Prospectus
John
Hancock
Multi-Index
Preservation Portfolios
Asset
allocation
January
1, 2022
|
|
|
|
|
|
I |
R2 |
R4 |
R6 |
Multi-Index
2065 Preservation Portfolio |
JADAX |
JAANX |
JAAQX |
JAAUX |
Multi-Index
2060 Preservation Portfolio |
JTBLX |
JSATX |
JPORX |
JTFOX |
Multi-Index
2055 Preservation Portfolio |
JACIX |
JRIUX |
JRIVX |
JRIWX |
Multi-Index
2050 Preservation Portfolio |
JACQX |
JRINX |
JRIPX |
JRISX |
Multi-Index
2045 Preservation Portfolio |
JACUX |
JRVRX |
JRVPX |
JRVSX |
Multi-Index
2040 Preservation Portfolio |
JACVX |
JRRRX |
JRRPX |
JRRSX |
Multi-Index
2035 Preservation Portfolio |
JACWX |
JRYRX |
JRYPX |
JRYSX |
Multi-Index
2030 Preservation Portfolio |
JACYX |
JRHRX |
JRHPX |
JRHSX |
Multi-Index
2025 Preservation Portfolio |
JACZX |
JRERX |
JREPX |
JRESX |
Multi-Index
Income Preservation Portfolio |
JACKX |
JRFNX |
JRFPX |
JRFSX |
As with all
mutual funds, the Securities and Exchange Commission has not approved or
disapproved
these securities or passed upon the adequacy of this prospectus. Any
representation to the
contrary is a criminal offense.
|
|
|
Fund
summary |
|
The
summary section is a concise look at the investment objective,
fees and expenses, principal investment strategies,
principal risks, past performance, and investment
management. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
details |
|
More
about topics covered in the summary section, including
descriptions of the investment strategies and various
risk factors that investors should understand before
investing. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Your
account |
|
How
to place an order to buy, sell, or exchange shares, as
well as information about the business policies and any
distributions that may be paid.For
more information See
back cover |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
John
Hancock Multi-Index 2065 Preservation Portfolio
Investment
objective
To seek
high total return until the fund’s target retirement date, with a greater focus
on income as the target date approaches. Total return, commonly understood
as the combination of income and capital appreciation, includes interest,
capital gains, dividends, and distributions realized over a given period of
time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses4
|
|
|
|
|
Total
annual fund operating expenses5
|
|
|
|
|
Contractual
expense reimbursement6
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Service
plan fee” has been restated to reflect maximum allowable fees.
|
2 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
3 |
“Other
expenses” have been restated from fiscal year amounts to reflect current
fees and expenses.
|
4 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment
companies. |
5 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
6 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.37% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that time.
|
7 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022 unless
renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
49 |
90 |
64 |
39 |
3
years |
1,324 |
1,437 |
1,386 |
1,295 |
5
years |
2,569 |
2,741 |
2,669 |
2,525 |
10
years |
5,556 |
5,828 |
5,723 |
5,486 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During the
period from September 23, 2020 (commencement of operations) to August 31, 2021,
the fund’s portfolio
turnover rate was 54% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors expected to
retire around the year 2065.
The
managers of the fund allocate assets among the underlying funds according to an
asset allocation strategy that becomes increasingly conservative
over time. John Hancock Multi-Index 2065 Preservation Portfolio has a target
asset allocation of 82% of its assets in underlying funds that invest
primarily in equity securities. The fund will have a greater exposure to
underlying funds that invest primarily in equity securities than will a
John
Hancock Multi-Index Preservation Portfolio with a closer target date. To attempt
to reduce investment risk and volatility as retirement approaches,
the asset allocation strategy will change over time according to a predetermined
glide path shown in the following chart.
The
allocations reflected in the glide path are referred to as neutral because they
do not reflect active decisions made by the managers to produce an overweight
or an underweight position in a particular asset class. The fund has a target
allocation to underlying funds that invest in the broad asset classes of
equity and fixed-income securities but may also allocate its assets to
underlying funds that invest outside these asset classes to protect the
fund or
help it achieve its objective. For example, the fund may also allocate its
assets to underlying funds that invest in alternative and specialty asset
classes.
The investment advisor may change the target allocation without shareholder
approval if it believes such change would benefit the fund and its
shareholders. There is no guarantee that the managers will correctly predict the
market or economic conditions. There is no guarantee that the fund will
preserve either income or capital and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus 10%.
The fund is
designed for investors who anticipate reevaluating their retirement allocation
strategies at the target date. Under normal market conditions,
the fund expects to allocate 8% of its assets to equity underlying funds in its
designated retirement year and to maintain that static allocation
thereafter. This static allocation may be appropriate for some investors, but
others may wish to reallocate their investments at
retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market
securities, commodities, asset-backed securities, small-cap securities, and
below-investment-grade securities (i.e., junk bonds). The underlying
funds may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk,
obtaining efficient market exposure and/or enhancing investment
returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to
track an
index or group of indexes. Equity type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities (including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps, options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
equity securities than John Hancock Multi-Index Preservation Portfolios
with closer target dates, equity security risks are more prevalent in this fund
than in these other target-date funds. The fund’s
main risks are
listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions of these risks beginning
on page
66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different
from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk. In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even close to, during, or after the fund’s
designated retirement year.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
Performance
information is not shown because the fund has been in
operation for less than a full calendar year.
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team Managed
the fund since 2020 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation Managed
the fund since 2020 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
John
Hancock Multi-Index 2060 Preservation Portfolio
Investment
objective
To seek
high total return until the fund’s target retirement date, with a greater focus
on income as the target date approaches. Total return, commonly understood
as the combination of income and capital appreciation, includes interest,
capital gains, dividends, and distributions realized over a given period of
time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses4
|
|
|
|
|
Total
annual fund operating expenses5
|
|
|
|
|
Contractual
expense reimbursement6
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Service
plan fee” has been restated to reflect maximum allowable
fees. |
2 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
3 |
“Other
expenses” have been restated from fiscal year amounts to reflect current
fees and expenses.
|
4 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment companies.
|
5 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
6 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.37% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that time.
|
7 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022 unless
renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
49 |
90 |
64 |
39 |
3
years |
226 |
351 |
294 |
194 |
5
years |
417 |
633 |
543 |
362 |
10
years |
971 |
1,437 |
1,255 |
851 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During its most recent fiscal year, the fund’s portfolio
turnover rate was 19% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors expected to
retire around the year 2060.
The
managers of the fund allocate assets among the underlying funds according to an
asset allocation strategy that becomes increasingly conservative
over time. John Hancock Multi-Index 2060 Preservation Portfolio has a target
asset allocation of 82% of its assets in underlying funds that invest
primarily in equity securities. The fund will have a greater exposure to
underlying funds that invest primarily in equity securities than will a
John
Hancock Multi-Index Preservation Portfolio with a closer target date. To attempt
to reduce investment risk and volatility as retirement approaches,
the asset allocation strategy will change over time according to a predetermined
glide path shown in the following chart.
The
allocations reflected in the glide path are referred to as neutral because they
do not reflect active decisions made by the managers to produce an overweight
or an underweight position in a particular asset class. The fund has a target
allocation to underlying funds that invest in the broad asset classes of
equity and fixed-income securities but may also allocate its assets to
underlying funds that invest outside these asset classes to protect the
fund or
help it achieve its objective. For example, the fund may also allocate its
assets to underlying funds that invest in alternative and specialty asset
classes.
The investment advisor may change the target allocation without shareholder
approval if it believes such change would benefit the fund and its
shareholders. There is no guarantee that the managers will correctly predict the
market or economic conditions. There is no guarantee that the fund will
preserve either income or capital and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus 10%.
The fund is
designed for investors who anticipate reevaluating their retirement allocation
strategies at the target date. Under normal market conditions,
the fund expects to allocate 8% of its assets to equity underlying funds in its
designated retirement year and to maintain that static allocation
thereafter. This static allocation may be appropriate for some investors, but
others may wish to reallocate their investments at
retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market
securities, commodities, asset-backed securities, small-cap securities, and
below-investment-grade securities (i.e., junk bonds). The underlying
funds may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk,
obtaining efficient market exposure and/or enhancing investment
returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to track an
index or group of indexes. Equity type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities
(including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps, options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
equity securities than John Hancock Multi-Index Preservation Portfolios
with closer target dates, equity security risks are more prevalent in this fund
than in these other target-date funds. The fund’s
main risks are
listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions of these risks beginning
on page
66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk. In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even close to, during, or after the fund’s
designated retirement year.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
The John
Hancock 2060 Preservation Index is based on the fund’s asset allocation glide
path and will reflect a more conservative allocation over time.
This information shows how the fund’s performance compares against the returns
of similar investments.
Past
performance (before and after
taxes) does not indicate future results. All
figures assume dividend reinvestment. Performance information is updated daily,
monthly, and quarterly
and may be obtained at our website, jhinvestments.com, or by
calling 800-225-5291 between
8:30 A.M. and 5:00
P.M., Eastern
time, on most business
days.
A note
on performance
Class 1 and
Class I shares commenced operations on March 30,2016 and October 22, 2021,
respectively. Returns prior to Class I’s commencement date are
those of Class 1 shares. Returns for Class I shares would have been
substantially similar to returns of Class 1 shares because each share
class is
invested in the same portfolio of securities and returns would differ only to
the extent that expenses of the classes are different. To the extent
expenses of
a class would have been higher than expenses of Class 1 shares for the periods
shown, performance would have been lower.
Please note
that after-tax returns (shown for Class R4 shares
only) reflect
the highest individual federal marginal income-tax rate in effect as of the
date
provided and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class R41
1 Class R1,
the representative class in previous periods, ceased operations on October 23,
2020.
Year-to-date
total return. The fund’s
total return for the nine months ended September
30, 2021, was
8.56%.
Best
quarter:
2020,
Q2,
16.46%
Worst
quarter:
2020,
Q1,
-16.88%
|
|
|
Average
annual total returns (%)—as of 12/31/20
|
|
Since
inception
(03/30/16) |
Class
R4 (before
tax) |
|
|
after
tax on distributions |
|
|
after
tax on distributions, with sale |
|
|
Class
R2 |
|
|
Class
R6 |
|
|
Class
I |
|
|
S&P
Target Date To 2060 Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
John
Hancock 2060 Preservation Index (reflects no deduction for fees, expenses,
or taxes)* |
|
|
* |
Each
of the John Hancock Preservation Indices is a customized blended index
comprising some or all of the following component indices (ordered
alphabetically): Bloomberg
U.S.
Aggregate Bond Index, Bloomberg U.S.
Corporate Bond 1-5 Year Index, Bloomberg U.S.
Treasury TIPS 1-5 Year Index, ICE BofA Long U.S. Treasury Principal
STRIPS Index, ICE BofA U.S. High Yield Index, JP Morgan Emerging Markets
Bond Index Global, MSCI Emerging Markets Index, MSCI World Energy Index,
MSCI
World ex-USA Index, MSCI World Metals & Mining Index, Russell 2500
Index, S&P 500 Index, S&P Global ex-U.S. REIT Index, S&P
Global Infrastructure Index, S&P
U.S. REIT Index, and S&P/LSTA Leveraged Loan Index. Component index
weightings are adjusted semi-annually to
reflect changes in the fund’s target asset allocation
in accordance with the annual roll-down of the fund’s glide
path. |
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team Managed
the fund since 2018 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation Managed
the fund since 2016 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
John
Hancock Multi-Index 2055 Preservation Portfolio
Investment
objective
To seek
high total return until the fund’s target retirement date, with a greater focus
on income as the target date approaches. Total return, commonly understood
as the combination of income and capital appreciation, includes interest,
capital gains, dividends, and distributions realized over a given period of
time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses3
|
|
|
|
|
Total
annual fund operating expenses4
|
|
|
|
|
Contractual
expense reimbursement5
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Service
plan fee” has been restated to reflect maximum allowable
fees. |
2 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
3 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment
companies. |
4 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
5 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.38% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that
time. |
6 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022
unless renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
50 |
91 |
65 |
40 |
3
years |
214 |
340 |
283 |
182 |
5
years |
391 |
608 |
517 |
336 |
10
years |
906 |
1,374 |
1,192 |
786 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a
higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During its most recent fiscal year, the fund’s portfolio
turnover rate was 23% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors expected to
retire around the year 2055.
The
managers of the fund allocate assets among the underlying funds according to an
asset allocation strategy that becomes increasingly conservative
over time. John Hancock Multi-Index 2055 Preservation Portfolio has a target
asset allocation of 82% of its assets in underlying funds that invest
primarily in equity securities. The fund will have a greater exposure to
underlying funds that invest primarily in equity securities than will a
John
Hancock Multi-Index Preservation Portfolio with a closer target date. To attempt
to reduce investment risk and volatility as retirement approaches,
the asset allocation strategy will change over time according to a predetermined
glide path shown in the following chart.
The
allocations reflected in the glide path are referred to as neutral because they
do not reflect active decisions made by the managers to produce an overweight
or an underweight position in a particular asset class. The fund has a target
allocation to underlying funds that invest in the broad asset classes of
equity and fixed-income securities but may also allocate its assets to
underlying funds that invest outside these asset classes to protect the
fund or
help it achieve its objective. For example, the fund may also allocate its
assets to underlying funds that invest in alternative and specialty asset
classes.
The investment advisor may change the target allocation without shareholder
approval if it believes such change would benefit the fund and its
shareholders. There is no guarantee that the managers will correctly predict the
market or economic conditions. There is no guarantee that the fund will
preserve either income or capital and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus 10%.
The fund is
designed for investors who anticipate reevaluating their retirement allocation
strategies at the target date. Under normal market conditions,
the fund expects to allocate 8% of its assets to equity underlying funds in its
designated retirement year and to maintain that static allocation
thereafter. This static allocation may be appropriate for some investors, but
others may wish to reallocate their investments at
retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market
securities, commodities, asset-backed securities, small-cap securities, and
below-investment-grade securities (i.e., junk bonds). The underlying
funds may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk,
obtaining efficient market exposure and/or enhancing investment
returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to track an
index or group of indexes. Equity type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities (including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps,
options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
equity securities than John Hancock Multi-Index Preservation Portfolios
with closer target dates, equity security risks are more prevalent in this fund
than in these other target-date funds. The fund’s
main risks are
listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions of these risks beginning
on page
66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk.
In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even close to, during, or after the fund’s
designated retirement year.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
The John
Hancock 2055 Preservation Index is based on the fund’s asset allocation glide
path and will reflect a more conservative allocation over time.
This information shows how the fund’s performance compares against the returns
of similar investments.
Past
performance (before and after
taxes) does not indicate future results. All
figures assume dividend reinvestment. Performance information is updated daily,
monthly, and quarterly
and may be obtained at our website, jhinvestments.com, or by
calling 800-225-5291 between
8:30 A.M. and 5:00
P.M., Eastern
time, on most business
days.
A note
on performance
Class 1 and
Class I shares were first offered on March 26, 2014 and October 22, 2021,
respectively. Returns prior to Class I commencement date are those of
Class 1 shares. Returns for Class I shares would have been substantially similar
to returns of Class 1 shares because each share class is invested in
the same portfolio of securities and returns would differ only to the extent
that expenses of the classes are different. To the extent expenses of
a class would have been higher than expenses of Class 1 shares for the periods
shown, performance would have been lower.
Please note
that after-tax returns (shown for Class R4 shares
only) reflect
the highest individual federal marginal income-tax rate in effect as of the
date
provided and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class R41
1 Class R1,
the representative class in previous periods, ceased operations on October 23,
2020.
Year-to-date
total return. The fund’s
total return for the nine months ended September
30, 2021, was
8.58%.
Best
quarter:
2020,
Q2,
16.42%
Worst
quarter:
2020,
Q1,
-16.82%
|
|
|
|
Average
annual total returns (%)—as of 12/31/20
|
|
|
Since
inception
(03/26/14) |
Class
R4 (before
tax) |
|
|
|
after
tax on distributions |
|
|
|
after
tax on distributions, with sale |
|
|
|
Class
R2 |
|
|
|
Class
R6 |
|
|
|
Class
I |
|
|
|
S&P
Target Date To 2055 Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
John
Hancock 2055 Preservation Index (reflects no deduction for fees, expenses,
or taxes)* |
|
|
|
* |
Each
of the John Hancock Preservation Indices is a customized blended index
comprising some or all of the following component indices (ordered
alphabetically): Bloomberg
U.S.
Aggregate Bond Index, Bloomberg U.S.
Corporate Bond 1-5 Year Index, Bloomberg U.S.
Treasury TIPS 1-5 Year Index, ICE BofA Long U.S. Treasury Principal
STRIPS Index, ICE BofA U.S. High Yield Index, JP Morgan Emerging Markets
Bond Index Global, MSCI Emerging Markets Index, MSCI World Energy Index,
MSCI
World ex-USA Index, MSCI World Metals & Mining Index, Russell 2500
Index, S&P 500 Index, S&P Global ex-U.S. REIT Index, S&P
Global Infrastructure Index, S&P
U.S. REIT Index, and S&P/LSTA Leveraged Loan Index. Component index
weightings are adjusted semi-annually to
reflect changes in the fund’s target asset allocation
in accordance with the annual roll-down of the fund’s glide
path. |
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team
Managed
the fund since 2018 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation
Managed
the fund since 2014 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
John
Hancock Multi-Index 2050 Preservation Portfolio
Investment
objective
To seek
high total return until the fund’s target retirement date, with a greater focus
on income as the target date approaches. Total return, commonly understood
as the combination of income and capital appreciation, includes interest,
capital gains, dividends, and distributions realized over a given period of
time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses2
|
|
|
|
|
Total
annual fund operating expenses3
|
|
|
|
|
Contractual
expense reimbursement4
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
2 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment
companies. |
3 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
4 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.38% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that
time. |
5 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022
unless renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
50 |
91 |
65 |
40 |
3
years |
209 |
335 |
278 |
178 |
5
years |
382 |
599 |
509 |
327 |
10
years |
884 |
1,353 |
1,170 |
763 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During its most recent fiscal year, the fund’s portfolio
turnover rate was 20% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors expected to
retire around the year 2050.
The
managers of the fund allocate assets among the underlying funds according to an
asset allocation strategy that becomes increasingly conservative
over time. John Hancock Multi-Index 2050 Preservation Portfolio has a target
asset allocation of 82% of its assets in underlying funds that invest
primarily in equity securities. The fund will have a greater exposure to
underlying funds that invest primarily in equity securities than will a
John
Hancock Multi-Index Preservation Portfolio with a closer target date. To attempt
to reduce investment risk and volatility as retirement approaches,
the asset allocation strategy will change over time according to a predetermined
glide path shown in the following chart.
The
allocations reflected in the glide path are referred to as neutral because they
do not reflect active decisions made by the managers to produce an overweight
or an underweight position in a particular asset class. The fund has a target
allocation to underlying funds that invest in the broad asset classes of
equity and fixed-income securities but may also allocate its assets to
underlying funds that invest outside these asset classes to protect the
fund or
help it achieve its objective. For example, the fund may also allocate its
assets to underlying funds that invest in alternative and specialty asset
classes.
The investment advisor may change the target allocation without shareholder
approval if it believes such change would benefit the fund and its
shareholders. There is no guarantee that the managers will correctly predict the
market or economic conditions. There is no guarantee that the fund will
preserve either income or capital and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus 10%.
The fund is
designed for investors who anticipate reevaluating their retirement allocation
strategies at the target date. Under normal market conditions,
the fund expects to allocate 8% of its assets to equity underlying funds in its
designated retirement year and to maintain that static allocation
thereafter. This static allocation may be appropriate for some investors, but
others may wish to reallocate their investments at
retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market
securities, commodities, asset-backed securities, small-cap securities, and
below-investment-grade securities (i.e., junk bonds). The underlying
funds may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk,
obtaining efficient market exposure and/or enhancing investment
returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to track an
index or group of indexes. Equity type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities (including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps, options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may
include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
equity securities than John Hancock Multi-Index Preservation Portfolios
with closer target dates, equity security risks are more prevalent in this fund
than in these other target-date funds. The fund’s
main risks are
listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions of these risks beginning
on page
66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk.
In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even close to, during, or after the fund’s
designated retirement year.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
The John
Hancock 2050 Preservation Index is based on the fund’s asset allocation glide
path and will reflect a more conservative allocation over time.
This information shows how the fund’s performance compares against the returns
of similar investments.
Past
performance (before and after
taxes) does not indicate future results. All
figures assume dividend reinvestment. Performance information is updated daily,
monthly, and quarterly
and may be obtained at our website, jhinvestments.com, or by
calling 800-225-5291 between
8:30 A.M. and 5:00
P.M., Eastern
time, on most business
days.
A note
on performance
Class 1 and
Class R4 shares commenced operations on April 29, 2011, and May 1, 2012,
respectively. Class R2 and Class R6 shares commenced operations
on September 4, 2012. Class I
shares commenced operations on October 22, 2021. Returns
shown prior to a class’s commencement date are those
of Class 1 shares. Returns for Class I, Class
R2, Class
R4, and Class R6 shares would have been substantially similar to returns of
Class 1 shares because
each share class is invested in the same portfolio of securities and returns
would differ only to the extent that expenses of the classes are different.
To the extent expenses of a class would have been higher than expenses of Class
1 shares for the periods shown, performance would have been
lower.
Please note
that after-tax returns (shown for Class R4 shares
only) reflect
the highest individual federal marginal income-tax rate in effect as of the
date
provided and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class R41
1 Class R1,
the representative class in previous periods, ceased operations on October 23,
2020.
Year-to-date
total return. The fund’s
total return for the nine months ended September
30, 2021, was
8.58%.
Best
quarter:
2020,
Q2,
16.40%
Worst
quarter:
2020,
Q1,
-16.81%
|
|
|
|
Average
annual total returns (%)—as of 12/31/20
|
|
|
Since
inception
(04/29/11) |
Class
R4 (before
tax) |
|
|
|
after
tax on distributions |
|
|
|
after
tax on distributions, with sale |
|
|
|
Class
R2 |
|
|
|
Class
R6 |
|
|
|
Class
I |
|
|
|
S&P
Target Date To 2050 Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
John
Hancock 2050 Preservation Index (reflects no deduction for fees, expenses,
or taxes)* |
|
|
|
* |
Each
of the John Hancock Preservation Indices is a customized blended index
comprising some or all of the following component indices (ordered
alphabetically): Bloomberg
U.S.
Aggregate Bond Index, Bloomberg U.S.
Corporate Bond 1-5 Year Index, Bloomberg U.S.
Treasury TIPS 1-5 Year Index, ICE BofA Long U.S. Treasury Principal
STRIPS Index, ICE BofA U.S. High Yield Index, JP Morgan Emerging Markets
Bond Index Global, MSCI Emerging Markets Index, MSCI World Energy Index,
MSCI
World ex-USA Index, MSCI World Metals & Mining Index, Russell 2500
Index, S&P 500 Index, S&P Global ex-U.S. REIT Index, S&P
Global Infrastructure Index, S&P
U.S. REIT Index, and S&P/LSTA Leveraged Loan Index. Component index
weightings are adjusted semi-annually to
reflect changes in the fund’s target asset allocation
in accordance with the annual roll-down of the fund’s glide
path. |
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team
Managed
the fund since 2018 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation
Managed
the fund since 2013 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
John
Hancock Multi-Index 2045 Preservation Portfolio
Investment
objective
To seek
high total return until the fund’s target retirement date, with a greater focus
on income as the target date approaches. Total return, commonly understood
as the combination of income and capital appreciation, includes interest,
capital gains, dividends, and distributions realized over a given period of
time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses4
|
|
|
|
|
Total
annual fund operating expenses5
|
|
|
|
|
Contractual
expense reimbursement6
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Service
plan fee” has been restated to reflect maximum allowable
fees. |
2 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
3 |
“Other
expenses” have been restated from fiscal year amounts to reflect current
fees and expenses.
|
4 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment companies.
|
5 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
6 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.37% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that time.
|
7 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022 unless
renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
49 |
90 |
64 |
39 |
3
years |
208 |
334 |
277 |
177 |
5
years |
381 |
598 |
508 |
326 |
10
years |
883 |
1,352 |
1,169 |
763 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During its most recent fiscal year, the fund’s portfolio
turnover rate was 21% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors expected to
retire around the year 2045.
The
managers of the fund allocate assets among the underlying funds according to an
asset allocation strategy that becomes increasingly conservative
over time. John Hancock Multi-Index 2045 Preservation Portfolio has a target
asset allocation of 79% of its assets in underlying funds that invest
primarily in equity securities. The fund will have a greater exposure to
underlying funds that invest primarily in equity securities than will a
John
Hancock Multi-Index Preservation Portfolio with a closer target date. To attempt
to reduce investment risk and volatility as retirement approaches,
the asset allocation strategy will change over time according to a predetermined
glide path shown in the following chart.
The
allocations reflected in the glide path are referred to as neutral because they
do not reflect active decisions made by the managers to produce an overweight
or an underweight position in a particular asset class. The fund has a target
allocation to underlying funds that invest in the broad asset classes of
equity and fixed-income securities but may also allocate its assets to
underlying funds that invest outside these asset classes to protect the
fund or
help it achieve its objective. For example, the fund may also allocate its
assets to underlying funds that invest in alternative and specialty asset
classes.
The investment advisor may change the target allocation without shareholder
approval if it believes such change would benefit the fund and its
shareholders. There is no guarantee that the managers will correctly predict the
market or economic conditions. There is no guarantee that the fund will
preserve either income or capital and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus 10%.
The fund is
designed for investors who anticipate reevaluating their retirement allocation
strategies at the target date. Under normal market conditions,
the fund expects to allocate 8% of its assets to equity underlying funds in its
designated retirement year and to maintain that static allocation
thereafter. This static allocation may be appropriate for some investors, but
others may wish to reallocate their investments at
retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market
securities, commodities, asset-backed securities, small-cap securities, and
below-investment-grade securities (i.e., junk bonds). The underlying
funds may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk,
obtaining efficient market exposure and/or enhancing investment
returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to track an
index or group of indexes. Equity type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities
(including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps, options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
equity securities than John Hancock Multi-Index Preservation Portfolios
with closer target dates, equity security risks are more prevalent in this fund
than in these other target-date funds. The fund’s
main risks are
listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions of these risks beginning
on page
66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk. In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even close to, during, or after the fund’s
designated retirement year.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
The John
Hancock 2045 Preservation Index is based on the fund’s asset allocation glide
path and will reflect a more conservative allocation over time.
This information shows how the fund’s performance compares against the returns
of similar investments.
Past
performance (before and after
taxes) does not indicate future results. All
figures assume dividend reinvestment. Performance information is updated daily,
monthly, and quarterly
and may be obtained at our website, jhinvestments.com, or by
calling 800-225-5291 between
8:30 A.M. and 5:00
P.M., Eastern
time, on most business
days.
A note
on performance
Class 1 and
Class R4 shares commenced operations on April 30, 2010, and May 1, 2012,
respectively. Class R2 and Class R6 shares commenced operations
on September 4, 2012. Class I
shares commenced operations on October 22, 2021. Returns
shown prior to a class’s commencement date are those
of Class 1 shares. Returns for Class I, Class
R2, Class
R4, and Class R6 shares would have been substantially similar to returns of
Class 1 shares
because each share class is invested in the same portfolio of securities and
returns would differ only to the extent that expenses of the classes
are
different. To the extent expenses of a class would have been higher than
expenses of Class 1 shares for the periods shown, performance would have been
lower.
Please note
that after-tax returns (shown for Class R4 shares
only) reflect
the highest individual federal marginal income-tax rate in effect as of the
date
provided and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class R41
1 Class R1,
the representative class in previous periods, ceased operations on October 23,
2020.
Year-to-date
total return. The fund’s
total return for the nine months ended September
30, 2021, was
8.45%.
Best
quarter:
2020,
Q2,
16.22%
Worst
quarter:
2020,
Q1,
-16.63%
|
|
|
|
Average
annual total returns (%)—as of 12/31/20
|
|
|
|
Class
R4 (before
tax) |
|
|
|
after
tax on distributions |
|
|
|
after
tax on distributions, with sale |
|
|
|
Class
R2 |
|
|
|
Class
R6 |
|
|
|
Class
I |
|
|
|
S&P
Target Date To 2045 Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
John
Hancock 2045 Preservation Index (reflects no deduction for fees, expenses,
or taxes)* |
|
|
|
* |
Each
of the John Hancock Preservation Indices is a customized blended index
comprising some or all of the following component indices (ordered
alphabetically): Bloomberg
U.S.
Aggregate Bond Index, Bloomberg U.S.
Corporate Bond 1-5 Year Index, Bloomberg U.S.
Treasury TIPS 1-5 Year Index, ICE BofA Long U.S. Treasury Principal
STRIPS Index, ICE BofA U.S. High Yield Index, JP Morgan Emerging Markets
Bond Index Global, MSCI Emerging Markets Index, MSCI World Energy Index,
MSCI
World ex-USA Index, MSCI World Metals & Mining Index, Russell 2500
Index, S&P 500 Index, S&P Global ex-U.S. REIT Index, S&P
Global Infrastructure Index, S&P
U.S. REIT Index, and S&P/LSTA Leveraged Loan Index. Component index
weightings are adjusted semi-annually to
reflect changes in the fund’s target asset allocation
in accordance with the annual roll-down of the fund’s glide
path. |
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team
Managed
the fund since 2018 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation
Managed
the fund since 2013 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
John
Hancock Multi-Index 2040 Preservation Portfolio
Investment
objective
To seek
high total return until the fund’s target retirement date, with a greater focus
on income as the target date approaches. Total return, commonly understood
as the combination of income and capital appreciation, includes interest,
capital gains, dividends, and distributions realized over a given period of
time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses3
|
|
|
|
|
Total
annual fund operating expenses4
|
|
|
|
|
Contractual
expense reimbursement5
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Service
plan fee” has been restated to reflect maximum allowable
fees. |
2 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
3 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment companies.
|
4 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
5 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.36% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that time.
|
6 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022 unless
renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
48 |
89 |
63 |
38 |
3
years |
205 |
331 |
274 |
173 |
5
years |
376 |
593 |
502 |
321 |
10
years |
871 |
1,341 |
1,158 |
750 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a
higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During its most recent fiscal year, the fund’s portfolio
turnover rate was 24% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors expected to
retire around the year 2040.
