FridayOL

Boston, MA – Despite facing headwinds in the second quarter of 2025, John Hancock's Lifestyle Aggressive Portfolio delivered gains, though slightly underperforming its benchmark. This detailed commentary explores the portfolio's performance, highlighting the strategic decisions made by the multimanager team and their impact on long-term investment goals. Understand how a dynamic asset allocation strategy is being employed to manage risk and capitalize on opportunities in a shifting market landscape.

Navigating a Complex Market

The second quarter of 2025 presented a challenging environment for investors. Inflation concerns persisted, interest rates remained elevated, and geopolitical uncertainties continued to weigh on market sentiment. The Lifestyle Aggressive Portfolio, designed for investors with a higher risk tolerance and a long-term investment horizon, faced these challenges head-on.

Performance Overview

While the portfolio achieved positive returns in Q2 2025, it experienced a slight underperformance compared to its benchmark index. This difference reflects the portfolio's active management approach and its focus on downside protection, even in favorable market conditions. The multimanager team actively adjusted asset allocations throughout the quarter, shifting towards more defensive positions in certain sectors.

Strategic Asset Allocation

A cornerstone of the Lifestyle Aggressive Portfolio's strategy is its dynamic asset allocation. The portfolio managers leverage the expertise of a diverse group of investment managers, each specializing in different asset classes and investment styles. This collaborative approach allows for a more nuanced and adaptable investment strategy.

During Q2, the team made several key adjustments:

• Reduced Exposure to Equities: Concerns about potential market corrections led to a slight reduction in equity exposure, particularly in more volatile sectors.
• Increased Allocation to Fixed Income: The team increased allocations to high-quality fixed income securities to provide stability and generate income.
• Strategic Alternative Investments: The portfolio maintains exposure to alternative investments, such as private equity and real estate, which offer diversification benefits and potential for long-term growth.

Long-Term Perspective

The John Hancock Lifestyle Aggressive Portfolio is built on a long-term investment philosophy. Short-term market fluctuations are viewed as opportunities to rebalance and optimize the portfolio for future growth. The multimanager team remains committed to its disciplined investment process and its focus on delivering consistent, risk-adjusted returns over time.

Looking Ahead

As we move forward, the team will continue to monitor market conditions closely and make adjustments as necessary to ensure the portfolio remains aligned with its long-term objectives. The focus remains on identifying attractive investment opportunities, managing risk effectively, and delivering value to our clients.