Download 1Q16 Market Intelligence Book

Q3 2016 Outlook
U.S. EQUITY
As of June 30, 2016
Market Intelligence
THE LATEST THINKING FROM OUR ASSET MANAGEMENT NETWORK
What you’ll find
About John Hancock Investments
A trusted brand
2
A better way to invest
3
Results for investors
4
The insight and resources of a diverse network
5
What we’re hearing from our network
6
U.S. equity: subdued expectations
7
The U.S. expansion continues to mature
8
Policy uncertainty may rise with change in Washington
but shouldn’t derail markets
9
Declining energy sector profits have taken their toll
10
Select sectors offer growth at a reasonable price
11
Equities will require a catalyst to move beyond their
recent trading range
12
John Hancock Investments | Market Intelligence
Portfolio considerations
13
Beyond consensus: a closer look at opposing views
in our network
14
Family of funds
15
1
A trusted brand
John Hancock Investments is a premier asset manager representing one of America’s most trusted brands, with a heritage of
financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do.
It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
150 years of promises kept
Diverse capabilities to help serve our clients
More than $133 billion in assets under management
across asset classes2
From our earliest days
as a four-person operation
 41% U.S. equity
 25% Fixed income
 16% International equity
 13% Alternative and specialty
 5% Other 3
on Boston’s State Street,
John Hancock has grown
to include a diversified
global investment firm.
The New York Times named
John Hancock one of the
most powerful brands
of the 20th century.1
Mutual
funds
ETFs
Closed-end
funds
College
savings
Managed
accounts
Retirement
portfolios
UCITS
funds4
ESG
funds
Data is as of 6/30/16.
1 The New York Times, 1999. 2 $82 billion in retail mutual fund assets and $51 billion in retirement assets, excluding non-John Hancock 529 plan assets and including seed capital. 3 Includes money markets, hybrid funds, and ETFs held by
fund-of-fund portfolios that are overseen by John Hancock Investments. 4 Not all funds are available to all investors. Funds domiciled outside the United States are not available to U.S. persons.
John Hancock Investments | Market Intelligence
About John Hancock Investments 2
A better way to invest
We build funds based on investor needs, then search the world to find proven portfolio teams with specialized expertise in those
strategies. As a manager of managers, we apply vigorous oversight to ensure that they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
74 proven portfolio teams
Closed-end funds
1988
117 investment strategies
Managed accounts
Manager-of-managers
model introduced
1969
28 elite asset managers
1990
UCITS funds and ETFs
Target-risk portfolios
1992
1994
1996
1998
Target-date
portfolios
College savings
2000
2002
2004
2006
Alternative Asset
Allocation Fund
2008
2010
ESG
funds
2012
2014
2016
Epoch Investment Partners, Inc.
Our team of 175+ professionals who
specialize in manager research and oversight
vets more than 300 new strategies and
holds over 100 in-person oversight meetings
with managers annually.
Representative list of asset managers shows managers of stand-alone funds only. On 4/1/16, Mesirow Financial Investment Management acquired Fiduciary Management Associates, whose relationship with John Hancock Investments dates
to 2009. All data is as of 6/30/16. All logos are the property of their respective owners.
John Hancock Investments | Market Intelligence
About John Hancock Investments 3
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
30
FUNDS
%
64
UTPERFORMED
O
30 funds rated 4 or 5 stars by Morningstar
64% of funds outperformed their Morningstar
at the highest rated share class1
category averages over the past 10 years2
Our performance is the result of our manager-of-managers model and our focus on finding and overseeing the best portfolio teams.
1 As of 6/30/16. Includes mutual fund rankings/ratings only. Out of 67 funds rated by Morningstar, 8 funds received a 5-star overall rating and 22 funds received a 4-star overall rating. Ratings are counted at the highest-rated share class. For
each fund with at least a 3-year history, Morningstar calculates a Morningstar rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a fund’s monthly performance (including effects of sales charges, loads, and
redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10.0% of funds in each category, the next 22.5%, 35.0%, 22.5%, and bottom 10.0% receive 5, 4, 3, 2, or 1 star(s), respectively.