The
managers of the fund allocate assets among the underlying funds according to an
asset allocation strategy that becomes increasingly conservative
over time. John Hancock Multi-Index 2040 Preservation Portfolio has a target
asset allocation of 73% of its assets in underlying funds that invest
primarily in equity securities. The fund will have a greater exposure to
underlying funds that invest primarily in equity securities than will a
John
Hancock Multi-Index Preservation Portfolio with a closer target date. To attempt
to reduce investment risk and volatility as retirement approaches,
the asset allocation strategy will change over time according to a predetermined
glide path shown in the following chart.
The
allocations reflected in the glide path are referred to as neutral because they
do not reflect active decisions made by the managers to produce an overweight
or an underweight position in a particular asset class. The fund has a target
allocation to underlying funds that invest in the broad asset classes of
equity and fixed-income securities but may also allocate its assets to
underlying funds that invest outside these asset classes to protect the
fund or
help it achieve its objective. For example, the fund may also allocate its
assets to underlying funds that invest in alternative and specialty asset
classes.
The investment advisor may change the target allocation without shareholder
approval if it believes such change would benefit the fund and its
shareholders. There is no guarantee that the managers will correctly predict the
market or economic conditions. There is no guarantee that the fund will
preserve either income or capital and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus 10%.
The fund is
designed for investors who anticipate reevaluating their retirement allocation
strategies at the target date. Under normal market conditions,
the fund expects to allocate 8% of its assets to equity underlying funds in its
designated retirement year and to maintain that static allocation
thereafter. This static allocation may be appropriate for some investors, but
others may wish to reallocate their investments at
retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market
securities, commodities, asset-backed securities, small-cap securities, and
below-investment-grade securities (i.e., junk bonds). The underlying
funds may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk,
obtaining efficient market exposure and/or enhancing investment
returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to track an
index or group of indexes. Equity type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities (including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps,
options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
equity securities than John Hancock Multi-Index Preservation Portfolios
with closer target dates, equity security risks are more prevalent in this fund
than in these other target-date funds. The fund’s
main risks are
listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions of these risks beginning
on page
66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk.
In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even close to, during, or after the fund’s
designated retirement year.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
The John
Hancock 2040 Preservation Index is based on the fund’s asset allocation glide
path and will reflect a more conservative allocation over time.
This information shows how the fund’s performance compares against the returns
of similar investments.
Past
performance (before and after
taxes) does not indicate future results. All
figures assume dividend reinvestment. Performance information is updated daily,
monthly, and quarterly
and may be obtained at our website, jhinvestments.com, or by
calling 800-225-5291 between
8:30 A.M. and 5:00
P.M., Eastern
time, on most business
days.
A note
on performance
Class 1 and
Class R4 shares commenced operations on April 30, 2010, and May 1, 2012,
respectively. Class R2 and Class R6 shares commenced operations
on September 4, 2012. Class I
shares commenced operations on October 22, 2021. Returns
shown prior to a class’s commencement date are those
of Class 1 shares. Returns for Class I, Class
R2, Class
R4, and Class R6 shares would have been substantially similar to returns of
Class 1 shares
because each share class is invested in the same portfolio of securities and
returns would differ only to the extent that expenses of the classes
are
different. To the extent expenses of a class would have been higher than
expenses of Class 1 shares for the periods shown, performance would have been
lower.
Please note
that after-tax returns (shown for Class R4 shares
only) reflect
the highest individual federal marginal income-tax rate in effect as of the
date
provided and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class R41
1 Class R1,
the representative class in previous periods, ceased operations on October 23,
2020.
Year-to-date
total return. The fund’s
total return for the nine months ended September
30, 2021, was
7.72%.
Best
quarter:
2020,
Q2,
15.50%
Worst
quarter:
2020,
Q1,
-15.68%
|
|
|
|
Average
annual total returns (%)—as of 12/31/20
|
|
|
|
Class
R4 (before
tax) |
|
|
|
after
tax on distributions |
|
|
|
after
tax on distributions, with sale |
|
|
|
Class
R2 |
|
|
|
Class
R6 |
|
|
|
Class
I |
|
|
|
S&P
Target Date To 2040 Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
John
Hancock 2040 Preservation Index (reflects no deduction for fees, expenses,
or taxes)* |
|
|
|
* |
Each
of the John Hancock Preservation Indices is a customized blended index
comprising some or all of the following component indices (ordered
alphabetically): Bloomberg
U.S.
Aggregate Bond Index, Bloomberg U.S.
Corporate Bond 1-5 Year Index, Bloomberg U.S.
Treasury TIPS 1-5 Year Index, ICE BofA Long U.S. Treasury Principal
STRIPS Index, ICE BofA U.S. High Yield Index, JP Morgan Emerging Markets
Bond Index Global, MSCI Emerging Markets Index, MSCI World Energy Index,
MSCI
World ex-USA Index, MSCI World Metals & Mining Index, Russell 2500
Index, S&P 500 Index, S&P Global ex-U.S. REIT Index, S&P
Global Infrastructure Index, S&P
U.S. REIT Index, and S&P/LSTA Leveraged Loan Index. Component index
weightings are adjusted semi-annually to
reflect changes in the fund’s target asset allocation
in accordance with the annual roll-down of the fund’s glide
path. |
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team
Managed
the fund since 2018 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation
Managed
the fund since 2013 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
John
Hancock Multi-Index 2035 Preservation Portfolio
Investment
objective
To seek
high total return until the fund’s target retirement date, with a greater focus
on income as the target date approaches. Total return, commonly understood
as the combination of income and capital appreciation, includes interest,
capital gains, dividends, and distributions realized over a given period of
time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses3
|
|
|
|
|
Total
annual fund operating expenses4
|
|
|
|
|
Contractual
expense reimbursement5
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Service
plan fee” has been restated to reflect maximum allowable
fees. |
2 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
3 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment
companies. |
4 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
5 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.36% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that
time. |
6 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022
unless renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
48 |
89 |
63 |
38 |
3
years |
205 |
331 |
274 |
173 |
5
years |
376 |
593 |
502 |
321 |
10
years |
871 |
1,341 |
1,158 |
750 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a
higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During its most recent fiscal year, the fund’s portfolio
turnover rate was 26% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors expected to
retire around the year 2035.
The
managers of the fund allocate assets among the underlying funds according to an
asset allocation strategy that becomes increasingly conservative
over time. John Hancock Multi-Index 2035 Preservation Portfolio has a target
asset allocation of 62% of its assets in underlying funds that invest
primarily in equity securities. The fund will have a greater exposure to
underlying funds that invest primarily in equity securities than will a
John
Hancock Multi-Index Preservation Portfolio with a closer target date. To attempt
to reduce investment risk and volatility as retirement approaches,
the asset allocation strategy will change over time according to a predetermined
glide path shown in the following chart.
The
allocations reflected in the glide path are referred to as neutral because they
do not reflect active decisions made by the managers to produce an overweight
or an underweight position in a particular asset class. The fund has a target
allocation to underlying funds that invest in the broad asset classes of
equity and fixed-income securities but may also allocate its assets to
underlying funds that invest outside these asset classes to protect the
fund or
help it achieve its objective. For example, the fund may also allocate its
assets to underlying funds that invest in alternative and specialty asset
classes.
The investment advisor may change the target allocation without shareholder
approval if it believes such change would benefit the fund and its
shareholders. There is no guarantee that the managers will correctly predict the
market or economic conditions. There is no guarantee that the fund will
preserve either income or capital and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus 10%.
The fund is
designed for investors who anticipate reevaluating their retirement allocation
strategies at the target date. Under normal market conditions,
the fund expects to allocate 8% of its assets to equity underlying funds in its
designated retirement year and to maintain that static allocation
thereafter. This static allocation may be appropriate for some investors, but
others may wish to reallocate their investments at
retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market
securities, commodities, asset-backed securities, small-cap securities, and
below-investment-grade securities (i.e., junk bonds). The underlying
funds may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk,
obtaining efficient market exposure and/or enhancing investment
returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to track an
index or group of indexes. Equity type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities (including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps,
options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
equity securities than John Hancock Multi-Index Preservation Portfolios
with closer target dates, equity security risks are more prevalent in this fund
than in these other target-date funds. The fund’s
main risks are
listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions of these risks beginning
on page
66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk.
In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even close to, during, or after the fund’s
designated retirement year.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
The John
Hancock 2035 Preservation Index is based on the fund’s asset allocation glide
path and will reflect a more conservative allocation over time.
This information shows how the fund’s performance compares against the returns
of similar investments.
Past
performance (before and after
taxes) does not indicate future results. All
figures assume dividend reinvestment. Performance information is updated daily,
monthly, and quarterly
and may be obtained at our website, jhinvestments.com, or by
calling 800-225-5291 between
8:30 A.M. and 5:00
P.M., Eastern
time, on most business
days.
A note
on performance
Class 1 and
Class R4 shares commenced operations on April 30, 2010, and May 1, 2012,
respectively. Class R2 and Class R6 shares commenced operations
on September 4, 2012. Class I
shares commenced operations on October 22, 2021. Returns
shown prior to a class’s commencement date are those
of Class 1 shares. Returns for Class I, Class
R2, Class
R4, and Class R6 shares would have been substantially similar to returns of
Class 1 shares
because each share class is invested in the same portfolio of securities and
returns would differ only to the extent that expenses of the classes
are
different. To the extent expenses of a class would have been higher than
expenses of Class 1 shares for the periods shown, performance would have been
lower.
Please note
that after-tax returns (shown for Class R4 shares
only) reflect
the highest individual federal marginal income-tax rate in effect as of the
date
provided and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class R41
1 Class R1,
the representative class in previous periods, ceased operations on October 23,
2020.
Year-to-date
total return. The fund’s
total return for the nine months ended September
30, 2021, was
6.63%.
Best
quarter:
2020,
Q2,
14.41%
Worst
quarter:
2020,
Q1,
-14.05%
|
|
|
|
Average
annual total returns (%)—as of 12/31/20
|
|
|
|
Class
R4 (before
tax) |
|
|
|
after
tax on distributions |
|
|
|
after
tax on distributions, with sale |
|
|
|
Class
R2 |
|
|
|
Class
R6 |
|
|
|
Class
I |
|
|
|
S&P
Target Date To 2035 Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
John
Hancock 2035 Preservation Index (reflects no deduction for fees, expenses,
or taxes)* |
|
|
|
* |
Each
of the John Hancock Preservation Indices is a customized blended index
comprising some or all of the following component indices (ordered
alphabetically): Bloomberg
U.S.
Aggregate Bond Index, Bloomberg U.S.
Corporate Bond 1-5 Year Index, Bloomberg U.S.
Treasury TIPS 1-5 Year Index, ICE BofA Long U.S. Treasury Principal
STRIPS Index, ICE BofA U.S. High Yield Index, JP Morgan Emerging Markets
Bond Index Global, MSCI Emerging Markets Index, MSCI World Energy Index,
MSCI
World ex-USA Index, MSCI World Metals & Mining Index, Russell 2500
Index, S&P 500 Index, S&P Global ex-U.S. REIT Index, S&P
Global Infrastructure Index, S&P
U.S. REIT Index, and S&P/LSTA Leveraged Loan Index. Component index
weightings are adjusted semi-annually to
reflect changes in the fund’s target asset allocation
in accordance with the annual roll-down of the fund’s glide
path. |
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team
Managed
the fund since 2018 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation
Managed
the fund since 2013 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
John
Hancock Multi-Index 2030 Preservation Portfolio
Investment
objective
To seek
high total return until the fund’s target retirement date, with a greater focus
on income as the target date approaches. Total return, commonly understood
as the combination of income and capital appreciation, includes interest,
capital gains, dividends, and distributions realized over a given period of
time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
of other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses3
|
|
|
|
|
Total
annual fund operating expenses4
|
|
|
|
|
Contractual
expense reimbursement5
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Service
plan fee” has been restated to reflect maximum allowable
fees. |
2 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
3 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment companies.
|
4 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
5 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.36% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that time.
|
6 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022 unless
renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
48 |
89 |
63 |
38 |
3
years |
205 |
331 |
274 |
173 |
5
years |
376 |
593 |
502 |
321 |
10
years |
871 |
1,341 |
1,158 |
750 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a
higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During its most recent fiscal year, the fund’s portfolio
turnover rate was 30% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors expected to
retire around the year 2030.
The
managers of the fund allocate assets among the underlying funds according to an
asset allocation strategy that becomes increasingly conservative
over time. John Hancock Multi-Index 2030 Preservation Portfolio has a target
asset allocation of 45% of its assets in underlying funds that invest
primarily in equity securities. The fund will have a greater exposure to
underlying funds that invest primarily in fixed-income securities than
will a John
Hancock Multi-Index Preservation Portfolio with a more distant target date. To
attempt to reduce investment risk and volatility as retirement approaches,
the asset allocation strategy will change over time according to a predetermined
glide path shown in the following chart.
The
allocations reflected in the glide path are referred to as neutral because they
do not reflect active decisions made by the managers to produce an overweight
or an underweight position in a particular asset class. The fund has a target
allocation to underlying funds that invest in the broad asset classes of
equity and fixed-income securities but may also allocate its assets to
underlying funds that invest outside these asset classes to protect the
fund or
help it achieve its objective. For example, the fund may also allocate its
assets to underlying funds that invest in alternative and specialty asset
classes.
The investment advisor may change the target allocation without shareholder
approval if it believes such change would benefit the fund and its
shareholders. There is no guarantee that the managers will correctly predict the
market or economic conditions. There is no guarantee that the fund will
preserve either income or capital and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus 10%.
The fund is
designed for investors who anticipate reevaluating their retirement allocation
strategies at the target date. Under normal market conditions,
the fund expects to allocate 8% of its assets to equity underlying funds in its
designated retirement year and to maintain that static allocation
thereafter. This static allocation may be appropriate for some investors, but
others may wish to reallocate their investments at
retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market
securities, commodities, asset-backed securities, small-cap securities, and
below-investment-grade securities (i.e., junk bonds). The underlying
funds may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk,
obtaining efficient market exposure and/or enhancing investment
returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to track an
index or group of indexes. Equity type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities (including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps,
options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
fixed-income securities than John Hancock Multi-Index Preservation
Portfolios with more distant target dates, fixed-income securities risks are
more prevalent in this fund than in these other target-date funds.
The fund’s
main risks are listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions
of these risks beginning on page 66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk.
In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even close to, during, or after the fund’s
designated retirement year.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
The John
Hancock 2030 Preservation Index is based on the fund’s asset allocation glide
path and will reflect a more conservative allocation over time.
This information shows how the fund’s performance compares against the returns
of similar investments.
Past
performance (before and after
taxes) does not indicate future results. All
figures assume dividend reinvestment. Performance information is updated daily,
monthly, and quarterly
and may be obtained at our website, jhinvestments.com, or by
calling 800-225-5291 between
8:30 A.M. and 5:00
P.M., Eastern
time, on most business
days.
A note
on performance
Class 1 and
Class R4 shares commenced operations on April 30, 2010, and May 1, 2012,
respectively. Class R2 and Class R6 shares commenced operations
on September 4, 2012. Class I
shares commenced operations on October 22, 2021. Returns
shown prior to a class’s commencement date are those
of Class 1 shares. Returns for Class I, Class
R2, Class
R4, and Class R6 shares would have been substantially similar to returns of
Class 1 shares
because each share class is invested in the same portfolio of securities and
returns would differ only to the extent that expenses of the classes
are
different. To the extent expenses of a class would have been higher than
expenses of Class 1 shares for the periods shown, performance would have been
lower.
Please note
that after-tax returns (shown for Class R4 shares
only) reflect
the highest individual federal marginal income-tax rate in effect as of the
date
provided and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class R41
1 Class R1,
the representative class in previous periods, ceased operations on October 23,
2020.
Year-to-date
total return. The fund’s
total return for the nine months ended September
30, 2021, was
4.55%.
Best
quarter:
2020,
Q2,
12.40%
Worst
quarter:
2011,
Q3,
-11.16%
|
|
|
|
Average
annual total returns (%)—as of 12/31/20
|
|
|
|
Class
R4 (before
tax) |
|
|
|
after
tax on distributions |
|
|
|
after
tax on distributions, with sale |
|
|
|
Class
R2 |
|
|
|
Class
R6 |
|
|
|
Class
I |
|
|
|
S&P
Target Date To 2030 Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
John
Hancock 2030 Preservation Index (reflects no deduction for fees, expenses,
or taxes)* |
|
|
|
* |
Each
of the John Hancock Preservation Indices is a customized blended index
comprising some or all of the following component indices (ordered
alphabetically): Bloomberg
U.S.
Aggregate Bond Index, Bloomberg U.S.
Corporate Bond 1-5 Year Index, Bloomberg U.S.
Treasury TIPS 1-5 Year Index, ICE BofA Long U.S. Treasury Principal
STRIPS Index, ICE BofA U.S. High Yield Index, JP Morgan Emerging Markets
Bond Index Global, MSCI Emerging Markets Index, MSCI World Energy Index,
MSCI
World ex-USA Index, MSCI World Metals & Mining Index, Russell 2500
Index, S&P 500 Index, S&P Global ex-U.S. REIT Index, S&P
Global Infrastructure Index, S&P
U.S. REIT Index, and S&P/LSTA Leveraged Loan Index. Component index
weightings are adjusted semi-annually to
reflect changes in the fund’s target asset allocation
in accordance with the annual roll-down of the fund’s glide
path. |
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team
Managed
the fund since 2018 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation
Managed
the fund since 2013 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
John
Hancock Multi-Index 2025 Preservation Portfolio
Investment
objective
To seek
high total return until the fund’s target retirement date, with a greater focus
on income as the target date approaches. Total return, commonly understood
as the combination of income and capital appreciation, includes interest,
capital gains, dividends, and distributions realized over a given period of
time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses3
|
|
|
|
|
Total
annual fund operating expenses4
|
|
|
|
|
Contractual
expense reimbursement5
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Service
plan fee” has been restated to reflect maximum allowable
fees. |
2 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
3 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment companies.
|
4 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
5 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.35% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that time.
|
6 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022 unless
renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
47 |
88 |
62 |
37 |
3
years |
208 |
334 |
277 |
177 |
5
years |
384 |
601 |
510 |
329 |
10
years |
892 |
1,361 |
1,178 |
772 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a
higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During its most recent fiscal year, the fund’s portfolio
turnover rate was 29% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors expected to
retire around the year 2025.
The
managers of the fund allocate assets among the underlying funds according to an
asset allocation strategy that becomes increasingly conservative
over time. John Hancock Multi-Index 2025 Preservation Portfolio has a target
asset allocation of 24% of its assets in underlying funds that invest
primarily in equity securities. The fund will have a greater exposure to
underlying funds that invest primarily in fixed-income securities than
will a John
Hancock Multi-Index Preservation Portfolio with a more distant target date. To
attempt to reduce investment risk and volatility as retirement approaches,
the asset allocation strategy will change over time according to a predetermined
glide path shown in the following chart.
The
allocations reflected in the glide path are referred to as neutral because they
do not reflect active decisions made by the managers to produce an overweight
or an underweight position in a particular asset class. The fund has a target
allocation to underlying funds that invest in the broad asset classes of
equity and fixed-income securities but may also allocate its assets to
underlying funds that invest outside these asset classes to protect the
fund or
help it achieve its objective. For example, the fund may also allocate its
assets to underlying funds that invest in alternative and specialty asset
classes.
The investment advisor may change the target allocation without shareholder
approval if it believes such change would benefit the fund and its
shareholders. There is no guarantee that the managers will correctly predict the
market or economic conditions. There is no guarantee that the fund will
preserve either income or capital and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus 10%.
The fund is
designed for investors who anticipate reevaluating their retirement allocation
strategies at the target date. Under normal market conditions,
the fund expects to allocate 8% of its assets to equity underlying funds in its
designated retirement year and to maintain that static allocation
thereafter. This static allocation may be appropriate for some investors, but
others may wish to reallocate their investments at
retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market
securities, commodities, asset-backed securities, small-cap securities, and
below-investment-grade securities (i.e., junk bonds). The underlying
funds may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk,
obtaining efficient market exposure and/or enhancing investment
returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to track an
index or group of indexes. Equity type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities (including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps,
options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
fixed-income securities than John Hancock Multi-Index Preservation
Portfolios with more distant target dates, fixed-income securities risks are
more prevalent in this fund than in these other target-date funds.
The fund’s
main risks are listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions
of these risks beginning on page 66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk.
In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even close to, during, or after the fund’s
designated retirement year.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
The John
Hancock 2025 Preservation Index is based on the fund’s asset allocation glide
path and will reflect a more conservative allocation over time.
This information shows how the fund’s performance compares against the returns
of similar investments.
Past
performance (before and after
taxes) does not indicate future results. All
figures assume dividend reinvestment. Performance information is updated daily,
monthly, and quarterly
and may be obtained at our website, jhinvestments.com, or by
calling 800-225-5291 between
8:30 A.M. and 5:00
P.M., Eastern
time, on most business
days.
A note
on performance
Class 1 and
Class R4 shares commenced operations on April 30, 2010, and May 1, 2012,
respectively. Class R2 and Class R6 shares commenced operations
on September 4, 2012. Class I
shares commenced operations on October 22, 2021. Returns
shown prior to a class’s commencement date are those
of Class 1 shares. Returns for Class I, Class
R2, Class
R4, and Class R6 shares would have been substantially similar to returns of
Class 1 shares
because each share class is invested in the same portfolio of securities and
returns would differ only to the extent that expenses of the classes
are
different. To the extent expenses of a class would have been higher than
expenses of Class 1 shares for the periods shown, performance would have been
lower.
Please note
that after-tax returns (shown for Class R4 shares
only) reflect
the highest individual federal marginal income-tax rate in effect as of the
date
provided and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class R41
1 Class R1,
the representative class in previous periods, ceased operations on October 23,
2020.
Year-to-date
total return. The fund’s
total return for the nine months ended September
30, 2021, was
2.83%.
Best
quarter:
2020,
Q2,
10.02%
Worst
quarter:
2011,
Q3,
-9.11%
|
|
|
|
Average
annual total returns (%)—as of 12/31/20
|
|
|
|
Class
R4 (before
tax) |
|
|
|
after
tax on distributions |
|
|
|
after
tax on distributions, with sale |
|
|
|
Class
R2 |
|
|
|
Class
R6 |
|
|
|
Class
I |
|
|
|
S&P
Target Date To 2025 Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
John
Hancock 2025 Preservation Index (reflects no deduction for fees, expenses,
or taxes)* |
|
|
|
* |
Each
of the John Hancock Preservation Indices is a customized blended index
comprising some or all of the following component indices (ordered
alphabetically): Bloomberg
U.S.
Aggregate Bond Index, Bloomberg U.S.
Corporate Bond 1-5 Year Index, Bloomberg U.S.
Treasury TIPS 1-5 Year Index, ICE BofA Long U.S. Treasury Principal
STRIPS Index, ICE BofA U.S. High Yield Index, JP Morgan Emerging Markets
Bond Index Global, MSCI Emerging Markets Index, MSCI World Energy Index,
MSCI
World ex-USA Index, MSCI World Metals & Mining Index, Russell 2500
Index, S&P 500 Index, S&P Global ex-U.S. REIT Index, S&P
Global Infrastructure Index, S&P
U.S. REIT Index, and S&P/LSTA Leveraged Loan Index. Component index
weightings are adjusted semi-annually to
reflect changes in the fund’s target asset allocation
in accordance with the annual roll-down of the fund’s glide
path. |
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team
Managed
the fund since 2018 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation
Managed
the fund since 2013 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
John
Hancock Multi-Index Income Preservation Portfolio
Investment
objective
To seek
total return with a focus on current income. Total return, commonly understood
as the combination of income and capital appreciation, includes
interest, capital gains, dividends, and distributions realized over a given
period of time.
Fees
and expenses
This table
describes the fees and expenses you may pay if you buy, hold, and sell shares of
the fund. You may pay
other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the
tables and examples below.
|
|
|
|
|
Shareholder
fees (%)
(fees paid directly from your investment) |
I |
R2 |
R4 |
R6 |
Maximum
front-end sales charge (load) |
None |
None |
None |
None |
Maximum
deferred sales charge (load) |
None |
None |
None |
None |
|
|
|
|
|
Annual
fund operating expenses (%)
(expenses that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
Management
fee |
|
|
|
|
Distribution
and service (Rule 12b-1) fees |
|
|
|
|
Other
expenses |
|
|
|
|
Service
plan fee |
|
|
|
|
Additional
other expenses |
|
|
|
|
Total
other expenses |
|
|
|
|
Acquired
fund fees and expenses2
|
|
|
|
|
Total
annual fund operating expenses3
|
|
|
|
|
Contractual
expense reimbursement4
|
|
|
|
|
Total
annual fund operating expenses after expense
reimbursements |
|
|
|
|
1 |
“Other
expenses” have been estimated for the first year of operations of the
fund’s Class I shares.
|
2 |
“Acquired
fund fees and expenses” are based on indirect net expenses associated with
the fund’s investments in underlying investment
companies. |
3 |
The
“Total annual fund operating expenses” shown may not correlate to the
fund’s ratios of expenses to average daily net assets shown in the
“Financial highlights” section
of the fund’s prospectus, which does not include “Acquired fund fees and
expenses.”
|
4 |
The
advisor contractually agrees to reduce its management fee or, if
necessary, make payment to the fund in an amount equal to the amount by
which certain expenses,
including acquired fund fees, exceed 0.33% of the fund’s average daily net
assets. This agreement expires on December
31, 2022,
unless renewed by mutual
agreement of the fund and the advisor based upon a determination that this
is appropriate under the circumstances at that
time. |
5 |
The
distributor contractually agrees to limit its Rule 12b-1 fees for Class R4
shares to 0.15%. This agreement expires on December 31, 2022
unless renewed by mutual
agreement of the fund and the distributor based upon a determination that
this is appropriate under the circumstances at that
time. |
Expense
example
This
example is intended to help you compare the cost of investing in the fund with
the cost of investing in other mutual funds. Please see below a hypothetical
example showing the expenses of a $10,000 investment for the time periods
indicated and then assuming you sell all of your shares at the end of
those periods. The example assumes a 5% average annual return and that fund
expenses will not change over the periods. Although your actual
costs may be higher or lower, based on these assumptions, your costs would
be:
|
|
|
|
|
Expenses
($) |
I |
R2 |
R4 |
R6 |
1
year |
45 |
86 |
60 |
35 |
3
years |
209 |
335 |
278 |
177 |
5
years |
386 |
603 |
513 |
332 |
10
years |
901 |
1,370 |
1,187 |
781 |
Portfolio
turnover
The fund,
which operates as a fund of funds and invests in underlying funds, does not pay
transaction costs, such as commissions, when it buys and sells
shares of underlying funds (or “turns over” its portfolio). An underlying fund
does pay transaction costs when it turns over its portfolio, and a higher
portfolio turnover rate may indicate higher transaction costs. A higher
portfolio turnover rate may result in higher taxes when fund shares are
held in a
taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the performance of the underlying
funds and of the fund. During its most recent fiscal year, the fund’s portfolio
turnover rate was 70% of the
average value of its portfolio.
Principal
investment strategies
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors in or
near
retirement. Under normal market conditions, the fund is expected to maintain an
allocation of about 8% of its assets in underlying funds that invest
primarily in equity securities.
The fund
typically will have greater exposure to underlying funds that invest primarily
in fixed-income securities than will other John Hancock Multi-Index
Preservation Portfolios, which are designed for investors who plan to retire
around a specific target date.
The fund’s
allocations to equity and fixed-income are referred to as neutral because they
do not reflect active decisions made by the managers to produce an
overweight or an underweight position in a particular asset class. The fund has
a target allocation to underlying funds that invest in the broad asset
classes of equity and fixed-income securities but may also allocate its assets
to underlying funds that invest outside these asset classes to protect the
fund or help it achieve its objective. For example, the fund may also allocate
its assets to underlying funds that invest in alternative and specialty
asset classes. The investment advisor may change the target allocation without
shareholder approval if it believes such change would benefit the fund
and its shareholders. There is no guarantee that the managers will correctly
predict the market or economic conditions. There is no guarantee that the
fund will preserve either income or capital and, as with other mutual fund
investments, you could lose money. Unlike other John Hancock Multi-Index
Preservation Portfolios, the fund is not designed to decrease its equity
holdings over time. The fund is designed for an investor in or near retirement,
and it is anticipated that investors will make gradual withdrawals from the
fund. Under normal circumstances, any deviation from the target
allocation is not expected to be greater than plus or minus
10%.
The fund
may invest in underlying funds that invest in a broad range of equity,
fixed-income, and alternative/specialty securities and asset classes,
including,
but not limited to, U.S. and foreign securities, including emerging-market
securities, commodities, asset-backed securities, small-cap securities,
and below-investment-grade securities (i.e., junk bonds). The underlying funds
may also use derivatives, such as swaps, foreign currency forwards,
futures, and options, in each case for the purposes of reducing risk, obtaining
efficient market exposure and/or enhancing investment returns.
The fund
will invest in various passively managed underlying funds (commonly known as
index funds) that as a group hold a wide range of equity-type securities
in their portfolios, including convertible securities. The fund may also invest
in various actively managed funds. The fund is not designed to track an
index or group of indexes. Equity-type securities include small-, mid-, and
large-capitalization stocks, domestic and foreign securities (including
emerging-market securities), and sector holdings. Certain equity underlying
funds may invest in initial public offerings (IPOs). Each of the equity
underlying funds has its own investment strategy that, for example, may focus on
growth stocks or value stocks, or may employ a strategy combining
growth and income stocks, and/or may invest in derivatives such as credit
default swaps, foreign currency forwards, interest rate swaps, options on
securities, and futures contracts. Certain of the underlying funds focus their
investment strategy on fixed-income securities, which may include
investment-grade and below-investment-grade debt securities with maturities that
range from shorter to longer term. Below-investment-grade debt
securities are also referred to as junk bonds. The fixed-income underlying funds
collectively hold various types of debt instruments such as corporate
bonds and mortgage-backed, government-issued, domestic, and international
securities (including emerging market securities). Certain underlying
funds may invest in illiquid securities, and certain underlying funds may be
non-diversified.
