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- 22441
John Hancock Hedged Equity & Income Fund
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116
(Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-663-4497
Date of fiscal year end: | December 31 |
Date of reporting period: | June 30, 2020 |
ITEM 1. REPORTS TO STOCKHOLDERS.
John Hancock
Hedged Equity & Income Fund
Ticker: HEQ
Semiannual report 6/30/2020
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the fund's shareholder reports such as this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the transfer agent or from your financial intermediary. Instead, the reports will be made available on our website, and you will be notified by mail each time a report is posted and be provided with a website link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you do not need to take any action. You may elect to receive shareholder reports and other communications electronically by calling the transfer agent, Computershare, at 800-852-0218, by going to "Communication Preferences" at computershare.com/investor, or by contacting your financial intermediary.
You may elect to receive all reports in paper, free of charge, at any time. You can inform the transfer agent or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by following the instructions listed above. Your election to receive reports in paper will apply to all funds held with John Hancock Investment Management or your financial intermediary.
Managed distribution plan
The fund has adopted a managed distribution plan (Plan). Under the Plan, the fund makes quarterly distributions of an amount equal to $0.3760 per share. Effective with the September 2020 quarterly distribution, the Board of Trustees voted to amend its current managed distribution plan. The fund will make quarterly distributions of an amount equal to $0.2900 per share, which will be paid quarterly until further notice. The fund may make additional distributions: (i) for purposes of not incurring federal income tax at the fund level of investment company taxable income and net capital gain, if any, not included in such regular distributions; and (ii) for purposes of not incurring federal excise tax on ordinary income and capital gain net income, if any, not included in such regular distributions.
The Plan provides that the Board of Trustees of the fund may amend the terms of the Plan or terminate the Plan at any time without prior notice to the fund's shareholders. The Plan is subject to periodic review by the fund's Board of Trustees.
You should not draw any conclusions about the fund's investment performance from the amount of the fund's distributions or from the terms of the fund's Plan. The fund's total return at NAV is presented in the Financial highlights section.
With each distribution that does not consist solely of net income, the fund will issue a notice to shareholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. The fund may, at times, distribute more than its net investment income and net realized capital gains; therefore, a portion of your distribution may result in a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital does not necessarily reflect the fund's investment performance and should not be confused with yield or income.
A message to shareholders
Dear shareholder,
Heightened fears over the coronavirus (COVID-19) sent global markets tumbling during February and early March. By the end of the first quarter, however, equity markets in the U.S. began to rise. In other parts of the world, the markets' response was mixed, as economic reopenings and central bank policies largely determined the degree of bounce back for the latter half of the six-month period ended June 30, 2020.
Of course, it would be a mistake to consider any market turnarounds a trustworthy signal of assured or swift economic recovery. Dramatic job losses as well as widespread business losses have contributed to projections of a serious setback to global growth in 2020.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I'd like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO's views as of this report's period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Hedged Equity & Income Fund
INVESTMENT OBJECTIVE
The fund seeks to provide total return with a focus on current income and gains and also consisting of long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 6/30/2020 (%)
The MSCI All Country (AC) World Index is a free float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses and sales charges, which would result in lower returns.
The performance data contained within this material represents past performance, which does not guarantee future results.
Investment returns and principal value will fluctuate and a shareholder may sustain losses. Further, the fund's performance at net asset value (NAV) is different from the fund's performance at closing market price because the closing market price is subject to the dynamics of secondary market trading. Market risk may be increased when shares are purchased at a premium to NAV or sold at a discount to NAV. Current month-end performance may be higher or lower than the performance cited. The fund's most recent performance can be found at jhinvestment.com or by calling 800-852-0218.
TOP 10 HOLDINGS AS OF 6/30/2020 (%)
Verizon Communications, Inc. | 1.7 |
TC Energy Corp. | 1.3 |
AXA SA | 1.2 |
Pfizer, Inc. | 1.2 |
Novartis AG | 1.1 |
Taiwan Semiconductor Manufacturing Company, Ltd. | 1.1 |
Philip Morris International, Inc. | 1.0 |
Microsoft Corp. | 1.0 |
Cisco Systems, Inc. | 1.0 |
National Grid PLC | 1.0 |
TOTAL | 11.6 |
As a percentage of net assets. | |
Cash and cash equivalents are not included. |
COUNTRY COMPOSITION AS OF 6/30/2020 (%)
United States | 47.5 |
Japan | 8.7 |
France | 5.7 |
Canada | 5.3 |
United Kingdom | 5.1 |
Switzerland | 3.6 |
Germany | 2.6 |
Netherlands | 2.5 |
Russia | 2.4 |
Italy | 1.6 |
Other countries | 15.0 |
TOTAL | 100.0 |
As a percentage of net assets. |
A note about risks
As is the case with all exchange-listed closed-end funds, shares of this fund may trade at a discount or a premium to the fund's net asset value (NAV). An investment in the fund is subject to investment and market risks, including the possible loss of the entire principal invested. There is no guarantee prior distribution levels will be maintained, and distributions may include a substantial return of capital. A return of capital is the return of all or a portion of a shareholder's investment in the fund. For the fiscal year ended December 31,2019, the fund's aggregate distributions included a return of capital of $0.83 per share, or 55% of aggregate distributions, which could impact the tax treatment of a subsequent sale of fund shares. See the Financial highlights and notes to the financial statements for details of the return of capital and risks associated with distributions made by the fund. The fund's prospectus includes additional information regarding returns of capital and the risks associated with distributions made by the fund, including potential tax implications. The value of a company's equity securities is subject to changes in its financial condition and overall market and economic conditions. Fixed-income investments are subject to interest-rate risk; their value will normally decline as interest rates rise. An issuer of securities held by the fund may default, have its credit rating downgraded, or otherwise perform poorly, which may affect fund performance. Derivatives transactions, including hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Investments in higher-yielding, lower-rated securities include a higher risk of default. The primary risks associated with the use of futures contracts and options are imperfect correlation, unanticipated market movement, and counterparty risk. Cybersecurity incidents may allow an unauthorized party to gain access to fund assets, customer data, or proprietary information, or cause a fund or its service providers to suffer data corruption or lose operational functionality. Similar incidents affecting issuers of a fund's securities may negatively impact performance.
A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund's performance, resulting in losses to your investment.
