ASSET ALLOCATION Redefining diversification in your MULTIMANAGER LIFESTYLE PORTFOLIOS
Three things to know about asset allocation 1 Different assets play different roles While stocks have significant appreciation and wealth-building potential, can generate steady income. can buffer the effect of market losses, while alternative investments can help improve a s diversification potential. 2 Markets are unpredictable Capital markets are dynamic, and today s asset class leader may be tomorrow s laggard. A diversified investment approach that includes a range of asset classes can help investors pursue their long-term financial goals while managing the risks along the way. 3 The mix matters Selecting the mix of assets in your may be the dominant contributor to total returnmore so than the choice of individual holdings. In fact, an influential, decade-long study of 82 large pension plans revealed that this asset mix explained, on average, nearly 92% of the variation in total return (Brinson, Singer, and Beebower, 1991). There s no telling which asset class will be the best performing from year to year Annual returns of asset class categories WORST PERFORMER BEST PERFORMER 27 28 29 21 211 212 213 214 215 216 17.12% 7.6 6.9 6.3 5.7 4.74% 2.24% 1.5 5.24% 1.8% 16.24% 25.6 26.39% 33.79% 37. 45.24% 57.51% 42.14% 29. 28.43% 27.1 17.% 5.93%.1 26.8 16.1% 15.19% 14.9% 13.9% 11. 6.54%. 7.84% 4.38% 1..8%.1%.6 4.18% 13.33% 17.39% 16.42% 16.3 15.59% 12.91% 7.48% 4.21%. 38.82% 33.11% 15.78% 15.5 7.42%.21%. 2.2% 13.24% 5.9 4.89% 4.23% 2. 2.19%.3% 3.44% Asset class diversification can provide you with exposure to the strongest performers in any given year while helping you avoid owning too much of the weakest..92%.5.3% 2.79% 3.92% 4.41% 4.64% 5.2 21.31% 17.49% 12. 1.78% 6.2% 5.1% 2.6.2 Stay diversified Those who stayed invested in a diversified throughout the last decade fared well, despite volatility along the way. Growth of $1, for diversified s $1.K 27 21 $17.1K 213 216 Source: John Hancock Investments, as of 12/31/16. The investment universe is expanding 58 The number of fund categories The tracked by Morningstar in 23 12 number of fund categories tracked by Morningstar TODAY Today, there are over 1 Morningstar categories, which now include niche styles and alternative investments. This variety of asset classes and specialized managers presents new opportunities for investors. Source: Morningstar, as of 12/31/16. Investment-grade are represented by the Bloomberg Barclays U.S. Aggregate Bond Index, which tracks the performance of U.S. investment-grade in government, asset-backed, and corporate debt markets. are represented by the Bank of America Merrill Lynch (BofA ML) U.S. High Yield Master II Index, which tracks the performance of globally issued, U.S. dollar-denominated high-yield. is represented by the Citigroup 3-Month U.S. Treasury Bill Index, which is a market-value-weighted index that tracks the performance of three-month U.S. Treasury debt. is represented by the MSCI All Country (AC) World ex-usa Index, which tracks the performance of publicly traded large- and mid-cap stocks of companies in developed and emerging markets outside the United States. Total returns are calculated gross of foreign withholding tax on dividends. is represented by the Russell 2 Index, which tracks the performance of 2, publicly traded small-cap companies in the United States. is represented by the Russell 1 Index, which tracks the performance of 1, publicly traded large-cap companies in the United States. are represented by an equally weighted combination of the HFRI Macro Index, the HFRI Equity Market Neutral Index, the HFRI Merger Arbitrage Index, the Morningstar real estate fund category average, the Morningstar emerging markets bond fund category average, and the Morningstar Long-Only Commodity Index. is represented by the average return of the six asset classes in the chart above, rebalanced monthly, excluding