The fund
may invest directly in exchange-traded funds (ETFs), exchange-traded notes
(ETNs), the securities of other investment companies, U.S. government
securities, and other types of investments such as derivatives, including credit
default swaps, options on equity index futures, interest-rate
swaps, and foreign currency forward contracts, in each case for the purposes of
reducing risk, obtaining efficient market exposure, and/or
enhancing investment returns.
To the
extent legally permitted, the Board of Trustees of the fund may, in its
discretion, determine to combine the fund with another fund without shareholder
approval if the target allocation of the fund matches the target allocation of
the other fund, although there is no assurance that the Board of Trustees
will so determine at any point.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests. The fund’s
performance reflects both the managers’ allocation decisions and the performance
of the underlying funds.
Principal
risks
An
investment in the fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency. Many
factors affect performance, and fund shares will fluctuate in price, meaning you
could lose money. The fund’s
investment strategy
may not produce the intended results.
During
periods of heightened market volatility or reduced liquidity, governments, their
agencies, or other regulatory bodies, both within the United States and
abroad, may take steps to intervene. These actions, which could include
legislative, regulatory, or economic initiatives, might have unforeseeable
consequences and could adversely affect the fund’s performance or otherwise
constrain the fund’s ability to achieve its investment objective.
Because
this fund has a greater exposure to underlying funds that invest primarily in
fixed-income securities than certain other John Hancock Multi-Index
Preservation Portfolios, fixed-income securities risks are more prevalent in
this fund than in the target date funds. The fund’s
main risks are
listed
below in alphabetical order, not in order of importance. Before
investing, be sure to read the additional descriptions of these risks beginning
on page
66
of the prospectus.
Principal
risks of investing in the fund of funds
Credit
and counterparty risk. The
counterparty to an over-the-counter derivatives contract or a borrower of fund
securities may not make timely payments or
otherwise honor its obligations. U.S. government securities are subject to
varying degrees of credit risk based on the nature of their support.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Exchange-traded
funds (ETFs)
risk.
The risks
of owning shares of an ETF include the risks
of owning
the
underlying securities the ETF
holds. Lack of liquidity
in an ETF could result in the ETF being more volatile than its underlying
securities. An ETF’s shares could trade at a significant premium or discount to
its NAV. A fund
bears ETF fees and expenses indirectly.
Exchange-traded
notes (ETNs)
risk. An ETN
generally reflects the risks associated with the assets composing the underlying
market benchmark or strategy it
is designed to track. ETNs also are subject to issuer and fixed-income
risks.
Fund of
funds risk. The fund’s
ability to achieve its investment objective will depend largely, in part, on:
(i) the underlying funds’ performance, expenses
and ability to meet their investment objectives; and (ii) properly rebalancing
assets among underlying funds and different asset classes. The fund is
also subject to risks related to: (i) layering of fees of the underlying funds;
and (ii) conflicts of interest associated with the subadvisor’s ability to
allocate
fund assets without limit to other funds it advises and/or other funds advised
by affiliated subadvisors. There is no assurance that either the fund or the
underlying funds will achieve their investment objectives. A fund bears
underlying fund fees and expenses
indirectly.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that the fund intends to utilize include: credit default
swaps, foreign currency forward contracts, futures contracts, interest-rate
swaps, and options. Foreign currency forward contracts, futures contracts,
options, and swaps generally are subject to counterparty risk. In
addition, swaps may be subject to interest-rate and settlement risk, and the
risk of default of the underlying reference obligation. Derivatives associated
with foreign currency transactions are subject to currency
risk.
Investment
company securities risk.
The fund
may invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate
share of the expenses of each such investment company. The total return on such
investments will be reduced by the operating expenses
and fees of such other investment companies, including advisory
fees.
Lifecycle
risk. Managers
might not correctly predict market or economic conditions, and you could lose
money even though the fund’s designated retirement
year has already passed.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Short
sales risk. Short
sales involve costs and risk. A fund must pay the lender interest on a security
it borrows, and the fund will lose money if the price of
the borrowed security increases between the time of the short sale and the date
when the fund replaces the borrowed security.
Target
allocation risk. The fund’s
risk profile will change due to reallocation or rebalancing of portfolio assets
as the fund approaches its target date.
Principal
risks of investing in the underlying
funds
Commodity
risk. Commodity
prices may be volatile due to fluctuating demand, supply disruption,
speculation, and other factors. Certain commodity investments
may have no active trading market at times.
Credit
and counterparty risk. The issuer
or guarantor of a fixed-income security, the counterparty to an over-the-counter
derivatives contract, or a borrower of
fund securities may not make timely payments or otherwise honor its obligations.
U.S. government securities are subject to varying degrees of
credit risk depending upon the nature of their support. A downgrade or default
affecting any of the fund’s securities could affect the fund’s performance.
Economic
and market events risk. Events in
the U.S. and global financial markets, including actions taken by the U.S.
Federal Reserve or foreign central
banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance.
Reduced liquidity in credit and fixed-income markets could adversely affect
issuers worldwide. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions
deteriorate.
Equity
securities risk. The price
of equity securities may decline due to changes in a company’s financial
condition or overall market conditions. Growth
company securities may fluctuate more in price than other securities because of
the greater emphasis on earnings expectations. Securities the manager
believes are undervalued may never realize their full potential value, and in
certain markets value stocks may underperform the market as a
whole.
Fixed-income
securities risk. A rise in
interest rates typically causes bond prices to fall. The longer the average
maturity or duration of the bonds held by a
fund, the more sensitive it will likely be to interest-rate fluctuations. An
issuer may not make all interest payments or repay all or any of the
principal
borrowed. Changes in a security’s credit quality may adversely affect fund
performance.
Foreign
securities risk. Less
information may be publicly available regarding foreign issuers,
including foreign government issuers.
Foreign securities
may be subject to foreign taxes and may be more volatile than U.S. securities.
Currency fluctuations and political and economic developments
may adversely impact the value of foreign securities. The risks of investing in
foreign securities are magnified in emerging markets. If
applicable,
depositary
receipts are subject to most of the risks associated with investing in foreign
securities directly because the value of a depositary receipt is
dependent upon the market price of the underlying foreign equity security.
Depositary receipts are also subject to liquidity
risk.
Hedging,
derivatives, and other strategic transactions risk. Hedging,
derivatives, and other strategic transactions may increase a fund’s volatility
and could produce disproportionate losses, potentially more than the fund’s
principal investment. Risks of these transactions are different from and
possibly greater than risks of investing directly in securities and other
traditional instruments. Under certain market conditions, derivatives
could
become harder to value or sell and may become subject to liquidity risk (i.e.,
the inability to enter into closing transactions). Derivatives and other
strategic transactions that a fund may utilize include: credit default swaps,
foreign currency forward contracts, futures contracts, interest-rate
swaps, and
options. Foreign currency forward contracts, futures contracts, options, and
swaps generally are subject to counterparty risk. In addition, swaps may
be subject to interest-rate and settlement risk, and the risk of default of the
underlying reference obligation. Derivatives associated with foreign
currency transactions are subject to currency
risk.
Illiquid
and restricted securities risk. Illiquid
and restricted securities may be difficult to value and may involve greater
risks than liquid securities. Illiquidity
may have an adverse impact on a particular security’s market price and the
fund’s ability to sell the security.
Inflation-protected
securities risk. Increases
in real interest rates generally cause the price of inflation-protected debt
securities to decrease.
Initial
public offerings (IPOs)
risk. IPO share
prices are frequently volatile and may significantly impact fund
performance.
Large
company risk. Larger
companies may grow more slowly than smaller companies or be slower to respond to
business developments. Large-capitalization
securities may underperform the market as a
whole.
Liquidity
risk. The extent
(if at all) to which a security may be sold or a derivative position closed
without negatively impacting its market value may be impaired
by reduced market activity or participation, legal restrictions, or other
economic and market impediments. Liquidity risk may be magnified in rising
interest rate environments due to higher than normal redemption rates.
Widespread selling of fixed-income securities to satisfy redemptions
during
periods of reduced demand may adversely impact the price or salability of such
securities. Periods of heavy redemption could cause the fund to sell assets
at a loss or depressed value, which could negatively affect performance.
Redemption risk is heightened during periods of declining or illiquid
markets.
Lower-rated
and high-yield fixed-income securities risk.
Lower-rated and high-yield fixed-income securities (junk bonds) are subject to
greater credit
quality risk, risk of default, and price volatility than higher-rated
fixed-income securities, may be considered speculative, and can be difficult to
resell.
Mortgage-backed
and asset-backed securities risk. Mortgage-backed
and asset-backed securities are subject to different combinations of
prepayment,
extension, interest-rate, and other market risks. Factors that impact the value
of these securities include interest rate changes, the reliability
of available information, credit quality or enhancement, and market
perception.
Non-diversified
risk. Adverse
events affecting a particular issuer or group of issuers may magnify losses for
non-diversified funds, which may invest a large
portion of assets in any one issuer or a small number of
issuers.
Operational
and cybersecurity risk.
Cybersecurity breaches may allow an unauthorized party to gain access to fund
assets, customer data, or proprietary
information, or cause a fund or its service providers to suffer data corruption
or lose operational functionality. Similar incidents affecting issuers of
a fund’s securities may negatively impact performance. Operational risk may
arise from human error, error by third parties, communication errors, or
technology failures, among other causes.
Preferred
and convertible securities risk. Preferred
stock dividends are payable only if declared by the issuer’s board. Preferred
stock may be subject to
redemption provisions. The market values of convertible securities tend to fall
as interest rates rise and rise as interest rates fall. Convertible
preferred stock’s value can depend heavily upon the underlying common stock’s
value.
Sector
risk. When a
fund focuses its investments in certain sectors of the economy, its performance
may be driven largely by sector performance and could
fluctuate more widely than if the fund were invested more evenly across
sectors.
Small
and mid-sized company risk. Small and
mid-sized companies are generally less established and may be more volatile than
larger companies. Small
and/or mid-capitalization securities may underperform the market as a
whole.
Past
performance
The
following information illustrates the variability of the fund’s returns and
provides some indication of the risks of investing in the fund by showing
changes in
the fund’s performance from year to year and by showing how the fund’s average
annual returns compared with a broad-based market index.
The John
Hancock Income Preservation Index shows how the fund’s performance compares
against the returns of similar investments.
Past
performance
(before and after taxes) does not indicate future
results. All
figures assume dividend reinvestment. Performance information is updated
daily,
monthly, and quarterly and may be obtained at our website, jhinvestments.com, or by
calling 800-225-5291 between
8:30 A.M. and 5:00
P.M.,
Eastern
time, on most business days.
A note
on performance
Class 1 and
Class R4 shares commenced operations on April 30, 2010, and May 1, 2012,
respectively. Class R2 and Class R6 shares commenced operations
on September 4, 2012. Class I
shares commenced operations on October 22, 2021. Returns
shown prior to a class’s commencement date are those
of Class 1 shares. Returns for Class I, Class
R2, Class
R4, and Class R6 shares would have been substantially similar to returns of
Class 1 shares
because each share class is invested in the same portfolio of securities and
returns would differ only to the extent that expenses of the classes
are
different. To the extent expenses of a class would have been higher than
expenses of Class 1 shares for the periods shown, performance would have been
lower.
Please note
that after-tax returns (shown for Class R4 shares
only) reflect
the highest individual federal marginal income-tax rate in effect as of the
date
provided and do not reflect any state or local taxes.
Your actual
after-tax returns may be different. After-tax returns are not relevant to shares
held in an IRA,
401(k), or other tax-advantaged investment plan. After-tax
returns for other share classes would vary.
Calendar
year total returns (%)—Class R41
1 Class R1,
the representative class in previous periods, ceased operations on October 23,
2020.
Year-to-date
total return. The fund’s
total return for the nine months ended September
30, 2021, was
1.53%.
Best
quarter:
2020,
Q2,
7.77%
Worst
quarter:
2020,
Q1,
-5.55%
|
|
|
|
Average
annual total returns (%)—as of 12/31/20
|
|
|
|
Class
R4 (before
tax) |
|
|
|
after
tax on distributions |
|
|
|
after
tax on distributions, with sale |
|
|
|
Class
R2 |
|
|
|
Class
R6 |
|
|
|
Class
I |
|
|
|
S&P
Target Date To Retirement Income Index (reflects no deduction for fees,
expenses, or taxes)†
|
|
|
|
John
Hancock Income Preservation Index (reflects no deduction for fees,
expenses, or taxes)* |
|
|
|
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
* |
Each
of the John Hancock Preservation Indices is a customized blended index
comprising some or all of the following component indices (ordered
alphabetically): Bloomberg
U.S.
Aggregate Bond Index, Bloomberg U.S.
Corporate Bond 1-5 Year Index, Bloomberg U.S.
Treasury TIPS 1-5 Year Index, ICE BofA Long U.S. Treasury Principal
STRIPS Index, ICE BofA U.S. High Yield Index, JP Morgan Emerging Markets
Bond Index Global, MSCI Emerging Markets Index, MSCI World Energy Index,
MSCI
World ex-USA Index, MSCI World Metals & Mining Index, Russell 2500
Index, S&P 500 Index, S&P Global ex-U.S. REIT Index, S&P
Global Infrastructure Index, S&P
U.S. REIT Index, and S&P/LSTA Leveraged Loan
Index. |
† |
Performance
inception was May 30, 2014. |
Investment
management
Investment
advisor John
Hancock Investment Management LLC
Subadvisor Manulife
Investment Management (US) LLC
Portfolio
management
The
following individuals are jointly and primarily responsible for the day-to-day
management of the fund’s portfolio.
|
|
Robert
E. Sykes, CFA Managing
Director and Portfolio Manager, Asset Allocation Team
Managed
the fund since 2018 |
Nathan
W. Thooft, CFA Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset
Allocation
Managed
the fund since 2013 |
Purchase
and sale of fund shares
The minimum
initial investment requirement for Class I shares is $250,000, except that the
fund may waive the minimum for any category of investors at the
fund’s sole discretion. There are
no minimum initial investment requirements for Class R2 and Class R4 shares. The
minimum initial investment requirement
for Class R6 shares is $1 million, except that there is no minimum for:
qualified and nonqualified plan investors; certain eligible qualifying
investment
product platforms; Trustees, employees of the advisor or its affiliates,
employees of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned. There
are no subsequent minimum investment requirements for any of
these share classes.
Class
I and Class
R6 shares
may be redeemed on any business day by mail: John Hancock Signature Services,
Inc., P.O. Box 219909, Kansas City, MO 64121-9909;
or for most account types through our website: jhinvestments.com; or by
telephone: 888-972-8696. Class R2
and Class R4 shares may be redeemed
on any business day by contacting your retirement plan administrator or
recordkeeper.
Taxes
The fund’s
distributions are taxable, and will be taxed as ordinary income and/or capital
gains, unless you are investing through a tax-deferred arrangement,
such as a 401(k) plan or individual retirement account. Withdrawals from such
tax-deferred arrangements may be subject to tax at a later
date.
Payments
to broker-dealers and other financial intermediaries
If you
purchase the fund through a broker-dealer or other financial intermediary (such
as a bank, registered investment advisor, financial planner, or retirement
plan administrator), the fund and its related companies may pay the
broker-dealer or other intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend
the fund over another investment. These payments are not applicable to Class R6
shares. Ask your salesperson or visit your financial intermediary’s
website for more information.
Unless
otherwise noted, in this section, references to a single fund apply
equally
to all of the funds.
Principal
investment strategies
Each
fund other than Multi-Index Income Preservation Portfolio
Investment
objective: The fund
seeks high total return until its target retirement
date, with a greater focus on income as the target date approaches.
Total return, commonly understood as the combination of income and
capital appreciation, includes interest, capital gains, dividends
and distributions realized over a given period of time.
The Board
of Trustees can change the fund’s investment objective and strategy
without shareholder approval.
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy based on investors’ expected
retirement date (see the chart in the preceding “Fund summary”).
The
managers of the fund allocate assets among the underlying funds according
to an asset allocation strategy that becomes increasingly conservative
over time. Each John Hancock Multi-Index Preservation Portfolio
is designed for investors planning to retire around the designated
year and has a target asset allocation reflecting this designation.
A fund with a closer target retirement date will have a greater
exposure to underlying funds primarily invested in fixed-income securities
than will a John Hancock Multi-Index Preservation Portfolio with a more
distant target retirement date. Over time, the fund’s asset allocation
strategy will change according to a predetermined glide path shown in
the “Fund summary.” As the glide path shows, the fund’s asset mix becomes
more conservative as time elapses. This reflects the desire to reduce
investment risk and volatility as retirement approaches.
The
allocations reflected in the glide path are referred to as neutral because
they do not reflect active decisions made by the managers to produce an
overweight or an underweight position in a particular asset class based
on the managers’ market outlook. The fund has a target allocation
to underlying funds that invest in the broad asset classes of equity and
fixed-income securities but may also allocate its assets to underlying
funds that invest outside these asset classes to protect the fund or
help it achieve its objective. For example, the fund may also allocate
its assets to underlying funds that invest in alternative and specialty
asset classes. The investment advisor may change the target allocation
without shareholder approval if it believes such change would benefit the
fund and its shareholders. There is no guarantee that the managers
will correctly predict the market or economic conditions. There is no
guarantee that the fund will preserve either income or capital and, as
with other mutual fund investments, you could lose money even if the fund is
at or close to its designated retirement year. Under normal circumstances,
any deviation from the target allocation is not expected to be
greater than plus or minus 10%.
Within the
prescribed percentage allocation, the managers select the percentage
level to be maintained in specific underlying funds. The managers
may, from time to time, adjust the percent of assets invested in any
specific underlying fund held by the fund. Such adjustments may be made to
increase or decrease the fund’s holdings of particular asset
classes, to
adjust the overall credit quality or duration of fixed-income securities
held by the underlying funds, or to rebalance the allocation to underlying
funds. Adjustments may also be made to increase or reduce the
percentage of the fund’s assets subject to the management of a particular
underlying fund’s manager or to reflect fundamental changes in the
investment environment. To maintain target allocations in the underlying
funds, daily cash flows for the fund may be directed to its underlying
funds that most deviate from the target.
The fund is
designed for an investor who anticipates reevaluating his or her
retirement allocation strategies at the target date. Accordingly, in
the
designated retirement year, as indicated by the fund’s name, under normal
market conditions the fund is expected to have an equity allocation
of 8% in underlying funds that invest primarily in equity securities,
and maintain a static equity allocation of 8% in underlying funds that
invest primarily in equity securities after December 31 of the designated
retirement year. This static allocation may be appropriate for some
investors; however, other investors may wish to reallocate their investments
and may remove all or most of their investment at retirement.
The fund
may invest in underlying funds that invest in a broad range of equity and
fixed-income securities and asset classes. The fund may also invest in
underlying funds that invest in alternative/specialty securities and asset
classes, including, but not limited to, U.S. and foreign securities,
emerging-market securities, commodities, asset-backed securities,
small-cap securities, and below-investment-grade securities (i.e., junk
bonds). The underlying funds may also use derivatives, such as swaps,
foreign currency forwards, futures, and options, in each case for the
purposes of reducing risk, obtaining efficient market exposure and/or
enhancing investment returns.
The fund
will invest in various passively managed underlying funds (commonly
known as index funds) that as a group hold a wide range of equity-type
securities in their portfolios, including convertible securities. The fund
may also invest in various actively managed funds. The fund is not
designed to track an index or group of indexes. Equity-type securities
include
small-, mid-, and large-capitalization stocks, domestic and foreign
securities (including emerging-market securities), and sector holdings.
Certain equity underlying funds may invest in initial public offerings
(IPOs). Each of the equity underlying funds has its own investment
strategy that, for example, may focus on growth stocks or value
stocks, or may employ a strategy combining growth and income stocks,
and/or may invest in derivatives such as credit default swaps, foreign
currency forwards, interest rate swaps, options on securities, and futures
contracts. Certain of the underlying funds focus their investment
strategy on fixed-income securities, which may include investment-grade
and below-investment-grade debt securities with maturities
that range from shorter to longer term. Below-investment-grade
debt securities are also referred to as junk bonds. The
fixed-income underlying funds collectively hold various types of debt
instruments such as corporate bonds and mortgage-backed, government-issued,
domestic, and international securities (including emerging
market securities). Certain underlying funds may invest in illiquid
securities, and certain underlying funds may be
non-diversified.
The fund
may invest in exchange-traded funds (ETFs), the securities of other
investment companies, and directly in other types of investments, such as
U.S. government securities and derivatives, including credit default
swaps, options on equity index futures, interest-rate swaps, and foreign
currency forward contracts, in each case for the purposes of reducing
risk, obtaining efficient market exposure, and/or enhancing investment
returns. The fund may also purchase futures contracts for cash
management purposes and to gain investment exposure pending investments.
The fund may invest directly in exchange-traded notes (ETNs).
The
managers may take into consideration environmental, social, and/or governance
(ESG) factors, alongside other relevant factors, as part of its investment
process. The ESG characteristics utilized in the fund’s investment
process may change over time and one or more characteristics
may not be relevant with respect to all issuers that are eligible
fund investments.
The Board
of Trustees of the fund may, in its discretion, determine to combine the
fund with another fund if the target allocation of the fund matches the
target allocation of the other fund. In such event, the fund’s shareholders
will become shareholders of the other fund. To the extent permitted
by applicable regulatory requirements, such a combination would be
implemented without seeking the approval of shareholders. There is no
assurance that the Board of Trustees at any point will determine
to implement such a combination.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests.
The investment performance of the fund will reflect both its managers’
allocation decisions with respect to underlying funds and investments
and the investment decisions made by the underlying funds.
The fund
may invest in cash or money market instruments for purposes of meeting
redemption requests or making other anticipated cash payments.
Investing
during transition periods
A fund may
deviate from its principal investment strategies during transition
periods, which may include the reassignment of portfolio management,
a change in investment objective or strategy, a reorganization
or liquidation, or the occurrence of large inflows or outflows.
Multi-Index
Income Preservation Portfolio
Investment
objective: To seek
total return with a focus on current income.
Total return, commonly understood as the combination of income and
capital appreciation, includes interest, capital gains, dividends,
and distributions realized over a given period of time.
The Board
of Trustees can change the fund’s investment objective and strategy
without shareholder approval.
Under
normal market conditions, the fund primarily invests its assets in underlying
funds using an asset allocation strategy designed for investors
in or near retirement. Under normal market conditions, the fund is
expected to maintain an allocation of about 8% of its assets in underlying
funds that invest primarily in equity securities.
The fund
typically will have greater exposure to underlying funds that invest
primarily in fixed-income securities than will other John Hancock
Multi-Index
Preservation Portfolios, which are designed for investors who plan to
retire around a specific target date.
The fund’s
allocations to equity and fixed-income are referred to as neutral
allocations because they do not reflect active decisions made by the
managers to produce an overweight or an underweight position in a particular
asset class based on the managers’ market outlook. Any such decisions
would be made from a strategic, long-term perspective. The fund has a
target allocation to underlying funds that invest in the broad asset
classes of equity and fixed-income securities but may also allocate its assets
to underlying funds that invest outside these asset classes to protect the
fund or help it achieve its investment objective. For example, the fund
may also allocate its assets to underlying funds that invest in alternative
and specialty asset classes. The target allocation may be changed
without shareholder approval if it is believed that such a change would
benefit the fund and its shareholders. There is no guarantee that the
managers will correctly predict the market or economic conditions and, as
with other mutual fund investments, you could lose money. There is no
guarantee that the fund will preserve either income or capital. Unlike
other John Hancock Multi-Index Preservation Portfolios, the fund is not
designed to decrease its equity holdings over time. The fund is designed
for an investor in or near retirement, and it is anticipated that investors
will make gradual withdrawals from the fund. Under normal circumstances,
any deviation from the target allocation is not expected to be
greater than plus or minus 10%.
Within the
prescribed percentage allocation, the managers select the percentage
level to be maintained in specific underlying funds. The managers
may, from time to time, adjust the percent of assets invested in any
specific underlying fund held by the fund. Such adjustments may be made to
increase or decrease the fund’s holdings of particular asset classes, to
adjust the overall credit quality or duration of fixed-income securities
held by the underlying funds, or to rebalance the allocation to underlying
funds. Adjustments may also be made to increase or reduce the
percentage of the fund’s assets subject to the management of a particular
underlying fund’s manager or to reflect fundamental changes in the
investment environment. To maintain target allocations in the underlying
funds, daily cash flows for the fund may be directed to its underlying
funds that most deviate from the target.
The fund
may invest in underlying funds that invest in a broad range of equity,
fixed-income, and alternative/specialty securities and asset classes,
including, but not limited to, U.S. and foreign securities, including
emerging-market securities, commodities, asset-backed securities,
small-cap securities, and below-investment-grade securities (i.e., junk
bonds). The underlying funds may also use derivatives, such as swaps,
foreign currency forwards, futures, and options, in each case for the
purposes of reducing risk, obtaining efficient market exposure and/or
enhancing investment returns.
The fund
will invest in various passively managed underlying funds (commonly
known as index funds) that as a group hold a wide range of equity-type
securities in their portfolios, including convertible securities. The fund
may also invest in various actively managed funds. The fund is not
designed to track an index or group of indices. Equity-type securities
include
small-, mid-, and large-capitalization stocks, domestic and foreign
securities (including emerging-market securities), and sector holdings.
Certain equity underlying funds may invest in initial public offerings
(IPOs). Each of the equity underlying funds has its own
investment
strategy that, for example, may focus on growth stocks or value
stocks, or may employ a strategy combining growth and income stocks,
and/or may invest in derivatives such as credit default swaps, foreign
currency forwards, interest rate swaps, options on securities, and futures
contracts. Certain of the underlying funds focus their investment
strategy on fixed-income securities, which may include investment-grade
and below-investment-grade debt securities with maturities
that range from shorter to longer term. Below-investment-grade
debt securities are also referred to as junk bonds. The
fixed-income underlying funds collectively hold various types of debt
instruments such as corporate bonds and mortgage-backed, government-issued,
domestic, and international securities (including emerging
market securities). Certain underlying funds may invest in illiquid
securities, and certain underlying funds may be non-diversified.
The fund
may invest in exchange-traded funds (ETFs), the securities of other
investment companies, and directly in other types of investments, such as
U.S. government securities and derivatives, including credit default
swaps and options on equity index futures, interest-rate swaps, and foreign
currency forward contracts, in each case for the purposes of reducing
risk, obtaining efficient market exposure, and/or enhancing investment
returns. The fund may also purchase futures contracts for cash
management purposes and to gain investment exposures pending investments.
The fund may also invest directly in exchange-traded notes (ETNs).
The
managers may take into consideration environmental, social, and/or governance
(ESG) factors, alongside other relevant factors, as part of its investment
selection process. The ESG characteristics utilized in the fund’s
investment process may change over time and one or more characteristics
may not be relevant with respect to all issuers that are eligible
fund investments.
The Board
of Trustees of the fund may, in its discretion, determine to combine the
fund with another fund if the target allocation of the fund matches the
target allocation of the other fund. To the extent permitted by
applicable regulatory requirements, such a combination would be implemented
without seeking the approval of shareholders. There is no assurance
that the Board of Trustees at any point will determine to implement
such a combination.
The fund
bears its own expenses and, in addition, indirectly bears its proportionate
share of the expenses of the underlying funds in which it invests.
The investment performance of the fund will reflect both its managers’
allocation decisions with respect to underlying funds and investments
and the investment decisions made by the underlying funds.
The fund
may invest in cash or money market instruments for purposes of meeting
redemption requests or making other anticipated cash payments.
Investing
during transition periods
A fund may
deviate from its principal investment strategies during transition
periods, which may include the reassignment of portfolio management,
a change in investment objective or strategy, a reorganization
or liquidation, or the occurrence of large inflows or outflows.
Temporary
defensive investing
The fund
may invest up to 100% of its assets in cash, money market instruments,
or other investment-grade short-term securities for the purpose of
protecting the fund in the event the managers determine that market,
economic, political, or other conditions warrant a defensive posture.
To the
extent that the fund is in a defensive position, its ability to achieve
its
investment objective will be limited.
Other
permitted investments
The funds
of funds may directly:
• |
purchase
U.S. government securities and short-term paper; |
• |
purchase
shares of other registered open-end investment companies (and
registered unit investment trusts) within the same “group of investment
companies” as that term is defined in Section 12 of the Investment
Company Act of 1940, as amended; |
• |
purchase
shares of other registered open-end investment companies (and
registered unit investment trusts) where the advisor is not the
same
as, or affiliated with, the advisor to the fund, including ETFs; |
• |
invest
in domestic and foreign equity securities, which may include common
and preferred stocks of large-, mid-,
and small-capitalization companies
in both developed (including the United States) and emerging
markets; |
• |
invest
in domestic and foreign fixed-income securities, which may include
debt securities of governments throughout the world (including
the United States), their agencies and instrumentalities, debt
securities of corporations and supranationals, inflation-protected
securities,
convertible bonds, mortgage-backed securities, asset-backed
securities, and
collateralized debt securities. Investments
in fixed-income securities may include securities of issuers
in both developed markets
(including
the United States) and emerging
markets, and
may include fixed-income securities rated below
investment grade; |
• |
purchase
securities of registered closed-end investment companies that
are part of the same “group of investment companies” as that term
is defined in Section 12 of the Investment Company Act of 1940,
as
amended; |
• |
invest
up to 15% of its net assets in illiquid securities of entities such
as
limited partnerships and other pooled investment vehicles, such as
hedge
funds; |
• |
make
short sales of securities (borrow and sell securities not owned by
the
fund), either to realize appreciation when a security that the fund
does
not own declines in value or as a hedge against potential declines
in
the value of a fund security;
and |
• |
invest
in qualified publicly traded partnerships and other publicly traded
partnerships that, at
the time of investment, the
advisor believes
will primarily generate only good
income
for purposes of qualifying
as a regulated investment company under the Internal
Revenue
Code of 1986, as amended, including
such publicly traded partnerships
that invest principally in commodities or commodity-linked
derivatives (with the prior approval of the advisor’s Complex
Securities Committee). |
The
funds may use
various investment strategies such as hedging and other
related transactions. For example, a fund may
use derivative instruments
(such as options, futures, and swaps) for hedging purposes, including
hedging various market risks and managing the effective maturity or
duration of debt instruments held by the fund. In addition, these
strategies may be used to gain exposure to a particular security or securities
market. The funds also may
purchase and sell commodities and may
enter into swap contracts and other commodity-linked derivative
instruments, including
those linked to physical commodities. Please
refer to “Hedging and other strategic transactions risk” in the Statement
of Additional Information (SAI).
