MANULIFE FINANCIAL CORPORATION BOSTON, March 23, 2015 /PRNewswire/ -- John Hancock Investments said that two of its top-performing funds - the John Hancock Global Absolute Return Strategies Fund (GARS) and the John Hancock Strategic Growth Fund - both marked three-year anniversaries in late December of 2014, subsequently receiving Morningstar ratings in January of 2015. Both funds' Class I shares are rated four stars by Morningstar as of 1/31/15 over the three-year period.
"When we launched both of these funds just over three years ago, we were building out our product line with specific objectives," said Andrew G. Arnott, President & CEO, John Hancock Investments. "In the case of GARS, we had embarked on adding liquid alternatives to our platform. After searching the globe for the right manager, we selected Standard Life Investments (SLI) due to their proven capability in this area. We believe GARS has delivered on its objective of providing long term total return above its cash benchmark. Over the last three years the fund returned 4.79 percent, a 469 basis point premium over cash with volatility as measured by standard deviation of 3.04 and a 0.45 correlation to the S&P 500."
"In the case of Strategic Growth, we set out to complement our existing product line with a diversified growth strategy, aware that in the large cap growth space there are precious few managers who have shown an ability to produce consistent levels of alpha. We were fortunate to partner with our affiliated sub-advisor Manulife Asset Management in the creation of the fund," Mr. Arnott added.
Managed by SLI, GARS had $6.16 billion in assets as of the three-year anniversary date of 12/19/14. The Fund seeks to produce positive returns over all market cycles with less volatility than traditional global equities.
"GARS looks to deliver an investment that has a low correlation to other asset classes while focusing on a particular return target over time and delivering that return target with the least amount of volatility possible. It is a methodology very different from what is offered by most other investment managers and is a main reason the fund has appealed to so many different investors," Mr. Arnott said.
The John Hancock Strategic Growth Fund is managed by the U.S. Large Cap Growth team led by W. Shannon Reid, CFA, at John Hancock Asset Management, the U.S. unit of Manulife Asset Management. The Fund, which had $2.1 billion in assets as of the anniversary date, pursues a well-diversified Large Growth strategy that combines both quantitative analysis and fundamental research to identify companies whose earnings growth potential is underestimated by the market consensus.
"Strategic Growth has a repeatable and time-tested investment approach. The team's philosophy and process have been in place since 1995 prior to arriving at Manulife Asset Management and the investment approach has stayed true to the large cap growth mandate. The team has been able to generate strong absolute and relative returns in both up and down markets while managing risk," Mr. Arnott added.
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% of funds in each category, the next 22.5%, 35%, 22.5 % and bottom 10% receive 5, 4, 3, 2 or 1 star respectively. Each share class is counted as a fraction of 1 fund within this scale and 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. The funds' Class I share overall rating were 4 stars out of 214 multialternative funds, and 4 stars out of 1538 large growth funds for the 3 year period. Please note that Class I shares may not be available for all investors and that performance of share classes will vary. Past performance is no guarantee of future results.
Average annual total returns of Class I shares as of 12/31/06
Since Inception
1-year 3-year 5-year 10-year inception date
------ ------ ------ ------- --------- ----
Without sales
charge 7.60% 13.12% -0.09% 7.61% - 6/10/91
Since Inception
1-year 3-year 5-year 10-year inception date
------ ------ ------ ------- --------- ----
With 5% maximum 2.24% 11.21% -1.11% 7.06% - 6/10/91
sales charge
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.
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. Certain market conditions, including reduced trading volume, heightened volatility, and rising interest rates, may impair liquidity, the ability of the fund to sell securities or close derivative positions at advantageous prices. 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. Growth stocks may be more susceptible to earnings disappointments. Please see the fund's prospectus for additional risks.
About John Hancock Investments
John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of America's strongest and most-recognized brands. As a manager of managers, John Hancock Investments searches the world to find proven portfolio teams with specialized expertise for every fund we offer, then to apply vigorous investment oversight to ensure they continue to meet our uncompromising standards. Our unique approach to asset management has led to a diverse set of investments deeply rooted in investor needs, along with strong risk-adjusted returns across asset classes. John Hancock Investments managed more than $126 billion in assets as of December 31, 2014.
About Manulife Asset Management
Manulife Asset Management is the global asset management arm of Manulife, providing comprehensive asset management solutions for investors. This investment expertise extends across a broad range of public and private asset classes, as well as asset allocation solutions. As at December 31, 2014, assets under management for Manulife Asset Management were approximately C$321 billion (US$277 billion). Manulife Asset Management's public markets units have investment expertise across a broad range of asset classes including public equity and fixed income, and asset allocation strategies. Offices with full investment capabilities are located in the United States, Canada, the United Kingdom, Japan, Hong Kong, Singapore, Taiwan, Indonesia, Thailand, Vietnam, Malaysia, and the Philippines. In addition, Manulife Asset Management has a joint venture asset management business in China, Manulife TEDA. The public markets units of Manulife Asset Management also provide investment management services to affiliates' retail clients through product offerings of Manulife and John Hancock. John Hancock Asset Management and Declaration Management and Research are units of Manulife Asset Management. Additional information about Manulife Asset Management may be found at ManulifeAM.com.
About John Hancock Financial and Manulife
John Hancock Financial is a division of Manulife, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Operating as Manulife in Canada and Asia, and primarily as John Hancock in the United States, our group of companies offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Assets under management by Manulife and its subsidiaries were C$691 billion (US$596 billion) as at December 31, 2014. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife can be found on the Internet at manulife.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.
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SOURCE John Hancock Investments