(Each share class is counted as a fraction of one fund within this scale and is rated separately, which may cause slight variations in the distribution percentages.) The overall Morningstar rating for a fund is derived from a weighted average of
the performance associated with its 3-, 5-, and 10-year (if applicable) Morningstar rating metrics. 2 Morningstar, as of 6/30/16. All investments involve risks, including the possible loss of principal. There is no guarantee that a fund’s investment
strategy will be successful. Please see the funds’ prospectuses for additional risks. Past performance does not guarantee future results.
John Hancock Investments | Market Intelligence
About John Hancock Investments 4
The insight and resources of a diverse network
As a manager of managers, we are uniquely positioned to harness the outlook from our vast network of asset managers and
investment partners. A dedicated investment research team distills those views and presents them on a quarterly basis.
60+
75
+
A dedicated 60+ person investment research team collects,
sorts, and evaluates research from our network (part of 175+
professionals specializing in manager research and oversight).
More than 75 asset managers, independent research
firms, broker-dealers, and banks make up our network.
Research is vetted, aggregated, and weighted to remove
asset management biases and inform our view on the markets.
The result is Market Intelligence, the latest thinking and
timely investment ideas from our asset management network.
John Hancock Investments | Market Intelligence
Aberdeen, Allianz, American Century,
Ameriprise, Barclays, Barrow Hanley,
BCA Research, BlackRock, BofA Merrill Lynch,
Boston Partners, Brandywine Global, Capital
Economics, Capital Group, Citi, Credit Suisse,
Davis, Deutsche Asset & Wealth Management,
Dodge & Cox, DoubleLine, Eaton Vance, Edward
Jones, Epoch, Evercore ISI, Federated, Fidelity,
First Quadrant, Gavekal, GMO, Goldman Sachs,
GW&K, Invesco, Ivy, Janney, Janus, Jennison,
John Hancock Asset Management, J.P. Morgan,
Lazard, Legg Mason, Leuthold, Loomis Sayles,
Lord Abbett, LPL, Macquarie, Macro Research
Board, Matthews Asia, Mercer, Mesirow,
MFS, Morgan Stanley, MetWest, Ned Davis
Research, NEPC, Neuberger Berman, Nuveen,
Oppenheimer Funds, Parnassus, PIMCO, Pzena,
Raymond James, Research Affiliates, Roubini
Global Economics, Royce, Russell, Sustainable
Growth Advisers, SSGA, Standard Life, Stone
Harbor, T. Rowe Price, Templeton, Trillium Asset
Management, UBS, Vanguard, Wellington, Wells
Capital, Wells Fargo, Western Asset Management
About John Hancock Investments 5
What we’re hearing from our network
Key macro themes
Oil: low for longer
Oil prices will likely remain near current levels in the coming months, supported by cuts and disruptions
in production but capped by excess supply and stable global demand.
See pages 8, 10, 13–14
U.S. dollar: staying strong
With the United Kingdom’s vote to leave the European Union, the list of factors keeping the dollar strong
against other currencies only gets longer and represents a continued headwind for U.S. manufacturing
and profits.
See pages 8, 10, 13–14
Monetary policy: still steering
Central bankers remain positioned to support asset prices, with substantive policy moves expected
in the wake of Brexit. Expect higher market volatility but lower overall returns as policymakers
struggle to affect change.
See pages 13–14
John Hancock Investments | Market Intelligence
About John Hancock Investments 6
U.S. equity: subdued expectations
While the economic expansion continues to mature, valuations and macro factors point to select opportunities amid rising volatility.
Key macro themes
Range of views from our network
Darker shading indicates a greater concentration of views within our network.
Oil: low for longer
Cheap gas may be helping to extend today’s consumer-driven
expansion, but energy sector losses continue to take a toll on
overall corporate profits.
U.S. dollar: staying strong
The strong currency has crimped profits for U.S. multinationals
in recent months, but year-over-year comparisons should soon
translate into favorable earnings reports for many companies.