cash. It does not represent any specific index. Annual returns are based on calendar years. Indexes are unmanaged and do not take transaction costs or fees into consideration. It is not possible to invest directly in an index. Performance figures assume reinvestment of dividends and capital gains. This chart is for illustrative purposes only and does not represent the performance of any John Hancock fund. Past performance does not guarantee future results. Diversification does not guarantee a profit or eliminate the risk of a loss. 2 Source: Morningstar, as of 12/31/16. Static categories, those currently without description and without funds, are omitted from this figure. 3
Asset allocation at John Hancock Investments A leader in multi-asset s Our expertise in multi-asset investing dates back to 1995, with our first suite of s employing multiple asset managers. Since then, we have been at the forefront of design, introducing a wide array of new and alternative strategies into our asset allocation s to strengthen their diversification benefits for individual and institutional investors. A pioneer in multimanager approaches to asset allocation since 1995 Heritage of innovation, embracing alternative investments since 1997 Asset allocation s represent nearly half of our business today A better way to invest We serve investors globally through a unique multimanager approach: We search the world to find proven teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Over 2 professionals dedicated to investment manager research and oversight Over 3 meetings each year to identify proven managers More than 1 in-person oversight meetings with managers annually At John Hancock Investments, our history of asset allocation leadership and innovation spans two decades Our asset allocation s bring together some of the best investment teams from around the world 1995 Multimanager asset allocation s for retirement plans 25 Target-risk s for individuals 29 Alternative Asset Allocation Fund 26 Target-date retirement s 214 Income Allocation Fund p FUNDS LAUNCHED q UNDERLYING EXPOSURES INTRODUCED 1997 Real estate investment trusts 23 Natural resources, international small caps 27 Emerging-market, floating-rate debt 21 Long/short currency 211 Global absolute return 213 Hedge fund of funds Asset allocation $56 billion TODAY Our asset allocation franchise represents more than a third of the firm s nearly $15 billion in client assets under management. n Asset allocation n Alternative n U.S. n Fixed income n n Other 4 Source: John Hancock Investments, as of 9/3/17. Representative list of asset managers as of 9/3/17. All logos are the property of their respective owners. 5
Our investment approach puts the best to work in each The industry-leading team we ve hired at John Hancock Asset Management is one of the largest managers of asset allocation funds in the United States. 1 Our philosophy: a deeper level of diversification We believe diversification should extend beyond asset classes to include multiple investment styles and multiple managers. Refining the techniques of diversification, this approach harnesses expert ideas from independent investment teams across the world. Our oversight process ensures that each manager adheres to its assignment and that each mandate behaves according to our expectations. A time-tested process The management team follows a consistent, battle-proven process that has endured over multiple market cycles. Managing multi-asset s for over two decades, this global team combines macroeconomic research, fundamental analysis, and robust risk management. Implementing this process with different specialized managers enables the team to add or remove exposures with an unparalleled degree of precision. Our method delivers three layers of diversification to shareholders of our asset allocation s Representative portion of John Hancock Multimanager Lifestyle Balanced Portfolio n Oversight Monitoring