UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21779
JOHN HANCOCK FUNDS II
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(Exact name of registrant as specified in charter)
200 Berkeley Street, BOSTON, MA 02116
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(Address of principal executive offices) (Zip code)
SALVATORE SCHIAVONE, 200 Berkeley Street, BOSTON, MA 02116
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(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 663-4497
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Date of fiscal year end: 7/31
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Date of reporting period: 7/31/21
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ITEM 1. REPORTS TO STOCKHOLDERS.
The Registrant prepared two annual reports to shareholders for the year ended July 31, 2021 for series of John Hancock Funds II with July 31 fiscal year end. The first report applies to John Hancock Absolute Return Opportunities Fund, (formerly Diversified Strategies Fund) and the second report applies to John Hancock Short Duration Credit Opportunities Fund.
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 1 |
2 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 3 |
4 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
portfolio managers from
Manulife Investment
Management
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 5 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||
1-year | 5-year | Since inception (9-30-11) | 5-year | Since inception (9-30-11) | |
Class A | -7.69 | 0.06 | 2.43 | 0.28 | 26.69 |
Class I1 | -2.58 | 1.41 | 3.32 | 7.24 | 37.86 |
Class NAV1,2 | -2.73 | 1.11 | 2.99 | 5.69 | 33.58 |
Index 1† | 0.07 | 1.11 | 0.59 | 5.65 | 5.98 |
Index 2† | -0.70 | 3.13 | 3.19 | 16.64 | 36.15 |
Class A | Class I | Class NAV | |
Gross (%) | 3.00 | 2.70 | 2.57 |
Net (%) | 2.99 | 2.69 | 2.56 |
6 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index 1 ($) | Index 2 ($) | |
Class I1 | 9-30-11 | 13,786 | 13,786 | 10,598 | 13,615 |
Class NAV1,2 | 9-30-11 | 13,358 | 13,358 | 10,598 | 13,615 |
1 | For certain types of investors, as described in the fund’s prospectuses. |
2 | Class NAV shares were first offered on 6-3-21. Returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 7 |
8 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
Account value on 2-1-2021 | Ending value on 7-31-2021 | Expenses paid during period ended 7-31-20211 | Annualized expense ratio2 | ||
Class A | Actual expenses/actual returns | $1,000.00 | $980.80 | $8.30 | 1.69% |
Hypothetical example | 1,000.00 | 1,016.40 | 8.45 | 1.69% | |
Class I | Actual expenses/actual returns | 1,000.00 | 981.00 | 6.88 | 1.40% |
Hypothetical example | 1,000.00 | 1,017.90 | 7.00 | 1.40% | |
Class NAV | Actual expenses/actual returns3 | 1,000.00 | 982.10 | 2.05 | 1.28% |
Hypothetical example | 1,000.00 | 1,018.40 | 6.41 | 1.28% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
2 | Ratios do not include expense indirectly incurred from underlying funds and can vary based on the mix of underlying funds held by the fund. |
3 | The inception date for Class NAV shares is 6-3-21. Actual Expenses are equal to the class’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 59/365 (to reflect the period). |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 9 |
Rate (%) | Maturity date | Par value^ | Value | ||
Foreign government obligations 10.0% | $2,037,845 | ||||
(Cost $2,037,302) | |||||
Italy 10.0% | 2,037,845 | ||||
Republic of Italy Bond (A) | 1.500 | 04-30-45 | EUR | 1,700,000 | 2,037,845 |
Shares | Value | ||||
Unaffiliated investment companies 4.5% | $923,680 | ||||
(Cost $932,411) | |||||
Exchange-traded funds 4.5% | 923,680 | ||||
VanEck Vectors Gold Miners ETF | 6,050 | 211,261 | |||
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF | 22,900 | 712,419 | |||
Contracts/Notional amount | Value | ||||
Purchased options 0.6% | $122,641 | ||||
(Cost $329,595) | |||||
Calls 0.3% | 65,329 | ||||
Exchange Traded Option on Russell 2000 E-Mini Index Futures (Expiration Date 12-17-21; Strike Price: $2,400.00 Notional Amount: 1,100) (B) | 22 | 52,800 | |||
Exchange Traded Option on Russell 2000 E-Mini Index Futures (Expiration Date 9-17-21; Strike Price: $2,500.00 Notional Amount: 1,800) (B) | 36 | 6,255 | |||
Over the Counter Option on the AUD vs. JPY (Expiration Date: 8-5-21; Strike Price: AUD 85.50; Counterparty: Morgan Stanley & Company LLC) (B)(C) | 1,500,000 | 1 | |||
Over the Counter Option on the AUD vs. JPY (Expiration Date: 8-5-21; Strike Price: AUD 85.50; Counterparty: Morgan Stanley & Company, Inc.) (B)(C) | 1,500,000 | 1 | |||
Over the Counter Option on the AUD vs. USD (Expiration Date: 8-17-21; Strike Price: AUD 0.79; Counterparty: Goldman Sachs Bank USA) (B)(C) | 1,500,000 | 1 | |||
Over the Counter Option on the AUD vs. USD (Expiration Date: 8-17-21; Strike Price: AUD 0.79; Counterparty: Goldman Sachs Bank USA) (B)(C) | 1,500,000 | 1 |
10 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Contracts/Notional amount | Value | ||||
Calls (continued) | |||||
Over the Counter Option on the NOK vs. SEK (Expiration Date: 8-3-21; Strike Price: NOK 1.02; Counterparty: Goldman Sachs Bank USA) (B)(C) | 10,000,000 | $1 | |||
Over the Counter Option on the USD vs. CNY (Expiration Date: 9-3-21; Strike Price: $6.50; Counterparty: HSBC Bank USA) (B)(C) | 1,500,000 | 6,269 | |||
Puts 0.3% | 57,312 | ||||
Over the Counter Option on the EUR vs. RUB (Expiration Date: 8-9-21; Strike Price: EUR 84.00; Counterparty: Bank of America, N.A.) (B)(C) | 750,000 | 8 | |||
Over the Counter Option on the EUR vs. RUB (Expiration Date: 8-9-21; Strike Price: EUR 88.00; Counterparty: Goldman Sachs & Company LLC) (B)(C) | 750,000 | 12,793 | |||
Over the Counter Option on the EUR vs. TRY (Expiration Date: 2-4-22; Strike Price: EUR 8.50; Counterparty: Barclays Capital) (B)(C) | 1,000,000 | 68 | |||
Over the Counter Option on the GBP vs. JPY (Expiration Date: 8-24-21; Strike Price: GBP 149.00; Counterparty: Morgan Stanley & Company, Inc.) (B)(C) | 3,500,000 | 7,643 | |||
Over the Counter Option on the GBP vs. JPY (Expiration Date: 8-24-21; Strike Price: GBP 149.00; Counterparty: Morgan Stanley & Company, Inc.) (B)(C) | 3,500,000 | 7,643 | |||
Over the Counter Option on the USD vs. NOK (Expiration Date: 11-1-21; Strike Price: $8.65; Counterparty: Citibank N.A.) (B)(C) | 2,000,000 | 29,157 | |||
Yield* (%) | Maturity date | Par value^ | Value | ||
Short-term investments 81.2% | $16,627,208 | ||||
(Cost $16,627,351) | |||||
Commercial paper 77.3% | 15,822,823 | ||||
Apple, Inc. | 0.060 | 10-19-21 | 500,000 | 499,933 | |
BMW US Capital LLC | 0.060 | 08-20-21 | 500,000 | 499,980 | |
BNZ International Funding, Ltd. | 0.070 | 08-02-21 | 500,000 | 499,997 | |
Caisse des Depots et Consignations | 0.060 | 08-03-21 | 500,000 | 499,996 | |
Chariot Funding LLC | 0.108 | 08-11-21 | 475,000 | 474,987 | |
Exxon Mobil Corp. | 0.030 | 09-07-21 | 500,000 | 499,968 | |
Henkel of America, Inc. | 0.070 | 08-24-21 | 500,000 | 499,970 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 11 |
Yield* (%) | Maturity date | Par value^ | Value | ||
Commercial paper (continued) | |||||
John Deere, Ltd. | 0.060 | 09-01-21 | 500,000 | $499,968 | |
Manhattan Asset Funding Company LLC | 0.060 | 08-12-21 | 475,000 | 474,985 | |
Mizuho Bank | 0.090 | 08-17-21 | 500,000 | 499,975 | |
MUFG Bank, Ltd. | 0.080 | 10-21-21 | 500,000 | 499,890 | |
National Rural Utilities Cooperative Finance Corp. | 0.090 | 08-05-21 | 500,000 | 499,993 | |
National Rural Utilities Cooperative Finance Corp. | 0.090 | 08-23-21 | 500,000 | 499,971 | |
Nationwide Building Society | 0.090 | 08-03-21 | 500,000 | 499,996 | |
Nestle Cap Corp. | 0.030 | 11-03-21 | 500,000 | 499,933 | |
Novartis Finance Corp. | 0.040 | 08-16-21 | 475,000 | 474,983 | |
Old Line Funding LLC | 0.120 | 01-20-22 | 500,000 | 499,647 | |
Philip Morris International | 0.060 | 08-06-21 | 500,000 | 499,994 | |
Proctor Gamble and Company | 0.050 | 10-07-21 | 500,000 | 499,948 | |
Province of British Columbia | 0.040 | 09-03-21 | 500,000 | 499,971 | |
Prudential PLC | 0.040 | 09-10-21 | 500,000 | 499,948 | |
PSP Capital, Inc. | 0.040 | 08-04-21 | 500,000 | 499,995 | |
Sanofi | 0.060 | 09-28-21 | 500,000 | 499,950 | |
Sumitomo Mitsui Trust Bank, Ltd. | 0.128 | 08-02-21 | 475,000 | 474,997 | |
Swedbank AB | 0.159 | 10-05-21 | 475,000 | 474,936 | |
The Bank of Nova Scotia | 0.150 | 03-23-22 | 500,000 | 499,528 | |
Thunder Bay Funding LLC | 0.080 | 10-04-21 | 475,000 | 474,920 | |
Unilever Capital Corp. | 0.102 | 08-09-21 | 475,000 | 474,992 | |
University of California | 0.040 | 08-17-21 | 500,000 | 499,966 | |
University of Chicago | 0.070 | 08-17-21 | 500,000 | 500,000 | |
Westpac Banking Corp. | 0.150 | 04-01-22 | 500,000 | 499,524 | |
Yale University | 0.060 | 08-17-21 | 500,000 | 499,982 | |
U.S. Government Agency 2.4% | 499,995 | ||||
Federal Home Loan Bank Discount Note | 0.040 | 08-13-21 | 500,000 | 499,995 |
Yield (%) | Shares | Value | |||
Short-term funds 1.5% | 304,390 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 0.0250(D) | 304,390 | 304,390 |
Total investments (Cost $19,926,659) 96.3% | $19,711,374 | ||||
Other assets and liabilities, net 3.7% | 752,902 | ||||
Total net assets 100.0% | $20,464,276 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Currency Abbreviations | |
AUD | Australian Dollar |
CNY | Chinese Yuan Renminbi |
12 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
EUR | Euro |
GBP | Pound Sterling |
JPY | Japanese Yen |
NOK | Norwegian Krone |
RUB | Russian Ruble |
SEK | Swedish Krona |
TRY | Turkish Lira |
Security Abbreviations and Legend | |
(A) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $2,037,845 or 10.0% of the fund’s net assets as of 7-31-21. |
(B) | Non-income producing security. |
(C) | For this type of option, notional amounts are equivalent to number of contracts. |
(D) | The rate shown is the annualized seven-day yield as of 7-31-21. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 13 |
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) |
Financial Select Sector Index Futures | 4 | Long | Sep 2021 | $449,634 | $449,050 | $(584) |
FTSE 100 Index Futures | 14 | Long | Sep 2021 | 1,360,167 | 1,355,682 | (4,485) |
FTSE 250 Index Futures | 9 | Long | Sep 2021 | 572,965 | 572,526 | (439) |
German Euro BUND Futures | 24 | Long | Sep 2021 | 5,019,567 | 5,026,946 | 7,379 |
Russell 2000 E-Mini Index Futures | 2 | Long | Sep 2021 | 223,732 | 222,160 | (1,572) |
S&P 500 Index E-Mini Futures | 4 | Long | Sep 2021 | 881,859 | 877,900 | (3,959) |
Euro-BTP Italian Government Bond Futures | 26 | Short | Sep 2021 | (4,756,957) | (4,758,379) | (1,422) |
Euro-Buxl Futures | 8 | Short | Sep 2021 | (2,031,391) | (2,040,722) | (9,331) |
S&P 500 Index Micro E-Mini Futures | 20 | Short | Sep 2021 | (434,114) | (438,950) | (4,836) |
$(19,249) |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
AUD | 360,000 | JPY | 30,420,108 | UBS | 8/10/2021 | — | $(13,108) |
AUD | 280,000 | USD | 214,776 | RBC | 8/19/2021 | — | (9,282) |
CNY | 6,497,672 | USD | 1,000,000 | MSCS | 8/27/2021 | $3,345 | — |
JPY | 56,840,000 | AUD | 700,000 | MSCS | 8/3/2021 | 4,422 | — |
JPY | 30,510,000 | AUD | 360,000 | MSCS | 8/10/2021 | 13,927 | — |
USD | 217,148 | AUD | 280,000 | GSI | 8/19/2021 | 11,654 | — |
USD | 1,000,000 | CNY | 6,499,200 | SCB | 8/27/2021 | — | (3,581) |
USD | 2,004,658 | EUR | 1,700,000 | TD | 8/26/2021 | — | (12,861) |
$33,348 | $(38,832) |
Options on exchange-traded futures contracts | |||||||
Name of issuer | Currency | Exercise price | Expiration date | Number of contracts | Notional amount | Premium | Value |
Calls | |||||||
Russell 2000 E-Mini Index Futures | USD | 2,700.00 | Sep 2021 | 36 | 1,800 | $14,742 | $(990) |
Russell 2000 E-Mini Index Futures | USD | 2,600.00 | Dec 2021 | 22 | 1,100 | 11,017 | (13,145) |
S&P 500 Index E-Mini Futures | USD | 4,300.00 | Sep 2021 | 2 | 100 | 8,617 | (15,626) |
$34,376 | $(29,761) |
14 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Foreign currency options | |||||||
Description | Counterparty (OTC) | Currency | Exercise price | Expiration date | Notional amount* | Premium | Value |
Calls | |||||||
Australian Dollar versus Japanese Yen | MSI | AUD | 88.00 | Aug 2021 | 1,500,000 | $5,379 | $(1) |
Australian Dollar versus Japanese Yen | MSI | AUD | 88.00 | Aug 2021 | 1,500,000 | 2,619 | (1) |
Australian Dollar versus U.S. Dollar | GSI | AUD | 0.81 | Aug 2021 | 1,500,000 | 4,899 | (1) |
Australian Dollar versus U.S. Dollar | GSI | AUD | 0.81 | Aug 2021 | 1,500,000 | 2,788 | (1) |
Norwegian Krone versus Swedish Krona | GSI | NOK | 1.04 | Aug 2021 | 10,000,000 | 7,331 | (1) |
$23,016 | $(5) | ||||||
Puts | |||||||
Euro versus Russian Ruble | BARC | EUR | 88.00 | Aug 2021 | 750,000 | $11,053 | $(12,793) |
Euro versus Russian Ruble | GSI | EUR | 84.00 | Aug 2021 | 750,000 | 5,880 | (8) |
Pound Sterling versus Japanese Yen | MSI | GBP | 146.50 | Aug 2021 | 3,500,000 | 16,547 | (2,218) |
Pound Sterling versus Japanese Yen | MSI | GBP | 146.50 | Aug 2021 | 3,500,000 | 18,714 | (2,218) |
U.S. Dollar versus Norwegian Krone | CITI | USD | 8.35 | Nov 2021 | 2,000,000 | 9,357 | (9,357) |
$61,551 | $(26,594) | ||||||
$84,567 | $(26,599) | ||||||
* For this type of option, notional amounts are equivalent to number of contracts. |
Derivatives Currency Abbreviations | |
AUD | Australian Dollar |
CNY | Chinese Yuan Renminbi |
EUR | Euro |
GBP | Pound Sterling |
JPY | Japanese Yen |
NOK | Norwegian Krone |
USD | U.S. Dollar |
Derivatives Abbreviations | |
BARC | Barclays Bank PLC |
CITI | Citibank, N.A. |
GSI | Goldman Sachs International |
MSCS | Morgan Stanley Capital Services LLC |
MSI | Morgan Stanley & Co. International PLC |
OTC | Over-the-counter |
RBC | Royal Bank of Canada |
SCB | Standard Chartered Bank |
TD | The Toronto-Dominion Bank |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 15 |
UBS | UBS AG |
16 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $19,926,659) | $19,711,374 |
Receivable for centrally cleared swaps | 219,008 |
Unrealized appreciation on forward foreign currency contracts | 33,348 |
Receivable for futures variation margin | 671 |
Foreign currency, at value (Cost $257,061) | 255,917 |
Collateral held at broker for futures contracts | 518,007 |
Dividends and interest receivable | 8,130 |
Receivable for fund shares sold | 59,838 |
Receivable for investments sold | 46,842 |
Other assets | 3,664 |
Total assets | 20,856,799 |
Liabilities | |
Unrealized depreciation on forward foreign currency contracts | 38,832 |
Written options, at value (Premiums received $118,943) | 56,360 |
Due to custodian | 11,973 |
Payable for investments purchased | 51,878 |
Payable to affiliates | |
Investment management fees | 47,116 |
Accounting and legal services fees | 736 |
Transfer agent fees | 15 |
Trustees’ fees | 26 |
Other liabilities and accrued expenses | 185,587 |
Total liabilities | 392,523 |
Net assets | $20,464,276 |
Net assets consist of | |
Paid-in capital | $20,950,171 |
Total distributable earnings (loss) | (485,895) |
Net assets | $20,464,276 |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($49,449 ÷ 6,458 shares)1 | $7.66 |
Class I ($101,443 ÷ 13,083 shares) | $7.75 |
Class NAV ($20,313,384 ÷ 2,647,986 shares) | $7.67 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $8.06 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 17 |
Investment income | |
Interest | $21,728 |
Dividends | 16,509 |
Total investment income | 38,237 |
Expenses | |
Investment management fees | 118,491 |
Distribution and service fees | 12,778 |
Accounting and legal services fees | 1,958 |
Transfer agent fees | 10,127 |
Trustees’ fees | 366 |
Custodian fees | 38,171 |
Printing and postage | 23,306 |
Professional fees | 144,432 |
Other | 26,876 |
Total expenses | 376,505 |
Less expense reductions | (201,956) |
Net expenses | 174,549 |
Net investment loss | (136,312) |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | (226,032) |
Affiliated investments | 26,549 |
Futures contracts | (63,988) |
Forward foreign currency contracts | (15,810) |
Written options | 358,732 |
Swap contracts | (4,876) |
74,575 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (404,594) |
Affiliated investments | (8,976) |
Futures contracts | (5,756) |
Forward foreign currency contracts | 7,211 |
Written options | 34,833 |
Swap contracts | (43,277) |
(420,559) | |
Net realized and unrealized loss | (345,984) |
Decrease in net assets from operations | $(482,296) |
18 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Year ended 7-31-21 | Year ended 7-31-20 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income (loss) | $(136,312) | $4,956 |
Net realized gain | 74,575 | 7,394 |
Change in net unrealized appreciation (depreciation) | (420,559) | 164,072 |
Increase (decrease) in net assets resulting from operations | (482,296) | 176,422 |
Distributions to shareholders | ||
