Investment Options

4 investment strategies. 1 customized solution - yours.
Your investment timeframe. Your tolerance for risk. Your contribution amounts. We all have different criteria when it comes to college investing. That’s why John Hancock Freedom 529 gives you the freedom to choose the investment strategy that’s the right fit for you. You can use one or a combination of options depending on your needs. Work with your financial consultant to determine which strategy or combination of strategies will work best for you.

• Option 1: Enrollment-Based Portfolios.
  
  

  Simply calculate the number of years until expected college enrollment, together with your Financial Consultant, choose a portfolio, and we’ll do the rest. The allocation continues to automatically rebalance to match the appropriate risk, becoming more conservative as the time for college enrollment approaches.

  Portfolio 2025-2028	Portfolio 2021-2024
  Portfolio 2017-2020	Portfolio 2013-2016
  Portfolio 2009-2012	College Portfolio

• Option 2: Static Portfolios.
  
  

  Offers an asset allocation that remains constant throughout your entire investment period. Choose from five portfolios, ranging from conservative to aggressive. Please note that not all Static Portfolios are available in all share classes.

  • JH Money Market Portfolio: Designed for conservative investors, those whose Beneficiary is nearing college enrollment, or those who wish to dollar cost average contributions into a different investment option over time, the JH Money Market Portfolio seeks to preserve investment principal with modest current income.
  • Short-Term Bond Portfolio: With a lower-risk investment approach, this portfolio invests in high-income, short-term bonds with the goal of preserving capital. Please note this portfolio is not available in A and C share classes.
  • Fixed Income Portfolio: This portfolio reflects a lower-risk investment approach and seeks safety of principal while generating a reasonable level of return.
  • Equity Portfolio: Based on the understanding that the volatility of equity markets is accompanied by the greatest potential return, this all-equity portfolio invests in a broad range of mutual funds focused on both domestic and international equity markets.
  • Future Trends Portfolio: The most aggressive of the static portfolios, the Future Trends Portfolio invests in sector funds and is intended for investors with a longer investment horizon and higher risk tolerance.
• Option 3: Lifestyle Portfolios.
  
  

  Select from three Lifestyle portfolios based on your risk tolerance, each of which targets an asset allocation that remains constant for the entire term of the investment. These portfolios are similar to the Static portfolios but offer access to a broader number of managers, asset classes and investment styles.

  • Lifestyle Growth 529 Portfolio: Invests exclusively in the John Hancock Funds II Lifestyle Growth Portfolio Class 5. John Hancock Funds II Lifestyle Growth Portfolio Class 5 seeks long-term growth of capital. Current income is also a consideration. To pursue this goal, the fund invests in other underlying mutual funds. Normally the fund invests approximately 80% of its assets in underlying funds which invest primarily in equity securities and approximately 20% in underlying funds which invest primarily in fixed-income securities.
  • Lifestyle Balanced 529 Portfolio: Invests exclusively in the John Hancock Funds II Lifestyle Balanced Portfolio Class 5. John Hancock Funds II Lifestyle Balanced Portfolio Class 5 seeks to provide a balance between a high level of current income and growth of capital with a greater emphasis on growth of capital. To pursue this goal, the fund invests in other underlying mutual funds. Normally the fund invests approximately 60% of its assets in underlying funds which invest primarily in equity securities, and approximately 40% in underlying funds which invest primarily in fixed-income securities.
  • Lifestyle Moderate 529 Portfolio: Invests exclusively in the John Hancock Funds II Lifestyle Moderate Portfolio Class 5. John Hancock Funds II Lifestyle Moderate Portfolio Class 5 seeks to provide a balance between a high level of current income and growth of capital with a greater emphasis on income. To pursue this goal, the fund invests in other underlying mutual funds. Normally the fund invests approximately 40% of its assets in underlying funds which invest primarily in equity securities and approximately 60% in underlying funds which invest primarily in fixed-income securities.
• Option 4: Individual Portfolios.
  
