Not FDIC insured. May lose value. no bank guarantee. not insured by any government agency. John Hancock Lifestyle Portfolios

Transcription

1 Not FDIC insured. May lose value. no bank guarantee. not insured by any government agency. John Hancock Lifestyle s

2 Sophisticated choices, personalized results Lifestyle s take the emotion out of investing because experienced investment professionals manage your asset allocation, the selection of investments and the selection of individual managers. Additionally, the s are monitored and rebalanced on an ongoing basis to maintain their target allocations.

3 1 How would you describe your past investing experiences? If you answered frustrating, disappointing or confusing, then you re certainly not alone. Many investors today are dissatisfied with their results because the investment they purchased has not met expectations or because it simply did not help them accomplish their goals. Letting emotions get in the way of your investing discipline Perhaps the most common mistake investors make is to let emotions drive their investment decisions. It s easy to get caught up in the euphoria when everything is going up. But buying at the top of the market when stocks are at their most expensive, or selling after prices have already fallen, creates a frustrating investment experience. Unfortunately, a ride on the emotional rollercoaster of investing often ends with a failure to reach your financial goals. The emotional rollercoaster of investing Positive EUPHORIC I should quit my job and do this full-time! look at the money I m making! MARkET PERFORMAnCE CONFIDENT I ve already made money. this is great. Riskiest time NERVOUS What happened? What is going on? DESPERATE there s no point in selling now; I ve lost too much. Best opportunity to make money HOPEFUL things seem like they re turning around. negative DEFEATED there go my dreams of an early retirement. This chart is an example and does not represent the performance of any actual investment. This is not meant as investment advice. Consult your financial professional about how this example applies to your situation.

4 2 Overcoming the emotion of investing So how do you keep emotions in check and avoid making these common investing mistakes? First, it makes sense to get help from a financial professional someone who can help you develop strategies to meet your specific needs. In addition, research shows that strategies built upon the principles of asset allocation and diversification can help you reduce risk and potentially earn more consistent performance over time. Professional help An important part of long-term investment success is to define and stay focused on your goals. That s why working with a financial professional can make a world of difference. Your financial professional can help you identify your goals and develop strategies for reaching them. In addition, he or she may review your strategies periodically and recommend changes or the appropriate course of action to make it more likely that you will be successful. Asset allocation and diversification When you divide your money among a variety of asset classes stocks, bonds and cash using a strategy called asset allocation, you can smooth the ups and downs of the financial markets. You may also diversify, or divide, your investments within each of the major asset classes to take advantage of different investment styles, like growth and value, for example. The idea is to own a wide enough selection of securities so that you can benefit when one asset class performs well and limit the downside when another asset class does poorly. In fact, experts agree that how you divide your assets has a major influence on your long-term investing success. However, asset allocation and diversification do not ensure a profit or protect against loss.