From earnings | ||
Class A | (78,990) | (52,194) |
Class I | (81,801) | (71,008) |
Total distributions | (160,791) | (123,202) |
From fund share transactions | 10,787,409 | 25,670 |
Total increase | 10,144,322 | 78,890 |
Net assets | ||
Beginning of year | 10,319,954 | 10,241,064 |
End of year | $20,464,276 | $10,319,954 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 19 |
CLASS A SHARES Period ended | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 | 7-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $8.00 | $7.96 | $10.13 | $10.50 | $10.09 |
Net investment income (loss)1 | (0.02) | (0.01) | 0.05 | 0.07 | 0.12 |
Net realized and unrealized gain (loss) on investments | (0.19) | 0.13 | 0.01 | (0.08) | 0.45 |
Total from investment operations | (0.21) | 0.12 | 0.06 | (0.01) | 0.57 |
Less distributions | |||||
From net investment income | — | (0.08) | — | (0.36) | (0.16) |
From net realized gain | (0.13) | — | (2.23) | — | — |
Total distributions | (0.13) | (0.08) | (2.23) | (0.36) | (0.16) |
Net asset value, end of period | $7.66 | $8.00 | $7.96 | $10.13 | $10.50 |
Total return (%)2,3 | (2.85) | 1.17 | 1.23 | (0.17) | 5.74 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $—4 | $5 | $5 | $5 | $32 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions5 | 3.40 | 2.96 | 2.57 | 1.89 | 1.71 |
Expenses including reductions5 | 1.70 | 1.71 | 1.70 | 1.70 | 1.70 |
Net investment income (loss) | (1.26) | (0.11) | 0.63 | 0.62 | 1.22 |
Portfolio turnover (%) | 7906,7 | 5427 | 1737 | 1717 | 73 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
4 | Less than $500,000. |
5 | Ratios do not include expense indirectly incurred from underlying funds and can vary based on the mix of underlying funds held by the fund. |
6 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
7 | The calculation of portfolio turnover excludes amounts from all securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. |
20 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 | 7-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $8.08 | $8.03 | $10.18 | $10.52 | $10.12 |
Net investment income1 | —2 | 0.02 | 0.08 | 0.05 | 0.16 |
Net realized and unrealized gain (loss) on investments | (0.20) | 0.14 | —2 | —2 | 0.43 |
Total from investment operations | (0.20) | 0.16 | 0.08 | 0.05 | 0.59 |
Less distributions | |||||
From net investment income | — | (0.11) | — | (0.39) | (0.19) |
From net realized gain | (0.13) | — | (2.23) | — | — |
Total distributions | (0.13) | (0.11) | (2.23) | (0.39) | (0.19) |
Net asset value, end of period | $7.75 | $8.08 | $8.03 | $10.18 | $10.52 |
Total return (%)3 | (2.58) | 1.46 | 1.47 | 0.32 | 5.94 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $—4 | $5 | $5 | $6 | $10 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions5 | 3.10 | 2.66 | 2.28 | 1.59 | 1.40 |
Expenses including reductions5 | 1.40 | 1.40 | 1.39 | 1.39 | 1.39 |
Net investment income (loss) | (0.96) | 0.20 | 0.93 | 0.66 | 1.53 |
Portfolio turnover (%) | 7906,7 | 5427 | 1737 | 1717 | 73 |
1 | Based on average daily shares outstanding. |
2 | Less than $0.005 per share. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Less than $500,000. |
5 | Ratios do not include expense indirectly incurred from underlying funds and can vary based on the mix of underlying funds held by the fund. |
6 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
7 | The calculation of portfolio turnover excludes amounts from all securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 21 |
CLASS NAV SHARES Period ended | 7-31-211 |
Per share operating performance | |
Net asset value, beginning of period | $7.86 |
Net investment loss2 | (0.05) |
Net realized and unrealized gain (loss) on investments | (0.14) |
Total from investment operations | (0.19) |
Net asset value, end of period | $7.67 |
Total return (%)3 | (2.42)4 |
Ratios and supplemental data | |
Net assets, end of period (in millions) | $20 |
Ratios (as a percentage of average net assets): | |
Expenses before reductions5 | 2.986 |
Expenses including reductions5 | 1.286 |
Net investment loss | (1.28)6 |
Portfolio turnover (%) | 7907,8,9 |
1 | The inception date for Class NAV shares is 6-3-21. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Ratios do not include expense indirectly incurred from underlying funds and can vary based on the mix of underlying funds held by the fund. |
6 | Annualized. |
7 | Increase in portfolio turnover rate resulted from repositioning of the portfolio during the period in accordance with investment policy changes approved by the Board of Trustees. |
8 | The calculation of portfolio turnover excludes amounts from all securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. |
9 | The portfolio turnover is shown for the period from 8-1-20 to 7-31-21. |
22 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Opportunities Fund | 23 |
Total value at 7-31-21 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Foreign government obligations | $2,037,845 | — | $2,037,845 | — |
Unaffiliated investment companies | 923,680 | $923,680 | — | — |
Purchased options | 122,641 | 59,055 | 63,586 | — |
Short-term investments | 16,627,208 | 304,390 | 16,322,818 | — |
Total investments in securities | $19,711,374 | $1,287,125 | $18,424,249 | — |
Derivatives: | ||||
Assets | ||||
Futures | $7,379 | $7,379 | — | — |
Forward foreign currency contracts | 33,348 | — | $33,348 | — |
Liabilities | ||||
Futures | (26,628) | (26,628) | — | — |
Forward foreign currency contracts | (38,832) | — | (38,832) | — |
Written options | (56,360) | (29,761) | (26,599) | — |
24 | JOHN HANCOCK Absolute Return Opportunities Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Opportunities Fund | 25 |
July 31, 2021 | July 31, 2020 | |
Ordinary income | $30,385 | $123,202 |
Long-term capital gains | 130,406 | — |
Total | $160,791 | $123,202 |
26 | JOHN HANCOCK Absolute Return Opportunities Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Opportunities Fund | 27 |
28 | JOHN HANCOCK Absolute Return Opportunities Fund | ANNUAL REPORT |
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
Interest rate | Receivable/payable for futures variation margin1 | Futures | $7,379 | $(10,753) |
Equity | Receivable/payable for futures variation margin1 | Futures | — | (15,875) |
Currency | Unrealized appreciation (depreciation) on forward foreign currency contracts | Forward foreign currency contracts | 33,348 | (38,832) |
Currency | Unaffiliated investments, at value2 | Purchased options | 63,586 | — |
Equity | Unaffiliated investments, at value2 | Purchased options | 59,055 | — |
Currency | Written options, at value | Written options | — | (26,599) |
Equity | Written options, at value | Written options | — | (29,761) |
$163,368 | $(121,820) |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Opportunities Fund | 29 |
1 | Reflects cumulative appreciation/depreciation on open futures as disclosed in the Derivatives section of Fund’s investments. Only the year end variation margin receivable/payable is separately reported on the Statement of assets and liabilities. |
2 | Purchased options are included in Fund’s investments. |
Statement of operations location - Net realized gain (loss) on: | ||||||
Risk | Unaffiliated investments and foreign currency transactions1 | Futures contracts | Forward foreign currency contracts | Written options | Swap contracts | Total |
Interest rate | $(46,883) | $(43,707) | — | — | $(4,876) | $(95,466) |
Currency | (377,929) | — | $(15,810) | $327,253 | — | (66,486) |
Equity | (53,850) | (20,281) | — | 31,479 | — | (42,652) |
Total | $(478,662) | $(63,988) | $(15,810) | $358,732 | $(4,876) | $(204,604) |
1 | Realized gain/loss associated with purchased options is included in this caption on the Statement of operations. |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | ||||||
Risk | Unaffiliated investments and translation of assets and liabilities in foreign currencies1 | Futures contracts | Forward foreign currency contracts | Written options | Swap contracts | Total |
Interest rate | — | $2,556 | — | — | $(43,277) | $(40,721) |
Currency | $(231,628) | — | $7,211 | $15,751 | — | (208,666) |
Equity | (83,949) | (8,312) | — | 19,082 | — | (73,179) |
Total | $(315,577) | $(5,756) | $7,211 | $34,833 | $(43,277) | $(322,566) |
1 | Change in unrealized appreciation/depreciation associated with purchased options is included in this caption on the Statement of operations. |
30 | JOHN HANCOCK Absolute Return Opportunities Fund | ANNUAL REPORT |
Class | Expense reduction |
Class A | $72,772 |
Class I | 75,671 |
Class | Expense reduction |
Class NAV | $53,513 |
Total | $201,956 |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Opportunities Fund | 31 |
Class | Rule 12b-1 Fee |
Class A | 0.25% |
Class | Distribution and service fees | Transfer agent fees |
Class A | $12,778 | $4,964 |
Class I | — | 5,163 |
Total | $12,778 | $10,127 |
32 | JOHN HANCOCK Absolute Return Opportunities Fund | ANNUAL REPORT |
Year Ended 7-31-21 | Year Ended 7-31-20 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Distributions reinvested | 9,999 | $78,990 | 6,500 | $52,194 |
Repurchased | (634,000) | (4,968,975) | — | — |
Net increase (decrease) | (624,001) | $(4,889,985) | 6,500 | $52,194 |
Class I shares | ||||
Sold | 4,244 | $33,612 | 2,047 | $16,908 |
Distributions reinvested | 10,251 | 81,801 | 8,777 | 71,008 |
Repurchased | (654,305) | (5,189,388) | (14,076) | (114,440) |
Net decrease | (639,810) | $(5,073,975) | (3,252) | $(26,524) |
Class NAV shares1 | ||||
Sold | 2,656,949 | $20,821,022 | — | — |
Repurchased | (8,963) | (69,653) | — | — |
Net increase | 2,647,986 | $20,751,369 | — | — |
Total net increase | 1,384,175 | $10,787,409 | 3,248 | $25,670 |
1 | The inception date for Class NAV shares is 6-3-21. |
Fund | Affiliated Concentration |
John Hancock Funds II Alternative Asset Allocation | 99.2% |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Opportunities Fund | 33 |
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
Asia Pacific Total Return Bond | — | $292,601 | — | $(310,174) | $26,549 | $(8,976) | — | — | — |
34 | JOHN HANCOCK Absolute Return Opportunities Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 35 |
36 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 37 |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
38 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 39 |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the fund’s Subadvisor is an affiliate of the Advisor; |
(i) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(j) | noted that the subadvisory fee for the fund is paid by the Advisor; |
40 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
(k) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(l) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the fund (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data. |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 41 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the fund’s principal investment strategy changed effective June 1, 2021 and the performance of the fund is being monitored and reasonably addressed, where appropriate; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
42 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 43 |
• | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
• | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
• | The Fund did not report any breaches of the 15% limit on illiquid investments that would require reporting to the Securities and Exchange Commission; |
• | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
44 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
• | The Chief Compliance Officer’s office performed audit testing of the LRMP which resulted in an assessment that the LRMP’s control environment was deemed to be operating effectively and in compliance with the Board approved procedures. |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 45 |
Independent Trustees | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, Born: 1945 | 2005 | 192 |
Trustee and Chairperson of the Board | ||
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. | ||
Charles L. Bardelis,2 Born: 1941 | 2005 | 192 |
Trustee | ||
Director, Island Commuter Corp. (marine transport). Trustee of various trusts within the John Hancock Fund Complex (since 1988). | ||
James R. Boyle, Born: 1959 | 2015 | 192 |
Trustee | ||
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||
Peter S. Burgess,2 Born: 1942 | 2005 | 192 |
Trustee | ||
Consultant (financial, accounting, and auditing matters) (since 1999); Certified Public Accountant; Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director, Lincoln Educational Services Corporation (2004-2021); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005). | ||
William H. Cunningham, Born: 1944 | 2012 | 192 |
Trustee | ||
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||
Grace K. Fey, Born: 1946 | 2008 | 192 |
Trustee | ||
Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
46 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Deborah C. Jackson, Born: 1952 | 2012 | 192 |
Trustee | ||
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Board of Directors, Association of Independent Colleges and Universities of Massachusetts (2014-2017); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of American Student Assistance Corporation (1996–2009); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
Steven R. Pruchansky, Born: 1944 | 2012 | 192 |
Trustee and Vice Chairperson of the Board | ||
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. | ||
Frances G. Rathke,2,* Born: 1960 | 2020 | 192 |
Trustee | ||
Board Member, Oatly Group AB (plant-based drink company) (since 2021): Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
Gregory A. Russo, Born: 1949 | 2012 | 192 |
Trustee | ||
Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018) and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002); Chairman and Treasurer, Westchester County, New York, Chamber of Commerce (1986–1992); Director, Treasurer, and Chairman of Audit and Finance Committees, Putnam Hospital Center (1989–1995); Director and Chairman of Fundraising Campaign, United Way of Westchester and Putnam Counties, New York (1990–1995). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 47 |
Non-Independent Trustees3 | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 192 |
President and Non-Independent Trustee | ||
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). | ||
Marianne Harrison, Born: 1963 | 2018 | 192 |
Non-Independent Trustee | ||
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston Medical Center (since 2021); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary’s General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013- 2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012–2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018). |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer | |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). | |
Salvatore Schiavone, Born: 1965 | 2009 |
Treasurer | |
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). | |
Christopher (Kit) Sechler, Born: 1973 | 2018 |
Secretary and Chief Legal Officer | |
Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
48 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
Principal officers who are not Trustees (continued) | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | 49 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*,1
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Andrew Graham
Mark Holden, CFA
David J. Rule, CFA, FRM
Nathan Thooft, CFA
Christopher Walsh, CFA
You can also contact us: | ||
800-225-5291 | Regular mail: | Express mail: |
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
50 | JOHN HANCOCK ABSOLUTE RETURN OPPORTUNITIES FUND | ANNUAL REPORT |
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392A 7/21 |
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John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 1 |
2 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 3 |
4 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
COUNTRY COMPOSITION AS OF 7/31/2021 (% of net assets) | |
United States | 74.1 |
United Kingdom | 1.6 |
Mexico | 1.4 |
Luxembourg | 1.3 |
France | 1.3 |
Canada | 1.2 |
Indonesia | 1.1 |
Other countries | 18.0 |
TOTAL | 100.0 |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 5 |
Opportunities Fund is managed by a
team that broadly manages across
global fixed-income markets at Stone
Harbor Investment Partners LP.
6 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | SEC 30-day yield (%) subsidized | SEC 30-day yield (%) unsubsidized† | |||||
1-year | 5-year | 10-year | 5-year | 10-year | as of 7-31-21 | as of 7-31-21 | ||
Class A | 2.81 | 3.05 | 2.55 | 16.19 | 28.60 | 2.26 | 2.25 | |
Class C1 | 3.68 | 2.87 | 2.30 | 15.22 | 25.52 | 1.63 | 1.62 | |
Class I2 | 5.73 | 3.90 | 3.13 | 21.11 | 36.07 | 2.62 | 2.61 | |
Class R61,2 | 5.84 | 4.02 | 3.09 | 21.76 | 35.55 | 2.73 | 2.72 | |
Class NAV2 | 5.96 | 4.04 | 3.28 | 21.92 | 38.11 | 2.71 | 2.70 | |
Index†† | 1.45 | 2.93 | 2.73 | 15.51 | 30.92 | — | — |
Class A | Class C | Class I | Class R6 | Class NAV | |
Gross (%) | 1.23 | 1.93 | 0.93 | 0.82 | 0.81 |
Net (%) | 1.22 | 1.92 | 0.92 | 0.81 | 0.80 |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 7 |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class C1,3 | 7-31-11 | 12,552 | 12,552 | 13,092 |
Class I2 | 7-31-11 | 13,607 | 13,607 | 13,092 |
Class R61,2 | 7-31-11 | 13,555 | 13,555 | 13,092 |
Class NAV2 | 7-31-11 | 13,811 | 13,811 | 13,092 |
1 | Class C and Class R6 shares were first offered on 6-27-14 and 3-27-15, respectively. Returns prior to these dates are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
2 | For certain types of investors, as described in the fund’s prospectuses. |
3 | The contingent deferred sales charge is not applicable. |
8 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 9 |
Account value on 2-1-2021 | Ending value on 7-31-2021 | Expenses paid during period ended 7-31-20211 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,011.40 | $7.73 | 1.55% |
Hypothetical example | 1,000.00 | 1,017.10 | 7.75 | 1.55% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,007.90 | 11.20 | 2.25% |
Hypothetical example | 1,000.00 | 1,013.60 | 11.23 | 2.25% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,012.90 | 6.29 | 1.26% |
Hypothetical example | 1,000.00 | 1,018.50 | 6.31 | 1.26% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,013.40 | 5.59 | 1.12% |
Hypothetical example | 1,000.00 | 1,019.20 | 5.61 | 1.12% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,013.50 | 4.19 | 0.84% |
Hypothetical example | 1,000.00 | 1,020.60 | 4.21 | 0.84% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
10 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government and Agency obligations 1.1% | $1,681,996 | ||||
(Cost $1,666,474) | |||||
U.S. Government Agency 1.1% | 1,681,996 | ||||
Federal National Mortgage Association 30 Yr Pass Thru (A) | 2.500 | TBA | 1,500,000 | 1,562,637 | |
Government National Mortgage Association | |||||
30 Yr Pass Thru | 4.500 | 01-15-40 | 68,364 | 77,366 | |
30 Yr Pass Thru | 6.000 | 08-15-35 | 35,953 | 41,993 | |
Foreign government obligations 12.9% | $20,195,287 | ||||
(Cost $21,248,237) | |||||
Angola 0.3% | 418,089 | ||||
Republic of Angola | |||||
Bond (6 month LIBOR + 7.500%) (B) | 7.760 | 07-01-23 | 344,923 | 338,025 | |
Bond (C) | 9.125 | 11-26-49 | 78,000 | 80,064 | |
Argentina 0.4% | 612,939 | ||||
Republic of Argentina | |||||
Bond (0.500% to 7-9-23, then 0.750% to 7-9-27, then 1.750% thereafter) | 0.500 | 07-09-30 | 711,423 | 258,602 | |
Bond (1.125% to 7-9-22, then 1.500% to 7-9-23, then 3.625% to 7-9-24, then 4.125% to 7-9-27, then 4.750% to 7-9-28, then 5.000% thereafter) | 1.125 | 07-09-35 | 714,000 | 230,272 | |
Bond (2.000% to 7-9-22, then 3.875% to 7-9-23, then 4.250% to 7-9-24, then 5.000% thereafter) | 2.000 | 01-09-38 | 313,295 | 124,065 | |
Armenia 0.0% | 50,318 | ||||
Republic of Armenia | |||||
Bond (C) | 3.600 | 02-02-31 | 53,000 | 50,318 | |
Bahamas 0.0% | 48,277 | ||||
Commonwealth of Bahamas | |||||
Bond (C) | 8.950 | 10-15-32 | 44,000 | 48,277 | |
Bahrain 0.3% | 446,829 | ||||
Kingdom of Bahrain | |||||
Bond (C) | 5.450 | 09-16-32 | 41,000 | 40,125 | |
Bond | 6.000 | 09-19-44 | 207,000 | 193,671 | |
Bond (C) | 6.750 | 09-20-29 | 41,000 | 44,452 | |
Bond (C) | 7.000 | 10-12-28 | 152,000 | 168,581 | |
Belarus 0.2% | 355,625 | ||||
Republic of Belarus | |||||
Bond (C) | 6.378 | 02-24-31 | 292,000 | 257,953 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 11 |
Rate (%) | Maturity date | Par value^ | Value | ||
Belarus (continued) | |||||
Bond (C) | 7.625 | 06-29-27 | 100,000 | $97,672 | |
Benin 0.1% | 111,512 | ||||
Republic of Benin | |||||
Bond (C) | 4.875 | 01-19-32 | EUR | 95,000 | 111,512 |
Brazil 0.7% | 1,100,877 | ||||
Brazil Minas SPE | |||||
Bond (C) | 5.333 | 02-15-28 | 83,300 | 89,861 | |
Federative Republic of Brazil | |||||
Bill (D) | 6.197 | 01-01-22 | BRL | 1,250,000 | 233,910 |
Bill (D) | 7.243 | 07-01-22 | BRL | 130,000 | 23,388 |
Bond | 3.875 | 06-12-30 | 230,000 | 232,236 | |
Bond | 4.625 | 01-13-28 | 30,000 | 32,550 | |
Bond | 5.625 | 02-21-47 | 21,000 | 22,649 | |
Note | 10.000 | 01-01-23 | BRL | 860,000 | 170,833 |
Note | 10.000 | 01-01-25 | BRL | 150,000 | 30,060 |
Note | 10.000 | 01-01-29 | BRL | 620,000 | 124,280 |
Note | 10.000 | 01-01-31 | BRL | 710,000 | 141,110 |
Chile 0.1% | 174,855 | ||||
Republic of Chile | |||||
Bond | 3.500 | 01-25-50 | 35,000 | 36,914 | |
Bond | 4.500 | 03-01-26 | CLP | 60,000,000 | 83,254 |
Bond (C) | 4.700 | 09-01-30 | CLP | 40,000,000 | 54,687 |
China 0.3% | 523,873 | ||||
People’s Republic of China | |||||
Bond | 1.990 | 04-09-25 | CNY | 1,810,000 | 273,452 |
Bond | 3.130 | 11-21-29 | CNY | 490,000 | 76,980 |
Bond | 3.190 | 04-11-24 | CNY | 1,100,000 | 173,441 |
Colombia 0.9% | 1,435,876 | ||||
Republic of Colombia | |||||
Bond | 3.000 | 01-30-30 | 51,000 | 49,999 | |
Bond | 3.125 | 04-15-31 | 196,000 | 192,062 | |
Bond | 3.250 | 04-22-32 | 89,000 | 87,016 | |
Bond | 3.875 | 04-25-27 | 79,000 | 83,564 | |
Bond | 4.000 | 02-26-24 | 145,000 | 152,017 | |
Bond | 5.000 | 06-15-45 | 223,000 | 233,142 | |
Bond | 9.750 | 07-26-28 | COP | 427,000,000 | 120,591 |
Bond | 9.850 | 06-28-27 | COP | 1,690,000,000 | 517,485 |
Costa Rica 0.1% | 136,835 | ||||
Republic of Costa Rica | |||||
Bond | 6.125 | 02-19-31 | 24,000 | 25,560 | |
Bond | 7.158 | 03-12-45 | 105,000 | 111,275 |
12 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Czech Republic 0.2% | $313,044 | ||||
Czech Republic | |||||
Bond | 0.250 | 02-10-27 | CZK | 920,000 | 39,735 |
Bond | 1.000 | 06-26-26 | CZK | 3,380,000 | 152,876 |
Bond | 4.200 | 12-04-36 | CZK | 1,980,000 | 120,433 |
Dominican Republic 0.3% | 505,936 | ||||
Government of Dominican Republic | |||||
Bond (C) | 4.500 | 01-30-30 | 19,000 | 17,979 | |
Bond (C) | 5.875 | 01-30-60 | 53,000 | 53,478 | |
Bond | 5.950 | 01-25-27 | 73,000 | 82,016 | |
Bond | 6.500 | 02-15-48 | 208,000 | 228,022 | |
Bond (C) | 7.450 | 04-30-44 | 102,000 | 124,441 | |
Ecuador 0.2% | 302,733 | ||||
Republic of Ecuador | |||||
Bond (0.500% to 7-31-21, then 5.000% to 7-31-22, then 5.500% to 7-31-23, then 6.000% to 7-31-24, then 6.900% thereafter) (C) | 0.500 | 07-31-30 | 60,000 | 52,351 | |
Bond (0.500% to 7-31-21, then 1.000% to 7-31-22, then 2.500% to 7-31-23, then 3.500% to 7-31-24, then 5.500% to 7-31-25, then 6.900% thereafter) (C) | 0.500 | 07-31-35 | 223,569 | 154,824 | |
Bond (0.500% to 7-31-21, then 0.500% to 7-31-22, then 1.500% to 7-31-23, then 2.500% to 7-31-24, then 5.000% to 7-31-26, then 5.500% to 7-31-27, then 6.000% to 7-31-28, then 6.500% to 7-31-29, then 6.900% thereafter) (C) | 0.500 | 07-31-40 | 62,000 | 38,131 | |
Bond (C)(D) | 6.714 | 07-31-30 | 103,938 | 57,427 | |
Egypt 0.4% | 634,359 | ||||
Arab Republic of Egypt | |||||
Bond (C) | 7.625 | 05-29-32 | 315,000 | 332,268 | |
Bond (C) | 7.903 | 02-21-48 | 49,000 | 47,775 | |
Bond | 7.903 | 02-21-48 | 200,000 | 195,000 | |
Bond | 13.765 | 01-05-24 | EGP | 947,000 | 59,316 |
El Salvador 0.2% | 264,152 | ||||
Republic of El Salvador | |||||
Bond | 5.875 | 01-30-25 | 20,000 | 17,910 | |
Bond (C) | 5.875 | 01-30-25 | 7,000 | 6,269 | |
Bond (C) | 6.375 | 01-18-27 | 7,000 | 6,090 | |
Bond | 6.375 | 01-18-27 | 50,000 | 43,501 | |
Bond (C) | 7.625 | 02-01-41 | 63,000 | 52,606 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 13 |
Rate (%) | Maturity date | Par value^ | Value | ||
El Salvador (continued) | |||||
Bond (C) | 7.650 | 06-15-35 | 33,000 | $28,875 | |
Bond | 8.250 | 04-10-32 | 120,000 | 108,901 | |
Ethiopia 0.0% | 22,211 | ||||
Federal Democratic Republic of Ethiopia | |||||
Bond (C) | 6.625 | 12-11-24 | 25,000 | 22,211 | |
Gabon 0.0% | 48,086 | ||||
Republic of Gabon | |||||
Bond (C) | 6.625 | 02-06-31 | 48,000 | 48,086 | |
Ghana 0.3% | 389,755 | ||||
Republic of Ghana | |||||
Bond | 7.625 | 05-16-29 | 391,000 | 389,755 | |
Guatemala 0.1% | 84,846 | ||||
Republic of Guatemala | |||||
Bond | 6.125 | 06-01-50 | 71,000 | 84,846 | |
Honduras 0.0% | 54,275 | ||||
Republic of Honduras | |||||
Bond (C) | 5.625 | 06-24-30 | 52,000 | 54,275 | |
Indonesia 0.7% | 1,116,136 | ||||
Republic of Indonesia | |||||
Bond (C) | 5.250 | 01-08-47 | 52,000 | 66,728 | |
Bond | 6.500 | 02-15-31 | IDR | 200,000,000 | 14,041 |
Bond | 7.500 | 05-15-38 | IDR | 4,250,000,000 | 307,374 |
Bond | 8.375 | 03-15-24 | IDR | 240,000,000 | 18,216 |
Bond | 8.375 | 09-15-26 | IDR | 7,680,000,000 | 602,988 |
Bond | 8.375 | 03-15-34 | IDR | 60,000,000 | 4,677 |
Bond | 9.000 | 03-15-29 | IDR | 1,260,000,000 | 102,112 |
Iraq 0.1% | 201,902 | ||||
Republic of Iraq | |||||
Bond (C) | 6.752 | 03-09-23 | 199,000 | 201,902 | |
Jordan 0.1% | 161,366 | ||||
The Hashemite Kingdom of Jordan | |||||
Bond (C) | 5.850 | 07-07-30 | 156,000 | 161,366 | |
Kenya 0.1% | 171,648 | ||||
Republic of Kenya | |||||
Bond (C) | 8.000 | 05-22-32 | 152,000 | 171,648 | |
Lebanon 0.1% | 132,123 | ||||
Republic of Lebanon | |||||
Bond (E) | 6.000 | 01-27-23 | 313,000 | 37,260 | |
Bond (E) | 6.650 | 04-22-24 | 475,000 | 57,000 | |
Bond (E) | 8.250 | 04-12-21 | 315,000 | 37,863 |
14 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Malaysia 0.3% | $388,926 | ||||
Government of Malaysia | |||||
Bond | 2.632 | 04-15-31 | MYR | 130,000 | 29,430 |
Bond | 3.733 | 06-15-28 | MYR | 820,000 | 202,881 |
Bond | 3.885 | 08-15-29 | MYR | 10,000 | 2,486 |
Bond | 3.906 | 07-15-26 | MYR | 430,000 | 107,532 |
Bond | 4.498 | 04-15-30 | MYR | 180,000 | 46,597 |
Mexico 0.8% | 1,211,708 | ||||
Government of Mexico | |||||
Bond | 3.750 | 04-19-71 | 242,000 | 223,262 | |
Bond | 4.750 | 03-08-44 | 76,000 | 84,343 | |
Bond | 6.050 | 01-11-40 | 52,000 | 65,576 | |
Bond | 7.750 | 11-13-42 | MXN | 2,250,000 | 114,868 |
Bond | 8.000 | 12-07-23 | MXN | 1,240,000 | 65,135 |
Bond | 8.000 | 09-05-24 | MXN | 8,130,000 | 428,982 |
Bond | 10.000 | 11-20-36 | MXN | 3,660,000 | 229,542 |
Nigeria 0.3% | 395,990 | ||||
Africa Finance Corp. | |||||
Bond (C) | 2.875 | 04-28-28 | 145,000 | 145,725 | |
Federal Republic of Nigeria | |||||
Bond (C) | 6.500 | 11-28-27 | 32,000 | 33,957 | |
Bond (C) | 7.143 | 02-23-30 | 206,000 | 216,308 | |
Oman 0.3% | 455,170 | ||||
Sultanate of Oman | |||||
Bond (C) | 6.000 | 08-01-29 | 58,000 | 61,717 | |
Bond (C) | 6.250 | 01-25-31 | 208,000 | 224,595 | |
Bond (C) | 6.750 | 01-17-48 | 21,000 | 21,210 | |
Bond (C) | 7.000 | 01-25-51 | 143,000 | 147,648 | |
Pakistan 0.1% | 193,200 | ||||
Republic of Pakistan | |||||
Bond (C) | 6.000 | 04-08-26 | 192,000 | 193,200 | |
Panama 0.0% | 63,729 | ||||
Republic of Panama | |||||
Bond | 4.500 | 04-16-50 | 56,000 | 63,729 | |
Peru 0.1% | 131,275 | ||||
Republic of Peru | |||||
Bond | 5.350 | 08-12-40 | PEN | 60,000 | 11,580 |
Bond | 5.400 | 08-12-34 | PEN | 310,000 | 64,831 |
Bond | 6.150 | 08-12-32 | PEN | 230,000 | 54,864 |
Philippines 0.1% | 201,364 | ||||
Republic of the Philippines | |||||
Bond | 5.000 | 01-13-37 | 160,000 | 201,364 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 15 |
Rate (%) | Maturity date | Par value^ | Value | ||
Poland 0.5% | $697,443 | ||||
Republic of Poland | |||||
Bond | 0.750 | 04-25-25 | PLN | 340,000 | 88,454 |
Bond | 2.500 | 01-25-23 | PLN | 1,620,000 | 434,593 |
Bond | 2.750 | 04-25-28 | PLN | 100,000 | 28,498 |
Bond | 2.750 | 10-25-29 | PLN | 510,000 | 145,898 |
Qatar 0.3% | 415,659 | ||||
State of Qatar | |||||
Bond (C) | 3.750 | 04-16-30 | 29,000 | 32,979 | |
Bond (C) | 4.000 | 03-14-29 | 69,000 | 79,609 | |
Bond (C) | 4.400 | 04-16-50 | 75,000 | 92,476 | |
Bond (C) | 5.103 | 04-23-48 | 68,000 | 91,120 | |
Bond (C) | 6.400 | 01-20-40 | 81,000 | 119,475 | |
Romania 0.3% | 513,902 | ||||
Republic of Romania | |||||
Bond (C) | 3.375 | 01-28-50 | EUR | 103,000 | 127,966 |
Bond (C) | 3.624 | 05-26-30 | EUR | 88,000 | 120,351 |
Bond | 3.650 | 09-24-31 | RON | 200,000 | 47,768 |
Bond | 5.000 | 02-12-29 | RON | 820,000 | 217,817 |
Russia 0.8% | 1,294,575 | ||||
Government of Russia | |||||
Bond | 4.375 | 03-21-29 | 200,000 | 226,698 | |
Bond | 5.250 | 06-23-47 | 200,000 | 254,000 | |
Bond | 7.000 | 08-16-23 | RUB | 2,340,000 | 32,197 |
Bond | 7.050 | 01-19-28 | RUB | 10,850,000 | 150,937 |
Bond | 7.400 | 12-07-22 | RUB | 16,550,000 | 228,395 |
Bond | 7.600 | 07-20-22 | RUB | 990,000 | 13,677 |
Bond | 7.700 | 03-23-33 | RUB | 19,500,000 | 285,495 |
Bond | 7.700 | 03-16-39 | RUB | 7,000,000 | 103,176 |
Saudi Arabia 0.4% | 648,839 | ||||
Kingdom of Saudi Arabia | |||||
Bond (C) | 2.250 | 02-02-33 | 340,000 | 333,679 | |
Bond (C) | 4.375 | 04-16-29 | 29,000 | 33,668 | |
Bond (C) | 4.500 | 10-26-46 | 133,000 | 156,093 | |
Bond (C) | 4.625 | 10-04-47 | 29,000 | 34,679 | |
Bond (C) | 5.250 | 01-16-50 | 69,000 | 90,720 | |
South Africa 0.6% | 940,101 | ||||
Republic of South Africa | |||||
Bond | 5.000 | 10-12-46 | 55,000 | 51,884 | |
Bond | 6.250 | 03-31-36 | ZAR | 2,130,000 | 102,542 |
Bond | 6.300 | 06-22-48 | 78,000 | 84,825 | |
Bond | 6.500 | 02-28-41 | ZAR | 240,000 | 10,904 |
Bond | 8.500 | 01-31-37 | ZAR | 9,160,000 | 534,025 |
Bond | 10.500 | 12-21-26 | ZAR | 2,010,000 | 155,921 |
16 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Sri Lanka 0.1% | $209,768 | ||||
Republic of Sri Lanka | |||||
Bond (C) | 6.750 | 04-18-28 | 107,000 | 65,419 | |
Bond | 7.550 | 03-28-30 | 236,000 | 144,349 | |
Thailand 0.2% | 310,768 | ||||
Kingdom of Thailand | |||||
Bond | 1.585 | 12-17-35 | THB | 4,800,000 | 140,110 |
Bond | 2.000 | 12-17-31 | THB | 570,000 | 18,050 |
Bond | 3.775 | 06-25-32 | THB | 4,160,000 | 152,608 |
Trinidad and Tobago 0.1% | 108,795 | ||||
Republic of Trinidad and Tobago | |||||
Bond | 4.500 | 08-04-26 | 103,000 | 108,795 | |
Tunisia 0.1% | 185,678 | ||||
Banque Centrale de Tunisie | |||||
Bond (C) | 5.750 | 01-30-25 | 101,000 | 85,374 | |
Bond | 6.375 | 07-15-26 | EUR | 100,000 | 100,304 |
Turkey 0.6% | 848,277 | ||||
Republic of Turkey | |||||
Bond | 4.750 | 01-26-26 | 141,000 | 139,249 | |
Bond | 5.750 | 03-22-24 | 150,000 | 155,820 | |
Bond | 5.750 | 05-11-47 | 158,000 | 136,480 | |
Bond | 6.250 | 09-26-22 | 153,000 | 158,934 | |
Bond | 6.350 | 08-10-24 | 90,000 | 94,632 | |
Bond | 10.500 | 08-11-27 | TRY | 780,000 | 69,891 |
Bond | 10.600 | 02-11-26 | TRY | 180,000 | 17,005 |
Bond | 11.000 | 03-02-22 | TRY | 668,000 | 76,266 |
Ukraine 0.2% | 311,936 | ||||
Republic of Ukraine | |||||
Bond (C) | 6.876 | 05-21-29 | 40,000 | 41,248 | |
Bond (C) | 7.750 | 09-01-25 | 155,000 | 168,330 | |
Bond (C) | 8.994 | 02-01-24 | 93,000 | 102,358 | |
United Arab Emirates 0.1% | 205,101 | ||||
Abu Dhabi Government | |||||
Bond (C) | 4.125 | 10-11-47 | 87,000 | 104,528 | |
Finance Department Government of Sharjah | |||||
Bond (C) | 4.000 | 07-28-50 | 111,000 | 100,573 | |
Uruguay 0.2% | 247,514 | ||||
Republic of Uruguay | |||||
Bond | 4.975 | 04-20-55 | 151,000 | 194,847 | |
Bond (C) | 8.500 | 03-15-28 | UYU | 700,000 | 16,604 |
Bond | 9.875 | 06-20-22 | UYU | 1,540,000 | 36,063 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 17 |
Rate (%) | Maturity date | Par value^ | Value | ||
Uzbekistan 0.0% | $66,715 | ||||
Republic of Uzbekistan | |||||
Bond (C) | 3.900 | 10-19-31 | 67,000 | 66,715 | |
Venezuela 0.1% | 140,835 | ||||
Republic of Venezuela | |||||
Bond (E) | 7.750 | 10-13-19 | 1,374,000 | 140,835 | |
Zambia 0.1% | 189,542 | ||||
Republic of Zambia | |||||
Bond | 5.375 | 09-20-22 | 200,000 | 127,598 | |
Bond (C) | 8.970 | 07-30-27 | 96,000 | 61,944 | |
Corporate bonds 38.2% | $59,573,431 | ||||
(Cost $58,405,306) | |||||
Communication services 4.1% | 6,395,287 | ||||
Diversified telecommunication services 1.2% | |||||
AT&T, Inc. | 2.250 | 02-01-32 | 700,000 | 697,903 | |
AT&T, Inc. (C) | 3.650 | 09-15-59 | 175,000 | 180,632 | |
Axtel SAB de CV (C) | 6.375 | 11-14-24 | 124,000 | 128,496 | |
C&W Senior Financing DAC (C) | 7.500 | 10-15-26 | 49,000 | 51,197 | |
Consolidated Communications, Inc. (C) | 6.500 | 10-01-28 | 138,000 | 149,003 | |
Intelsat Jackson Holdings SA (E) | 5.500 | 08-01-23 | 112,000 | 61,320 | |
Network i2i, Ltd. (5.650% to 1-15-25, then 5 Year CMT + 4.277%) (C)(F) | 5.650 | 01-15-25 | 38,000 | 39,853 | |
Verizon Communications, Inc. | 3.000 | 11-20-60 | 500,000 | 483,767 | |
Entertainment 0.6% | |||||
Automatic Data Processing, Inc. | 1.700 | 05-15-28 | 300,000 | 306,496 | |
Electronic Arts, Inc. | 2.950 | 02-15-51 | 450,000 | 449,264 | |
Netflix, Inc. | 4.875 | 04-15-28 | 116,000 | 135,556 | |
Netflix, Inc. (C) | 4.875 | 06-15-30 | 39,000 | 46,986 | |
Media 1.9% | |||||
Altice France Holding SA (C) | 6.000 | 02-15-28 | 75,000 | 73,969 | |
Altice France SA (C) | 5.125 | 07-15-29 | 149,000 | 150,104 | |
CCO Holdings LLC (C) | 4.500 | 08-15-30 | 78,000 | 81,900 | |
CCO Holdings LLC (C) | 5.375 | 06-01-29 | 82,000 | 89,249 | |
Charter Communications Operating LLC | 6.484 | 10-23-45 | 325,000 | 457,196 | |
