John Hancock Diversified Macro Fund Q1 2025 Commentary

Summary

• U.S. equity markets rose steadily over the first half of Q1 and then sold off for the rest of the quarter, weighed down by fears that tariffs and reduced government spending would lead to a recession.
• The fund generated gains in the first quarter of 2025, particularly during January and February, which were partially offset by losses in March as growing uncertainty surrounding U.S. trade policy led to increased volatility in macro markets.
• Market sentiment was high following President Trump’s inauguration in January, as investors anticipated that a business-friendly environment of tax cuts and deregulation would further strengthen an already-robust U.S. economy.
• The narrative shifted by mid-February, however, as escalating tariff threats and rapidly changing U.S. policy fueled uncertainty in financial markets.

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Highlights

• The fund generated gains in the first quarter of 2025, particularly during January and February, which were partially offset by losses in March as growing uncertainty surrounding U.S. trade policy led to increased volatility in macro markets.