U.S. equities experienced a robust upward trend throughout the third quarter of 2025, ultimately closing on a strong note, which effectively mitigated earlier intermittent market downturns and heightened periods of fluctuation. The John Hancock Fundamental Large Cap Core Fund's strategic sector allocations, especially its reduced exposure to the information technology, energy, and healthcare sectors, led to an underperformance compared to the broader S&P 500 Index during this period. A notable factor in this comparative underperformance was the fund's limited investment in NVIDIA Corp., a dominant entity within the artificial intelligence chip manufacturing industry.
In response to market dynamics and to optimize future returns, the fund strategically reallocated its capital. Proceeds from existing holdings were channeled into new investments across the consumer discretionary, communication services, information technology, and healthcare sectors. This tactical adjustment reflects the fund management team's ongoing commitment to exploring diverse growth avenues and maintaining a relatively balanced investment posture, thereby positioning the fund to harness opportunities across the entire investment style spectrum.
The proactive management of the John Hancock Fundamental Large Cap Core Fund underscores a dedication to navigating complex market landscapes with foresight and adaptability. By continuously evaluating sector exposures and making informed adjustments, the fund aims to deliver long-term value to its investors. This approach not only addresses past performance influences but also strategically positions the fund for sustained growth and resilience in an evolving global economy, demonstrating a commitment to prudent financial stewardship and dynamic investment strategies.
