Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 6.6% | 1.0% | 7.7% |
| 2025 |
|---|
| 7.7% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 6.6% | 1.0% | 7.7% |
| 2025 |
|---|
| 7.7% |
The John Hancock Bond Fund slightly underperformed its benchmark in Q4 2025 but outperformed for the full year with a 7.67% return. The managers strategically added to securitized credit positions, particularly non-agency residential MBS and non-traditional ABS sectors, believing these offered compelling risk-return profiles versus corporates. They reduced allocations to investment-grade and high-yield corporates due to very tight yield spreads relative to history. The fund maintained significant overweights in agency MBS, focusing on middle coupon stack securities for higher income and prepayment protection. Duration positioning remained neutral with a bias toward yield curve steepening through intermediate-term overweights. The Fed cut rates by 75 basis points in 2025, with two cuts in Q4. Looking ahead, managers expect continued Fed caution and increased volatility around policy uncertainty, but believe elevated longer-term yields will support fixed-income demand. They plan to continue adding value through bottom-up security selection and maintain their long-term investment orientation in an environment of stable credit fundamentals.
Focus on optimizing income through security selection in securitized credit while reducing corporate exposure due to tight spreads, maintaining neutral duration with yield curve steepening bias.
The managers expect the Fed will maintain a cautious, data-driven approach but anticipate increased volatility. They believe elevated longer-term yields will support fixed-income demand and stable credit fundamentals will allow continued value-add through security selection and long-term orientation.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 3 2026 | 2025 Q4 | AAL, BAC, DELL, F, FMCC, FNMA, JPM, WFC | Bonds, credit, duration, Fed policy, fixed income, Mortgage | - | The fund maintained significant overweight positions in agency MBS, focusing on middle coupon stack securities (4.0% to 5.5% coupons) for higher income and prepayment protection.… |
| Oct 19 2025 | 2025 Q3 | - | Bonds, credit, duration, high yield, Yield | - | Bond markets gained as Fed rate cuts supported risk assets and compressed spreads. The funds overweight to high-yield and securitized credit boosted returns, while Treasuries… |
| Jul 22 2025 | 2025 Q2 | - | Credit quality, duration, fixed income, income, rates | - | The letter highlights income generation and capital preservation in fixed income amid evolving rate expectations. Management discusses duration positioning and credit selection as key tools… |
| Mar 31 2025 | 2025 Q1 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Credit StressThe fund is responding to historically low credit spreads by reducing exposure to high yield and other lower-rated debt. They believe current spreads offer insufficient compensation for credit risk and increase the risk of permanent impairment of capital. The managers are downside-focused and do not share the market's optimism needed to justify such low spreads. |
Credit spreads High yield Credit risk Permanent impairment Risk compensation |
MortgageFalling interest rates and federal support for housing should drive a continued rebound in mortgage origination volumes, which should benefit mortgage originators and credit bureaus. FICO launched its new Direct Licensing Program for mortgage lending, which provides greater flexibility to monetize its intellectual property. |
Mortgage Origination Housing Credit Scoring Lending Real Estate | |
RatesFederal Reserve resumed rate-cutting cycle with first cut since December 2024, signaling resumption of easing. Expected three cuts of 25bps between now and first quarter 2026 as Fed responds to signs of weakness in US labor market. |
Fed Monetary Policy Labor Market Easing Liquidity | |
| 2025 Q3 |
Bonds |
|
CreditFund focuses on elevated carry in high yield credit markets with spreads remaining range bound below 300 basis points. Manager believes high yield credit is fundamentally strong but valuations are tight, particularly in higher quality BBs. Strategy emphasizes sourcing positions with higher income levels given limited price appreciation opportunities. |
High Yield Credit Spreads Carry Investment Grade | |
| 2025 Q2 |
Income |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| BAC | BAC, JNJ, JPM, and XOM were held in Miller/Howard portfolios as of December 31, 2025. |
| DELL | Companies currently expected to benefit from AI disruption (or at least the current phase of disruption) include data center-related companies (Oracle, Dell Technologies) |
| F | For insight into the real economy operating beneath this AI and data center boom, we must look elsewhere within the S&P 500, including bellwethers like Ford |
| FMCC | Fannie and Freddie shares more than tripled in 2025 as the Trump administration reiterated its commitment to an eventual privatization. We believe YTD share price declines greatly underestimate how quickly President Trump can act to drive a re-rating of shares and unveil a taxpayer asset worth ~$300 billion. |
| FNMA | Fannie and Freddie shares more than tripled in 2025 as the Trump administration reiterated its commitment to an eventual privatization. The administration has repeatedly emphasized three key objectives: Enhance home affordability by compressing the spread of mortgages over Treasuries, Demonstrate a near-term mark to market for the taxpayers' ownership in the GSEs, Maximize long-term value of the taxpayers' interest in Fannie and Freddie. |
| JPM | JPMorgan (JPM) has identified 42 AI-related stocks in the S&P 500, which today represent 45% of the index's market cap. They estimate that these stocks have accounted for 78% of S&P 500 returns, 66% of earnings growth, and 71% of capital spending growth since ChatGPT launched in November 2022. As it relates to the impact on the U.S. economy, JPM estimates tech sector capital spending contributed 40%-45% of U.S. GDP growth through the first 9 months of the year, up from less than 5% during the same period in 2023. |
| WFC | and money center banks Citigroup and Wells Fargo, all following strong performance |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||