Mr. Patrick Murphy reports
JOHN HANCOCK TO EXPAND PERSONAL ADVICE OFFERING WITH MORNINGSTAR INVESTMENT MANAGEMENT'S ADVISOR MANAGED ACCOUNT SERVICES
Manulife Financial Corp.'s John Hancock Retirement has signed an agreement with Morningstar Investment Management LLC to offer Morningstar's adviser managed account services to registered investment adviser (RIA) firms and their advisers for their retirement plan clients. Piloting in Q1 2020, John Hancock expects to roll out the offering more broadly during 2020.
With the Morningstar adviser managed account services, retirement plan participants receive personalized advice based on model portfolios aligned with the RIA firm's investment expertise and philosophies. This goals-based program considers, among many factors, each participant's age, salary, account balance, contribution rate, gender, risk capacity, as well as tax and plan rules to help them achieve their personal retirement goals. The adviser managed account program can also help RIA firms generate new business opportunities, while enabling advisers to offer scalable, personalized advice.
"This agreement represents another step in the evolution of our advice offering," said Patrick Murphy, chief executive officer, John Hancock Retirement. "We're building on a 15-year relationship with Morningstar, which started with our single proprietary managed account product. Our new offering leverages the adviser community's expertise and ultimately enables us to help a greater number of participants reach their retirement goals."
The adviser managed account services leverage the technology, user interface and asset allocation methodology behind Morningstar's existing managed accounts services. As of June 30, 2019, Morningstar's managed accounts and advice services were used by nearly 250,000 plans, more than 1.5 million participants and has $66.7-billion in assets under advisement and management. At the heart of these services, is Morningstar Investment Management's patented process that determines each participant's investment portfolio assignment based on their risk capacity and other factors.
"We built out our managed accounts offering with the mission to help more workers in America achieve a better retirement outcome," said Brock Johnson, president of retirement and workplace solutions at Morningstar Investment Management. "We are thrilled to be working with John Hancock to help drive this mission as well as to ensure that advisors have a solution they can stand behind and will be able to use with some of the industry's leading recordkeepers."
Mr. Murphy further explained that the adviser managed account services work well with John Hancock's consultative and personalized approach to retirement plans. "We work closely with advisers and plan sponsors to understand individual needs and circumstances. This solution offers us the ability to provide a personally relevant investment experience for participants."
About John Hancock Retirement
As of June 30, 2019, John Hancock serviced over 60,000 plans with over 2.8 million participants and over $170-billion in assets under managed accounts.*
* As of June 30, 2019, John Hancock Life Insurance Company (USA) supported 46,547 plans, 1,605,076 participants, and $88,464,393,180 in AUMA. John Hancock Life Insurance Company of New York supported 2,527 plans, 75,000 participants and $5,165,273,862 in AUMA. John Hancock Retirement Plan Services LLC supported 11,058 plans, 1,207,998 participants and $77,201,601,108 in AUMA. Participant counts reflect all active participants with a balance. Approximate unaudited figures for John Hancock, provided on a U.S. statutory basis.
About Manulife Financial Corp.
Manulife Financial is a leading international financial services group that helps people make their decisions easier and lives better. It provides financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and institutions. Manulife employs more than 34,000 employees serving almost 28 million customers worldwide. As of June 30, 2019, the company had over $1.1-trillion ($877-billion (U.S.)) in assets under management and administration, and in the previous 12 months it made $29.4-billion in payments to its customers.
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