Bronze-rated John Hancock Alternative Asset Allocation could be a good choice for investors who want alternative exposure but aren't comfortable picking strategies on their own.
Jason Kephart: This week's Morningstar Medalist is John Hancock Alternative Asset Allocation (JAAAX). This multialternative fund is a good choice for investors who want some alternative exposure but maybe aren't comfortable picking their strategies on their own. This fund also comes at a pretty compelling price, much lower than the category average of 2%.
You need to look at the prospectus net expense ratio because this is a fund of funds. So, the underlying fund fees don't funnel through to the annual net expense ratio. So, you do have to do a little bit more digging.
Managers Bob Boyda and Steve Medina have done a good job of picking third-party managers to run strategies like long/short equity, global macro, merger arbitrage, multicurrency, and putting them together in a portfolio in a thoughtful way that serves investors well over the long haul.
For investors who are looking for a one-stop shop for their alternative exposure, this is definitely one of the best choices out there.