Shares | Value | ||||
Common stocks 80.6% | $116,454,167 | ||||
(Cost $129,033,368) | |||||
Communication services 10.0% | 14,441,315 | ||||
Diversified telecommunication services 4.9% | |||||
AT&T, Inc. | 18,003 | 544,231 | |||
Bharti Infratel, Ltd. | 9,276 | 27,234 | |||
BT Group PLC | 56,080 | 79,311 | |||
CenturyLink, Inc. | 17,685 | 177,381 | |||
China Telecom Corp., Ltd., H Shares | 325,556 | 91,448 | |||
China Unicom Hong Kong, Ltd. | 195,848 | 106,560 | |||
Deutsche Telekom AG | 10,167 | 170,594 | |||
Hellenic Telecommunications Organization SA | 69,023 | 932,362 | |||
Iliad SA | 2,900 | 566,109 | |||
Koninklijke KPN NV | 388,499 | 1,033,374 | |||
KT Corp. | 5,407 | 106,520 | |||
Magyar Telekom Telecommunications PLC | 40,849 | 49,619 | |||
Nippon Telegraph & Telephone Corp. | 4,969 | 115,775 | |||
Orange SA | 472 | 5,644 | |||
Proximus SADP | 2,840 | 57,871 | |||
Spark New Zealand, Ltd. | 55,134 | 163,123 | |||
Swisscom AG | 287 | 150,503 | |||
Telefonica Deutschland Holding AG | 61,725 | 182,039 | |||
Telefonica SA | 17,245 | 82,479 | |||
Verizon Communications, Inc. (A) | 44,719 | 2,465,340 | |||
Entertainment 0.2% | |||||
Avex, Inc. | 4,600 | 36,390 | |||
DeNA Company, Ltd. | 5,220 | 65,173 | |||
Netflix, Inc. (B) | 262 | 119,220 | |||
Nintendo Company, Ltd. | 114 | 50,966 | |||
Interactive media and services 1.1% | |||||
58.com, Inc., ADR (B) | 932 | 50,272 | |||
Alphabet, Inc., Class A (B) | 503 | 713,279 | |||
Alphabet, Inc., Class C (B) | 80 | 113,089 | |||
Autohome, Inc., ADR | 909 | 68,630 | |||
Baidu, Inc., ADR (B) | 336 | 40,283 | |||
Facebook, Inc., Class A (B) | 2,016 | 457,773 | |||
Gree, Inc. | 19,610 | 84,291 | |||
Z Holdings Corp. | 18,145 | 89,051 | |||
Media 1.6% | |||||
Comcast Corp., Class A | 33,704 | 1,313,782 | |||
Criteo SA, ADR (B) | 3,325 | 37,872 | |||
Fuji Media Holdings, Inc. | 3,475 | 33,593 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 6 |
Shares | Value | ||||
Communication services (continued) | |||||
Media (continued) | |||||
Gendai Agency, Inc. | 1,160 | $2,876 | |||
Metropole Television SA (B) | 4,218 | 47,712 | |||
Nippon Television Holdings, Inc. | 6,470 | 70,076 | |||
Omnicom Group, Inc. | 2,881 | 157,303 | |||
RTL Group SA | 2,058 | 66,026 | |||
Telenet Group Holding NV | 2,721 | 112,114 | |||
Television Francaise 1 (B) | 11,113 | 60,299 | |||
The Interpublic Group of Companies, Inc. | 7,569 | 129,884 | |||
TV Asahi Holdings Corp. | 4,140 | 60,318 | |||
WPP PLC | 13,953 | 108,782 | |||
Zee Entertainment Enterprises, Ltd. | 15,000 | 34,116 | |||
Wireless telecommunication services 2.2% | |||||
Advanced Info Service PCL | 5,905 | 35,538 | |||
China Mobile, Ltd. | 17,290 | 116,743 | |||
Globe Telecom, Inc. | 1,631 | 67,790 | |||
Intouch Holdings PCL | 43,285 | 79,206 | |||
KDDI Corp. | 34,262 | 1,022,280 | |||
Mobile TeleSystems PJSC, ADR | 37,043 | 340,425 | |||
MTN Group, Ltd. | 8,923 | 27,328 | |||
NTT DOCOMO, Inc. | 17,655 | 468,705 | |||
Orange Belgium SA | 3,023 | 49,320 | |||
PLDT, Inc. | 664 | 16,533 | |||
PLDT, Inc., ADR | 694 | 16,941 | |||
SK Telecom Company, Ltd. | 812 | 143,008 | |||
Softbank Corp. | 38,501 | 490,743 | |||
Turkcell Iletisim Hizmetleri AS | 113,352 | 270,244 | |||
VEON, Ltd., ADR | 36,569 | 65,824 | |||
Consumer discretionary 5.1% | 7,408,766 | ||||
Auto components 0.5% | |||||
Aisan Industry Company, Ltd. | 2,180 | 10,711 | |||
Bridgestone Corp. | 7,365 | 237,709 | |||
Exedy Corp. | 4,055 | 60,534 | |||
Hankook Tire & Technology Company, Ltd. | 3,516 | 72,768 | |||
NOK Corp. | 7,165 | 89,243 | |||
Sumitomo Riko Company, Ltd. | 5,480 | 31,825 | |||
Tachi-S Company, Ltd. | 3,540 | 28,568 | |||
Tokai Rika Company, Ltd. | 5,290 | 76,970 | |||
Toyoda Gosei Company, Ltd. | 2,275 | 47,533 | |||
Toyota Boshoku Corp. | 4,180 | 56,367 | |||
Unipres Corp. | 5,600 | 49,113 | |||
Automobiles 1.1% | |||||
Daimler AG | 4,040 | 164,363 |
7 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Consumer discretionary (continued) | |||||
Automobiles (continued) | |||||
Dongfeng Motor Group Company, Ltd., H Shares | 158,610 | $95,657 | |||
Honda Motor Company, Ltd. | 9,650 | 246,979 | |||
Isuzu Motors, Ltd. | 99,812 | 907,025 | |||
Mitsubishi Motors Corp. | 15,420 | 38,217 | |||
Nissan Motor Company, Ltd. | 18,750 | 69,533 | |||
Renault SA (B) | 2,559 | 65,494 | |||
Diversified consumer services 0.1% | |||||
Allstar Co-Invest LLC (B)(C)(D) | 236,300 | 111,061 | |||
Benesse Holdings, Inc. | 440 | 11,801 | |||
Hotels, restaurants and leisure 0.8% | |||||
OPAP SA | 35,817 | 341,332 | |||
Sands China, Ltd. | 198,400 | 781,545 | |||
