This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Study Demonstrates Value Of John Hancock Asset Allocation Portfolios For 401(k) Plan Participants

BOSTON, May 8, 2014 /PRNewswire/ -- Participants in qualified plans serviced by John Hancock Retirement Plan Services (RPS) who invested exclusively in a single John Hancock asset allocation portfolio earned better returns on average than participants who selected individual investment options to form their portfolios over the five, ten, and fifteen year periods ending December 31, 2012. 1 This is according to a commissioned study of John Hancock USA recordkeeping clients conducted by Burgess Management & Research Inc. 

The recent study revealed a number of outcomes, including that the average annual return earned by participants invested in John Hancock Lifestyle portfolios has exceeded the average annual return earned by those invested in non-asset allocation investment options by 106 bps (1.06%) over 15 years. Results like this help show the benefits of diversification in a single choice and why it may be important to give participants more opportunity for what the company calls "investing smart."

"Saving early, saving more and investing smart is the golden rule for long term investing and asset allocation options could be a great example of investing smart for a participant," said Andrew Ross, senior vice president of Marketing and Product Development, John Hancock RPS.

Better Returns, When Every Dollar Counts

Investing smart and achieving better returns could be even more of a benefit for those participants whose 401(k) balance is important, such as people with a low balance and nearing or in retirement. The 5- year study found that participants with low balances whose assets were invested in Lifestyle investment options earned higher returns, with improved spreads varying by age from 184bps to 320bps (1.84% to 3.20%). The oldest participants, 60 years and older, earned the largest spread.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs