In the second quarter of 2025, the John Hancock Investment-Grade Bond Fund showcased a commendable performance, achieving a positive total return that modestly outstripped the Bloomberg U.S. Aggregate Bond Index. This index itself recorded a 1.21% gain for the quarter, bringing its year-to-date return to 4.02%. The fund's strategic asset allocation and responsive management played a crucial role in navigating market dynamics.
\nDuring this period, certain market segments experienced fluctuations; for instance, early April saw a dip in infrastructure-related equities due to apprehensions regarding the U.S. administration's tariff policies, though these assets later recovered. Despite such transient volatility, the fund's specific holdings in investment-grade corporate bonds, asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS) delivered strong returns, contributing significantly to its overall positive outcome. In a proactive move to mitigate heightened market volatility, the fund's management reduced its duration, shifting from a slight overweight position to a neutral stance on interest rate sensitivity. Furthermore, the fund sustained its overweight allocation in financial sector instruments, a decision underpinned by the belief in their ongoing attractive valuation relative to other sectors.
\nThis steadfast performance underscores the importance of informed investment strategies and adaptive management in navigating the complexities of financial markets. Through careful consideration of macroeconomic factors and diligent portfolio adjustments, investment vehicles can continue to offer value and stability to their participants, fostering confidence and enabling long-term financial growth and security for all.