each team for the repeatability of its investment process and management of risk Develop global market outlook Examine core asset markets and beyond, including alternative investment strategies and targeted regional and sector exposures Analyze macroeconomic and fundamental factors Forecast expected returns to identify the best market opportunities n Multiple asset classes Both within and beyond traditional and fixed income Oversight by John Hancock Investments Select asset classes and strategies Tailor search criteria so each underlying investment serves a specific purpose n Multiple styles Continual exposure to a variety of strategies, as different characteristics go in and out of favor Value Core Growth Craft an asset roster, contingent on expected returns, risks, and correlations Design a multimanager approach, searching worldwide for required expertise Build s n Multiple managers A diversity of approaches from some of the world s best managers Boston Partners Barrow Hanley JHAM T. Rowe Price Jennison Optimize asset, strategy, and manager mix with proprietary methodology Allocate capital to funds, aiming to maximize return per unit of risk Create an enduring of funds, implementing the desired long-run asset mix Review, monitor, adjust, and repeat Manage asset mix actively to exploit short-term market dislocations Introduce asset classes, strategies, and managers as new opportunities surface Eliminate positions and managers as valuations wax and conviction wanes Revisit long-term strategic asset allocation Source: John Hancock Investments, as of 9/3/17. 6 1 Strategic Insight, as of 12/31/16. Includes target-date and risk-based lifecycle mutual fund assets. 7
Inside Multimanager Lifestyle Portfolios John Hancock Multimanager Lifestyle Portfolios seek a stable balance of risk-and-return potential. Each invests in a different combination of underlying funds, and we continually adjust positions to capture opportunities and manage risks. Our multi-asset, multistyle, and multimanager method engages a global roster of proven teams, each with a distinct investment philosophy and approach to active management. Equity Fixed income Alternative and specialty Asset category (%) Conservative 1 73% 1% Number of underlying funds: 5 Number of unique managers: 17 5-year standard deviation: 3.48% 5-year beta to S&P 5 Index:.27 1 3% Moderate 3 5 24% 1 Number of underlying funds: 52 Number of unique managers: 17 5-year standard deviation: 4.88% 5-year beta to S&P 5 Index:.45 Balanced 54% 3 9% 11% 24% 18% Number of underlying funds: 58 Number of unique managers: 2 5-year standard deviation: 6.59% 5-year beta to S&P 5 Index:.64 Growth 72% 18% 11% 24% 3% Number of underlying funds: 58 Number of unique managers: 2 5-year standard deviation: 8.23% 5-year beta to S&P 5 Index:.81 8% Aggressive 88% % 12% 1% 28% 3 Number of underlying funds: 43 Number of unique managers: 16 5-year standard deviation: 9.61% 5-year beta to S&P 5 Index:.94 n 1.19 U.S. Strategic Equity Allocation Large Cap Sleeve (JHAM) 3.1 U.S. Strategic Equity Allocation Large Cap Sleeve (JHAM) 4.55 U.S. Strategic Equity Allocation Large Cap Sleeve (JHAM) 4.99 U.S. Strategic Equity Allocation Large Cap Sleeve (JHAM) 5.56 U.S. Strategic Equity Allocation Large Cap Sleeve (JHAM) 2.9 Capital Appreciation Value Fund (T. Rowe Price) 4.37 Capital Appreciation Value Fund (T. Rowe Price) 4.37 Capital Appreciation Value Fund (T. Rowe Price) 4.26 Capital Appreciation Value Fund (T. Rowe Price) 4.15 Capital Appreciation Value Fund (T. Rowe Price).38 Equity Income Fund (T. Rowe Price) 1.54 Equity Income Fund (T. Rowe Price) 3.1 Equity Income Fund (T. Rowe Price) 4.16 Equity Income Fund (T. Rowe Price) 5.15 Equity Income Fund (T. Rowe Price).3 Disciplined Value Fund (Boston Partners) 1.2 Disciplined Value Fund (Boston Partners) 2.34 Disciplined Value Fund (Boston Partners) 3.24 Disciplined Value Fund (Boston Partners) 4.1 Disciplined Value Fund (Boston