The fund offers investors a disciplined, diversified approach to allocating part of their portfolios to alternative asset classes and strategies, the company announced. It is a multi-managed fund that includes managers of its underlying funds such as Pacific Investment Management Company (PIMCO), Wellington Management Company LLP, Dimensional Fund Advisors, Stone Harbor, Deutsche Asset Management, First Quadrant, and John Hancock Asset Management.
The John Hancock Alternative Asset Allocation Fund invests in other funds and investment companies that emphasize alternative asset classes including global real estate, commodities, natural resource equities, and emerging market debt. Additionally, the fund invests in absolute return funds as well as those that utilize highly flexible investment strategies to generate alpha. These alternative or non-traditional asset categories and strategies generally have different return patterns than the broad U.S. stock and bond market and can offer significant diversification benefits, the news release said.
“With more investors looking for ways to decrease volatility in their portfolios, the John Hancock Alternative Asset Allocation Fund offers a ‘one-stop’ solution delivering exposure to various alternative asset classes and alternative strategies that act as diversifiers and may help to improve the risk-return profile of a traditional investment portfolio,” said Keith F. Hartstein, President & CEO, John Hancock Funds, in the news release.
The fund is managed by the Portfolio Solutions Group (PSG) within John Hancock Asset Management, the sub-adviser to the new fund and a division of Manulife Asset Management. PSG is led by Bruce Speca, Head of Global Asset Allocation, and Bob Boyda and Steve Medina, both Senior Portfolio Managers. They direct the fund’s investment in underlying funds managed by sub-adviser firms.