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(John Hancock Emerging Markets Equity Fund - Classes A, C, I, R2, R4 and R6) | (John Hancock Emerging Markets Equity 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 growth.
<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. You may qualify for sales charge discounts on Class A shares if you and your family invest, or agree to invest in the future, at least $50,000 in the John Hancock family of funds. Intermediaries may have different policies and procedures regarding the availability of front-end sales charge waivers or CDSC waivers (See Appendix 1 - Intermediary sales charge waivers, which includes information about specific sales charge waivers applicable to the intermediaries identified therein). More information about these and other discounts is available from your financial representative and on pages 20 to 22 of this prospectus under "Sales charge reductions and waivers" or pages 155 to 159 of the fund's Statement of Additional Information under "Sales Charges on Class A, Class B, and Class C Shares."
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"> <b>Shareholder fees (%) (fees paid directly from your investment)</b></div>
Shareholder Fees - ­ - (John Hancock Emerging Markets Equity Fund) - USD ($)
Class A
Class C
Class I
Class R2
Class R4
Class R6
Maximum front-end sales charge (load) on purchases, as a % of purchase price 5.00% none none none none none
Maximum deferred sales charge (load) as a % of purchase or sale price, whichever is less 1.00% [1] 1.00% none none none none
Small account fee (for fund account balances under $1,000) ($) $ 20 $ 20 none none none none
[1] (on certain purchases, including those of $1 million or more)
<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 Emerging Markets Equity Fund)
Class A
Class C
Class I
Class R2
Class R4
Class R6
Management fee 0.95% 0.95% 0.95% 0.95% 0.95% 0.95%
Distribution and service (Rule 12b-1) fees 0.30% 1.00% none 0.25% 0.25% none
Service plan fee none none none 0.25% [1] 0.10% [1] none
Additional other expenses 0.19% 0.19% 0.20% 0.10% 0.10% 0.10%
Total other expenses 0.19% 0.19% 0.20% 0.35% 0.20% 0.10%
Total annual fund operating expenses 1.44% 2.14% 1.15% 1.55% 1.40% 1.05%
Contractual expense reimbursement [2] (0.01%) (0.01%) (0.01%) (0.01%) (0.11%) [3] (0.01%)
Total annual fund operating expenses after expense reimbursements 1.43% 2.13% 1.14% 1.54% 1.29% 1.04%
[1] "Service plan fee" has been restated to reflect maximum allowable fees.
[2] The advisor 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.
[3] The distributor contractually agrees to limit its Rule 12b-1 fees for Class R4 shares to 0.15%. This agreement expires on February 29, 2020, unless renewed by mutual agreement of the fund and the distributor 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 $10,000 investment for the time periods indicated and then, except as shown below, assuming you sell all of your shares at the end of those periods. The example assumes a 5% average annual return and that fund expenses will not change over the periods. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b>Sold</b></div>
Expense Example - (John Hancock Emerging Markets Equity Fund) - ­ - USD ($)
1 Year
3 Years
5 Years
10 Years
Class A 638 932 1,247 2,137
Class C 316 669 1,148 2,472
Class I 116 364 632 1,397
Class R2 157 489 844 1,845
Class R4 131 432 755 1,670
Class R6 106 333 578 1,282
<div style="font-size:10pt;padding-top:5pt;padding-bottom:0;padding-left:0;"><b>Not Sold</b></div>
Expense Example, No Redemption - (John Hancock Emerging Markets Equity Fund)
1 Year
3 Years
5 Years
10 Years
Class C | ­ | USD ($) 216 669 1,148 2,472
<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 50% 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 and equity-related securities of emerging-market issuers. The manager may consider, but is not limited to, the classifications by the World Bank, the International Finance Corporation, or the United Nations and its agencies in determining whether a country is an emerging- or a developed-market country. The fund seeks to invest in securities that the manager considers to be undervalued or otherwise offer good prospects for capital growth.
The fund intends to invest in equity securities listed on bona fide securities exchanges or actively traded on over-the-counter markets. Equity and equity-related securities include common stocks, preferred stocks, convertible securities, warrants, and other similar securities. The fund may also invest in other investment companies (including closed-end funds) and other pooled investment vehicles that also invest in developing or emerging market economies.
Fundamentals-based stock selection lies at the heart of the manager's investment process, which focuses on high quality companies within a diverse range of dynamic emerging economies. The manager seeks to invest in companies with strong assets that exhibit balance sheet strength, superior management, and high levels of free cash-flow to support a sustainable dividend payout. Although, there is no sector or geographical bias, the fund may focus its investments in a particular sector or sectors of the economy. The fund may invest in companies of any market capitalization.
Due to volatile conditions in emerging markets, the fund's investment process may result in a higher-than-average portfolio turnover ratio, which could increase transaction costs.
The fund may attempt to mitigate the risk of unintended currency fluctuations through the use of exchange-listed or over-the-counter financial derivatives instruments, including currency forwards, non-deliverable forwards, currency options, and index options. The fund may also enter into forward currency contracts to facilitate the settlement of foreign securities purchases, repatriation of foreign currency balances, or exchange of one currency to another. The fund may use derivatives such as futures contracts and options on futures contracts to gain market exposure on uninvested cash, pending investment in securities, or to maintain liquidity to pay redemptions.
