The JVLAX fund’s return compared to benchmark
The John Hancock Disciplined Value Fund (JVLAX) returned 10.1% for the monthly period ending October 29, 2015. However, it fell 4.3% for the one-month period ending September 2015. Meanwhile, the benchmark for the fund, the Russell 1000 Value Index, fell 3% in the same period. The JVLAX fund has an exposure of 9.5% to the energy sector.
Negative impact of energy sector
Since the energy sector—as tracked by the Russell 1000 Energy index—fell 19.1% for the quarter ending September 2015, the overall return for the third quarter was negatively impacted, and the JVLAX fund returned -9.1% for the period ending September.
The JVLAX fund fell by 4.5% for the one-year period ending September 2015. It posted positive returns of 12.4% for the five-year period and 6.8% for the ten-year period ending September 2015. Meanwhile, the Russell 1000 Value Index gained 12.3% in the last five years, and 5.7% in the last ten years ending September 2015.
Top holding performance
The top ten holdings of the JVLAX fund make up 32.7% of the fund’s net assets. Its holdings include Berkshire Hathaway (BRK), with a portfolio weight of 4.4%. The BRK stock fell by 3.6% in September 2015. Meanwhile, Wells Fargo (WFC), with a portfolio weight of 3.9%, fell by 3.7% in September 2015. Capital One Financial Corporation (COF), forming 3.1% of the portfolio’s net assets, fell by 6.7% in September. Pfizer (PFE), making up 3% of the fund’s net assets, fell by 2.5% in September. Occidental Petroleum (OXY), making up 2.6% of fund’s net assets, fell by 8.4% for the period ending September.
The JVLAX fund has portfolio exposure of 9.5% in the energy sector. The return was negatively impacted by the fall in Brent crude price, not to mention the fall in the number of rigs in September.