John Hancock Expands Managers for Variable Annuities

John Hancock Annuities has added three new asset allocation options from American Funds and Franklin Templeton to John Hancock Trust (JHT), the firm’s variable annuity investment platform.

The three new asset allocation options are:

  • Franklin Templeton Founding Allocation, a fund of funds which invests equally in three underlying funds: Global (invests in stocks around the world, including those in the U.S. and emerging markets); Income (invests in both equity and debt securities, focusing on dividend-paying stocks and undervalued bonds); Mutual Shares (invests in undervalued stocks as well as risk arbitrage securities and distressed companies).

  • American Asset Allocation, which invests directly in American Funds Insurance Series (“AFIS”) Asset Allocation Fund. The AFIS fund is managed with a similar investment objective as American Funds American Balanced Fund, investing between 40 – 80% of assets in stocks and between 20 – 50% of assets in bonds, including up to 15% in foreign stocks and up to 5% in foreign bonds.

  • American Funds Global Diversification, a model portfolio consisting of five funds: 50% American Global Growth, 10% American High Income, 5% American New World, 15% American Global Small Cap, and 20% American Bond. Each of these five funds invests directly in funds of the same name managed by AFIS.

The change was effective May 1.

“John Hancock is focused on bringing premier asset management capabilities to the platforms that underlie our variable annuities. We also have long been proponents of a balanced, disciplined investment strategy through the use of asset allocation funds, including our own Lifestyle series of portfolios, which we have offered since 1996,” said Marc Costantini, President, John Hancock Annuities.