In the announcement, the firm explained that step-ups provide investors who elect Income Plus For Life the potential to increase their guaranteed lifetime income amount when their account values rise. John Hancock annuities purchased on or after June 16, 2008, will have four quarterly reviews each contract year up to age 95 to capture potential market growth via an anniversary step-up, the announcement said.
John Hancock Annuities also announced the addition of three new, broadly-diversified investment options: Dimensional Fund Advisors (DFA) Disciplined Diversification, T. Rowe Price Capital Appreciation Value, and Wellington Management Core Allocation Plus.
The Dimensional Fund Advisors (DFA) Disciplined Diversification portfolio seeks total return consisting of capital appreciation and current income by investing approximately 65%-70% of assets to equity securities and 30%-35% of assets to fixed income securities. The equity allocation invests in a diversified portfolio of global equity securities while fixed income assets are allocated to high-quality, short-term global bonds and Treasury Inflation Protected Securities (TIPS).
The T. Rowe Price Capital Appreciation Value portfolio is managed in a similar style to the T. Rowe Price Capital Appreciation Fund, seeking long-term capital appreciation by investing in 50%-70% of assets to equity securities and 30%-50% of assets to fixed income securities.
The Wellington Management Core Allocation Plus fund provides exposure to core global equity and fixed income securities, and exposure to equities that explore opportunistic, uncorrelated investment ideas. The target asset mix for the portfolio may range between 60%-75% in equities and 25%-40% in fixed income securities.
More information is at www.jhannuities.com .