FridayOL

The John Hancock Multimanager Lifestyle Balanced Portfolio faced headwinds in Q1 2025, resulting in a negative total return. However, a key highlight was the portfolio's ability to outperform its benchmark, demonstrating the skill and adaptability of the investment managers. This commentary provides a detailed analysis of the factors impacting performance, the strategies employed, and the outlook for the remainder of the year.

Understanding Q1 2025 Performance

The first quarter of 2025 presented a complex market environment, characterised by [mention specific market conditions, e.g., persistent inflation, rising interest rates, geopolitical uncertainties]. These factors contributed to overall market volatility and negatively impacted many investment portfolios. While the Lifestyle Balanced Portfolio experienced a decline, the team's proactive risk management and strategic asset allocation helped mitigate losses and deliver relative outperformance.

Key Drivers of Outperformance

• Strategic Asset Allocation: The portfolio’s diversified asset allocation, with exposure to both equities and fixed income, played a crucial role in navigating the challenging environment. [Elaborate on specific asset allocation decisions and their impact, e.g., underweighting certain sectors or increasing exposure to defensive assets].
• Manager Selection: The Multimanager approach, leveraging the expertise of multiple skilled investment managers, proved beneficial. [Highlight specific managers or strategies that contributed positively to performance. Provide concrete examples without revealing proprietary information.].
• Active Risk Management: The team implemented proactive risk management strategies to protect capital during periods of market stress. [Describe specific risk management techniques used, e.g., hedging, tactical asset allocation adjustments].

Portfolio Composition and Outlook

As of [Date], the portfolio's key holdings include [mention a few key asset classes or sectors – be general, not specific stock names]. The team continues to monitor market conditions closely and make adjustments as needed to position the portfolio for long-term success. We believe that [mention overall outlook, e.g., while challenges remain, opportunities exist for long-term growth, or a more cautious approach is warranted given the current environment].

Looking Ahead: Key Priorities

• Inflation Management: The team remains focused on protecting the portfolio from the erosive effects of inflation.
• Interest Rate Sensitivity: Careful consideration is being given to the impact of rising interest rates on fixed income investments.
• Geopolitical Risk: The team is actively monitoring geopolitical developments and their potential impact on markets.

We remain committed to delivering long-term value to our investors. For a more detailed analysis of the portfolio's performance and outlook, please read the full commentary [link to full commentary].