Starbucks Corp. | 1,517 | 111,636 | |||
Household durables 0.1% | |||||
Funai Electric Company, Ltd. (B) | 7,323 | 34,159 | |||
Nikon Corp. | 7,035 | 59,082 | |||
Internet and direct marketing retail 0.8% | |||||
Amazon.com, Inc. (B) | 377 | 1,040,075 | |||
JD.com, Inc., ADR (B) | 1,581 | 95,145 | |||
Qliro Group AB (B) | 16,909 | 11,794 | |||
Multiline retail 0.1% | |||||
Marks & Spencer Group PLC | 27,267 | 33,437 | |||
Target Corp. | 721 | 86,470 | |||
Specialty retail 1.1% | |||||
CECONOMY AG (B) | 11,163 | 38,949 | |||
Halfords Group PLC | 13,289 | 25,101 | |||
Kingfisher PLC | 40,576 | 111,632 | |||
Nishimatsuya Chain Company, Ltd. | 6,160 | 63,557 | |||
Shimamura Company, Ltd. | 1,540 | 104,307 | |||
The Home Depot, Inc. | 4,524 | 1,133,307 | |||
Tiffany & Company | 562 | 68,530 | |||
Xebio Holdings Company, Ltd. | 5,625 | 43,825 | |||
Textiles, apparel and luxury goods 0.5% | |||||
361 Degrees International, Ltd. | 159,720 | 20,736 | |||
Daphne International Holdings, Ltd. (B) | 224,950 | 3,668 | |||
Sanyo Shokai, Ltd. | 3,060 | 20,276 | |||
VF Corp. | 11,630 | 708,732 | |||
Consumer staples 7.4% | 10,730,361 | ||||
Beverages 0.4% | |||||
Anadolu Efes Biracilik Ve Malt Sanayii AS (B) | 11,547 | 35,918 | |||
Coca-Cola Icecek AS | 7,456 | 47,405 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 8 |
Shares | Value | ||||
Consumer staples (continued) | |||||
Beverages (continued) | |||||
PepsiCo, Inc. | 1,901 | $251,426 | |||
The Coca-Cola Company | 5,769 | 257,759 | |||
Food and staples retailing 1.1% | |||||
Cawachi, Ltd. | 970 | 25,054 | |||
Costco Wholesale Corp. | 691 | 209,518 | |||
J Sainsbury PLC | 48,798 | 126,287 | |||
Jeronimo Martins SGPS SA (B) | 2,586 | 45,255 | |||
Koninklijke Ahold Delhaize NV | 20,482 | 558,218 | |||
METRO AG | 2,337 | 22,179 | |||
Seven & i Holdings Company, Ltd. | 1,233 | 40,336 | |||
The Kroger Company | 2,726 | 92,275 | |||
Walgreens Boots Alliance, Inc. | 2,638 | 111,825 | |||
Walmart, Inc. | 3,291 | 394,196 | |||
Food products 2.9% | |||||
Archer-Daniels-Midland Company | 2,532 | 101,027 | |||
Bunge, Ltd. | 1,274 | 52,400 | |||
Campbell Soup Company | 11,164 | 554,069 | |||
General Mills, Inc. | 13,044 | 804,163 | |||
Hormel Foods Corp. | 3,140 | 151,568 | |||
Kellogg Company | 18,759 | 1,239,220 | |||
Mondelez International, Inc., Class A | 1,125 | 57,521 | |||
Nestle SA | 8,743 | 969,342 | |||
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT (B) | 249,530 | 14,625 | |||
The Hershey Company | 480 | 62,218 | |||
The J.M. Smucker Company | 562 | 59,465 | |||
The Kraft Heinz Company | 4,684 | 149,373 | |||
Household products 0.6% | |||||
Colgate-Palmolive Company | 2,010 | 147,253 | |||
Kimberly-Clark Corp. | 1,454 | 205,523 | |||
The Clorox Company | 633 | 138,861 | |||
The Procter & Gamble Company | 3,204 | 383,102 | |||
Personal products 0.0% | |||||
Kao Corp. | 400 | 31,743 | |||
Tobacco 2.4% | |||||
Altria Group, Inc. | 13,583 | 533,133 | |||
British American Tobacco PLC | 8,732 | 334,897 | |||
ITC, Ltd. (B) | 14,138 | 36,618 | |||
Japan Tobacco, Inc. | 42,143 | 782,712 | |||
KT&G Corp. | 2,988 | 195,135 | |||
Philip Morris International, Inc. | 21,535 | 1,508,742 |
9 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Energy 7.1% | $10,257,159 | ||||
Energy equipment and services 0.1% | |||||
Fugro NV (B) | 4,638 | 18,376 | |||
Saipem SpA | 18,826 | 47,236 | |||
The Drilling Company of 1972 A/S (B) | 249 | 5,280 | |||
Trican Well Service, Ltd. (B) | 22,616 | 13,660 | |||
Oil, gas and consumable fuels 7.0% | |||||
Advantage Oil & Gas, Ltd. (B) | 15,724 | 19,226 | |||
ARC Resources, Ltd. | 8,048 | 27,032 | |||
BP PLC | 48,589 | 186,146 | |||
BP PLC, ADR | 1,763 | 41,113 | |||
Cameco Corp. | 4,995 | 51,216 | |||
Chevron Corp. | 2,422 | 216,115 | |||
Coal India, Ltd. | 146,178 | 258,815 | |||
Enbridge, Inc. | 40,366 | 1,227,393 | |||
Eni SpA | 46,519 | 445,931 | |||
Equinor ASA | 7,430 | 107,034 | |||
Exxon Mobil Corp. | 14,087 | 629,971 | |||
Galp Energia SGPS SA | 87,118 | 1,010,567 | |||
Gazprom PJSC, ADR | 14,892 | 80,715 | |||
Inpex Corp. | 14,940 | 93,289 | |||
Japan Petroleum Exploration Company, Ltd. | 1,565 | 26,473 | |||
Kinder Morgan, Inc. | 17,016 | 258,133 | |||
LUKOIL PJSC, ADR | 6,541 | 485,473 | |||
LUKOIL PJSC, ADR (London Stock Exchange) | 905 | 67,272 | |||
Oil & Natural Gas Corp., Ltd. | 49,249 | 53,575 | |||
ONEOK, Inc. | 1,203 | 39,964 | |||
Ovintiv, Inc. | 2,985 | 28,386 | |||
Petronet LNG, Ltd. | 20,049 | 69,158 | |||
Repsol SA | 27,231 | 240,612 | |||
Royal Dutch Shell PLC, B Shares | 14,917 | 226,146 | |||