Partners) 1.6 Fundamental Large Cap Core Fund (JHAM) 1 2.99 Fundamental Large Cap Core Fund (JHAM) 24% 2.28 Fundamental Large Cap Core Fund (JHAM) 3% 3.19 Fundamental Large Cap Core Fund (JHAM) 3 4.28 Fundamental Large Cap Core Fund (JHAM).25 Blue Chip Growth Fund (T. Rowe Price) 1.1 Blue Chip Growth Fund (T. Rowe Price) 2.14 Blue Chip Growth Fund (T. Rowe Price) 2.97 Blue Chip Growth Fund (T. Rowe Price) 3.7 Blue Chip Growth Fund (T. Rowe Price).24 Capital Appreciation Fund (Jennison) 1.8 Capital Appreciation Fund (Jennison) 2.9 Capital Appreciation Fund (Jennison) 2.91 Capital Appreciation Fund (Jennison) 3.59 Capital Appreciation Fund (Jennison).24 Strategic Growth Fund (JHAM) 1.8 Strategic Growth Fund (JHAM) 2.9 Strategic Growth Fund (JHAM) 2.91 Strategic Growth Fund (JHAM) 3.6 Strategic Growth Fund (JHAM).17 Value Equity Fund (Barrow Hanley).69 Value Equity Fund (Barrow Hanley) 1.34 Value Equity Fund (Barrow Hanley) 1.85 Value Equity Fund (Barrow Hanley) 2.3 Value Equity Fund (Barrow Hanley) n 2.4 Strategic Equity Allocation Fund (JHAM) 3.61 Strategic Equity Allocation Fund (JHAM) 4.64 Strategic Equity Allocation Fund (JHAM) 7.1 Strategic Equity Allocation Fund (JHAM) 8.26 Strategic Equity Allocation Fund (JHAM).5 Value Fund (Franklin Templeton) 1. Value Fund (Franklin Templeton) 1.89 Value Fund (Franklin Templeton) 2.61 Value Fund (Franklin Templeton) 3.45 Value Fund (Franklin Templeton).47 Growth Fund (Wellington).89 Growth Fund (Wellington) 1.82 Growth Fund (Wellington) 2.5 Growth Fund (Wellington) 3.27 Growth Fund (Wellington) 1.11 Global Equity Fund (JHAM) 1.76 Global Equity Fund (JHAM) 1.67 Global Equity Fund (JHAM) 1.74 Global Equity Fund (JHAM) 1.7 Global Equity Fund (JHAM).49 Growth Stock Fund (Invesco) 1.24 Growth Stock Fund (Invesco) 1.61 Growth Stock Fund (Invesco) 2.46 Growth Stock Fund (Invesco) 2.76 Growth Stock Fund (Invesco).79 Global Shareholder Yield Fund (Epoch) 1.32 Global Shareholder Yield Fund (Epoch) 18% 1.27 Global Shareholder Yield Fund (Epoch) 24% 1.31 Global Shareholder Yield Fund (Epoch) 28% 1.7 Global Shareholder Yield Fund (Epoch).87 Fundamental Global Franchise Fund (JHAM) 1.31 Fundamental Global Franchise Fund (JHAM) 1.26 Fundamental Global Franchise Fund (JHAM) 1.22 Fundamental Global Franchise Fund (JHAM) 1.16 Fundamental Global Franchise Fund (JHAM).23 Value Equity Fund (JHAM).76 Value Equity Fund (JHAM) 1.13 Value Equity Fund (JHAM) 1.75 Value Equity Fund (JHAM) 1.85 Value Equity Fund (JHAM).55 Small Company Fund (Dimensional).95 Small Company Fund (Dimensional) 1.53 Small Company Fund (Dimensional) 2. Small Company Fund (Dimensional).55 Small Cap Fund (Franklin Templeton).95 Small Cap Fund (Franklin Templeton) 1.53 Small Cap Fund (Franklin Templeton) 2. Small Cap Fund (Franklin Templeton).23 Disciplined Value Fund (Boston Partners).36 Disciplined Value Fund (Boston Partners).42 Disciplined Value Fund (Boston Partners).61 Disciplined Value Fund (Boston Partners).78 Disciplined Value Fund (Boston Partners) n U.S. mid-cap.62 Mid Value Fund (T. Rowe Price) 1.52 Mid Value Fund (T. Rowe Price) 2.51 Mid Value Fund (T. Rowe Price) 3.55 Mid Value Fund (T. Rowe Price) 4.55 Mid Value Fund (T. Rowe Price) 1%.61 Mid Cap Stock Fund (Wellington) 3% 1.49 Mid Cap Stock Fund (Wellington) 2.48 Mid Cap Stock Fund (Wellington) 8% 3.55 Mid Cap Stock Fund (Wellington) 1% 4.52 Mid Cap Stock Fund (Wellington).14 U.S. Strategic Equity Allocation Mid Cap Sleeve (JHAM).36 U.S. Strategic Equity Allocation Mid Cap Sleeve (JHAM).54 U.S. Strategic Equity Allocation Mid Cap Sleeve (JHAM).59 U.S. Strategic Equity Allocation Mid Cap Sleeve (JHAM).66 U.S. Strategic Equity Allocation Mid Cap Sleeve (JHAM) n Emerging-market.35 Emerging Markets Equity Fund (JHAM).75 Emerging Markets Equity Fund (JHAM) 1.6 Emerging Markets Equity Fund (JHAM) 2.55 Emerging Markets Equity Fund (JHAM) 3.88 Emerging Markets Equity Fund (JHAM) 1%.35 Emerging Markets Fund (Dimensional) 2%.75 Emerging Markets