolios: These portfolios offer diversification by asset class, investment style, and manager across five risk/reward profiles that remain steady over time.
• Multi-Index Lifetime Portfolios: These are one-stop retirement investments with a focus on low-cost implementation.
• Lifetime Blend Portfolios: These portfolios are also designed for retirement, offering low-cost implementation and income and capital appreciation.

John Hancock's international exposure

John Hancock Investment Management offers a portfolio of subadvised funds in the categories of domestic equity, global and international equity, income, alternative and specialty, as well as asset allocation. In December 2023, John Hancock Investment Management, a company of Manulife Investment Management, launched the John Hancock Disciplined Value International Select ETF (NYSE Arca: JDVI). The fund seeks long-term capital growth and is managed by a veteran team at subadvisor Boston Partners Global Investors, Inc.

The launch of the John Hancock Disciplined Value International Select ETF brings John Hancock IM's lineup of ETFs to 13 funds with over $5 billion in assets under management as of September 30, 2023. The fund managers of the new ETF, Joshua M. Jones, CFA, and Christopher K. Hart, CFA, have over 50 years of combined experience. The firm focuses on a stock selection process, targeting securities with attractive relative valuations, strong fundamentals, and positive business momentum.

In addition to the JDVI ETF, John Hancock Investment Management also offers the John Hancock International High Dividend ETF (NYSE Arca: JHID). The JHID ETF is subadvised by John Hancock IM's affiliated asset manager, Manulife Investment Management (US). The investment objective of the JHID ETF is to seek a high level of current income, with long-term capital growth as a secondary objective. Under normal market conditions, the fund invests at least 80% of its net assets in dividend-paying large- and mid-cap equity securities of non-U.S. developed-market companies.

John Hancock Investment Management has been forging subadvisory partnerships with institutional managers such as Wellington, Robeco, and GMO. In July 2015, the firm announced it would team up with Dimensional Fund Advisors to launch several "smart beta" equity exchange-traded funds. John Hancock Investment Management offers a range of investment strategies, including mutual funds, 529 college savings plan strategies, and closed-end funds.

John Hancock's multi-sector bond fund

John Hancock Investment Management offers a range of investment options, including mutual funds, 529 college savings plans, closed-end funds, and retirement plans. One of their offerings is the John Hancock Bond Fund, which seeks to provide a high level of current income while maintaining prudent investment risk. This fund primarily invests in U.S. government, agency, and corporate bonds, with a focus on diversification and yield curve positioning.

The John Hancock Bond Fund (with the ticker symbol JHBSX) is designed for investors seeking a variety of opportunities in the bond market. The fund invests at least 80% of its net assets in a diverse portfolio of bonds, including corporate bonds, debentures, mortgage-related and asset-backed securities, and U.S. government and agency securities. While most of these securities are investment-grade, the fund allows for up to 25% of its net assets to be invested in below-investment-grade debt securities, or "junk bonds."

As of April 30, 2024, the fund's top holdings included various U.S. Treasury Bonds and Notes, totaling 11.5% of its assets. The fund's performance data shows returns as of June 30, 2024, with an overall Morningstar Rating of 3 for 3-year and 5-year periods, and 4 for the 10-year period.

John Hancock also offers other investment options, such as the John Hancock Funds II U.S. High Yield Bond Fund, which has a 5-year annualized total return of 7.7% as of April 16, 2021.

When considering any investment, it is essential to assess your financial goals, risk tolerance, and time horizon. It is always recommended to consult with a financial advisor to determine if a particular investment aligns with your specific circumstances.

Frequently asked questions