Surgutneftegas PJSC, ADR | 157,669 | 849,743 | |||
TC Energy Corp. | 43,310 | 1,850,309 | |||
The Williams Companies, Inc. | 11,159 | 212,244 | |||
TOTAL SA | 33,987 | 1,310,485 | |||
Tourmaline Oil Corp. | 3,865 | 33,793 | |||
YPF SA, ADR | 4,570 | 26,278 | |||
Financials 11.9% | 17,239,856 | ||||
Banks 6.0% | |||||
ABN AMRO Bank NV (E) | 10,896 | 93,767 | |||
AIB Group PLC (B) | 49,012 | 61,885 | |||
Bank Mandiri Persero Tbk PT | 75,192 | 26,109 | |||
Bank of America Corp. | 49,361 | 1,172,324 | |||
Bank of Hangzhou Company, Ltd., Class A | 4,100 | 5,188 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 10 |
Shares | Value | ||||
Financials (continued) | |||||
Banks (continued) | |||||
Bank of Ireland Group PLC (B) | 34,550 | $71,191 | |||
BNP Paribas SA (B) | 4,145 | 165,609 | |||
BPER Banca (B) | 7,839 | 19,597 | |||
CaixaBank SA | 55,172 | 118,029 | |||
Canara Bank (B) | 18,952 | 25,331 | |||
CIMB Group Holdings BHD | 71,832 | 59,925 | |||
Comerica, Inc. | 1,062 | 40,462 | |||
Dah Sing Financial Holdings, Ltd. | 12,970 | 36,512 | |||
DGB Financial Group, Inc. | 9,506 | 40,876 | |||
DNB ASA | 57,840 | 772,019 | |||
Erste Group Bank AG | 2,369 | 55,950 | |||
Huntington Bancshares, Inc. | 7,546 | 68,178 | |||
ING Groep NV | 21,738 | 151,533 | |||
Japan Post Bank Company, Ltd. | 4,640 | 34,509 | |||
JPMorgan Chase & Co. | 1,123 | 105,629 | |||
Kasikornbank PCL | 8,600 | 25,998 | |||
Kasikornbank PCL, NVDR | 17,788 | 53,965 | |||
KB Financial Group, Inc. | 3,821 | 108,171 | |||
Mitsubishi UFJ Financial Group, Inc. | 263,349 | 1,036,416 | |||
Moneta Money Bank AS (E) | 61,447 | 139,169 | |||
People's United Financial, Inc. | 12,227 | 141,466 | |||
Resona Holdings, Inc. | 48,757 | 166,841 | |||
Royal Bank of Canada | 13,217 | 896,743 | |||
Sberbank of Russia PJSC, ADR (B) | 12,861 | 145,844 | |||
Shinhan Financial Group Company, Ltd. | 3,915 | 94,611 | |||
Societe Generale SA (B) | 5,635 | 94,215 | |||
Standard Chartered PLC | 153,957 | 834,570 | |||
Sumitomo Mitsui Financial Group, Inc. | 6,400 | 180,619 | |||
Sumitomo Mitsui Trust Holdings, Inc. | 3,960 | 111,594 | |||
The Bank of Nova Scotia | 27,500 | 1,138,001 | |||
The Tochigi Bank, Ltd. | 11,770 | 17,820 | |||
Unicaja Banco SA (B)(E) | 71,647 | 36,631 | |||
UniCredit SpA (B) | 14,145 | 130,547 | |||
Wells Fargo & Company | 5,906 | 151,194 | |||
Capital markets 1.6% | |||||
CME Group, Inc. | 1,064 | 172,943 | |||
GAM Holding AG (B) | 4,429 | 10,287 | |||
Ichiyoshi Securities Company, Ltd. | 4,710 | 19,953 | |||
IGM Financial, Inc. | 2,292 | 55,696 | |||
Intercontinental Exchange, Inc. | 423 | 38,747 | |||
Julius Baer Group, Ltd. | 1,444 | 60,644 | |||
Nomura Holdings, Inc. | 17,543 | 78,831 | |||
Standard Life Aberdeen PLC | 8,452 | 28,007 |
11 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Capital markets (continued) | |||||
The Carlyle Group, Inc. | 17,144 | $478,318 | |||
UBS Group AG | 117,034 | 1,351,632 | |||
Uranium Participation Corp. (B) | 9,877 | 33,321 | |||
Consumer finance 0.0% | |||||
Provident Financial PLC | 14,420 | 31,530 | |||
Diversified financial services 0.0% | |||||
G-Resources Group, Ltd. (B) | 1,715,680 | 8,439 | |||
M&G PLC | 16,148 | 33,530 | |||
Insurance 4.1% | |||||
Admiral Group PLC | 42 | 1,191 | |||
Ageas SA/NV | 2,304 | 81,653 | |||
Assicurazioni Generali SpA | 27,393 | 416,107 | |||
Aviva PLC | 197,181 | 668,320 | |||
AXA SA | 85,130 | 1,791,383 | |||
Dai-ichi Life Holdings, Inc. | 7,175 | 85,885 | |||
Direct Line Insurance Group PLC | 67,171 | 225,228 | |||
Fidelity National Financial, Inc. | 35 | 1,073 | |||
SCOR SE (B) | 2,175 | 60,070 | |||
Shin Kong Financial Holding Company, Ltd. | 133,259 | 39,037 | |||
Swiss Re AG | 626 | 48,537 | |||
T&D Holdings, Inc. | 17,065 | 146,575 | |||
The Progressive Corp. | 15,227 | 1,219,835 | |||
Tokio Marine Holdings, Inc. | 24,000 | 1,050,552 | |||
Tongyang Life Insurance Company, Ltd. | 8,713 | 21,229 | |||
Mortgage real estate investment trusts 0.2% | |||||
Annaly Capital Management, Inc. | 53,699 | 352,265 | |||
Health care 9.1% | 13,066,979 | ||||
Biotechnology 1.6% | |||||
AbbVie, Inc. | 11,542 | 1,133,194 | |||
Amgen, Inc. | 1,121 | 264,399 | |||
Gilead Sciences, Inc. | 10,667 | 820,719 | |||
Health care equipment and supplies 1.0% | |||||
Abbott Laboratories | 2,998 | 274,107 | |||
Becton, Dickinson and Company | 322 | 77,045 | |||
Coloplast A/S, B Shares | 771 | 120,174 | |||
Hoya Corp. | 125 | 11,970 | |||
Medtronic PLC | 9,560 | 876,652 | |||
ResMed, Inc. | 352 | 67,584 | |||
Health care providers and services 0.3% | |||||
Cardinal Health, Inc. | 2,068 | 107,929 | |||
