JHF II Disciplined Value Emerging Markets Equity Fund - Class I · NASDAQ:JEVIX
JHF II Disciplined Value Emerging Markets Equity Fund - Class I — John Hancock Investment Management — Investor Presentation
61 slides from JHF II Disciplined Value Emerging Markets Equity Fund - Class I's investor presentation
Slide 1: History lessons
Building better outcomes History lessons Presenter’s Name Presenter’s Title <Date> The performance data contained in this presentation represents past performance, which does not guarantee future results. Performance, especially for short time periods, should not be the sole factor in making your in
Slide 2: Today’s agenda
Today’s agenda 1 What does the history of market returns tell us? 2 Is diversification dead? 3 Is there a wrong time or a right time to invest? 4 What is the impact of inflation and interest rates? 5 What do I do now? 2
Slide 3: What does the history of market returns tell us?
What does the history of market returns tell us? 3
Slide 4: Average market returns
Average market returns Average annual returns from 1928–2025 (%) Small company stocks 11.84 Large company stocks 9.79 Corporate bonds 6.61 U.S. government bonds 6.86 Inflation, as measured by the CPI 3.04 Mid company stocks* 12.80 *Average annual returns from 1979–2025 (%) Source: Morningstar Direct
Slide 5: In any given year, returns may be negative
In any given year, returns may be negative Distribution of annual returns, S&P 500 Index, 1928–2025 Number of occurrences 22 Positive years 72 (73%) 2025 2020 Negative years 26 (27%) 2016 2014 18 2012 2024 2010 2023 2006 2021 14 14 2004 2017 2018 2015 1993 2009 13 2000 2011 1988 2003 2019 1990 2
Slide 6: The longer you hold stocks, the better the chance returns will be positive
The longer you hold stocks, the better the chance returns will be positive Rolling 10-year stock market returns, 1928–2025 Number of occurrences Positive years 84 (94%) Negative years 5 (6%) 15 14 2024 14 2016 13 2023 2021 2015 2017 2022 2000 2014 2006 2020 1992 2013 2005 2019 1991 2012 2002 201
Slide 7: Great years are not that uncommon
Great years are not that uncommon Performance of stocks since 1928 Total number of years 40 Total number of years since 1928 when the stock market has had an annual return of over 20% 36 35 30 Calendar year returns of 8% to 12% have occurred 25 ONLY 4 TIMES IN 98 YEARS. 22 20 15 14 14 10 6 6 5 0 <-2
Slide 8: There is nothing average about returns
There is nothing average about returns 1928–2025 What’s the most common occurrence in the stock market in a calendar year? # of occurrences / % of occurrences 36 36 26 36.7% 36.7% 26.5% Calendar year returns of 8%–12% have occurred ONLY 4 TIMES IN THE 98 YEARS SINCE 1928 < 0% 0% to 20% > 20% Source:
Slide 9: It is a market of extremes
It is a market of extremes S&P 500 Index calendar year returns, 1928–2025 (%) 60 The average annual return from 1928 to 2025 is 9.8% 40 20 0 -20 -40 -60 1928 1933 1938 1943 1948 1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 2013 2018 2023 2025 Source: Calculated by John Hancock Funds,
Slide 10: What does the history of market returns tell us?
What does the Historically, since 1928 the average history of market return for the S&P 500 has been 9.8%. returns tell us? However, the stock market is a market of extremes and returns of 10% are not the norm. Investors should expect highs and lows in the short term. Remember your investment time h
Slide 11: Is diversification dead?
Is diversification dead? WN Manulife) /4Hhimock
Slide 12: Sometimes, traditional asset allocation didn’t work
Sometimes, traditional asset allocation didn’t work 2005 2008 2011 Value Blend Growth Value Blend Growth Value Blend Growth Larg Larg Larg 6.0 5.9 6.7 -37.1 -37.8 -40.7 -0.8 -1.3 -2.5 e e e Smal Mid Smal Mid Smal Mid 8.8 9.3 9.8 -36.8 -39.2 -43.8 -4.0 -3.8 -4.0 6.4 6.8 6.0 -32.2 -36.6 -41.6 -4.5 -4.
