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Name Title John Hancock Investments Date

Name Title John Hancock Investments Date. Three things to know about market volatility. 1. We are going to live with it for a while. 2. A traditional asset mix was no match for it in 2008. 3. Cash is not the answer for long-term investors. We are going to live with it for a while. 1.

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Name Title John Hancock Investments Date

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  1. Name Title John Hancock Investments Date

  2. Three things to know about market volatility 1 • We are going to live with it for a while 2 • A traditional asset mix was no match for it in 2008 3 • Cash is not the answer for long-term investors

  3. We are going to live with it for a while 1 The level of stock market volatility in recent years is unprecedented S&P 500 Index, 1950–2016 (trading days per year with greater than +/–2% returns) Lehman Brothers bankruptcy Enron, WorldCom bankruptcies European sovereign debt crisis begins September 11 terrorist attacks Black Monday stock market crash Unemployment hits 10% President Kennedy assassinated Tech bubble bursts President Nixon resigns Korean War begins Long-Term Capital Management collapse, President Clinton impeached U.S. debt downgraded Oil crisis Warsaw Pact signed Soviets launch Sputnik Asian currency crisis Cuban missile crisis Iran hostage crisis Vietnam War escalates 2016 RECESSION 7/53–5/54 RECESSION 8/57–4/58 RECESSION 4/60–2/61 RECESSION 12/69–11/70 RECESSION 11/73–3/75 RECESSION 1/80–7/80 RECESSION 7/81–11/82 RECESSION 7/90–3/91 RECESSION 3/01–11/01 RECESSION 12/07–6/09 Source: FactSet, John Hancock Investments, as of 2015. It is not possible to invest directly in an index. Please see slides 14 and 15 for index and term definitions. Past performance does not guarantee future results.

  4. 2 A traditional asset mix was no match for it in 2008 • Nowhere to hide Total returns by asset class (2008) U.S.bonds 0 TIPS –10 –20 High-yieldbonds –30 Bankloans U.S.stocks U.S.realestate –40 Int’lstocks Globalreal estate Naturalresources Int’lsmallcap –50 Emergingmarkets –60 Source: FactSet, as of 2015. Please see slides 14 and 15 for index and term definitions. Diversification does not guarantee a profit or eliminate the risk of a loss.

  5. 3 Cash is not the answer for long-term investors • How long does it take to recover from losses? Source: FactSet, as of 2016. For illustrative purposes only.

  6. Half of the biggest market swings since 1950 occurred in the past dozen years • Investors face a choice Double-down Try to rebuild account values through more aggressive strategies Retreat Preserve assets with ultraconservative— and low return—investments Take advantage of investments and strategies to pursue positive returns with less volatility Invest smarter Since 1950, 23 of the top 50 daily gains and 27 of the top 50 daily losses in the S&P 500 Index occurred between 2004 and 2015. Please see slides 14 and 15 for index and term definitions.

  7. Consider alternatives to traditional markets • Alternatives have generated returns independent of traditional markets Growth of $100,000 through various market cycles Source: Morningstar Direct, as of 3/31/17. The diversified alternatives portfolio is represented by an equal-weighted blend of all nine alternative categories shown in the chart. Please see slides 14 and 15 for index and term definitions. It is not possible to invest directly in an index. Diversification does not guarantee a profit or eliminate the risk of a loss. Standard deviation measures performance fluctuation, may not be indicative of future risk, and is not a predictor of returns. Correlation is a statistical measure that describes how investments move in relation to each other, which ranges from –1.00 to 1.00. The closer the number is to 1.00 or –1.00, the more closely the two investments are related. The chart is for illustrative purposes only and does not represent the performance of any John Hancock fund. Past performance does not guarantee future results.

  8. The benefits of being “different” • Many alternative assets and strategies have shown low correlation to stocks • Correlation Source: Morningstar Direct, as of 3/31/17. Please see slides 14 and 15 for index and term definitions. It is not possible to invest directly in an index. Diversification does not guarantee a profit or eliminate the risk of a loss. Past performance does not guarantee future results.

  9. The average university endowment had a 53% allocation to alternative investments in 2016 • Endowment asset allocation in 2016 • Survey of 805 universities What institutional investors have known for some time Defined benefit plans, university endowments, and other institutional investors have used alternatives for years as a way to help: 53% Alternative strategies • Manage volatility • Make their annual payouts to retirees • Build assets 19% International equities 16% Domestic equities 8% Fixed income 4% Short-term securities Source: National Association of College and University Business Officers, 2016.