CVS Health Corp. | 1,581 | 102,718 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 12 |
Shares | Value | ||||
Health care (continued) | |||||
Health care providers and services (continued) | |||||
UnitedHealth Group, Inc. | 909 | $268,110 | |||
Health care technology 0.0% | |||||
AGFA-Gevaert NV (B) | 8,446 | 35,303 | |||
Life sciences tools and services 0.0% | |||||
CMIC Holdings Company, Ltd. | 1,190 | 15,741 | |||
Pharmaceuticals 6.2% | |||||
AstraZeneca PLC | 9,210 | 958,525 | |||
Bristol-Myers Squibb Company | 15,185 | 892,878 | |||
Chugai Pharmaceutical Company, Ltd. | 1,533 | 82,077 | |||
Daiichi Sankyo Company, Ltd. | 279 | 22,820 | |||
Eisai Company, Ltd. | 890 | 70,710 | |||
Eli Lilly & Company | 700 | 114,926 | |||
GlaxoSmithKline PLC | 1,270 | 25,654 | |||
Johnson & Johnson | 4,762 | 669,680 | |||
Kyowa Kirin Company, Ltd. | 20,508 | 539,867 | |||
Merck & Company, Inc. | 17,349 | 1,341,598 | |||
Novartis AG | 18,343 | 1,598,061 | |||
Novo Nordisk A/S, B Shares | 1,139 | 74,203 | |||
Pfizer, Inc. (A) | 52,915 | 1,730,321 | |||
Roche Holding AG | 854 | 295,868 | |||
Sanofi | 1,285 | 131,050 | |||
Takeda Pharmaceutical Company, Ltd. | 9,191 | 330,214 | |||
Zoetis, Inc. | 94 | 12,882 | |||
Industrials 5.8% | 8,359,404 | ||||
Aerospace and defense 0.8% | |||||
BAE Systems PLC | 83,215 | 497,581 | |||
Dassault Aviation SA (B) | 29 | 26,607 | |||
L3Harris Technologies, Inc. | 33 | 5,599 | |||
Lockheed Martin Corp. | 1,737 | 633,866 | |||
Northrop Grumman Corp. | 96 | 29,514 | |||
Air freight and logistics 0.3% | |||||
bpost SA | 3,070 | 20,750 | |||
C.H. Robinson Worldwide, Inc. | 1,311 | 103,648 | |||
PostNL NV | 32,547 | 70,191 | |||
United Parcel Service, Inc., Class B | 1,158 | 128,746 | |||
ZTO Express Cayman, Inc., ADR | 2,819 | 103,485 | |||
Building products 0.2% | |||||
Cie de Saint-Gobain (B) | 6,760 | 243,907 | |||
Zhejiang Weixing New Building Materials Company, Ltd., Class A | 6,300 | 10,405 |
13 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Industrials (continued) | |||||
Commercial services and supplies 0.2% | |||||
Babcock International Group PLC | 15,477 | $59,316 | |||
Prosegur Cia de Seguridad SA | 17,345 | 40,458 | |||
Republic Services, Inc. | 781 | 64,081 | |||
Toppan Forms Company, Ltd. | 4,940 | 49,058 | |||
Waste Management, Inc. | 680 | 72,019 | |||
Construction and engineering 1.3% | |||||
China Machinery Engineering Corp., H Shares | 107,310 | 28,400 | |||
Chiyoda Corp. (B) | 7,225 | 19,071 | |||
Implenia AG | 746 | 27,738 | |||
JGC Holdings Corp. | 7,845 | 82,725 | |||
Raubex Group, Ltd. | 24,521 | 31,265 | |||
Shanghai Construction Group Company, Ltd., Class A | 1,074,000 | 467,736 | |||
Toyo Engineering Corp. (B) | 5,310 | 17,149 | |||
Vinci SA | 12,347 | 1,144,853 | |||
Electrical equipment 0.7% | |||||
Cosel Company, Ltd. | 3,540 | 30,916 | |||
Emerson Electric Company | 14,945 | 927,038 | |||
Ushio, Inc. | 3,920 | 52,371 | |||
Zumtobel Group AG (B) | 5,204 | 37,623 | |||
Industrial conglomerates 0.2% | |||||
3M Company | 1,324 | 206,531 | |||
Machinery 0.3% | |||||
Caterpillar, Inc. | 382 | 48,323 | |||
Hino Motors, Ltd. | 8,990 | 60,994 | |||
Hisaka Works, Ltd. | 3,580 | 24,781 | |||
Kone OYJ, B Shares | 1,113 | 76,763 | |||
Mitsubishi Heavy Industries, Ltd. | 1,845 | 43,561 | |||
OKUMA Corp. | 1,790 | 76,980 | |||
Shibaura Machine Company, Ltd. | 1,083 | 21,748 | |||
The Japan Steel Works, Ltd. | 5,080 | 72,623 | |||
THK Company, Ltd. | 2,610 | 64,983 | |||
Marine 0.2% | |||||
A.P. Moller - Maersk A/S, Series B | 123 | 144,157 | |||
D/S Norden A/S | 4,996 | 67,407 | |||
Pacific Basin Shipping, Ltd. | 338,210 | 49,722 | |||
Professional services 0.6% | |||||
Adecco Group AG | 3,449 | 162,571 | |||
Experian PLC | 15,830 | 555,615 | |||
Hays PLC | 47,290 | 70,027 | |||
Pagegroup PLC | 12,991 | 61,003 | |||
SThree PLC | 8,491 | 28,334 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 14 |
Shares | Value | ||||
Industrials (continued) | |||||
Road and rail 0.2% | |||||
Daqin Railway Company, Ltd., Class A | 288,100 | $287,208 | |||
The Go-Ahead Group PLC | 1,490 | 15,456 | |||
Trading companies and distributors 0.8% | |||||
Mitsubishi Corp. | 9,853 | 208,211 | |||
Rexel SA | 11,613 | 133,098 | |||
SIG PLC | 24,429 | 9,274 | |||
Triton International, Ltd. | 25,192 | 761,806 | |||
Xiamen C & D, Inc., Class A | 53,700 | 61,665 | |||
Transportation infrastructure 0.0% | |||||
Hamburger Hafen und Logistik AG | 1,204 | 20,447 | |||
Information technology 9.3% | 13,414,831 | ||||
Communications equipment 1.3% | |||||
Cisco Systems, Inc. | 31,930 | 1,489,215 | |||