5 3 A portfolio that is diversified across asset classes and styles may make for a smoother ride on the emotional rollercoaster of investing and help you reach your long-term financial goals. Annual returns of asset classes and a diversified portfolio ( ) WORST BEST 20.79% 11.63% 7.01% 5.94% 2.21% 14.17% 16.09% 22.42% 9.74% 8.44% 3.48% 5.59% 6.68% 10.83% 20.42% 21.44% 10.25% 1.61% 9.87% 14.68% 15.52% 15.94% 27.88% 29.09% 46.31% 44.93% 38.59% 32.29% 30.03% 29.75% 4.10% 1.03% 21.58% 20.25% 16.49% 14.59% 13.93% 6.30% 4.34% 1.38% 13.54% 8.17% 7.74% 7.37% 7.05% 5.26% 3.07% 2.43% 26.34% 22.25% 20.18% 15.74% 12.26% 9.07% 4.67% 4.33% 11.81% 11.17% 9.69% 6.97% 5.37% 4.40% 0.17% 7.27% 5.24% 1.40% 31.15% 31.99% 36.85% 38.44% 41.50% 43.38% Cap 41.66% 37.21% 31.78% Cap 27.68% 27.33% 19.69% 5.93% 0.15% Source: Lipper, Inc. Annual returns are based on calendar years. Indexes are unmanaged and do not take transaction costs or fees into consideration. It is not possible to invest directly in an index. Performance figures assume reinvestment of dividends and capital gains. This chart is for illustrative purposes only and does not represent the performance of any John Hancock fund. Diversification does not guarantee against a loss. Past performance is no guarantee of future results. Share price and yield will vary and you may have a gain or a loss when you sell your shares. Large growth stocks are represented by the Russell 1000 Index, a market capitalization-weighted index of securities in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values. Large value stocks are represented by the Russell 1000 Index, a market capitalization-weighted index of securities in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. growth stocks are represented by the Russell 2500 Index, which measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. value stocks are represented by the Russell 2500 Index, which measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. stocks are measured by the MSCI EAFE Index, a market value-weighted, arithmetic average of the performance of more than 900 securities listed in several developed world markets, excluding the United States. s are measured by the Barclays U.S. Aggregate Index, which includes U.S. government, corporate and mortgage-backed securities with maturities of up to 30 years. represents the performance of the 3-month T-bill, published by the Federal Reserve. is represented by the average return of the six indexes above, excluding cash. It does not represent any specific index. You cannot invest directly in an index. Small company stocks are more volatile than stocks of larger, more established companies. Foreign investments involve greater risks, including political and economic risks and the risk of currency fluctuations, all of which are magnified in emerging markets. s, if held to maturity, provide a fixed rate of return and a fixed principal value. s will fluctuate and, when redeemed, may be worth more or less than their original cost.

6 4 A sophisticated process made easy the John Hancock Lifestyle s With thousands of mutual funds available in the U.S., many investors simply don t know where to begin when it comes to building a diversified portfolio. John Hancock Funds offers a group of portfolios that make it easy for you. Our Lifestyle s take the emotion out of investing because experienced investment professionals manage your asset allocation, the selection of investments and the selection of individual managers. These five s invest in other mutual funds and offer varying levels of risk and return potential. Target Allocations s Conservative Moderate Balanced Aggressive Stocks 20% 40% 60% 80% 100% s 80% 60% 40% 20% 0% With the Lifestyle s, you gain access to a sophisticated asset allocation and diversification process managed by experienced professionals. John Hancock Investment Management Services (JHIMS) selects the underlying funds to be included in the Lifestyle s and then calls on the expertise of seasoned asset allocation professionals from MFC Global Investment Management (U.S.A.) Limited and Deutsche Asset Management to help determine the optimal mix of asset classes and underlying funds to reach the stated goals of each Lifestyle. Experienced professionals make the difference John Hancock has been managing lifestyle assets since We are the third largest provider of lifestyle portfolios in the U.S. As of December 31, 2009, John Hancock Investment Management Services oversees over 100 asset manager relationships, approximately $60 billion in lifestyle assets and $185 billion in total assets The Retail Mutual Funds Lifestyle s were newly organized in October Source: Strategic Insight, John Hancock, as of 12/31/09. John Hancock figures include assets invested in Annuity, U.S. Pension Retail, M Group Assets and Retail Mutual Funds.

7 How the Lifestyle s are built our four-part process Asset class and manager selection 1 John Hancock Investment Management Services Double Optimization Asset class optimization Manager optimization 2 3 MFC Global Investment Management (U.S.A.) Limited Deutsche Asset Management Ongoing review 4 Final

8 6 1 Asset class and manager selection Asset class selection John Hancock Investment Management Services (JHIMS) selects the asset classes and team of managers for the Lifestyle s. We ve moved well beyond the traditional asset classes of U.S. and non-u.s. equity and fixed income into alternative asset classes like natural resource equities, international small-cap stocks, TIPS and real estate securities. Manager selection Once the asset classes are determined, it is important to call upon knowledgeable professionals to manage each asset class. JHIMS employs a proprietary selection process to assemble a roster of carefully chosen asset managers for the underlying funds. Our selection process in action We filter the fund universe in search of styleconsistent funds from well-respected managers to include in our multi-managed s. Universe of s The financial landscape is continually reviewed to identify consistently performing mutual funds with leading asset managers.