Fund (Dimensional) 3% 1.57 Emerging Markets Fund (Dimensional) 2.52 Emerging Markets Fund (Dimensional) 8% 3.8 Emerging Markets Fund (Dimensional).38 Greater China Opportunities Fund (JHAM) n.3 Small Cap Value Fund (Wellington).69 Small Cap Value Fund (Wellington).59 Small Cap Value Fund (Wellington).73 Small Cap Value Fund (Wellington) 1.12 Small Cap Value Fund (Wellington).35 Small Company Growth Fund (Invesco).49 Small Company Growth Fund (Invesco).6 Small Company Growth Fund (Invesco).93 Small Company Growth Fund (Invesco).29 Small Cap Growth Fund (Wellington).34 Small Cap Growth Fund (Wellington).49 Small Cap Growth Fund (Wellington).6 Small Cap Growth Fund (Wellington).93 Small Cap Growth Fund (Wellington) 1%.11 U.S. Strategic Equity Allocation Small Cap Sleeve (JHAM) 2%.27 U.S. Strategic Equity Allocation Small Cap Sleeve (JHAM) 3%.41 U.S. Strategic Equity Allocation Small Cap Sleeve (JHAM) 4%.45 U.S. Strategic Equity Allocation Small Cap Sleeve (JHAM).5 U.S. Strategic Equity Allocation Small Cap Sleeve (JHAM).4 Small Company Value Fund (T. Rowe Price).49 Small Company Value Fund (T. Rowe Price).76 Small Company Value Fund (T. Rowe Price).36 New Opportunities Fund (BW/DFA/GWK/INV).59 New Opportunities Fund (BW/DFA/GWK/INV).8 New Opportunities Fund (BW/DFA/GWK/INV).36 Small Cap Core Fund (JHAM).59 Small Cap Core Fund (JHAM).79 Small Cap Core Fund (JHAM) n Multi-sector bond 6.8 Strategic Income Opportunities Fund (JHAM) 5.95 Strategic Income Opportunities Fund (JHAM) 5. Strategic Income Opportunities Fund (JHAM) 2.26 Strategic Income Opportunities Fund (JHAM) 1 4.53 Short Duration Credit Opportunities Fund (Stone Harbor) 3.32 Short Duration Credit Opportunities Fund (Stone Harbor) 2.8 Short Duration Credit Opportunities Fund (Stone Harbor) 1.28 Short Duration Credit Opportunities Fund (Stone Harbor) 11% 3.78 Spectrum Income Fund (T. Rowe Price) 3.3 Spectrum Income Fund (T. Rowe Price) 2.78 Spectrum Income Fund (T. Rowe Price) 1.25 Spectrum Income Fund (T. Rowe Price).95 Global Income Fund (Stone Harbor).85 Global Income Fund (Stone Harbor).67 Global Income Fund (Stone Harbor).34 Global Income Fund (Stone Harbor) n Intermediate-term bond 1.6 Bond Fund (JHAM) 8.26 Bond Fund (JHAM) 6.9 Bond Fund (JHAM) 2.54 Bond Fund (JHAM) 3% 9.84 Total Return Fund (PIMCO) 24% 7.78 Total Return Fund (PIMCO) 4.58 Total Return Fund (PIMCO) 1.92 Total Return Fund (PIMCO) 9.82 Core Bond Fund (Wells Capital) 7.83 Core Bond Fund (Wells Capital) 2.4 Core Bond Fund (Wells Capital).88 Core Bond Fund (Wells Capital) n Bank loan 6.1 Floating Rate Income Fund (WAMCO) 4.72 Floating Rate Income Fund (WAMCO) 3% 3.49 Floating Rate Income Fund (WAMCO) 2% 1.79 Floating Rate Income Fund (WAMCO) n High-yield bond 1.1 High Yield Fund (JHAM) 1.16 High Yield Fund (JHAM).89 High Yield Fund (JHAM).46 High Yield Fund (JHAM) 2%.74 U.S. High Yield Bond Fund (Wells Capital) 3%.85 U.S. High Yield Bond Fund (Wells Capital) 2%.65 U.S. High Yield Bond Fund (Wells Capital) 1%.34 U.S. High Yield Bond Fund (Wells Capital).51 High Yield Fund (WAMCO).59 High Yield Fund (WAMCO).45 High Yield Fund (WAMCO).23 High Yield Fund (WAMCO) n Global bond 1.9 Asia Pacific Total Return Bond Fund (JHAM) 1.79 Asia Pacific Total Return Bond Fund (JHAM).99 Asia Pacific Total Return Bond Fund (JHAM).59 Asia Pacific Total Return Bond Fund (JHAM) 1.4 Global Short Duration Credit Fund (JHAM) 4% 1.6 Global Short Duration Credit Fund (JHAM) 2%.83 Global Short Duration Credit Fund (JHAM) 1%.43 Global Short Duration Credit Fund (JHAM) 2.14 Global Bond Fund (PIMCO) 1.39 Global Bond Fund (PIMCO).49 Global Bond Fund (PIMCO).29 Global Bond Fund (PIMCO) n Emerging-market debt 3% 3.23 Emerging Markets Debt Fund (JHAM) 3% 3.5 Emerging Markets Debt Fund (JHAM) 3% 2.29 Emerging Markets Debt Fund (JHAM) 1% 1.45 Emerging Markets Debt Fund (JHAM) n Inflation-protected bond 6.58 Real Return Bond Fund (PIMCO) 4.53 Real Return Bond Fund (PIMCO) 3% 3.2 Real Return Bond