Presentation is loading. Please wait.

Presentation is loading. Please wait.

Name Title John Hancock Investments Date. Three things to know about the stock market 2 It’s one of the best ways to build wealth It’s global Corrections.

Similar presentations


Presentation on theme: "Name Title John Hancock Investments Date. Three things to know about the stock market 2 It’s one of the best ways to build wealth It’s global Corrections."— Presentation transcript:

1 Name Title John Hancock Investments Date

2 Three things to know about the stock market 2 It’s one of the best ways to build wealth It’s global Corrections are normal 1 2 3

3 Stocks (S&P 500 Index)Bonds (Barclays U.S. Aggregate Bond Index)Inflation (Consumer Price Index)Recessions It’s one of the best ways to build wealth 3 Stocks have outpaced bonds and inflation over time, despite a litany of volatility-inducing events Source: John Hancock Investments, 2014. It is not possible to invest directly in an index. Past performance does not guarantee future results. Please see slide 15 for complete definitions. 1 $1,914,866 $7,233,209 $439,358 100,000 1,000,000 $10,000,000 1977 U.S. energy crisis 1979 Iran hostage crisis begins 1980 Iran/Iraq War begins 1985 Savings and loan crisis begins 1990 Iraq invades Kuwait 1998 President Clinton impeached 1991 Persian Gulf War 1997 Asian financial crisis 2000 Y2K computer scare 2001 September 11 terrorist attacks 2008 Lehman Brothers bankruptcy 2009 European sovereign debt crisis begins 1987 Black Monday stock market crash 12/14

4 It’s global About half of the world’s stock market opportunity lies outside the United States. 2014 International markets are home to: 7 of the 10 largest materials companies 6 of the 10 largest energy companies 6 of the 10 largest banks 4 Global stock market capitalization Market capitalization is the total market value, in dollar terms, of the issued shares of a publicly traded company or companies. Global market capitalization shown here reflects country weights in the MSCI All Country World Index, which tracks the performance of publicly traded large- and mid-cap stocks of companies in 23 developed markets and 23 emerging markets. It is not possible to invest directly in an index. 2

5 Corrections are normal The market will often experience setbacks before moving higher 5 S&P 500 Index (1980–2014) Source: Standard & Poor's and John Hancock Investments, as of 12/31/14. It is not possible to invest directly in an index. Past performance does not guarantee future results. Please see slide 15 for complete definitions. 3 –20% –40% –60%

