What is absolute return investing?
Absolute return investing is an approach to portfolio management that targets positive returns over a full market cycle with less volatility than equities. Whereas
traditional relative return funds define success as outperforming an index, absolute return funds seek to limit losses and actively manage risk in the pursuit of more
consistent returns.
Absolute return funds
Relative return funds
Seek to limit losses and generate positive absolute returns over time
Define success as beating a benchmark, even when the return is negative
n Absolute return approach
n Equity
markets
2%
Investment volatility
0
Traditional fund
Benchmark
–2
Relative
outperformance
–4
Time horizon
� Define success in absolute terms: positive returns
� Define success in relative terms
� Seek low volatility and limited market risk
� Set no absolute volatility targets
� Can go anywhere—not limited by a benchmark
� Typically favor investments within a benchmark
Charts are shown for illustrative purposes only and do not represent the performance of any John Hancock fund. Performance will fluctuate, and it is possible to lose money in an absolute return fund.
John Hancock Investments can help you pursue lower volatility
The veteran team behind John
Hancock Global Absolute
Return Strategies Fund employs
more than 20 traditional and
alternative strategies across
four key approaches to pursue
positive returns with significantly
less volatility than stocks. By
combining these uncorrelated
strategies into a single portfolio,
the team seeks to maximize
their diversification benefits
and achieve a more consistent
pattern of returns.
Directional strategies
Market returns
Seeking to exploit changes in the performance drivers of
certain market segments, such as currencies, volatility, interest
rates, and inflation
Dynamically allocating assets among baskets of equities,
bonds, and real estate
How uncorrelated strategies
lower volatility1 (%)
Total stand-alone volatility of strategies
13.79
Estimated diversification benefit
9.45
Fund’s actual volatility
Relative value strategies
Security selection
S&P 500 Index’s actual volatility
Seeking to gain from the difference in performance between
closely related market segments, such as establishing long
positions in U.S. large-cap stocks and shorting U.S. small-cap
stocks when large caps are expected to outperform
Active stock and bond picking against conventional
benchmarks, using bottom-up, fundamental analysis
Fund 3-year correlation to2:
3 year
5 year
John Hancock Global Absolute Return Strategies Fund
Life of fund
Total expense
ratios (%)
12/19/11
Managed by Standard Life Investments
Class I (without sales charge)
–2.50
1.02
3.13
3.21
1.32
Class A (without sales charge)
–2.79
0.72
2.78
2.86
1.64
–7.65
–0.99
1.73
1.82
1.64
A: JHAAX
C: JHACX
0.41
0.44
Bloomberg Barclays U.S. Aggregate Bond Index
1 year
Share classes:
S&P 500 Index
MSCI World Index
Average annual total returns as of 12/31/16 (%)
Class A (with 5% maximum sales charge)
4.34
10.74
I: JHAIX
R2: JHARX
–0.02
Why this fund?
The fund combines a variety of asset classes and
strategies to seek to profit from inefficiencies in global
markets while providing positive absolute returns over
a full market cycle.
R6: JHASX
1 Standard Life Investments, Morningstar Direct, as of 12/31/16.
2 Morningstar Direct. Calculations are based on Class A shares for the three-year period ended 12/31/16.
Volatility measures performance fluctuation, may not be indicative of future risk, and is not a predictor of returns. Correlation is a statistical measure that describes how investments move in relation to each other, which ranges from –1.00 to 1.00. The closer the number is
to –1.00 or 1.00, the more closely the two investments are related. The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States. The MSCI World Index tracks the performance of publicly traded large- and mid-cap stocks of
developed-market companies. Total returns are calculated gross of foreign withholding tax on dividends. The Bloomberg Barclays U.S. Aggregate Bond Index tracks the performance of U.S. investment-grade bonds in government, asset-backed, and corporate debt markets.
Prior to 8/24/16, the index was named the Barclays U.S. Aggregate Bond Index. It is not possible to invest directly in an index.
Diversification does not guarantee a profit or eliminate the risk of a loss.
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. For the most recent month-end performance, visit jhinvestments.com.
Absolute return funds are not designed to outperform stocks and bonds in strong markets. There is no guarantee of a positive return, of the fund achieving its objective, or that volatility-reducing strategies will be successful. The use
of hedging and derivatives could produce disproportionate gains or losses and may increase costs. 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. Currency transactions are affected by fluctuations in exchange rates. Foreign investing, especially in emerging
markets, has additional risks, such as currency and market volatility and political and social instability. Investments in higher-yielding, lower-rated securities include a higher risk of default. The stock prices of midsize and small companies
can change more frequently and dramatically than those of large companies. Please see the fund’s prospectus for additional risks. This material is not intended to be, nor shall it be interpreted or construed as, a recommendation or
providing advice, impartial or otherwise. John Hancock Investments and its representatives and affiliates may receive compensation derived from the sale of and/or from any investment made in its products and services.
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.
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.
MF341186
Connect with John Hancock Investments:
@JH_Investments | jhinvestmentsblog.com
ARDEFINVSI 1/17