BEARISH
NEUTRAL
BULLISH
U.S. equity
U.S. large cap
U.S. small cap
Monetary policy: still steering
While higher rates remain a potential headwind for U.S.
equities, Brexit may have helped push out the timeline for
rate hikes even further.
What’s inside
U.S. growth
U.S. value
Our 12–18 month view: NEUTRAL
ƒƒ
The U.S. expansion continues to mature
ƒƒ
Policy uncertainty may rise with change in Washington but shouldn’t
derail markets
ƒƒ
Declining energy sector profits have taken their toll
ƒƒ
Select sectors offer growth at a reasonable price
The U.S. economy continues to make slow but steady gains; however,
equity valuations remain elevated and profits remain elusive, leaving little
room for meaningful appreciation potential.
ƒƒ
Equities will require a catalyst to move beyond their recent trading range
The value of a company’s securities is subject to change with the company’s financial condition and overall market and economic conditions. See pages 8–12 for complete information. Past performance does not guarantee future results.
John Hancock Investments | Market Intelligence
U.S. equity: subdued expectations 7
U.S. equity
The U.S. expansion continues to mature
BEARISH
NEUTRAL
BULLISH
= OUR 12–18 MONTH VIEW
Darker shading indicates a greater concentration of views within our network.
the LEI suggests the economy will continue growing at a moderate pace in the near term, volatility
“ While
in financial markets and a moderating outlook in labor markets could pose downside risks to growth.
”
Year-over-year (YoY) change in the Composite Index of Leading Indicators
12%
Recessions
10
YoY change—Composite Index of Leading Indicators
8
6
4
2
0
–2
Composite Index of Leading Indicators
(ranked by weighting in the index)
–4
–6
Weekly manufacturing hours worked
–8
–
ISM Index of New Orders
Ample credit and a strong housing
market have helped blunt the
negative effect that a strong dollar
is having on manufacturing.
Consumer expectations
–10
Yield spread
–12
New orders of consumer goods and materials
–14
Leading Credit Index
–16
New orders of nondefense capital goods
–18
Stock prices
Weekly unemployment claims
–20
Building permits
–22
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Source: The Conference Board, as of 5/31/16. The Composite Index of Leading Indicators is an index published monthly by The Conference Board, used to predict the direction of the economy’s movements in the months to come. The index
is made up of 10 economic components whose changes tend to precede changes in the overall economy. It is not possible to invest directly in an index. Past performance does not guarantee future results.
John Hancock Investments | Market Intelligence
U.S. equity: subdued expectations 8
Stimulus
debate
Euro-zone
crisis
Lehman failure,
TARP
Debt ceiling
dispute
Fiscal
cliff
Policy uncertainty may rise with change in
Washington, but shouldn’t derail markets
Government
shutdown
Fiscal
U.S. equity
cliff
Government
shutdown
BEARISH
China
slowdown
NEUTRAL
BULLISH
= OUR 12–18 MONTH VIEW
Darker shading indicates a greater concentration of views within our network.
$100,000
$267,763
shows economic fundamentals will drive prices. The backdrop should remain
“ History
supportive of stocks barring a U-turn in economic policy and business confidence.
”
Stocks have advanced through periods of uncertainty and volatility
300
Debt ceiling dispute
U.S. Economic Policy Uncertainty Index (left axis)
CBOE Volatility Index (VIX) (right axis)
Growth of $100,000 in S&P 500 Index
Double-dip
growth scare
200
President Obama
reelected
60
$264,735
Fiscal cliff
50
The VIX jumped
to 26 following
the June Brexit
vote, but volatility
quickly subsided
by month end.