6 Combining multiple equity strategies can make for a smoother ride There is no telling which equity strategy will be best performing from year to year 6 2005200620072008200920102011201220132014 Emerging markets 34.54% Emerging markets 32.55% Emerging markets 39.82% Small-cap value –28.92% Emerging markets 79.02% Small-cap growth 29.09% Large-cap growth 2.64% Emerging markets 18.63% Small-cap growth 43.30% Mid-cap value 14.75% Foreign equities 14.02% Foreign equities 26.86% Large-cap growth 11.81% Large-cap value –36.85% Mid-cap growth 46.29% Mid-cap growth 26.38% Large-cap value 0.39% Mid-cap value 18.51% Mid-cap growth 35.74% Large-cap value 13.45% Mid-cap value 12.65% Small-cap value 23.48% Foreign equities 11.63% Large-cap growth –38.44% Diversified equities 37.60% Mid-cap value 24.75% Mid-cap value –1.38% Small-cap value 18.05% Small-cap value 34.52% Large-cap growth 13.05% Mid-cap growth 12.10% Large-cap value 22.25% Mid-cap growth 11.43% Mid-cap value –38.44% Large-cap growth 37.21% Small-cap value 24.50% Mid-cap growth –1.65% Foreign equities 17.90% Large-cap growth 33.48% Mid-cap growth 11.90% Diversified equities 11.63% Mid-cap value 20.22% Diversified equities 8.28% Small-cap growth –38.54% Small-cap growth 34.47% Diversified equities 20.53% Small-cap growth –2.91% Large-cap value 17.51% Mid-cap value 33.46% Diversified equities 7.07% Large-cap value 7.05% Diversified equities 19.75% Small-cap growth 7.05% Diversified equities –40.17% Mid-cap value 34.21% Emerging markets 19.20% Diversified equities –4.85% Diversified equities 17.10% Large-cap value 32.53% Small-cap growth 5.60% Large-cap growth 5.26% Small-cap growth 13.35% Large-cap value –0.17% Foreign equities –43.06% Foreign equities 32.46% Large-cap growth 16.71% Small-cap value –5.50% Mid-cap growth 15.81% Diversified equities 28.82% Small-cap value 4.22% Small-cap value 4.71% Mid-cap growth 10.66% Mid-cap value –1.42% Mid-cap growth –44.32% Small-cap value 20.58% Large-cap value 15.51% Foreign equities –11.73% Large-cap growth 15.26% Foreign equities 23.29% Emerging markets –1.82% Small-cap growth 4.15% Large-cap growth 9.07% Small-cap value –9.78% Emerging markets –53.18% Large-cap value 19.69% Foreign equities 8.21% Emerging markets –18.17% Small-cap growth 14.59% Emerging markets –2.27% Foreign equities -4.48% Average return Mid-cap value 9.43% Mid-cap growth 9.43% Emerging markets 8.78% Large-cap growth 8.54% Small-cap growth 8.49% Diversified equities 8.24% Small-cap value 7.30% Large-cap value 6.89% Foreign equities 4.91% Volatility (standard deviation) Emerging markets 23.74% Large-cap growth 20.23% Large-cap value 19.77% Foreign equities 18.17% Mid-cap growth 17.95% Mid-cap value 17.74% Diversified equities 17.37% Small-cap value 15.54% Small-cap growth 15.01% Risk-adjusted return (Sharpe ratio) Small-cap growth 0.52 Mid-cap value 0.52 Mid-cap growth 0.51 Diversified equities 0.46 Small-cap value 0.44 Large-cap growth 0.43 Emerging markets 0.42 Large-cap value 0.36 Foreign equities 0.28 Source: Morningstar Direct and John Hancock Investments, 2014. Diversified equities are represented by an equal-weighted blend of all eight equity categories shown in the above chart. Please see slide 15 for complete definitions. It is not possible to invest directly in an index. Past performance does not guarantee future results. Diversification does not guarantee a profit or eliminate the risk of a loss. Standard deviation measures performance fluctuation, may not be indicative of future risk, and is not a predictor of returns. Sharpe ratio is a measure of excess return per unit of risk, as defined by standard deviation. A higher Sharpe ratio suggests better risk-adjusted performance. LOWEST RETURNS HIGHEST RETURNS Annual returns of common equity categories

7 Holding stocks for longer periods of time can greatly diminish the effects of short-term volatility Annualized returns of S&P 500 Index, 1950–2014 Source: Morningstar Direct and John Hancock Investments, 2014. It is not possible to invest directly in an index. Past performance does not guarantee future results. Please see slide 15 for complete definitions. 7 Highest return Lowest return Rolling periods from 1950–2014 Since 1950, single-year returns of the S&P 500 Index have been as high as 45% and as low as –38%. However, over 20-year rolling periods, annualized returns are much less extreme, with a high of 14% and a low of 2%.

8 Annualized return 5.11%4.36% Sharpe ratio 0.290.24 Standard deviation 15.70%15.05% Ending value of $100,000 invested 15 years ago (rebalanced quarterly) $211,090$189,580 The benefits of a diversified portfolio Diversified stock portfolio Traditional stock portfolio 15-year performance results A diversified equity strategy has helped increase return potential 8 Large-cap U.S. stocks Value stocks Growth stocks Developed foreign market stocks Emerging-market stocks Source: Morningstar, as of 6/30/15. For illustrative purposes only. It is not possible to invest directly in an index. Past performance does not guarantee future results. Diversification does not guarantee a profit or eliminate the risk of a loss. Standard deviation measures performance fluctuation, may not be indicative of future risk, and is not a predictor of returns. Sharpe ratio is a measure of excess return per unit of risk, as defined by standard deviation. A higher Sharpe ratio suggests better risk-adjusted performance. Please see slide 15 for complete definitions.