  

  You can choose from eight individual portfolios to create your own portfolio strategy, or to complement your Enrollment-Based, Static, or Lifestyle Portfolio selections.

  • Templeton International Value 529 Portfolio: Invests exclusively in the John Hancock Funds II International Value Fund (subadvised by Templeton) which seeks to achieve long-term capital growth by investing at least 65% of its net assets in equity securities of companies located outside the United States, including in emerging markets.
  • T. Rowe Price New Horizons 529 Portfolio: Invests exclusively in the T. Rowe Price New Horizons Fund which seeks to achieve long-term growth of capital by investing primarily in common stocks of small, rapidly growing companies, preferably early in the corporate life cycle before a company becomes widely recognized. The fund may also invest in companies that offer the possibility of accelerated earnings growth due to rejuvenated management, new products, or structural changes in the economy. While most assets will be invested in U.S. stocks, the New Horizons Fund may also invest in foreign stocks, futures and options in keeping with the fund’s investment objective.
  • T. Rowe Price Blue Chip Growth 529 Portfolio: Invests exclusively in the T. Rowe Price Blue Chip Growth Fund which seeks to provide long-term capital growth. Income is a secondary objective. Its principal investment strategy is to invest at least 80% of net assets in the common stocks of large and medium-sized blue chip growth companies. These are firms that, in T. Rowe Price’s view, are well-established in their industries and have the potential for above-average earnings growth.
  • T. Rowe Price Mid-Cap Value 529 Portfolio: Invests exclusively in the T. Rowe Price Mid-Cap Value Fund which seeks to provide long-term capital appreciation by investing in mid-sized companies that appear to be undervalued. The fund will invest at least 80% of net assets in companies whose market capitalization (number of shares outstanding multiplied by share price) falls within the range of the companies in the S&P MidCap 400 Index or the Russell Mid-Cap Value Index. In taking a value approach to investment selection, the fund seeks to identify companies whose stock prices do not appear to reflect their underlying values.
  • Jennison Capital Appreciation 529 Portfolio: Invests exclusively in the John Hancock Funds II Capital Appreciation Fund (subadvised by Jennison) which seeks long-term growth of capital by, under normal market conditions, investing at least 65% of its total assets in equity and equity-related securities of companies, at the time of investment, that exceed $1 billion in market capitalization and that the subadvisor believes have above-average growth prospects. These companies are generally medium- to large-capitalization companies.
  • T. Rowe Price Small Cap Stock 529 Portfolio: Invests exclusively in the T. Rowe Price Small-Cap Stock Fund which seeks to provide long-term capital growth by investing at least 80% of net assets in stocks and equity-related securities of small companies. A small company is defined as having a market capitalization that falls (i) within the range of companies in the Russell 2000 Index or (ii) below the three-year average maximum market cap of companies in the index as of December 31 for the three preceding years. The Russell 2000 Index is a widely used benchmark for small-cap stock performance. Stock selection may reflect either a growth or value investment approach.
  • American Mutual 529 Portfolio: Invests exclusively in the American Mutual Fund F which seeks to provide current income, capital growth and conservation of principal. The fund invests primarily in common stocks of larger, more established companies that have long records of increasing earnings and dividends, but may also invest in securities convertible into common stocks, non-convertible preferred stocks, U.S. government securities, or bonds rated A or better. The fund does not own securities of companies that derive the majority of their revenues from tobacco and/or alcohol.
  • T. Rowe Price Equity Income 529 Portfolio: Invests exclusively in the T. Rowe Price Equity Income Fund which seeks to provide substantial dividend income as well as long-term capital appreciation through investments in common stocks of established companies. The fund’s strategy is to invest at least 80% of net assets in common stocks, with 65% in the common stocks of well-established companies paying above-average dividends, with favorable prospects for both increasing dividends and capital appreciation.

A smart strategy for managing market risk.
You can also take advantage of an investment strategy designed to help you smooth out market fluctuations - Dollar Cost Averaging (DCA)*. With DCA, you invest fixed amounts at regular intervals, allowing you to purchase more units when prices are low and fewer when prices are high.