'Lifestyle portfolios' pay off in 401(k)s

A new study shows that 84.2% of 401(k) participants in John Hancock’s funds would have had better results over the last 10 years if they had invested solely in pre-selected portfolios geared to their risk tolerance. The analysis from Boston-based John Hancock Financial Services Inc. shows that participants who invested in a single John Hancock lifestyle fund -- whether that fund had a conservative, moderate, balanced, growth or aggressive strategy -- had ending balances 11% higher than self-directed investors who chose similar portfolios on their own over a 10-year period. “They’re sticking with their investments and producing returns similar to what the fund is producing and the do-it-yourselfers are underperforming,” said Robert Boyda, senior vice president of investment services for John Hancock. In every category, participants in lifestyle funds had better results compared to participants outside of lifestyle funds who made similar investment choices. “That’s really the breakthrough,” Mr. Boyda said. “Even if you’re a very conservative investor, you did better in lifestyle… then someone who tried to do it on their own.”