9 Equity investing with John Hancock Investments 1 On 12/19/08, John Hancock Disciplined Value Fund acquired the assets of the Robeco Boston Partners Large Cap Value Fund (predecessor fund). Returns of the predecessor fund’s Investor Class shares, first offered on 1/16/97, have been recalculated to apply the gross fees and expenses of Class A shares, first offered on 12/22/08. The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. John Hancock Disciplined Value Fund (JVLAX) Managed by Boston Partners Why this fund? The fund’s veteran management team takes an all-weather approach, seeking to limit downside risk in falling markets while keeping pace in rising markets. Average annual total returns as of 6/30/15 1 (%) 1 year3 year5 year10 year Life of fund 1/16/97 Class A (without sales charge) 5.3617.7516.568.598.20 Class A (with 5% maximum sales charge) 0.0915.7615.378.037.89 Net expense ratio (what you pay): 1.08% Gross expense ratio: 1.08% 9

10 Equity investing with John Hancock Investments 1 The fund is the successor to Robeco Investment Management International Equity Fund and was first offered on 9/29/14. Returns prior to this date are those of the predecessor fund’s institutional class shares, launched on 12/30/11, and may be higher than if adjusted to reflect the expenses of any other share classes. 2 Represents the effect of a fee waiver and/or expense reimbursement through 2/29/16. The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. John Hancock Disciplined Value International Fund (JDIBX) Managed by Boston Partners Why this fund? The fund seeks to outperform non-U.S. equity markets over time by limiting downside risk in falling markets while keeping pace in rising markets. Average annual total returns as of 6/30/15 1 (%) 1 year3 year5 year10 year Life of fund 12/30/11 Class A (without sales charge) –1.8314.65N/A 13.24 Class A (with 5% maximum sales charge) –6.7412.70N/A 11.59 Net expense ratio (what you pay): 1.38% Gross expense ratio: 1.55% 2 10

11 Equity investing with John Hancock Investments John Hancock Emerging Markets Fund (JEVAX) Managed by Dimensional Fund Advisors Why this fund? The fund looks for multiple sources of return while seeking to minimize turnover, trading costs, cash drag, and company-specific risks. Average annual total returns as of 6/30/15 1 (%) 1 year3 year5 year10 year Life of fund 5/1/07 Class A (without sales charge) –6.403.092.13N/A2.23 Class A (with 5% maximum sales charge) –11.061.341.09N/A1.58 Net expense ratio (what you pay): 1.53% Gross expense ratio: 1.53% 11 1 5/1/07 is the inception date for the oldest class of shares, Class NAV shares. Class A shares were first offered on 3/31/11. The returns prior to this date are those of Class NAV shares that have been recalculated to apply the gross fees and expenses of Class A shares. The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291.

12 Equity investing with John Hancock Investments John Hancock Global Shareholder Yield Fund (JGYAX) Managed by Epoch Investment Partners Why this fund? The fund invests in equities worldwide and employs strong risk controls to generate income across all market environments with a lower level of volatility. Average annual total returns as of 6/30/15 (%) 1 year3 year5 year10 year Life of fund 3/1/07 Class A (without sales charge) –4.6310.3612.47N/A5.17 Class A (with 5% maximum sales charge) –9.398.4811.32N/A4.52 Net expense ratio (what you pay): 1.28% Gross expense ratio: 1.28% 12 The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291.

13 Equity investing with John Hancock Investments John Hancock Large Cap Equity Fund (TAGRX) Managed by John Hancock Asset Management Why this fund? The fund is designed to be opportunistic in its positioning within both growth and value stocks, targeting quality companies that may be priced below their long-term potential. Average annual total returns as of 6/30/15 (%) 1 year3 year5 year10 year Life of fund 9/30/84 Class A (without sales charge) 7.8017.8015.0211.0110.70 Class A (with 5% maximum sales charge) 2.4115.8013.8410.4410.52 Net expense ratio (what you pay): 1.06% Gross expense ratio: 1.06% 13 The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291.