Because of
uncertainties under federal tax laws as to whether income from
commodity-linked derivative instruments and certain other instruments
would constitute qualifying income to a regulated investment
company, no fund is
permitted
to invest directly in such instruments
unless the manager obtains
prior written approval from the advisor’s
Complex Securities Committee. See “Additional information concerning
taxes” in the SAI.
Principal
risks of investing in the funds of funds
Unless
otherwise noted, in this section, references to a single fund apply
equally
to all of the funds.
An
investment in a fund is not a bank deposit and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government
agency. Each fund’s shares will go up and down in price, meaning
that you could lose money by investing in the fund. Many factors
influence a fund’s performance. A fund’s
investment strategy may not produce
the intended results.
Instability
in the financial markets has led many governments, including the U.S.
government, to take a number of unprecedented actions designed to
support certain financial institutions and segments of the financial
markets that have experienced extreme volatility and, in some cases, a
lack of liquidity. Federal, state, and other governments, and their
regulatory agencies or self-regulatory organizations, may take actions
that affect the regulation of the instruments in which a fund invests, or
the issuers of such instruments, in ways that are unforeseeable.
Legislation or regulation may also change the way in which each
fund itself is regulated. Such legislation or regulation could limit or
preclude each fund’s ability to achieve its investment objective. In
addition, political events within the United States and abroad
could
negatively
impact financial markets and each fund’s performance. Further,
certain municipalities of the United States and its territories are financially
strained and may face the possibility of default on their debt obligations,
which could directly or indirectly detract from each fund’s performance.
Governments
or their agencies may also acquire distressed assets from financial
institutions and acquire ownership interests in those institutions.
The implications of government ownership and disposition of these
assets are unclear, and such a program may have positive or negative
effects on the liquidity, valuation, and performance of each fund’s
portfolio holdings. Furthermore, volatile financial markets can expose each
fund to greater market and liquidity risk, increased transaction
costs, and potential difficulty in valuing portfolio instruments held by
each fund.
The
principal risks of investing in each fund are summarized in its fund
summary
above. Below are descriptions of the main factors that may play a role
in shaping a fund’s overall risk profile. The descriptions appear in
alphabetical order, not in order of importance. For further details
about fund risks, including additional risk factors that are not discussed
in this prospectus because they are not considered primary factors,
see the funds’ Statement of Additional Information (SAI).
Credit
and counterparty risk
This is the
risk that an issuer of a U.S. government security, the counterparty
to an over-the-counter (OTC) derivatives contract (see “Hedging,
derivatives and other strategic transactions risk”) or a borrower of
a fund’s securities will be unable or unwilling to make timely principal,
interest or settlement payments or to otherwise honor its obligations.
U.S. government securities are subject to varying degrees of credit risk
depending upon whether the securities are supported by the full faith
and credit of the United States; supported by the ability to borrow from
the U.S. Treasury; supported only by the credit of the issuing
U.S. government agency, instrumentality, or corporation; or otherwise
supported by the United States. For example, issuers of many types of
U.S. government securities (e.g., the Federal Home Loan Mortgage
Corporation (Freddie Mac), Federal National Mortgage Association
(Fannie Mae), and Federal Home Loan Banks), although chartered
or sponsored by Congress, are not funded by congressional appropriations,
and their fixed-income securities, including asset-backed
and mortgage-backed securities, are neither guaranteed nor insured
by the U.S. government. An agency of the U.S. government has placed
Fannie Mae and Freddie Mac into conservatorship, a statutory
process with the objective of returning the entities to normal business
operations. It is unclear what effect this conservatorship will have on the
securities issued or guaranteed by Fannie Mae or Freddie Mac. As a
result, these securities are subject to more credit risk than U.S.
government securities that are supported by the full faith and credit
of the
United States (e.g., U.S. Treasury bonds).
The fund is
exposed to credit risk to the extent it makes use of OTC derivatives
(such as forward foreign currency contracts and/or swap contracts)
and engages to a significant extent in the lending of fund securities
or the use of repurchase agreements. OTC derivatives transactions
can be closed out with the other party to the transaction. If the
counterparty defaults, a fund will have contractual remedies, but there is no
assurance that the counterparty will be able to meet its contractual
obligations or that, in the event of default, a fund will succeed in
enforcing them. A fund, therefore, assumes the risk that it may be
unable to obtain payments owed to it under OTC derivatives contracts
or that those payments may be delayed or made only after the fund has
incurred the costs of litigation. While the manager intends to monitor the
creditworthiness of contract counterparties, there can be no assurance
that the counterparty will be in a position to meet its obligations,
especially during unusually adverse market conditions.
Economic
and market events risk
Events in
certain sectors historically have resulted, and may in the future result, in
an unusually high degree of volatility in the financial markets, both
domestic and foreign. These events have included, but are not limited to:
bankruptcies, corporate restructurings, and other similar events;
governmental efforts to limit short selling and high frequency trading;
measures to address U.S. federal and state budget deficits;
social,
political, and economic instability in Europe; economic stimulus by the
Japanese central bank; dramatic changes in energy prices and currency
exchange rates; and China’s economic slowdown. Interconnected
global economies and financial markets increase the possibility
that conditions in one country or region might adversely impact
issuers in a different country or region. Both domestic and foreign
equity markets have experienced increased volatility and turmoil, with
issuers that have exposure to the real estate, mortgage, and credit markets
particularly affected. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions deteriorate.
In
addition, relatively high market volatility and reduced liquidity in credit
and
fixed-income markets may adversely affect many issuers worldwide. Actions
taken by the U.S. Federal Reserve (Fed) or foreign central banks to
stimulate or stabilize economic growth, such as interventions in currency
markets, could cause high volatility in the equity and fixed-income
markets. Reduced liquidity may result in less money being available
to purchase raw materials, goods, and services from emerging markets,
which may, in turn, bring down the prices of these economic staples. It
may also result in emerging-market issuers having more difficulty
obtaining financing, which may, in turn, cause a decline in their securities
prices.
In
addition, while interest rates have been unusually low in recent years
in the
United States and abroad, any decision by the Fed to adjust the target fed
funds rate, among other factors, could cause markets to experience
continuing high volatility. A significant increase in interest rates may
cause a decline in the market for equity securities. Also, regulators
have expressed concern that rate increases may contribute to price
volatility. These events and the possible resulting market volatility
may have an
adverse effect on the fund.
Political
turmoil within the United States and abroad may also impact the fund.
Although the U.S. government has honored its credit obligations,
it remains possible that the United States could default on its
obligations. While it is impossible to predict the consequences of such an
unprecedented event, it is likely that a default by the United States
would be highly disruptive to the U.S. and global securities markets and
could significantly impair the value of the fund’s investments.
Similarly, political events within the United States at times have
resulted, and may in the future result, in a shutdown of government services,
which could negatively affect the U.S. economy, decrease the value of
many fund investments, and increase uncertainty in or impair the
operation of the U.S. or other securities markets. The U.S. is also renegotiating
many of its global trade relationships and has imposed or threatened
to impose significant import tariffs. These actions could lead to price
volatility and overall declines in U.S. and global investment markets.
Uncertainties
surrounding the sovereign debt of a number of European
Union (EU)
countries
and the viability of the EU have disrupted and may in the
future disrupt markets in the United States and around the world. If one or
more countries leave the EU or the EU dissolves, the world’s securities
markets likely will be significantly disrupted. On January 31, 2020, the
United
Kingdom (UK) left the
EU, commonly referred to as “Brexit,”
and the UK
ceased to be a member of the EU. Following a transition
period during which the EU and the UK
Government engaged in a series
of negotiations regarding the terms of the UK’s future
relationship
with the EU, the EU and UK Government signed an agreement
on December 30, 2020 regarding the economic relationship between the
UK and the EU. This agreement became effective on a provisional
basis on January 1, 2021. There remains
significant market uncertainty
regarding Brexit’s ramifications, and the range and potential implications
of possible political, regulatory, economic, and market outcomes
are difficult to predict. This uncertainty may affect other countries
in the EU and elsewhere, and may cause volatility within the EU,
triggering prolonged economic downturns in certain countries within the EU. In
addition, Brexit may create additional and substantial economic
stresses for the UK, including a contraction of the UK economy and
price volatility in UK stocks, decreased trade, capital outflows,
devaluation of the British pound, wider corporate bond spreads due to
uncertainty and declines in business and consumer spending as well as
foreign direct investment. Brexit may also adversely affect UK-based
financial firms that have counterparties in the EU or participate
in market infrastructure (trading venues, clearing houses, settlement
facilities) based in the EU. Additionally, the spread of the novel
coronavirus (COVID-19) pandemic will stretch the resources and deficits of
many countries in the EU and throughout the world, increasing
the possibility
that countries may be unable to make timely payments
on their
sovereign debt. These events and the resulting market volatility
may have an adverse effect on the performance of the fund.
A
widespread health crisis such as a global pandemic could cause substantial
market volatility, exchange trading suspensions and closures,
which may
lead to less liquidity in certain instruments, industries,
sectors or the markets generally, and may ultimately affect
fund
performance. For example, the novel coronavirus (COVID-19)
pandemic
has
resulted in significant disruptions to global business activity.
The impact of a health crisis and other epidemics and pandemics
that may arise in the future, could affect the global economy in ways
that cannot necessarily be foreseen at the present time. A health crisis may
exacerbate other pre-existing political, social and economic risks. Any
such impact could adversely affect the fund’s performance, resulting
in losses to your investment.
The United
States has responded to the novel coronavirus (COVID-19) pandemic
and resulting economic distress with fiscal and monetary stimulus
packages. In late March 2020, the government passed the Coronavirus
Aid, Relief, and Economic Security Act, a stimulus package providing
for over $2.2 trillion in resources to small businesses, state and local
governments, and individuals that have been adversely impacted by
the COVID-19
pandemic. In late December 2020, the government
also passed a spending bill that included $900 billion in stimulus
relief for the COVID-19 pandemic. Further, in March 2021, the government
passed the American Rescue Plan Act of 2021, a $1.9 trillion
stimulus bill to accelerate the United States’ recovery from the economic
and health effects of the COVID-19 pandemic. In
addition, in mid-March
2020 the Fed cut interest rates to historically low levels and promised
unlimited and open-ended quantitative easing, including purchases
of corporate and municipal government bonds. The Fed also enacted
various programs to support liquidity operations and funding in the
financial markets, including expanding its reverse repurchase agreement
operations, adding $1.5 trillion of liquidity to the banking system,
establishing swap lines with other major central banks to provide
dollar funding, establishing a program to support money market funds,
easing various bank capital buffers, providing funding backstops
for
businesses to provide bridging loans for up to four years, and providing
funding to help credit flow in asset-backed securities markets. The Fed
also plans to extend credit to small- and medium-sized businesses.
Political
and military events, including in North Korea, Venezuela, Iran, Syria, and
other areas of the Middle East, and nationalist unrest in Europe and
South America, also may cause market disruptions.
In
addition, there is a risk that the prices of goods and services in the
United
States and many foreign economies may decline over time, known as
deflation. Deflation may have an adverse effect on stock prices and
creditworthiness and may make defaults on debt more likely. If a country’s
economy slips into a deflationary pattern, it could last for a prolonged
period and may be difficult to reverse.
ESG
integration risk
The manager
may consider ESG factors that it deems relevant or additive,
along with other material factors and analysis, when managing a fund.
The portion
of a fund’s investments for which the manager considers
these ESG factors may vary, and could increase or decrease over
time. In certain
situations, the dimensions for which these ESG factors may
be applied according to the manager’s integrated investment
process may not include U.S. Treasuries, government securities,
or other broad asset class exposures. ESG factors may include,
but are not limited to, matters regarding board diversity, climate change
policies, and supply chain and human rights policies. Incorporating
ESG criteria and making investment decisions based on certain ESG
characteristics, as determined by the manager, carries the risk that a
fund may perform differently, including underperforming, funds that
do not utilize ESG criteria or an ESG investment strategy. Integration
of ESG factors into a fund’s investment process may result in a manager
making different investments for a fund than for a fund with a similar
investment universe and/or investment style that does not incorporate
such considerations in its investment strategy or processes, and a
fund’s investment performance may be affected depending on whether
such investments are in or out of favor with the market.
The ESG
characteristics utilized in a fund’s investment process may change over
time, and different ESG characteristics may be relevant to different
investments. Although the manager has established its own structure
to oversee ESG integration in accordance with the fund’s investment
objective and strategies, successful integration of ESG factors
will depend on the manager’s skill in researching and identifying these
factors as well as the availability of relevant data. The method of evaluating
ESG factors and subsequent impact on portfolio composition, performance,
proxy voting decisions and other factors, is subject to the interpretation
of the manager in accordance with the fund’s investment objective
and strategies. ESG factors may be evaluated differently by different
managers, and may not carry the same meaning to all investors and
managers. The manager may also employ active shareowner engagement
to raise ESG issues with the management of select portfolio companies.
Exchange-traded
funds risk
ETFs are a
type of investment company bought and sold on a securities exchange.
A fund
could purchase shares of
an ETF to
gain
exposure to a portion of
the U.S. or a foreign market.
The risks
of owning shares of
an
ETF
include
the risks
of directly
owning the
underlying securities
and
other
instruments the ETF holds. A lack of
liquidity in an ETF (e.g.,
absence of
an active trading market) could
result in the ETF
being more
volatile
than its underlying securities.
The existence of extreme market volatility
or potential lack of an active trading market for an ETF’s shares could
result in the
ETF’s shares
trading at a significant premium or discount to
its NAV. An ETF has
its own fees and expenses, which are indirectly
borne by the fund. A fund may
also incur brokerage and other related
costs when it purchases and sells ETFs. Also, in the case of passively-managed
ETFs, there is a risk that an ETF may fail to closely track the
index or market segment that it is designed to track due to delays
in the
ETF’s implementation
of changes to the composition of the index or
other factors.
Exchange-traded
notes risk
ETNs are a
type of unsecured, unsubordinated debt security that have characteristics
and risks similar to those of fixed-income securities and trade on a
major exchange similar to shares of ETFs. This type of debt security
differs, however, from other types of bonds and notes because ETN returns
are based upon the performance of a market index minus applicable
fees, no period coupon payments are distributed, and no principal
protections exist. The purpose of ETNs is to create a type of security
that combines the aspects of both bonds and ETFs. The value of an ETN may
be influenced by time to maturity; level of supply and demand for
the ETN; volatility and lack of liquidity in underlying commodities
or securities markets; changes in the applicable interest rates;
changes in the issuer’s credit rating; and economic, legal, political,
or geographic events that affect the referenced commodity or security.
The fund’s decision to sell its ETN holdings also may be limited by the
availability of a secondary market. If the fund must sell some or all
of its ETN
holdings and the secondary market is weak, it may have to sell such
holdings at a discount. If the fund holds its investment in an ETN until
maturity, the issuer will give the fund a cash amount that would be equal to
the principal amount (subject to the day’s index factor). ETNs are also
subject to counterparty credit risk and fixed-income risk.
Fund
of funds risk
The fund’s
ability to achieve its investment objective will depend largely, in part,
on: (i) the underlying funds’ performance, expenses, and ability to meet
their investment objectives; and (ii) properly rebalancing assets among
underlying funds and different asset classes. The fund is also subject to
risks related to: (i) layering of fees of the underlying funds; and (ii)
conflicts of interest associated with the subadvisor’s ability to allocate
fund assets without limit to other funds it advises and/or other funds
advised by affiliated subadvisors. There is no assurance that either
the fund or
the underlying funds will achieve their investment objectives.
Affiliated
subadvised fund conflicts of interest risk
The
subadvisor may allocate the fund’s assets without limit to underlying
funds
managed by the subadvisor and/or other affiliated subadvisors (affiliated
subadvised funds). Accordingly, rebalancings of the assets of the fund
present a conflict of interest because there is an incentive for the
subadvisor to allocate assets to the subadvisor and other affiliated
subadvised
funds rather than underlying funds managed by unaffiliated subadvisors.
In this regard, the subadvisor and other affiliated subadvisors
of affiliated subadvised funds benefit from the subadvisor’s allocations
of fund assets to such funds through the additional subadvisory
fees they earn on such allocated fund assets. The
subadvisor
has a duty to allocate assets only to underlying funds it has determined
are in the best interests of shareholders, and make allocations
to affiliated subadvised funds on this basis without regard to any such
economic incentive. As part of its oversight of the fund and the subadvisor,
the advisor will monitor to ensure that allocations are conducted
in accordance with these principles.
Multi-manager
risk; limited universe of subadvisors and underlying funds
The fund’s
ability to achieve its investment objective depends upon the subadvisor’s
skill in determining the fund’s strategic allocation to investment
strategies and in selecting the best mix of underlying funds. The
allocation of investments among the different subadvisors managing underlying
funds with different styles and asset classes, such as equity, debt, U.S.,
or foreign securities, may have a more significant effect on the
performance of a fund of funds when one of these investments is performing
more poorly than the other. There is no assurance that allocation
decisions will result in the desired effects. Investment decisions
made by the subadvisor may cause a fund of funds to incur losses or
to miss profit opportunities on which it might otherwise have capitalized.
Moreover, at times, the subadvisor may invest fund assets in underlying
funds managed by a limited number of subadvisors. In such circumstances,
the fund’s performance could be substantially dependent
on the performance of these subadvisors. Similarly, the subadvisor’s
allocation of a fund of fund’s assets to a limited number of underlying
funds may adversely affect the performance of the fund of funds, and,
in such circumstances, it will be more sensitive to the performance
and risks associated with those funds and any investments in which
such underlying funds focus.
Hedging,
derivatives, and other strategic transactions risk
The ability
of a fund to utilize hedging, derivatives, and other strategic transactions
to benefit the fund will depend in part on its manager’s ability to
predict pertinent market movements and market risk, counterparty
risk, credit risk, interest-rate risk, and other risk factors, none of
which can be assured. The skills required to utilize hedging and other
strategic transactions are different from those needed to select a fund’s
securities. Even if the manager only uses hedging and other strategic
transactions in a fund primarily for hedging purposes or to gain exposure to
a particular securities market, if the transaction does not have the
desired outcome, it could result in a significant loss to a fund. The amount
of loss could be more than the principal amount invested. These
transactions may also increase the volatility of a fund and may involve a
small investment of cash relative to the magnitude of the risks assumed,
thereby magnifying the impact of any resulting gain or loss. For
example, the potential loss from the use of futures can exceed a fund’s
initial investment in such contracts. In addition, these transactions
could result in a loss to a fund if the counterparty to the transaction
does not perform as promised.
A fund may
invest in derivatives, which are financial contracts with a value that
depends on, or is derived from, the value of underlying assets, reference
rates, or indexes. Derivatives may relate to stocks, bonds, interest
rates, currencies or currency exchange rates, and related indexes. A
fund may use derivatives for many purposes, including for hedging and
as a substitute for direct investment in securities or other assets.
Derivatives may be used in a way to efficiently adjust the exposure of
a fund to various securities, markets, and currencies without a fund
actually having to sell existing investments and make new
investments.
This generally will be done when the adjustment is expected to
be relatively temporary or in anticipation of effecting the sale of
fund assets and making new investments over time. Further, since many
derivatives have a leverage component, adverse changes in the value
or level of the underlying asset, reference rate, or index can result in a
loss substantially greater than the amount invested in the derivative
itself. Certain derivatives have the potential for unlimited loss, regardless
of the size of the initial investment. When a fund uses derivatives
for leverage, investments in that fund will tend to be more volatile,
resulting in larger gains or losses in response to market changes. To
limit risks associated with leverage, a fund may segregate assets
determined to be liquid or, as permitted by applicable regulation, enter into
certain offsetting positions to cover its obligations under derivative
instruments. For a description of the various derivative instruments
the fund may utilize, refer to the SAI.
The
regulation of the U.S. and non-U.S. derivatives markets has undergone
substantial change in recent years and such change may continue.
In particular, the Dodd-Frank Wall Street Reform and Consumer
Protection Act, and regulations
promulgated or proposed thereunder
require many derivatives to be cleared and traded on an exchange,
expand entity registration requirements, impose business conduct
requirements on dealers that enter into swaps with a pension plan,
endowment, retirement plan or government entity, and required banks to
move some derivatives trading units to a non-guaranteed affiliate
separate from the deposit-taking bank or divest them altogether. Although
the Commodity Futures Trading Commission (CFTC) has released
final rules relating to clearing, reporting, recordkeeping and registration
requirements under the legislation, many of the provisions are subject
to further final rule making, and thus its ultimate impact remains
unclear. New regulations could, among other things, restrict a
fund’s
ability to engage in derivatives transactions (for example, by making
certain types of derivatives transactions no longer available to the fund)
and/or increase the costs of such derivatives transactions (for example, by
increasing margin or capital requirements), and a fund may
be unable
to fully execute its investment strategies as a result. Limits or restrictions
applicable to the counterparties with which a fund
engages in
derivative transactions also could prevent the fund from using these
instruments
or affect the pricing or other factors relating to these instruments,
or may change the availability of certain investments.
In
addition, new Rule 18f-4 (the Derivatives Rule), adopted by the SEC on
October 28,
2020, replaces current asset segregation requirements with a new
framework for the use of derivatives by registered funds. For funds using
a significant amount of derivatives, the Derivatives Rule mandates a
fund adopt and/or implement: (i) value at risk limitations in lieu of
asset segregation requirements; (ii) a written derivatives risk management
program; (iii) new Board oversight responsibilities; and (iv) new
reporting and recordkeeping requirements. The Derivatives Rule provides an
exception for funds with derivative exposure not exceeding 10% of its
net assets, excluding certain currency and interest rate hedging
transactions. In addition, the Derivatives Rule provides special treatment
for reverse repurchase agreements and similar financing transactions
and unfunded commitment agreements. Funds will be required to
comply with the Derivatives Rule starting on August 19, 2022.
At any time
after the date of this prospectus, legislation may be enacted that could
negatively affect the assets of a fund.
Legislation or regulation may change
the way in which a fund
itself is regulated. The advisor cannot
predict the effects of any new governmental regulation that may be
implemented, and there can be no assurance that any new governmental
regulation will not adversely affect a fund’s
ability to achieve its
investment objectives.
The use of
derivative instruments may involve risks different from, or potentially
greater than, the risks associated with investing directly in securities
and other, more traditional assets. In particular, the use of derivative
instruments exposes a fund to the risk that the counterparty to an OTC
derivatives contract will be unable or unwilling to make timely settlement
payments or otherwise honor its obligations. OTC derivatives transactions
typically can only be closed out with the other party to the transaction,
although either party may engage in an offsetting transaction
that puts that party in the same economic position as if it had closed
out the transaction with the counterparty or may obtain the other
party’s consent to assign the transaction to a third party. If the counterparty
defaults, the fund will have contractual remedies, but there is no
assurance that the counterparty will meet its contractual obligations
or that, in the event of default, the fund will succeed in enforcing
them. For example, because the contract for each OTC derivatives
transaction is individually negotiated with a specific counterparty,
a fund is subject to the risk that a counterparty may interpret
contractual terms (e.g., the definition of default) differently than the
fund when the fund seeks to enforce its contractual rights. If that
occurs, the cost and unpredictability of the legal proceedings required
for the fund to enforce its contractual rights may lead it to decide not
to pursue its claims against the counterparty. The fund, therefore,
assumes the risk that it may be unable to obtain payments owed to it
under OTC derivatives contracts or that those payments may be delayed
or made only after the fund has incurred the costs of litigation.
While a manager intends to monitor the creditworthiness of counterparties,
there can be no assurance that a counterparty will meet its
obligations, especially during unusually adverse market conditions. To the
extent a fund contracts with a limited number of counterparties, the fund’s
risk will be concentrated and events that affect the creditworthiness
of any of those counterparties may have a pronounced effect on
the fund. Derivatives are also subject to a number of other risks,
including market risk and liquidity risk. Since the value of derivatives
is calculated and derived from the value of other assets, instruments,
or references, there is a risk that they will be improperly valued.
Derivatives also involve the risk that changes in their value may not
correlate perfectly with the assets, rates, or indexes they are designed to
hedge or closely track. Suitable derivatives transactions may not be
available in all circumstances. The fund is also subject to the risk that
the counterparty closes out the derivatives transactions upon the
occurrence of certain triggering events. In addition, a manager may determine
not to use derivatives to hedge or otherwise reduce risk exposure.
Government legislation or regulation could affect the use of derivatives
transactions and could limit a fund’s ability to pursue its investment
strategies.
A detailed
discussion of various hedging and other strategic transactions
appears in the SAI. To the
extent that a fund utilizes the following
list of
certain derivatives and other strategic transactions,
it will be
subject to associated risks. The main risks of each appear
below.
|
Credit
default swaps.
Counterparty risk, liquidity risk (i.e., the inability
to enter into closing transactions), interest-rate risk, risk of
default
of the underlying reference obligation, and risk of disproportionate
loss are the principal risks of engaging in transactions
involving credit default swaps. |
|
Foreign
currency forward contracts.
Counterparty risk, liquidity risk
(i.e., the inability to enter into closing transactions), foreign
currency
risk, and risk of disproportionate loss are the principal risks
of
engaging in transactions involving foreign currency forward contracts. |
|
Futures
contracts.
Counterparty risk, liquidity risk (i.e., the inability to
enter into closing transactions), and risk of disproportionate loss
are
the principal risks of engaging in transactions involving futures
contracts. |
|
Interest-rate
swaps.
Counterparty risk, liquidity risk (i.e., the inability
to enter into closing transactions), interest-rate risk, and risk
of
disproportionate loss are the principal risks of engaging in transactions
involving interest-rate swaps. |
|
Options.
Counterparty risk, liquidity risk (i.e., the inability to enter
into
closing transactions), and risk of disproportionate loss are the
principal
risks of engaging in transactions involving options. Counterparty
risk does not apply to exchange-traded
options. |
Investment
company securities risk
A fund may
invest in securities of other investment companies. Fund shareholders
indirectly bear their proportionate share of the expenses of each such
investment company. The total return on such investments will be
reduced by the operating expenses and fees of such other investment
companies, including advisory fees. Investments in closed-end
funds may involve the payment of substantial premiums above the
value of such investment companies’ portfolio securities.
Lifecycle
risk
There is no
guarantee that the managers will correctly predict the market or
economic conditions and, as with other mutual fund investments,
you could lose money even if the fund is at or close to its designated
retirement year or in its post-retirement stage.
Operational
and cybersecurity risk
With the
increased use of technologies, such as mobile devices and “cloud”-based
service offerings and the dependence on the internet and computer
systems to perform necessary business functions, the fund’s service
providers are susceptible to operational and information or cybersecurity
risks that could result in losses to the fund and its shareholders.
Intentional cybersecurity breaches include unauthorized access to
systems, networks, or devices (such as through “hacking” activity or
“phishing”); infection from computer viruses or other malicious
software code; and attacks that shut down, disable, slow, or otherwise
disrupt operations, business processes, or website access or functionality.
Cyber-attacks can also be carried out in a manner that does not
require gaining unauthorized access, such as causing denial-of-service
attacks on the service providers’ systems or websites rendering
them unavailable to intended users or via “ransomware” that renders the
systems inoperable until appropriate actions are taken. In addition,
unintentional incidents can occur, such as the inadvertent release of
confidential information (possibly resulting in the violation of applicable
privacy laws).
A
cybersecurity breach could result in the loss or theft of customer data
or funds,
loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system
repairs. Such incidents could cause a fund, the advisor, a manager, or
other service providers to incur regulatory penalties, reputational
damage, additional compliance costs, litigation costs or financial
loss. In addition, such incidents could affect issuers in which a fund
invests, and thereby cause the fund’s investments to lose value.
Cyber-events
have the potential to materially affect the fund and the advisor’s
relationships with accounts, shareholders, clients, customers, employees,
products, and service providers. The fund has established risk
management systems reasonably designed to seek to reduce the risks
associated with cyber-events. There is no guarantee that the fund will be
able to prevent or mitigate the impact of any or all cyber-events.
The fund is
exposed to operational risk arising from a number of factors, including,
but not limited to, human error, processing and communication
errors, errors of the fund’s service providers, counterparties,
or other third parties, failed or inadequate processes and
technology or system failures.
In
addition, other disruptive events, including (but not limited to) natural
disasters
and public health crises (such as the novel coronavirus (COVID-19)
pandemic), may adversely affect the fund’s ability to conduct business,
in particular if the fund’s employees or the employees of its service
providers are unable or unwilling to perform their responsibilities as a result
of any such event. Even if the fund’s employees and the employees
of its service providers are able to work remotely, those remote work
arrangements could result in the fund’s business operations
being less efficient than under normal circumstances, could lead to
delays in its processing of transactions, and could increase the risk of
cyber-events.
Short
sales risk
A fund may
make short sales of securities. This means a fund may sell a security
that it does not own in anticipation of a decline in the market value of
the security. A fund generally borrows the security to deliver to the buyer
in a short sale. The fund must then buy the security at its market
price when the borrowed security must be returned to the lender. Short sales
involve costs and risk. The fund must pay the lender interest on a
security it borrows, and the fund will lose money if the price of the
borrowed
security increases between the time of the short sale and the date when
the fund replaces the borrowed security. Further, if other short
positions of the same security are closed out at the same time, a “short
squeeze” can occur where demand exceeds the supply for the security
sold short. A short squeeze makes it more likely that the fund will need
to replace the borrowed security at an unfavorable price. A fund may also
make short sales “against the box.” In a short sale against the box, at the
time of sale, the fund owns or has the right to acquire the identical
security, or one equivalent in kind or amount, at no additional cost.
