The performance data contained in this presentation represents past performance, which does not guarantee future results. Performance, especially for short.

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  • Slide 1
  • 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 investment decisions. NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY. Patrick L. McFawn CFP , CPA & Dale L. White CFP , CPA Lessons Learned 5 investing principles for today and beyond
  • Slide 2
  • 2 2 Agenda 1.Every investment has risks, even cash 2.Diversification is not dead, its just misunderstood 3.Not all bondsor bond funds are created equal 4.Yes, its STILL stocks for the long run 5.Investing abroad shouldnt be a foreign experience
  • Slide 3
  • 3 3 1 Principle Every investment has risks even cash
  • Slide 4
  • 4 Investors have flocked to cash Total savings & money market fund assets (20052011) Source: Investment Company Institute and the Federal Reserve. Assets represent retail and institutional money market assets as well as bank deposits. Past performance is no guarantee of future results. $(Billions)
  • Slide 5
  • 5 Volatility hit a high in its cycle S&P 500 (VIX) Index: A popular measure of investor fear (20052011) Source: Bloomberg. The Chicago Board Options Exchange Volatility Index (VIX) is a popular measure of the volatility of S&P 500 Index options. A high value corresponds to a more volatile market and therefore more costly options, which can be used to defray risk from this volatility by selling options. Often referred to as the fear index, it represents one measure of the markets expectation of volatility over the next 30-day period. It is not possible to invest directly in an index. Past performance is no guarantee of future results. Height of fear Volatility at its highest Higher Volatility Lower Volatility 200520062007 200820092010 2011
  • Slide 6
  • 6 The problem with moving to cash inflation Source: Calculated by John Hancock Funds, LLC using information and data presented in ENCORR Software, 2011 Morningstar, Inc. All rights reserved. Used with permission. Stocks are represented by the S&P 500 Index, an unmanaged, commonly used measure of common stock total return performance. Cash equivalents are represented by the Ibbotson 30-day Treasury Bill Index which measures the performance of one-month maturity U.S. Treasury Bills and are a commonly used measure of a savings investment. Inflation is measured by the Consumer Price Index published by the U.S. Bureau of Labor Statistics. Real return is the return minus the effects of taxes and inflation. It is not possible to invest directly in an index. Past performance is no guarantee of future results. Average annual return vs. real return (19262011) Return (%)
  • Slide 7
  • 7 Source: Calculated by John Hancock Funds, LLC using information and data presented in ENCORR Software, 2011 Morningstar, Inc. All rights reserved. Used with permission. Cash equivalents are represented by the Ibbotson 30-day Treasury Bill Index which measures the performance of one-month maturity U.S. Treasury Bills and are a commonly used measure of a savings investment. Inflation is measured by the Consumer Price Index published by the U.S. Bureau of Labor Statistics. Real return is the return minus the effects of taxes and inflation. It is not possible to invest directly in an index. Past performance is no guarantee of future results. Remember the Rule of 72 How many years will it take to double your money? 126 Years! = 0.57 72 Real return of cash
  • Slide 8
  • 8 20-year growth of $10,000 (19922011) You also run the risk of missing the recovery Source: Bloomberg.com as of 12/31/2011. Stocks represented by the S&P 500 Index, an unmanaged index commonly used to measure stock market performance. It is not possible to invest directly in an index. This illustration in not intended to represent the performance of any John Hancock mutual fund. Past performance is not a guarantee of future results.
  • Slide 9
  • 9 What should investors remember? When volatility is high, its hard to resist the temptation to get out of the markets. Although cash and short-term investments seem safer, they may not keep pace with inflation in the long term. Unless you can time it perfectly, you may also miss the gains when the market recovers. The key is to be prepared for the certainty of uncertainty! Every investment has risks, even cash Although a money market fund may seeks to preserve the value of your investment at a $1.00 per share, it is possible to lose money by investing in the fund. The value of a companys equity securities is subject to change in the companys financial condition, and overall market and economic conditions.