Clear Channel Outdoor Holdings, Inc. (C) | 7.500 | 06-01-29 | 126,000 | 130,796 | |
Comcast Corp. | 3.969 | 11-01-47 | 375,000 | 446,069 | |
CSC Holdings LLC (C) | 5.000 | 11-15-31 | 42,000 | 42,279 | |
CSC Holdings LLC (C) | 7.500 | 04-01-28 | 331,000 | 361,004 | |
DISH DBS Corp. (C) | 5.125 | 06-01-29 | 92,000 | 91,200 | |
DISH DBS Corp. | 7.375 | 07-01-28 | 64,000 | 69,243 | |
DISH DBS Corp. | 7.750 | 07-01-26 | 20,000 | 22,825 | |
Nexstar Media, Inc. (C) | 4.750 | 11-01-28 | 32,000 | 33,000 | |
Sirius XM Radio, Inc. (C) | 5.000 | 08-01-27 | 66,000 | 68,970 |
18 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Communication services (continued) | |||||
Media (continued) | |||||
TEGNA, Inc. | 4.625 | 03-15-28 | 114,000 | $117,420 | |
Terrier Media Buyer, Inc. (C) | 8.875 | 12-15-27 | 139,000 | 148,633 | |
The Interpublic Group of Companies, Inc. | 4.650 | 10-01-28 | 375,000 | 444,966 | |
Univision Communications, Inc. (C) | 4.500 | 05-01-29 | 57,000 | 57,139 | |
Univision Communications, Inc. (C) | 6.625 | 06-01-27 | 113,000 | 121,510 | |
Wireless telecommunication services 0.4% | |||||
Digicel International Finance, Ltd. (C) | 8.750 | 05-25-24 | 38,000 | 39,520 | |
Digicel International Finance, Ltd. (C) | 8.750 | 05-25-24 | 32,000 | 33,280 | |
Sprint Capital Corp. | 8.750 | 03-15-32 | 74,000 | 114,062 | |
T-Mobile USA, Inc. | 3.875 | 04-15-30 | 200,000 | 225,818 | |
T-Mobile USA, Inc. | 4.500 | 04-15-50 | 200,000 | 244,662 | |
Consumer discretionary 3.5% | 5,409,169 | ||||
Auto components 0.1% | |||||
Iochpe-Maxion Austria GmbH (C) | 5.000 | 05-07-28 | 42,000 | 42,756 | |
LCM Investments Holdings II LLC (C) | 4.875 | 05-01-29 | 17,000 | 17,397 | |
The Goodyear Tire & Rubber Company (C) | 5.000 | 07-15-29 | 22,000 | 23,143 | |
The Goodyear Tire & Rubber Company (C) | 5.250 | 07-15-31 | 22,000 | 23,210 | |
Uzauto Motors AJ (C) | 4.850 | 05-04-26 | 47,000 | 47,102 | |
Automobiles 1.2% | |||||
Ford Motor Company | 8.500 | 04-21-23 | 88,000 | 97,700 | |
Ford Motor Credit Company LLC | 3.375 | 11-13-25 | 79,000 | 82,475 | |
Ford Motor Credit Company LLC | 4.125 | 08-17-27 | 46,000 | 49,220 | |
Ford Motor Credit Company LLC | 4.271 | 01-09-27 | 400,000 | 430,880 | |
Ford Motor Credit Company LLC | 5.113 | 05-03-29 | 259,000 | 293,250 | |
Ford Motor Credit Company LLC | 5.125 | 06-16-25 | 69,000 | 75,986 | |
General Motors Financial Company, Inc. | 4.350 | 01-17-27 | 375,000 | 424,760 | |
Hyundai Capital America (C) | 1.300 | 01-08-26 | 200,000 | 198,850 | |
Hyundai Capital America (C) | 3.250 | 09-20-22 | 200,000 | 205,633 | |
Diversified consumer services 0.1% | |||||
WW International, Inc. (C) | 4.500 | 04-15-29 | 129,000 | 130,770 | |
Hotels, restaurants and leisure 1.8% | |||||
Boyne USA, Inc. (C) | 4.750 | 05-15-29 | 24,000 | 24,750 | |
Carnival Corp. (C) | 7.625 | 03-01-26 | 112,000 | 118,300 | |
Churchill Downs, Inc. (C) | 4.750 | 01-15-28 | 83,000 | 86,009 | |
Churchill Downs, Inc. (C) | 5.500 | 04-01-27 | 88,000 | 91,501 | |
Everi Holdings, Inc. (C) | 5.000 | 07-15-29 | 14,000 | 14,315 | |
Expedia Group, Inc. | 3.250 | 02-15-30 | 425,000 | 446,080 | |
International Game Technology PLC (C) | 6.250 | 01-15-27 | 96,000 | 108,912 | |
Marriott International, Inc. | 2.850 | 04-15-31 | 400,000 | 409,662 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 19 |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Hotels, restaurants and leisure (continued) | |||||
Marriott International, Inc. | 5.750 | 05-01-25 | 225,000 | $259,630 | |
Marriott Ownership Resorts, Inc. (C) | 4.500 | 06-15-29 | 26,000 | 26,163 | |
NCL Corp., Ltd. (C) | 3.625 | 12-15-24 | 63,000 | 59,929 | |
NCL Corp., Ltd. (C) | 5.875 | 03-15-26 | 65,000 | 65,488 | |
NCL Finance, Ltd. (C) | 6.125 | 03-15-28 | 134,000 | 135,340 | |
New Red Finance, Inc. (C) | 3.875 | 01-15-28 | 124,000 | 125,060 | |
Penn National Gaming, Inc. (C) | 4.125 | 07-01-29 | 43,000 | 42,396 | |
Sands China, Ltd. | 4.600 | 08-08-23 | 400,000 | 423,688 | |
Scientific Games International, Inc. (C) | 7.250 | 11-15-29 | 39,000 | 43,734 | |
Scientific Games International, Inc. (C) | 8.250 | 03-15-26 | 128,000 | 135,841 | |
Station Casinos LLC (C) | 5.000 | 10-01-25 | 39,000 | 39,439 | |
Wynn Resorts Finance LLC (C) | 5.125 | 10-01-29 | 74,000 | 76,938 | |
Household durables 0.1% | |||||
KB Home | 4.800 | 11-15-29 | 54,000 | 58,860 | |
Tri Pointe Homes, Inc. | 5.700 | 06-15-28 | 51,000 | 56,486 | |
Weekley Homes LLC (C) | 4.875 | 09-15-28 | 74,000 | 76,529 | |
Specialty retail 0.2% | |||||
Ambience Merger Sub, Inc. (C) | 4.875 | 07-15-28 | 105,000 | 105,394 | |
PetSmart, Inc. (C) | 4.750 | 02-15-28 | 30,000 | 31,149 | |
PetSmart, Inc. (C) | 7.750 | 02-15-29 | 54,000 | 59,199 | |
Specialty Building Products Holdings LLC (C) | 6.375 | 09-30-26 | 138,000 | 145,245 | |
Consumer staples 1.4% | 2,211,525 | ||||
Beverages 0.1% | |||||
Triton Water Holdings, Inc. (C) | 6.250 | 04-01-29 | 99,000 | 99,124 | |
Food and staples retailing 0.5% | |||||
Albertsons Companies, Inc. (C) | 3.500 | 03-15-29 | 26,000 | 26,260 | |
Albertsons Companies, Inc. (C) | 4.875 | 02-15-30 | 79,000 | 85,518 | |
Albertsons Companies, Inc. (C) | 5.875 | 02-15-28 | 38,000 | 40,660 | |
Ingles Markets, Inc. (C) | 4.000 | 06-15-31 | 28,000 | 28,161 | |
Sysco Corp. | 2.400 | 02-15-30 | 200,000 | 207,531 | |
Walgreens Boots Alliance, Inc. | 3.200 | 04-15-30 | 400,000 | 434,948 | |
Food products 0.6% | |||||
Chobani LLC (C) | 7.500 | 04-15-25 | 86,000 | 89,629 | |
Conagra Brands, Inc. | 1.375 | 11-01-27 | 425,000 | 417,651 | |
JBS USA LUX SA (C) | 6.500 | 04-15-29 | 146,000 | 163,521 | |
Minerva Luxembourg SA (C) | 4.375 | 03-18-31 | 101,000 | 99,233 | |
Pilgrim’s Pride Corp. (C) | 5.875 | 09-30-27 | 58,000 | 62,061 | |
Post Holdings, Inc. (C) | 4.625 | 04-15-30 | 54,000 | 55,013 | |
Household products 0.1% | |||||
Kronos Acquisition Holdings, Inc. (C) | 5.000 | 12-31-26 | 51,000 | 51,714 |
20 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer staples (continued) | |||||
Household products (continued) | |||||
Kronos Acquisition Holdings, Inc. (C) | 7.000 | 12-31-27 | 132,000 | $129,001 | |
Tobacco 0.1% | |||||
Altria Group, Inc. | 2.450 | 02-04-32 | 225,000 | 221,500 | |
Energy 6.9% | 10,784,807 | ||||
Energy equipment and services 0.2% | |||||
Archrock Partners LP (C) | 6.250 | 04-01-28 | 115,000 | 117,326 | |
ChampionX Corp. | 6.375 | 05-01-26 | 44,000 | 45,695 | |
Kallpa Generacion SA (C) | 4.125 | 08-16-27 | 57,000 | 58,140 | |
Precision Drilling Corp. (C) | 6.875 | 01-15-29 | 94,000 | 96,585 | |
Oil, gas and consumable fuels 6.7% | |||||
AI Candelaria Spain SLU (C) | 7.500 | 12-15-28 | 86,000 | 95,675 | |
Antero Midstream Partners LP (C) | 5.750 | 03-01-27 | 61,000 | 62,830 | |
Antero Midstream Partners LP (C) | 5.750 | 01-15-28 | 82,000 | 85,690 | |
Antero Resources Corp. (C) | 5.375 | 03-01-30 | 32,000 | 32,560 | |
Antero Resources Corp. (C) | 7.625 | 02-01-29 | 112,000 | 122,746 | |
Ascent Resources Utica Holdings LLC (C) | 5.875 | 06-30-29 | 70,000 | 68,950 | |
Boardwalk Pipelines LP | 5.950 | 06-01-26 | 375,000 | 445,690 | |
BP Capital Markets PLC (4.375% to 6-22-25, then 5 Year CMT + 4.036%) (F) | 4.375 | 06-22-25 | 400,000 | 427,000 | |
Chesapeake Energy Corp. (C) | 5.500 | 02-01-26 | 172,000 | 179,310 | |
CNX Midstream Partners LP (C) | 6.500 | 03-15-26 | 83,000 | 85,801 | |
CNX Resources Corp. (C) | 6.000 | 01-15-29 | 22,000 | 23,326 | |
CNX Resources Corp. (C) | 7.250 | 03-14-27 | 67,000 | 71,334 | |
CrownRock LP (C) | 5.000 | 05-01-29 | 12,000 | 12,526 | |
DCP Midstream Operating LP | 5.125 | 05-15-29 | 97,000 | 108,068 | |
DT Midstream, Inc. (C) | 4.375 | 06-15-31 | 88,000 | 91,300 | |
Empresa Nacional del Petroleo | 3.750 | 08-05-26 | 210,000 | 221,160 | |
Enterprise Products Operating LLC (4.875% to 8-16-22, then 3 month LIBOR + 2.986%) | 4.875 | 08-16-77 | 450,000 | 446,636 | |
EQM Midstream Partners LP (C) | 6.500 | 07-01-27 | 111,000 | 124,598 | |
Genesis Energy LP | 5.625 | 06-15-24 | 12,000 | 11,910 | |
Genesis Energy LP | 7.750 | 02-01-28 | 143,000 | 144,459 | |
Genesis Energy LP | 8.000 | 01-15-27 | 46,000 | 47,428 | |
Geopark, Ltd. (C) | 5.500 | 01-17-27 | 34,000 | 34,255 | |
Hilcorp Energy I LP (C) | 5.750 | 10-01-25 | 145,000 | 146,486 | |
Hilcorp Energy I LP (C) | 6.250 | 11-01-28 | 73,000 | 76,194 | |
Holly Energy Partners LP (C) | 5.000 | 02-01-28 | 85,000 | 86,169 | |
KazMunayGas National Company JSC | 5.375 | 04-24-30 | 243,000 | 289,222 | |
KazMunayGas National Company JSC (C) | 5.750 | 04-19-47 | 78,000 | 97,048 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 21 |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
Kinder Morgan Energy Partners LP | 5.500 | 03-01-44 | 350,000 | $450,794 | |
Leviathan Bond, Ltd. (C) | 6.500 | 06-30-27 | 38,000 | 41,787 | |
Leviathan Bond, Ltd. (C) | 6.750 | 06-30-30 | 38,000 | 42,569 | |
MC Brazil Downstream Trading SARL (C) | 7.250 | 06-30-31 | 40,000 | 41,496 | |
Murphy Oil Corp. | 5.750 | 08-15-25 | 125,000 | 127,500 | |
Murphy Oil Corp. | 5.875 | 12-01-27 | 62,000 | 64,170 | |
NAK Naftogaz Ukraine (C) | 7.625 | 11-08-26 | 226,000 | 230,851 | |
Northern Natural Gas Company (C) | 3.400 | 10-16-51 | 425,000 | 448,576 | |
Oasis Petroleum, Inc. (C) | 6.375 | 06-01-26 | 22,000 | 22,770 | |
Occidental Petroleum Corp. | 5.550 | 03-15-26 | 21,000 | 22,986 | |
Occidental Petroleum Corp. | 6.600 | 03-15-46 | 51,000 | 62,738 | |
Occidental Petroleum Corp. | 7.500 | 05-01-31 | 67,000 | 85,090 | |
Occidental Petroleum Corp. | 7.875 | 09-15-31 | 41,000 | 53,300 | |
Occidental Petroleum Corp. | 8.875 | 07-15-30 | 223,000 | 300,881 | |
Pertamina Persero PT (C) | 3.650 | 07-30-29 | 92,000 | 98,678 | |
Pertamina Persero PT (C) | 5.625 | 05-20-43 | 153,000 | 181,028 | |
Pertamina Persero PT | 6.450 | 05-30-44 | 228,000 | 296,646 | |
Petroamazonas EP (C) | 4.625 | 12-06-21 | 27,800 | 27,383 | |
Petroleos de Venezuela SA (E) | 5.375 | 04-12-27 | 64,000 | 2,720 | |
Petroleos de Venezuela SA (E) | 6.000 | 05-16-24 | 3,771,996 | 160,310 | |
Petroleos de Venezuela SA (E) | 9.750 | 05-17-35 | 3,459,000 | 147,008 | |
Petroleos del Peru SA | 5.625 | 06-19-47 | 310,000 | 320,075 | |
Petroleos Mexicanos | 5.350 | 02-12-28 | 35,000 | 34,493 | |
Petroleos Mexicanos | 5.950 | 01-28-31 | 54,000 | 53,082 | |
Petroleos Mexicanos | 6.350 | 02-12-48 | 99,000 | 84,618 | |
Petroleos Mexicanos | 6.625 | 06-15-35 | 46,000 | 44,417 | |
Petroleos Mexicanos | 6.750 | 09-21-47 | 25,000 | 22,348 | |
Petroleos Mexicanos | 6.950 | 01-28-60 | 184,000 | 165,122 | |
Petroleos Mexicanos | 7.470 | 11-12-26 | MXN | 1,320,000 | 59,348 |
Petroleos Mexicanos | 7.470 | 11-12-26 | MXN | 1,100,000 | 49,457 |
Petroleos Mexicanos | 7.690 | 01-23-50 | 82,000 | 79,704 | |
Petroleos Mexicanos | 9.500 | 09-15-27 | 97,000 | 112,995 | |
Phillips 66 | 2.150 | 12-15-30 | 450,000 | 445,261 | |
Qatar Petroleum (C) | 2.250 | 07-12-31 | 129,000 | 130,516 | |
SierraCol Energy Andina LLC (C) | 6.000 | 06-15-28 | 50,000 | 50,063 | |
SM Energy Company | 5.625 | 06-01-25 | 67,000 | 65,825 | |
SM Energy Company | 6.500 | 07-15-28 | 85,000 | 84,646 | |
Targa Resources Partners LP | 6.500 | 07-15-27 | 138,000 | 149,903 | |
The Oil and Gas Holding Company BSCC (C) | 7.625 | 11-07-24 | 62,000 | 68,889 | |
The Williams Companies, Inc. | 2.600 | 03-15-31 | 425,000 | 437,592 | |
TotalEnergies Capital International SA | 3.127 | 05-29-50 | 450,000 | 469,861 |
22 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
Tullow Oil PLC (C) | 7.000 | 03-01-25 | 94,000 | $81,197 | |
Valero Energy Corp. | 2.150 | 09-15-27 | 425,000 | 432,934 | |
Western Midstream Operating LP | 5.450 | 04-01-44 | 425,000 | 477,063 | |
Financials 9.2% | 14,381,247 | ||||
Banks 6.1% | |||||
Bank of America Corp. (1.197% to 10-24-25, then SOFR + 1.010%) | 1.197 | 10-24-26 | 500,000 | 499,246 | |
Bank of America Corp. (2.087% to 6-14-28, then SOFR + 1.060%) | 2.087 | 06-14-29 | 200,000 | 203,654 | |
Bank of America Corp. (2.496% to 2-13-30, then 3 month LIBOR + 0.990%) | 2.496 | 02-13-31 | 325,000 | 334,898 | |
Brazil Loan Trust 1 (C) | 5.477 | 07-24-23 | 86,313 | 89,335 | |
Citigroup, Inc. | 4.400 | 06-10-25 | 450,000 | 503,799 | |
Deutsche Bank AG (2.129% to 11-24-25, then SOFR + 1.870%) | 2.129 | 11-24-26 | 400,000 | 408,727 | |
Deutsche Bank AG (3.035% to 5-28-31, then SOFR + 1.718%) | 3.035 | 05-28-32 | 200,000 | 206,860 | |
Deutsche Bank AG | 3.700 | 05-30-24 | 400,000 | 428,358 | |
Discover Bank | 4.650 | 09-13-28 | 350,000 | 414,739 | |
HSBC Holdings PLC (1.589% to 5-24-26, then SOFR + 1.290%) | 1.589 | 05-24-27 | 200,000 | 201,189 | |
HSBC Holdings PLC (1.645% to 4-18-25, then SOFR + 1.538%) | 1.645 | 04-18-26 | 200,000 | 202,996 | |
Intesa Sanpaolo SpA (C) | 4.000 | 09-23-29 | 600,000 | 666,112 | |
JPMorgan Chase & Co. | 3.625 | 12-01-27 | 400,000 | 440,492 | |
JPMorgan Chase Bank NA (C) | 3.130 | 11-23-29 | CNY | 3,370,000 | 519,361 |
Lloyds Banking Group PLC | 4.582 | 12-10-25 | 200,000 | 225,427 | |
Mizuho Financial Group, Inc. (1.979% to 9-8-30, then SOFR + 1.532%) | 1.979 | 09-08-31 | 675,000 | 669,074 | |
Natwest Group PLC (1.642% to 6-14-26, then 1 Year CMT + 0.900%) | 1.642 | 06-14-27 | 275,000 | 276,531 | |
Park River Holdings, Inc. (C) | 5.625 | 02-01-29 | 112,000 | 109,760 | |
Park River Holdings, Inc. (C) | 6.750 | 08-01-29 | 54,000 | 54,405 | |
Santander Holdings USA, Inc. | 3.244 | 10-05-26 | 600,000 | 645,567 | |
Societe Generale SA (1.488% to 12-14-25, then 1 Year CMT + 1.100%) (C) | 1.488 | 12-14-26 | 650,000 | 647,756 | |
Standard Chartered PLC (2.819% to 1-30-25, then 3 month LIBOR + 1.209%) (C) | 2.819 | 01-30-26 | 200,000 | 209,886 | |
Standard Chartered PLC (3.265% to 11-18-30, then 5 Year CMT + 2.300%) (C) | 3.265 | 02-18-36 | 200,000 | 202,482 | |
Standard Chartered PLC (C) | 5.700 | 03-26-44 | 350,000 | 462,084 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 23 |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Banks (continued) | |||||
Sumitomo Mitsui Financial Group, Inc. | 2.142 | 09-23-30 | 450,000 | $442,903 | |
Wells Fargo & Company (2.572% to 2-11-30, then SOFR + 1.262%) | 2.572 | 02-11-31 | 425,000 | 443,569 | |
Capital markets 1.8% | |||||
1MDB Global Investments, Ltd. | 4.400 | 03-09-23 | 1,000,000 | 1,004,227 | |
Credit Suisse Group AG (4.207% to 6-12-23, then 3 month LIBOR + 1.240%) (C) | 4.207 | 06-12-24 | 400,000 | 424,815 | |
MDGH - GMTN BV (C) | 2.875 | 11-07-29 | 87,000 | 91,507 | |
Morgan Stanley (2.239% to 7-21-31, then SOFR + 1.178%) | 2.239 | 07-21-32 | 650,000 | 655,353 | |
State Street Corp. | 2.200 | 03-03-31 | 650,000 | 666,252 | |
Consumer finance 0.4% | |||||
OneMain Finance Corp. | 3.500 | 01-15-27 | 74,000 | 75,295 | |
OneMain Finance Corp. | 7.125 | 03-15-26 | 125,000 | 147,188 | |
OneMain Finance Corp. | 8.875 | 06-01-25 | 26,000 | 28,599 | |
Synchrony Financial | 3.700 | 08-04-26 | 375,000 | 411,457 | |
Diversified financial services 0.4% | |||||
International Finance Corp. | 7.500 | 02-03-23 | KZT | 8,000,000 | 18,324 |
JAB Holdings BV (C) | 3.750 | 05-28-51 | 425,000 | 472,880 | |
Raptor Acquisition Corp. (C) | 4.875 | 11-01-26 | 38,000 | 38,570 | |
Insurance 0.5% | |||||
Acrisure LLC (C) | 4.250 | 02-15-29 | 38,000 | 37,003 | |
Acrisure LLC (C) | 7.000 | 11-15-25 | 126,000 | 127,890 | |
Alliant Holdings Intermediate LLC (C) | 4.250 | 10-15-27 | 38,000 | 37,769 | |
Alliant Holdings Intermediate LLC (C) | 6.750 | 10-15-27 | 170,000 | 177,438 | |
Kemper Corp. | 2.400 | 09-30-30 | 450,000 | 457,470 | |
Health care 2.1% | 3,296,916 | ||||
Biotechnology 0.3% | |||||
AbbVie, Inc. | 3.200 | 11-21-29 | 400,000 | 439,139 | |
Health care providers and services 1.1% | |||||
AdaptHealth LLC (C) | 4.625 | 08-01-29 | 144,000 | 143,456 | |
CVS Health Corp. | 4.300 | 03-25-28 | 225,000 | 260,521 | |
CVS Health Corp. | 4.780 | 03-25-38 | 100,000 | 125,534 | |
Encompass Health Corp. | 4.500 | 02-01-28 | 66,000 | 68,475 | |
Encompass Health Corp. | 4.625 | 04-01-31 | 15,000 | 16,315 | |
HCA, Inc. | 3.500 | 07-15-51 | 450,000 | 464,633 | |
Laboratory Corp. of America Holdings | 1.550 | 06-01-26 | 425,000 | 430,717 | |
Legacy LifePoint Health LLC (C) | 4.375 | 02-15-27 | 18,000 | 18,045 | |
US Acute Care Solutions LLC (C) | 6.375 | 03-01-26 | 126,000 | 131,040 | |
Life sciences tools and services 0.3% | |||||
Agilent Technologies, Inc. | 2.100 | 06-04-30 | 450,000 | 453,405 |
24 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Health care (continued) | |||||
Life sciences tools and services (continued) | |||||
Syneos Health, Inc. (C) | 3.625 | 01-15-29 | 30,000 | $29,775 | |
Pharmaceuticals 0.4% | |||||
Bausch Health Companies, Inc. (C) | 5.250 | 02-15-31 | 69,000 | 64,688 | |
Bausch Health Companies, Inc. (C) | 6.125 | 04-15-25 | 145,000 | 147,991 | |
Bausch Health Companies, Inc. (C) | 6.250 | 02-15-29 | 110,000 | 109,443 | |
Bausch Health Companies, Inc. (C) | 7.000 | 01-15-28 | 129,000 | 135,450 | |
Endo DAC (C) | 9.500 | 07-31-27 | 115,000 | 115,368 | |
