A MANULIFE INVESTMENT MANAGEMENT COMPANY, John Hancock Investment Management, serves investors through a unique multimaager approach, complementing our extensive internal capabilities with an unmatched network of investment of specialized assets of the most rigorous. The result is a diverse line of investments proven in the time of a first level asset manager with a financial administration heritage. Note: John Hancock Investment Management does not administer or monitor this account, and any message sent through the search for Alfa will not receive an answer. For consultations or communication, use the official John Hancock Investment Management channels.
The first quarter of 2025 began with cautious optimism across global markets. U.S. equities continued their upward trajectory, supported by resilient consumer spending, moderating inflation, and expectations of potential rate cuts by the Federal Reserve in the second half of the year. While international markets also delivered positive returns, they trailed the U.S. slightly, reflecting varied economic growth rates and geopolitical uncertainties.
Fixed income markets experienced modest gains as bond yields stabilized. The 10-year U.S. Treasury yield ended the quarter near 4.1%, down from recent highs, while credit spreads remained tight, signaling investor confidence in the economic outlook.
Fund Performance
The John Hancock 2055 Lifetime Blend Portfolio Fund delivered solid performance during the quarter, in line with its long-term strategic allocation targeting growth through a diversified mix of global equities and fixed income. The fund benefited from strong equity returns, particularly in U.S. large-cap growth stocks and select emerging markets.
Within fixed income, the fund’s exposure to investment-grade corporate bonds added incremental value, while duration positioning helped mitigate interest rate volatility. Active management decisions, particularly in overweighting technology and healthcare sectors, contributed positively to relative performance.
Portfolio Positioning
As a target-date fund designed for investors planning to retire around the year 2055, the portfolio maintains a growth-oriented allocation with a significant tilt toward equities. As of March 31, 2025, the portfolio was approximately 90% allocated to equities and 10% to fixed income and other diversifying assets.
Key tactical shifts this quarter included:
-
Slightly increasing exposure to international developed equities to take advantage of valuation discounts.
-
Reducing exposure to small-cap U.S. equities in favor of large-cap holdings to enhance portfolio stability.
-
Maintaining a neutral stance on duration within fixed income, with continued preference for higher-quality credit.
Outlook
Looking ahead, we remain constructive on the long-term growth potential of equity markets, particularly given the continued innovation in AI, clean energy, and biotechnology. However, near-term risks remain, including the path of central bank policy, geopolitical tensions, and potential volatility around the 2024 U.S. election aftermath.
The fund will continue to follow its glide path, gradually shifting to a more conservative allocation as the 2055 target date approaches, while seeking opportunities to enhance returns through active asset allocation and security selection.
About The Author
