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IT HAS BEEN a long time since anyone offered a 401(k) fund
menu from just one fund family. The benefits of manager
diversification and the wide range of available styles
and asset classes for managing money has driven the best
investment providers to include managers from multiple
fund families in their lineup. Why should it be any
different when it comes to a plan’s asset allocation
funds?
Consider
multi-manager asset allocation funds, which bring
together top funds from each asset class, tapping the
expertise of multiple best-of-breed managers. This gives
you two important advantages over single family
funds-of-funds:
▪
You
can provide a higher level of diversification, reducing
investment risk and potentially improving investment
returns. Proprietary funds-of-funds may not offer
portfolios in every asset class, or top funds across all
classes.
▪
You
can avoid the style bias that causes a proprietary
portfolio to perform similarly in various market
environments. This can be especially risky when such a
fund family’s style is out of favor.
While
no strategy assures a profit or against loss,
diversification has been established as one of the keys
to investment success over the long term. Taking this
premise to the next level with multi-manager asset
allocation funds can help investors take advantage of
the best of the best, across the full range of asset
classes. Bull’s eye!
For
more information, please contact Brian Dillon,
Investment-Only Specialist at 800 846-0457.
©2007 John Hancock Life Insurance Company (U.S.A.), a
Manulife Financial company. All rights reserved.
I
12988 (05/07 – 12988)
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