Subject to
regulatory requirements, until a fund closes its short position or replaces
a borrowed security, a fund will (i) segregate with its custodian
cash or other liquid assets at such a level that the amount segregated
plus the amount deposited with the lender as collateral will equal the
current market value of the security sold short or (ii) otherwise cover its
short position. The need to maintain cash or other liquid assets
in
segregated accounts could limit the fund’s ability to pursue other opportunities
as they arise.
Target
allocation risk
The target
allocation chart illustrates the fund’s target allocation between
equity and fixed-income securities. When the fund has a greater asset mix
of equity securities, it will be less conservative and have more equity
securities risk exposure. These risks are explained under “Equity securities
risk.” Over time, as the fund gets closer to its target date, its asset mix
becomes more conservative as it contains more fixed-income and
short-term fixed-income securities. The risks associated with fixed-income
and short-term fixed-income securities are explained under “Fixed-income
securities risk,” “Interest-rate risk,” “Credit and counterparty
risk,” and “Lower-rated and high-yield fixed-income securities
risk.” The fund’s transformation reflects the need to reduce investment
risk as retirement approaches and the need for lower volatility
since the fund may be a primary source of income for an investor
after retirement.
Principal
risks of investing in the underlying funds
By owning
shares of underlying funds, the fund indirectly invests, to varying
degrees, in equity securities of U.S. companies, including small- and
medium-sized companies, and in fixed-income securities. Many of the
underlying funds also invest in foreign securities. In addition, most of
the
underlying funds may invest in derivatives. To the extent that the fund
invests directly in these securities or investments, the fund will be
subject to
the same risks. In this section, an underlying fund is referred to as a
fund.
Commodity
risk
The market
price of commodity investments may be volatile due to fluctuating
demand, supply disruption, speculation, and other factors. Certain
commodity investments may have no active trading market at times. The
value of commodities investments will generally be affected by overall
market movements and factors specific to a particular industry or
commodity, which may include weather, embargoes, tariffs, and health,
political, international and regulatory developments. Economic
and other events (whether real or perceived) can reduce the demand for
commodities, which may reduce market prices and cause the value
of shares of the fund to fall. Exposure to commodities and commodities
markets may subject the fund to greater volatility than investments
in traditional securities. Certain types of commodities instruments
(such as total return swaps and commodity-linked notes) are subject
to the risk that the counterparty to the instrument will not perform or
will be unable to perform in accordance with the terms of the instrument.
Commodities
markets generally, and the energy sector specifically, have been
adversely impacted by the reduced demand for oil and other commodities
as a result of the slowdown in economic activity resulting from the
spread of the novel coronavirus (COVID-19) pandemic. Recently,
global oil prices have declined significantly and experienced significant
volatility, including a period where an oil-price futures contract
fell into negative territory for the first time in history, as demand for
oil has slowed and oil storage facilities reach their storage capacities.
The impact on such commodities markets may last for an extended
period of time.
Credit
and counterparty risk
This is the
risk that an issuer of a U.S. government security, the issuer or guarantor
of a fixed-income security, the counterparty to an over-the-counter
(OTC) derivatives contract (see “Hedging, derivatives, and other
strategic transactions risk”), or a borrower of a fund’s securities
will be unable or unwilling to make timely principal, interest, or settlement
payments, or to otherwise honor its obligations. Credit risk associated
with investments in fixed-income securities relates to the ability of
the issuer to make scheduled payments of principal and interest on
an obligation. A fund that invests in fixed-income securities is subject to
varying degrees of risk that the issuers of the securities will have their
credit ratings downgraded or will default, potentially reducing the fund’s
share price and income level. Nearly all fixed-income securities
are subject to some credit risk, which may vary depending upon
whether the issuers of the securities are corporations, domestic or
foreign
governments, or their subdivisions or instrumentalities. U.S. government
securities are subject to varying degrees of credit risk depending
upon whether the securities are supported by the full faith and credit
of the United States; supported by the ability to borrow from the U.S.
Treasury; supported only by the credit of the issuing U.S. government
agency, instrumentality, or corporation; or otherwise supported
by the United States. For example, issuers of many types of U.S.
government securities (e.g., the Federal Home Loan Mortgage Corporation
(Freddie Mac), Federal National Mortgage Association (Fannie
Mae), and Federal Home Loan Banks), although chartered or sponsored
by Congress, are not funded by congressional appropriations, and their
fixed-income securities, including asset-backed and mortgage-backed
securities, are neither guaranteed nor insured by the U.S.
government. An agency of the U.S. government has placed Fannie Mae and
Freddie Mac into conservatorship, a statutory process with the objective
of returning the entities to normal business operations. It is unclear
what effect this conservatorship will have on the securities issued or
guaranteed by Fannie Mae or Freddie Mac. As a result, these securities
are subject to more credit risk than U.S. government securities
that are supported by the full faith and credit of the United States
(e.g., U.S. Treasury bonds). When a fixed-income security is not rated, a
manager may
have to assess the risk of the security itself. Asset-backed
securities, whose principal and interest payments are supported
by pools of other assets, such as credit card receivables and automobile
loans, are subject to further risks, including the risk that the obligors of
the underlying assets default on payment of those assets.
Funds that
invest in below-investment-grade securities, also called junk bonds
(e.g., fixed-income securities rated Ba or lower by Moody’s Investors
Service, Inc. or BB or lower by S&P
Global Ratings or Fitch
Ratings, as
applicable, at the
time of investment, or determined by a manager to
be of comparable quality to securities so rated) are
subject to
increased credit risk. The sovereign debt of many foreign governments,
including their subdivisions and instrumentalities, falls into this
category. Below-investment-grade securities offer the potential for higher
investment returns than higher-rated securities, but they carry greater
credit risk: their issuers’
continuing ability to meet principal and interest
payments is considered speculative, they are more susceptible to real or
perceived adverse economic and competitive industry conditions,
and they may be less liquid than higher-rated securities.
In
addition, a fund is exposed to credit risk to the extent that it makes
use of OTC
derivatives (such as forward foreign currency contracts and/
or swap
contracts) and engages to a significant extent in the lending of fund
securities or the use of repurchase agreements. OTC derivatives transactions
can be closed out with the other party to the transaction. If the
counterparty defaults, a fund will have contractual remedies, but there is no
assurance that the counterparty will be able to meet its contractual
obligations or that, in the event of default, a fund will succeed in
enforcing them. A fund, therefore, assumes the risk that it may be
unable to obtain payments owed to it under OTC derivatives contracts
or that those payments may be delayed or made only after the fund has
incurred the costs of litigation. While managers
monitor the creditworthiness
of contract counterparties, there can be no assurance that the
counterparty will be in a position to meet its obligations, especially
during unusually adverse market conditions.
Economic
and market events risk
Events in
certain sectors historically have resulted, and may in the future result, in
an unusually high degree of volatility in the financial markets, both
domestic and foreign. These events have included, but are not limited to:
bankruptcies, corporate restructurings, and other similar events;
governmental efforts to limit short selling and high frequency trading;
measures to address U.S. federal and state budget deficits; social,
political, and economic instability in Europe; economic stimulus by the
Japanese central bank; dramatic changes in energy prices and currency
exchange rates; and China’s economic slowdown. Interconnected
global economies and financial markets increase the possibility
that conditions in one country or region might adversely impact
issuers in a different country or region. Both domestic and foreign
equity markets have experienced increased volatility and turmoil, with
issuers that have exposure to the real estate, mortgage, and credit markets
particularly affected. Banks and financial services companies could
suffer losses if interest rates rise or economic conditions deteriorate.
In
addition, relatively high market volatility and reduced liquidity in credit
and
fixed-income markets may adversely affect many issuers worldwide. Actions
taken by the U.S. Federal Reserve (Fed) or foreign central banks to
stimulate or stabilize economic growth, such as interventions in currency
markets, could cause high volatility in the equity and fixed-income
markets. Reduced liquidity may result in less money being available
to purchase raw materials, goods, and services from emerging markets,
which may, in turn, bring down the prices of these economic staples. It
may also result in emerging-market issuers having more difficulty
obtaining financing, which may, in turn, cause a decline in their securities
prices.
In
addition, while interest rates have been unusually low in recent years
in the
United States and abroad, any decision by the Fed to adjust the target fed
funds rate, among other factors, could cause markets to experience
continuing high volatility. A significant increase in interest rates may
cause a decline in the market for equity securities. Also, regulators
have expressed concern that rate increases may contribute to price
volatility. These events and the possible resulting market volatility
may have an
adverse effect on the fund.
Political
turmoil within the United States and abroad may also impact the fund.
Although the U.S. government has honored its credit obligations,
it remains possible that the United States could default on its
obligations. While it is impossible to predict the consequences of such an
unprecedented event, it is likely that a default by the United
States
would be highly disruptive to the U.S. and global securities markets and
could significantly impair the value of the fund’s investments.
Similarly, political events within the United States at times have
resulted, and may in the future result, in a shutdown of government services,
which could negatively affect the U.S. economy, decrease the value of
many fund investments, and increase uncertainty in or impair the
operation of the U.S. or other securities markets. The U.S. is also renegotiating
many of its global trade relationships and has imposed or threatened
to impose significant import tariffs. These actions could lead to price
volatility and overall declines in U.S. and global investment markets.
Uncertainties
surrounding the sovereign debt of a number of European
Union (EU)
countries
and the viability of the EU have disrupted and may in the
future disrupt markets in the United States and around the world. If one or
more countries leave the EU or the EU dissolves, the world’s securities
markets likely will be significantly disrupted. On January 31, 2020, the
United
Kingdom (UK) left the
EU, commonly referred to as “Brexit,”
and the UK
ceased to be a member of the EU. Following a transition
period during which the EU and the UK
Government engaged in a series
of negotiations regarding the terms of the UK’s future relationship
with the EU, the EU and UK Government signed an agreement
on December 30, 2020 regarding the economic relationship between the
UK and the EU. This agreement became effective on a provisional
basis on January 1, 2021. There remains
significant market uncertainty
regarding Brexit’s ramifications, and the range and potential implications
of possible political, regulatory, economic, and market outcomes
are difficult to predict. This uncertainty may affect other countries
in the EU and elsewhere, and may cause volatility within the EU,
triggering prolonged economic downturns in certain countries within the EU. In
addition, Brexit may create additional and substantial economic
stresses for the UK, including a contraction of the UK economy and
price volatility in UK stocks, decreased trade, capital outflows,
devaluation of the British pound, wider corporate bond spreads due to
uncertainty and declines in business and consumer spending as well as
foreign direct investment. Brexit may also adversely affect UK-based
financial firms that have counterparties in the EU or participate
in market infrastructure (trading venues, clearing houses, settlement
facilities) based in the EU. Additionally, the spread of the novel
coronavirus (COVID-19) pandemic will stretch the resources and deficits of
many countries in the EU and throughout the world, increasing
the possibility
that countries may be unable to make timely payments
on their
sovereign debt. These events and the resulting market volatility
may have an adverse effect on the performance of the fund.
A
widespread health crisis such as a global pandemic could cause substantial
market volatility, exchange trading suspensions and closures,
which may
lead to less liquidity in certain instruments, industries,
sectors or the markets generally, and may ultimately affect
fund
performance. For example, the novel coronavirus (COVID-19)
pandemic
has
resulted in significant disruptions to global business activity.
The impact of a health crisis and other epidemics and pandemics
that may arise in the future, could affect the global economy in ways
that cannot necessarily be foreseen at the present time. A health crisis may
exacerbate other pre-existing political, social and economic risks. Any
such impact could adversely affect the fund’s performance, resulting
in losses to your investment.
The United
States has responded to the novel coronavirus (COVID-19) pandemic
and resulting economic distress with fiscal and monetary stimulus
packages. In late March 2020, the government passed the Coronavirus
Aid, Relief, and Economic Security Act, a stimulus package providing
for over $2.2 trillion in resources to small businesses, state and local
governments, and individuals that have been adversely impacted by
the COVID-19
pandemic. In late December 2020, the government
also passed a spending bill that included $900 billion in stimulus
relief for the COVID-19 pandemic. Further, in March 2021, the government
passed the American Rescue Plan Act of 2021, a $1.9 trillion
stimulus bill to accelerate the United States’ recovery from the economic
and health effects of the COVID-19 pandemic. In
addition, in mid-March
2020 the Fed cut interest rates to historically low levels and promised
unlimited and open-ended quantitative easing, including purchases
of corporate and municipal government bonds. The Fed also enacted
various programs to support liquidity operations and funding in the
financial markets, including expanding its reverse repurchase agreement
operations, adding $1.5 trillion of liquidity to the banking system,
establishing swap lines with other major central banks to provide
dollar funding, establishing a program to support money market funds,
easing various bank capital buffers, providing funding backstops for
businesses to provide bridging loans for up to four years, and providing
funding to help credit flow in asset-backed securities markets. The Fed
also plans to extend credit to small- and medium-sized businesses.
Political
and military events, including in North Korea, Venezuela, Iran, Syria, and
other areas of the Middle East, and nationalist unrest in Europe and
South America, also may cause market disruptions.
In
addition, there is a risk that the prices of goods and services in the
United
States and many foreign economies may decline over time, known as
deflation. Deflation may have an adverse effect on stock prices and
creditworthiness and may make defaults on debt more likely. If a country’s
economy slips into a deflationary pattern, it could last for a prolonged
period and may be difficult to reverse.
Equity
securities risk
Common and
preferred stocks represent equity ownership in a company. Stock
markets are volatile. The price of equity securities will fluctuate,
and can
decline and reduce the value of a fund investing in equities. The price of
equity securities fluctuates based on changes in a company’s financial
condition and overall market and economic conditions. The value of
equity securities purchased by a fund could decline if the financial
condition of the companies in which the fund is invested declines,
or if overall market and economic conditions deteriorate. An issuer’s
financial condition could decline as a result of poor management decisions,
competitive pressures, technological obsolescence, undue reliance on
suppliers, labor issues, shortages, corporate restructurings, fraudulent
disclosures, irregular
and/or unexpected trading activity among
retail investors, or other
factors. Changes in the financial condition
of a single issuer can impact the market as a whole.
Even a fund
that invests in high-quality, or blue chip, equity securities, or securities
of established companies with large market capitalizations (which
generally have strong financial characteristics), can be negatively impacted by
poor overall market and economic conditions. Companies with large
market capitalizations may also have less growth potential
than
smaller companies and may be less able to react quickly to changes in
the marketplace.
A fund
generally does not attempt to time the market. Because of its exposure to
equities, the possibility that stock market prices in general will
decline over short or extended periods subjects the fund to unpredictable
declines in the value of its investments, as well as periods of poor
performance.
|
Growth
investment
style risk.
Certain equity securities (generally referred
to as growth securities) are purchased primarily because a manager
believes that these securities will experience relatively rapid
earnings growth. Growth securities typically trade at higher multiples
of current earnings than other securities. Growth securities are
often more sensitive to market fluctuations than other securities
because
their market prices are highly sensitive to future earnings expectations.
At times when it appears that these expectations may not
be met, growth stock prices typically
fall. |
|
Value
investment
style risk.
Certain equity securities (generally referred
to as value securities) are purchased primarily because they are
selling at prices below what the
manager
believes to be their fundamental
value and not necessarily because the issuing companies
are expected to experience significant earnings growth. The fund
bears the risk that the companies that issued these securities
may not overcome the adverse business developments or other
factors causing their securities to be perceived by the manager
to be
underpriced or that the market may never come to recognize their
fundamental value. A value security may
not increase in price, as
anticipated by
the manager
investing in such securities, if other investors
fail to recognize the company’s value and bid up the price or
invest in markets favoring faster growing companies. The
fund’s strategy
of investing in value securities also
carries the risk that in certain
markets, value securities will
underperform growth securities. In
addition, securities issued by U.S. entities with substantial
foreign operations may involve risks relating to economic,
political or regulatory conditions in foreign
countries. |
ESG
integration risk
The manager
may consider ESG factors that it deems relevant or additive,
along with other material factors and analysis, when managing a fund.
The portion
of a fund’s investments for which the manager considers
these ESG factors may vary, and could increase or decrease over
time. In certain
situations, the dimensions for which these ESG factors may
be applied according to the manager’s integrated investment
process may not include U.S. Treasuries, government securities,
or other broad asset class exposures. ESG factors may include,
but are not limited to, matters regarding board diversity, climate change
policies, and supply chain and human rights policies. Incorporating
ESG criteria and making investment decisions based on certain ESG
characteristics, as determined by the manager, carries the risk that a
fund may perform differently, including underperforming, funds that
do not utilize ESG criteria or an ESG investment strategy. Integration
of ESG factors into a fund’s investment process may result in a manager
making different investments for a fund than for a fund with a similar
investment universe and/or investment style that does not incorporate
such considerations in its investment strategy or processes, and a
fund’s investment performance may be affected depending on whether
such investments are in or out of favor with the market.
The ESG
characteristics utilized in a fund’s investment process may change over
time, and different ESG characteristics may be relevant to different
investments. Although the manager has established its own structure
to oversee ESG integration in accordance with the fund’s investment
objective and strategies, successful integration of ESG factors
will depend on the manager’s skill in researching and identifying these
factors as well as the availability of relevant data. The method of evaluating
ESG factors and subsequent impact on portfolio composition, performance,
proxy voting decisions and other factors, is subject to the interpretation
of the manager in accordance with the fund’s investment objective
and strategies. ESG factors may be evaluated differently by different
managers, and may not carry the same meaning to all investors and
managers. The manager may also employ active shareowner engagement
to raise ESG issues with the management of select portfolio companies.
Fixed-income
securities risk
Fixed-income
securities are generally subject to two principal types of risk, as
well as other risks described below: (1) interest-rate risk and (2) credit
quality risk.
|
Interest-rate
risk.
Fixed-income securities are affected by changes in
interest rates. When interest rates decline, the market value of
fixed-income
securities generally can be expected to rise. Conversely,
when interest rates rise, the market value of fixed-income
securities generally can be expected to decline. The longer
the duration or maturity of a fixed-income security, the more susceptible
it is to interest-rate risk. Recent and potential future changes
in government monetary policy may affect the level of interest
rates. |
|
The
fixed-income securities market has been and may continue to be
negatively
affected by the novel coronavirus (COVID-19) pandemic. As
with other serious economic disruptions, governmental authorities
and regulators are responding to this crisis with significant
fiscal and monetary policy changes, including considerably
lowering interest rates, which, in some cases could result
in negative interest rates. These actions, including their possible
unexpected or sudden reversal or potential ineffectiveness, could
further increase volatility in securities and other financial markets
and reduce market liquidity. To the extent the fund has a bank
deposit or holds a debt instrument with a negative interest rate
to
maturity, the fund would generate a negative return on that investment.
Similarly, negative rates on investments by money market
funds and similar cash management products could lead to losses
on investments, including on investments of the fund’s uninvested
cash. |
|
Credit
quality risk.
Fixed-income securities are subject to the risk that
the issuer of the security will not repay all or a portion of the
principal
borrowed and will not make all interest payments. If the credit
quality of a fixed-income security deteriorates after a fund has
purchased
the security, the market value of the security may decrease
and lead to a decrease in the value of the fund’s investments.
An issuer’s credit quality could deteriorate as a result of poor
management decisions, competitive pressures, technological obsolescence,
undue reliance on suppliers, labor issues, shortages, corporate
restructurings, fraudulent disclosures, or other factors. Funds
that may invest in lower-rated fixed-income securities,
|
|
commonly
referred to as junk securities, are riskier than funds that may
invest in higher-rated fixed-income
securities. |
|
Investment-grade
fixed-income securities in the lowest rating category
risk.
Investment-grade fixed-income securities in the lowest
rating category (such as Baa by Moody’s Investors Service, Inc.
or BBB by S&P
Global Ratings or
Fitch Ratings, as applicable, and
comparable unrated securities) involve a higher degree of risk
than
fixed-income securities in the higher rating categories. While
such
securities are considered investment-grade quality and are deemed
to have adequate capacity for payment of principal and interest,
such securities lack outstanding investment characteristics and
have speculative characteristics as well. For example, changes in
economic
conditions or other circumstances are more likely to lead to a
weakened capacity to make principal and interest payments than
is
the case with higher-grade securities. |
|
Prepayment
of principal risk. Many
types of debt securities, including
floating-rate loans, are subject to prepayment risk. Prepayment
risk is the risk that, when interest rates fall, certain types
of obligations will be paid off by the borrower more quickly than
originally
anticipated and the fund may have to invest the proceeds in securities
with lower yields. Securities subject to prepayment risk can
offer less potential for gains when the credit quality of the issuer
improves. |
Foreign
securities risk
Funds that
invest in securities traded principally in securities markets outside the
United States are subject to additional and more varied risks, as
the value of foreign securities may change more rapidly and extremely
than the value of U.S. securities. Less information may be publicly
available regarding foreign issuers,
including foreign government
issuers.
Foreign securities may be subject to foreign taxes and may be
more volatile than U.S. securities. Currency fluctuations and political
and economic developments may adversely impact the value of foreign
securities. The securities markets of many foreign countries are relatively
small, with a limited number of companies representing a small
number of industries. Additionally, issuers of foreign securities may not be
subject to the same degree of regulation as U.S. issuers. Reporting,
accounting, and auditing standards of foreign countries differ, in
some cases significantly, from U.S. standards. There are generally
higher commission rates on foreign portfolio transactions, transfer
taxes, higher custodial costs, and the possibility that foreign taxes will
be charged on dividends and interest payable on foreign securities,
some or all of which may not be reclaimable. Also, adverse changes in
investment or exchange control regulations (which may include
suspension of the ability to transfer currency or assets from a country);
political changes; or diplomatic developments could adversely affect a
fund’s investments. In the event of nationalization, expropriation, confiscatory
taxation, or other confiscation, the fund could lose a substantial
portion of, or its entire investment in, a foreign security. Some of the
foreign securities risks are also applicable to funds that invest a
material portion of their assets in securities of foreign issuers traded in
the United States.
If
applicable, depositary
receipts are subject to most of the risks associated
with investing in foreign securities directly because the value of a
depositary receipt is dependent upon the market price of the
underlying
foreign equity security. Depositary receipts are also subject to
liquidity risk.
|
Emerging-market
risk.
Investments in the securities of issuers based
in countries with emerging-market economies are subject to greater
levels of risk and uncertainty than investments in more-developed
foreign markets, since emerging-market securities may
present market, credit, currency, liquidity, legal, political, and
other
risks greater than, or in addition to, the risks of investing in
developed
foreign countries. These risks include high currency exchange-rate
fluctuations; increased risk of default (including both government
and private issuers); greater social, economic, and political
uncertainty and instability (including the risk of war); more substantial
governmental involvement in the economy; less governmental
supervision and regulation of the securities markets and
participants in those markets; controls on foreign investment and
limitations on repatriation of invested capital and on a fund’s
ability
to exchange local currencies for U.S. dollars; unavailability of
currency
hedging techniques in certain emerging-market countries; the
fact that companies in emerging-market countries may be newly organized,
smaller, and less seasoned; the difference in, or lack of, auditing
and financial reporting requirements or standards, which may
result in the unavailability of material information about issuers;
different
clearance and settlement procedures, which may be unable to
keep pace with the volume of securities transactions or otherwise
make
it difficult to engage in such transactions; difficulties in obtaining
and/or enforcing legal judgments against non-U.S. companies
and non-U.S. persons, including company directors and officers,
in foreign jurisdictions; and significantly smaller market capitalizations
of emerging-market issuers. In addition, shareholders of
emerging market issuers, such as the fund, often have limited rights
and few practical remedies in emerging markets. Finally, the risks
associated with investments in emerging markets often are significant,
and vary from jurisdiction to jurisdiction and company to company. |
|
Currency
risk.
Currency risk is the risk that fluctuations in exchange
rates may adversely affect the U.S. dollar value of a fund’s investments.
Currency risk includes both the risk that currencies in which
a fund’s investments are traded, or currencies in which a fund
has
taken an active investment position, will decline in value relative
to
the U.S. dollar and, in the case of hedging positions, that the U.S.
dollar
will decline in value relative to the currency being hedged. Currency
rates in foreign countries may fluctuate significantly for a number
of reasons, including the forces of supply and demand in the foreign
exchange markets, actual or perceived changes in interest rates,
intervention (or the failure to intervene) by U.S. or foreign governments
or central banks, or currency controls or political developments
in the United States or abroad. Certain funds may engage
in proxy hedging of currencies by entering into derivative transactions
with respect to a currency whose value is expected to correlate
to the value of a currency the fund owns or wants to own. This
presents the risk that the two currencies may not move in relation
to one another as expected. In that case, the fund could lose money
on its investment and also lose money on the position designed
to act as a proxy hedge. Certain funds may also take active currency
positions and may cross-hedge currency exposure represented
by their securities into another foreign currency. This
|
|
may
result in a fund’s currency exposure being substantially different
than
that suggested by its securities investments. All funds with foreign
currency holdings and/or that invest or trade in securities denominated
in foreign currencies or related derivative instruments may
be adversely affected by changes in foreign currency exchange rates.
Derivative foreign currency transactions (such as futures, forwards,
and swaps) may also involve leveraging risk, in addition to currency
risk. Leverage may disproportionately increase a fund’s portfolio
losses and reduce opportunities for gain when interest rates,
stock prices, or currency rates are
changing. |
Hedging,
derivatives, and other strategic transactions risk
The ability
of a fund to utilize hedging, derivatives, and other strategic transactions
to benefit the fund will depend in part on its
manager’s
ability to
predict pertinent market movements and market risk, counterparty
risk, credit risk, interest-rate risk, and other risk factors, none of
which can be assured. The skills required to utilize hedging and other
strategic transactions are different from those needed to select a fund’s
securities. Even if the
manager
only uses hedging and other strategic
transactions in a fund primarily for hedging purposes or to gain exposure to
a particular securities market, if the transaction does not have the
desired outcome, it could result in a significant loss to a fund.
The amount
of loss could be more than the principal amount invested. These
transactions may also increase the volatility of a fund and may involve a
small investment of cash relative to the magnitude of the risks assumed,
thereby magnifying the impact of any resulting gain or loss. For
example, the potential loss from the use of futures can exceed a fund’s
initial investment in such contracts. In addition, these transactions
could result in a loss to a fund if
the counterparty to the transaction
does not perform as promised.
A fund may
invest in derivatives, which are financial contracts with a value that
depends on, or is derived from, the value of underlying assets, reference
rates, or indexes. Derivatives may relate to stocks, bonds, interest
rates, currencies or
currency exchange rates, and related indexes. A
fund may use derivatives for many purposes, including for hedging and as a
substitute for direct investment in securities or other assets.
Derivatives may be used in a way to efficiently adjust the exposure of
a fund to
various securities, markets, and currencies without a fund
actually having to sell existing investments and make new investments.
This generally will be done when the adjustment is expected to
be relatively temporary or in anticipation of effecting the sale of
fund assets and making new investments over time. Further, since many
derivatives have a leverage component, adverse changes in the value
or level of the underlying asset, reference rate, or index can result in a
loss substantially greater than the amount invested in the derivative
itself. Certain derivatives have the potential for unlimited loss, regardless
of the size of the initial investment. When a fund uses derivatives
for leverage, investments in that fund will
tend to be more volatile,
resulting in larger gains or losses in response to market changes. To
limit risks associated with leverage, a fund may segregate assets
determined to be liquid or, as permitted by applicable regulation, enter into
certain offsetting positions to cover its obligations under derivative
instruments. For a description of the various derivative instruments
the fund may
utilize, refer to the SAI.
The
regulation of the U.S. and non-U.S. derivatives markets has undergone
substantial change in recent years and such change may
continue.
In particular, the Dodd-Frank Wall Street Reform and Consumer
Protection Act, and regulations
promulgated or proposed thereunder
require many derivatives to be cleared and traded on an exchange,
expand entity registration requirements, impose business conduct
requirements on dealers that enter into swaps with a pension plan,
endowment, retirement plan or government entity, and required banks to
move some derivatives trading units to a non-guaranteed affiliate
separate from the deposit-taking bank or divest them altogether. Although
the Commodity Futures Trading Commission (CFTC) has released
final rules relating to clearing, reporting, recordkeeping and registration
requirements under the legislation, many of the provisions are subject
to further final rule making, and thus its ultimate impact remains
unclear. New regulations could, among other things, restrict a
fund’s
ability to engage in derivatives transactions (for example, by making
certain types of derivatives transactions no longer available to the fund)
and/or increase the costs of such derivatives transactions (for example, by
increasing margin or capital requirements), and a fund may
be unable
to fully execute its investment strategies as a result. Limits or restrictions
applicable to the counterparties with which a fund
engages in
derivative transactions also could prevent the fund from using these
instruments
or affect the pricing or other factors relating to these instruments,
or may change the availability of certain investments.
In
addition, new Rule 18f-4 (the Derivatives Rule), adopted by the SEC on
October 28,
2020, replaces current asset segregation requirements with a new
framework for the use of derivatives by registered funds. For funds using
a significant amount of derivatives, the Derivatives Rule mandates a
fund adopt and/or implement: (i) value at risk limitations in lieu of
asset segregation requirements; (ii) a written derivatives risk management
program; (iii) new Board oversight responsibilities; and (iv) new
reporting and recordkeeping requirements. The Derivatives Rule provides an
exception for funds with derivative exposure not exceeding 10% of its
net assets, excluding certain currency and interest rate hedging
transactions. In addition, the Derivatives Rule provides special treatment
for reverse repurchase agreements and similar financing transactions
and unfunded commitment agreements. Funds will be required to
comply with the Derivatives Rule starting on August 19, 2022.
At any time
after the date of this prospectus, legislation may be enacted that could
negatively affect the assets of a fund.
Legislation or regulation may change
the way in which a fund
itself is regulated. The advisor cannot
predict the effects of any new governmental regulation that may be
implemented, and there can be no assurance that any new governmental
regulation will not adversely affect a fund’s
ability to achieve its
investment objectives.