Fund (PIMCO) 1% 1.46 Real Return Bond Fund (PIMCO) n Short-term bond 4% 4. Short Term Government Income Fund (JHAM) n Sector 1.24 Financial Industries Fund (JHAM) 1.51 Financial Industries Fund (JHAM) 1.75 Financial Industries Fund (JHAM).31 Natural Resources Fund (Jennison).45 Natural Resources Fund (Jennison).77 Natural Resources Fund (Jennison) 1.13 Natural Resources Fund (Jennison) 1.49 Natural Resources Fund (Jennison) 2% 1% 4%.75 Science & Technology Fund (Allianz/T. Rowe Price) 1.1 Science & Technology Fund (Allianz/T. Rowe Price) 1.4 Science & Technology Fund (Allianz/T. Rowe Price).65 Health Sciences Fund (T. Rowe Price).9 Health Sciences Fund (T. Rowe Price) 1.32 Health Sciences Fund (T. Rowe Price).6 Real Estate Equity Fund (T. Rowe Price).5 Real Estate Equity Fund (T. Rowe Price).5 Real Estate Equity Fund (T. Rowe Price).49 Real Estate Equity Fund (T. Rowe Price).49 Real Estate Equity Fund (T. Rowe Price).6 Global Real Estate Fund (DeAWM).5 Global Real Estate Fund (DeAWM).49 Global Real Estate Fund (DeAWM).49 Global Real Estate Fund (DeAWM).49 Global Real Estate Fund (DeAWM) n Absolute return 3.3 Global Absolute Return Strategies Fund (Standard Life) 2.24 Global Absolute Return Strategies Fund (Standard Life) 1.74 Global Absolute Return Strategies Fund (Standard Life) 1.61 Global Absolute Return Strategies Fund (Standard Life) 3.25 Absolute Return Currency Fund (First Quadrant) 4% 2.19 Absolute Return Currency Fund (First Quadrant) 3% 1.73 Absolute Return Currency Fund (First Quadrant) 3% 1.59 Absolute Return Currency Fund (First Quadrant) 2%.87 Absolute Return Currency Fund (First Quadrant) 1.1 Global Focused Strategies Fund (Standard Life) n Thematic 2% 1.71 Enduring Assets Fund (Wellington) %.49 Enduring Assets Fund (Wellington) 1% 1.3 Technical Opportunities Fund (Wellington) 2% 1.97 Technical Opportunities Fund (Wellington) 2% 2.43 Technical Opportunities Fund (Wellington) n Long/short %.16 Seaport Fund (Wellington) %.27 Seaport Fund (Wellington) %.24 Seaport Fund (Wellington) %.23 Seaport Fund (Wellington) %.4 Seaport Fund (Wellington) 8% Source: John Hancock Investments, as of 9/3/17.Standard deviation is a statistical measure of the historic volatility of a. It measures the fluctuation of a fund s periodic returns from the mean stated benchmark) is 1.. Accordingly, a fund with a 1.1 beta is expected to have 1% more volatility than the market. The S&P 5 Index tracks the performance of 5 of the largest publicly traded 8 or average. The larger the deviation, the larger the standard deviation and the higher the risk. Beta measures the sensitivity of the fund to its benchmark. The beta of the market (as represented by the companies in the United States. It is not possible to invest directly in an index. Allocation figures are rounded to the nearest whole number. Allocations less than are not labeled within the charts. 9
Multimanager Lifestyle Portfolios results over time Multimanager Lifestyle Portfolios update Position size changes from 6/3/17 to 9/3/17 Average annual total returns as of 9/3/17 (%) Expense ratios (%) John Hancock Multimanager Lifestyle Conservative Portfolio Ticker QTD 1 year 3 year 5 year 1 year Gross Net (what you pay) Class I (without sales charge) JTOIX 1.6 5.3 3.32 3.66 4.13.96.96 Class A (without sales charge) JALRX 1.52 4.71 3.15 3.76 4.41 1.27 1.25 Class A (with maximum sales charge) JALRX 3.58.54 1.41 2.7 3.88 1.27 1.25 John Hancock Multimanager Lifestyle Moderate Portfolio Class I (without sales charge) JTMIX 2.43 8.37 4.57 5.52 4.38.99.99 Class A (without sales charge) JALMX 2.42 8.1 4.44 5.66 4.69 1.3 1.28 Class A (with maximum sales charge) JALMX 2.72 2.7 2.66 4.58 4.16 1.3 1.28 John Hancock Multimanager Lifestyle Balanced Portfolio Class I (without sales charge) JTBIX 3.36 12.11 5.75 7.34 4.34 1.4 1.4 Class A (without sales charge) JALBX 3.2 11.71 5.61 7.48 4.67 1.35 1.33 Class A (with maximum sales charge) JALBX 1.96 6.1 3.82 6.39 4.13 