International investing at John Hancock Investments
Investing outside the United States can help you expand portfolio opportunities while adding diversification potential. Trends now taking place in non-U.S. markets make the case for international investing even stronger.
The share of the global stock market represented by non-U.S. companies is large and growing. Yet many U.S. investors haven’t kept pace, resulting in portfolios that have a home country bias and leave nearly half the world’s equity opportunities on the table.
International equities are half of the global market
MSCI AC World Index, as of 6/30/18
Yet most individual investors allocate only a small percentage to international stocks
Average international equity allocation
Individual investor's portfolio
Endowment funds portfolio
International markets have periods of outperformance
Historically, non-U.S. stocks and U.S. stocks have alternated in cycles of performance, with one leading the other for an extended period of time before reversing.
The case for international investing remains strong
Growth and earnings remain strong
- Supported by broadly accommodative monetary policy, economic growth has remained positive across key markets, with six of the largest non-U.S. developed economies showing expansionary Purchasing Managers’ Index (PMI) readings, despite a recent slowdown in growth rates.
- We’ve also seen a sharp improvement in earnings expectations from non-U.S. companies, albeit off low levels.
Top 5 countries in the MSCI EAFE Index by market capitalization vs. the U.S.
Valuations and dividend yields are more attractive overseas
After lagging U.S. markets as a whole since the financial crisis of 2008–2009, the valuations of many international stocks, measured by forward P/E ratios, are lower than their counterparts in the United States, while their dividend yields are higher.
Key foreign currencies have strengthened versus the dollar
- Currency markets reflected the shift in economic momentum entering 2017, and the euro and other currencies rallied relative to the U.S. dollar.
- This reversal turned what had been a negative for dollar-denominated investment returns into a positive, as strength in foreign currencies is favorable for U.S. investors’ international equity returns after local currencies are translated into dollars.
Finding the best specialized manager for every fund we offer
Our multimanager approach puts us in a unique position to evaluate the skill sets, track records, and experience of today's portfolio managers, and our international lineup features a range of portfolios managed by some of the industry's best teams.
Explore our international equity funds
At John Hancock Investments, our international equity funds are designed to address a range of investor needs. We’ve offered international equity strategies to individual and institutional investors for more than 30 years, and today we oversee over $13 billion in international equities across a range of strategies, managed by some of the best specialized portfolio teams from around the world.
|TICKER||FUND NAME||MANAGED BY||MORNINGSTAR CATEGORY||USE FOR|
|JDVIX||Disciplined Value International Fund||Boston Partners||Foreign Large Blend||Core international holding|
|JTQIX||ESG International Equity Fund||Boston Common Asset Management||Foreign Large Growth||Opportunistic international holding|
|JEMMX||Emerging Markets Equity Fund||John Hancock Asset Management||Diversified Emerging Markets||International diversification|
|JEVIX||Emerging Markets Fund||Dimensional Fund Advisors||Diversified Emerging Markets||International diversification|
|JFGIX||Fundamental Global Franchise Fund||John Hancock Asset Management||World Large Stock||Concentrated global holding|
|JGEFX||Global Equity Fund||John Hancock Asset Management||World Large Stock||Concentrated global holding|
|JGYIX||Global Shareholder Yield Fund||Epoch Investment Partners||World Large Stock||Global dividend income|
|JCOIX||Greater China Opportunities Fund||John Hancock Asset Management||China Region||Focused emerging-market equity holding|
|HEQ||Hedged Equity & Income Fund||Wellington Management||Closed-End World Large Stock||Diversifying sources of income|
|GOGIX||International Growth Fund||Wellington Management||Foreign Large Growth||Core international holding|
|JSCIX||International Small Company Fund||Dimensional Fund Advisors||Foreign Small/Mid Blend||Growth opportunities and portfolio diversification|
|JIEEX||International Value Equity Fund||John Hancock Asset Management||Foreign Large Value||Core international holding|
|JHMD||Multifactor Developed International ETF||Dimensional Fund Advisors||Foreign Large Blend||Core international holding|
|JHEM||Multifactor Emerging Markets ETF||Dimensional Fund Advisors||Diversified Emerging Markets||Core international holding|
|HTY||Tax-Advantaged Global Shareholder Yield Fund||Multiple managers||Closed-End World Large Stock||Global tax-sensitive dividend income|
Investing involves risks, including the potential loss of principal. These products carry many individual risks, including some that are unique to each fund. Please see each fund's prospectus to learn all of the risks associated with each investment. Diversification does not guarantee a profit or eliminate the risk of a loss.