<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 6 of the prospectus.
Credit and counterparty risk. The counterparty to an over-the-counter derivatives contract or a borrower of fund securities may not make timely payments or otherwise honor its obligations.
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.
Emerging-market risk. The risks of investing in foreign securities are magnified in emerging markets. Emerging-market countries may experience higher inflation, interest rates, and unemployment and greater social, economic, and political uncertainties than more developed countries.
Greater China risk. Investments in the Greater China region may be subject to less developed trading markets, acute political risks such as possible negative repercussions resulting from China's relationship with Taiwan or Hong Kong, and restrictions on monetary repatriation or other adverse government actions. For example, a government may restrict investment in companies or industries considered important to national interests, or intervene in the financial markets, such as by imposing trading restrictions, or banning or curtailing short selling. A small number of companies and industries represent a relatively large portion of the Greater China market.
Hong Kong Stock Connect Program (Stock Connect) risk. China A-Shares listed and traded on certain Chinese stock exchanges through Stock Connect, a mutual market access program designed to, among other things, enable foreign investment in the People's Republic of China (PRC) via brokers in Hong Kong, are subject to a number of restrictions imposed by Chinese securities regulations and local exchange listing rules. Because Stock Connect was established in November 2014, developments are likely, which may restrict or otherwise affect the fund's investments or returns. Furthermore, any changes in laws, regulations and policies of the China A-Shares market or rules in relation to Stock Connect may affect China A-Share prices. These risks are heightened by the underdeveloped state of the PRC's investment and banking systems in general.
Equity securities risk. The price of equity securities may decline due to changes in a company's financial condition or overall market conditions. Growth company securities may fluctuate more in price than other securities because of the greater emphasis on earnings expectations. Securities the manager believes are undervalued may never realize their full potential value, and in certain markets value stocks may underperform the market as a whole.
Financial services sector risk. Financial services companies can be significantly affected by economic, market, and business developments, borrowing costs, interest-rate fluctuations, competition, and government regulation, among other factors.
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. The risks of investing in foreign securities are magnified in emerging markets.
Hedging, derivatives, and other strategic transactions risk. Hedging, derivatives, and other strategic transactions may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Risks of these transactions are different from and possibly greater than risks of investing directly in securities and other traditional instruments. Under certain market conditions, derivatives could become harder to value or sell and may become subject to liquidity risk (i.e., the inability to enter into closing transactions). Regulatory changes in derivative markets could impact the cost of or the fund's ability to engage in derivative transactions. Derivatives and other strategic transactions that the fund intends to utilize include: foreign currency forward contracts, futures contracts, options, options on futures, and currency options. Foreign currency forward contracts, futures contracts, and options generally are subject to counterparty risk. Derivatives associated with foreign currency transactions are subject to currency risk.
High portfolio turnover risk. Trading securities actively and frequently can increase transaction costs (thus lowering performance) and taxable distributions.
Investment company securities risk. A fund bears underlying fund fees and expenses indirectly.
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.
Liquidity risk. The extent (if at all) to which a security may be sold or a derivative position closed without negatively impacting its market value may be impaired by reduced market activity or participation, legal restrictions, or other economic and market impediments.
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.
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. To the extent that a fund invests in securities of companies in the financial services sector, the fund may be significantly affected by economic, market, and business developments, borrowing costs, interest-rate fluctuations, competition, and government regulation, among other factors, impacting that sector.
Small and mid-sized company risk. Small and mid-sized companies are generally less established and may be more volatile than larger companies. Small and/or mid-capitalization securities may underperform the market as a whole.
Warrants risk. The prices of warrants may not precisely reflect the prices of their underlying securities. Warrant holders do not receive dividends or have voting or credit rights. A warrant ceases to have value if not exercised prior to its expiration date.
<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 800-225-5291 (Class A and Class C), Monday to Thursday, 8:00 A.M.—7:00 P.M., and Friday, 8:00 A.M.—6:00 P.M., Eastern time, or 888-972-8696 (Class I, Class R2, Class R4, and Class R6) between 8:30 A.M. and 5:00 P.M., Eastern time, on most business days.
Please note that after-tax returns (shown for Class A 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 A (sales charges are not reflected in the bar chart and returns would have been lower if they were) </b></div>
Bar Chart
Best quarter: Q1 '17, 11.74%
Worst quarter: Q4 '18, -10.86%
<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 Emerging Markets Equity Fund) - ­
1 Year
Since Inception
Inception Date
Class A (21.33%) (0.88%) Jun. 16, 2015
Class A | after tax on distributions (22.54%) (1.35%) Jun. 16, 2015
Class A | after tax on distributions, with sale (11.60%) (0.56%) Jun. 16, 2015
Class C (18.51%) (0.13%) Jun. 16, 2015
Class I (16.91%) 0.84% Jun. 16, 2015
Class R2 (17.05%) 0.68% Jun. 16, 2015
Class R4 (17.03%) 0.77% Jun. 16, 2015
Class R6 (16.88%) 0.94% Jun. 16, 2015
MSCI Emerging Markets Index (reflects no deduction for fees, expenses, or taxes) (14.58%) 2.31% Jun. 16, 2015