PSMIX vs. JAAAX

Last updated Jun 24, 2026

PSMIX (Principal Global Multi-Strategy Fund) and JAAAX (John Hancock Funds Alternative Asset Allocation Fund) are both Multistrategy funds. Over the past 10 years, PSMIX returned 5.28%/yr vs 4.29%/yr for JAAAX. Their correlation of 0.81 suggests significant overlap in exposure. PSMIX charges 1.63%/yr vs 0.72%/yr for JAAAX.

Performance

PSMIX vs. JAAAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Global Multi-Strategy Fund (PSMIX) and John Hancock Funds Alternative Asset Allocation Fund (JAAAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with PSMIX having a 5.41% return and JAAAX slightly higher at 5.65%. Over the past 10 years, PSMIX has outperformed JAAAX with an annualized return of 5.28%, while JAAAX has yielded a comparatively lower 4.29% annualized return.

PSMIX

• 1D: 0.08%
• 1M: 0.66%
• YTD: 5.41%
• 6M: 5.28%
• 1Y: 14.08%
• 3Y*: 9.56%
• 5Y*: 6.12%
• 10Y*: 5.28%

JAAAX

• 1D: 0.06%
• 1M: -0.40%
• YTD: 5.65%
• 6M: 5.36%
• 1Y: 10.38%
• 3Y*: 7.22%
• 5Y*: 4.32%
• 10Y*: 4.29%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PSMIX vs. JAAAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSMIX Principal Global Multi-Strategy Fund	5.41%	10.47%	8.90%	6.59%	-1.80%	5.62%	5.11%	8.18%	-4.34%	6.60%
JAAAX John Hancock Funds Alternative Asset Allocation Fund	5.65%	6.18%	6.59%	5.85%	-3.12%	4.77%	4.36%	8.95%	-4.09%	6.10%

Correlation

The correlation between PSMIX and JAAAX is 0.83, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Nov 1, 2011	0.81

The correlation between PSMIX and JAAAX has been stable across timeframes, ranging from 0.81 to 0.83 - a consistent structural relationship.

Return for Risk

PSMIX vs. JAAAX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PSMIX

PSMIX Risk / Return Rank: 96
PSMIX Sharpe Ratio Rank: 98
PSMIX Sortino Ratio Rank: 97
PSMIX Omega Ratio Rank: 94
PSMIX Calmar Ratio Rank: 96
PSMIX Martin Ratio Rank: 97

JAAAX

JAAAX Risk / Return Rank: 94
JAAAX Sharpe Ratio Rank: 95
JAAAX Sortino Ratio Rank: 94
JAAAX Omega Ratio Rank: 90
JAAAX Calmar Ratio Rank: 94
JAAAX Martin Ratio Rank: 95

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PSMIX vs. JAAAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Global Multi-Strategy Fund (PSMIX) and John Hancock Funds Alternative Asset Allocation Fund (JAAAX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	PSMIX	JAAAX	Difference
Sharpe ratio: Return per unit of total volatility	3.57	3.09	+0.48
Sortino ratio: Return per unit of downside risk	5.29	4.51	+0.78
Omega ratio: Gain probability vs. loss probability	1.71	1.61	+0.10
Calmar ratio: Return relative to maximum drawdown	5.98	5.20	+0.79
Martin ratio: Return relative to average drawdown	24.25	19.80	+4.45

PSMIX vs. JAAAX - Sharpe Ratio Comparison

The current PSMIX Sharpe Ratio is 3.57, which is comparable to the JAAAX Sharpe Ratio of 3.09. The chart below compares the historical Sharpe Ratios of PSMIX and JAAAX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PSMIX vs. JAAAX - Drawdown Comparison

The maximum PSMIX drawdown since its inception was -55.50%, which is greater than JAAAX's maximum drawdown of -15.72%. Use the drawdown chart below to compare losses from any high point for PSMIX and JAAAX.

Drawdown Indicators

	PSMIX	JAAAX	Difference
Max Drawdown Largest peak-to-trough decline	-55.50%	-15.72%	-39.78%
Max Drawdown (1Y) Largest decline over 1 year	-2.41%	-2.02%	-0.39%
Max Drawdown (3Y) Largest decline over 3 years	-5.01%	-5.66%	+0.65%
Max Drawdown (5Y) Largest decline over 5 years	-6.39%	-6.28%	-0.11%
Max Drawdown (10Y) Largest decline over 10 years	-55.50%	-12.64%	-42.86%
Current Drawdown Current decline from peak	-24.76%	-0.68%	-24.08%
Average Drawdown Average peak-to-trough decline	-26.58%	-2.04%	-24.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.59%	0.53%	+0.06%

Volatility

PSMIX vs. JAAAX - Volatility Comparison

Principal Global Multi-Strategy Fund (PSMIX) has a higher volatility of 1.51% compared to John Hancock Funds Alternative Asset Allocation Fund (JAAAX) at 1.11%. This indicates that PSMIX's price experiences larger fluctuations and is considered to be riskier than JAAAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSMIX	JAAAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.51%	1.11%	+0.40%
Volatility (6M) Calculated over the trailing 6-month period	3.17%	2.63%	+0.54%
Volatility (1Y) Calculated over the trailing 1-year period	4.06%	3.40%	+0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.54%	4.22%	+0.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.11%	4.38%	+33.73%

PSMIX vs. JAAAX - Expense Ratio Comparison

PSMIX has a 1.63% expense ratio, which is higher than JAAAX's 0.72% expense ratio.

Dividends

PSMIX vs. JAAAX - Dividend Comparison

PSMIX's dividend yield for the trailing twelve months is around 5.24%, more than JAAAX's 1.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
JAAAX John Hancock Funds Alternative Asset Allocation Fund	1.45%	1.53%	1.17%	1.71%	3.02%	1.72%	0.74%	3.38%	1.99%	1.23%	0.77%	2.78%
PSMIX Principal Global Multi-Strategy Fund	5.24%	5.53%	1.66%	3.51%	12.10%	4.04%	1.68%	0.00%	6.52%	2.91%	0.15%	3.02%

Frequently Asked Questions

Can I hold both PSMIX and JAAAX in my portfolio?

PSMIX and JAAAX have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSMIX or JAAAX?

PSMIX has higher volatility (1.51%) compared to JAAAX (1.11%). In terms of maximum drawdown, PSMIX dropped -55.50% vs JAAAX's -15.72%.

Which has better risk-adjusted returns?

PSMIX currently has the higher Sharpe Ratio (3.57 vs 3.09), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.