Slide 13: Other times, it did
Other times, it did 2003 2007 2009 2016 2017 Value Blend Growth Value Blend Growth Value Blend Growth Value Blend Growth Value Blend Growth Larg Larg Larg Larg Larg 28.4 27.1 28.7 1.4 6.6 13.4 24.1 28.2 35.7 14.8 10.4 3.2 15.9 20.4 27.7 e e e e e Smal Mid Smal Mid Smal Mid Smal Mid Smal Mid 33.9 36.
Slide 14: A diversified bond portfolio can help reduce volatility
A diversified bond portfolio can help reduce volatility Bond market performance is constantly changing along with interest rates and the economic outlook (%) 10-year U.S. Treasury yield Effective federal funds rate 6 3 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 15: Traditional asset classes may not offer much protection in a severe sell-off
Traditional asset classes may not offer much protection in a severe market sell-off Nowhere to hide Total returns by asset class, 2008 (%) 5 -2 -26 -29 -38 -37 -45 -44 -43 -47 -53 Emerging Int’l Global Natural Int’l U.S. U.S. Bank High- TIPS U.S. markets small real resources stocks real stocks loans
Slide 16: Nontraditional asset classes can play a role during difficult periods for equities
Nontraditional asset classes can play a role during difficult periods for equities Average annual returns during the lost decade, 2000–2009 11.8 10.5 10.5 9.8 6.2 6.2 6.6 4.5 3.5 3.5 3.8 1.2 –1.0 Source: Morningstar Direct, as of 12/31/2025. Performance numbers reflect a total return average of fund
Slide 17: Is your portfolio ready for the next stock market downturn?
Is your portfolio ready for the next stock market downturn? Tech bubble bursts The lost decade Financial crisis ■ Blended index (65% stocks/35% bonds)1 Growth of $500,000 Cumulative returns Cumulative returns Cumulative returns ■ S&P 500 Index 1/1/00–12/31/25 3/24/00–10/9/02 1/1/00–12/31/09 10/10/07
Slide 18: The markets are unpredictable
The markets are unpredictable Diversification helps ensure that you don’t own too many of the worst-performing asset classes Annual returns of asset class categories 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Stay diversified BEST PERFORMER U.S. small-cap equity International equity Cash U.S.
Slide 19: Is diversification dead?
Is diversification Diversification across equity asset classes dead? may increase your clients’ chances for investment success. It is important to make sure that your fixed income portfolios are diversified as well. Adding non-traditional asset classes to your portfolios may help improve returns and
Slide 20: Is there a wrong time or a right time to invest?
Is there a wrong time or a right time to invest? 20
Slide 21: Elections? Presidential election cycles have been positive for stocks
Elections? On average, presidential election cycles have been positive for stocks Average returns for the S&P 500 Index, 1928–2025 (%) 12.0 10.7 17.9 7.2 Top Total # of years with positive returns 15 14 21 22 10 10 4 2 Pre-election Election Post-election Midterm year year year Source: Bloomberg, as
Slide 22: Stock market volatility around recent presidential elections
Stock market volatility has been modest before and after recent presidential elections—with some exceptions Cboe Volatility Index 30-day moving average in the 100 days before and after U.S. presidential elections, 1992–2025 1992 1996 2000 2004 2008 2012 2016 2020 2024 70 60 50 2008 2020 global Biden
Slide 23: 60/40 portfolio performance in presidential election years
60/40 stock-bond portfolio performance has slightly lagged in presidential election years vs. nonelection years Annual returns of a 60/40 portfolio, 1976–2025 (%) Presidential election Nonpresidential election 40 30 20 10 0 -10 -20 1976 1983 1990 1997 2004 2011 2018 2025 Average annual return 9.54%
Slide 24: Which party is better for stocks once in the White House?
