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Name Title John Hancock Investments Date. Charting a course for global opportunities Three things to know about international investing Why now may be.

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Presentation on theme: "Name Title John Hancock Investments Date. Charting a course for global opportunities Three things to know about international investing Why now may be."— Presentation transcript:

1 Name Title John Hancock Investments Date

2 Charting a course for global opportunities Three things to know about international investing Why now may be a good time to invest 1 2 3 International investing with John Hancock Investments 2

3 Charting a course for global opportunities Three things to know about international investing Why now may be a good time to invest 1 2 3 International investing with John Hancock Investments 3

4 International markets have outperformed The world’s best equity market performance has come from outside the United States Highest and lowest annual country returns in the MSCI ACWI ex-USA versus the S&P 500 Index, 2006–2015 1 (%) 1 See slide 20 for additional information. Source: MSCI, 2015. Individual country returns are from MSCI single-country indexes. 4

5 Nearly half the world’s opportunities are overseas International markets are home to nearly half of the world’s investment opportunities Yet most individual investors allocate a far smaller percentage of their portfolio to international stocks Source: MSCI AC World Index, 2016. Data is as of 3/31/16. Source: Investment Company Institute, National Association of College and University Business Officers, 2015. 5

6 The future looks bright for overseas growth The middle class is growing much faster overseas Source: Credit Suisse Global Wealth Databook 2015, Credit Suisse Research Institute, October 2015. Middle class is defined as those with wealth between US$50,000 and US$500,000. 6

7 1 Charting a course for global opportunities Why now may be a good time to invest 2 3 International investing with John Hancock Investments Three things to know about international investing 7

8 International central banks continue to stimulate economic growth In the past 15 months, more than two dozen countries lowered interest rates in an attempt to drive economic growth Source: FactSet, 2016. QE = quantitative easing. 8

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10 Declining currencies are making foreign economies more competitive In recent years, key currencies have declined sharply versus the U.S. dollar Source: Federal Reserve Bank of St. Louis, 2016. Data is as of 3/31/16. 10

11 Privatization is rapidly expanding global opportunities Privatizations are on pace to more than double those of the prior decade Source: The Privatization Barometer Report 2014/2015, Privatization Barometer, 2015. 11

12 1 Charting a course for global opportunities Three things to know about international investing 3 International investing with John Hancock Investments Why now may be a good time to invest 2 12

13 John Hancock Disciplined Value International Fund Managed by Boston Partners Why this fund? Seeks to outperform non-U.S. equity markets over time by limiting downside risk in falling markets while keeping pace in rising markets 4, 5 See slide 20 for additional information. 13

14 6, 7 See slides 20 and 21 for additional information. 8 “Net (what you pay)” represents the effect of a fee waiver and/or expense reimbursement through 2/28/17 and is subject to change. John Hancock Disciplined Value International Fund is the successor to Robeco Investment Management International Equity Fund (predecessor 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. John Hancock Disciplined Value International Fund Managed by Boston Partners 14

15 Why this fund? Invests in equities worldwide and employs strong risk controls to pursue income across all market environments with a lower level of volatility John Hancock Global Shareholder Yield Fund Managed by Epoch Investments Partners 4, 5 See slide 20 for additional information. 15

16 6, 7 See slides 20 and 21 for additional information. John Hancock Global Shareholder Yield Fund Managed by Epoch Investments Partners 16

17 Why this fund? Invests in non-U.S. growth-oriented companies with high revenue growth, superior business models, improving fundamentals, and strong free cash flow John Hancock International Growth Fund Managed by Wellington Management 4, 5 See slide 20 for additional information. 17

18 6, 7 See slides 20 and 21 for additional information. 8 “Net (what you pay)” represents the effect of a fee waiver and/or expense reimbursement through 6/30/17 and is subject to change. On 7/15/14, Wellington Management Company LLP replaced the fund’s manager, GMO (predecessor manager). Performance prior to 7/15/14 reflects the performance of the predecessor manager. John Hancock International Growth Fund Managed by Wellington Management 18

19 Why don’t these managers hedge currencies? Because hedging hasn’t provided the best performance over the long term 1 See slide 20 for index definitions. It is not possible to invest directly in an index. Source: FactSet, as of 3/31/16. 19

20 Index and term definitions The MSCI All Country World Index (ACWI) ex-USA tracks the performance of publicly traded large- and mid-cap stocks of companies in 22 developed markets and 23 emerging markets. Total returns are calculated gross of foreign withholding tax on dividends. The MSCI All Country (AC) World ex-USA Growth Index tracks the performance of publicly traded large- and mid-cap stocks with higher forecasted growth rates in 22 developed markets and 23 emerging markets. The MSCI Europe, Australasia, and Far East (EAFE) Index tracks the performance of publicly traded large- and mid-cap stocks of companies in those regions. The MSCI World Index tracks the performance of publicly traded large- and mid-cap stocks of foreign developed- market companies. Total returns are calculated gross of foreign withholding tax on dividends. The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States. Active share is a measure of how much an equity portfolio’s holdings differ from the portfolio’s benchmark index. Free cash flow (FCF) yield is a measure of a company’s cash available for distribution to shareholders per share after capital expenditures and taxes, divided by its share price. Listed holdings are a portion of the fund’s total and may change at any time. They are not recommendations to buy or sell any security. Data is expressed as a percentage of net assets and excludes cash and cash equivalents. Price to earnings (P/E) is the ratio of a stock’s price to its earnings per share. Quantitative easing (QE) is a monetary policy in which a central bank purchases government debt or other fixed- income securities in an effort to lower interest rates, increase the money supply, and stimulate economic growth. It is not possible to invest directly in an index. Past performance does not guarantee future results. 20

21 Performance and Morningstar ratings information 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. John Hancock Disciplined Value International Fund’s Class I share rating was 5 stars out of 289 funds for the 3-year period. John Hancock Global Shareholder Yield Fund’s Class I share rating was 4 stars out of 991 funds for the 3-year period and 5 stars out of 774 funds for the 5-year period. John Hancock International Growth Fund’s Class I share rating was 5 stars out of 320 funds for the 3-year period and 5 stars out of 285 funds for the 5-year period. Past performance does not guarantee future results. 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. 21

22 A word about risk 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. Value stocks may decline in price. Growth stocks may be more susceptible to earnings disappointments. Hedging and other strategic transactions may increase volatility and result in losses if not successful. Large company stocks could fall out of favor, and illiquid securities may be difficult to sell at a price approximating their value. The stock prices of small and midsize companies can change more frequently and dramatically than those of large companies. The fund may invest its assets in a small number of issuers. Performance could suffer significantly from adverse events affecting these issuers. Fund distributions generally depend on income from underlying investments and may vary or cease altogether in the future. Please see the funds’ prospectuses for additional risks. 22

23 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. MF271526PIINTLPPT 5/16 23


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