QE3 announced
QE2 announced
$100,000
150
Brexit
Global
growth
fears
40
30
100
20
50
10
0
2009
2010
2011
2012
2013
2014
2015
CBOE VIX
U.S. Economic Policy Uncertainty Index
250
China currency
devaluation
Government
shutdown
0
2016
Source: U.S. Economic Policy Uncertainty Index, Federal Reserve Economic Data (FRED), Federal Reserve Bank of St. Louis, as of 6/30/16. The U.S. Economic Policy Uncertainty Index quantifies newspaper coverage of policy-related economic
uncertainty based on an index of search results from 10 large U.S. newspapers. The Chicago Board of Options Exchange (CBOE) Volatility Index (VIX) shows the market’s expectation of 30-day volatility and is constructed using the implied
volatilities of a wide range of S&P 500 Index options. The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States. It is not possible to invest directly in an index. Past performance does not
guarantee future results.
John Hancock Investments | Market Intelligence
U.S. equity: subdued expectations 9
U.S. equity
Declining energy sector profits have taken their toll
BEARISH
NEUTRAL
BULLISH
= OUR 12–18 MONTH VIEW
Darker shading indicates a greater concentration of views within our network.
earnings headwinds of a stronger USD and lower oil prices, it will become
“ With persistent
increasingly important to find companies that efficiently utilize their capital.
”
S&P 500 Index net income by sector (2010–2016)
$1,000
900
Materials
Telecommunication services
Utilities
Financials
Information technology
Industrials
Healthcare
Consumer staples
Consumer discretionary
Energy
800
700
Billions
600
500
400
300
A stronger U.S. dollar and lower
oil prices have put corporate
profits under pressure.
200
100
0
–100
2010
2011
2012
2013
2014
2015
2016
Source: FactSet, as of 5/31/16. The S&P 500 Index profits are represented by net income, which is calculated by adjusting revenues for business expenses, depreciation, interest, taxes, and other expenses. The S&P 500 Index tracks the performance
of 500 of the largest publicly traded companies in the United States. It is not possible to invest directly in an index. Past performance does not guarantee future results.
John Hancock Investments | Market Intelligence
U.S. equity: subdued expectations 10
U.S. equity
Select sectors offer growth at a reasonable price
BEARISH
NEUTRAL
BULLISH
= OUR 12–18 MONTH VIEW
Darker shading indicates a greater concentration of views within our network.
price is a great fit for today’s macro environment and
“ Growth at a reasonable
fundamentals, where growth is scarce and valuations are rich.
”
Our network favors sectors with a combination of compelling growth and reasonable valuations (lower PEG ratios)
PEG ratios of S&P 500 Index sectors (size of the bubbles represents PEG ratio values)
18%
PEG =
Long-term earnings growth forecast
16
P/E
G
Network views
Overweight
Neutral/underweight
1.01
14
Technology
12
1.28
Healthcare
Financials
10
Consumer staples
1.46
1.77
8
Consumer discretionary
S&P 500
Index
1.72
Materials
1.78
2.49
1.61
Industrials
6
3.68
4
3.70
2
0
Utilities
Telecommunications
12
14
16
18
20
22
Forward P/E ratio (x)
Source: FactSet, as of 6/30/16. Price/earnings-to-growth (PEG) ratio is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share, and the company’s expected growth. Forward
price-to-earnings (P/E) ratio is a stock valuation measure comparing the current share price of a stock to the underlying company’s estimated earnings per share over the next 12 months. The energy PEG ratio (–169.20) is not charted. The
long-term earnings growth forecast is an estimate of a company’s expected long-term growth in earnings, derived from all polled analysts’ estimates. The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies
in the United States. It is not possible to invest directly in an index. Past performance does not guarantee future results.
John Hancock Investments | Market Intelligence
U.S. equity: subdued expectations 11
Equities will require a catalyst to move beyond
their recent trading range
U.S. equity
BEARISH
NEUTRAL
BULLISH
= OUR 12–18 MONTH VIEW
Darker shading indicates a greater concentration of views within our network.
“ The real total return of U.S. stocks over the next few years will probably be in the low single-digit range.”
