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(John Hancock ESG Large Cap Core Fund - Classes R2 and R4) | (John Hancock ESG Large Cap Core Fund)
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b> INVESTMENT OBJECTIVE </b></div>
To seek long-term capital appreciation.
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b> FEES AND EXPENSES </b></div>
This table describes the fees and expenses you may pay if you buy and hold shares of the fund.
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"> <b>Shareholder fees (%) (fees paid directly from your investment)</b></div>
Shareholder Fees - ­ - (John Hancock ESG Large Cap Core Fund)
Class R2
Class R4
Maximum front-end sales charge (load) none none
Maximum deferred sales charge (load) none none
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"> <b>Annual fund operating expenses (%) (expenses that you pay each year as a percentage of the value of your investment)</b></div>
Annual Fund Operating Expenses - ­ - (John Hancock ESG Large Cap Core Fund)
Class R2
Class R4
Management fee 0.75% 0.75%
Distribution and service (Rule 12b-1) fees 0.25% 0.25%
Service plan fee 0.25% 0.10%
Additional other expenses [1] 0.46% 0.46%
Total other expenses 0.71% 0.56%
Total annual fund operating expenses 1.71% 1.56%
Contractual expense reimbursement [2] (0.39%) (0.39%)
Total annual fund operating expenses after expense reimbursements 1.32% 1.17%
[1] "Other expenses," such as expected transfer agency expenses, have been estimated for the first year of operations of the fund's Class R2 and Class R4 shares.
[2] The advisor contractually agrees to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.81% of average daily net assets of the fund. For purposes of this agreement, "expenses of the fund" means all fund expenses, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund's business, (e) class-specific expenses, (f) borrowing costs, (g) prime brokerage fees, (h) acquired fund fees and expenses paid indirectly, and (i) short dividend expense. This agreement expires on February 29, 2020, unless renewed by mutual agreement of the advisor and the fund based upon a determination that this is appropriate under the circumstances at that time. The advisor also contractually agrees to waive a portion of its management fee and/or reimburse expenses for the fund and certain other John Hancock funds according to an asset level breakpoint schedule that is based on the aggregate net assets of all the funds participating in the waiver or reimbursement. This waiver is allocated proportionally among the participating funds. During its most recent fiscal year, the fund's reimbursement amounted to 0.01% of the fund's average daily net assets. This agreement expires on June 30, 2020, unless renewed by mutual agreement of the fund and the advisor based upon a determination that this is appropriate under the circumstances at that time.
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b> EXPENSE EXAMPLE </b></div>
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. Please see below a hypothetical example showing the expenses of a $10,000 investment for the time periods indicated and then assuming you sell all of your shares at the end of those periods. The example assumes a 5% average annual return and that fund expenses will not change over the periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Expense Example - (John Hancock ESG Large Cap Core Fund) - ­ - USD ($)
1 Year
3 Years
5 Years
10 Years
Class R2 134 501 892 1,987
Class R4 119 454 813 1,823
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b> PORTFOLIO TURNOVER </b></div>
The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During its most recent fiscal year, the fund's portfolio turnover rate was 22% of the average value of its portfolio.
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b> PRINCIPAL INVESTMENT STRATEGIES </b></div>
Under normal market conditions, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of large-capitalization companies or sectors that meet the manager's sustainability criteria. The fund considers large-capitalization companies to be those companies in the capitalization range of the S&P 500 Index, which was approximately $2.31 billion to $785.03 billion as of December 31, 2018. Equity securities include common and preferred stocks and their equivalents. The manager seeks companies meeting its sustainability criteria with high quality characteristics including strong environmental, social, and governance (ESG) records.
The manager employs a bottom-up financial analysis that includes a review of ESG issues and how they may impact stock valuation or performance. ESG factors reflect a variety of key sustainability issues that can influence company risks and opportunities and span a range of metrics including board diversity, climate change policies, and supply chain and human rights policies. Companies that meet the manager's ESG requirements or sustainability criteria typically have strong sustainability data and policy reporting, for example publishing a comprehensive corporate sustainability report. The fund may also invest up to 20% of its total assets in the equity securities of foreign issuers, including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs). The fund may focus its investments in a particular sector or sectors of the economy. The manager may sell stocks for several reasons, including when the stock no longer meets the manager's ESG or sustainability criteria, or when the stock declines in value and no longer reflects the manager's investment thesis. The fund will not invest in any companies with material exposure to agricultural biotechnology, coal mining, hard rock mining, nuclear power, tar sands, tobacco, or weapons/firearms. The fund also will not invest in any companies with major recent or ongoing controversies involving animal welfare, environmental, governance, human rights, product safety, or workplace matters.
The manager employs active shareowner engagement to raise environmental, social, and governance issues with the management of select portfolio companies, and may file shareholder proposals on behalf of the fund. Through this effort, the manager seeks to encourage company managements toward greater transparency, accountability, disclosure, and commitment to ESG issues.
