John Hancock Funds Fundamental Global Franchise Fund Class NAV (0P0000W90V)

Overview

The fund described focuses on investing primarily in securities offered by franchise companies. It allocates at least 80% of its net assets, along with any borrowings intended for investment purposes, towards franchise businesses. This investment strategy indicates a strong inclination towards identifying and capitalizing on the potential of franchise models across various sectors.

In terms of global diversification, the fund commits to investing a significant portion of its assets in international markets. Specifically, under normal conditions, at least 40% of the fund's net assets are earmarked for investments in companies located outside the United States. This percentage may be adjusted to a minimum of 30% depending on the assessment of foreign market conditions and the valuations of foreign companies by the fund manager. The fund maintains a flexible stance towards geographical diversification in response to changing market dynamics.

Additionally, it is noted that the fund operates with a non-diversified status. This implies that while it may invest in a wide array of franchise companies, its investments could be concentrated in fewer securities than a diversified fund. This strategy might offer higher returns due to concentrated investments in high-performing franchises but also comes with increased risk exposure.

Products and Services

• Franchise Company Securities Investment

  — This product involves the allocation of at least 80% of the fund's assets towards securities issued by franchise companies. The objective is to tap into the growth potential and established market presence of franchises across various sectors, leveraging their business models for potential returns.

• International Market Investment

  — With an aim to diversify the investment portfolio, the fund strategically allocates a significant portion of its assets to foreign companies. Under normal market conditions, at least 40% of the fund’s assets are invested internationally, with a possible reduction to 30% based on market and valuation assessments. This approach enables the fund to explore opportunities in global markets and mitigate risks through geographical diversification.