The use of
derivative instruments may involve risks different from, or potentially
greater than, the risks associated with investing directly in securities
and other, more traditional assets. In particular, the use of derivative
instruments exposes a fund to the risk that the counterparty to an OTC
derivatives contract will be unable or unwilling to make timely settlement
payments or otherwise honor its obligations. OTC derivatives transactions
typically can only be closed out with the other party to the transaction,
although either party may engage in an offsetting transaction
that puts that party in the same economic position as if it had closed
out the transaction with the counterparty or may obtain the other
party’s consent to assign the transaction to a third party. If the
counterparty
defaults, the fund will have contractual remedies, but there is no
assurance that the counterparty will meet its contractual obligations
or that, in the event of default, the fund will succeed in enforcing
them. For example, because the contract for each OTC derivatives
transaction is individually negotiated with a specific counterparty,
a fund is
subject to the risk that a counterparty may interpret
contractual terms (e.g., the definition of default) differently than the
fund when the fund seeks to enforce its contractual rights. If that
occurs, the cost and unpredictability of the legal proceedings required
for the fund to enforce its contractual rights may lead it to decide not
to pursue its claims against the counterparty. The fund, therefore,
assumes the risk that it may be unable to obtain payments owed to it
under OTC derivatives contracts or that those payments may be delayed
or made only after the fund has incurred the costs of litigation.
While a manager
intends to monitor
the creditworthiness of counterparties,
there can be no assurance that a counterparty will meet its
obligations, especially during unusually adverse market conditions. To the
extent a fund contracts with a limited number of counterparties, the fund’s
risk will be concentrated and events that affect the creditworthiness
of any of those counterparties may have a pronounced effect on
the fund. Derivatives are also subject to a number of other risks,
including market risk and liquidity risk. Since the value of derivatives
is calculated and derived from the value of other assets, instruments,
or references, there is a risk that they will be improperly valued.
Derivatives also involve the risk that changes in their value may not
correlate perfectly with the assets, rates, or indexes they are designed to
hedge or closely track. Suitable derivatives transactions may not be
available in all circumstances. The fund is
also subject to the risk that
the counterparty closes out the derivatives transactions upon the
occurrence of certain triggering events. In addition, a manager may
determine
not to use derivatives to hedge or otherwise reduce risk exposure.
Government legislation or regulation could affect the use of derivatives
transactions and could limit a fund’s ability to pursue its investment
strategies.
A detailed
discussion of various hedging and other strategic transactions
appears in the SAI. To the
extent that a fund utilizes the following
list of
certain derivatives and other strategic transactions,
it will be
subject to associated risks. The main risks of each appear below.
|
Credit
default swaps.
Counterparty risk, liquidity risk (i.e., the inability
to enter into closing transactions), interest-rate risk, risk of
default
of the underlying reference obligation, and risk of disproportionate
loss are the principal risks of engaging in transactions
involving credit default swaps. |
|
Foreign
currency forward contracts.
Counterparty risk, liquidity risk
(i.e., the inability to enter into closing transactions), foreign
currency
risk, and risk of disproportionate loss are the principal risks
of
engaging in transactions involving foreign currency forward contracts. |
|
Futures
contracts.
Counterparty risk, liquidity risk (i.e., the inability to
enter into closing transactions), and risk of disproportionate loss
are
the principal risks of engaging in transactions involving futures
contracts. |
|
Interest-rate
swaps.
Counterparty risk, liquidity risk (i.e., the inability
to enter into closing transactions), interest-rate risk, and risk
|
|
of
disproportionate loss are the principal risks of engaging in transactions
involving interest-rate swaps. |
|
Options.
Counterparty risk, liquidity risk (i.e., the inability to enter
into
closing transactions), and risk of disproportionate loss are the
principal
risks of engaging in transactions involving options. Counterparty
risk does not apply to exchange-traded
options. |
Illiquid
and restricted securities risk
Certain
securities are considered illiquid or restricted due to a limited trading
market, legal or contractual restrictions on resale or transfer, or are
otherwise illiquid because they cannot be sold or disposed of in seven
calendar days or less without the sale or disposition significantly changing
the market value of the investment. Securities that have limitations
on their resale are referred to as “restricted securities.” Certain
restricted securities that are eligible for resale to qualified institutional
purchasers may not be regarded as illiquid. Illiquid and restricted
securities may be difficult to value and may involve greater risks than
liquid securities. Market quotations for such securities may be volatile
and/or subject to large spreads between bid and ask price. Illiquidity
may have an adverse impact on market price and the fund’s ability to
sell particular securities when necessary to meet the fund’s liquidity
needs or in response to a specific economic event. The fund may incur
additional expense when disposing of illiquid or restricted securities,
including all or a portion of the cost to register the securities.
Inflation-protected
securities risk
Inflation-protected
debt securities tend to react to changes in real interest
rates. Real interest rates represent nominal (stated) interest rates
reduced by the expected impact of inflation. In general, the price of
an
inflation-protected debt security falls when real interest rates rise,
and rises
when real interest rates fall. Interest payments on inflation-protected
debt securities can be unpredictable and will vary as the
principal and/or interest is adjusted for inflation.
Initial
public offerings (IPOs) risk
Certain
funds may invest a portion of their assets in shares of IPOs. IPOs may have a
magnified impact on the performance of a fund with a small asset base.
The impact of IPOs on a fund’s performance will likely decrease as
the fund’s asset size increases, which could reduce the fund’s
returns. IPOs may not be consistently available to a fund for investing,
particularly as the fund’s asset base grows. IPO shares are frequently
volatile in price due to the absence of a prior public market, the small
number of shares available for trading, and limited information about the
issuer. Therefore, a fund may hold IPO shares for a very short period of
time. This may increase the turnover of a fund and may lead to increased
expenses for a fund, such as commissions and transaction costs. In
addition, IPO shares can experience an immediate drop in value if the
demand for the securities does not continue to support the offering price.
Large
company risk
Larger,
more established companies may be unable to respond quickly to new
competitive challenges such as changes in technology and consumer
tastes. Many larger companies also may not be able to attain the high
growth rate of successful smaller companies, especially during extended
periods of economic expansion. These risks
apply to all funds that invest
in securities of companies with large market capitalizations. Market
capitalizations of companies change over time. A fund may
not
be
obligated
to sell a company’s security simply because, subsequent to its
purchase, the company’s market capitalization has changed to be outside the
capitalization range, if any, in effect for the fund.
Liquidity
risk
The extent
(if at all) to which a security may be sold or a derivative position
closed without negatively impacting its market value may be impaired by
reduced market activity or participation, legal restrictions, or other
economic and market impediments. Funds with principal investment
strategies that involve investments in securities of companies
with smaller market capitalizations, foreign securities, derivatives,
or securities with substantial market and/or credit risk tend to have the
greatest exposure to liquidity risk. Exposure to liquidity risk may be
heightened for funds that invest in securities of emerging markets and
related derivatives that are not widely traded, and that may be subject
to purchase and sale restrictions.
The
capacity of traditional dealers to engage in fixed-income trading has
not kept
pace with the bond market’s growth. As a result, dealer inventories
of corporate bonds, which indicate the ability to “make markets,”
i.e., buy or sell a security at the quoted bid and ask price, respectively,
are at or near historic lows relative to market size. Because market
makers provide stability to fixed-income markets, the significant reduction
in dealer inventories could lead to decreased liquidity and increased
volatility, which may become exacerbated during periods of economic or
political stress.
Lower-rated
and high-yield fixed-income securities risk
Lower-rated
fixed-income securities are defined as securities rated below
investment grade (such as Ba and below by Moody’s Investors Service,
Inc. and BB and below by S&P
Global Ratings and Fitch
Ratings, as
applicable) (also called junk bonds). The general risks of investing in
these
securities are as follows:
|
Risk
to principal and income.
Investing in lower-rated fixed-income
securities is considered speculative. While these securities
generally provide greater income potential than investments
in higher-rated securities, there is a greater risk that principal
and interest payments will not be made. Issuers of these securities
may even go into default or become
bankrupt. |
|
Price
volatility. The
price of lower-rated fixed-income securities may
be more volatile than securities in the higher-rated categories.
This
volatility may increase during periods of economic uncertainty
or
change. The price of these securities is affected more than higher-rated
fixed-income securities by the market’s perception of their
credit quality, especially during times of adverse publicity. In
the
past, economic downturns or increases in interest rates have, at
times,
caused more defaults by issuers of these securities and may do so
in the future. Economic downturns and increases in interest rates
have an even greater effect on highly leveraged issuers of these
securities. |
|
Liquidity. The
market for lower-rated fixed-income securities may have
more limited trading than the market for investment-grade fixed-income
securities. Therefore, it may be more difficult to sell these
securities, and these securities may have to be sold at prices
below
their market value in order to meet redemption requests or to respond
to changes in market conditions. |
|
Dependence
on manager’s own credit analysis.
While a manager may
rely on ratings by established credit rating agencies, it will also
supplement
such ratings with its own independent review of the credit
quality of the issuer. Therefore, the assessment of the credit
risk
of lower-rated fixed-income securities is more dependent on the
manager’s
evaluation than the assessment of the credit risk of higher-rated
securities. |
|
Additional
risks regarding lower-rated corporate fixed-income securities.
Lower-rated corporate fixed-income securities (and comparable
unrated securities) tend to be more sensitive to individual
corporate developments and changes in economic conditions
than higher-rated corporate fixed-income securities. Issuers
of lower-rated corporate fixed-income securities may also be highly
leveraged, increasing the risk that principal and income will not
be repaid. |
|
Additional
risks regarding lower-rated foreign government fixed-income
securities.
Lower-rated foreign government fixed-income
securities are subject to the risks of investing in foreign countries
described under “Foreign securities risk.” In addition, the ability
and willingness of a foreign government to make payments on debt
when due may be affected by the prevailing economic and political
conditions within the country. Emerging-market countries may
experience high inflation, interest rates, and unemployment, as
well
as exchange-rate fluctuations which adversely affect trade and
political
uncertainty or instability. These factors increase the risk that
a foreign government will not make payments when
due. |
Mortgage-backed
and asset-backed securities risk
|
Mortgage-backed
securities.
Mortgage-backed securities represent
participating interests in pools of residential mortgage loans,
which are guaranteed by the U.S. government, its agencies, or its
instrumentalities. However, the guarantee of these types of securities
relates to the principal and interest payments, and not to the
market value of such securities. In addition, the guarantee only
relates
to the mortgage-backed securities held by a fund and not the purchase
of shares of the fund. |
|
Mortgage-backed
securities are issued by lenders, such as mortgage bankers,
commercial banks, and savings and loan associations. Such securities
differ from conventional debt securities, which provide for the
periodic payment of interest in fixed amounts (usually semiannually)
with principal payments at maturity or on specified dates.
Mortgage-backed securities provide periodic payments which are,
in effect, a pass-through of the interest and principal payments
(including
any prepayments) made by the individual borrowers on the pooled
mortgage loans. A mortgage-backed security will mature when
all the mortgages in the pool mature or are prepaid. Therefore,
mortgage-backed
securities do not have a fixed maturity and their expected
maturities may vary when interest rates rise or
fall. |
|
When
interest rates fall, homeowners are more likely to prepay their
mortgage
loans. An increased rate of prepayments on a fund’s mortgage-backed
securities will result in an unforeseen loss of interest
income to the fund as the fund may be required to reinvest assets
at a lower interest rate. Because prepayments increase when interest
rates fall, the prices of mortgage-backed securities do not increase
as much as other fixed-income securities when interest rates
fall. |
|
When
interest rates rise, homeowners are less likely to prepay their
mortgage
loans. A decreased rate of prepayments lengthens the expected
maturity of a mortgage-backed security. Therefore, the prices
of mortgage-backed securities may decrease more than prices of
other fixed-income securities when interest rates
rise. |
|
The
yield of mortgage-backed securities is based on the average life
of
the underlying pool of mortgage loans. The actual life of any particular
pool may be shortened by unscheduled or early payments of
principal and interest. Principal prepayments may result from the
sale
of the underlying property or the refinancing or foreclosure of
underlying
mortgages. The occurrence of prepayments is affected by a
wide range of economic, demographic, and social factors and, accordingly,
it is not possible to accurately predict the average life of a
particular pool. The actual prepayment experience of a pool of
mortgage
loans may cause the yield realized by a fund to differ from the
yield calculated on the basis of the average life of the pool. In
addition,
if a fund purchases mortgage-backed securities at a premium,
the premium may be lost in the event of early prepayment, which
may result in a loss to the fund. |
|
Prepayments
tend to increase during periods of falling interest rates, while
during periods of rising interest rates, prepayments are likely to
decline.
Monthly interest payments received by a fund have a compounding
effect, which will increase the yield to shareholders as compared
to debt obligations that pay interest semiannually. Because
of the reinvestment of prepayments of principal at current rates,
mortgage-backed securities may be less effective than U.S. Treasury
bonds of similar maturity at maintaining yields during periods
of declining interest rates. Also, although the value of debt securities
may increase as interest rates decline, the value of these pass-through
types of securities may not increase as much, due to their
prepayment feature. |
|
The
mortgage-backed securities market has been and may continue to be
negatively affected by the novel coronavirus (COVID-19) pandemic.
The U.S. government, its agencies or its instrumentalities may
implement initiatives in response to the economic impacts of the
COVID-19
pandemic
applicable to federally backed mortgage loans. These
initiatives could involve forbearance of mortgage payments or suspension
or restrictions of foreclosures and evictions. The fund cannot
predict with certainty the extent to which such initiatives or
the
economic effects of the pandemic generally may affect rates of
prepayment
or default or adversely impact the value of the fund’s investments
in securities in the mortgage industry as a
whole. |
|
Collateralized
mortgage obligations (CMOs). A
fund may invest in
mortgage-backed securities called CMOs. CMOs are issued in separate
classes with different stated maturities. As the mortgage pool
experiences prepayments, the pool pays off investors in classes
with
shorter maturities first. By investing in CMOs, a fund may manage
the prepayment risk of mortgage-backed securities. However,
prepayments may cause the actual maturity of a CMO to be substantially
shorter than its stated maturity. |
|
Asset-backed
securities. Asset-backed
securities include interests in
pools of debt securities, commercial or consumer loans, or other
receivables.
The value of these securities depends on many factors, including
changes in interest rates, the availability of information concerning
the pool and its structure, the credit quality of the underlying
assets, the market’s perception of the servicer of the pool,
|
|
and
any credit enhancement provided. In addition, asset-backed securities
have prepayment risks similar to mortgage-backed securities. |
Non-diversified
risk
Overall
risk can be reduced by investing in securities from a diversified pool of
issuers, while overall risk is increased by investing in securities of
a small
number of issuers. If a fund is not diversified within the meaning of the
Investment Company Act of 1940, as amended, that means it is allowed to
invest a large portion of assets in any one issuer or a small number of
issuers, which may result in greater susceptibility to associated
risks. As a result, credit, market, and other risks associated with a
non-diversified fund’s investment strategies or techniques may be more
pronounced than for funds that are diversified.
Operational
and cybersecurity risk
With the
increased use of technologies, such as mobile devices and “cloud”-based
service offerings and the dependence on the internet and computer
systems to perform necessary business functions, the fund’s service
providers are susceptible to operational and information or cybersecurity
risks that could result in losses to the fund and its shareholders.
Intentional cybersecurity breaches include unauthorized access to
systems, networks, or devices (such as through “hacking” activity or
“phishing”); infection from computer viruses or other malicious
software code; and attacks that shut down, disable, slow, or otherwise
disrupt operations, business processes, or website access or functionality.
Cyber-attacks can also be carried out in a manner that does not
require gaining unauthorized access, such as causing denial-of-service
attacks on the service providers’ systems or websites rendering
them unavailable to intended users or via “ransomware” that renders the
systems inoperable until appropriate actions are taken. In addition,
unintentional incidents can occur, such as the inadvertent release of
confidential information (possibly resulting in the violation of applicable
privacy laws).
A
cybersecurity breach could result in the loss or theft of customer data
or funds,
loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system
repairs. Such incidents could cause a fund, the advisor, a manager, or
other service providers to incur regulatory penalties, reputational
damage, additional compliance costs, litigation costs or financial
loss. In addition, such incidents could affect issuers in which a fund
invests, and thereby cause the fund’s investments to lose value.
Cyber-events
have the potential to materially affect the fund and the advisor’s
relationships with accounts, shareholders, clients, customers, employees,
products, and service providers. The fund has established risk
management systems reasonably designed to seek to reduce the risks
associated with cyber-events. There is no guarantee that the fund will be
able to prevent or mitigate the impact of any or all cyber-events.
The fund is
exposed to operational risk arising from a number of factors, including,
but not limited to, human error, processing and communication
errors, errors of the fund’s service providers, counterparties,
or other third parties, failed or inadequate processes and
technology or system failures.
In
addition, other disruptive events, including (but not limited to) natural
disasters
and public health crises (such as the novel coronavirus
(COVID-19)
pandemic), may adversely affect the fund’s ability to conduct business,
in particular if the fund’s employees or the employees of its service
providers are unable or unwilling to perform their responsibilities as a result
of any such event. Even if the fund’s employees and the employees
of its service providers are able to work remotely, those remote work
arrangements could result in the fund’s business operations
being less efficient than under normal circumstances, could lead to
delays in its processing of transactions, and could increase the risk of
cyber-events.
Preferred
and convertible securities risk
Unlike
interest on debt securities, preferred stock dividends are payable only if
declared by the issuer’s board. Also, preferred stock may be subject to
optional or mandatory redemption provisions. The market values of
convertible securities tend to fall as interest rates rise and rise as interest
rates fall. The value of convertible preferred stock can depend
heavily upon the value of the security into which such convertible preferred
stock is converted, depending on whether the market price of the
underlying security exceeds the conversion price.
Sector
risk
When a
fund’s investments are focused in one or more sectors of the economy,
they are less broadly invested across industries or sectors than other
funds. This means that focused funds tend to be more volatile than other
funds, and the values of their investments tend to go up and down more
rapidly. In addition, a fund that invests in particular sectors is particularly
susceptible to the impact of market, economic, political, regulatory,
and other conditions and risks affecting those sectors. From time to
time, a small number of companies may represent a large portion of
a single sector or a group of related sectors as a whole.
Small
and mid-sized company risk
Market risk
and liquidity risk may be pronounced for securities of companies
with medium-sized market capitalizations and are particularly
pronounced for securities of companies with smaller market capitalizations.
These companies may have limited product lines, markets, or
financial resources, or they may depend on a few key employees.
The securities of companies with medium and smaller market
capitalizations may trade less frequently and in lesser volume than more
widely held securities, and their value may fluctuate more sharply
than those securities. They may also trade in the OTC market or on a
regional exchange, or may otherwise have limited liquidity. Investments
in less-seasoned companies with medium and smaller market
capitalizations may present greater opportunities for growth and capital
appreciation, but also involve greater risks than are customarily associated
with more established companies with larger market capitalizations.
These risks apply to all funds that invest in the securities of
companies with smaller- or medium-sized market capitalizations. Market
capitalizations of companies change over time. A fund may not be
obligated to sell a company’s security simply because, subsequent to
its
purchase, the company’s market capitalization has changed to be outside the
capitalization range, if any, in effect for the fund.
Who’s
who
The
following are the names of the various entities involved with each fund’s
investment and business operations, along with brief descriptions of the role
each entity performs.
Board
of Trustees
The
Trustees oversee each fund’s business activities and retain the services of
the various firms that carry out the funds’ operations.
Investment
advisor
The
investment advisor manages the funds’ business and investment activities.
John
Hancock Investment Management LLC
200
Berkeley Street
Boston,
MA 02116
Founded in
1968, the advisor is an indirect principally owned subsidiary of John
Hancock Life Insurance Company (U.S.A.), which in turn is a subsidiary
of Manulife Financial Corporation.
The
advisor’s parent company has been helping individuals and institutions
work toward their financial goals since 1862. The advisor offers
investment solutions managed by leading institutional money managers,
taking a disciplined team approach to portfolio management and
research, leveraging the expertise of seasoned investment professionals.
As of September 30, 2021, the
advisor had total assets under
management of approximately $170.8
billion.
Subject to
general oversight by the Board of Trustees, the advisor manages and
supervises the investment operations and business affairs of the
funds. The advisor selects, contracts with and compensates one or more
subadvisors to manage all or a portion of the funds’ portfolio assets,
subject to oversight by the advisor. In this role, the advisor has supervisory
responsibility for managing the investment and reinvestment of the
funds’ portfolio assets through proactive oversight and monitoring of a
subadvisor and the funds, as described in further detail below. The advisor is
responsible for developing overall investment strategies for the funds
and overseeing and implementing the funds’ continuous investment
programs and provides a variety of advisory oversight and investment
research services. The advisor also provides management and
transition services associated with certain fund events (e.g., strategy,
portfolio manager or subadvisor changes) and coordinates and oversees
services provided under other agreements.
The advisor
has ultimate responsibility to oversee a subadvisor and recommend
to the Board of Trustees its hiring, termination, and replacement.
In this capacity, the advisor, among other things: (i) monitors on
a daily basis the compliance of the subadvisor with the investment
objectives and related policies of the funds; (ii) monitors significant
changes that may impact the subadvisor’s overall business and
regularly performs due diligence reviews of the subadvisor; (iii) reviews the
performance of the subadvisor; and (iv) reports periodically on such
performance to the Board of Trustees. The advisor employs a team of
investment professionals who provide these ongoing research and
monitoring services.
The funds
rely on an order from the Securities and Exchange Commission
(SEC) permitting the advisor, subject to approval by the Board of
Trustees, to appoint a subadvisor or change the terms of a subadvisory
agreement without obtaining shareholder approval. The funds,
therefore, are able to change subadvisors or the fees paid to a subadvisor,
from time to time, without the expense and delays associated
with obtaining shareholder approval of the change. This order does not,
however, permit the advisor to appoint a subadvisor that is an
affiliate
of the advisor or the funds (other than by reason of serving as a subadvisor
to the funds), or to increase the subadvisory fee of an affiliated
subadvisor, without the approval of the shareholders.
Management
fees
Each fund
pays the advisor a management fee for its services to the fund. The
advisor in turn pays the fees of the subadvisor. The management
fee has two components: (1) a fee on assets invested in a fund of
John Hancock Funds II (JHF II) or John Hancock Funds III (JHF III); and
(2) a fee on assets invested in investments other than a fund of JHF II or
JHF III (other assets).
The fee on
assets invested in a fund of JHF II or JHF III is stated as an annual
percentage of the aggregate net assets of the fund (together with the assets
of any other applicable fund identified in the advisory agreement)
determined in accordance with the following schedule, and that rate
is applied to the average daily net assets of the fund.
Advisory
fee on assets invested in a fund of JHF II and JHF III
|
|
|
Aggregate
net assets
of the fund (%) |
First
$7.5 billion |
0.060 |
Excess
over $7.5 billion |
0.050 |
The fee on
other assets is stated as an annual percentage of the aggregate
net assets of the fund (together with the assets of any other applicable
fund identified in the advisory agreement), determined in accordance
with the following schedule, and that rate is applied to the average
daily net assets of the fund.
Advisory
fee on other assets
|
|
|
Aggregate
net assets
of the fund (%) |
First
$7.5 billion |
0.510 |
Excess
over $7.5 billion |
0.500 |
During
their most recent fiscal year, the funds paid to the investment advisor
management fees, including any waivers or reimbursements, as follows:
Multi-Index
2065 Preservation Portfolio: 0.00%
Multi-Index
2060 Preservation Portfolio: 0.00%
Multi-Index
2055 Preservation Portfolio: 0.00%
Multi-Index
2050 Preservation Portfolio: 0.00%
Multi-Index
2045 Preservation Portfolio: 0.00%
Multi-Index
2040 Preservation Portfolio: 0.00%
Multi-Index
2035 Preservation Portfolio: 0.00%
Multi-Index
2030 Preservation Portfolio: 0.06%
Multi-Index
2025 Preservation Portfolio: 0.10%
Multi-Index
Income Preservation Portfolio: 0.16%
The basis
for the Board of Trustees’ approval of the advisory fees, and of the
investment advisory agreement overall, including the subadvisory
agreement,
is discussed in each fund’s most recent annual shareholder report for
the period ended August 31.
The
subadvisor will benefit from increased subadvisory fees when assets are
allocated to affiliated subadvised funds that it manages. In addition,
Manulife
Financial Corporation, as the parent company of the subadvisor and all
affiliated investment advisors, will benefit through increased revenue
generated from the fees on assets managed by the affiliated subadvisor.
Accordingly, there is a conflict of interest in that there is an incentive
for the subadvisor to allocate fund assets to funds subadvised by the
subadvisor and other affiliated subadvised funds. However, the subadvisor
has a duty to allocate assets to an affiliated subadvised fund (and to
affiliated underlying funds more broadly) only when the subadvisor
believes it is in the best interests of fund shareholders, without
regard to any economic incentive. As part of its oversight of the funds and
the subadvisor, the advisor will monitor to ensure that allocations
and the subadvisor’s compensation practices are conducted in
accordance with these principles. This conflict of interest is also considered
by the Independent Trustees when approving or replacing affiliated
subadvisors.
Additional
information about fund expenses
Each fund’s
annual operating expenses will likely vary throughout the period and
from year to year. Each fund’s expenses for the current fiscal year may be
higher than the expenses listed in the fund’s “Annual fund operating
expenses” table, for some of the following reasons: (i) a significant
decrease in average net assets may result in a higher advisory
fee rate if any advisory fee breakpoints are not achieved; (ii) a significant
decrease in average net assets may result in an increase in the expense
ratio because certain fund expenses do not decrease as asset
levels decrease; or (iii) fees may be incurred for extraordinary events such
as fund tax expenses.
The advisor
voluntarily agrees to waive its advisory fee for each fund so that the
aggregate advisory fee retained by the advisor with respect to both the
fund and its underlying investments (after payment of subadvisory
fees) does not exceed 0.51% of the fund’s first $7.5 billion of average
net assets and 0.50% of the fund’s average annual net assets in excess
of $7.5 billion. The advisor may terminate this voluntary waiver at any time
upon notice to the fund.
Subadvisor
The
subadvisor handles the funds’ portfolio management activities, subject to
oversight by the advisor.
Manulife
Investment Management (US) LLC
197
Clarendon Street
Boston,
MA 02116
Manulife
Investment Management (US) LLC (Manulife IM (US)) provides investment
advisory services to individual and institutional investors. Manulife IM
(US) is a wholly
owned
subsidiary of John Hancock Life Insurance
Company (U.S.A.) (a subsidiary of Manulife Financial Corporation)
and, as of September 30, 2021, had total
assets under management
of approximately $224.2
billion.
The
following are brief biographical profiles of the leaders of the subadvisor’s
investment management team, in alphabetical order. These managers
are jointly and primarily responsible for the day-to-day management
of each fund’s portfolio. These managers are employed by
Manulife IM
(US). For more details about these individuals, including information
about their compensation, other accounts they manage, and any
investments they may have in the funds, see the SAI.
Robert
E. Sykes, CFA
• |
Managing
Director and Portfolio Manager, Asset Allocation
Team |
• |
Managed
each fund except for the Multi-Index 2065 Preservation
Portfolio
since 2018 |
• |
Managed
the Multi-Index 2065 Preservation
Portfolio since 2020 |
• |
Joined
Manulife IM (US) in 2008 |
• |
Began
business career in 2001 |
Nathan
W. Thooft, CFA
• |
Senior
Managing Director, Senior Portfolio Manager and Global Head of
Asset Allocation |
• |
Managed
each fund except for the Multi-Index 2065 Preservation Portfolio,
Multi-Index 2060 Preservation Portfolio and Multi-Index 2055
Preservation Portfolio since 2013 |
• |
Managed
the Multi-Index 2055 Preservation Portfolio since
2014 |
• |
Managed
the Multi-Index 2060 Preservation Portfolio since
2016 |
• |
Managed
the Multi-Index 2065 Preservation Portfolio since
2020 |
• |
Joined
Manulife IM (US) in 2008 |
• |
Began
business career in 2000 |
Custodian
The
custodian holds the funds’ assets, settles all portfolio trades, and
collects
most of the valuation data required for calculating the funds’ net asset
value.
State
Street Bank and Trust Company
State
Street Financial Center
One
Lincoln Street
Boston,
Massachusetts 02111
Principal
distributor
The
principal distributor markets the funds and distributes shares through
selling brokers, financial planners, and other financial professionals.
John
Hancock Investment Management Distributors LLC
200
Berkeley Street
Boston,
MA 02116
Transfer
agent
The
transfer agent handles shareholder services, including recordkeeping
and statements, distribution of dividends, and processing of
buy-and-sell requests.
John
Hancock Signature Services, Inc.
P.O. Box
219909
Kansas
City, MO 64121-9909
Additional
information
Each fund
has entered into contractual arrangements with various parties
that provide services to the fund, which may include, among others, the
advisor, subadvisor, custodian, principal distributor, and transfer
agent, as described above and in the SAI. Fund shareholders are not parties
to, or intended or “third-party” beneficiaries of, any of these
contractual
arrangements. These contractual arrangements are not intended
to, nor do they, create in any individual shareholder or group of shareholders
any right, either directly or on behalf of the fund, to either: (a) enforce
such contracts against the service providers; or (b) seek any remedy
under such contracts against the service providers.
The
Advisor internally
credits a portion of its profits to an affiliated business,
John Hancock Retirement (JHR), which is the record keeper for certain
401(k) plans that invest in Class R6 shares. JHR may reduce the record
keeping fees paid to it by such 401(k) plans by a commensurate
amount. JHR may discontinue this practice with adequate
notice to plan sponsors.
This
prospectus provides information concerning the funds that you should
consider in determining whether to purchase shares of the funds. Each of
this prospectus, the SAI, or any contract that is an exhibit to the funds’
registration statement, is not intended to, nor does it, give rise to
an
agreement or contract between the funds and any investor. Each such
document also does not give rise to any contract or create rights in
any
individual shareholder, group of shareholders, or other person. The foregoing
disclosure should not be read to suggest any waiver of any rights
conferred by federal or state securities laws.
Financial
highlights
These
tables detail the financial performance of each share class described in this
prospectus,
including
total return information showing how much an
investment in a fund has increased or decreased each period (assuming
reinvestment of all dividends and distributions). Certain information
reflects
financial results for a single fund share.