9 7 Identify We screen asset manager databases representing more than 16,000 funds. We consider factors such as asset class, track record and adherence to a disciplined investment approach. To further narrow our selection, we focus on established firms with sizable assets under management, experienced and talented managers, advanced technology and broad resources. Evaluate We perform rigorous quantitative analysis on the underlying funds investment styles, characteristics and performance, as well as risk-adjusted returns against their peer groups and market indexes. But numbers don t tell the whole story. We perform extensive qualitative analysis as well, conducting in-depth, face-to-face manager interviews, focusing on key elements such as performance, investment process, depth of resources and organizational stability. Select and Monitor Our team of professionals reviews all the findings and makes recommendations on both the managers and funds to include in our investment platform. We continuously scrutinize each of our managers and underlying funds to help ensure consistent ongoing performance and adherence to their defined style of investing.

10 8 1 Asset class and manager selection (continued) The result Our rigorous selection process has produced an elite list of well-known asset managers utilized in our Lifestyle s. Manager selection of the s is provided by John Hancock Investment Management Services. Underlying investment managers depend on the investment lineup chosen for the s and are subject to change. Templeton is a registered trademark of the Franklin Templeton Group. Deutsche Asset Management is the marketing name in the U.S. for the asset management activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management Inc., Deutsche Asset Management Investment Services, Ltd., Deutsche Bank Securities Trust Company Americas, Scudder Trust Company and RREEF. BlackRock is a service mark of BlackRock, Inc.

11 9 Double Optimization Together, the asset class optimization and manager optimization stages represent John Hancock s proprietary double optimization process. This is how we determine the best asset allocation mix for our Lifestyle s. 2 Asset class optimization Working with JHIMS, MFC Global Investment Management (U.S.A.) Limited (MFC Global (U.S.A.)) helps determine the asset class mix to be implemented. Thousands of simulations help to create well-diversified asset mixes that vary by potential risk and return characteristics. resulting allocations have the potential to deliver robust performance in a wide range of environments. 3 4 Manager optimization Working with JHIMS, Deutsche Asset Management (DeAM) helps determine the appropriate mix of managers to fit each s asset allocation. DeAM analyzes information such as historical returns, risk measures, correlations and probabilities of future performance. The goal is to build Lifestyle s that maximize the possibility of outperforming the asset class allocations while minimizing downside risk. JHIMS reviews the work done by Deutsche Asset Management and works with them to make adjustments as needed. Ongoing review JHIMS continually monitors the economic environment and investment markets to determine if any changes are needed. Detailed performance analysis is conducted each quarter to evaluate each Lifestyle s asset class and manager mixes. Always working for you maintaining the asset allocations The Lifestyle s are monitored daily and incoming cash flows are directed to those underlying funds that most significantly deviate from their target allocations. This process is utilized to help maintain the target allocations. The s may be rebalanced quarterly to bring allocations completely in line with targets. Changes may be made periodically to the percent of assets invested in any specific underlying fund if it would better enable the s to pursue their investment goals.

12 10 Your lifestyle, your goals, your choice Each of the five Lifestyle s offers an efficient mix of risk and return that is designed to meet your particular objectives. To help you visualize the differences among the Lifestyle s, we ve plotted them on the Efficient Frontier a map that indicates the degree of risk and return in an investment portfolio. Aggressive You seek maximum potential for growth over the long run and are comfortable with considerable potential risk in the short run. Seeking growth of your money is your main concern, but you prefer to limit your potential risk. Balanced and security are both important to you, and you want to pursue them in equal measure. Moderate You feel a strong need to protect your assets while achieving a modest level of growth. Conservative Security is your greatest concern. You would not feel comfortable if your portfolio returns fluctuated greatly.