  • Slide 10
  • 10 2 Principle Diversification is not dead, its just misunderstood
  • Slide 11
  • 11 The lost decade Source: Bloomberg as of 12/31/09. The S&P 500 Index is an unmanaged index of 500 widely traded common stocks. It is not possible to invest directly in an index. This is a hypothetical example and does not reflect the performance of any John Hancock Fund. Past performance is no guarantee of future results. Sept 11, 2001 Terrorist attack Early 2000 Peak of tech bubble August 2007 Credit crunch begins Sept 2008 Lehman files for bankruptcy If you had invested $100,000 in the S&P 500 Index at the beginning of the decade, it would be worth $90,902 at the end of the decade. S&P 500 Index (20002009) March 2009 Markets hit bottom 2001200220032004200520062007200820092000
  • Slide 12
  • 12 Large Cap (S&P 500) Emerging Markets International Small Global Real Estate Natural Resources International (MSCI EAFE) U.S. Real Estate Loans High Yield TIPS Global Bonds Long-Term Government Why are people saying diversification is dead? Source: Morningstar Direct as of 12/31/09. Performance numbers reflect a total return average of funds in each Morningstar category, assume reinvestment of all distributions and do not reflect payment of any sales charges. The S&P 500 Index is commonly used to measure stock market performance. The MSCI EAFE Index is a large-capitalization international stock index which measures market performance in Europe, Australasia and the Far East. Indexes are unmanaged and cannot be invested in directly. Past performance is no guarantee of future results. Asset class performance Virtually everything worked! There was nowhere to hide 2009 2008 Annual Returns (%)
  • Slide 13
  • 13 However, even over the lost decade, diversification worked Average annual returns by category (20002009) Annual Returns (%) Source: Morningstar Direct as of 12/31/09. Performance numbers reflect a total return average of funds in each Morningstar category, assume reinvestment of all distributions and do not reflect payment of any sales charges. The S&P 500 Index is commonly used to measure stock market performance. The MSCI EAFE Index is a large-capitalization international stock index which measures market performance in Europe, Australasia and the Far East. Indexes are unmanaged and cannot be invested in directly. Past performance is no guarantee of future results.
  • Slide 14
  • 14 Understand investment cycles a tale of three funds Which of these funds would you invest in? Source: Morningstar Direct and John Hancock Funds. Large-Cap Growth Fund 1 (John Hancock Large Cap Equity Fund) was ranked 1564 of 1683, 1297 of 1478, 164 of 1279 and 312 of 804 against large growth funds for the 1-, 3-, 5- and 10-year time periods respectively. Large-Cap Growth Fund 2 (John Hancock Rainier Growth Fund) was ranked 77 of 1683, 178 of 1478, 255 of 1279 and 319 of 804 against large growth funds for the 1-, 3-, 5- and 10-year time periods respectively. Large-Cap Growth Fund 3 (John Hancock U.S. Global Leaders Growth Fund) was ranked 1164 of 1683, 1016 of 1478, 830 of 1279 and 310 of 804 against large growth funds for the 1-, 3- 5- and 10-year time periods respectively. Performance is for Class A shares as of 12/31/2011. Rankings are based on total return and do not include sales charges. John Hancock Large Cap Equity Funds total annual operating expense ratio as of the current prospectus is 1.22%. John Hancock Rainier Funds net annual operating expense ratio as of the current prospectus is 1.35%. The gross annual operating expense ratio of 1.39% is reduced due to a contractual expense reimbursement, which is in effect until at least 7/31/11 and may be terminated by the Adviser any time after this date. John Hancock U.S. Global Leaders Growth Funds net annual operating expense ratio as of the current prospectus is 1.30%. The gross annual operating expense ratio of 1.73% is reduced due to a contractual expense reimbursement, which is in effect until at least 2/28/11 and may be terminated by the Adviser any time after this date. Expenses for other share classes will vary, which will affect returns. Performance figures assume that all distributions are reinvested. For performance data current to the most recent month end, contact your financial professional or call John Hancock Funds at 1-800-225-5291. The performance data contained within this material represents past performance, which does not guarantee future results. The return and principal value of an investment will fluctuate, so that shares, when redeemed, may be worth more or less than the original cost. The Funds current performance may be higher or lower and is subject to substantial changes. *On 4/28/08 John Hancock Rainier Growth Fund acquired all of the assets of the Rainier Large Cap Growth Equity portfolio, the Funds predecessor, pursuant to reorganization. Performance prior to 4/28/08 reflects the performance of the Funds predecessor and does not include sales charges. Morningstar Peer Group Rankings and Average Annual Returns, as of 12/31/11 Fund Name1-Year3-Year5-Year10-Year Large-Cap Growth Fund 1 % Rank 92871339 (Average Annual Return with 5% sales charge) 8.50%-2.85%8.07%2.83% Large-Cap Growth Fund 2 * % Rank 69 6539 (Average Annual Return with 5% sales charge) 10.78%-6.46%1.13%-0.49% Large-Cap Growth Fund 3 % Rank 5121040 (Average Annual Return with 5% sales charge) 6.56%0.10%1.07%1.05% Top Quartile2 nd Quartile3 rd Quartile4 th Quartile