  10. Adding alternatives can help dampen portfolio volatility • A portfolio that included alternatives produced higher risk-adjusted returns • Performance results since 2000 Traditional portfolio Traditional portfolio plus alternatives Stocks Bonds Diversified alternatives Source: FactSet, Morningstar Direct, as of 3/31/17. Diversified alternatives are represented by an equal-weighted blend of all nine alternative categories shown on slides 7 and 8. Please see slides 14 and 15 for index and term definitions. It is not possible to invest directly in an index. Performance figures assume reinvestment of dividends and capital gains. These chart are for illustrative purposes only and does not represent the performance of any John Hancock fund. Diversification does not guarantee a profit or eliminate the risk of a loss. Past performance does not guarantee future results. Sharpe ratio is a measure of excess return per unit of risk, as defined by standard deviation. A higher Sharpe ratio suggests better risk-adjusted performance. Standard deviation measures performance fluctuation—generally, the higher the standard deviation, the greater the expected volatility.

  11. Investing in alternatives with John Hancock Investments 1 Performance information prior to 12/20/10 for John Hancock Alternative Asset Allocation Fund reflects an allocation to a different mix of underlying funds and would have been different if the fund had been allocated to its current mix of underlying funds. 2 Represents the effect of a fee waiver and/or expense reimbursement through 12/31/18. The advisor has contractually agreed to reduce its management fee and/or make payment to the fund in an amount equal to the amount by which other expenses of the fund exceed 0.04% of the average annual net assets (on an annualized basis) of the fund. “Other expenses” means all of the expenses of the fund, excluding advisory fees, taxes, brokerage commissions, interest expense, litigation and indemnification expenses, and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, underlying fund expenses (acquired fund fees), and short dividend expense. The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited. For the most recent month-end performance, visit jhinvestments.com.

  12. Investing in alternatives with John Hancock Investments The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited. For the most recent month-end performance, visit jhinvestments.com.

  13. Investing in alternatives with John Hancock Investments 1 “Net (what you pay)” represents the effect of a fee waiver and/or expense reimbursement and is subject to change. Net expense ratios exclude dividend and interest expense on short sales (2.05%); interest expense securities borrowing (0.11%); and additional other expenses, Class I (0.22%) and Class A (0.24%). The actual costs of short sales will depend on the extent to which they are used, and may differ significantly from the estimate. The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative, and results for other share classes will vary. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance cited. For the most recent month-end performance, visit jhinvestments.com.

  14. Index and term definitions Bank loans are represented by the Bloomberg Barclays U.S. High-Yield Loan Index, which tracks the performance of U.S. dollar-denominated, below-investment-grade-rated corporate debt publicly issued in the U.S. domestic market. Prior to 8/24/16, the index was named the Barclays U.S. Aggregate Bond Index. Commodities are represented by the Morningstar Commodities Index, a broadly representative benchmark of commodities traded using futures contracts on U.S. exchanges. Emerging-market bonds are represented by the J.P. Morgan Emerging Markets Bond Index (EMBI) Global Index, a market-capitalization-weighted index that tracks the performance of U.S. dollar-denominated Brady bonds, Eurobonds, and traded loans issued by sovereign and quasisovereign entities. Emerging-market stocks are represented on slide 4 by the MSCI Emerging Markets Index and by the MSCI Emerging Markets Investable Market Index on slides 7 and 8, both of which are designed to track the performance of publicly traded large- and mid-cap emerging-market stocks. Global real estate investment trusts (REITs) are represented on slide 4 by the Dow Jones Wilshire Global REIT Index, a measure of the types of global real estate securities that represent the ownership and operation of commercial or residential real estate, and on slides 7 and 8 by the FTSE NAREIT All REIT Index, a market-capitalization-weighted index that includes all tax-qualified REITs. Gold is represented by the Morningstar Gold Commodity Index, a subset of the Morningstar Commodities Index. High-yield bonds are represented by the Bank of America Merrill Lynch (BofA ML) U.S. High Yield Master II Index, which tracks the performance of globally issued, U.S. dollar-denominated high-yield bonds. International small cap is represented by the MSCI Europe, Australasia, and Far East (EAFE) Small Cap Index, which tracks the performance of publicly traded small-cap stocks of companies in those regions. Total returns are calculated gross of foreign withholding tax on dividends. International stocks are represented by the MSCI Europe, Australasia, and Far East (EAFE) Growth Index, which tracks the performance of publicly traded growth-oriented large- and mid-cap stocks of companies in those regions. Total returns are calculated gross of foreign withholding tax on dividends. Macro strategies are represented by the HFRI Macro Index, which involves making leveraged bets on anticipated price movements of stock markets, interest rates, foreign exchange, and physical commodities. It is not possible to invest directly in an index. Past performance does not guarantee future results.