Endo Luxembourg Finance Company I Sarl (C) | 6.125 | 04-01-29 | 23,000 | 22,856 | |
Organon & Company (C) | 4.125 | 04-30-28 | 49,000 | 50,245 | |
Organon & Company (C) | 5.125 | 04-30-31 | 46,000 | 47,380 | |
Par Pharmaceutical, Inc. (C) | 7.500 | 04-01-27 | 22,000 | 22,440 | |
Industrials 3.3% | 5,205,692 | ||||
Aerospace and defense 0.4% | |||||
Bombardier, Inc. (C) | 6.000 | 10-15-22 | 149,000 | 149,179 | |
General Dynamics Corp. | 2.850 | 06-01-41 | 425,000 | 449,410 | |
Air freight and logistics 0.4% | |||||
FedEx Corp. | 4.400 | 01-15-47 | 375,000 | 457,843 | |
Gol Finance SA (C) | 7.000 | 01-31-25 | 145,000 | 134,574 | |
Park-Ohio Industries, Inc. | 6.625 | 04-15-27 | 66,000 | 67,135 | |
Airlines 0.2% | |||||
Air Canada (C) | 3.875 | 08-15-26 | 24,000 | 24,000 | |
Delta Air Lines, Inc. (C) | 7.000 | 05-01-25 | 62,000 | 72,928 | |
Delta Air Lines, Inc. | 7.375 | 01-15-26 | 28,000 | 32,962 | |
United Airlines, Inc. (C) | 4.375 | 04-15-26 | 55,000 | 56,588 | |
United Airlines, Inc. (C) | 4.625 | 04-15-29 | 82,000 | 84,358 | |
Building products 0.1% | |||||
LBM Acquisition LLC (C) | 6.250 | 01-15-29 | 148,000 | 148,287 | |
Commercial services and supplies 0.7% | |||||
Covanta Holding Corp. | 5.000 | 09-01-30 | 86,000 | 92,291 | |
Covanta Holding Corp. | 5.875 | 07-01-25 | 65,000 | 67,356 | |
GFL Environmental, Inc. (C) | 4.750 | 06-15-29 | 56,000 | 57,884 | |
Illuminate Buyer LLC (C) | 9.000 | 07-01-28 | 136,000 | 151,300 | |
Prime Security Services Borrower LLC (C) | 6.250 | 01-15-28 | 208,000 | 217,079 | |
The ADT Security Corp. (C) | 4.125 | 08-01-29 | 123,000 | 123,732 | |
Waste Management, Inc. | 2.950 | 06-01-41 | 425,000 | 446,916 | |
Construction and engineering 0.0% | |||||
ATP Tower Holdings LLC (C) | 4.050 | 04-27-26 | 18,000 | 18,486 | |
Machinery 0.5% | |||||
CNH Industrial Capital LLC | 1.450 | 07-15-26 | 325,000 | 326,944 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 25 |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Machinery (continued) | |||||
Flowserve Corp. | 3.500 | 10-01-30 | 400,000 | $425,344 | |
Madison IAQ LLC (C) | 4.125 | 06-30-28 | 50,000 | 50,074 | |
Madison IAQ LLC (C) | 5.875 | 06-30-29 | 52,000 | 52,556 | |
Trading companies and distributors 0.4% | |||||
Air Lease Corp. | 3.625 | 12-01-27 | 400,000 | 435,296 | |
United Rentals North America, Inc. (A) | 3.750 | 01-15-32 | 121,000 | 121,000 | |
Transportation infrastructure 0.6% | |||||
Aeropuerto Internacional de Tocumen SA (C) | 6.000 | 11-18-48 | 542,434 | 632,207 | |
DP World PLC (C) | 6.850 | 07-02-37 | 55,000 | 74,361 | |
DP World Salaam (6.000% to 10-1-25, then 5 Year CMT + 5.750%) (F) | 6.000 | 10-01-25 | 216,000 | 235,602 | |
Information technology 2.3% | 3,562,126 | ||||
Communications equipment 0.3% | |||||
Hughes Satellite Systems Corp. | 6.625 | 08-01-26 | 130,000 | 146,088 | |
Plantronics, Inc. (C) | 4.750 | 03-01-29 | 167,000 | 162,825 | |
Viasat, Inc. (C) | 5.625 | 04-15-27 | 82,000 | 85,178 | |
Electronic equipment, instruments and components 0.3% | |||||
Flex, Ltd. | 4.875 | 06-15-29 | 375,000 | 434,964 | |
IT services 0.8% | |||||
Fidelity National Information Services, Inc. | 1.150 | 03-01-26 | 425,000 | 425,605 | |
Rackspace Technology Global, Inc. (C) | 3.500 | 02-15-28 | 30,000 | 28,875 | |
The Western Union Company | 2.850 | 01-10-25 | 400,000 | 424,317 | |
Visa, Inc. | 2.700 | 04-15-40 | 425,000 | 444,876 | |
Semiconductors and semiconductor equipment 0.6% | |||||
Broadcom, Inc. | 5.000 | 04-15-30 | 375,000 | 447,697 | |
TSMC Global, Ltd. (C) | 1.000 | 09-28-27 | 500,000 | 485,745 | |
Software 0.3% | |||||
Avaya, Inc. (C) | 6.125 | 09-15-28 | 39,000 | 41,730 | |
salesforce.com, Inc. | 2.700 | 07-15-41 | 425,000 | 434,226 | |
Materials 1.4% | 2,088,738 | ||||
Chemicals 0.7% | |||||
CF Industries, Inc. | 5.150 | 03-15-34 | 30,000 | 37,200 | |
GCP Applied Technologies, Inc. (C) | 5.500 | 04-15-26 | 129,000 | 132,096 | |
Huntsman International LLC | 2.950 | 06-15-31 | 425,000 | 440,797 | |
Nutrien, Ltd. | 3.950 | 05-13-50 | 375,000 | 442,874 | |
Orbia Advance Corp SAB de CV (C) | 6.750 | 09-19-42 | 38,000 | 50,160 | |
Construction materials 0.4% | |||||
Martin Marietta Materials, Inc. | 2.400 | 07-15-31 | 425,000 | 437,141 | |
White Cap Buyer LLC (C) | 6.875 | 10-15-28 | 118,000 | 125,965 |
26 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Materials (continued) | |||||
Containers and packaging 0.1% | |||||
Graham Packaging Company, Inc. (C) | 7.125 | 08-15-28 | 76,000 | $81,035 | |
Metals and mining 0.1% | |||||
First Quantum Minerals, Ltd. (C) | 7.500 | 04-01-25 | 117,000 | 121,259 | |
Indonesia Asahan Aluminium Persero PT (C) | 5.800 | 05-15-50 | 77,000 | 91,245 | |
Paper and forest products 0.1% | |||||
Flex Acquisition Company, Inc. (C) | 6.875 | 01-15-25 | 69,000 | 69,878 | |
Mercer International, Inc. | 5.125 | 02-01-29 | 58,000 | 59,088 | |
Real estate 1.6% | 2,442,327 | ||||
Equity real estate investment trusts 1.5% | |||||
Boston Properties LP | 2.550 | 04-01-32 | 450,000 | 463,339 | |
Equinix, Inc. | 1.800 | 07-15-27 | 225,000 | 229,507 | |
Equinix, Inc. | 2.150 | 07-15-30 | 225,000 | 226,339 | |
MGM Growth Properties Operating Partnership LP | 5.750 | 02-01-27 | 66,000 | 73,755 | |
Office Properties Income Trust | 4.250 | 05-15-24 | 400,000 | 428,893 | |
SITE Centers Corp. | 4.250 | 02-01-26 | 200,000 | 218,340 | |
SITE Centers Corp. | 4.700 | 06-01-27 | 200,000 | 223,643 | |
WEA Finance LLC (C) | 2.875 | 01-15-27 | 425,000 | 445,865 | |
Real estate management and development 0.1% | |||||
Mattamy Group Corp. (C) | 4.625 | 03-01-30 | 128,000 | 132,646 | |
Utilities 2.4% | 3,795,597 | ||||
Electric utilities 1.8% | |||||
Appalachian Power Company | 3.700 | 05-01-50 | 400,000 | 456,050 | |
Electricite de France SA (C) | 4.500 | 09-21-28 | 375,000 | 438,434 | |
Entergy Texas, Inc. | 3.550 | 09-30-49 | 400,000 | 446,989 | |
Eskom Holdings SOC, Ltd. (C) | 7.125 | 02-11-25 | 11,000 | 11,551 | |
Eskom Holdings SOC, Ltd. (C) | 8.450 | 08-10-28 | 238,000 | 267,745 | |
NextEra Energy Capital Holdings, Inc. | 2.250 | 06-01-30 | 425,000 | 436,585 | |
Puget Energy, Inc. (C) | 2.379 | 06-15-28 | 150,000 | 153,223 | |
Vistra Operations Company LLC (C) | 3.550 | 07-15-24 | 400,000 | 425,166 | |
Vistra Operations Company LLC (C) | 5.000 | 07-31-27 | 28,000 | 28,910 | |
Vistra Operations Company LLC (C) | 5.625 | 02-15-27 | 156,000 | 161,850 | |
Independent power and renewable electricity producers 0.3% | |||||
AES Panama Generation Holdings SRL (C) | 4.375 | 05-31-30 | 13,000 | 13,451 | |
Aydem Yenilenebilir Enerji AS (C) | 7.750 | 02-02-27 | 47,000 | 47,259 | |
Calpine Corp. (C) | 4.500 | 02-15-28 | 124,000 | 127,720 | |
ENN Clean Energy International Investment, Ltd. (C) | 3.375 | 05-12-26 | 162,000 | 165,264 | |
Minejesa Capital BV (C) | 4.625 | 08-10-30 | 28,000 | 29,610 | |
Minejesa Capital BV (C) | 5.625 | 08-10-37 | 21,000 | 22,811 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 27 |
Rate (%) | Maturity date | Par value^ | Value | ||
Utilities (continued) | |||||
Independent power and renewable electricity producers (continued) | |||||
Mong Duong Finance Holdings BV (C) | 5.125 | 05-07-29 | 83,000 | $82,170 | |
Multi-utilities 0.3% | |||||
CenterPoint Energy, Inc. | 4.250 | 11-01-28 | 375,000 | 434,777 | |
Cometa Energia SA de CV (C) | 6.375 | 04-24-35 | 39,302 | 46,032 | |
Term loans (G) 21.0% | $32,748,356 | ||||
(Cost $32,903,435) | |||||
Communication services 2.9% | 4,534,582 | ||||
Diversified telecommunication services 1.3% | |||||
Cablevision Lightpath LLC, Term Loan B (1 month LIBOR + 3.250%) | 3.750 | 11-30-27 | 267,268 | 266,332 | |
Cincinnati Bell, Inc., 2017 Term Loan (1 month LIBOR + 3.250%) | 4.250 | 10-02-24 | 307,481 | 306,872 | |
COGECO Financing 2 LP, 2021 Term Loan (H) | TBD | 07-28-28 | 150,000 | 149,625 | |
Consolidated Communications, Inc., 2021 Term Loan B (1 month LIBOR + 3.500%) | 4.250 | 10-02-27 | 162,852 | 162,160 | |
Intelsat Jackson Holdings SA, 2017 Term Loan B3 (E) | 0.000 | 11-27-23 | 835,000 | 846,615 | |
Iridium Satellite LLC, 2021 Term Loan B (1 month LIBOR + 2.500%) | 3.250 | 11-04-26 | 151,745 | 151,366 | |
Radiate Holdco LLC, 2020 Term Loan (1 month LIBOR + 3.500%) | 4.250 | 09-25-26 | 199,401 | 198,542 | |
Entertainment 0.2% | |||||
UFC Holdings LLC, 2021 Term Loan B (6 month LIBOR + 2.750%) | 3.500 | 04-29-26 | 281,666 | 279,686 | |
Interactive media and services 0.2% | |||||
MH Sub I LLC, 2020 Incremental Term Loan (1 month LIBOR + 3.750%) | 4.750 | 09-13-24 | 305,731 | 305,404 | |
Media 0.7% | |||||
Altice France SA, USD Term Loan B11 (3 month LIBOR + 2.750%) | 2.879 | 07-31-25 | 263,367 | 256,343 | |
Charter Communications Operating LLC, 2019 Term Loan B1 (1 month LIBOR + 1.750%) | 1.850 | 04-30-25 | 153,602 | 153,113 | |
CSC Holdings LLC, 2017 Term Loan B1 (1 month LIBOR + 2.250%) | 2.343 | 07-17-25 | 307,452 | 302,327 | |
Terrier Media Buyer, Inc., 2021 Term Loan (1 month LIBOR + 3.500%) | 3.592 | 12-17-26 | 262,481 | 259,675 | |
Univision Communications, Inc., 2021 Term Loan B (H) | TBD | 05-05-28 | 125,000 | 124,551 | |
Wireless telecommunication services 0.5% | |||||
Eagle Broadband Investments LLC, Term Loan (3 month LIBOR + 3.000%) | 3.750 | 11-12-27 | 149,250 | 148,690 |
28 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Communication services (continued) | |||||
Wireless telecommunication services (continued) | |||||
MTN Infrastructure TopCo, Inc., 2020 Term Loan B (1 month LIBOR + 4.000%) | 5.000 | 11-17-24 | 306,946 | $306,946 | |
SBA Senior Finance II LLC, 2018 Term Loan B (1 month LIBOR + 1.750%) | 1.850 | 04-11-25 | 153,098 | 151,391 | |
Syniverse Holdings, Inc., 2018 1st Lien Term Loan (3 month LIBOR + 5.000%) | 6.000 | 03-09-23 | 167,205 | 164,944 | |
Consumer discretionary 2.8% | 4,290,440 | ||||
Auto components 0.2% | |||||
Clarios Global LP, 2021 USD Term Loan B (1 month LIBOR + 3.250%) | 3.342 | 04-30-26 | 216,203 | 214,276 | |
Automobiles 0.1% | |||||
MajorDrive Holdings IV LLC, Term Loan B (3 month LIBOR + 4.000%) | 4.500 | 05-12-28 | 100,000 | 99,650 | |
Diversified consumer services 0.3% | |||||
Whatabrands LLC, 2020 Term Loan B (1 month LIBOR + 2.750%) | 2.839 | 07-31-26 | 148,684 | 148,332 | |
Whatabrands LLC, 2021 Term Loan B (H) | TBD | 07-12-28 | 125,000 | 124,349 | |
WW International, Inc., 2021 Term Loan B (1 month LIBOR + 3.500%) | 4.000 | 04-13-28 | 205,000 | 204,360 | |
Hotels, restaurants and leisure 1.1% | |||||
Alterra Mountain Company, 2020 Term Loan B (1 month LIBOR + 4.500%) | 5.500 | 08-01-26 | 162,938 | 163,040 | |
Alterra Mountain Company, Term Loan B1 (1 month LIBOR + 2.750%) | 2.842 | 07-31-24 | 99,742 | 98,495 | |
Boyd Gaming Corp., Term Loan B3 (1 week LIBOR + 2.250%) | 2.334 | 09-15-23 | 307,852 | 306,923 | |
Carnival Corp., USD Term Loan B (1 month LIBOR + 3.000%) | 3.750 | 06-30-25 | 164,584 | 163,248 | |
Golden Nugget LLC, 2017 Incremental Term Loan B (2 month LIBOR + 2.500%) | 3.250 | 10-04-23 | 231,548 | 229,170 | |
Hilton Worldwide Finance LLC, 2019 Term Loan B (1 month LIBOR + 1.750%) | 1.839 | 06-22-26 | 165,000 | 162,868 | |
IRB Holding Corp., 2020 4th Amendment Incremental Term Loan (3 month LIBOR + 3.250%) | 4.250 | 12-15-27 | 238,800 | 237,819 | |
Motion Finco LLC, Delayed Draw Term Loan B2 (3 month LIBOR + 3.250%) | 3.397 | 11-12-26 | 27,544 | 26,088 | |
Motion Finco LLC, USD Term Loan B1 (3 month LIBOR + 3.250%) | 3.397 | 11-12-26 | 209,569 | 198,491 | |
Stars Group Holdings BV, 2018 USD Incremental Term Loan (3 month LIBOR + 2.250%) | 2.397 | 07-21-26 | 185,000 | 183,555 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 29 |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Household durables 0.1% | |||||
Weber-Stephen Products LLC, Term Loan B (Prime rate + 2.250% and 1 month LIBOR + 3.250%) | 4.302 | 10-30-27 | 154,225 | $153,744 | |
Leisure products 0.2% | |||||
Hayward Industries, Inc., 2021 Term Loan (1 month LIBOR + 2.750%) | 3.250 | 05-12-28 | 285,000 | 282,293 | |
Specialty retail 0.8% | |||||
Belron Finance US LLC, 2019 USD Term Loan B3 (3 month LIBOR + 2.250%) | 2.438 | 10-30-26 | 196,985 | 195,098 | |
Great Outdoors Group LLC, 2021 Term Loan B (6 month LIBOR + 4.250%) | 5.000 | 03-06-28 | 307,590 | 307,744 | |
Harbor Freight Tools USA, Inc., 2020 Term Loan B (1 month LIBOR + 2.750%) | 3.750 | 10-19-27 | 152,718 | 151,883 | |
NASCAR Holdings, Inc., Term Loan B (1 month LIBOR + 2.750%) | 2.842 | 10-19-26 | 230,192 | 228,081 | |
Petco Health & Wellness Company, Inc., 2021 Term Loan B (3 month LIBOR + 3.250%) | 4.000 | 03-03-28 | 151,795 | 151,083 | |
PetSmart, Inc., 2021 Term Loan B (6 month LIBOR + 3.750%) | 4.500 | 02-12-28 | 150,000 | 149,850 | |
The Michaels Companies, Inc., 2021 Term Loan B (1 month LIBOR + 4.250%) | 5.000 | 04-15-28 | 110,000 | 110,000 | |
Consumer staples 2.0% | 3,167,568 | ||||
Beverages 0.5% | |||||
City Brewing Company LLC, Closing Date Term Loan (3 month LIBOR + 3.500%) | 4.250 | 04-05-28 | 275,000 | 272,594 | |
Refresco Holding BV, USD Term Loan B3 (3 month LIBOR + 3.000%) | 3.156 | 03-28-25 | 307,503 | 302,890 | |
Triton Water Holdings, Inc., Term Loan (3 month LIBOR + 3.500%) | 4.000 | 03-31-28 | 185,000 | 183,474 | |
Food and staples retailing 0.1% | |||||
Shearer’s Foods LLC, 2021 Term Loan (3 month LIBOR + 3.500%) | 4.250 | 09-23-27 | 152,732 | 152,541 | |
Food products 0.8% | |||||
Chobani LLC, 2020 Term Loan B (1 month LIBOR + 3.500%) | 4.500 | 10-20-27 | 167,506 | 167,297 | |
Dole Food Company, Inc., 2017 Term Loan B (Prime rate + 1.750%) | 5.000 | 04-06-24 | 304,954 | 304,573 | |
Froneri US, Inc., 2020 USD Term Loan (1 month LIBOR + 2.250%) | 2.342 | 01-29-27 | 150,913 | 148,083 | |
Hostess Brands LLC, 2019 Term Loan (1, 2, and 3 month LIBOR + 2.250%) | 3.000 | 08-03-25 | 304,676 | 302,729 |
30 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer staples (continued) | |||||
Food products (continued) | |||||
Total Produce USA Holdings, Inc., 2021 Term Loan B (H) | TBD | 06-10-28 | 115,000 | $115,216 | |
Upfield USA Corp., 2018 USD Term Loan B2 (6 month LIBOR + 3.000%) | 3.160 | 07-02-25 | 153,683 | 149,841 | |
Utz Quality Foods LLC, 2021 Term Loan B (1 month LIBOR + 3.000%) | 3.092 | 01-20-28 | 159,200 | 158,254 | |
Household products 0.2% | |||||
Diamond BC BV, USD Term Loan (2 month LIBOR + 3.000%) | 3.107 | 09-06-24 | 155,922 | 154,502 | |
Kronos Acquisition Holdings, Inc., 2021 Term Loan B (3 month LIBOR + 3.750%) | 4.250 | 12-22-26 | 184,075 | 181,840 | |
Personal products 0.4% | |||||
Revlon Consumer Products Corp., 2016 Term Loan B (3 month LIBOR + 3.500%) | 4.250 | 09-07-23 | 395,900 | 223,022 | |
Sunshine Luxembourg VII Sarl, 2021 Term Loan B3 (3 month LIBOR + 3.750%) | 4.500 | 10-01-26 | 350,712 | 350,712 | |
Energy 0.7% | 1,081,874 | ||||
Energy equipment and services 0.2% | |||||
ChampionX Corp., 2018 1st Lien Term Loan (1 month LIBOR + 2.500%) | 2.625 | 05-09-25 | 151,368 | 150,232 | |
Covia Holdings Corp., 2020 PIK Take Back Term Loan (3 month LIBOR + 4.000%) | 5.000 | 07-31-26 | 177,568 | 174,572 | |
Oil, gas and consumable fuels 0.5% | |||||
Buckeye Partners LP, 2021 Term Loan B (1 month LIBOR + 2.250%) | 2.354 | 11-01-26 | 261,592 | 259,023 | |
CQP Holdco LP, 2021 Term Loan B (3 month LIBOR + 3.750%) | 4.250 | 06-05-28 | 250,000 | 248,398 | |
DT Midstream, Inc., Term Loan B (3 and 6 month LIBOR + 2.000%) | 2.500 | 06-26-28 | 100,000 | 99,696 | |
Prairie ECI Acquiror LP, Term Loan B (1 month LIBOR + 4.750%) | 4.842 | 03-11-26 | 154,767 | 149,953 | |
Financials 1.5% | 2,272,910 | ||||
Capital markets 0.2% | |||||
Sequa Mezzanine Holdings LLC, 2020 Extended Term Loan (3 month LIBOR + 6.750%) | 7.750 | 11-28-23 | 229,355 | 232,032 | |
Diversified financial services 0.5% | |||||
AlixPartners LLP, 2021 USD Term Loan B (1 month LIBOR + 2.750%) | 3.250 | 02-04-28 | 244,388 | 242,723 | |
Deerfield Dakota Holding LLC, 2020 USD Term Loan B (1 month LIBOR + 3.750%) | 4.750 | 04-09-27 | 304,150 | 303,962 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 31 |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Diversified financial services (continued) | |||||
Raptor Acquisition Corp., 2021 Term Loan (H) | TBD | 11-01-26 | 100,000 | $99,938 | |
Zebra Buyer LLC, Term Loan B (H) | TBD | 04-21-28 | 95,000 | 95,000 | |
Insurance 0.8% | |||||
Acrisure LLC, 2020 Term Loan B (2 month LIBOR + 3.500%) | 3.607 | 02-15-27 | 154,219 | 151,328 | |
Alliant Holdings Intermediate LLC, 2020 Term Loan B3 (1 month LIBOR + 3.750%) | 4.250 | 10-08-27 | 49,895 | 49,820 | |
Alliant Holdings Intermediate LLC, 2021 Term Loan B3 (H) | TBD | 11-06-27 | 50,000 | 49,924 | |
Alliant Holdings Intermediate LLC, Term Loan B (1 month LIBOR + 3.250%) | 3.342 | 05-09-25 | 228,652 | 225,508 | |
Asurion LLC 2021, Second Lien Term Loan B4 (H) | TBD | 01-20-29 | 110,000 | 109,347 | |
Asurion LLC, 2018 Term Loan B7 (1 month LIBOR + 3.000%) | 3.092 | 11-03-24 | 109,717 | 107,849 | |
Asurion LLC, 2020 Term Loan B8 (1 month LIBOR + 3.250%) | 3.342 | 12-23-26 | 262,265 | 257,224 | |