With earnings growth stalled, equities have traded in a valuation range since 2014 that is vulnerable to swings in investor sentiment
P/E ratio and annual returns of the S&P 500 Index
20x
19.08
P/E ratio
19.60
18.83
19
18
17
16.53
16.67
16.41
16.78
Composition of annual returns
16
Dividend yield
14%
7
P/E multiple expansion
EPS growth
Forecast
Our network is forecasting m
inimal
P/E multiple expansion this year.
13.69%
1.95
5.23
6.42
0
2014
1.38%
2.15
2.13
–2.89
2015
?%
2.20
0.8
2016
Source: Bloomberg, FactSet, as of 6/30/16. Price-to-earnings (P/E) ratio is a valuation metric measuring a company’s share price relative to its annual earnings (this illustration uses 12-month forecasted earnings). The S&P 500 Index tracks
the performance of 500 of the largest publicly traded companies in the United States. It is not possible to invest directly in an index. Past performance does not guarantee future results.
John Hancock Investments | Market Intelligence
U.S. equity: subdued expectations 12
Portfolio considerations
Volatility is likely to persist
30
U.S. dollar (right axis)
VIX (left axis)
25
20
15
10
12/15
1/16
2/16
3/16
4/16
5/16
100
98
ƒƒ Markets worldwide remain driven by macro factors, which are inherently less
predictable than corporate fundamentals.
ƒƒ Potentially destabilizing events include policy fallout from Brexit, U.S. elections,
and an unexpected change in the price of oil.
96
ƒƒ Investors may wish to consider risk-mitigating strategies such as high-quality
corporate bonds and low beta alternatives to bolster portfolio resilience.
94
ƒƒ Bouts of volatility may also create opportunities in risk assets such as equities
and high-yield bonds.
92
6/16
Inflationary pressures are building
ƒƒ In the United States, core CPI measures are showing a broad-based acceleration
in price levels.
2.5%
ƒƒ Oil prices will likely begin to show up as a positive year-over-year (YoY)
contributor to inflation in the second half of 2016.
Core CPI YoY change
2.0
ƒƒ Inflation above 2% underscores the need for long-term risk assets in a
balanced portfolio.
1.5
ƒƒ Consider allocations to inflation-protecting asset classes to produce longer-term
real returns such as Treasury Inflation-Protected Securities, infrastructure,
and equities.
1.0
0.5
2010
2011
2012
2013
2014
2015
2016
Source: Bloomberg, FactSet, as of 6/30/16. The Chicago Board of Options Exchange (CBOE) Volatility Index (VIX) shows the market’s expectation of 30-day volatility and is constructed using the implied volatilities of a wide range of S&P 500 Index options.
The Consumer Price Index (CPI) is a comprehensive measure used for estimation of price changes in a basket of goods and services representative of consumption expenditure in an economy. The S&P 500 Index tracks the performance of 500 of the
largest publicly traded companies in the United States. It is not possible to invest directly in an index. Past performance does not guarantee future results.
John Hancock Investments | Market Intelligence
13
Beyond consensus: a closer look at opposing views in our network
Incorporating contrarian views into the analysis of each asset class is an important part of our research process. This balance of insight
can lead to more objective and fully formed conclusions by helping avoid confirmation bias and other behavioral pitfalls. Below are the
most debated views during the previous quarter.
Oil:
low for longer
Consensus views
Nonconsensus views
ƒƒ A trading range of $30 to $60 is likely over the next 6 to 12 months
ƒƒ The price of oil may rebound faster than anticipated as a result of
as global supply and demand reach an equilibrium.
ƒƒ Without Iran, the United States, or other producers willing to agree
to terms, OPEC may not be able to implement a production freeze.
global capital expenditure cuts by oil companies.
ƒƒ A continued weakening of China’s economy will lead to softer
demand for oil, pushing prices below the consensus forecast.
ƒƒ The rig count in the United States has likely bottomed, which should
lead to a leveling off of falling production.
U.S. dollar:
staying strong
ƒƒ The dollar will remain elevated given the relative strong U.S.
economy and the dollar’s status as a safe haven.