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b> PRINCIPAL RISKS </b></div>
An investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Many factors affect performance, and fund shares will fluctuate in price, meaning you could lose money. The fund's investment strategy may not produce the intended results.
During periods of heightened market volatility or reduced liquidity, governments, their agencies, or other regulatory bodies, both within the United States and abroad, may take steps to intervene. These actions, which could include legislative, regulatory, or economic initiatives, might have unforeseeable consequences and could adversely affect the fund's performance or otherwise constrain the fund's ability to achieve its investment objective.
The fund's main risks are listed below in alphabetical order. Before investing, be sure to read the additional descriptions of these risks beginning on page 5 of the prospectus.
Cybersecurity and operational risk. Cybersecurity breaches may allow an unauthorized party to gain access to fund assets, customer data, or proprietary information, or cause a fund or its service providers to suffer data corruption or lose operational functionality. Similar incidents affecting issuers of a fund's securities may negatively impact performance. Operational risk may arise from human error, error by third parties, communication errors, or technology failures, among other causes.
Economic and market events risk. Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth, may at times result in unusually high market volatility, which could negatively impact performance. Reduced liquidity in credit and fixed-income markets could adversely affect issuers worldwide. Banks and financial services companies could suffer losses if interest rates rise or economic conditions deteriorate.
Equity securities risk. The price of equity securities may decline due to changes in a company's financial condition or overall market conditions.
Foreign securities risk. Less information may be publicly available regarding foreign issuers. Foreign securities may be subject to foreign taxes and may be more volatile than U.S. securities. Currency fluctuations and political and economic developments may adversely impact the value of foreign securities. Depositary receipts are subject to most of the risks associated with investing in foreign securities directly because the value of a depositary receipt is dependent upon the market price of the underlying foreign equity security. Depositary receipts are also subject to liquidity risk.
Information technology risk. Information technology companies can be significantly affected by rapid obsolescence, short product cycles, competition, and government regulation, among other factors. Investments in the technology sector may be susceptible to heightened risk of cybersecurity breaches, which may allow an unauthorized party to gain access to personally identifiable information and other customer data.
Large company risk. Larger companies may grow more slowly than smaller companies or be slower to respond to business developments. Large-capitalization securities may underperform the market as a whole.
Preferred and convertible securities risk. Preferred stock dividends are payable only if declared by the issuer's board. Preferred stock may be subject to redemption provisions. The market values of convertible securities tend to fall as interest rates rise and rise as interest rates fall. Convertible preferred stock's value can depend heavily upon the underlying common stock's value.
Responsible investing risk. Investing primarily in responsible investments carries the risk that the fund may underperform funds that do not utilize a responsible investment strategy.
Sector risk. When a fund focuses its investments in certain sectors of the economy, its performance may be driven largely by sector performance and could fluctuate more widely than if the fund were invested more evenly across sectors.
Sustainability (ESG) policy risk. The fund's ESG policy could cause it to perform differently compared to similar funds that do not have such a policy.
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b> PAST PERFORMANCE </b></div>
The following information illustrates the variability of the fund's returns and provides some indication of the risks of investing in the fund by showing changes in the fund's performance from year to year and by showing how the fund's average annual returns compared with a broad-based market index. Past performance (before and after taxes) does not indicate future results. All figures assume dividend reinvestment. Performance information is updated daily, monthly, and quarterly and may be obtained at our website, jhinvestments.com, or by calling 888-972-8696 between 8:30 A.M. and 5:00 P.M., Eastern time, on most business days.
A note on performance
Class C shares commenced operations on June 6, 2016. Because Class R2 and Class R4 shares of the fund had not commenced operations as of the date of this prospectus, the returns shown are those of Class C shares, except that they do not include sales charges and would be lower if they did. Returns for Class R2 and Class R4 shares would have been substantially similar to returns of Class C shares because each share class is invested in the same portfolio of securities and returns would differ only to the extent that expenses of the classes are different.
Please note that after-tax returns (shown for Class R2 shares only) reflect the highest individual federal marginal income-tax rate in effect as of the date provided and do not reflect any state or local taxes. Your actual after-tax returns may be different. After-tax returns are not relevant to shares held in an IRA, 401(k), or other tax-advantaged investment plan. After-tax returns for other share classes would vary.
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b>Calendar year total returns (%)—Class R2</b></div>
Bar Chart
Best quarter: Q3 '18, 7.88%
Worst quarter: Q4 '18, -11.37%
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b>Average annual total returns (%)—as of 12/31/18 </b></div>
Average Annual Total Returns - (John Hancock ESG Large Cap Core Fund) - ­
1 Year
Since Inception
Inception Date
Class R2 (0.97%) 7.44% Jun. 06, 2016
Class R2 | after tax on distributions (1.37%) 7.16% Jun. 06, 2016
Class R2 | after tax on distributions, with sale (0.27%) 5.74% Jun. 06, 2016
Class R4 (0.97%) 7.44% Jun. 06, 2016
S&P 500 Index (reflects no deduction for fees, expenses, or taxes) (4.38%) 9.32% Jun. 06, 2016