Which party is better for stocks once in the White House? President Start End Cumulative return (%) Annualized return (%) Roosevelt, T. (R) 9/14/1901 3/4/1909 21.6 2.7 Taft, W. (R) 3/4/1909 3/4/1913 -1.3 -0.3 Wilson, W. (D) 3/4/1913 3/4/1921 -6.9 -0.9 Harding, W. (R) 3/4/1921 8/2/1923 17.4 6
Slide 25: Stocks lag prior to Election Day but come back following the vote
Relative to nonelection years, stocks have tended to lag prior to Election Day but come back following the vote Cumulative average returns of the S&P 500 Index during 18-month periods before and after presidential and midterm elections versus nonelection periods, 1/31/28–12/31/25 (%) Returns over th
Slide 26: Stocks have risen over the long term no matter which party
Stocks have risen over the long term no matter which party has been in the White House Growth of a hypothetical $1,000 investment in the S&P 500 Index, 1/31/28–12/31/25 Republican presidency Final market value of initial Democratic presidency $1,000 investment $9,518,724 as of 12/31/25 $1,000,000 $1
Slide 27: Markets recover from crises
Markets recover from crises Market events and recovery from the bottom Loss during 1 month 1 year 5 years 10 years Event Reaction dates the event later later later later Fall of France 5/9/40–6/22/40 -16.90% 0.70% 5.00% 15.70% 13.20% Outbreak of 6/23/50–7/13/50 -12.20% 10.20% 42.20% 27.70% 18.50% Ko
Slide 28: The level of stock market volatility in recent years is unprecedented
The level of stock market volatility in recent years is unprecedented S&P 500 Index, 1974–2025 Trading days per year with greater than ±2% returns Periods of recession Trading days per year with greater than ±2% returns Lehman Brothers bankruptcy 80 COVID-19 pandemic European sovereign debt crisis b
Slide 29: Stocks have outpaced bonds and inflation over time
Stocks have outpaced bonds and inflation over time, despite a litany of volatility-inducing events Growth of $100,000, 1986–2025 Stocks (S&P 500 Index) Bonds (Bloomberg Barclays U.S. Aggregate Bond Index) Inflation (Consumer Price Index) Recessions $10,000,000 2020 COVID-19 pandemic 2011 U.S. debt d
Slide 30: Ignore short-term events and focus on the long-term
Ignore short-term events and focus on the long-term Despite investing before a crisis, history has shown you will make money over the long-term S&P 500 Index cumulative return Oil crisis, Jan. 1973–Jun. 1976 Stock market crash, Oct. 1987–Apr. 1989 Number of months to recover: 42 Number of months to
Slide 31: Investors who abandon stocks may miss out on recovery
Investors who abandon stocks in a downturn may miss out on their eventual recovery One of the most difficult things for an investor to do is to avoid panicking during a market downturn and selling stocks when they’re at their lowest point Growth of $100,000 (12/31/07–12/31/25) Stayed invested in s
Slide 32: U.S. equities have historically recovered
U.S. equities have historically recovered Bull markets have outlasted bear markets for more than 70 years (%) Bulls vs. bears (1955–2024) ■ Bull markets ■ Bear markets Occurrences 12 11 Average length (months) 60 13 Average return (%) 183.26 -34.64 550% 500% 450% 400% The covid bear 350% market bega
Slide 33: Is there a right time or a wrong time to invest?
Is there a right On average, presidential election cycles have time or a wrong been positive for stocks time to invest? Markets have historically recovered from crises Try to ignore the short-term and focus on the long-term "The best time to invest is when you have the money” -Sir John Templeton 33
Slide 34: What is the impact of inflation and interest rates?
What is the impact of inflation and interest rates? 34
Slide 35: What is inflation?
