FridayOL

Navigating Market Volatility: John Hancock Multimanager Lifestyle Balanced Portfolio Q1 2025 Commentary

The first quarter of 2025 presented a challenging environment for investors, and the John Hancock Multimanager Lifestyle Balanced Portfolio was no exception. While the fund experienced a negative total return, a key highlight was its ability to outperform the benchmark index. This commentary provides a detailed look at the factors influencing performance, the fund's strategic positioning, and the outlook for the remainder of the year. We'll delve into the decisions made by our skilled team of managers and how they are positioned to capitalize on future opportunities.

Key Observations from Q1 2025

• Market Headwinds: Global economic uncertainty, rising interest rates, and persistent inflation created a backdrop of volatility and dampened investor sentiment.
• Relative Outperformance: Despite the negative return, the portfolio’s performance relative to its benchmark demonstrates the effectiveness of our active management approach. This is a testament to the team’s ability to navigate challenging conditions and identify opportunities.
• Managerial Contributions: Individual managers within the portfolio demonstrated varying degrees of contribution, reflecting the diverse strategies employed across the fund. We’ll analyze which strategies thrived and where adjustments were made.

Portfolio Positioning and Strategy

Our investment philosophy centres around a diversified, multi-manager approach, allowing us to tap into a wide range of expertise and investment styles. During Q1, we maintained a cautious stance, emphasizing defensive sectors and quality holdings. Key strategic decisions included:

• Defensive Sector Allocation: Increased exposure to healthcare and consumer staples, sectors considered more resilient during economic downturns.
• Quality Focus: Prioritised investments in companies with strong balance sheets, consistent earnings, and proven track records.
• Active Risk Management: Utilized hedging strategies to mitigate downside risk and protect capital.

Looking Ahead: Outlook for the Rest of 2025

While the immediate outlook remains uncertain, we believe that opportunities for long-term growth still exist. We anticipate continued volatility in the short term, but are focused on identifying undervalued assets and positioning the portfolio for future success. Key areas of focus include:

• Inflation Monitoring: Closely monitoring inflation data and adjusting portfolio allocations accordingly.
• Interest Rate Expectations: Assessing the impact of potential interest rate changes on various asset classes.
• Geopolitical Risks: Evaluating geopolitical risks and their potential impact on global markets.

Conclusion

The John Hancock Multimanager Lifestyle Balanced Portfolio's performance in Q1 2025 underscores the value of a disciplined, multi-manager approach, particularly during periods of market uncertainty. While the fund faced headwinds, its ability to outperform the benchmark is a positive indicator. We remain committed to delivering long-term value to our investors and will continue to adapt our strategies to navigate the evolving market landscape. Click here to read the full commentary for a more in-depth analysis.