ƒƒ While Brexit has likely pushed out the timeline for further rate
increases, U.S. monetary policy is still less accommodative than that
of the ECB, BoE, or BoJ.
ƒƒ In the short term, interest-rate differentials between the United
ƒƒ In previous Fed tightening cycles, the U.S. dollar rallied before the
Fed tightened, but then weakened amidst the Fed’s tightening cycle.
ƒƒ The Fed won’t raise rates in 2016 due to foreign geopolitical risks,
alleviating upward pressure on the dollar.
ƒƒ An acceleration of inflationary pressures in the second half of 2016
could weaken the dollar relative to other currencies.
States and Europe may help drive dollar strength.
Monetary policy:
still steering
ƒƒ Quantitative easing (QE) will continue in Europe and Japan, the BoE
will likely restart their QE program based on Brexit, and the Fed will
be on hold for much of 2016.
ƒƒ Global bond yields will remain low as central banks continue to
bid up bond prices to bolster economic activity.
ƒƒ Currency wars will likely continue; recent declines in the euro and
ƒƒ The Fed will shrug off the Brexit event risk and will increase rates in
September or December 2016.
ƒƒ Helicopter money will be employed in Japan and the United Kingdom
as a final form of monetary policy intervention.
ƒƒ There will be a synchronized central bank policy response to Brexit
where all the banks do everything they can to spur growth.
pound have left the yen elevated, to the dismay of the Japanese.
John Hancock Investments | Market Intelligence
14
Family of funds As of June 30, 2016
DOMESTIC EQUITY FUNDS
Balanced
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap1
Equity Income
Fundamental All Cap Core
Fundamental Large Cap Core2
Fundamental Large Cap Value
New Opportunities
Small Cap Value
Small Company3
Strategic Growth
U.S. Equity4
U.S. Global Leaders Growth
Value Equity
Managed by
JHAM
T. Rowe Price
Pzena
Boston Partners
Boston Partners
T. Rowe Price
JHAM
JHAM
JHAM
BW/DFA/GWK/INV
Wellington
Mesirow
JHAM
GMO
SGA
Barrow Hanley
Morningstar category
Allocation—50% to 70% equity
Large growth
Large value
Large value
Mid-cap value
Large value
Large growth
Large blend
Large value
Small blend
Small blend
Small blend
Large growth
Large blend
Large growth
Large value
A
SVBAX
JBGAX
PZFVX
JVLAX
JVMAX
JHEIX
JFCAX
TAGRX
JFVAX
JASOX
JSCAX
JCSAX
JSGAX
JHUAX
USGLX
JVEAX
C
SVBCX
JBGCX
JCVCX
JVLCX
JVMCX
JHERX
JFCCX
JHLVX
JFVCX
JBSOX
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Boston Partners
Emerging Markets
Dimensional
Emerging Markets Equity
JHAM
Global Equity
JHAM
Global Shareholder Yield
Epoch
Greater China Opportunities
JHAM
International Core5
GMO
International Growth
Wellington
International Small Company
Dimensional
International Value Equity
JHAM
Foreign large value
Diversified emerging markets
Diversified emerging markets
World stock
World stock
China region
Foreign large value
Foreign large growth
Foreign small/mid blend
Foreign large value
INCOME FUNDS
Bond
California Tax-Free Income
Core High Yield6
Emerging Markets Debt
Floating Rate Income
Focused High Yield
Global Income
Government Income
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Intermediate-term bond
Muni California long
High yield bond
Emerging markets bond
Bank loan
High yield bond
High yield bond
Intermediate government
High yield muni
Multisector bond
Intermediate-term bond
U.S. money market taxable
JHAM
JHAM
JHAM
JHAM
WAMCO
JHAM
Stone Harbor
JHAM
JHAM
JHAM
JHAM
JHAM
I
SVBIX
R6
JBAWX
JCVIX
JVLIX
JVMIX
JCVWX
JDVWX
JVMRX
JSGCX
JHUCX
USLCX
JVECX
JFCIX
