Strategic Positioning of the John Hancock International Growth Fund in a Shifting Global Growth Landscape

In an era marked by uneven global economic recovery, the interplay between AI-driven corporate earnings and geopolitical stability has reshaped the contours of international equity markets. The John Hancock International Growth Fund (GOGIX) offers a compelling case study in navigating these dynamics. As a fund focused on foreign equities across developed and emerging markets, GOGIX's strategic positioning reflects both the opportunities and challenges inherent in a post-pandemic world.

Strategic Allocation and Market Exposure

GOGIX's core strategy centers on diversification, with at least 80% of assets allocated to equity investments in non-U.S. markets. Its portfolio emphasizes companies with market capitalizations exceeding $3 billion, balancing growth potential with relative stability. By spanning 22 developed and 25 emerging markets-accounting for approximately 85% of global market capitalization-the fund aims to capture growth across geographies while mitigating regional risks. This broad exposure aligns with a global economic environment where emerging markets are rebounding from pandemic-induced contractions, while developed markets grapple with aging populations and productivity bottlenecks.

However, the fund's performance in Q3 2025 revealed a disconnect between its strategy and market realities. Despite a 28.98% year-to-date return and a five-year average of 6.10%, GOGIX underperformed the MSCI All Country World index during the quarter. This underperformance occurred amid a surge in global equities driven by robust corporate earnings and sustained AI infrastructure spending. The discrepancy suggests potential misalignments in sectoral or regional allocations, particularly as AI-related industries outperformed traditional sectors.

Navigating AI and Earnings Dynamics

The fund's investment process emphasizes value characteristics such as price-to-book and price-to-earnings ratios, a strategy that may have lagged in a market where AI-driven growth stocks-often commanding high valuations-dominated returns.

While GOGIX's Q3 commentary acknowledged the positive impact of AI spending on global equities, its portfolio appears to have underweighted the most dynamic segments of this trend. This highlights a broader challenge for international growth funds: balancing long-term value principles with the short-term momentum of disruptive technologies.

Moreover, the fund's exposure to corporate earnings trends remains a double-edged sword. Strong earnings growth in Q3 2025 bolstered global markets, yet analysts have issued a negative outlook for certain major stocks due to declining industry fundamentals and intensified competition. GOGIX's reliance on earnings power as a selection criterion may thus expose it to volatility if overvalued sectors correct.

Long-Term Resilience and Strategic Adjustments

Despite these challenges, GOGIX's long-term track record underscores its resilience. Its focus on large-cap foreign equities-companies with proven earnings and growth trajectories-positions it to weather short-term volatility. The fund's management team, evaluated by Morningstar for its investment process and alignment with investor interests, has historically adapted to shifting cycles, such as the dovish U.S. monetary policy shifts that spurred global capital flows in late 2025.

Yet, the absence of granular data on Q4 2025 portfolio allocations-particularly in AI and emerging markets-limits visibility into recent strategic adjustments. This opacity raises questions about the fund's agility in real-time market shifts, a critical factor in an environment where AI adoption and geopolitical risks evolve rapidly.

Conclusion

The John Hancock International Growth Fund exemplifies the complexities of international equity allocation in a fragmented global growth landscape. While its diversified approach and focus on large-cap foreign equities provide a sturdy foundation, the fund must address gaps in its exposure to high-growth sectors like AI to fully capitalize on current trends. As global markets continue to pivot between value and growth, GOGIX's ability to recalibrate its strategy will determine its success in sustaining long-term outperformance.