Juniper Networks, Inc. | 9,331 | 213,307 | |||
Motorola Solutions, Inc. | 272 | 38,115 | |||
Nokia OYJ | 37,039 | 161,855 | |||
Electronic equipment, instruments and components 0.3% | |||||
Citizen Watch Company, Ltd. | 18,785 | 61,235 | |||
Enplas Corp. | 1,310 | 28,991 | |||
Foxconn Technology Company, Ltd. | 36,620 | 70,516 | |||
Innolux Corp. | 284,940 | 76,753 | |||
Nichicon Corp. | 9,410 | 65,680 | |||
Nippon Chemi-Con Corp. (B) | 3,860 | 64,967 | |||
PAX Global Technology, Ltd. | 36,337 | 15,918 | |||
IT services 1.6% | |||||
Accenture PLC, Class A | 625 | 134,200 | |||
Broadridge Financial Solutions, Inc. | 1,381 | 174,268 | |||
Fidelity National Information Services, Inc. | 905 | 121,351 | |||
Fujitsu, Ltd. | 1,174 | 137,456 | |||
IBM Corp. | 3,859 | 466,051 | |||
Infosys, Ltd. | 7,611 | 73,758 | |||
Itochu Techno-Solutions Corp. | 3,089 | 116,167 | |||
Jack Henry & Associates, Inc. | 524 | 96,432 | |||
Leidos Holdings, Inc. | 1,105 | 103,505 | |||
Mastercard, Inc., Class A | 645 | 190,727 | |||
Nomura Research Institute, Ltd. | 2,608 | 71,232 | |||
Obic Company, Ltd. | 611 | 107,682 | |||
Sopra Steria Group | 154 | 19,051 | |||
The Western Union Company | 4,754 | 102,781 | |||
Visa, Inc., Class A | 1,877 | 362,580 |
15 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Information technology (continued) | |||||
Semiconductors and semiconductor equipment 3.1% | |||||
Analog Devices, Inc. | 913 | $111,970 | |||
Broadcom, Inc. | 1,083 | 341,806 | |||
Disco Corp. | 177 | 43,168 | |||
Intel Corp. | 4,903 | 293,346 | |||
KLA Corp. | 663 | 128,940 | |||
Miraial Company, Ltd. | 1,600 | 15,232 | |||
NVIDIA Corp. | 394 | 149,685 | |||
QUALCOMM, Inc. | 2,187 | 199,476 | |||
Skyworks Solutions, Inc. | 468 | 59,838 | |||
Taiwan Semiconductor Manufacturing Company, Ltd. | 143,000 | 1,527,170 | |||
Texas Instruments, Inc. | 11,343 | 1,440,221 | |||
Tokyo Seimitsu Company, Ltd. | 2,375 | 76,184 | |||
Xilinx, Inc. | 621 | 61,100 | |||
Software 1.3% | |||||
Intuit, Inc. | 429 | 127,066 | |||
Microsoft Corp. | 7,393 | 1,504,549 | |||
NortonLifeLock, Inc. | 324 | 6,425 | |||
Oracle Corp. | 2,388 | 131,985 | |||
Oracle Corp. Japan | 608 | 72,116 | |||
Trend Micro, Inc. | 2,312 | 129,205 | |||
Technology hardware, storage and peripherals 1.7% | |||||
Acer, Inc. | 124,580 | 75,933 | |||
Apple, Inc. | 3,857 | 1,407,034 | |||
Canon, Inc. | 16,350 | 326,150 | |||
Compal Electronics, Inc. | 168,875 | 110,537 | |||
HP, Inc. | 5,053 | 88,074 | |||
Maxell Holdings, Ltd. | 3,780 | 35,332 | |||
Melco Holdings, Inc. | 421 | 11,773 | |||
NetApp, Inc. | 1,914 | 84,924 | |||
Quadient | 3,243 | 47,397 | |||
Samsung Electronics Company, Ltd. | 1,980 | 87,650 | |||
Seagate Technology PLC | 3,238 | 156,752 | |||
Materials 3.7% | 5,379,463 | ||||
Chemicals 0.8% | |||||
BASF SE | 3,782 | 212,432 | |||
China BlueChemical, Ltd., H Shares | 197,000 | 29,438 | |||
Dow, Inc. | 2,640 | 107,606 | |||
EMS-Chemie Holding AG | 130 | 100,997 | |||
JSR Corp. | 3,390 | 65,766 | |||
Nitto Denko Corp. | 1,670 | 94,673 | |||
PhosAgro PJSC, GDR | 43,112 | 532,002 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 16 |
Shares | Value | ||||
Materials (continued) | |||||
Construction materials 0.2% | |||||
Huaxin Cement Company, Ltd., Class A (B) | 21,400 | $72,241 | |||
Imerys SA | 1,571 | 53,942 | |||
LafargeHolcim, Ltd. (B) | 4,267 | 187,987 | |||
Tangshan Jidong Cement Company, Ltd., Class A | 12,000 | 27,348 | |||
Vicat SA | 1,367 | 42,029 | |||
Containers and packaging 0.2% | |||||
Amcor PLC | 14,146 | 144,431 | |||
AMVIG Holdings, Ltd. | 62,540 | 11,329 | |||
International Paper Company | 3,172 | 111,686 | |||
Nampak, Ltd. (B) | 74,708 | 5,597 | |||
Metals and mining 2.5% | |||||
Anglo American Platinum, Ltd. | 6,774 | 492,996 | |||
Anglo American PLC | 4,923 | 113,491 | |||
Barrick Gold Corp. | 6,397 | 172,129 | |||
Centerra Gold, Inc. | 8,288 | 92,489 | |||
Chubu Steel Plate Company, Ltd. | 1,510 | 9,897 | |||
CST Group, Ltd. (B) | 1,440,000 | 4,064 | |||
Eldorado Gold Corp. (B) | 4,970 | 48,209 | |||
Eregli Demir ve Celik Fabrikalari TAS | 369,930 | 463,418 | |||
Gold Fields, Ltd. | 8,158 | 77,029 | |||
Harmony Gold Mining Company, Ltd., ADR (B) | 13,990 | 58,338 | |||
Hunan Valin Steel Company, Ltd., Class A | 150,920 | 80,722 | |||
IAMGOLD Corp. (B) | 6,663 | 26,319 | |||
Impala Platinum Holdings, Ltd. | 3,601 | 24,251 | |||
Kinross Gold Corp. (B) | 11,203 | 80,886 | |||
Kyoei Steel, Ltd. | 4,510 | 54,415 | |||
MMC Norilsk Nickel PJSC, ADR | 17,429 | 458,906 | |||
Nakayama Steel Works, Ltd. | 7,190 | 24,232 | |||