HUB International, Ltd., 2021 Term Loan B (3 month LIBOR + 3.250%) | 4.000 | 04-25-25 | 196,534 | 196,026 | |
Ryan Specialty Group LLC, Term Loan (1 month LIBOR + 3.000%) | 3.750 | 09-01-27 | 153,042 | 152,229 | |
Health care 2.7% | 4,283,394 | ||||
Health care equipment and supplies 0.2% | |||||
Global Medical Response, Inc., 2020 Term Loan B (3 month LIBOR + 4.750%) | 5.750 | 10-02-25 | 307,819 | 308,038 | |
Health care providers and services 1.0% | |||||
Air Methods Corp., 2017 Term Loan B (3 month LIBOR + 3.500%) | 4.500 | 04-22-24 | 316,310 | 309,687 | |
Envision Healthcare Corp., 2018 1st Lien Term Loan (1 month LIBOR + 3.750%) | 3.842 | 10-10-25 | 392,091 | 334,669 | |
LifePoint Health, Inc., 2018 Term Loan B (1 month LIBOR + 3.750%) | 3.842 | 11-16-25 | 260,746 | 258,436 | |
Surgery Center Holdings, Inc., 2021 Term Loan (1 month LIBOR + 3.750%) | 4.500 | 08-31-26 | 306,006 | 305,678 | |
Team Health Holdings, Inc., 1st Lien Term Loan (1 month LIBOR + 2.750%) | 3.750 | 02-06-24 | 328,831 | 317,476 | |
Health care technology 0.2% | |||||
Change Healthcare Holdings LLC, 2017 Term Loan B (1 and 3 month LIBOR + 2.500%) | 3.500 | 03-01-24 | 328,798 | 328,147 |
32 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Health care (continued) | |||||
Life sciences tools and services 0.4% | |||||
Avantor, Inc., 2021 Term Loan B5 (1 month LIBOR + 2.250%) | 2.750 | 11-08-27 | 303,475 | $302,273 | |
ICON Luxembourg Sarl, LUX Term Loan (3 month LIBOR + 2.500%) | 3.000 | 07-03-28 | 152,103 | 151,723 | |
Indigo Merger Sub, Inc., US Term Loan (3 month LIBOR + 2.500%) | 3.000 | 07-03-28 | 37,897 | 37,802 | |
PPD, Inc., Initial Term Loan (1 month LIBOR + 2.250%) | 2.750 | 01-13-28 | 229,425 | 228,689 | |
Pharmaceuticals 0.9% | |||||
Bausch Health Americas, Inc., 2018 Term Loan B (1 month LIBOR + 3.000%) | 3.092 | 06-02-25 | 355,900 | 353,231 | |
Catalent Pharma Solutions, Inc., 2021 Term Loan B3 (1 month LIBOR + 2.000%) | 2.500 | 02-22-28 | 152,892 | 152,968 | |
Endo Luxembourg Finance Company I Sarl, 2021 Term Loan (3 month LIBOR + 5.000%) | 5.750 | 03-27-28 | 186,915 | 182,102 | |
IQVIA, Inc., 2017 USD Term Loan B2 (1 month LIBOR + 1.750%) | 1.842 | 01-17-25 | 151,830 | 150,028 | |
Jazz Financing Lux Sarl, USD Term Loan (1 month LIBOR + 3.500%) | 4.000 | 05-05-28 | 95,000 | 95,089 | |
McAfee LLC, 2018 USD Term Loan B (1 month LIBOR + 3.750%) | 3.840 | 09-30-24 | 298,297 | 297,888 | |
Organon & Company, USD Term Loan (3 month LIBOR + 3.000%) | 3.500 | 06-02-28 | 170,000 | 169,470 | |
Industrials 4.3% | 6,712,529 | ||||
Air freight and logistics 0.2% | |||||
XPO Logistics, Inc., 2021 Term Loan (3 month LIBOR + 1.750%) | 1.881 | 02-24-25 | 310,000 | 307,074 | |
Airlines 0.3% | |||||
Mileage Plus Holdings LLC, 2020 Term Loan B (3 month LIBOR + 5.250%) | 6.250 | 06-21-27 | 300,000 | 317,514 | |
SkyMiles IP, Ltd., 2020 SkyMiles Term Loan B (3 month LIBOR + 3.750%) | 4.750 | 10-20-27 | 145,000 | 153,016 | |
Building products 0.3% | |||||
Cornerstone Building Brands, Inc., 2021 Term Loan B (1 month LIBOR + 3.250%) | 3.750 | 04-12-28 | 197,087 | 196,409 | |
HNC Holdings, Inc., Term Loan B (3 month LIBOR + 4.000%) | 5.000 | 10-05-23 | 196,760 | 196,760 | |
LBM Acquisition LLC, Term Loan B (3 month LIBOR + 3.750%) | 4.500 | 12-17-27 | 149,693 | 148,196 | |
Commercial services and supplies 1.3% | |||||
Allied Universal Holdco LLC, 2021 USD Incremental Term Loan B (1 month LIBOR + 3.750%) | 4.250 | 05-12-28 | 201,877 | 201,568 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 33 |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Commercial services and supplies (continued) | |||||
Camelot US Acquisition LLC, 2020 Incremental Term Loan B (1 month LIBOR + 3.000%) | 4.000 | 10-30-26 | 303,475 | $303,287 | |
GFL Environmental, Inc., 2020 Term Loan (3 month LIBOR + 3.000%) | 3.500 | 05-30-25 | 227,527 | 227,309 | |
Intrado Corp., 2017 Term Loan (3 month LIBOR + 4.000%) | 5.000 | 10-10-24 | 209,455 | 204,051 | |
MHI Holdings LLC, Term Loan B (3 month LIBOR + 5.000%) | 5.087 | 09-21-26 | 198,237 | 198,320 | |
Prime Security Services Borrower LLC, 2021 Term Loan (1, 3 and 6 month LIBOR + 2.750%) | 3.500 | 09-23-26 | 246,504 | 245,306 | |
TK Elevator US Newco, Inc., USD Term Loan B (6 month LIBOR + 4.250%) | 4.404 | 07-30-27 | 152,783 | 152,377 | |
TruGreen LP, 2020 Term Loan (1 month LIBOR + 4.000%) | 4.750 | 11-02-27 | 303,475 | 303,948 | |
Win Waste Innovations Holdings, Inc., 2021 Term Loan B (3 month LIBOR + 2.750%) | 3.250 | 03-24-28 | 130,000 | 129,350 | |
Electrical equipment 0.1% | |||||
Vertiv Group Corp., 2021 Term Loan B (1 month LIBOR + 2.750%) | 2.851 | 03-02-27 | 196,023 | 194,032 | |
Machinery 1.7% | |||||
Alliance Laundry Systems LLC, Term Loan B (3 month LIBOR + 3.500%) | 4.250 | 10-08-27 | 147,643 | 147,435 | |
Brown Group Holding LLC, Term Loan B (3 month LIBOR + 2.750%) | 3.250 | 06-07-28 | 89,004 | 88,299 | |
Filtration Group Corp., 2018 1st Lien Term Loan (1 month LIBOR + 3.000%) | 3.920 | 03-29-25 | 533,195 | 527,095 | |
Filtration Group Corp., 2020 Incremental Term Loan (1 month LIBOR + 3.750%) | 4.500 | 03-29-25 | 152,482 | 152,482 | |
Gates Global LLC, 2021 Term Loan B3 (1 month LIBOR + 2.750%) | 3.500 | 03-31-27 | 691,632 | 686,679 | |
Lummus Technology Holdings V LLC, 2021 Term Loan (1 month LIBOR + 3.500%) | 3.592 | 06-30-27 | 246,919 | 244,719 | |
Madison IAQ LLC, Term Loan (3 month LIBOR + 3.250%) | 3.750 | 06-21-28 | 180,000 | 178,360 | |
Oregon Tool, Inc., 2018 Term Loan B (1 month LIBOR + 3.750%) | 4.750 | 04-12-23 | 463,595 | 463,924 | |
Welbilt, Inc., 2018 Term Loan B (1 month LIBOR + 2.500%) | 2.592 | 10-23-25 | 211,162 | 209,050 | |
Professional services 0.3% | |||||
Creative Artists Agency LLC, 2019 Term Loan B (1 month LIBOR + 3.750%) | 3.842 | 11-26-26 | 233,100 | 230,441 | |
The Dun & Bradstreet Corp., Term Loan (1 month LIBOR + 3.250%) | 3.336 | 02-06-26 | 218,322 | 216,377 |
34 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Trading companies and distributors 0.1% | |||||
Beacon Roofing Supply, Inc., 2021 Term Loan B (1 month LIBOR + 2.500%) | 2.592 | 04-23-28 | 89,972 | $89,151 | |
Information technology 2.3% | 3,646,207 | ||||
Communications equipment 0.2% | |||||
CommScope, Inc., 2019 Term Loan B (1 month LIBOR + 3.250%) | 3.342 | 04-06-26 | 151,188 | 149,488 | |
Plantronics, Inc., 2018 Term Loan B (1 month LIBOR + 2.500%) | 2.592 | 07-02-25 | 140,734 | 137,480 | |
Electronic equipment, instruments and components 0.4% | |||||
CPI International, Inc., 2017 1st Lien Term Loan (1 month LIBOR + 3.500%) | 4.500 | 07-26-24 | 230,476 | 229,266 | |
Robertshaw US Holding Corp., 2018 1st Lien Term Loan (1 month LIBOR + 3.500%) | 4.500 | 02-28-25 | 161,714 | 155,246 | |
Robertshaw US Holding Corp., 2018 2nd Lien Term Loan (1 month LIBOR + 8.000%) | 9.000 | 02-28-26 | 180,000 | 154,800 | |
IT services 0.1% | |||||
Rackspace Technology Global, Inc., 2021 Term Loan (3 month LIBOR + 2.750%) | 3.500 | 02-15-28 | 229,425 | 226,495 | |
Software 1.2% | |||||
BY Crown Parent LLC, Term Loan B1 (1 month LIBOR + 3.000%) | 4.000 | 02-02-26 | 151,709 | 150,761 | |
Cornerstone OnDemand, Inc., 2021 Term Loan B (1 month LIBOR + 3.250%) | 3.339 | 04-22-27 | 203,313 | 202,407 | |
Finastra USA, Inc., USD 1st Lien Term Loan (6 month LIBOR + 3.500%) | 4.500 | 06-13-24 | 229,548 | 225,705 | |
Magenta Buyer LLC, 2021 USD Term Loan B (H) | TBD | 05-03-28 | 150,000 | 149,204 | |
Proofpoint, Inc., 1st Lien Term Loan (H) | TBD | 06-09-28 | 190,000 | 188,005 | |
Sophia LP, 2020 1st Lien Term Loan (3 month LIBOR + 3.750%) | 4.500 | 10-07-27 | 228,850 | 228,523 | |
Surf Holdings LLC, USD Term Loan (3 month LIBOR + 3.500%) | 3.628 | 03-05-27 | 309,189 | 305,668 | |
UKG, Inc., Term Loan B (1 month LIBOR + 3.750%) | 3.842 | 05-04-26 | 319,112 | 318,774 | |
Xperi Holding Corp., 2020 Term Loan B (1 month LIBOR + 3.500%) | 3.592 | 06-02-25 | 147,114 | 146,194 | |
Technology hardware, storage and peripherals 0.4% | |||||
Dell International LLC, 2021 Term Loan B (1 month LIBOR + 1.750%) | 2.000 | 09-19-25 | 448,608 | 447,805 | |
TierPoint LLC, 2021 Term Loan (1 month LIBOR + 3.750%) | 4.500 | 05-05-26 | 230,667 | 230,386 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 35 |
Rate (%) | Maturity date | Par value^ | Value | ||
Materials 1.5% | $2,261,284 | ||||
Chemicals 0.9% | |||||
Alpha 3 BV, 2021 USD Term Loan B (3 month LIBOR + 2.500%) | 3.000 | 03-18-28 | 350,000 | 348,250 | |
Encapsys LLC, 2020 Term Loan B2 (1 month LIBOR + 3.250%) | 4.250 | 11-07-24 | 229,161 | 228,733 | |
Ferro Corp., 2018 USD Term Loan B1 (3 month LIBOR + 2.250%) | 2.397 | 02-14-24 | 116,906 | 116,516 | |
Gemini HDPE LLC, 2020 Term Loan B (3 month LIBOR + 3.000%) | 3.500 | 12-31-27 | 229,616 | 228,658 | |
INEOS US Petrochem LLC, 2021 USD Term Loan B (1 month LIBOR + 2.750%) | 3.250 | 01-29-26 | 275,000 | 273,900 | |
PQ Corp., 2018 Term Loan B (3 month LIBOR + 2.250%) | 2.379 | 02-07-27 | 42,256 | 42,044 | |
PQ Corp., 2021 Term Loan B (3 month LIBOR + 2.750%) | 3.250 | 06-09-28 | 145,000 | 144,203 | |
Construction materials 0.2% | |||||
White Cap Buyer LLC, Term Loan B (1 month LIBOR + 4.000%) | 4.500 | 10-19-27 | 270,052 | 270,052 | |
Containers and packaging 0.3% | |||||
Graham Packaging Company, Inc., 2021 Term Loan (1 month LIBOR + 3.000%) | 3.750 | 08-04-27 | 307,822 | 305,667 | |
Pactiv Evergreen Group Holdings, Inc., USD 2020 Term Loan B2 (1 month LIBOR + 3.250%) | 3.348 | 02-05-26 | 154,225 | 152,325 | |
Paper and forest products 0.1% | |||||
Asplundh Tree Expert LLC, 2021 Term Loan B (1 month LIBOR + 1.750%) | 1.842 | 09-07-27 | 152,581 | 150,936 | |
Real estate 0.1% | 153,273 | ||||
Equity real estate investment trusts 0.1% | |||||
VICI Properties 1 LLC, Replacement Term Loan B (1 month LIBOR + 1.750%) | 1.839 | 12-20-24 | 155,000 | 153,273 | |
Utilities 0.2% | 344,295 | ||||
Electric utilities 0.2% | |||||
Vistra Operations Company LLC, Term Loan B (1 month LIBOR + 1.750%) | 1.841 | 12-31-25 | 349,028 | 344,295 | |
Collateralized mortgage obligations 22.0% | $34,310,394 | ||||
(Cost $33,881,821) | |||||
Commercial and residential 21.8% | 34,025,431 | ||||
BBCMS Mortgage Trust | |||||
Series 2018-TALL, Class A (1 month LIBOR + 0.722%) (B)(C) | 0.828 | 03-15-37 | 700,000 | 699,333 | |
Series 2018-TALL, Class B (1 month LIBOR + 0.971%) (B)(C) | 1.077 | 03-15-37 | 1,325,000 | 1,312,519 |
36 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Commercial and residential (continued) | |||||
BBCMS Trust | |||||
Series 2018-BXH, Class A (1 month LIBOR + 1.000%) (B)(C) | 1.106 | 10-15-37 | 1,731,762 | $1,735,004 | |
BB-UBS Trust | |||||
Series 2012-TFT, Class A (C) | 2.892 | 06-05-30 | 438,194 | 438,377 | |
Series 2012-TFT, Class B (C)(I) | 3.468 | 06-05-30 | 1,000,000 | 904,985 | |
BX Commercial Mortgage Trust | |||||
Series 2019-IMC, Class B (1 month LIBOR + 1.300%) (B)(C) | 1.406 | 04-15-34 | 1,440,000 | 1,439,096 | |
Series 2019-XL, Class B (1 month LIBOR + 1.080%) (B)(C) | 1.186 | 10-15-36 | 1,340,505 | 1,343,450 | |
Series 2020-BXLP, Class B (1 month LIBOR + 1.000%) (B)(C) | 1.106 | 12-15-36 | 1,421,601 | 1,423,383 | |
CG-CCRE Commercial Mortgage Trust | |||||
Series 2014-FL2, Class A (1 month LIBOR + 1.854%) (B)(C) | 1.960 | 11-15-31 | 1,202,688 | 1,179,531 | |
CHT Mortgage Trust | |||||
Series 2017-CSMO, Class A (1 month LIBOR + 0.930%) (B)(C) | 1.036 | 11-15-36 | 200,000 | 200,442 | |
CLNY Trust | |||||
Series 2019-IKPR, Class A (1 month LIBOR + 1.129%) (B)(C) | 1.235 | 11-15-38 | 500,000 | 500,619 | |
Commercial Mortgage Trust (Cantor Fitzgerald/Deutsche Bank AG) | |||||
Series 2012-CR3, Class C (C)(I) | 4.584 | 10-15-45 | 200,000 | 166,591 | |
CSAIL Commercial Mortgage Trust | |||||
Series 2015-C2, Class D (I) | 4.190 | 06-15-57 | 200,000 | 156,749 | |
HMH Trust | |||||
Series 2017-NSS, Class E (C) | 6.292 | 07-05-31 | 1,350,000 | 1,316,368 | |
Hudsons Bay Simon JV Trust | |||||
Series 2015-HBFL, Class AFL (1 month LIBOR + 1.830%) (B)(C) | 1.933 | 08-05-34 | 3,250,000 | 3,048,100 | |
IndyMac INDA Mortgage Loan Trust | |||||
Series 2005-AR2, Class 1A1 (I) | 2.860 | 01-25-36 | 435,601 | 389,783 | |
JPMorgan Chase Commercial Mortgage Securities Trust | |||||
Series 2006-LDP9, Class AMS | 5.337 | 05-15-47 | 1,617,222 | 1,433,289 | |
Series 2019-MARG, Class A (1 month LIBOR + 1.100%) (B)(C) | 1.206 | 05-15-34 | 2,250,000 | 2,251,296 | |
Key Commercial Mortgage Securities Trust | |||||
Series 2019-S2, Class A1 (C) | 2.656 | 06-15-52 | 2,673,480 | 2,771,396 | |
Morgan Stanley Bank of America Merrill Trust | |||||
Series 2013-C10, Class D (C)(I) | 4.217 | 07-15-46 | 400,000 | 220,364 | |
Series 2013-C12, Class F (C) | 3.709 | 10-15-46 | 500,000 | 226,155 | |
Morgan Stanley Capital I Trust | |||||
Series 2019-BPR, Class D (1 month LIBOR + 4.000%) (B)(C) | 4.106 | 05-15-36 | 930,000 | 664,261 | |
Series 2019-NUGS, Class A (1 month LIBOR + 0.950%) (B)(C) | 2.450 | 12-15-36 | 2,200,000 | 2,208,443 | |
MSBAM Commercial Mortgage Securities Trust | |||||
Series 2012-CKSV, Class C (C)(I) | 4.284 | 10-15-30 | 1,800,000 | 1,434,788 | |
MSCG Trust |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 37 |
Rate (%) | Maturity date | Par value^ | Value | ||
Commercial and residential (continued) | |||||
Series 2018-SELF, Class A (1 month LIBOR + 0.900%) (B)(C) | 1.006 | 10-15-37 | 1,275,000 | $1,276,579 | |
MTRO Commercial Mortgage Trust | |||||
Series 2019-TECH, Class A (1 month LIBOR + 0.900%) (B)(C) | 1.006 | 12-15-33 | 2,375,000 | 2,372,023 | |
RBS Commercial Funding, Inc. Trust | |||||
Series 2013-GSP, Class A (C)(I) | 3.834 | 01-15-32 | 1,150,000 | 1,219,810 | |
TTAN | |||||
Series 2021-MHC, Class A (1 month LIBOR + 0.850%) (B)(C) | 0.960 | 03-15-38 | 300,000 | 300,749 | |
Verus Securitization Trust | |||||
Series 2021-3, Class A1 (C)(I) | 1.046 | 06-25-66 | 633,570 | 634,687 | |
WaMu Mortgage Pass-Through Certificates | |||||
Series 2005-AR1, Class A1A (1 month LIBOR + 0.640%) (B) | 0.749 | 01-25-45 | 408,042 | 405,752 | |
WFRBS Commercial Mortgage Trust | |||||
Series 2012-C9, Class E (C)(I) | 4.811 | 11-15-45 | 400,000 | 351,509 | |
U.S. Government Agency 0.2% | 284,963 | ||||
Federal Home Loan Mortgage Corp. | |||||
Series 2015-SC02, Class 1A | 3.000 | 09-25-45 | 70,695 | 71,259 | |
Series 4013, Class DK | 3.000 | 02-15-31 | 209,775 | 213,704 | |
Asset backed securities 2.9% | $4,617,295 | ||||
(Cost $4,555,332) | |||||
Asset backed securities 2.9% | 4,617,295 | ||||
Aqua Finance Trust | |||||
Series 2019-A, Class A (C) | 3.140 | 07-16-40 | 923,780 | 949,358 | |
Drive Auto Receivables Trust | |||||
Series 2019-1, Class C | 3.780 | 04-15-25 | 249,968 | 251,977 | |
Invitation Homes Trust | |||||
Series 2018-SFR3, Class A (1 month LIBOR + 1.000%) (B)(C) | 1.108 | 07-17-37 | 813,436 | 814,958 | |
SMB Private Education Loan Trust | |||||
Series 2015-B, Class A3 (1 month LIBOR + 1.750%) (B)(C) | 1.856 | 05-17-32 | 900,000 | 910,952 | |
Series 2017-B, Class A2B (1 month LIBOR + 0.750%) (B)(C) | 0.856 | 10-15-35 | 443,306 | 444,953 | |
SoFi Professional Loan Program LLC | |||||
Series 2016-C, Class A1 (1 month LIBOR + 1.100%) (B)(C) | 1.209 | 10-27-36 | 307,701 | 309,014 | |
Series 2016-D, Class A1 (1 month LIBOR + 0.950%) (B)(C) | 1.059 | 01-25-39 | 176,863 | 177,527 | |
Towd Point Mortgage Trust | |||||
Series 2018-4, Class A1 (C)(I) | 3.000 | 06-25-58 | 729,981 | 758,556 | |
38 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Common stocks 0.0% | $8,734 | ||||
(Cost $98,223) | |||||
Energy 0.0% | 8,734 | ||||
Energy equipment and services 0.0% | |||||
Paragon Offshore PLC, Litigation Trust A (J)(K) | 2,695 | 270 | |||
Paragon Offshore PLC, Litigation Trust B (K) | 1,348 | 8,401 | |||
Oil, gas and consumable fuels 0.0% | |||||
Euronav NV | 7 | 61 | |||
Southcross Holdings LP, Class A (J)(K) | 246 | 2 |
Par value^ | Value | ||||
Escrow certificates 0.0% | $46 | ||||
(Cost $491,686) | |||||
Alta Mesa Holdings LP (J)(K) | 460,000 | 46 | |||
Texas Competitive Electric Holdings Company LLC (J)(K) | 10,820,544 | 0 | |||
Yield*(%) | Maturity date | Par value^ | Value | ||
Short-term investments 1.2% | $1,857,353 | ||||
(Cost $1,857,212) | |||||
Foreign government 0.0% | 29,696 | ||||
Egypt Treasury Bill | 11.812 | 09-28-21 | EGP | 475,000 | 29,696 |
Yield (%) | Shares | Value | |||
Short-term funds 1.2% | 1,827,657 | ||||
State Street Institutional Treasury Plus Money Market Fund, Premier Class | 0.0101(L) | 1,827,657 | 1,827,657 |
Total investments (Cost $155,107,726) 99.3% | $154,992,892 | ||||
Other assets and liabilities, net 0.7% | 1,154,546 | ||||
Total net assets 100.0% | $156,147,438 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Currency Abbreviations | |
BRL | Brazilian Real |
CLP | Chilean Peso |
CNY | Chinese Yuan Renminbi |
COP | Colombian Peso |
CZK | Czech Republic Koruna |
EGP | Egyptian Pound |
EUR | Euro |
IDR | Indonesian Rupiah |
KZT | Kazakhstan Tenge |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 39 |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
PEN | Peruvian Nuevo Sol |
