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Flexibility Serves This Fund Well

John Hancock Strategic Income Opportunities Fund's strategy has a lot of moving parts, but the experienced team has executed it well through various markets, says Morningstar's Sumit Desai.


We recently initiated coverage of John Hancock Strategic Income Opportunities with a Morningstar Analyst Rating of Silver.

This $5.6 billion multisector bond fund is led by Dan Janis and senior managers Tom Goggins and Kisoo Park. The team earns a Positive People score because the experience that each manager has is well-suited for this fund’s strategy.

The fund’s process revolves around sector rotation. The team has the flexibility to invest in almost every fixed-income asset class, including emerging-markets and high-yield bonds. This flexibility allows the team to allocate capital to the sectors they find most attractive while avoiding riskier or overpriced markets.

Janis and the team also actively manage the fund’s currency risk, typically deciding whether or not to hedge foreign exposure back to the U.S. dollar on a case-by-case basis. Janis and Park both have extensive experience managing currency exposure, and the team believes this gives them an edge in these markets.

The team has executed its strategy well over time and through various market environments. Since the fund’s April 28, 2006, inception through March 31, 2016, its 6.8% annualized return ranks fourth out of 36 distinct funds in the multisector bond Morningstar Category.

Sumit Desai, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.