1.35 1.33 John Hancock Multimanager Lifestyle Growth Portfolio Class I (without sales charge) JTGIX 4.15 15.47 6.85 9.14 4.4 1.7 1.7 Class A (without sales charge) JALGX 4.7 15.6 6.7 9.31 4.74 1.38 1.36 Class A (with maximum sales charge) JALGX 1.11 9.31 4.9 8.2 4.2 1.38 1.36 John Hancock Multimanager Lifestyle Aggressive Portfolio Class I (without sales charge) JTAIX 4.45 17.85 7.58 1.29 3.92 1.12 1.12 Class A (without sales charge) JALAX 4.93 18.16 7.66 1.61 4.35 1.43 1.41 Class A (with maximum sales charge) JALAX.29 12.24 5.85 9.49 3.82 1.43 1.41 S&P 5 Index 4.48 18.61 1.81 14.22 7.44 Bloomberg Barclays U.S. Aggregate Bond Index.85.7 2.71 2.6 4.27 1/15/5 is the inception date for the oldest class of shares, Class 1 shares. Class I shares were first offered on 5/1/15; returns prior to this date are those of Class 1 shares that have been recalculated to apply the gross fees and expenses of Class I shares. Please note that Class I shares may not be available to all investors and that performance of other share classes may vary. The S&P 5 Index tracks the performance of 5 of the largest publicly traded companies in the United States. The Bloomberg Barclays U.S. Aggregate Bond Index tracks the performance of U.S. investment-grade in government, asset-backed, and corporate debt markets. It is not possible to invest directly in an index. Net (what you pay) represents the effect of a fee waiver and/or expense reimbursement through 4/3/18 for Class A shares, and is subject to change. The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited. For the most recent month-end performance, visit jhinvestments.com. Equity Fixed income Alternative and specialty Conservative Moderate Balanced Growth Aggressive Asset category Fund (manager) Change (%) Change (%) Change (%) Change (%) Change (%) n Blue Chip Growth Fund (T. Rowe Price).3.3.18.2.23 Capital Appreciation Fund (Jennison).3.2.15.15.21 Capital Appreciation Value Fund (T. Rowe Price) +.5 +.1.4.9.14 Disciplined Value Fund (Boston Partners) +.1 +.2.7.5.6 Equity Income Fund (T. Rowe Price) +.1 +.3.9 1.7 1.8 Fundamental Large Cap Core Fund (JHAM) +.2 +.6.7.5.7 Strategic Growth Fund (JHAM).3.3.17.19.23 U.S. Strategic Equity Allocation Large Cap Sleeve (JHAM).1 +.33 +.17.2 Value Equity Fund (Barrow Hanley).4.3.3 n Disciplined Value Fund (Boston Partners) +.23 +.36 +.42 +.61 +.78 Fundamental Global Franchise Fund (JHAM).6.8.12 Global Equity Fund (JHAM).1 Global Shareholder Yield Fund (Epoch) +.1 Growth Fund (Wellington) +.38 +.11 +.62 +.66 +1.15 Growth Stock Fund (Invesco).5 +.6.2.32.43 Small Cap Fund (Franklin Templeton).1.1.1 Small Company Fund (Dimensional).1.1.1 Strategic Equity Allocation Fund (JHAM) +.1 +.1.1.6.4 Value Equity Fund (JHAM).1.3.1.16 Value Fund (Franklin Templeton).57.56.75.92 1.36 n U.S. mid-cap Mid Cap Stock Fund (Wellington) +.1 +.3.3 Mid Value Fund (T. Rowe Price) +.1 +.3 +.8 +1.1 +1.37 U.S. Strategic Equity Allocation Mid Cap Sleeve (JHAM) +.4 +.2 Value Fund (Invesco).74 1.5 1.37 n Emerging-market Emerging Markets Equity Fund (JHAM).7.1 +.7 +.4 +.2 Emerging Markets Fund (Dimensional).6.1 +.5 +.2 +.13 Greater China Opportunities Fund (JHAM) +.4 n New Opportunities Fund (BW/DFA/GWK/INV) +.6 +.8 +.1 Small Cap Core Fund (JHAM) +.6 +.9 +.9 Small Cap Growth Fund (Wellington) +.7 +.5 +.8 +.8 +.1 Small Cap Value Fund (Wellington) +.8 +.11 +.1 1 +.12 1 +.13 Small Company Growth Fund (Invesco) +.6 +.8 +.8 +.1 Small Company Value Fund (T. Rowe Price) +.7 +.8 +.1 U.S. Strategic Equity Allocation Small Cap Sleeve (JHAM) +.3 +.1 n Multi-sector bond Global Income Fund (Stone Harbor).1.25.18.1 Short Duration Credit Opportunities Fund (Stone Harbor).1.67.58.25 1 1 Spectrum Income Fund (T. Rowe Price).1.2.4.3 Strategic Income Opportunities Fund (JHAM).2.3.7.6 n Intermediate-term bond Bond Fund (JHAM) +.1 +.43 +.75 +.41 Core Bond Fund (Wells Capital).1 1 +.4 1 +.23 1 +.15 Total Return Fund (PIMCO).2 +.38 +.5 +.3 n Bank loan Floating Rate Income