JLVIX
JFVIX
JHSOX
JSCBX
JCSIX
JSGIX
JHUIX
USLIX
JVEIX
JFAIX
JLCWX
JFLVX
JWSOX
JSCCX
JCSWX
JSGTX
JDIBX
JEVAX
JEMQX
JHGEX
JGYAX
JCOAX
GIDEX
GOIGX
JISAX
JIEAX
JDICX
JEVCX
JEMZX
JGECX
JGYCX
JCOCX
GOCCX
GONCX
JISDX
JIEVX
JDVIX
JEVIX
JEMMX
JGEFX
JGYIX
JCOIX
GOCIX
GOGIX
JSCIX
JIEEX
JDIUX
JEVRX
JEMGX
JGEMX
JGRSX
JHNBX
TACAX
JYIAX
JMKAX
JFIAX
JHHBX
JYGAX
JHGIX
JHTFX
JHFIX
TAUSX
JHMXX
JHCBX
TCCAX
JYICX
JMKCX
JFIGX
JHYCX
JHBIX
JHBSX
JYIIX
JMKIX
JFIIX
JYHIX
JYGIX
JHCHX
JEMIX
JFIRX
JSTIX
TIUSX
JSNWX
JIGEX
TCGIX
JCTFX
JSTCX
TCUSX
JMCXX
UGLSX
JVERX
JICEX
JIGTX
JIVUX
INCOME FUNDS (CONTINUED)
Short Duration Credit ­Opportunities
Spectrum Income
Strategic Income Opportunities
Tax-Free Bond
Managed by
Stone Harbor
T. Rowe Price
JHAM
JHAM
Morningstar category
Long-short credit
Multisector bond
Multisector bond
Muni national long
A
JMBAX
JHSIX
JIPAX
TAMBX
C
I
JMBCX JMBIX
JHSRX
JIPCX
JIPIX
TBMBX
R6
JSDEX
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Enduring Assets7
Financial Industries
Global Absolute Return Strategies
Global Conservative Absolute Return
Global Focused Strategies
Global Real Estate
Natural Resources8
Redwood
Regional Bank
Seaport
Technical Opportunities
First Quadrant
JHAM
Wellington
JHAM
Standard Life
Standard Life
Standard Life
Standard Life
Jennison
Boston Partners
JHAM
Wellington
Wellington
Multicurrency
Multialternative
World stock
Financial
Multialternative
Nontraditional bond
Multialternative
Global real estate
Natural resources
Option writing
Financial
Long/short equity
Large growth
JCUAX
JAAAX
JEEBX
FIDAX
JHAAX
JHRAX
JGFOX
JHGRX
JNRAX
JTRAX
FRBAX
JSFBX
JTCAX
JCUCX
JAACX
JEEFX
FIDCX
JHACX
JHRCX
JGFEX
JHGCX
JCUIX
JAAIX
JEEIX
JCURX
JAARX
JEEDX
JHAIX
JHRIX
JGFGX
JHGSX
JNRIX
JTRIX
JHASX
JHRRX
JGFDX
JHGNX
JSFDX
JTCIX
JSFRX
ASSET ALLOCATION
Income Allocation Fund
Lifestyle Portfolios
Retirement Living Portfolios
Retirement Living II Portfolios
Retirement Choices Portfolios
JHAM
JHAM
JHAM
JHAM
JHAM
Allocation—15% to 30% equity JIAFX
JIAGX
JIAIX
JIASX
JHKCX
JHJCX
JHKIX
JHJIX
JHKRX
JHJRX
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
Trillium
Large blend
ESG Large Cap Core
Trillium
Large blend
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
Index provider
Dimensional
Dimensional
Dimensional
Dimensional
Dimensional
Dimensional
Dimensional
Dimensional
Dimensional
Dimensional
Dimensional
JHKAX
JHJAX
JTRCX
FRBCX
JSFTX
JTCDX
Morningstar category
U.S. ETF consumer cyclical
U.S. ETF consumer defensive
U.S. ETF equity energy
U.S. ETF financial
U.S. ETF health
U.S. ETF industrials
U.S. ETF large blend
U.S. ETF natural resources
U.S. ETF mid-cap blend
U.S. ETF technology
U.S. ETF utilities
JIPRX
JTRRX
Ticker
JHMC
JHMS
JHME
JHMF
JHMH
JHMI
JHML
JHMA
JHMM
JHMT
JHMU
Asset managers
Barrow Hanley Barrow, Hanley, Mewhinney & Strauss
Boston Partners Boston Partners
BW Brandywine Global Investment Management
Dimensional (DFA) Dimensional Fund Advisors
Epoch Epoch Investment Partners
First Quadrant First Quadrant
GMO GMO
GWK Gannett Welsh & Kotler
INV Invesco Advisers
Jennison Jennison Associates
JHAM John Hancock Asset Management
Mesirow Mesirow Financial Investment Management
Pzena Pzena Investment Management
SGA Sustainable Growth Advisers
Standard Life Standard Life Investments
Stone Harbor Stone Harbor Investment Partners
Trillium Trillium Asset Management
T. Rowe Price T. Rowe Price
WAMCO Western Asset Management Company
Wellington Wellington Management
