John Hancock Global Shareholder Yield Fund International Equity
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Annual report John Hancock Global Shareholder Yield Fund International equity March 31, 2021 A message to shareholders Dear shareholder, The global stock markets started the period with a sharp decline brought on by the outbreak of the COVID-19 pandemic. While many governments enacted various stimulus efforts, the volatility continued as the number of infected individuals rose during the summer and early fall. A contentious election cycle in the United States caused some investors to seek out safe havens, but after a resolution—and with multiple vaccines providing encouraging news about containing the virus—the markets closed out the 12 months ended March 31, 2021, with strong gains. Despite the overall good news, there are still obstacles. Some economies may have reopened too early, the pace of vaccinations varies widely from country to country, and many industries will take time to recover from the losses suffered. In these uncertain times, your financial professional can assist with positioning your portfolio so that it’s sufficiently diversified to help meet your long-term objectives and to withstand the inevitable bouts of market volatility along the way. On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us. Sincerely, Andrew G. Arnott President and CEO, John Hancock Investment Management Head of Wealth and Asset Management, United States and Europe This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com. John Hancock Global Shareholder Yield Fund Table of contents 2 Your fund at a glance 4 Manager’s discussion of fund performance 6 A look at performance 8 Your expenses 10 Fund’s investments 14 Financial statements 18 Financial highlights 24 Notes to financial statements 34 Report of independent registered public accounting firm 35 Tax information 36 Statement Regarding Liquidity Risk Management 38 Trustees and Officers 42 More information ANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND 1 Your fund at a glance INVESTMENT OBJECTIVE The fund seeks to provide a high level of income as its primary objective. Capital appreciation is a secondary investment objective. AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/2021 (%) Class A shares (without sales charge) MSCI World Index Morningstar world large stock fund category average 55.93 54.03 40.22 12.81 13.36 12.81 11.81 9.88 8.91 6.45 6.22 6.92 1 year 3 year 5 year 10 year The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns. The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus. 2 JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS Developed-marked equities regained positive momentum Most global developed-market stocks posted sharply positive returns, as the resumption of economic growth in the wake of the coronavirus pandemic provided support for equities. The fund trailed its benchmark, the MSCI World Index The fund underperformed owing in part to the negative impact from positioning in the utilities sector and stock selection in the communication services sector. Security selection in selected sectors aided relative performance Stock selection in the materials and information technology sectors were contributors. SECTOR COMPOSITION AS OF 3/31/2021 (% of net assets) Financials 15.0 Information technology 14.9 Health care 12.3 Consumer staples 10.8 Utilities 9.3 Industrials 8.6 Communication services 7.9 Consumer discretionary 6.6 Materials 4.9 Energy 4.8 Real estate 3.3 Short-term investments and other 1.6 Notes about risk The fund is subject to various risks as described in the fund’s prospectus. The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, which may lead to less liquidity in certain instruments, industries, sectors or the markets generally, and may ultimately affect fund performance. For more information, please refer to the “Principal risks” section of the prospectus. ANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND 3 Manager’s discussion of fund performance What were the main drivers of global developed-market equity performance during the 12 months ended March 31, 2021? Global developed-market stocks staged a powerful recovery rally, rebounding sharply throughout most of the period in the wake of an early 2020 selloff triggered by the COVID-19 pandemic. Some equity indexes climbed to record highs, and many companies in the information technology and communications services sectors benefited from the work-from-home economy, generating strong returns. Companies in cyclical sectors that tend to closely track shifts in the economic environment also posted strong gains, as vaccine development and distribution led to the gradual reopening of previously restricted economic activities. Traditionally defensive sectors such as utilities and consumer staples lagged. Fiscal and monetary support launched in response to the pandemic also provided support. On the fiscal side, exceptionally large federal spending bills were enacted in the United States, Europe, and Asia. Central banks provided additional monetary support. However, long-term interest rates rose sharply toward the end of the period amid heightened concerns about inflation. TOP 10 HOLDINGS TOP 10 COUNTRIES AS OF 3/31/2021 (% of net assets) AS OF 3/31/2021 (% of net assets) Allianz SE 1.8 United States 56.1 AbbVie, Inc. 1.7 Canada 7.9 Taiwan Semiconductor Germany 7.8 Manufacturing Company, Ltd., ADR 1.7 United Kingdom 6.9 Microsoft Corp. 1.7 France 5.3 Nutrien, Ltd. 1.7 Italy 3.3 Samsung Electronics Company, Ltd., Japan 2.7 GDR 1.7 Switzerland 2.4 Verizon Communications, Inc. 1.6 South Korea 2.0 Iron Mountain, Inc. 1.6 Taiwan 1.7 KLA Corp. 1.6 TOTAL 96.1 IBM Corp. 1.5 TOTAL 16.6 Cash and cash equivalents are not included. Cash and cash equivalents are not included. 4 JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | ANNUAL REPORT How did the fund perform? MANAGED BY The fund underperformed the benchmark. William W. Priest, CFA John Tobin, Ph.D., CFA Through most of the first half of the Kera Van Valen, CFA period, benchmark performance leadership Michael A. Welhoelter, CFA was dominated by a handful of mega-cap stocks in the information technology, consumer discretionary, and communication services sectors—companies in which the fund generally had limited exposure. Relative performance improved later in the period, as increased optimism over the reopening of economic activities produced a shift in investor sentiment and market leadership. At the sector level, the fund’s overweight in utilities was a detractor, as the sector was the benchmark’s weakest performer. Stock selection in the utilities sector and stock picking in the communication services sector also weighed on results. On the positive side, selection in the materials, information technology, and real estate sectors contributed. Positions in utility firms FirstEnergy Corp. and CenterPoint Energy, Inc. were among the detractors. Shares of U.S.-based FirstEnergy fell after the U.S.-based utility holding company received federal subpoenas in connection with a political corruption investigation involving energy-related state legislation in Ohio. We subsequently sold the fund’s position during the period. Shares of CenterPoint Energy, another U.S.-based power provider, dropped on weaker commercial and industrial electricity demand during the pandemic. Two positions that had the a positive impact on relative performance were Taiwan Semiconductor Manufacturing Company, Ltd., and Texas Instruments, Inc. Both companies saw their shares rise on strong semiconductor demand amid capacity constraints. The views expressed in this report are exclusively those of Kera Van Valen, CFA, Epoch Investment Partners, Inc., and are subject to change. They are not meant as investment