14 Equity investing with John Hancock Investments John Hancock U.S. Global Leaders Growth Fund (USGLX) Managed by Sustainable Growth Advisers Why this fund? The fund seeks a focused portfolio of high-quality U.S. companies characterized by pricing power, recurring revenues, and global reach. Average annual total returns as of 6/30/15 1 (%) 1 year3 year5 year10 year Life of fund 9/29/95 Class A (without sales charge) 10.1614.0217.187.489.08 Class A (with 5% maximum sales charge) 4.6612.0815.996.938.80 Net expense ratio (what you pay): 1.19% Gross expense ratio: 1.19% 14 1 On 5/17/02, the fund acquired all of the assets of the Sustainable Growth Advisers, LP U.S. Global Leaders Growth Fund, the fund’s predecessor, pursuant to a reorganization. Performance prior to 5/17/02 reflects the performance of the fund’s predecessor. The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291.

15 Index and term definitions 15 Barclays U.S. Aggregate Bond Index tracks the performance of U.S. investment-grade bonds in government, asset-backed, and corporate debt markets. Consumer Price Index tracks the variation in prices paid by typical consumers for retail goods and other items. Developed foreign market stocks are represented by the MSCI World ex-USA Index, which tracks the performance of publicly traded large- and mid-cap stocks of developed-market companies outside the United States. Total returns are calculated gross of foreign withholding tax on dividends. Emerging-market stocks are represented by the MSCI Emerging Markets Index, which tracks the performance of publicly traded large- and mid-cap emerging-market stocks. Foreign equities are represented by the MSCI Europe, Australasia, and Far East (EAFE) Index, which tracks the performance of publicly traded large- and mid-cap stocks of companies in those regions. Total returns are calculated gross of foreign withholding tax on dividends. Growth stocks are represented by the Russell growth indexes listed below, which track publicly traded companies in the United States with higher price-to-book ratios and higher forecasted growth values. A broad range of growth stocks are represented by the Russell 3000 Growth Index. Large-cap growth stocks are represented by the Russell 1000 Growth Index. Mid-cap growth stocks are represented by the Russell Midcap Growth Index. Small-cap growth stocks are represented by the Russell 2000 Growth Index. Large-cap U.S. stocks are represented by the S&P 500 Index, which tracks the performance of 500 of the largest publicly traded companies in the United States. Value stocks are represented by the Russell value indexes listed below, which track publicly traded companies in the United States with lower price-to-book ratios and lower forecasted growth values. A broad range of value stocks are represented by the Russell 3000 Value Index. Large-cap value stocks are represented by the Russell 1000 Value Index. Mid-cap value stocks are represented by the Russell Midcap Value Index. Small-cap value stocks are represented by the Russell 2000 Value Index. It is not possible to invest directly in an index. Past performance does not guarantee future results.

16 A word about risk 16 Value stocks may decline in price. Large company stocks could fall out of favor. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability, and illiquid securities may be difficult to sell at a price approximating their value. Hedging and other strategic transactions may increase volatility and result in losses if not successful. Growth stocks may be more susceptible to earnings disappointments. A portfolio concentrated in one sector or that holds a limited number of securities may fluctuate more than a diversified portfolio. Illiquid securities may be difficult to sell at a price approximating their value. Fund distributions generally depend on income from underlying investments and may vary or cease altogether in the future. The stock prices of midsize and small companies can change more frequently and dramatically than those of large companies. Currency transactions are affected by fluctuations in exchange rates. Please see the funds’ prospectuses for additional risks.

17 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. 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. MF223118 GROWTHPPT 7/15


Download ppt "Name Title John Hancock Investments Date. Three things to know about the stock market 2 It’s one of the best ways to build wealth It’s global Corrections."

Similar presentations


Ads by Google