1 As of 1/31/14, the fund is closed to new investors. 2 Prior to 3/1/16, the fund was named John Hancock Large Cap Equity Fund. 3 On 4/1/16, Mesirow Financial Investment Management acquired Fiduciary Management Associates. 4 Effective 9/26/16, Wellington Management
Company LLP will replace GMO as the fund’s manager. 5 As of 7/28/16, the fund is closed to new investors. 6 As of 7/21/16, the fund is closed to new investors. 7 Prior to 8/31/15, the fund was named John Hancock Enduring Equity Fund. 8 As of 8/29/14, the fund is closed to
new investments.
Not all funds are available for sale at all firms. The funds listed above have associated risks. John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP. Dimensional Fund Advisors LP receives compensation
from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investments | Market Intelligence
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A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the
fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus
carefully before investing or sending money.
The opinions expressed are those of the contributors as of 6/30/16 and are subject to change. No forecasts are guaranteed. This commentary is provided for informational purposes only and is not an endorsement of any
security, mutual fund, sector, or index. John Hancock Funds, LLC, John Hancock Advisers, LLC, and their affiliates, employees, and clients may hold or trade the securities mentioned in this commentary. Past performance does
not guarantee future results.
Asset manager views are compiled throughout the preceding calendar quarter through in-person discussions, reviewed research, and on-site visits. These inputs are complemented by third-party research collected during the
calendar quarter. Our views reflect John Hancock Investments’ proprietary weighting of these inputs.
A bearish reading indicates the potential for an asset to underperform its class or subclass on a risk-adjusted basis. A bullish reading indicates the potential for an asset to outperform its class or subclass on a risk-adjusted
basis. A neutral reading indicates the potential for performance in line with the asset’s historical averages.
Stocks and bonds can decline due to adverse issuer, market, regulatory, or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market
volatility and political and social instability; value stocks may decline in price; growth stocks may be more susceptible to earnings disappointments; the securities of small companies are subject to higher
volatility than those of larger, more established companies; and high-yield bonds are subject to additional risks, such as increased risk of default. Fixed-income investments are subject to interest-rate
and credit risk; their value will normally decline as interest rates rise or if an issuer is unable or unwilling to make principal or interest payments. Liquidity—the extent to which a security may be sold or
a derivative position closed without negatively affecting its market value, if at all—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions.
Hedging and other strategic transactions may increase volatility and result in losses if not successful. Currency transactions are affected by fluctuations in exchange rates.
John Hancock Investments | Market Intelligence
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Connect with John Hancock Investments:
@JH_Investments | jhinvestmentsblog.com
John Hancock Funds, LLC Member FINRA, SIPC
601 Congress Street Boston, MA 02210-2805 800-225-5291
jhinvestments.com
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.
MF303283 JHAN-2016-04-04-0273
MIUSEQMOD 7/16