What is inflation? What is inflation? Increase in Causes Too much the price of your buying money goods and power to chasing too services erode few goods 6 Main causes of inflation: 1) Demand-pull inflation 2) Cost-push inflation 3) Increased money supply 4) Rising Wages 5) Devaluation 6) Policies an
Slide 36: Let’s talk about the role of the Federal Reserve: raising rates
Let’s talk about the Why does the Federal Reserve raise interest rates role of the Federal to combat inflation? Doesn’t the higher cost of borrowing just create more inflation? Reserve: Raising By raising rates, the Fed hopes to discourage interest rates consumers from making large purchases and com
Slide 37: What about recession risk?
What about recession risk? Duration of U.S. recessions in months 50 45 43 40 35 100-year average: 12.6 months 30 25 20 18 16 16 15 14 13 13 11 10 10 11 10 8 8 8 8 6 5 2 0 6/1/1923- 11/1/1926- 9/3/1926- 6/1/1937- 3/1/1945- 12/1/1948- 8/3/1953- 9/3/1957- 5/2/1960- 1/2/1970- 12/3/1973- 2/1/1980- 8/3/19
Slide 38: How have equity markets reacted to inflation and rising rates?
How have equity markets reacted to inflation and rising rates historically? Monthly U.S. S&P 500 returns against Monthly Changes in Effective Federal Funds Rate, August 1954–December 2025 20 15 10 When the Fed Funds rate goes up, do stock S&P 500 Index Monthly Return 5 prices go down? The answer is
Slide 39: What happens to fixed income when interest rates go up?
What happens to fixed income when interest rates go up? Bonds have a built-in recovery mechanism… Starting Duration 6.1 Increase in rates Starting Yield 4.60% 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 0.25% -1.53% 3.33% 8.18% 13.03% 17.88% Source: Manulife John Hancock Increase in rates Investments. For illustrative
Slide 40: Holding bonds to maturity has typically earned initial yield
Holding bonds to maturity has typically earned initial yield despite paper losses Over the last 40 years, there’s been a strong relationship between starting bond yields and subsequent 5-year annualized returns 22 Largest Agg drawdowns 20 Month ended Drawdown (%) 89% of a bond’s performance is attri
Slide 41: Let’s talk about the role of the Federal Reserve: lowering rates
Why does the Federal Reserve lower interest rates? Let’s talk about the How does lowering rates help the economy? role of the Federal Reserve: By lowering rates, the Fed hopes to improve Lowering consumer and business spending. The goal is interest rates to stabilize prices and maximize employment,
Slide 42: The Fed is now balancing inflation risk and employment risk
The Fed is now balancing inflation risk and employment risk The Fed has been successful in dampening inflation, but cracks in the labor market are starting to show Core PCE YoY (%) Unemployment Rate (%) 5.5 4.6 5.0 4.4 The unemployment rate has risen since the start of the Inflationary pressures hav
Slide 43: The Fed may slow rate cuts in 2026
The Fed may slow rate cuts in 2026, but history suggests rates could be lower by the cycle’s end The Fed Funds target rate tends to fall further than the 10-year U.S. Treasury yield once the Fed shifts policy U.S. Federal Funds Target Rate (Right) U.S. Benchmark Bond - 10 Year (Left) Recessions 8.00
Slide 44: In portfolios, playing defense is important
In portfolios, playing defense is important Percentage of weekly equity market declines in which core bonds* were up 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1992 1997 2007 2015 2021 2022 1993 1994 1995 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013 2014 2016 2017
Slide 45: What is the impact of inflation and interest rates?
What is the impact Inflation (loss of buying power) has many of inflation and different causes. interest rates? The Fed raises interest rates in the hopes of cooling growth and stabilizing prices. The Fed lowers rates to help spur consumer and business demand.1 When rates rise, stock portfolios can
Slide 46: What do I do now?
