According to the survey conducted by Burgess + Associates for John Hancock, participants in a company Lifestyle fund enjoyed investment returns that were approximately 3.15% to 4.24% above those who chose to go it on their own, a John Hancock news release said.
More than 91% of participants who picked their own individual funds would have experienced better performance if they had invested their money in a single John Hancock Lifestyle Fund. On average, the ending balances of non-lifestyle participants would have been 17.46% higher at the end of the period if they had contributed to a John Hancock Lifestyle Fund, according to the survey.
The study included 120,048 John Hancock 401(k) plan participants divided into various Lifestyle and Non-Lifestyle groups based on the investment risk inherent of the allocation strategies they selected.
John Hancock has more than $24 billion in Lifestyle Fund assets under management in its variable annuity, variable life and 401(k) products, as of June 30, 2005.