What Is the John Hancock Disciplined Value Fund’s Exposure to Retail?


Nov. 23 2015, Published 11:09 a.m. ET

YTD performance

The John Hancock Disciplined Value Fund-Class A (JVLAX) has returned -2.6% for the YTD period ending November 19, 2015. Meanwhile, its benchmark, the Russell 1000 Value, fell 3.9% in the same period. The Russell 1000 Consumer Staples Index rose 2.8% for the YTD period ending November 19, 2015. Meanwhile, the Russell 1000 Consumer Discretionary Index gained 7.1% in the same period.

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JVLAX’s retail exposure

JVLAX has 11.1% of its assets invested in retail, which comprises of the consumer discretionary sector with a weight of 8.2% and the consumer staples sector with a weight of 2.9%. Meanwhile, the consumer discretionary and consumer staples sectors form 6.6% and 5.8% of the fund’s benchmark, the Russell 1000 Value Index.

Consumer spending

Consumer spending is the amount of money spent by households. Consumer spending accounts for two-thirds of the US GDP (gross domestic product). The retail sector is directly affected by consumer spending in the economy. Retail investors are interested in these statistical measures, as consumer spending is directly related to retail companies’ profitability.

The US Bureau of Economic Analysis reported month-over-month growth in consumer spending by 0.1% in September, which was lower than a growth of 0.4% in August and 0.3% in July. Falling month-over-month growth in consumer spending has negatively impacted the JVLAX with 11.1% of its holdings in retail companies.

JVLAX’s retail stocks

In September 2015, JVLAX’s holdings in retail companies included Tyson Foods (TSN) with a 1.7% portfolio weight, Target (TGT) with a 1.7% portfolio weight, Liberty Global PLC – Class C (LBTYK) with a 1.6% portfolio weight, and Macy’s (M) with 0.6% portfolio weight.


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