  • Slide 15
  • 15 Same category, very different performance Full market cycle coverage (20022011) Fund 1 Fund 2 2011200520042003200220092008200720062010 Fund 3 Large Growth Category Source: Morningstar Direct and Bloomberg. Rankings for each Fund within Morningstar Large Growth category are based on total return and do not include sales charges. Past performance is no guarantee of future results. Large Growth Category Top Quartile2 nd Quartile3 rd Quartile4 th Quartile % Rank 99 Total Ret (37.84%) % Rank 81 Total Ret 23.29% % Rank 96 Total Ret 4.14% % Rank 59 Total Ret 14.20% % Rank 54 Total Ret 33.73% % Rank 91 Total Ret 3.67% % Rank 44 Total Ret 8.51% % Rank 86 Total Ret 2.16% % Rank 90 Total Ret 1.44% % Rank 78 Total Ret 12.16% % Rank 40 Total Ret (26.16%) % Rank 49 Total Ret 7.24% % Rank 77 Total Ret (43.89%) % Rank 66 Total Ret 31.68% % Rank 38 Total Ret 16.59% % Rank 69 Total Ret -4.45% % Rank 92 Total Ret -9.03% % Rank 2 Total Ret 33.77% % Rank 1 Total Ret 16.26% % Rank 3 Total Ret 20.22% % Rank 19 Total Ret (36.82%) % Rank 16 Total Ret 33.88% % Rank 18 Total Ret 11.60% % Rank 16 Total Ret 11.61% % Rank 3 Total Ret (14.51%) % Rank 14 Total Ret 44.32% % Rank 94 Total Ret 19.24% % Rank 5 Total Ret 3.85% % Rank 17 Total Ret 20.57% % Rank 10 Total Ret (34.77%)
  • Slide 16
  • 16 Source: Lipper, Inc. as of 12/31/11. Annual returns are based on calendar years. Indexes are unmanaged and do not take transaction costs or fees into consideration. It is not possible to invest directly in an index. Performance figures assume reinvestment of dividends and capital gains. This chart is for illustrative purposes only and does not represent the performance of any John Hancock fund. Large growth is represented by the Russell 1000 Growth Index, a market capitalization weighted index of securities in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values. Large value is represented by the Russell 1000 Value Index, a market capitalization-weighted index of securities in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. Small/Mid growth is represented by the Russell 2500 Growth Index which measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. Small/Mid value is represented by the Russell 2500 Value Index which measures the performance of those Russell 2500 companies with lower price-to- book ratios and lower forecasted growth values. International is measured by the MSCI EAFE Index, a market value-weighted, arithmetic average of the performance of more than 900 securities listed in several developed world markets, excluding the United States. Bonds are measured by the Barclays Capital U.S. Aggregate Bond Index, which includes U.S. government, corporate, and mortgage-backed securities with maturities up to 30 years. Cash represents the performance of the 3-month T-bill, published by the Federal Reserve. Diversified is represented by the average return of the six indexes above, excluding cash. It does not represent any specific index. Diversification does not guarantee against a loss. Past performance is no guarantee of future results. Overcoming the emotion of investing Annual returns of asset classes (2001 2011) Small/Mid Value -3.36% Cash 0.05% Large Cap Value 0.39% Small/Mid Growth -1.57% Large Cap Growth 2.64% International -11.73% Bond 7.84% Bond 6.97% Large Cap Growth 11.81% Small/Mid Growth 12.26% Large Cap Value 19.69% Large Cap Value -15.52% Large Cap Value 30.03% Large Cap Value 7.05% Small/Mid Growth 41.66% Small/Mid Value 24.82% Bond 10.25% Small/Mid Growth 46.31% Small/Mid Value 21.58% International 14.02% International 26.86% International 32.46% Large Cap Value 15.51% Small/Mid Value -9.87% International 39.17% Large Cap Value 16.49% Small/Mid Value 7.74% Small/Mid Value 20.18% Cash 0.14% Small/Mid Growth 14.59% Cash 0.15% International 8.21% International -15.66% Large Cap Growth 29.75% Large Cap Growth 6.30% Large Cap Growth 5.26% Large Cap Growth 9.07% Small/Mid Value 27.68% Small/Mid Growth 28.86% Large Cap Growth -27.88% Bond 4.10% Bond 4.34% Cash 3.07% Cash 4.67% Bond 5.93% Large Cap Growth 16.71% Small/Mid Growth -29.09% Cash 1.03% Cash 1.38% Bond 2.43% Bond 4.33% Large Cap Growth 37.21% Bond 6.54% Cash 1.61% Small/Mid Value 44.93% International 20.70% Small/Mid Growth 8.17% Large Cap Value 22.25% Small/Mid Growth 9.69% Large Cap Value -0.17% Cash 4.40% International 11.63% Small/Mid Value -7.27% Large Cap Value -36.85% Bond 5.24% Smal...

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