Because
Class I shares of the funds had not commenced operations as of the last
reporting period, these tables also detail the financial performance
of Class 1
shares of the funds, which are described in a separate prospectus. Because Class
I shares have different expenses than Class 1 shares, financial
highlights for Class I shares would have differed.
The
financial statements of the funds as of August 31, 2021, have been
audited by PricewaterhouseCoopers LLP (PwC), the funds’ independent registered
public accounting firm. The report of PwC, along with the funds’ financial
statements in the funds’ annual report for the fiscal year ended August 31,
2021, has been
incorporated by reference into the SAI. Copies of the funds’ most recent annual
report are available upon request.
Multi-Index
2065 Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%) |
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-20215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-20215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-20215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-20215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced and
other income not been received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies during the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
5 |
Period
from 9-23-20 (commencement of operations) to 8-31-21. |
6 |
Net
investment income (loss) per share and net investment income (loss) ratio
reflect other income received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies of less than $0.005 per share and 0.01% for the period ended
8-31-21. |
7 |
Less
than $0.005 per share. |
8 |
Not
annualized. |
9 |
Annualized. |
10 |
Less
than $500,000. |
Multi-Index
2060 Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized
and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%)2
|
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced and
other income not been received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies during the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
5 |
Net
investment income (loss) per share and net investment income (loss) ratio
reflect other income received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies of less than $0.005 per share, less than $0.005 per share,
$0.01, $0.01 and
less than $0.005 per share and 0.02%, 0.04%, 0.06%, 0.05% and 0.04% for
the periods ended 8-31-21, 8-31-20, 8-31-19, 8-31-18 and 8-31-17,
respectively. |
6 |
Less
than $500,000. |
7 |
Less
than $0.005 per share. |
Multi-Index
2055 Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized
and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%)2
|
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced and
other income not been received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies during the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
5 |
Net
investment income (loss) per share and net investment income (loss) ratio
reflect other income received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies of less than $0.005 per share, less than $0.005 per share,
$0.01, $0.01 and
less than $0.005 per share and 0.01%, 0.03%, 0.05%, 0.04% and 0.03% for
the periods ended 8-31-21, 8-31-20, 8-31-19, 8-31-18 and 8-31-17,
respectively. |
6 |
Less
than $500,000. |
Multi-Index
2050 Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized
and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%)2
|
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced and
other income not been received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies during the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
5 |
Net
investment income (loss) per share and net investment income (loss) ratio
reflect other income received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies of less than $0.005 per share, less than $0.005 per share,
$0.01, $0.01 and
less than $0.005 per share and 0.01%, 0.03%, 0.05%, 0.04% and 0.03% for
the periods ended 8-31-21, 8-31-20, 8-31-19, 8-31-18 and 8-31-17,
respectively. |
6 |
Less
than $500,000. |
Multi-Index
2045 Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized
and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%)2
|
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced and
other income not been received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies during the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
5 |
Net
investment income (loss) per share and net investment income (loss) ratio
reflect other income received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies of less than $0.005, $0.01, $0.01, $0.01 and less than $0.005
per share and
0.02%, 0.04%, 0.06%, 0.05% and 0.03% for the periods ended 8-31-21,
8-31-20, 8-31-19, 8-31-18 and 8-31-17, respectively. |
6 |
Less
than $500,000. |
Multi-Index
2040 Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized
and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%)2
|
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced and
other income not been received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies during the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
5 |
Net
investment income (loss) per share and net investment income (loss) ratio
reflect other income received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies of less than $0.005, less than $0.005, $0.01, $0.01 and less
than $0.005 per
share and 0.01%, 0.03%, 0.05%, 0.05% and 0.03% for the periods ended
8-31-21, 8-31-20, 8-31-19, 8-31-18 and 8-31-17,
respectively. |
6 |
Less
than $500,000. |
Multi-Index
2035 Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized
and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%)2
|
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced and
other income not been received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies during the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
5 |
Net
investment income (loss) per share and net investment income (loss) ratio
reflect other income received from the Advisor for reimbursement of
indirect net expenses
associated with the portfolio’s investments in underlying investment
companies of less than $0.005, less than $0.005 and less than $0.005 per
share and 0.02%,
0.02% and 0.03% for the periods ended 8-31-19, 8-31-18 and 8-31-17,
respectively. |
Multi-Index
2030 Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized
and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%)2
|
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced during
the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
5 |
Less
than $500,000. |
Multi-Index
2025 Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized
and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%)2
|
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced during
the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
Multi-Index
Income Preservation Portfolio
|
|
|
|
|
|
|
|
Per
share operating performance for a share outstanding throughout each
period |
Ratios
and supplemental data |
|
|
Income
(loss) from investment
operations |
|
Less
Distributions |
|
|
Ratios
to average net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
ended |
Net
asset value, beginning of
period ($) |
Net investment income (loss)
($)1,2
|
Net
realized
and unrealized gain
(loss) on
investments
($) |
Total
from investment operations
($) |
From
net investment income
($) |
From
net realized gain
($) |
Total distributions
($) |
Net
asset value, end
of period
($) |
Total return (%)3
|
Expenses before reductions (%)4
|
Expenses including reductions (%)4
|
Net investment income (loss)
(%)2
|
Net assets, end
of period (in
millions) |
Portfolio turnover (%) |
Class
R2 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R4 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
R6 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class
1 |
08-31-2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08-31-2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
Based
on average daily shares outstanding. |
2 |
Net
investment income is affected by the timing and frequency of the
declaration of dividends by the underlying funds in which the portfolio
invests. |
3 |
Total
returns would have been lower had certain expenses not been reduced during
the applicable periods. |
4 |
Ratios
do not include expenses indirectly incurred from underlying funds and can
vary based on the mix of underlying funds held by the
portfolio. |
5 |
Excludes
merger activity. |
6 |
Less
than $500,000. |
Underlying
fund information
The funds
invest primarily in underlying funds. Therefore, each fund’s investment
performance is directly related to the investment performance of the
underlying
funds. Information regarding the underlying funds is available in the applicable
underlying fund’s prospectus and SAI. This prospectus is not an offer
for any of the underlying funds. For copies of the prospectuses of the John
Hancock underlying funds, which contain this and other information,
visit our website at jhinvestments.com.
As of
September 30, 2021, the funds
allocated assets to the underlying funds stated below.
|
|
Multi-Index
2065 Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Financial
Sector ETF |
State
Street Global Advisors (SPDR®) |
FTSE
Emerging Markets ETF |
Vanguard |
Health
Care ETF |
Vanguard |
Information
Technology ETF |
Vanguard |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Mid-Cap
ETF |
Vanguard |
Small-Cap
ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
|
|
Multi-Index
2060 Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Financial
Sector ETF |
State
Street Global Advisors (SPDR®) |
FTSE
Emerging Markets ETF |
Vanguard |
Health
Care ETF |
Vanguard |
Information
Technology ETF |
Vanguard |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Mid-Cap
ETF |
Vanguard |
Small-Cap
ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
|
|
Multi-Index
2055 Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Financial
Sector ETF |
State
Street Global Advisors (SPDR®) |
FTSE
Emerging Markets ETF |
Vanguard |
Health
Care ETF |
Vanguard |
Information
Technology ETF |
Vanguard |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Mid-Cap
ETF |
Vanguard |
Small-Cap
ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
|
|
Multi-Index
2050 Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Emerging
Markets Government Bond ETF |
Vanguard |
Energy
ETF |
Vanguard |
Financial
Sector ETF |
State
Street Global Advisors (SPDR®) |
FTSE
Emerging Markets ETF |
Vanguard |
Global
ex-US Real Estate ETF |
Vanguard |
Global
Infrastructure ETF |
BlackRock
(iShares) |
Health
Care ETF |
Vanguard |
Information
Technology ETF |
Vanguard |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Materials
ETF |
Vanguard |
Mid-Cap
ETF |
Vanguard |
REIT
ETF |
Vanguard |
Small-Cap
ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
USD
High Yield Corporate Bond ETF |
DWS
Investment Management Americas Inc.
(Xtrackers) |
|
|
Multi-Index
2045 Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Dividend
Appreciation ETF |
Vanguard |
Edge
MSCI Minimum Volatility Global ETF |
BlackRock
(iShares) |
Emerging
Markets Government Bond ETF |
Vanguard |
Energy
ETF |
Vanguard |
Financial
Sector ETF |
State
Street Global Advisors (SPDR®) |
FTSE
Emerging Markets ETF |
Vanguard |
Global
ex-US Real Estate ETF |
Vanguard |
Global
Infrastructure ETF |
BlackRock
(iShares) |
Health
Care ETF |
Vanguard |
Information
Technology ETF |
Vanguard |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Materials
ETF |
Vanguard |
Mid-Cap
ETF |
Vanguard |
REIT
ETF |
Vanguard |
Small-Cap
ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
USD
High Yield Corporate Bond ETF |
DWS
Investment Management Americas Inc.
(Xtrackers) |
|
|
Multi-Index
2040 Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Dividend
Appreciation ETF |
Vanguard |
Edge
MSCI Minimum Volatility Global ETF |
BlackRock
(iShares) |
Emerging
Markets Government Bond ETF |
Vanguard |
Energy
ETF |
Vanguard |
Financial
Sector ETF |
State
Street Global Advisors (SPDR®) |
Global
ex-US Real Estate ETF |
Vanguard |
Global
Infrastructure ETF |
BlackRock
(iShares) |
Health
Care ETF |
Vanguard |
Information
Technology ETF |
Vanguard |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Materials
ETF |
Vanguard |
Mid-Cap
ETF |
Vanguard |
REIT
ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
USD
High Yield Corporate Bond ETF |
DWS
Investment Management Americas Inc.
(Xtrackers) |
|
|
Multi-Index
2035 Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Dividend
Appreciation ETF |
Vanguard |
Edge
MSCI Minimum Volatility Global ETF |
BlackRock
(iShares) |
Emerging
Markets Government Bond ETF |
Vanguard |
Energy
ETF |
Vanguard |
Financial
Sector ETF |
State
Street Global Advisors (SPDR®) |
Global
ex-US Real Estate ETF |
Vanguard |
Global
Infrastructure ETF |
BlackRock
(iShares) |
Health
Care ETF |
Vanguard |
Information
Technology ETF |
Vanguard |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Materials
ETF |
Vanguard |
Mid-Cap
ETF |
Vanguard |
REIT
ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
USD
High Yield Corporate Bond ETF |
DWS
Investment Management Americas Inc.
(Xtrackers) |
|
|
Multi-Index
2030 Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Dividend
Appreciation ETF |
Vanguard |
Edge
MSCI Minimum Volatility Global ETF |
BlackRock
(iShares) |
Emerging
Markets Government Bond ETF |
Vanguard |
Energy
ETF |
Vanguard |
Financial
Sector ETF |
State
Street Global Advisors (SPDR®) |
Global
ex-US Real Estate ETF |
Vanguard |
Global
Infrastructure ETF |
BlackRock
(iShares) |
Health
Care ETF |
Vanguard |
Information
Technology ETF |
Vanguard |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Materials
ETF |
Vanguard |
Mid-Cap
ETF |
Vanguard |
REIT
ETF |
Vanguard |
S&P
500 ETF |
Vanguard |
Senior
Loan ETF |
Invesco
Advisers, Inc. (PowerShares) |
Short
Term Corporate Bond ETF |
State
Street Global Advisors (SPDR®) |
Short-Term
Corporate Bond ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
USD
High Yield Corporate Bond ETF |
DWS
Investment Management Americas Inc.
(Xtrackers) |
|
|
Multi-Index
2025 Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Dividend
Appreciation ETF |
Vanguard |
Edge
MSCI Minimum Volatility Global ETF |
BlackRock
(iShares) |
Emerging
Markets Government Bond ETF |
Vanguard |
Energy
ETF |
Vanguard |
Global
ex-US Real Estate ETF |
Vanguard |
Global
Infrastructure ETF |
BlackRock
(iShares) |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Materials
ETF |
Vanguard |
REIT
ETF |
Vanguard |
S&P
500 ETF |
Vanguard |
Senior
Loan ETF |
Invesco
Advisers, Inc. (PowerShares) |
Short
Term Corporate Bond ETF |
State
Street Global Advisors (SPDR®) |
Short-Term
Corporate Bond ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
USD
High Yield Corporate Bond ETF |
DWS
Investment Management Americas Inc.
(Xtrackers) |
|
|
Multi-Index
Income Preservation Portfolio |
Underlying
fund |
Subadvisor |
Strategic
Equity Allocation Fund |
Manulife
Investment Management (US) LLC |
Underlying
ETFs |
Provider |
Dividend
Appreciation ETF |
Vanguard |
Edge
MSCI Minimum Volatility Global ETF |
BlackRock
(iShares) |
Emerging
Markets Government Bond ETF |
Vanguard |
Energy
ETF |
Vanguard |
Global
ex-US Real Estate ETF |
Vanguard |
Global
Infrastructure ETF |
BlackRock
(iShares) |
Intermediate-Term
Corporate Bond ETF |
Vanguard |
Materials
ETF |
Vanguard |
REIT
ETF |
Vanguard |
S&P
500 ETF |
Vanguard |
Senior
Loan ETF |
Invesco
Advisers, Inc. (PowerShares) |
Short
Term Corporate Bond ETF |
State
Street Global Advisors (SPDR®) |
Short-Term
Corporate Bond ETF |
Vanguard |
Total
Bond Market ETF |
Vanguard |
USD
High Yield Corporate Bond ETF |
DWS
Investment Management Americas Inc.
(Xtrackers) |
Choosing
an eligible share class
Class R2
and Class R4 shares have a Rule 12b-1 plan that allows the class to
pay fees for
the sale, distribution, and service of its shares. Class
I and Class
R6 shares
do not have a Rule 12b-1 plan. Your
financial
professional can help you decide which share class you are eligible to
buy and is best for you. Each class’s eligibility guidelines are described
below.
Class
I shares
Class I
shares are offered without any sales charge to the following types of
investors if they also meet the minimum initial investment requirement
for purchases of Class I shares (see “Opening an account”):
• |
Clients
of financial intermediaries who: (i) charge such clients a fee for
advisory,
investment, consulting, or similar services; (ii) have entered
into
an agreement with the distributor to offer Class I shares through a
no-load
program or investment platform; or (iii) have entered into an agreement
with the distributor to offer Class I shares to clients on certain
brokerage platforms where the intermediary is acting solely as
an
agent for the investor who may be required to pay a commission
and/or
other forms of compensation to the intermediary. Other share classes
of the fund have different fees and
expenses. |
• |
Retirement
and other benefit plans |
• |
Endowment
funds and foundations |
• |
Any
state, county, or city, or its instrumentality, department, authority,
or
agency |
• |
Accounts
registered to insurance companies, trust companies, and bank
trust departments |
• |
Any
entity that is considered a corporation for tax
purposes |
• |
Investment
companies, both affiliated and not affiliated with the advisor |
• |
Fund
Trustees and other individuals who are affiliated with the fund
and
other John Hancock funds |
Class
R2 and Class R4 shares
Class R2
and Class R4 shares are available to certain types of investors, as noted
below:
• |
Qualified
tuition programs under Section 529 (529 plans) of the Internal
Revenue Code of 1986, as amended (the Code), distributed by
John Hancock or one of its affiliates |
• |
Retirement
plans, including pension, profit-sharing, and other plans qualified
under Section 401(a) or described in Section 403(b) or 457 of
the Code, and nonqualified deferred compensation
plans |
• |
Retirement
plans, Traditional and Roth IRAs, Coverdell Education Savings
Accounts, SEPs, SARSEPs, and SIMPLE IRAs where the shares are
held on the books of the fund through investment-only omnibus accounts
(either at the plan level or at the level of the financial service
firm)
that trade through the National Securities Clearing Corporation
(NSCC) |
Except
as noted above, Class R2 and Class R4 shares are not available to
retail or institutional non-retirement accounts, Traditional and Roth
IRAs,
Coverdell Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs,
individual 403(b) plans, or other individual retirement
accounts.
Class
R6 shares
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.
(See “Opening an account.”)
• |
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
pension plans) (collectively, qualified
plans) |
• |
Endowment
funds and foundations |
• |
Any
state, county, or city, or its instrumentality, department, authority,
or
agency |
• |
403(b)
plans and 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 advisor |
• |
Any
entity that is considered a corporation for tax purposes, including
corporate
nonqualified deferred compensation plans of such corporations |
• |
Trustees,
employees of the advisor or its affiliates, employees of the subadvisor,
members of the fund’s portfolio management team and the
spouses and children (under age 21) of the
aforementioned |
• |
Financial
intermediaries utilizing fund shares in certain eligible qualifying
investment product platforms under a signed agreement with
the distributor |
Class R6
shares may not be available through certain investment dealers.
The
availability of Class R6 shares for qualified plan investors will depend upon
the policies of your financial intermediary and/or the recordkeeper
for your qualified plan.
Class R6
shares also are generally available only to qualified plan investors
where plan level or omnibus accounts are held on the books of the
fund.
Class R6
shares are not available to retail non-retirement accounts, Traditional
and Roth individual retirement accounts (IRAs), Coverdell Education
Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs, and 529 college
savings plans.
Class
cost structure
Class
I shares
• |
No
front-end or deferred sales charges; however, if you purchase Class
I shares through a broker acting solely as an agent on behalf of
its
customers, you may be required to pay a commission to the
broker |
Class
R2 shares
• |
No
front-end or deferred sales charges; all your money goes to work
for
you right away |
• |
Rule
12b-1 fees of 0.25% |
Class
R4 shares
• |
No
front-end or deferred sales charges; all your money goes to work
for
you right away |
• |
Rule
12b-1 fees of 0.15% (under the Rule 12b-1 plan, the distributor
has
the ability to collect 0.25%; however, the distributor has contractually
agreed to waive 0.10% of these fees through December 31,
2022) |
Class
R6 shares
• |
No
front-end or deferred sales charges; all your money goes to work
for
you right away |
Rule
12b-1 fees
Rule 12b-1
fees will be paid to the fund’s distributor, John Hancock Investment
Management Distributors LLC, and may be used by the distributor
for expenses relating to the sale, distribution of, and shareholder
or administrative services for holders of the shares of the class, and
for the payment of service fees that come within Rule 2341 of the Conduct
Rules of the Financial Industry Regulatory Authority (FINRA).
Because
Rule 12b-1 fees are paid out of the fund’s assets on an ongoing basis,
over time they will increase the cost of your investment and may
cost
shareholders more than other types of sales charges.
Your
broker-dealer or agent may charge you a fee to effect transactions
in
fund shares. Other share classes of the fund, which have their own
expense
structure, may be offered in separate prospectuses.
Class
R service plan
In addition
to the Rule 12b-1 plans, the fund has adopted plans for Class R2 and
Class R4 shares that authorize the fund to pay affiliated and unaffiliated
entities a service fee for providing certain recordkeeping and other
administrative services in connection with investments in the fund by
retirement plans. The service fee is a specified percentage of the average
daily net assets of the fund’s share class held by plan participants
and is up to 0.25% for Class R2 shares and 0.10% for Class R4
shares.
The
performance and expense information included in this prospectus does not
reflect fees and expenses of any plan that may use a fund as its underlying
investment option. If such fees and expenses had been reflected,
performance would be lower.
Each fund
is designed so that it can qualify as a qualified default investment
alternative (QDIA) within the meaning of the regulations promulgated
by the U.S. Department of Labor for accounts held by retirement
plans subject to ERISA. Your retirement plan fiduciary, and not the
funds or their investment advisor, is responsible for determining whether the
fund qualifies as a QDIA.
Additional
payments to financial intermediaries
Class R2
and Class R4 shares of the fund are primarily sold through financial
intermediaries, such as brokers, banks, registered investment advisors,
financial planners, and retirement plan administrators. These firms may
be compensated for selling shares of the fund in two principal ways:
• |
directly,
by the payment of sales commissions, if any;
and |
• |
indirectly,
as a result of the fund paying Rule 12b-1
fees. |
Class I
shares do not carry sales commissions or pay Rule 12b-1 fees. However, if
you purchase Class I shares through a broker acting solely as
an agent on
behalf of its customers, you may be required to pay a commission
to the broker.
No dealer
compensation is paid from fund assets on sales of Class R6 shares.
Class R6 shares do not carry sales commissions, pay Rule 12b-1 fees, or
make payments to financial intermediaries to assist in the distributor’s
efforts to promote the sale of the fund’s shares. Neither the fund nor
its affiliates make any type of administrative or service payments in
connection with investments in Class R6 shares.
Except with
respect to Class R6 shares, certain firms may request, and the
distributor may agree to make, payments in addition to sales commissions
and Rule 12b-1 fees, if applicable, out of the distributor’s own
resources.
These
additional payments are sometimes referred to as revenue sharing.
These payments assist in the distributor’s efforts to promote the sale of the
fund’s shares. The distributor agrees with the firm on the methods for
calculating any additional compensation, which may include the level
of sales or assets attributable to the firm. Not all firms receive additional
compensation, and the amount of compensation varies. These payments
could be significant to a firm. The distributor determines which firms
to support and the extent of the payments it is willing to make. The
distributor generally chooses to compensate firms that have a strong
capability to distribute shares of the fund and that are willing to cooperate
with the distributor’s promotional efforts.
The
distributor hopes to benefit from revenue sharing by increasing the fund’s net
assets, which, as well as benefiting the fund, would result in additional
management and other fees for the advisor and its affiliates. In
consideration for revenue sharing, a firm may feature the fund in its
sales
system or give preferential access to members of its sales force or management.
In addition, the firm may agree to participate in the distributor’s
marketing efforts by allowing the distributor or its affiliates to
participate in conferences, seminars, or other programs attended by the
intermediary’s sales force. Although an intermediary may seek revenue-sharing
payments to offset costs incurred by the firm in servicing
its clients who have invested in the fund, the intermediary may earn a
profit on these payments. Revenue-sharing payments may provide your firm
with an incentive to favor the fund.
The SAI
discusses the distributor’s revenue-sharing arrangements in more
detail. Your intermediary may charge you additional fees other than those
disclosed in this prospectus. You can ask your firm about any payments it
receives from the distributor or the fund, as well as about fees and/or
commissions it charges.
The
distributor, advisor, and their affiliates may have other relationships
with your
firm relating to the provisions of services to the fund, such as providing
omnibus account services, transaction-processing services, or effecting
portfolio transactions for the fund. If your intermediary provides
these services, the advisor or the fund may compensate the intermediary
for these services. In addition, your intermediary may have other
compensated relationships with the advisor or its affiliates that are
not related
to the fund.
Opening
an account
1 |
Read
this prospectus carefully. |
2 |
Determine
if you are eligible by referring to “Choosing an eligible share
class.” |
3 |
Determine
how much you want to invest. There is no minimum initial investment
to purchase Class R2 and Class R4 shares. The minimum initial
investments for Class I and
Class R6
shares are described below.
There are no subsequent investment requirements for these share
classes. |
|
|
Share
Class |
Minimum
initial investment |
Class
I |
$250,000.
However, the minimum initial investment requirement
may be waived, at the fund’s sole discretion, for
investors in certain fee-based, wrap, or other investment
platform programs, or in certain brokerage platforms
where the intermediary is acting solely as an agent
for the investor. The fund also may waive the minimum
initial investment for other categories of investors
at its discretion, including for: (i) Trustees, (ii) employees
of the advisor or its affiliates, and (iii) members
of the fund’s portfolio management team. |
Class
R6 |
$1
million. However, there is no minimum initial investment
requirement for: (i) qualified and nonqualified plan
investors; (ii) certain eligible qualifying investment product
platforms; or (iii) Trustees, employees of the advisor
or its affiliates, employees of the subadvisor, members
of the fund’s portfolio management team and the
spouses and children (under age 21) of the aforementioned. |
4 |
All
Class I and
Class R6
shareholders must complete the account application,
carefully following the instructions. If you have any questions,
please contact your financial professional or call 888-972-8696
for Class I and Class R6 shares. |
5 |
Eligible
retirement plans generally may open an account and purchase Class
R2 or
Class R4 shares by contacting any broker-dealer or other financial
service firm authorized to sell Class R2 or
Class R4 shares of the
fund. Additional shares may be purchased through a retirement plan’s
administrator or recordkeeper. |
6 |
For
Class I and
Class R6
shares, make your initial investment using the instructions
under “Buying shares.” You and your financial professional
can initiate any purchase, exchange, or sale of
shares. |
Important
information about opening a new account
To help the
government fight the funding of terrorism and money laundering
activities, the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001 (USA PATRIOT Act) requires all financial institutions
to obtain, verify, and record information that identifies each person or
entity that opens an account.
For
individual investors opening an account. When you
open an account,
you will be asked for your name, residential address, date of birth, and
Social Security number.
For
investors other than individuals. When you
open an account, you will be
asked for the name of the entity, its principal place of business, and
taxpayer identification number (TIN), and you may be requested to provide
information on persons with authority or control over the
account,
including, but not limited to, name, residential address, date of birth, and
Social Security number. You may also be asked to provide documents,
such as articles of incorporation, trust instruments, or partnership
agreements, and other information that will help Signature Services
identify the entity. Please see the mutual fund account application
for more details.
Information
for plan participants
Plan
participants generally must contact their plan service provider to purchase,
redeem, or exchange shares. The administrator of a retirement
plan or employee benefits office can provide participants with detailed
information on how to participate in the plan, elect a fund as an investment
option, elect different investment options, alter the amounts contributed
to the plan, or change allocations among investment options.
For questions about participant accounts, participants should contact
their employee benefits office, the plan administrator, or the organization
that provides recordkeeping services for the plan.
Financial
service firms may provide some of the shareholder servicing and account
maintenance services required by retirement plan accounts and their
plan participants, including transfers of registration, dividend payee
changes, and generation of confirmation statements, and may arrange for
plan administrators to provide other investment or administrative
services. Financial service firms may charge retirement plans and
plan participants transaction fees and/or other additional amounts for
such services. Similarly, retirement plans may charge plan participants
for certain expenses. These fees and additional amounts could
reduce an investment return in the fund.
Buying
shares
Class
I
shares
|
|
Opening
an account |
Adding
to an account |
By
check |
|
|
-
If
your account statement has a detachable investment slip, please
complete
it in its entirety. If no slip is available, include a note specifying
the
fund name, your share class, your account number, and the name(s) in
which
the account is registered.
|
By
exchange |
|
|
|
By
wire |
|
-
Instruct
your bank to wire the amount of your investment. Specify the
fund
name, the share class, your account number, and the name(s) in
which
the account is registered. Your bank may charge a fee to wire
funds. |
-
Instruct
your bank to wire the amount of your investment. Specify the fund
name,
the share class, your account number, and the name(s) in which the
account
is registered. Your bank may charge a fee to wire
funds. |
By
internet |
|
|
|
By
phone |
|
|
|
|
|
|
|
Regular
mail John
Hancock Signature Services, Inc. P.O.
Box 219909 Kansas
City, MO 64121-9909 |
Express
delivery John
Hancock Signature Services, Inc. 430 W
7th Street Suite
219909 Kansas
City, MO 64105-1407 |
Website jhinvestments.com |
Signature
Services, Inc. 888-972-8696 |
Buying
shares
Class
R6 shares
|
|
Opening
an account |
Adding
to an account |
By
check |
|
|
-
If
your account statement has a detachable investment slip, please
complete
it in its entirety. If no slip is available, include a note specifying
the
fund name, the share class, your account number, and the name(s) in
which
the account is registered.
|
By
exchange |
|
|
|
By
wire |
|
-
Instruct
your bank to wire the amount of your investment. Specify the
fund
name, the share class, your account number, and the name(s) in
which
the account is registered. Your bank may charge a fee to wire
funds. |
-
Instruct
your bank to wire the amount of your investment. Specify the fund
name,
the share class, your account number, and the name(s) in which the
account
is registered. Your bank may charge a fee to wire
funds. |
By
internet |
|
|
|
By
phone |
|
|
|
|
|
|
|
Regular
mail John
Hancock Signature Services, Inc. P.O.
Box 219909 Kansas
City, MO 64121-9909 |
Express
delivery John
Hancock Signature Services, Inc. 430 W
7th Street Suite
219909 Kansas
City, MO 64105-1407 |
Website jhinvestments.com |
Signature
Services, Inc. 888-972-8696 |
Selling
shares
Class
I
shares
|
|
|
To
sell some or all of your shares |
By
letter |
|
|
-
Write
a letter of instruction or complete a stock power indicating the fund
name,
the share class, your account number, the name(s) in which the
account
is registered, and the dollar value or number of shares you wish to
sell.
|
By
internet |
|
|
|
By
phone |
|
Amounts
up to $100,000:
Amounts
up to $5 million:
-
Available
to the following types of accounts: custodial accounts held by
banks, trust companies, or broker-dealers; endowments and foundations;
corporate accounts; group retirement plans; and pension
accounts (excluding IRAs, 403(b) plans, and all John Hancock
custodial retirement accounts) |
-
To
place your request with a representative at John Hancock, call
Signature
Services between 8:30 A.M.
and 5:00 P.M.,
Eastern time, on most business
days, or contact your financial professional.
-
Redemption
proceeds exceeding $100,000 will be wired to your designated
bank account, unless a Medallion signature guaranteed letter
is
provided requesting payment by check. Please refer to “Selling shares in
writing.” |
By
wire or electronic funds transfer (EFT) |
|
|
|
By
exchange |
|
|
|
|
|
|
|
Regular
mail John
Hancock Signature Services, Inc. P.O.
