Products October 13, 2011

John Hancock Establishes New Series of R Share Classes

John Hancock Funds has established a series of R share classes for many of its mutual funds.
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Known as R6 shares, the class is available to all retirement plans and institutional non-retirement accounts (above $1 million). The R6 shares represent John Hancock Funds’ lowest-priced share class, according to a press release. Currently the class is available on the Frontier Trust (utilized by Ascensus), Matrix, and Mid-Atlantic Trust Company trading platforms with other platforms coming online in the near future.

“Demand for share classes with greater transparency and economy in our defined contribution-investment only business has increased significantly,” said Keith F. Hartstein, President & CEO, John Hancock Funds, in the announcement. “And so we created the R6 share class in response to Registered Investment Advisers and retirement plan sponsors who desire fund classes without 12b-1 fees or other administrative and service fees on many of our funds.”

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John Hancock Funds now offering R6 shares include: John Hancock Alternative Asset Allocation Fund; John Hancock Disciplined Value and John Hancock Disciplined Value Mid Cap Funds; John Hancock Global Opportunities Fund; John Hancock Lifecycle 2010 – 2045 Portfolios; John Hancock Lifestyle Aggressive, Balanced, Conservative, Growth, and Moderate Portfolios; John Hancock Strategic Income; and John Hancock Strategic Income Opportunities Funds.

 For one year after the commencement of operations of Class R6 shares of the fund, certain existing investors of Class I shares who own a minimum of $250,000 of Class I shares of the fund, and do not require the fund or its affiliates to make any type of administrative payments, may exchange all of their Class I shares for Class R6 shares of the fund.

Class R6 shares are offered without any sales charge and are generally made available to the following types of investors if they also meet the minimum initial investment requirement for purchases of Class R6 shares:

  • Qualified 401(a) plans including 401(k) plans, Keogh plans, profit-sharing pension plans, money purchase pension plans, target benefit plans, defined benefit pension plans, and Taft-Hartley multi-employer plans
  • Endowment funds and foundations
  • Any state, county or city, or its instrumentality, department, authority, or agency
  • 457 plans, including 457(a) governmental entity plans and tax-exempt plans
  • Accounts registered to insurance companies, trust companies, and bank trust departments
  • Investment companies, both affiliated and not affiliated with the adviser
  • Any entity that is considered a corporation for tax purposes, including corporate non-qualified deferred compensation plans of such corporations
  • Fund trustees and other individuals who are affiliated with the fund and other John Hancock funds

For more information, visit www.jhfundsretirement.com or call 800-845-7175.

Data & Research October 13, 2011

College Saving Trumps Retirement Saving

For the vast majority of family financial decision makers, paying for college ranks far above saving for future medical expenses or retirement, according to a study from MassMutual.
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As a result, only three in 10 American parents are confident they are adequately preparing themselves financially for retirement, according to a nationwide study in MassMutual’s State of the American Family series.  

Despite parents’ insistence on paying for their children’s education, the study found that half of those who set this as a priority say they won’t have the money needed to fund a future college education, nor do they know how much they need to save.  

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Nearly four in 10 (39%) Americans have developed a plan for their retirement saving. Among women, it’s only about three in 10 (31%) – despite the fact that women can expect to spend more than 50% more time in retirement than men. Perhaps this is why more than six in 10 (63%) of those surveyed plan to work part-time during their retirement.   

Even though some Americans have gained confidence in their ability to manage money, many more still struggle with basic financial literacy; 38% say they are strongly confident about managing money, up from 30% last year. About half are moderately confident in their ability to manage money, yet only 28% actively seek ways to educate themselves on finances. 

Americans are not just preparing for their own needs; close to a quarter plan to care for their parents' as well. Most are mindful of the stress that can result from having to be financially responsible for both children and parents: 71% say it's important that their children aren't burdened by taking care of them when they're older.  

The survey also found the economic downturn affected families' finances in unforeseen ways, and many are still feeling the effects. Only 19% of those surveyed are satisfied with their current financial situation and close to three in 10 (28%) have delayed purchasing big items because of the recession. Yet there may be a silver lining: 60% of Americans are careful not to accumulate debt, up from 50% last year, and 70% want to be actively involved in decisions regarding their finances.    

Less than 10% of those surveyed learned about managing finances from their elders, and a quarter wish that their parents taught them more about money. However, Americans may be trying to change the patterns from the past – close to eight in 10 (78%) think it's important that they educate their own children on finances to ensure a strong economy in the future. This sentiment is especially stronger among women (84%) than men (71%).  

To learn more about MassMutual's State of the American Family Study, go to http://www.massmutual.com/familyfinances.

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