Neturen Company, Ltd. | 2,390 | 12,166 | |||
Newmont Corp. | 295 | 18,227 | |||
Norsk Hydro ASA (B) | 35,910 | 100,185 | |||
Northern Dynasty Minerals, Ltd. (B) | 3,439 | 4,914 | |||
Nucor Corp. | 849 | 35,157 | |||
Pacific Metals Company, Ltd. | 1,850 | 26,536 | |||
Polymetal International PLC | 1,168 | 23,384 | |||
Polyus PJSC, GDR | 6,792 | 571,535 | |||
Resolute Mining, Ltd. (B) | 39,124 | 31,362 | |||
Salzgitter AG (B) | 4,032 | 56,735 | |||
SEMAFO, Inc. (B) | 16,643 | 56,760 | |||
Tokyo Steel Manufacturing Company, Ltd. | 10,540 | 60,699 | |||
Vedanta, Ltd. | 111,294 | 158,848 | |||
Western Areas, Ltd. | 30,096 | 55,342 |
17 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Materials (continued) | |||||
Metals and mining (continued) | |||||
Yamato Kogyo Company, Ltd. | 3,505 | $71,677 | |||
Yodogawa Steel Works, Ltd. | 840 | 14,641 | |||
Real estate 3.9% | 5,618,029 | ||||
Equity real estate investment trusts 2.3% | |||||
Alexandria Real Estate Equities, Inc. | 3,310 | 537,048 | |||
American Tower Corp. | 288 | 74,460 | |||
Boston Properties, Inc. | 7,185 | 649,380 | |||
Crown Castle International Corp. | 830 | 138,901 | |||
Extra Space Storage, Inc. | 1,219 | 112,599 | |||
Growthpoint Properties, Ltd. | 268,143 | 207,156 | |||
Iron Mountain, Inc. | 10,631 | 277,469 | |||
Land Securities Group PLC | 6,127 | 41,863 | |||
Medical Properties Trust, Inc. | 53,765 | 1,010,782 | |||
Omega Healthcare Investors, Inc. | 717 | 21,316 | |||
Public Storage | 937 | 179,801 | |||
The British Land Company PLC | 9,061 | 43,343 | |||
WP Carey, Inc. | 997 | 67,447 | |||
Real estate management and development 1.6% | |||||
Beijing Capital Development Company, Ltd., Class A | 190,700 | 158,549 | |||
China Fortune Land Development Company, Ltd., Class A | 44,700 | 145,118 | |||
CK Asset Holdings, Ltd. | 14,210 | 85,214 | |||
Gemdale Corp., Class A | 43,700 | 84,973 | |||
Greenland Holdings Corp., Ltd., Class A | 214,500 | 188,080 | |||
Mitsubishi Estate Company, Ltd. | 6,040 | 90,007 | |||
Nexity SA | 28,712 | 933,933 | |||
Poly Developments and Holdings Group Company, Ltd., Class A | 7,700 | 16,143 | |||
Vonovia SE | 9,071 | 554,447 | |||
Utilities 7.3% | 10,538,004 | ||||
Electric utilities 3.4% | |||||
Alliant Energy Corp. | 1,222 | 58,460 | |||
American Electric Power Company, Inc. | 1,829 | 145,662 | |||
CEZ AS | 17,764 | 380,367 | |||
Duke Energy Corp. | 3,231 | 258,125 | |||
Edison International | 16,704 | 907,194 | |||
Enel SpA | 60,668 | 524,684 | |||
Entergy Corp. | 566 | 53,096 | |||
Exelon Corp. | 20,539 | 745,360 | |||
FirstEnergy Corp. | 1,431 | 55,494 | |||
Hydro One, Ltd. (E) | 24,829 | 466,915 | |||
Iberdrola SA | 48,668 | 568,183 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 18 |
Shares | Value | ||||
Utilities (continued) | |||||
Electric utilities (continued) | |||||
NextEra Energy, Inc. | 238 | $57,160 | |||
OGE Energy Corp. | 2,247 | 68,219 | |||
PPL Corp. | 7,251 | 187,366 | |||
Terna Rete Elettrica Nazionale SpA | 67,505 | 465,619 | |||
Xcel Energy, Inc. | 787 | 49,188 | |||
Gas utilities 0.5% | |||||
APA Group | 70,549 | 545,508 | |||
Enagas SA | 1,850 | 45,258 | |||
Naturgy Energy Group SA | 3,956 | 73,854 | |||
Independent power and renewable electricity producers 0.0% | |||||
NTPC, Ltd. | 7,198 | 9,110 | |||
Multi-utilities 2.7% | |||||
Algonquin Power & Utilities Corp. | 41,288 | 533,739 | |||
Centrica PLC | 73,081 | 34,724 | |||
CMS Energy Corp. | 364 | 21,265 | |||
Consolidated Edison, Inc. | 842 | 60,565 | |||
Dominion Energy, Inc. | 4,657 | 378,055 | |||
DTE Energy Company | 80 | 8,600 | |||
E.ON SE | 55,876 | 630,710 | |||
Engie SA | 12,561 | 155,781 | |||
National Grid PLC | 119,793 | 1,461,522 | |||
RWE AG | 15,478 | 541,839 | |||
WEC Energy Group, Inc. | 579 | 50,749 | |||
Water utilities 0.7% | |||||
Guangdong Investment, Ltd. | 278,000 | 479,519 | |||
United Utilities Group PLC | 45,931 | 516,114 | |||
Preferred securities 0.8% | $1,163,406 | ||||
(Cost $1,205,830) | |||||
Consumer discretionary 0.6% | 917,221 | ||||
Automobiles 0.6% | |||||
Hyundai Motor Company | 597 | 27,109 | |||
Volkswagen AG | 5,856 | 890,112 | |||
Financials 0.1% | 75,994 | ||||
Insurance 0.1% | |||||
Samsung Fire & Marine Insurance Company, Ltd. | 726 | 75,994 | |||
Information technology 0.1% | 170,191 | ||||
Technology hardware, storage and peripherals 0.1% | |||||
Samsung Electronics Company, Ltd. | 4,369 | 170,191 | |||
19 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Exchange-traded funds 0.0% | $29,094 | ||||
(Cost $31,132) | |||||
iShares Core MSCI EAFE ETF | 509 | 29,094 | |||
