Download John Hancock International Value ADR Strategy

Factsheet
March 31, 2017
International Value ADR Strategy
Separately Managed Accounts
Investment Philosophy1
The International Value team believes that long-term excess returns can be
achieved through stock selection (rather than sector rotation) by investing in
securities that are trading at a discount to normalized valuations and selling
when securities are fully valued.
Years of
Experience
Investment Team
Wendell L. Perkins, CFA
32
Margaret (Peggy) A. McKay, CFA
25
Edward T. Maraccini, CFA
22
Investment Process2
Fundamental
Research
Idea Generation
 Twenty unique sector value
models
 Stocks are ranked within
sector and within region
 Stocks ranked in top two
deciles are considered for
further research
Risk Management2
Portfolio Construction
 Check for operational viability
 Cash flow
 Leverage
 Earnings revisions
 Fundamental analysis
 Operating trends
 Financial/structural catalyst
 Designed to minimize non-stock
specific risk with risk controls
around sector and region
benchmark weights
 Target position sizes are typically
less than or equal to 2% and are
based on conviction levels on the
following:
 Inexpensive valuations on
earnings, cash flow and/or
book value
 Positive operating cash flow
with a bias toward strong free
cash flow
 Appropriate degree of leverage
 Dividends
 Risk management integrated into
process:
 Stocks selected based on
assessment of management
team strength and quality of
financials
 Risk reduced through stock
and sector diversification
 Stock-specific risk
emphasized at the portfolio
level
 Monitor benchmark-relative risk
factors
 Perform attribution analysis
 Monthly risk meetings
 Monitor portfolio guidelines
Composite Performance*
Returns as of March 31, 2017
15
10
11.9
11.5
5.9
5.1
6.8
8.1
5.4
%
4.0
5
0.4
0.0
4.4
3.0
1.1
0.9
0.9
0
-0.1
-3.0
-5
3 Months
1 Year
3 Years
International Value ADR Wrap Composite — Pure Gross
5 Years
-2.1
7 Years
International Value ADR Wrap Composite — Net
10 Years
MSCI World ex. US (Net) Index
Calendar Year Returns (%)
International Value ADR Wrap Composite — Pure
Gross3
International Value ADR Wrap Composite —
MSCI World ex. US (Net) Index
Net3
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2.99
-3.40
-3.47
16.49
12.17
-12.93
7.32
34.49
-39.91
13.15
-0.10
-6.30
-6.37
13.00
8.81
-15.54
4.10
30.46
-41.71
9.76
2.75
-3.04
-4.32
21.02
16.42
-12.18
8.94
33.66
-43.56
12.44
* Past performance is not indicative of future results. Any composite performance less than a year is considered preliminary and is subject to change upon reconciliation with data from the Sponsor.
Performance shown is the John Hancock Asset Management (US) International Value ADR composite as of March 31, 2017 in USD. Returns greater than one year are annualized.
Composite Inception date, November 2003
For Institutional/Investment
Professional Use
Only.
For Institutional/Investment
Professional
Use Only.
Not for Distribution
to Distribution
the Public. to the Public.
Not for
International Value ADR Strategy
March 31, 2017
Portfolio Characteristics4
Top Ten Holdings (%)4
International
Value ADR MSCI World ex.
Strategy US (Net) Index
Country
Switzerland
2.10
64,839
54,760
Siemens
Germany
2.07
Number of Holdings
65
1,010
Unilever
United Kingdom
2.05
Number of Countries
15
22
SAP
Germany
2.04
1.47
1.67
BASF
Germany
2.02
P/E Ratio (1 yr forward) (x)
12.99
14.90
Nestle
Switzerland
2.01
EPS LT Growth Rate (%)
13.30
11.59
2.82
3.04
Heineken
Netherlands
1.90
United Kingdom
1.87
Singapore
1.87
Price/Book Ratio (x)
Dividend Yield (%)
International
Value ADR MSCI World ex.
Strategy US (Net) Index
Banks
Staples
Health Care
Industrials
Communications
Energy
Technology
Durables
Insurance
Services
Retail
Chemicals
Transportation
Utilities
Financials
Capital Goods
Building
Metals
Metals & Mining
Real Estate
Paper
14.07
9.45
9.23
7.32
6.69
6.30
6.19
5.94
5.45
4.79
4.23
3.68
3.08
2.17
1.88
1.73
1.64
1.32
1.16
0.00
0.00
14.09
9.04
9.77
5.51
4.17
6.63
5.43
5.69
5.62
4.25
4.83
3.84
2.89
3.27
3.59
3.23
1.41
3.28
0.00
3.14
0.24
Manulife Asset Management (US) LLC is a wholly owned subsidiary of Manulife Financial Corporation
(Manulife Financial) and is affiliated with several US based and non-US based investment advisers
which are also subsidiaries or affiliates of Manulife Financial. Manulife AM (US) and certain of our
affiliated registered investment adviser firms may provide investment management or advisory
services, and may market such services, under the brand name “John Hancock Asset Management”
and “Sovereign Asset Management.” We also may further describe each of these brands as “a division
of Manulife Asset Management (US) LLC.” These are brand names only, not entities separate from
Manulife AM (US). Certain of these companies within Manulife Financial may provide services to John
Hancock Asset Management.
