In the dynamic landscape of financial markets, understanding the performance drivers of investment vehicles is paramount. The John Hancock Disciplined Value Fund, specifically its Class I shares, delivered notable results in the second quarter of 2025. This period saw the fund achieve a return that surpassed its primary benchmark, the Russell 1000 Value Index. This success was not merely a matter of broad market uplift but was underpinned by specific strategic allocations and the discerning avoidance of certain holdings. Such a performance underscores the efficacy of a meticulously managed value-oriented strategy in navigating market fluctuations and seizing opportunities for investor benefit.
The second quarter of 2025 proved to be a pivotal period for the John Hancock Disciplined Value Fund. Class I shares recorded an impressive 6.59% return for the quarter, bringing its year-to-date performance to an identical figure. This significantly outpaced the Russell 1000 Value Index, which serves as the fund's benchmark, logging a 3.79% return for the same quarter and a 6.00% year-to-date return as of June 30. This outperformance highlights the fund's adept management in capitalizing on market conditions.
A notable aspect of the quarter's performance was the recovery of mid-cap value stocks. Following a sharp downturn in early April, triggered by Washington's unexpected announcement of an aggressive trade policy, these stocks rebounded to end the quarter in positive territory. This demonstrates the market's resilience and the fund's ability to maintain its course despite initial turbulence, indicating a robust strategy that can absorb shocks and capitalize on subsequent recoveries.
Among the individual contributors to the fund's strong showing, Oracle Corp., a prominent software company, stood out. Its performance was a significant positive factor for both its sector and the fund overall, demonstrating the impact of targeted investments in high-potential companies. Additionally, the fund's position in American Express Co. played a crucial role in its success. Furthermore, a deliberate decision to maintain a zero weighting in Berkshire Hathaway, Inc. also contributed positively to the fund's returns, showcasing the impact of active portfolio construction and risk management. This reflects a disciplined approach, where both inclusions and exclusions are carefully considered to optimize returns.
The fund's long-term performance metrics also reinforce its consistent value proposition since its inception on January 2, 1997. Over a ten-year horizon, the fund has generated an average annual total return of 9.75%, while its performance since inception stands at 9.12%. These figures attest to the fund's enduring capacity to deliver substantial value to its investors over extended periods, showcasing a track record of strategic insight and effective investment selection. The consistent positive returns, particularly when compared to its benchmark, underscore the skillful execution of its investment philosophy.