Box 219909 Kansas
City, MO 64121-9909 |
Express
delivery John
Hancock Signature Services, Inc. 430 W
7th Street Suite
219909 Kansas
City, MO 64105-1407 |
Website jhinvestments.com |
Signature
Services, Inc. 888-972-8696 |
Selling
shares in writing
Class
I shares
In certain
circumstances, you will need to make your request to sell shares in writing. You
may need to include additional items with your request, unless they
were previously provided to Signature Services and are still accurate. These
items are shown in the table below. You may also need to include a
signature guarantee, which protects you against fraudulent orders. You will need
a signature guarantee if:
• |
your
address or bank of record has changed within the past 30 days, and you
would like the payment to be sent to your new address or
bank; |
• |
you
are selling more than $100,000 worth of shares and are requesting payment
by check (this requirement is waived for certain entities operating
under
a signed fax trading agreement with John
Hancock); |
• |
you
are selling more than $5 million worth of shares from the following types
of accounts: custodial accounts held by banks, trust companies, or
broker-dealers;
endowments and foundations; corporate accounts; group retirement plans;
and pension accounts (excluding IRAs, 403(b) plans, and
all John Hancock custodial retirement accounts);
or |
• |
you
are requesting payment other than by a check mailed to the address/bank of
record and payable to the registered
owner(s). |
You will
need to obtain your signature guarantee from a member of the Medallion Signature
Guarantee Program. Most broker-dealers, banks, credit unions, and
securities exchanges are members of this program. A notary public CANNOT provide
a signature guarantee.
|
|
Seller |
Requirements
for written requests |
Owners
of individual, joint, or UGMA/UTMA accounts (custodial accounts
for minors) |
|
Owners
of corporate, sole proprietorship, general partner, or association
accounts |
|
Owners
or trustees of trust accounts |
|
Joint
tenancy shareholders with rights of survivorship with deceased
co-tenant(s) |
|
Executors
of shareholder estates |
|
Administrators,
conservators, guardians, and other sellers, or account types
not listed above |
|
|
|
|
|
Regular
mail John
Hancock Signature Services, Inc. P.O.
Box 219909 Kansas
City, MO 64121-9909 |
Express
delivery John
Hancock Signature Services, Inc. 430 W
7th Street Suite
219909 Kansas
City, MO 64105-1407 |
Website jhinvestments.com |
Signature
Services, Inc. 888-972-8696 |
Selling
shares
Class
R6 shares
|
|
|
To
sell some or all of your shares |
By
letter |
|
|
-
Write
a letter of instruction or complete a stock power indicating the fund
name,
the share class, your account number, the name(s) in which the
account
is registered, and the dollar value or number of shares you wish to
sell.
|
By
internet |
|
|
|
By
phone |
|
Amounts
up to $5 million:
|
-
To
place your request with a representative at John Hancock, call
Signature
Services between 8:30 A.M.
and 5:00 P.M.,
Eastern time, on most business
days, or your financial professional.
-
Redemption
proceeds exceeding $100,000 will be wired to your designated
bank account, unless a Medallion signature guaranteed letter
is
provided requesting payment by check. Please refer to “Selling shares in
writing.” |
By
wire or electronic funds transfer (EFT) |
|
|
|
By
exchange |
|
|
|
|
|
|
|
Regular
mail John
Hancock Signature Services, Inc. P.O.
Box 219909 Kansas
City, MO 64121-9909 |
Express
delivery John
Hancock Signature Services, Inc. 430 W
7th Street Suite
219909 Kansas
City, MO 64105-1407 |
Website jhinvestments.com |
Signature
Services, Inc. 888-972-8696 |
Selling
shares in writing
Class
R6 shares
In certain
circumstances, you will need to make your request to sell shares in writing. You
may need to include additional items with your request, unless they
were previously provided to Signature Services and are still accurate. These
items are shown in the table below. You may also need to include a
signature guarantee, which protects you against fraudulent orders. You will need
a signature guarantee if:
• |
your
address or bank of record has changed within the past 30 days, and you
would like the payment to be sent to your new address or
bank; |
• |
you
are selling more than $100,000 worth of shares and are requesting payment
by check (this requirement is waived for certain entities operating
under
a signed fax trading agreement with John
Hancock); |
• |
you
are selling more than $5 million worth of shares from the following types
of accounts: custodial accounts held by banks, trust companies, or
broker-dealers;
endowments and foundations; corporate accounts; and group retirement
plans; or |
• |
you
are requesting payment other than by a check mailed to the address/bank of
record and payable to the registered
owner(s). |
You will
need to obtain your signature guarantee from a member of the Medallion Signature
Guarantee Program. Most broker-dealers, banks, credit unions, and
securities exchanges are members of this program. A notary public CANNOT provide
a signature guarantee.
|
|
Seller |
Requirements
for written requests |
Owners
of individual, joint, or UGMA/UTMA accounts (custodial accounts
for minors) |
|
Owners
of corporate, sole proprietorship, general partner, or association
accounts |
|
Owners
or trustees of trust accounts |
|
Joint
tenancy shareholders with rights of survivorship with deceased
co-tenant(s) |
|
Executors
of shareholder estates |
|
Administrators,
conservators, guardians, and other sellers, or account types
not listed above |
|
|
|
|
|
Regular
mail John
Hancock Signature Services, Inc. P.O.
Box 219909 Kansas
City, MO 64121-9909 |
Express
delivery John
Hancock Signature Services, Inc. 430 W
7th Street Suite
219909 Kansas
City, MO 64105-1407 |
Website jhinvestments.com |
Signature
Services, Inc. 888-972-8696 |
Transaction
policies
Unless
otherwise noted, in this section, references to a single fund apply
equally
to all of the funds.
Valuation
of shares
The net
asset value (NAV) for each class of shares of the fund is normally determined
once daily as of the close of regular trading on the New York Stock
Exchange (NYSE) (typically 4:00 P.M., Eastern
time, on each business
day that the NYSE is open). In case of emergency or other disruption
resulting in the NYSE not opening for trading or the NYSE closing at
a time other than the regularly scheduled close, the NAV may be
determined as of the regularly scheduled close of the NYSE pursuant to the
fund’s Valuation Policies and Procedures. The time at which shares and
transactions are priced and until which orders are accepted may vary to
the extent permitted by the Securities and Exchange Commission
and applicable regulations. On holidays or other days when the NYSE is
closed, the NAV is not calculated and the fund does not transact
purchase or redemption requests. Trading of securities that are primarily
listed on foreign exchanges may take place on weekends and U.S.
business holidays on which the fund’s NAV is not calculated. Consequently,
the fund’s portfolio securities may trade and the NAV of the fund’s
shares may be significantly affected on days when a shareholder
will not be able to purchase or redeem shares of the fund. The NAV for
the fund is calculated based upon the NAVs of the underlying
funds and other investments in which it invests. The prospectuses
for the underlying funds explain the circumstances under which those
underlying funds use fair-value pricing and the effects of doing
so.
Each class
of shares of the fund has its own NAV, which is computed by dividing
the total assets, minus liabilities, allocated to each share class by the
number of fund shares outstanding for that class. The current NAV of the
fund is available on our website at jhinvestments.com.
Valuation
of securities
Portfolio
securities are valued by various methods that are generally described
below. Portfolio securities also may be fair valued by the fund’s
Pricing Committee in certain instances pursuant to procedures established
by the Trustees. Equity securities are generally valued at the last sale
price or, for certain markets, the official closing price as of the close of
the relevant exchange. Securities not traded on a particular day are valued
using last available bid prices. A security that is listed or traded on
more than one exchange is typically valued at the price on the exchange
where the security was acquired or most likely will be sold. In certain
instances, the Pricing Committee may determine to value equity securities
using prices obtained from another exchange or market if trading on
the exchange or market on which prices are typically obtained did not
open for trading as scheduled, or if trading closed earlier than scheduled,
and trading occurred as normal on another exchange or market.
Equity securities traded principally in foreign markets are typically
valued using the last sale price or official closing price in the relevant
exchange or market, as adjusted by an independent pricing vendor to
reflect fair value. On any day a foreign market is closed and the NYSE is
open, any foreign securities will typically be valued using the last
price or
official closing price obtained from the relevant exchange on the prior
business day adjusted based on information provided by an independent
pricing vendor to reflect fair value. Debt obligations are
typically
valued based on evaluated prices provided by an independent pricing
vendor. The value of securities denominated in foreign currencies is
converted into U.S. dollars at the exchange rate supplied by an independent
pricing vendor. Forward foreign currency contracts are valued at
the prevailing forward rates which are based on foreign currency
exchange spot rates and forward points supplied by an independent
pricing vendor. Exchange-traded options are valued at the mid-price
of the last quoted bid and ask prices. Futures contracts whose settlement
prices are determined as of the close of the NYSE are typically
valued based on the settlement price while other futures contracts
are typically valued at the last traded price on the exchange on which they
trade. Foreign equity index futures that trade in the electronic trading
market subsequent to the close of regular trading may be valued at the last
traded price in the electronic trading market as of the close of the NYSE,
or may be fair valued based on fair value adjustment factors provided by
an independent pricing vendor in order to adjust for events that may
occur between the close of foreign exchanges or markets and the close
of the NYSE. Swaps and unlisted options are generally valued using
evaluated prices obtained from an independent pricing vendor. Shares of
other open-end investment companies that are not exchange-traded
funds (underlying funds) are valued based on the NAVs of such
underlying funds.
Pricing
vendors may use matrix pricing or valuation models that utilize certain
inputs and assumptions to derive values, including transaction data,
broker-dealer quotations, credit quality information, general market
conditions, news, and other factors and assumptions. The fund may receive
different prices when it sells odd-lot positions than it would receive for
sales of institutional round lot positions. Pricing vendors generally
value securities assuming orderly transactions of institutional round lot
sizes, but a fund may hold or transact in such securities in smaller,
odd lot sizes.
The Pricing
Committee engages in oversight activities with respect to pricing
vendors, which includes, among other things, monitoring significant
or unusual price fluctuations above predetermined tolerance levels from
the prior day, back-testing of pricing vendor prices against actual
trades, conducting periodic due diligence meetings and reviews, and
periodically reviewing the inputs, assumptions and methodologies used by
these vendors. Nevertheless, market quotations, official closing prices, or
information furnished by a pricing vendor could be inaccurate, which could
lead to a security being valued incorrectly.
If market
quotations, official closing prices, or information furnished by a pricing
vendor are not readily available or are otherwise deemed unreliable
or not representative of the fair value of such security because of market-
or issuer-specific events, a security will be valued at its fair value as
determined in good faith by the Trustees. The Trustees are assisted in
their responsibility to fair value securities by the fund’s Pricing
Committee, and the actual calculation of a security’s fair value may be made
by the Pricing Committee acting pursuant to the procedures
established by the Trustees. In certain instances, therefore, the Pricing
Committee may determine that a reported valuation does not reflect
fair value, based on additional information available or other factors,
and may accordingly determine in good faith the fair value of the assets,
which may differ from the reported valuation.
Fair value
pricing of securities is intended to help ensure that a fund’s NAV
reflects the fair market value of the fund’s portfolio securities as of
the close
of regular trading on the NYSE (as opposed to a value that no longer
reflects market value as of such close), thus limiting the opportunity
for aggressive traders or market timers to purchase shares of the fund
at deflated prices reflecting stale security valuations and promptly
sell such shares at a gain, thereby diluting the interests of long-term
shareholders. However, a security’s valuation may differ depending
on the method used for determining value, and no assurance can be
given that fair value pricing of securities will successfully eliminate
all potential opportunities for such trading gains.
The use of
fair value pricing has the effect of valuing a security based upon the
price the fund might reasonably expect to receive if it sold that security in
an orderly transaction between market participants, but does not
guarantee that the security can be sold at the fair value price. Further,
because of the inherent uncertainty and subjective nature of fair valuation,
a fair valuation price may differ significantly from the value that would
have been used had a readily available market price for the investment
existed and these differences could be material.
Regarding
the fund’s investment in an underlying fund that is not an ETF, which (as
noted above) is valued at such underlying fund’s NAV, the prospectus
for such underlying fund explains the circumstances and effects of
fair value pricing for that underlying fund.
Buy
and sell prices
When you
buy shares, you pay the NAV. When you sell shares, you receive the
NAV.
Execution
of requests
The fund is
open for business when the NYSE is open, typically 9:30 A.M.
to 4:00
P.M. Eastern
time, Monday through Friday. A purchase or redemption
order received in good order by the fund prior to the close of regular
trading on the NYSE, on a day the fund is open for business, will be effected
at that day’s NAV. An order received in good order after the fund close
will generally be effected at the NAV determined on the next business
day. In case of emergency or other disruption resulting in the NYSE not
opening for trading or the NYSE closing at a time other than the
regularly scheduled close, the time until which orders are accepted may vary to
the extent permitted by the Securities and Exchange Commission
and applicable regulations. This may result in the fund closing for
business prior to the time at which the fund’s NAV is determined.
In this case, orders submitted after the fund closing may receive the
NAV determined on the next business day.
At times of
peak activity, it may be difficult to place requests by telephone,
if available for your share class. During these times, consider using
EASI-Line
(if available for your share class), accessing
jhinvestments.com,
or sending your request in writing.
The fund
typically expects to mail or wire redemption proceeds between 1 and 3
business days following the receipt of the shareholder’s redemption
request. Processing time is not dependent on the chosen delivery
method. In unusual circumstances, the fund may temporarily suspend the
processing of sell requests or may postpone payment of proceeds
for up to three business days or longer, as allowed by federal securities
laws.
Under
normal market conditions, the fund typically expects to meet redemption
requests through holdings of cash or cash equivalents or through
sales of portfolio securities, and may access other available
liquidity
facilities. In unusual or stressed market conditions, such as, for example,
during a period of time in which a foreign securities exchange is closed,
in addition to the methods used in normal market conditions, the fund
may meet redemption requests through the use of its line of credit,
interfund lending facility, redemptions in kind, or such other liquidity
means or facilities as the fund may have in place from time to time.
Telephone
transactions
For your
protection, telephone requests may be recorded in order to verify
their accuracy. Also for your protection, telephone redemption transactions
are not permitted on accounts in which a name, mailing address, or
recorded bank has changed within the past 30 days. Proceeds
from telephone transactions can only be sent to the address or bank on
record.
Exchanges
and conversions
You may
exchange Class I or Class
R6 shares
of one John Hancock fund for shares
of the same class of any other John Hancock fund or for John Hancock
Money Market Fund Class A shares.
You may
exchange your Class R2 or Class R4 shares for shares of the same class
of other John Hancock funds that are available through your plan, or
John Hancock Money Market Fund Class A shares.
The
registration for both accounts involved in an exchange must be identical.
Note: Once
exchanged into John Hancock Money Market Fund Class A shares,
shares may only be exchanged back into the original class from which the
shares were exchanged.
Provided
the fund’s eligibility requirements are met, and to the extent the
referenced share class is offered by the fund, an investor in the fund
pursuant to
a fee-based, wrap, or other investment platform program of certain
firms, as determined by the fund, may be afforded an opportunity to make a
conversion of (i) Class A shares and/or Class C shares (not subject to
a CDSC) also owned by the investor in the same fund to Class I shares or
Class R6 shares of that fund; or (ii) Class I shares also owned by the
investor to Class R6 shares of the same fund. Investors that no longer
participate in a fee-based, wrap, or other investment platform program of
certain firms may be afforded an opportunity to make a conversion
to Class A shares of the same fund. Class C shares may be converted
to Class A at the request of the applicable financial intermediary
after the expiration of the CDSC period, provided that the financial
intermediary through which a shareholder purchased or holds Class C
shares has records verifying that the Class C share CDSC period has expired
and the position is held in an omnibus or dealer-controlled account.
The fund may in its sole discretion permit a conversion of one share class
to another share class of the same fund in certain circumstances
other than those described above.
In
addition, Trustees, employees of the advisor or its affiliates, employees
of the subadvisor, members of the fund’s portfolio management
team and the spouses and children (under age 21) of the aforementioned,
may make a conversion of Class A or Class I shares also owned by
the investor in the same fund to Class R6 shares. If Class R6 shares are
unavailable, such investors may make a conversion of Class A shares in
the same fund to Class I shares.
The
conversion of one share class to another share class of the same
fund in
these particular circumstances should not cause the investor to realize
taxable gain or loss. For further details, see “Additional information
concerning taxes” in the SAI for information regarding taxation
upon the redemption or exchange of shares of the fund (see the back cover
of this prospectus).
The fund
may change or cancel its exchange policies at any time, upon 60 days’
written notice to its shareholders. For further details, see “Additional
services and programs” in the SAI (see the back cover of this prospectus).
Excessive
trading
The fund is
intended for long-term investment purposes only and does not
knowingly accept shareholders who engage in market timing or other types of
excessive short-term trading. Short-term trading into and out of the fund
can disrupt portfolio investment strategies and may increase fund
expenses for all shareholders, including long-term shareholders who do not
generate these costs.
Right
to reject or restrict purchase and exchange orders
Purchases
and exchanges should be made primarily for investment purposes.
The fund reserves the right to restrict, reject, or cancel (with respect to
cancellations within one day of the order), for any reason and without any
prior notice, any purchase or exchange order, including transactions
representing excessive trading and transactions accepted by any
shareholder’s financial intermediary. For example, the fund may, in its
discretion, restrict, reject, or cancel a purchase or exchange order
even if the
transaction is not subject to a specific limitation on exchange activity,
as described below, if the fund or its agent determines that accepting
the order could interfere with the efficient management of the fund’s
portfolio, or otherwise not be in the fund’s best interest in light of
unusual
trading activity related to your account. In the event that the fund
rejects or cancels an exchange request, neither the redemption nor the
purchase side of the exchange will be processed. If you would like the
redemption request to be processed even if the purchase order is rejected,
you should submit separate redemption and purchase orders rather than
placing an exchange order. The fund reserves the right to delay for
up to one business day, consistent with applicable law, the processing
of exchange requests in the event that, in the fund’s judgment,
such delay would be in the fund’s best interest, in which case both the
redemption and purchase side of the exchange will receive the fund’s NAV
at the conclusion of the delay period. The fund, through its agents in
their sole discretion, may impose these remedial actions at the account
holder level or the underlying shareholder level.
Exchange
limitation policies
The Board
of Trustees has adopted the following policies and procedures by which
the fund, subject to the limitations described below, takes steps
reasonably designed to curtail excessive trading practices.
Limitation
on exchange activity
The fund or
its agent may reject or cancel a purchase order, suspend or terminate
the exchange privilege, or terminate the ability of an investor to invest
in John Hancock funds if the fund or its agent determines that a proposed
transaction involves market timing or disruptive trading that it believes is
likely to be detrimental to the fund. The fund or its agent cannot
ensure that it will be able to identify all cases of market timing or
disruptive
trading, although it attempts to have adequate procedures in
place to do
so. The fund or its agent may also reject or cancel any purchase
order (including an exchange) from an investor or group of investors
for any other reason. Decisions to reject or cancel purchase orders
(including exchanges) in the fund are inherently subjective and will be
made in a manner believed to be in the best interest of the fund’s shareholders.
The fund does not have any arrangement to permit market timing or
disruptive trading.
Exchanges
made on the same day in the same account are aggregated for
purposes of counting the number and dollar amount of exchanges made by the
account holder. The exchange limits referenced above will not be
imposed or may be modified under certain circumstances. For example,
these exchange limits may be modified for accounts held by certain
retirement plans to conform to plan exchange limits, ERISA considerations,
or U.S. Department of Labor regulations. Certain automated
or preestablished exchange, asset allocation, and dollar-cost-averaging
programs are not subject to these exchange limits. These
programs are excluded from the exchange limitation since the fund
believes that they are advantageous to shareholders and do not offer an
effective means for market timing or excessive trading strategies.
These investment tools involve regular and predetermined purchase or
redemption requests made well in advance of any knowledge
of events affecting the market on the date of the purchase or redemption.
These
exchange limits are subject to the fund’s ability to monitor exchange
activity, as discussed under “Limitation on the ability to detect and curtail
excessive trading practices” below. Depending upon the composition
of the fund’s shareholder accounts, and in light of the limitations
on the ability of the fund to detect and curtail excessive trading
practices, a significant percentage of the fund’s shareholders may not be
subject to the exchange limitation policy described above. In applying
the exchange limitation policy, the fund considers information available
to it at the time and reserves the right to consider trading activity in
a single account or multiple accounts under common ownership,
control, or influence.
Limitation
on the ability to detect and curtail excessive trading practices
Shareholders
seeking to engage in excessive trading practices sometimes
deploy a variety of strategies to avoid detection and, despite the efforts
of the fund to prevent excessive trading, there is no guarantee that the
fund or its agent will be able to identify such shareholders or curtail
their trading practices. The ability of the fund and its agent to detect and
curtail excessive trading practices may also be limited by operational
systems and technological limitations. Because the fund will not always
be able to detect frequent trading activity, investors should not assume
that the fund will be able to detect or prevent all frequent trading or
other practices that disadvantage the fund. For example, the ability of
the fund to monitor trades that are placed by omnibus or other nominee
accounts is severely limited in those instances in which the financial
intermediary, including a financial advisor, broker, retirement plan
administrator, or fee-based program sponsor, maintains the records of
the fund’s underlying beneficial owners. Omnibus or other nominee
account arrangements are common forms of holding shares of the fund,
particularly among certain financial intermediaries, such as financial
advisors, brokers, retirement plan administrators, or fee-based program
sponsors. These arrangements often permit the financial
intermediary
to aggregate its clients’ transactions and ownership positions
and do not identify the particular underlying shareholder(s) to the fund.
However, the fund will work with financial intermediaries as necessary
to discourage shareholders from engaging in abusive trading practices
and to impose restrictions on excessive trades. In this regard, the fund
has entered into information-sharing agreements with financial intermediaries
pursuant to which these intermediaries are required to provide to
the fund, at the fund’s request, certain information relating to their
customers investing in the fund through omnibus or other nominee accounts.
The fund will use this information to attempt to identify excessive
trading practices. Financial intermediaries are contractually required to
follow any instructions from the fund to restrict or prohibit future
purchases from shareholders that are found to have engaged in excessive
trading in violation of the fund’s policies. The fund cannot guarantee
the accuracy of the information provided to it from financial intermediaries
and so cannot ensure that it will be able to detect abusive trading
practices that occur through omnibus or other nominee accounts.
As a consequence, the fund’s ability to monitor and discourage
excessive trading practices in these types of accounts may be
limited.
Excessive
trading risk
To the
extent that the fund or its agent is unable to curtail excessive trading
practices in the fund, these practices may interfere with the efficient
management of the fund’s portfolio and may result in the fund engaging in
certain activities to a greater extent than it otherwise would, such as
maintaining higher cash balances, using its line of credit, and engaging in
increased portfolio transactions. Increased portfolio transactions
and use of the line of credit would correspondingly increase the fund’s
operating costs and decrease the fund’s investment performance.
Maintenance of higher levels of cash balances would likewise
result in lower fund investment performance during periods of rising
markets.
While
excessive trading can potentially occur in the fund, certain types of funds
are more likely than others to be targets of excessive trading. For
example:
• |
A
fund that invests a significant portion of its assets in small- or
mid-capitalization
stocks or securities in particular industries that may trade
infrequently or are fair valued as discussed under “Valuation of
securities”
entails a greater risk of excessive trading, as investors may seek
to trade fund shares in an effort to benefit from their understanding
of the value of those types of securities (referred to as price
arbitrage). |
• |
A
fund that invests a material portion of its assets in securities of
foreign
issuers may be a potential target for excessive trading if investors
seek to engage in price arbitrage based upon general trends in
the securities markets that occur subsequent to the close of the
primary
market for such securities. |
• |
A
fund that invests a significant portion of its assets in below-investment-grade
(junk) bonds that may trade infrequently or are
fair valued as discussed under “Valuation of securities” incurs a
greater
risk of excessive trading, as investors may seek to trade fund
shares
in an effort to benefit from their understanding of the value of
those
types of securities (referred to as price
arbitrage). |
Any
frequent trading strategies may interfere with efficient management of a fund’s
portfolio and raise costs. A fund that invests in the types of securities
discussed above may be exposed to this risk to a greater degree than
a fund that invests in highly liquid securities. These risks would be
less significant, for example, in a fund that primarily invests in U.S.
government securities, money market instruments, investment-grade
corporate issuers, or large-capitalization U.S. equity securities.
Any successful price arbitrage may cause dilution in the value of the fund
shares held by other shareholders.
Account
information
The fund is
required by law to obtain information for verifying an account holder’s
identity. For example, an individual will be required to supply his or her
name, residential address, date of birth, and Social Security number. If
you do not provide the required information, we may not be able to
open your account. If verification is unsuccessful, the fund may close your
account, redeem your shares at the next NAV, minus any
applicable
sales charges, and take
any other steps that it deems reasonable.
Certificated
shares
The fund
does not issue share certificates. Shares are electronically recorded.
Sales
in advance of purchase payments
When you
place a request to sell shares for which the purchase money has not yet
been collected, the request will be executed in a timely fashion,
but the fund will not release the proceeds to you until your purchase
payment clears. This may take up to 10 business days after the
purchase.
Dividends
and account policies
Account
statements
For Class
I and Class
R6 shares,
in general, you will receive account statements
as follows:
• |
after
every transaction (except a dividend reinvestment) that affects
your
account balance |
• |
after
any changes of name or address of the registered
owner(s) |
• |
in
all other circumstances, every quarter |
For Class
R2 and Class R4 shares, you will receive account statements from your
plan’s recordkeeper.
Every year
you should also receive, if applicable, a Form 1099 tax information
statement, mailed by February 15. For Class R2 and Class R4 shares,
this information statement will be mailed by your plan’s recordkeeper.
Dividends
Each fund
typically declares
and pays income dividends at least annually.
Capital gains, if any, are typically
distributed
at least annually, typically
after the end of the fund’s fiscal year.
Dividend
reinvestments
Most
investors have their dividends reinvested in additional shares of the
same class
of the same fund. If you choose this option, or if you do not indicate
any choice, your dividends will be reinvested. Alternatively, you may choose
to have your dividends and capital gains sent directly to
your bank
account or a check may be mailed if your combined dividend and capital
gains amount is $10 or more. However, if the check is not deliverable
or the combined dividend and capital gains amount is less than $10,
your proceeds will be reinvested. If five or more of your dividend or
capital gains checks remain uncashed after 180 days, all subsequent
dividends and capital gains will be reinvested. No front-end sales
charge or CDSC will be imposed on shares derived from reinvestment
of dividends or capital gains distributions.
Taxability
of dividends
For
investors who are not exempt from federal income taxes, dividends you receive
from a fund, whether reinvested or taken as cash, are generally
considered taxable. Dividends from a fund’s short-term capital gains are
taxable as ordinary income. Dividends from a fund’s long-term capital
gains are taxable at a lower rate. Whether gains are short-term or long-term
depends on a fund’s holding period. Some dividends paid in January may
be taxable as if they had been paid the previous December.
The Form
1099 that is mailed to you every February, if applicable, details
your dividends and their federal tax category, although you should
verify your tax liability with your tax professional.
Returns
of capital
If a fund’s
distributions exceed its taxable income and capital gains realized
during a taxable year, all or a portion of the distributions made in the same
taxable year may be recharacterized as a return of capital to shareholders.
A return of capital distribution will generally not be taxable,
but will reduce each shareholder’s cost basis in the fund and result in a
higher reported capital gain or lower reported capital loss when those
shares on which the distribution was received are sold.
Taxability
of transactions
Any time
you sell or exchange shares, it is considered a taxable event for you if you
are not exempt from federal income taxes. Depending on the purchase
price and the sale price of the shares you sell or exchange, you may have a
gain or a loss on the transaction. You are responsible for any tax
liabilities generated by your transactions.
Additional
investor services
Retirement
plans
John
Hancock funds offer a range of retirement plans, including Traditional
and Roth IRAs, Coverdell ESAs, SIMPLE plans, and SEPs. Using these
plans, you can invest in any John Hancock fund. To find out more, call
Signature Services at 800-225-5291.
John
Hancock does not accept requests to establish new John Hancock custodial
403(b)(7) accounts, does not accept requests for exchanges or
transfers into your existing John Hancock custodial 403(b)(7) accounts,
and requires additional disclosure documentation if you direct John
Hancock to exchange or transfer some or all of your John Hancock custodial
403(b)(7) account assets to another 403(b)(7) contract or account. In
addition, the fund no longer accepts salary deferrals into 403(b)(7)
accounts. Please refer to the SAI for more information regarding
these restrictions.
Disclosure
of fund holdings
All of the
holdings of each fund will be posted to the website no earlier than 15
days after each calendar month end, and will remain posted on
the website
for six months. All of the funds’ holdings as of the end of the third month
of every fiscal quarter will be disclosed on Form N-PORT within 60
days of the end of the fiscal quarter. All of the funds’ holdings as of the
end of the second and fourth fiscal quarters will be disclosed on Form N-CSR
within 70 days of the end of such fiscal quarters. A description
of each fund’s policies and procedures with respect to the disclosure
of its portfolio securities is available in the SAI.
For more
information
The
following documents
are available that offer further information on the fund:
Annual/semiannual
reports to shareholders
Additional
information about a fund’s investments is available in the fund’s annual and
semiannual reports to shareholders. In a fund’s annual report, you will
find a
discussion of the market conditions and investment strategies that significantly
affected the fund’s performance during its last fiscal year.
As of
January 1, 2021, paper copies of the funds’ shareholder reports are no longer
sent by
mail. Instead, the reports are
made
available on jhinvestments.com,
and you will be notified and provided with a link each time a report is posted
to the website. You may request to receive paper reports from a fund or
from your financial intermediary, free of charge, at any time. You may also
request to receive documents through eDelivery.
Statement
of Additional Information (SAI)
The SAI
contains more detailed information on all aspects of a fund and includes a
summary of a fund’s policy regarding disclosure of its portfolio holdings, as
well as
legal and regulatory matters. A current SAI has been filed with the SEC and is
incorporated by reference into (and is legally a part of) this
prospectus.
To
obtain a free copy of these documents or request other
information
There are
several ways you can get a current annual/semiannual report, prospectus, or SAI
from John Hancock, request other information, or make inquiries:
Online:
jhinvestments.com
By
mail:
John
Hancock Signature Services, Inc.
P.O. Box
219909
Kansas
City, MO 64121-9909
By
phone:
888-972-8696 for Class I, Class
R2, Class
R4, and Class R6 shares
By
TTY:
888-999-4721 for Class
I and Class
R6
shares
You can
also view or obtain copies of these documents through the SEC:
Online:
sec.gov
|
|
©
2022 John Hancock Investment Management Distributors LLC, Member FINRA,
SIPC 200
Berkeley Street Boston, MA 02116 800-225-5291,
jhinvestments.com
Manulife,
Manulife Investment Management, Stylized M Design, and Manulife Investment
Management & Stylized M Design are trademarks of The Manufacturers
Life Insurance
Company and are used by its affiliates under license. |
|
SEC
file number: 811-21779 RC0PN
1/1/22 |