Fund (WAMCO).2 1.9 1.79.19 n High-yield bond High Yield Fund (JHAM).1.1 High Yield Fund (WAMCO).1.1 U.S. High Yield Bond Fund (Wells Capital).1 n Global bond Asia Pacific Total Return Bond Fund (JHAM).1.2.2.1 Global Bond Fund (PIMCO) 1.69 1.58 1.52.1 Global Short Duration Credit Fund (JHAM).25.18.9 n Emerging-market debt Emerging Markets Debt Fund (JHAM).1 1 +.73 1 +.57 +.21 n Inflation-protected bond Real Return Bond Fund (PIMCO) 1 +.68 1 +.56 +.46.1 n Short-term bond Short Term Government Income Fund (JHAM).1 n Sector Financial Industries Fund (JHAM).1.1 Global Real Estate Fund (DeAWM).1.1.1 Health Sciences Fund (T. Rowe Price) +.65 +.65 +.82 1 Natural Resources Fund (Jennison).1.1 +.1 +.3 +.9 Real Estate Equity Fund (T. Rowe Price) +.1.1 Science & Technology Fund (Allianz/T. Rowe Price).37.34.18 n Absolute return Absolute Return Currency Fund (First Quadrant) +.27 +.17.7.5.3 Global Absolute Return Strategies Fund (Standard Life).18.12.36.35 Global Focused Strategies Fund (Standard Life).1 n Thematic Enduring Equity Fund (Wellington) +.3 Technical Opportunities Fund (Wellington).14.3.24 n Long/short Seaport Fund (Wellington).4.7.1 Holdings added 1 1 2 1 1 Holdings removed 1 1 1 Position size changes > 1 bps 7 16 24 2 18 Holding(s) added during the quarter. Holding(s) removed during the quarter. Source: John Hancock Investments, as of 9/3/17. This table shows allocation changes from 6/3/17 through 9/3/17. These figures should not be considered a prediction of the future allocations among asset classes. A s current allocation may be different from the allocation portrayed and may change from time to time in the future. Characteristics are expressed as a percentage of net assets and exclude cash and cash equivalents. 1 11
John Hancock Investments A trusted brand John Hancock Investments is a premier asset manager representing one of America s most trusted brands, with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity. A better way to invest We serve investors globally through a unique multimanager approach: We search the world to find proven teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Results for investors Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world s best managers, along with strong risk-adjusted returns across asset classes. The s performance depends on the advisor s skill in determining asset class allocations, the mix of underlying funds, and the performance of those underlying funds. The is subject to the same risks as the underlying funds and exchange-traded funds in which it invests: Stocks and can decline due to adverse issuer, market, regulatory, or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; the securities of small companies are subject to higher volatility than those of larger, more established companies; and high-yield are subject to additional risks, such as increased risk of default. Liquiditythe extent to which a security may be sold or a derivative position closed without negatively affecting its market value, if at allmay be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Please see the s prospectus for additional risks. This material is not intended to be, nor shall it be interpreted or construed as, a recommendation or providing advice, impartial or otherwise. John Hancock Investments and its representatives and affiliates may receive compensation derived from the sale of and/or from any investment made in its products and services. Request a prospectus or summary prospectus from your financial advisor, by visiting jhinvestments.com, or by calling us at 8-225-5291. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should consider carefully before investing. Connect with John Hancock Investments: @JH_Investments jhinvestmentsblog.com John Hancock Funds, LLC Member FINRA, SIPC 61 Congress Street Boston, MA 221-285 8-225-5291 jhinvestments.com NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY. MF416957 PIAABR 11/17