PLN | Polish Zloty |
RON | Romanian New Leu |
RUB | Russian Ruble |
THB | Thai Bhat |
TRY | Turkish Lira |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Security Abbreviations and Legend | |
CMT | Constant Maturity Treasury |
LIBOR | London Interbank Offered Rate |
PIK | Pay-in-Kind Security - Represents a payment-in-kind which may pay interest in additional par and/or cash. Rates shown are the current rate and most recent payment rate. |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced. A forward mortgage-backed securities trade issued by a U.S. Government Agency, to be delivered at an agreed-upon future settlement date. |
(A) | Security purchased or sold on a when-issued or delayed delivery basis. |
(B) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
(C) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $62,031,956 or 39.7% of the fund’s net assets as of 7-31-21. |
(D) | Zero coupon bonds are issued at a discount from their principal amount in lieu of paying interest periodically. Rate shown is the effective yield at period end. |
(E) | Non-income producing - Issuer is in default. |
(F) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(G) | Term loans are variable rate obligations. The coupon rate shown represents the rate at period end. |
(H) | This position represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate, which is disclosed as TBD (To Be Determined). |
(I) | Variable or floating rate security, the interest rate of which adjusts periodically based on a weighted average of interest rates and prepayments on the underlying pool of assets. The interest rate shown is the current rate as of period end. |
(J) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Refer to Note 2 to the financial statements. |
(K) | Non-income producing security. |
(L) | The rate shown is the annualized seven-day yield as of 7-31-21. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
40 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) |
2-Year U.S. Treasury Note Futures | 170 | Long | Sep 2021 | $37,513,535 | $37,511,563 | $(1,972) |
5-Year U.S. Treasury Note Futures | 394 | Long | Sep 2021 | 48,740,524 | 49,031,453 | 290,929 |
Ultra U.S. Treasury Bond Futures | 164 | Short | Sep 2021 | (30,236,878) | (32,723,125) | (2,486,247) |
$(2,197,290) |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
AUD | 1,130,000 | USD | 841,666 | GSI | 8/9/2021 | — | $(12,391) |
AUD | 1,070,000 | USD | 797,574 | CITI | 8/16/2021 | — | (12,304) |
BRL | 208,000 | USD | 41,823 | CITI | 8/3/2021 | — | (1,886) |
BRL | 286,000 | USD | 57,467 | GSI | 8/3/2021 | — | (2,554) |
BRL | 208,000 | USD | 39,929 | CITI | 9/2/2021 | — | (155) |
BRL | 286,000 | USD | 54,923 | GSI | 9/2/2021 | — | (233) |
CLP | 43,215,592 | USD | 56,726 | CITI | 10/29/2021 | $60 | — |
CZK | 1,113,452 | USD | 53,415 | CITI | 8/6/2021 | — | (1,625) |
CZK | 1,393,750 | USD | 66,854 | GSI | 8/6/2021 | — | (2,027) |
CZK | 1,319,792 | USD | 63,307 | JPM | 8/6/2021 | — | (1,919) |
CZK | 593,452 | USD | 27,202 | CITI | 10/6/2021 | 377 | — |
CZK | 1,393,750 | USD | 63,893 | GSI | 10/6/2021 | 879 | — |
CZK | 1,319,792 | USD | 60,490 | JPM | 10/6/2021 | 845 | — |
EUR | 360,000 | USD | 426,090 | GSI | 8/2/2021 | 960 | — |
EUR | 2,780,000 | USD | 3,282,204 | JPM | 9/10/2021 | 18,017 | — |
EUR | 100,363 | USD | 118,846 | JPM | 9/30/2021 | 346 | — |
HUF | 19,045,000 | USD | 67,062 | CITI | 8/6/2021 | — | (4,088) |
HUF | 34,357,150 | USD | 121,164 | GSI | 8/6/2021 | — | (7,558) |
HUF | 15,355,850 | USD | 54,114 | JPM | 8/6/2021 | — | (3,338) |
HUF | 19,045,000 | USD | 62,088 | CITI | 10/6/2021 | 808 | — |
HUF | 34,357,150 | USD | 112,012 | GSI | 10/6/2021 | 1,453 | — |
JPY | 185,270,000 | USD | 1,682,066 | CITI | 8/16/2021 | 6,891 | — |
JPY | 40,000,000 | USD | 363,135 | JPM | 9/10/2021 | 1,584 | — |
PLN | 133,000 | USD | 36,502 | CITI | 8/6/2021 | — | (1,978) |
PLN | 495,266 | USD | 135,991 | GSI | 8/6/2021 | — | (7,432) |
PLN | 100,000 | USD | 26,258 | JPM | 8/6/2021 | — | (301) |
PLN | 416,266 | USD | 107,215 | GSI | 10/6/2021 | 859 | — |
PLN | 100,000 | USD | 25,734 | JPM | 10/6/2021 | 229 | — |
RSD | 5,500,000 | USD | 55,508 | GSI | 8/6/2021 | — | (18) |
RSD | 5,500,000 | USD | 55,055 | GSI | 11/8/2021 | 381 | — |
RUB | 4,091,725 | USD | 54,773 | GSI | 9/30/2021 | 636 | — |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 41 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
THB | 3,105,000 | USD | 97,549 | CITI | 9/29/2021 | — | $(3,106) |
THB | 4,219,255 | USD | 131,629 | GSI | 9/29/2021 | — | (3,294) |
USD | 40,085 | BRL | 208,000 | CITI | 8/3/2021 | $148 | — |
USD | 55,138 | BRL | 286,000 | GSI | 8/3/2021 | 225 | — |
USD | 137,472 | CNY | 893,396 | HUS | 8/30/2021 | — | (442) |
USD | 144,824 | COP | 550,178,000 | CITI | 8/30/2021 | 3,159 | — |
USD | 52,120 | CZK | 1,113,452 | CITI | 8/6/2021 | 330 | — |
USD | 63,933 | CZK | 1,393,750 | GSI | 8/6/2021 | — | (894) |
USD | 60,530 | CZK | 1,319,792 | JPM | 8/6/2021 | — | (858) |
USD | 427,835 | EUR | 360,000 | JPM | 8/2/2021 | 785 | — |
USD | 593,830 | EUR | 496,514 | JPM | 9/30/2021 | 4,163 | — |
USD | 62,143 | HUF | 19,045,000 | CITI | 8/6/2021 | — | (831) |
USD | 112,106 | HUF | 34,357,150 | GSI | 8/6/2021 | — | (1,500) |
USD | 53,955 | HUF | 15,355,850 | JPM | 8/6/2021 | 3,179 | — |
USD | 45,534 | MXN | 932,000 | GSI | 10/29/2021 | — | (726) |
USD | 36,263 | PLN | 133,000 | CITI | 8/6/2021 | 1,740 | — |
USD | 127,845 | PLN | 495,266 | GSI | 8/6/2021 | — | (714) |
USD | 25,727 | PLN | 100,000 | JPM | 8/6/2021 | — | (231) |
USD | 156,151 | RON | 651,410 | CITI | 9/14/2021 | — | (768) |
USD | 24,341 | RON | 101,590 | JPM | 9/14/2021 | — | (132) |
USD | 55,110 | RSD | 5,500,000 | GSI | 8/6/2021 | — | (380) |
USD | 120,001 | ZAR | 1,666,664 | GSI | 8/17/2021 | 6,440 | — |
USD | 113,013 | ZAR | 1,666,664 | GSI | 10/18/2021 | 346 | — |
ZAR | 1,666,664 | USD | 113,936 | GSI | 8/17/2021 | — | (375) |
$54,840 | $(74,058) |
Credit default swaps - Buyer | ||||||||||
Counterparty (OTC)/ Centrally cleared | Reference obligation | Notional amount | Currency | USD notional amount | Pay fixed rate | Fixed payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Centrally cleared | CDX.EM.35 | 19,000,000 | USD | $19,000,000 | 1.000% | Quarterly | Jun 2026 | $595,256 | $(46,668) | $548,588 |
Centrally cleared | CDX.NA.IG.36 | 13,200,000 | USD | 13,200,000 | 1.000% | Quarterly | Jun 2026 | (278,324) | (56,215) | (334,539) |
$32,200,000 | $316,932 | $(102,883) | $214,049 |
42 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Credit default swaps - Seller | |||||||||||
Counterparty (OTC)/ Centrally cleared | Reference obligation | Implied credit spread | Notional amount | Currency | USD notional amount | Received fixed rate | Fixed payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Centrally cleared | CDX.NA.HY.36 | 2.939% | 6,150,000 | USD | $6,150,000 | 5.000% | Quarterly | Jun 2026 | $537,845 | $59,896 | $597,741 |
$6,150,000 | $537,845 | $59,896 | $597,741 |
Derivatives Currency Abbreviations | |
AUD | Australian Dollar |
BRL | Brazilian Real |
CLP | Chilean Peso |
CNY | Chinese Yuan Renminbi |
COP | Colombian Peso |
CZK | Czech Republic Koruna |
EUR | Euro |
HUF | Hungarian Forint |
JPY | Japanese Yen |
MXN | Mexican Peso |
PLN | Polish Zloty |
RON | Romanian New Leu |
RUB | Russian Ruble |
THB | Thai Bhat |
USD | U.S. Dollar |
ZAR | South African Rand |
Derivatives Abbreviations | |
CITI | Citibank, N.A. |
GSI | Goldman Sachs International |
HUS | HSBC Bank USA, N.A. |
JPM | JPMorgan Chase Bank, N.A. |
OTC | Over-the-counter |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 43 |
Assets | |
Unaffiliated investments, at value (Cost $155,107,726) | $154,992,892 |
Receivable for centrally cleared swaps | 869,073 |
Unrealized appreciation on forward foreign currency contracts | 54,840 |
Cash | 52,736 |
Foreign currency, at value (Cost $4,708) | 5,755 |
Collateral held at broker for futures contracts | 813,203 |
Interest receivable | 1,203,175 |
Receivable for fund shares sold | 85,888 |
Receivable for investments sold | 3,235,634 |
Other assets | 62,127 |
Total assets | 161,375,323 |
Liabilities | |
Unrealized depreciation on forward foreign currency contracts | 74,058 |
Payable for futures variation margin | 74,703 |
Distributions payable | 5,003 |
Payable for investments purchased | 1,802,263 |
Payable for delayed delivery securities purchased | 1,675,876 |
Payable for fund shares repurchased | 1,150,324 |
Payable to affiliates | |
Accounting and legal services fees | 1,148 |
Transfer agent fees | 14,744 |
Trustees’ fees | 892 |
Other liabilities and accrued expenses | 428,874 |
Total liabilities | 5,227,885 |
Net assets | $156,147,438 |
Net assets consist of | |
Paid-in capital | $223,076,480 |
Total distributable earnings (loss) | (66,929,042) |
Net assets | $156,147,438 |
44 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($83,090,281 ÷ 8,475,339 shares)1 | $9.80 |
Class C ($3,396,320 ÷ 346,455 shares)1 | $9.80 |
Class I ($55,236,560 ÷ 5,641,911 shares) | $9.79 |
Class R6 ($6,677,912 ÷ 681,174 shares) | $9.80 |
Class NAV ($7,746,365 ÷ 789,614 shares) | $9.81 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 97.5%)2 | $10.05 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 45 |
Investment income | |
Interest | $16,745,918 |
Securities lending | 5,740 |
Dividends | 1,707 |
Less foreign taxes withheld | (36,163) |
Total investment income | 16,717,202 |
Expenses | |
Investment management fees | 3,437,106 |
Distribution and service fees | 273,057 |
Accounting and legal services fees | 64,453 |
Transfer agent fees | 155,425 |
Trustees’ fees | 12,833 |
Custodian fees | 130,907 |
State registration fees | 79,105 |
Printing and postage | 35,055 |
Professional fees | 337,838 |
Other | 39,398 |
Total expenses | 4,565,177 |
Less expense reductions | (38,154) |
Net expenses | 4,527,023 |
Net investment income | 12,190,179 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 15,861,267 |
Affiliated investments | (432) |
Futures contracts | 10,940,501 |
Forward foreign currency contracts | (270,689) |
Swap contracts | (6,922,496) |
19,608,151 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (4,466,357) |
Futures contracts | (442,932) |
Forward foreign currency contracts | 566,132 |
Swap contracts | 4,526,068 |
182,911 | |
Net realized and unrealized gain | 19,791,062 |
Increase in net assets from operations | $31,981,241 |
46 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Year ended 7-31-21 | Year ended 7-31-20 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $12,190,179 | $27,239,854 |
Net realized gain (loss) | 19,608,151 | (3,556,748) |
Change in net unrealized appreciation (depreciation) | 182,911 | (9,401,630) |
Increase in net assets resulting from operations | 31,981,241 | 14,281,476 |
Distributions to shareholders | ||
From earnings | ||
Class A | (1,731,173) | (1,660,755) |
Class C | (47,876) | (57,517) |
Class I | (1,232,648) | (920,529) |
Class R21 | — | (416) |
Class R41 | — | (428) |
Class R6 | (181,676) | (171,361) |
Class NAV | (7,684,752) | (15,041,141) |
From tax return of capital | ||
Class A | — | (809,804) |
Class C | — | (28,046) |
Class I | — | (448,861) |
Class R6 | — | (83,557) |
Class NAV | — | (7,334,239) |
Total distributions | (10,878,125) | (26,556,654) |
From fund share transactions | (533,789,535) | (196,250,160) |
Total decrease | (512,686,419) | (208,525,338) |
Net assets | ||
Beginning of year | 668,833,857 | 877,359,195 |
End of year | $156,147,438 | $668,833,857 |
1 | Class R2 and Class R4 shares were fully redeemed on 10-29-19. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 47 |
CLASS A SHARES Period ended | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 | 7-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.50 | $9.57 | $9.51 | $9.74 | $9.57 |
Net investment income1 | 0.23 | 0.29 | 0.35 | 0.32 | 0.29 |
Net realized and unrealized gain (loss) on investments | 0.28 | (0.07) | 0.06 | (0.23) | 0.17 |
Total from investment operations | 0.51 | 0.22 | 0.41 | 0.09 | 0.46 |
Less distributions | |||||
From net investment income | (0.21) | (0.19) | (0.35) | (0.32) | (0.29) |
From tax return of capital | — | (0.10) | — | — | — |
Total distributions | (0.21) | (0.29) | (0.35) | (0.32) | (0.29) |
Net asset value, end of period | $9.80 | $9.50 | $9.57 | $9.51 | $9.74 |
Total return (%)2,3 | 5.40 | 2.34 | 4.45 | 0.91 | 4.85 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $83 | $74 | $92 | $60 | $37 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.28 | 1.22 | 1.20 | 1.18 | 1.17 |
Expenses including reductions | 1.27 | 1.21 | 1.19 | 1.17 | 1.16 |
Net investment income | 2.43 | 3.13 | 3.69 | 3.30 | 2.99 |
Portfolio turnover (%) | 71 | 62 | 59 | 68 | 77 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
48 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 | 7-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.50 | $9.57 | $9.51 | $9.74 | $9.57 |
Net investment income1 | 0.16 | 0.23 | 0.29 | 0.26 | 0.24 |
Net realized and unrealized gain (loss) on investments | 0.28 | (0.08) | 0.06 | (0.24) | 0.15 |
Total from investment operations | 0.44 | 0.15 | 0.35 | 0.02 | 0.39 |
Less distributions | |||||
From net investment income | (0.14) | (0.15) | (0.29) | (0.25) | (0.22) |
From tax return of capital | — | (0.07) | — | — | — |
Total distributions | (0.14) | (0.22) | (0.29) | (0.25) | (0.22) |
Net asset value, end of period | $9.80 | $9.50 | $9.57 | $9.51 | $9.74 |
Total return (%)2,3 | 4.68 | 1.64 | 3.74 | 0.24 | 4.15 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $3 | $3 | $3 | $3 | $3 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.98 | 1.92 | 1.90 | 1.88 | 1.87 |
Expenses including reductions | 1.97 | 1.91 | 1.89 | 1.87 | 1.86 |
Net investment income | 1.73 | 2.45 | 3.12 | 2.72 | 2.44 |
Portfolio turnover (%) | 71 | 62 | 59 | 68 | 77 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 49 |
CLASS I SHARES Period ended | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 | 7-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.49 | $9.56 | $9.49 | $9.73 | $9.56 |
Net investment income1 | 0.26 | 0.32 | 0.38 | 0.36 | 0.33 |
Net realized and unrealized gain (loss) on investments | 0.28 | (0.08) | 0.07 | (0.25) | 0.16 |
Total from investment operations | 0.54 | 0.24 | 0.45 | 0.11 | 0.49 |
Less distributions | |||||
From net investment income | (0.24) | (0.20) | (0.38) | (0.35) | (0.32) |
From tax return of capital | — | (0.11) | — | — | — |
Total distributions | (0.24) | (0.31) | (0.38) | (0.35) | (0.32) |
Net asset value, end of period | $9.79 | $9.49 | $9.56 | $9.49 | $9.73 |
Total return (%)2 | 5.73 | 2.65 | 4.87 | 1.13 | 5.21 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $55 | $42 | $37 | $37 | $33 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.98 | 0.92 | 0.91 | 0.88 | 0.86 |
Expenses including reductions | 0.97 | 0.91 | 0.90 | 0.87 | 0.85 |
Net investment income | 2.76 | 3.44 | 4.09 | 3.70 | 3.44 |
Portfolio turnover (%) | 71 | 62 | 59 | 68 | 77 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
50 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 | 7-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.50 | $9.57 | $9.50 | $9.74 | $9.57 |
Net investment income1 | 0.26 | 0.33 | 0.40 | 0.37 | 0.34 |
Net realized and unrealized gain (loss) on investments | 0.29 | (0.08) | 0.06 | (0.25) | 0.16 |
Total from investment operations | 0.55 | 0.25 | 0.46 | 0.12 | 0.50 |
Less distributions | |||||
From net investment income | (0.25) | (0.21) | (0.39) | (0.36) | (0.33) |
From tax return of capital | — | (0.11) | — | — | — |
Total distributions | (0.25) | (0.32) | (0.39) | (0.36) | (0.33) |
Net asset value, end of period | $9.80 | $9.50 | $9.57 | $9.50 | $9.74 |
Total return (%)2 | 5.84 | 2.77 | 4.99 | 1.24 | 5.33 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $7 | $7 | $7 | $6 | $2 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.88 | 0.81 | 0.79 | 0.78 | 0.77 |
Expenses including reductions | 0.87 | 0.80 | 0.79 | 0.77 | 0.74 |
Net investment income | 2.81 | 3.56 | 4.22 | 3.85 | 3.56 |
Portfolio turnover (%) | 71 | 62 | 59 | 68 | 77 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 51 |
CLASS NAV SHARES Period ended | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 | 7-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.50 | $9.57 | $9.51 | $9.75 | $9.57 |
Net investment income1 | 0.25 | 0.34 | 0.40 | 0.37 | 0.34 |
Net realized and unrealized gain (loss) on investments | 0.31 | (0.08) | 0.05 | (0.25) | 0.17 |
Total from investment operations | 0.56 | 0.26 | 0.45 | 0.12 | 0.51 |
Less distributions | |||||
From net investment income | (0.25) | (0.22) | (0.39) | (0.36) | (0.33) |
From tax return of capital | — | (0.11) | — | — | — |
Total distributions | (0.25) | (0.33) | (0.39) | (0.36) | (0.33) |
Net asset value, end of period | $9.81 | $9.50 | $9.57 | $9.51 | $9.75 |
