JOHN HANCOCK INVESTMENTS - JOHN HANCOCK TAX-ADVANTAGED GLOBAL SHAREHOLDER YIELD FUND 
By We believe that recent unprecedented actions by the Federal Reserve and U.S. government -- including the proposed purchase of hundreds of billions of dollars worth of distressed mortgage-backed securities -- should be sufficient to stave off a systemic collapse. In addition, we anticipate similar policies being pursued across a number of other countries to alleviate economic and financial difficulties abroad.
Against that backdrop, we believe the investment outlook is a positive one for long-term investors, but perhaps not short-term traders. If one is a longer-term investor who buys good businesses at reasonable prices, the events of recent weeks should not deter you. Equity yields dwarf bond yields by a factor of at least two to one, even allowing for a decline in corporate earnings next year.
On the other hand if one's time horizon is shorter term like that of a trader, that world just got worse. Volatility is higher, leverage is less available, and the risk per unit of return advertised just went through the roof. The outlook for many hedge funds has deteriorated as liquidation notices from investors soar precisely at the same time they are forced to deleverage their portfolio because of unprecedented volatility in the capital markets.
In this environment, John Hancock Tax-Advantaged Global Shareholder Yield
Fund's (NYSE: HTY) free-cash-flow methodology has never seemed so apt. The
Fund had little exposure to the troubled financial sector because of our
emphasis on transparency of financial statements (3% of portfolio assets
versus 22% for the S&P/Citigroup Broad Market Index-World Equity Index as of
In addition, the Fund's global scope allows us to capitalize on the best investment opportunities regardless of where they are in the world. And although we may very well be entering a global recession over the next year, as the deleveraging effects from the financial sector impact the real economy through higher unemployment and lower growth in personal income, there are many sectors and companies that will continue to prosper. Indeed, the pace of globalization may slow, but its favorable effects on productivity, profitability and inflation will continue.
As a result, we believe the Fund is well positioned in a difficult market. What's more, we think the Fund's investment process and philosophy are likely to lead to outperformance in a world that is destined to become less trading centric, employ less leverage and return to identifying a good business at a reasonable price.
About John Hancock Funds
The
John Hancock Financial Services is a unit of Manulife Financial
Corporation, a leading Canadian-based financial services group serving
millions of customers in 19 countries and territories worldwide. Operating as
Manulife Financial in
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.
The performance data contained within this press release represents past
performance, which does not guarantee future results. Performance, especially
for short time periods, should not be the sole factor in making your
investment decision. Statements in this press release that are not historical
facts are forward-looking statements as defined by
SOURCE John Hancock Funds