  15. Index and term definitions Market neutral strategies are represented by the HFRI Equity Market Neutral Index, which seeks to profit by exploiting pricing inefficiencies between related equity securities, neutralizing exposure to market risk by combining long and short positions. Merger arbitrage strategiesare represented by the HFRI Merger Arbitrage Index, sometimes called risk arbitrage, which involves investment in event-driven situations such as leveraged buyouts, mergers, and hostile takeovers. Natural resources are represented by the MSCI Natural Resources Index, which features equity securities of companies engaged in the natural resources industry. Relative value strategiesare represented by the HFRI Relative Value Index, which maintains positions predicated on realization of a valuation discrepancy in the relationship between multiple securities. TIPS(Treasury Inflation-Protected Securities) are represented by the Bloomberg Barclays U.S. Treasury U.S. TIPS Index, an unmanaged index that consists of inflation-protected securities issued by the U.S. Treasury. Prior to 8/24/16, the index was named the Barclays U.S. Aggregate Bond Index. U.S. bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index, which tracks the performance of U.S. investment-grade bonds in government, asset-backed, and corporate debt markets. Prior to 8/24/16, the index was named the Barclays U.S. Aggregate Bond Index. U.S. stocks are represented by the S&P 500 Index, which tracks the performance of 500 of the largest publicly traded companies in the United States. U.S. real estate is represented by the FTSE NAREIT Equity REIT Index, an unmanaged index consisting of the most actively traded REITs. Diversified alternatives portfolio is an equal weighting of all of the above indexes. It is not possible to invest directly in an index. Past performance does not guarantee future results.

  16. A word about risk Absolute return funds are not designed to outperform stocks and bonds in strong markets. They employ certain techniques intended to reduce risk and volatility and provide protection against a decline in assets. There is no guarantee that the fund will achieve its objectives. The use of hedging and derivatives may increase volatility and costs. The issuer or grantor of a security, or counterparty to a transaction, may be unable or unwilling to make principal, interest, or settlement payments. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value, if at all—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Currency transactions are affected by fluctuations in exchange rates, which may adversely affect the U.S. dollar value of a fund’s investments. The fund’s strategies entail a high degree of risk. Leveraging, short positions, a non-diversified portfolio focused in a few sectors, and the use of hedging and derivatives greatly amplify the risk of potential loss and can increase costs. A non-diversified portfolio holds a limited number of securities, making it vulnerable to events affecting a single issuer. The stock prices of midsize and small companies can change more frequently and dramatically than those of large companies. Investments in higher-yielding, lower-rated securities include a higher risk of default. Exchange-traded funds reflect the risks inherent in their underlying securities, including liquidity risk. Alternative Asset Allocation Fund’s performance depends on the advisor’s skill in determining the strategic asset class allocations, the mix of underlying funds, and the performance of those underlying funds. The underlying funds’ performance may be lower than the performance of the asset class they were selected to represent. The fund is subject to the same risks as the underlying funds in which it invests: Stocks and bonds can decline due to adverse issuer, market, regulatory, or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; the securities of small-capitalization companies are subject to higher volatility than larger, more established companies; and high-yield bonds are subject to additional risks, such as increased risk of default. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if an issuer is unable or unwilling to make principal or interest payments. Please see the funds’ prospectuses for additional risks. This material is not intended to be, nor shall it be interpreted or construed as, a recommendation or providing advice, impartial or otherwise. John Hancock Investments and its representatives and affiliates may receive compensation derived from the sale of and/or from any investment made in its products and services.

  17. Connect with John Hancock Investments: @JH_Investments | jhinvestmentsblog.com Request a prospectus or summary prospectus from your financial advisor, by visiting jhinvestments.com, or by calling us at 800-225-5291. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should consider carefully before investing. John Hancock Funds, LLC ▪ Member FINRA, SIPC • 601 Congress Street ▪ Boston, MA 02210-2805 ▪ 800-225-5291 ▪ jhinvestments.com NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY. • MF341196 DPCPPT 5/17

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