What do I do now? WN Manulife) /4Hhimock
Slide 47: It’s natural to feel emotional about your investments
It’s natural to feel emotional about your investments EUPHORIC “I should quit my job and do this full time! Look at the money I’m making!” Best opportunity to make money Nervous Confident “What happened? “I’ve already What is going on?” made money. This is great.” Hopeful “Things seem like they’re R
Slide 48: Emotions make investors abandon and reenter stocks at the worst times
Emotions tend to make investors abandon and reenter stocks at the worst times Net fund flows ($M), 2006–2025 Equity fund flows S&P 500 Index $ 180,000 Investors move back 7,000 in as index peaks 6,500 130,000 6,000 5,500 80,000 5,000 4,500 30,000 4,000 3,500 -20,000 3,000 2,500 -70,000 Investors 2,0
Slide 49: Limiting losses is paramount
Limiting losses is paramount How long can it take to recover from losses? Assuming 10% loss 20% loss 30% loss 40% loss 3% yearly return 4 years 7 years 9 years 12 years 5% yearly return 2 years 4 years 6 years 7 years 7% yearly return 2 years 3 years 4 years 5 years 9% yearly return 2 years 3 years
Slide 50: The key is not missing the market’s best days
The key is not missing the market’s best days 20-year growth of $10,000, 2006–2025 Fully invested $80,485 Missed 10 best days $35,806 Missed 20 best days $21,141 Missed 30 best days $13,803 Missed 40 best days $9,447 Source: Bloomberg, as of 12/31/2025. This table is for illustrative purposes only.
Slide 51: Actions depend on life stage: accumulation stage investor
Actions depend Accumulation stage investor on life stage For investors who are firmly in the accumulation stage with a long-term outlook: Don’t panic If you continue to feel unsettled, revisit your goals, investment time horizon, and risk tolerance with your Financial Professional to make sure your
Slide 52: Actions depend on life stage: nearing retirement
Actions depend Nearing retirement or early-stage on life stage retirement investor For investors nearing retirement or in early-stage retirement, there are special considerations Don’t panic Meet with your Financial Professional to discuss your concerns and fears Make sure your emergency fund is ful
Slide 53: Who is impacted by sequence of returns?
Who is impacted by sequence of returns? The sequence of returns may have less of an impact on the portfolio of someone who is still working and accumulating assets for retirement. However, during retirement, the relationship between an individual’s rate of withdrawal and the sequence of returns can
Slide 54: Sequence of returns illustration
Sequence of returns illustration – Factors affecting portfolio results before and after retirement Source: Standard & Poor’s. The sequence of returns has an average compounded annualized return of 8% over 25 years and year-to-year volatility that is consistent with a portfolio predominantly comprise
Slide 55: Actions depend on life stage: mid or late-stage retirement
Actions depend Mid or late-stage retirement investor on life stage For a mid or late-stage retirement investor: Don’t panic Meet with your Financial Professional to discuss your concerns and fears Make sure your emergency fund is fully funded Revisit your retirement income strategy for your portfoli
Slide 56: In summary
In summary What does the Is diversification Is there a right What is the What do I do history of dead? time or wrong impact of now? market returns time to invest? inflation and tell us? interest rates? 56
Slide 57: “Those who fail to learn from history are doomed to repeat it.”
“Those who fail to learn from history are doomed to repeat it.” Winston Churchill British Statesman 57
Slide 58: Q&A
QEA WW Manulife | 4 Aoneck investment 58
Slide 59: A word about risk
A WORD ABOUT RISK The Morningstar Style Box™ reveals a fund’s investment strategy as of the date noted on this presentation. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth.) A d
Slide 60: A word about risk
A WORD ABOUT RISK Portfolio which are assigned to Morningstar municipal-bond categories employ static breakpoints between categories. These breakpoints are: "Limited" equal to 4.5 years or less, "Moderate" equal to 4.5 years to less than 7 years; and "Extensive" equal to more than 7 years. For portf
Slide 61: Promotional material disclosure
This material was prepared to support the promotion and marketing of John Hancock products. John Hancock, its distributors, and their respective representatives do not provide tax, accounting, investment, or legal advice. Any tax statements contained herein were not intended or written to be used, a
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