John Hancock Funds has launched the Technical Opportunities Fund, a diversified stock fund that is structured to allow the subadviser, Wellington Management, to invest up to 100% of the portfolio in cash if necessary. The fund is intended to provide a specialty strategy for retail portfolios.
"One of the questions posed to us by advisers most often since the market turmoil began two years ago has been 'why can't portfolio managers go to cash?' during a period of extreme volatility," said Keith Hartstein, president and CEO of John Hancock Funds. "The response, in most cases, is that mutual fund managers are mandated to remain invested in their particular style, and not to be on the sidelines in cash."