is giving Fidelity
a run for their money in the retirement income market. On October 12, Hancock filed with the SEC
to launch two new mutual fund-based retirement income portfolios, the John Hancock Retirement Income Portfolio
and the John Hancock Retirement Rising Income Portfolio
Both portfolios are funds-of-funds which incorporate proprietary and non-proprietary funds into the mix.
The Retirement Income Portfolio will provide investors with a quarterly distribution of a percentage of net asset value.
The Retirement Rising Income Portfolio will also distribute a percentage of net asset value quarterly. However, with this fund, the distribution rate will be increased annually by the rate of inflation as measured by the average annual change in the Consumer Price Index over the prior three-year period ended on December 31 of each year.
Class A, B, and C shares will be offered for the Retirement Income Portfolio, with expense ratios of 135 bps, 205 bps, and 205 bps, respectively.
The Retirement Rising Income Portfolio will be offered in classes R, R1, R2, R3, R4, R5, with expense ratios of 190 bps, 165 bps, 140 bps, 155 bps, 125 bps, and 95 bps, respectively.
Vanguard announced on September 27 that it had filed with the SEC to launch retirement income funds. A week later, Fidelity announced that its fund have been approved by the SEC and are already available in the market.
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