Total return (%)2 | 5.96 | 2.68 | 5.00 | 1.25 | 5.43 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $8 | $542 | $738 | $853 | $1,156 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 0.87 | 0.80 | 0.78 | 0.77 | 0.75 |
Expenses including reductions | 0.86 | 0.79 | 0.77 | 0.76 | 0.74 |
Net investment income | 2.55 | 3.58 | 4.24 | 3.81 | 3.55 |
Portfolio turnover (%) | 71 | 62 | 59 | 68 | 77 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
52 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
ANNUAL REPORT | JOHN HANCOCK Short Duration Credit Opportunities Fund | 53 |
Total value at 7-31-21 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
U.S. Government and Agency obligations | $1,681,996 | — | $1,681,996 | — |
Foreign government obligations | 20,195,287 | — | 20,195,287 | — |
Corporate bonds | 59,573,431 | — | 59,573,431 | — |
Term loans | 32,748,356 | — | 32,748,356 | — |
Collateralized mortgage obligations | 34,310,394 | — | 34,310,394 | — |
Asset backed securities | 4,617,295 | — | 4,617,295 | — |
Common stocks | 8,734 | $61 | 8,401 | $272 |
Escrow certificates | 46 | — | — | 46 |
Short-term investments | 1,857,353 | 1,827,657 | 29,696 | — |
Total investments in securities | $154,992,892 | $1,827,718 | $153,164,856 | $318 |
54 | JOHN HANCOCK Short Duration Credit Opportunities Fund | ANNUAL REPORT |
Total value at 7-31-21 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Derivatives: | ||||
Assets | ||||
Futures | $290,929 | $290,929 | — | — |
Forward foreign currency contracts | 54,840 | — | $54,840 | — |
Swap contracts | 1,146,329 | — | 1,146,329 | — |
Liabilities | ||||
Futures | (2,488,219) | (2,488,219) | — | — |
Forward foreign currency contracts | (74,058) | — | (74,058) | — |
Swap contracts | (334,539) | — | (334,539) | — |
Level 3 includes securities valued at $0. Refer to Fund’s investments. |
ANNUAL REPORT | JOHN HANCOCK Short Duration Credit Opportunities Fund | 55 |
56 | JOHN HANCOCK Short Duration Credit Opportunities Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Short Duration Credit Opportunities Fund | 57 |
July 31, 2021 | July 31, 2020 | |
Ordinary income | $10,878,125 | $17,852,147 |
Return of capital | — | 8,704,507 |
Total | $10,878,125 | $26,556,654 |
58 | JOHN HANCOCK Short Duration Credit Opportunities Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Short Duration Credit Opportunities Fund | 59 |
60 | JOHN HANCOCK Short Duration Credit Opportunities Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Short Duration Credit Opportunities Fund | 61 |
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
Interest rate | Receivable/payable for futures variation margin1 | Futures | $290,929 | $(2,488,219) |
Currency | Unrealized appreciation (depreciation) on forward foreign currency contracts | Forward foreign currency contracts | 54,840 | (74,058) |
Credit | Swap contracts, at value2 | Credit default swaps | 1,146,329 | (334,539) |
$1,492,098 | $(2,896,816) |
1 | Reflects cumulative appreciation/depreciation on open futures as disclosed in the Derivatives section of Fund’s investments. Only the year end variation margin receivable/payable is separately reported on the Statement of assets and liabilities. |
2 | Reflects cumulative value of swap contracts. Receivable/payable for centrally cleared swaps, which includes value and margin, are shown separately on the Statement of assets and liabilities. |
Statement of operations location - Net realized gain (loss) on: | |||||
Risk | Unaffiliated investments and foreign currency transactions1 | Futures contracts | Forward foreign currency contracts | Swap contracts | Total |
Interest rate | — | $10,940,501 | — | — | $10,940,501 |
Currency | $(78,095) | — | $(270,689) | — | (348,784) |
Credit | — | — | — | $(6,922,496) | (6,922,496) |
Total | $(78,095) | $10,940,501 | $(270,689) | $(6,922,496) | $3,669,221 |
1 | Realized gain/loss associated with purchased options is included in this caption on the Statement of operations. |
62 | JOHN HANCOCK Short Duration Credit Opportunities Fund | ANNUAL REPORT |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | |||||
Risk | Unaffiliated investments and translation of assets and liabilities in foreign currencies1 | Futures contracts | Forward foreign currency contracts | Swap contracts | Total |
Interest rate | — | $(442,932) | — | $93,305 | $(349,627) |
Currency | $77,147 | — | $566,132 | — | 643,279 |
Credit | — | — | — | 4,432,763 | 4,432,763 |
Total | $77,147 | $(442,932) | $566,132 | $4,526,068 | $4,726,415 |
1 | Change in unrealized appreciation/depreciation associated with purchased options is included in this caption on the Statement of operations. |
ANNUAL REPORT | JOHN HANCOCK Short Duration Credit Opportunities Fund | 63 |
Class | Expense reduction |
Class A | $6,667 |
Class C | 272 |
Class I | 4,152 |
Class | Expense reduction |
Class R6 | $590 |
Class NAV | 26,473 |
Total | $38,154 |
Class | Rule 12b-1 Fee |
Class A | 0.30% |
Class C | 1.00% |
64 | JOHN HANCOCK Short Duration Credit Opportunities Fund | ANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class A | $240,277 | $93,168 |
Class C | 32,780 | 3,812 |
Class I | — | 57,702 |
Class R6 | — | 743 |
Total | $273,057 | $155,425 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Borrower | $12,396,551 | 4 | 0.655% | $(902) |
Lender | 17,366,667 | 3 | 0.660% | 955 |
Year Ended 7-31-21 | Year Ended 7-31-20 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 6,242,191 | $60,610,689 | 8,452,305 | $79,646,832 |
Distributions reinvested | 177,560 | 1,729,847 | 263,965 | 2,467,286 |
Repurchased | (5,729,038) | (55,619,723) | (10,500,993) | (98,213,130) |
Net increase (decrease) | 690,713 | $6,720,813 | (1,784,723) | $(16,099,012) |
Class C shares | ||||
Sold | 161,872 | $1,575,697 | 149,830 | $1,419,408 |
Distributions reinvested | 4,903 | 47,753 | 9,154 | 85,423 |
Repurchased | (177,955) | (1,725,571) | (165,701) | (1,485,702) |
Net increase (decrease) | (11,180) | $(102,121) | (6,717) | $19,129 |
ANNUAL REPORT | JOHN HANCOCK Short Duration Credit Opportunities Fund | 65 |
Year Ended 7-31-21 | Year Ended 7-31-20 | |||
Shares | Amount | Shares | Amount | |
Class I shares | ||||
Sold | 3,233,900 | $31,550,917 | 2,734,927 | $25,661,567 |
Distributions reinvested | 124,000 | 1,206,785 | 146,868 | 1,369,080 |
Repurchased | (2,155,007) | (21,009,949) | (2,268,718) | (21,025,267) |
Net increase | 1,202,893 | $11,747,753 | 613,077 | $6,005,380 |
Class R2 shares1 | ||||
Repurchased | — | — | (5,155) | $(49,106) |
Net decrease | — | — | (5,155) | $(49,106) |
Class R4 shares1 | ||||
Repurchased | — | — | (5,155) | $(49,105) |
Net decrease | — | — | (5,155) | $(49,105) |
Class R6 shares | ||||
Sold | 194,940 | $1,897,939 | 243,307 | $2,280,858 |
Distributions reinvested | 18,669 | 181,676 | 27,302 | 254,918 |
Repurchased | (303,649) | (2,954,943) | (267,178) | (2,475,435) |
Net increase (decrease) | (90,040) | $(875,328) | 3,431 | $60,341 |
Class NAV shares | ||||
Sold | 1,444,867 | $13,918,830 | 1,853,533 | $17,353,149 |
Distributions reinvested | 794,432 | 7,684,752 | 2,392,622 | 22,375,380 |
Repurchased | (58,489,149) | (572,884,234) | (24,311,975) | (225,866,316) |
Net decrease | (56,249,850) | $(551,280,652) | (20,065,820) | $(186,137,787) |
Total net decrease | (54,457,464) | $(533,789,535) | (21,251,062) | $(196,250,160) |
1 | Class R2 and Class R4 shares were fully redeemed on 10-29-19. |
66 | JOHN HANCOCK Short Duration Credit Opportunities Fund | ANNUAL REPORT |
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
John Hancock Collateral Trust* | — | — | $6,612,611 | $(6,612,179) | $(432) | — | $5,740 | — | — |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
ANNUAL REPORT | JOHN HANCOCK Short Duration Credit Opportunities Fund | 67 |
68 | JOHN HANCOCK Short Duration Credit Opportunities Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 69 |
70 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 71 |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
72 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 73 |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated as arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
74 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the fund (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the fund’s Advisor and Subadvisor. |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 75 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund is being monitored and/or reasonably addressed, as appropriate; |
76 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 77 |
• | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
• | The Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund; |
• | The Fund did not report any breaches of the 15% limit on illiquid investments that would require reporting to the Securities and Exchange Commission; |
• | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
• | The Chief Compliance Officer’s office performed audit testing of the LRMP which resulted in an assessment that the LRMP’s control environment was deemed to be operating effectively and in compliance with the Board approved procedures. |
78 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 79 |
Independent Trustees | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, Born: 1945 | 2005 | 192 |
Trustee and Chairperson of the Board | ||
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. | ||
Charles L. Bardelis,2 Born: 1941 | 2005 | 192 |
Trustee | ||
Director, Island Commuter Corp. (marine transport). Trustee of various trusts within the John Hancock Fund Complex (since 1988). | ||
James R. Boyle, Born: 1959 | 2015 | 192 |
Trustee | ||
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||
Peter S. Burgess,2 Born: 1942 | 2005 | 192 |
Trustee | ||
Consultant (financial, accounting, and auditing matters) (since 1999); Certified Public Accountant; Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director, Lincoln Educational Services Corporation (2004-2021); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005). | ||
William H. Cunningham, Born: 1944 | 2012 | 192 |
Trustee | ||
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||
Grace K. Fey, Born: 1946 | 2008 | 192 |
Trustee | ||
Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
80 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Deborah C. Jackson, Born: 1952 | 2012 | 192 |
Trustee | ||
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Board of Directors, Association of Independent Colleges and Universities of Massachusetts (2014-2017); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of American Student Assistance Corporation (1996–2009); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
Steven R. Pruchansky, Born: 1944 | 2012 | 192 |
Trustee and Vice Chairperson of the Board | ||
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. | ||
Frances G. Rathke,2,* Born: 1960 | 2020 | 192 |
Trustee | ||
Board Member, Oatly Group AB (plant-based drink company) (since 2021): Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
Gregory A. Russo, Born: 1949 | 2012 | 192 |
Trustee | ||
Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018) and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002); Chairman and Treasurer, Westchester County, New York, Chamber of Commerce (1986–1992); Director, Treasurer, and Chairman of Audit and Finance Committees, Putnam Hospital Center (1989–1995); Director and Chairman of Fundraising Campaign, United Way of Westchester and Putnam Counties, New York (1990–1995). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 81 |
Non-Independent Trustees3 | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 192 |
President and Non-Independent Trustee | ||
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). | ||
Marianne Harrison, Born: 1963 | 2018 | 192 |
Non-Independent Trustee | ||
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston Medical Center (since 2021); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary’s General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013- 2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012–2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018). |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer | |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). | |
Salvatore Schiavone, Born: 1965 | 2009 |
Treasurer | |
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). | |
Christopher (Kit) Sechler, Born: 1973 | 2018 |
Secretary and Chief Legal Officer | |
Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). |
82 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
Principal officers who are not Trustees (continued) | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
ANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 83 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*,1
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Kumaran K. Damodaran
Matthew Kearns, CFA
Roger M. Lavan, CFA
David A. Oliver, CFA
William W. Perry
Hunter C. Schwarz
Stuart W. Sclater-Booth
David A. Torchia
Peter J. Wilby, CFA
You can also contact us: | ||
800-225-5291 | Regular mail: | Express mail: |
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
84 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | ANNUAL REPORT |
GOVERNANCE FUNDS
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and operate with the highest standards of conduct and integrity.
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MF1745568 | 350A 7/21 |
ITEM 2. CODE OF ETHICS.
(a)As of the end of the fiscal year July 31, 2021 the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Peter S. Burgess is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees:
The aggregate fees billed for professional services rendered by the principal accountant for the audits of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to the following for the fiscal years ended July 31, 2021 and 2020. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund |
| July 31, 2021 |
| July 31, 2020 |
Absolute Return Opportunities Fund (formerly |
|
|
|
|
Diversified Strategies Fund) | $ | 41,992 | $ | 40,987 |
Short Duration Credit Opportunities Fund |
| 93,048 |
| 90,736 |
Total | $ | 135,040 | $ | 131,723 |
(b) Audit-Related Fees
Audit-related fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant. The nature of the services provided was affiliated service provider internal controls reviews and reviews related to supplemental regulatory filings. Amounts billed to the registrant were as follows:
Fund |
| July 31, 2021 |
| July 31, 2020 |
Absolute Return Opportunities Fund (formerly |
|
|
|
|
Diversified Strategies Fund) | $ | 604 | $ | 598 |
Short Duration Credit Opportunities Fund |
| 604 |
| 598 |
Total | $ | 1,208 | $ | 1,196 |
Amounts billed to control affiliates were $116,000 and $216,467 for the fiscal years ended July 31, 2021 and 2020, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to the following for the fiscal years ended July 31, 2021 and 2020. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund |
| July 31, 2021 |
| July 31, 2020 |
Absolute Return Opportunities Fund (formerly |
|
|
|
|
Diversified Strategies Fund) | $ | 3,914 | $ | 3,837 |
Short Duration Credit Opportunities Fund |
| 3,914 |
| 3,837 |
Total | $ | 7,828 | $ | 7,674 |
(d) All Other Fees
The nature of the services comprising all other fees is advisory services provided to the investment manager. Other fees amounted to the following for the fiscal years ended July 31, 2021 and 2020:
Fund |
| July 31, 2021 |
| July 31, 2020 | |
Absolute Return Opportunities Fund (formerly |
|
|
|
|
|
Diversified Strategies Fund) | $ | 89 | $ |
| 89 |
Short Duration Credit Opportunities Fund |
| 89 |
|
| 89 |
Total | $ | 178 |
| $ | 178 |
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees, Tax Fees and All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f)According to the registrant's principal accountant for the fiscal year ended July 31, 2021, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g)The aggregate non-audit fees billed by the registrant's principal accountant for non-audit services rendered to the registrant and rendered to the registrant's control affiliates were $960,465 for the fiscal year ended July 31, 2021 and $1,252,408 for the fiscal year ended July 31, 2020.
(h)The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Peter S. Burgess - Chairman
Charles L. Bardelis
Frances G. Rathke
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)Not applicable.
(b)Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form
N-CSR. See attached "John Hancock Funds – Nominating, Governance and Administration Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
JOHN HANCOCK FUNDS II
/s/ Andrew Arnott
Andrew Arnott
President
Date: September 24, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Andrew Arnott
Andrew Arnott
President
Date: September 24, 2021
/s/ Charles A. Rizzo
Charles A. Rizzo
Chief Financial Officer
Date: September 24, 2021