13 11 Select from five John Hancock Lifestyle s that give you access to a broad range of asset classes and over 30 leading managers John Hancock Lifestyle s Aggressive & income income Higher Aggressive 100% stocks Lower Potential return Conservative 20% stocks 80% bonds Moderate 40% stocks 60% bonds Balanced 60% stocks 40% bonds 80% stocks 20% bonds risk This chart is an example and does not represent the performance of any actual investment. This is not meant as investment advice. Consult your financial professional about how this example applies to your situation.

14 12 End your ride on the emotional rollercoaster Begin by working with your financial professional to evaluate your financial situation and goals. Then find out what kind of investor you are by completing our Investor Profile or one provided to you by your financial professional. Your answers to the profile will help you and your financial professional select the appropriate John Hancock Lifestyle for your personal needs and risk tolerance. Asset allocation by a fund of funds does not ensure a profit or protection against a loss. Please note that asset allocation may not be appropriate for all investors, particularly those interested in the underlying funds on their own. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations and changes in political and economic conditions. The securities of small-capitalization companies are subject to higher volatility than larger, more established companies. High-yield bonds are subject to additional risks, such as the increased risk of default. Before making an investment in a Lifestyle, you should consider all the risks associated with it. Please see the prospectus for further information on these and other risk conditions. A Lifestyle s investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information about the s. To obtain a prospectus, call your financial professional, call John Hancock Funds at or visit our Web site at Please read the prospectus carefully before investing or sending money.

15 John Hancock Lifestyle s Ticker Symbols Share Class Conservative Moderate Balanced Aggressive Class A JALRX JALMX JALBX JaLgx jalax Class B JBLCX JBLMX JBLBX Jblgx jblax Class C JCLCX JCLMX JCLBX jclgx jclax Class R1 JPLCX JPLMX JPLBX JPLGX JPLAX Class R3 JRLCX JRLMX JRLBX JRLGX JRLAX Class R4 JSLCX JSLMX JSLBX JSLGX JSLAX Class R5 JTLRX JTLMX JTSBX JTLGX JTLAX Share classes R1, R3, R4 and R5 are available to retirement plans.

16 Why John Hancock Funds? For more than three decades, John Hancock Funds has been helping individual, corporate and institutional clients reach their most important financial goals. With so many fund companies to choose from, why should you invest with us? A name you know and trust When you invest with John Hancock Funds, you are investing with one of the most recognized and respected names in the financial services industry. Our parent company has been helping individuals and institutions increase and protect wealth since Solutions across the investing spectrum We offer equity, income, international, sector and asset-allocation investment solutions managed by leading institutional money managers. We take a disciplined, team approach to portfolio management and research, leveraging the expertise of seasoned investment professionals. Committed to you Our shareholders come first. We work hard to provide you with the products you may need to build a solid financial foundation. We believe in the value of advice and partner with financial professionals in a commitment to help you reach your long-term investing goals. John Hancock Funds won many awards in 2009, including Best Overall Communications from the Mutual Fund Education Alliance for the fourth year in a row. John Hancock Signature Services, Inc., the transfer and shareholder services agent for John Hancock Funds, attained the 2009 Dalbar Mutual Fund Service Award for excellence in customer service and was awarded 5-Star performer status for all of 2009 from National Quality Review. In 2009, the John Hancock Funds public Web site won Outstanding Website and the financial professional Web site won Best Mutual Fund Website from the Web Marketing Association. John Hancock Funds, LLC Member FINRA SIPC 601 Congress Street n Boston, MA n TDD n Not FDIC insured. May lose value. no bank guarantee. not insured by any government agency. RLAABR 2/10 Visit our Web site at