John Hancock Extends Target-Date Glide Path
Amid the continuing industry debate over getting workers to retirement versus through retirement, John Hancock has extended its target-date portfolio glide path for another 20 years.
A news story on the Ignites.com Web site said the firm revealed the change in asset allocation strategy this week in a filing with the U.S. Securities and Exchange Commission (SEC).
The Ignites story said the funds were traditionally rolled down to the designated retirement date when the allocations would reach a static point and Hancock would move to investment policies and trading restrictions similar to its Lifecycle Retirement Portfolio.
“After December 31st of the designated year of the fund, the fund will, under normal market conditions, invest its assets in accordance with the predetermined ‘glide path’ set forth in the ‘Lifecycle Portfolios Overview,’” the filing states.
Now, according to the report, the roll-down will extend for a period of 20 years after retirement when the allocations become 25% equities and 75% fixed income.
As a result of the extension of the glide path beyond the retirement date, John Hancock has liquidated its Lifecycle Retirement Portfolio. Assets in these funds were rolled over to the 2010 fund in late October, according to the report.