The International Value ADR strategy seeks long-term capital appreciation through stock selection by
investing in American Depositary (ADR) securities that are trading at a discount to normalized
valuations and selling when securities are fully valued. The strategy generally focuses on ADR stocks
of companies with attractive valuations, cash flow creation and good balance sheet structure. At end of
day, 2/11/11, the Firm acquired Optique. Performance results of Optique is linked to results achieved
at the Firm beginning 2/12/11.
MSCI World ex. US (Net) TR Index is a free float-adjusted market capitalization weighted index that is
designed to measure the equity market performance of developed markets, where dividends are
reinvested after the removal of withholding taxes. The index excludes the USA. MSCI uses a target of
85% of free float-adjusted market representation within each industry group within each country, as a
guideline in constructing the index. The index includes securities with low price-to-book value ratios
relative to each MSCI country index. It is not possible to invest directly in an index.
This information has been provided by Manulife Asset Management. All material is compiled from
sources believed to be reliable and current, but accuracy can not be guaranteed. This is not to be
construed as an offer to buy or sell any financial instrument.
Although the information herein has been obtained from sources believed to be reliable, we do not
guarantee its accuracy, completeness or fairness. Performance comparisons may not take into
account any transaction costs, commissions or personal taxes.
References to securities, transactions or holdings should not be considered a recommendation to
purchase or sell a particular security and there is no assurance that, as of the date of publication, the
securities remain in the portfolio. Additionally, it is noted that the securities or transactions referenced
do not represent all of the securities purchased, sold or recommended during the period referenced
and there is no guarantee as to the future profitability of the securities identified and discussed herein.
For the information of investors from other jurisdictions: Availability of the services described herein
may be limited by applicable law in certain jurisdictions and none of this document and any related
materials may be distributed or published in any jurisdiction, except under circumstances that will
result in compliance with applicable laws and regulations. Further limitations on the availability of the
Roche Holding
Imperial Brands
DBS
Mitsubishi Electric
Japan
1.87
Total
19.79
Regional Weights (%)4
North
America
Europe
Emerging
Markets
Asia
60
52.6
50
%
Wtd. Avg. Market Cap ($M)
309458
International
Value ADR
Strategy
42.0
40
30
21.3
14.9 16.3
20
10
5.0
15.5
9.0
8.4
11.5
0.0
0.0
0
North
America
United
Kingdom
Europe Ex-Uk
(Developed)
International Value ADR Strategy
Japan
Asia ExJapan
(Developed)
Emerging
Markets
MSCI World ex. US (Net) Index
advisory services described herein may be imposed.
1 The material contains information regarding the investment approach described herein and is not a
complete description of the investment objectives, risks, policies, guidelines or portfolio management
and research that supports this investment approach. Any decision to engage Manulife Asset
Management should be based upon a review of the terms of the prospectus, offering documents or
investment management agreement, as applicable, and the specific investment objectives, policies
and guidelines that apply under the terms of such agreement. There is no guarantee investment
objectives will be met. The investment process may change over time. The characteristics set forth
above are intended as a general illustration of some of the criteria the strategy team considers in
selecting securities for client portfolios. Client portfolios are managed according to mutually agreed
upon investment guidelines.
2 No investment strategy or risk management techniques can guarantee returns or eliminate risk in any
market environment.
3 Pure gross of fees returns provided as supplemental information. Pure gross of fees return is not net
of transaction costs. Net performance results reflect the deduction of, from the respective gross-of-fee
returns, the highest industry-applied bundled fees (3.00% annually). The bundled fee consists of
custody, trading, investment management, administration, reporting and performance measurement
fees. Actual fees may vary depending on, among other things, the applicable fee schedule and
portfolio size. The Firm’s advisory fees are available upon request and information about the Firm’s
wrap advisory fee may be found in Part 2A of the Firm’s Form ADV.
4 Portfolio characteristics — Holdings, sector weightings, market capitalization and portfolio
characteristics are subject to change at any time and are based on a representative portfolio.
Holdings, sector weightings, market capitalization and portfolio characteristics of individual client
portfolios in the program may differ, sometimes significantly, from those shown. This information does
not constitute, and should not be construed as, investment advice or recommendations with respect to
the securities and sectors listed. Such information is supplemental information for the purposes of
GIPS.
Manulife Asset Management (US) claims compliance with the Global Investment Performance
Standards (GIPS®). To receive a complete list and description of Manulife Asset Management (US)
composites and/or a presentation that adheres to the GIPS standards, contact PCG Sales at 1-800247-0278, or visit us at www.manulifeam.com.
For Institutional/Investment Professional Use Only.
Not for Distribution to the Public.