John Hancock Introduces New Funds of Funds

According to a company press release, the Allocation Growth + Value Portfolio combines large-cap-growth and large-cap-value investment styles with approximately half of its assets in the John Hancock US Global Leaders Growth Fund, managed by Sustainable Growth Advisers, LP, and half in the John Hancock Classic Value Fund, managed by Pzena Investment Management, LLC.

The Allocation Core Portfolio will invest approximately one third of its assets in each of three funds: John Hancock US Global Leaders Growth Fund, John Hancock Classic Value Fund and John Hancock Strategic Income Fund, according to the release.   This fund of funds also uses a multi-manager approach, combining the expertise of three institutional asset managers, Sustainable Growth Advisers, LP, Pzena Investment Management, LLC, and John Hancock Advisers, LLC.

Keith Hartstein, chief executive officer of John Hancock Funds, said in the release, “Financial advisors and their clients have recognized that the key to investment success is a well-diversified portfolio… In response to this demand, John Hancock Funds created these two asset allocation products that combine top-tier investment talent with portfolio diversification and the potential for greater returns with reduced risk. These funds allow advisors to craft client portfolios easily and assuredly.”

In addition to Class A, B, and C shares, the funds also offer Class R shares for institutional investors, according to the release.   The minimum initial investment is $1,000 for regular accounts or $500 for retirement accounts.  

The company said the allocation mix of both funds will be monitored and rebalanced periodically.