Rate (%) | Maturity date | Par value^ | Value | ||
Corporate bonds 14.3% | $20,723,716 | ||||
(Cost $21,479,427) | |||||
Communication services 2.4% | 3,481,987 | ||||
Diversified telecommunication services 0.5% | |||||
Embarq Corp. | 7.995 | 06-01-36 | 100,000 | 112,300 | |
Frontier Communications Corp. (F) | 6.875 | 01-15-25 | 40,000 | 11,908 | |
Frontier Communications Corp. (E)(F) | 8.500 | 04-01-26 | 75,000 | 70,913 | |
Frontier Communications Corp. (F) | 10.500 | 09-15-22 | 40,000 | 13,800 | |
Telecom Argentina SA (E) | 6.500 | 06-15-21 | 126,000 | 116,994 | |
Telecom Italia SpA (E) | 5.303 | 05-30-24 | 200,000 | 208,254 | |
Ziggo BV (E) | 5.500 | 01-15-27 | 153,000 | 155,492 | |
Media 1.7% | |||||
Altice Financing SA (E) | 7.500 | 05-15-26 | 210,000 | 220,500 | |
Altice France Holding SA (E) | 8.000 | 05-15-27 | EUR | 100,000 | 118,363 |
Altice France SA (E) | 3.375 | 01-15-28 | EUR | 100,000 | 106,087 |
Altice France SA | 5.875 | 02-01-27 | EUR | 165,000 | 194,746 |
CCO Holdings LLC (E) | 4.500 | 08-15-30 | 45,000 | 45,923 | |
CCO Holdings LLC (E) | 4.500 | 05-01-32 | 60,000 | 60,750 | |
CCO Holdings LLC (E) | 5.750 | 02-15-26 | 155,000 | 160,323 | |
CSC Holdings LLC (E) | 6.500 | 02-01-29 | 390,000 | 426,075 | |
DISH DBS Corp. | 5.000 | 03-15-23 | 175,000 | 174,580 | |
DISH DBS Corp. | 5.875 | 07-15-22 | 50,000 | 50,840 | |
DISH DBS Corp. | 5.875 | 11-15-24 | 30,000 | 29,822 | |
DISH DBS Corp. | 7.750 | 07-01-26 | 30,000 | 31,803 | |
Gray Television, Inc. (E) | 5.125 | 10-15-24 | 130,000 | 130,000 | |
Gray Television, Inc. (E) | 5.875 | 07-15-26 | 50,000 | 49,813 | |
Lamar Media Corp. (E) | 3.750 | 02-15-28 | 30,000 | 28,284 | |
Nexstar Broadcasting, Inc. (E) | 5.625 | 07-15-27 | 180,000 | 180,011 | |
Outfront Media Capital LLC (E) | 4.625 | 03-15-30 | 65,000 | 59,580 | |
Scripps Escrow, Inc. (E) | 5.875 | 07-15-27 | 100,000 | 94,750 | |
Virgin Media Secured Finance PLC (E) | 4.125 | 08-15-30 | GBP | 100,000 | 121,780 |
WMG Acquisition Corp. | 3.625 | 10-15-26 | EUR | 100,000 | 115,897 |
WMG Acquisition Corp. (E) | 5.500 | 04-15-26 | 85,000 | 87,950 | |
Wireless telecommunication services 0.2% | |||||
Sprint Capital Corp. | 8.750 | 03-15-32 | 35,000 | 50,032 | |
Sprint Corp. | 7.125 | 06-15-24 | 50,000 | 56,457 | |
Turkcell Iletisim Hizmetleri AS | 5.800 | 04-11-28 | 200,000 | 197,960 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 20 |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary 2.4% | $3,421,875 | ||||
Auto components 0.1% | |||||
Adient Global Holdings, Ltd. | 3.500 | 08-15-24 | EUR | 100,000 | 99,325 |
Clarios Global LP (E) | 8.500 | 05-15-27 | 40,000 | 40,198 | |
Dana, Inc. | 5.625 | 06-15-28 | 15,000 | 14,890 | |
Automobiles 0.3% | |||||
Ford Motor Company | 4.750 | 01-15-43 | 75,000 | 59,085 | |
Ford Motor Company | 8.500 | 04-21-23 | 50,000 | 52,875 | |
Ford Motor Company | 9.000 | 04-22-25 | 50,000 | 54,063 | |
Ford Motor Credit Company LLC | 4.542 | 08-01-26 | 200,000 | 191,000 | |
General Motors Company | 6.125 | 10-01-25 | 20,000 | 22,476 | |
General Motors Company | 6.800 | 10-01-27 | 15,000 | 17,477 | |
Distributors 0.1% | |||||
LKQ European Holdings BV | 3.625 | 04-01-26 | EUR | 100,000 | 113,959 |
Diversified consumer services 0.1% | |||||
Q-Park Holding I BV (E) | 2.000 | 03-01-27 | EUR | 100,000 | 103,652 |
Service Corp. International | 4.625 | 12-15-27 | 35,000 | 36,313 | |
Service Corp. International | 5.125 | 06-01-29 | 25,000 | 26,900 | |
Hotels, restaurants and leisure 1.2% | |||||
Aramark Services, Inc. (E) | 5.000 | 04-01-25 | 30,000 | 29,550 | |
Boyd Gaming Corp. (E) | 4.750 | 12-01-27 | 25,000 | 21,455 | |
Boyd Gaming Corp. | 6.375 | 04-01-26 | 85,000 | 80,750 | |
Caesars Resort Collection LLC (E) | 5.250 | 10-15-25 | 120,000 | 104,400 | |
Carnival Corp. (E) | 11.500 | 04-01-23 | 110,000 | 118,793 | |
Colt Merger Sub, Inc. (E) | 5.750 | 07-01-25 | 30,000 | 30,150 | |
Colt Merger Sub, Inc. (E) | 6.250 | 07-01-25 | 95,000 | 94,259 | |
Colt Merger Sub, Inc. (E) | 8.125 | 07-01-27 | 55,000 | 53,488 | |
Eldorado Resorts, Inc. | 6.000 | 04-01-25 | 75,000 | 78,078 | |
Hilton Domestic Operating Company, Inc. | 4.250 | 09-01-24 | 152,000 | 147,470 | |
Jacobs Entertainment, Inc. (E) | 7.875 | 02-01-24 | 165,000 | 145,365 | |
KFC Holding Company/Pizza Hut Holdings LLC/Taco Bell of America LLC (E) | 4.750 | 06-01-27 | 60,000 | 61,500 | |
KFC Holding Company/Pizza Hut Holdings LLC/Taco Bell of America LLC (E) | 5.250 | 06-01-26 | 60,000 | 61,500 | |
New Red Finance, Inc. (E) | 5.000 | 10-15-25 | 320,000 | 318,400 | |
Penn National Gaming, Inc. (E) | 5.625 | 01-15-27 | 186,000 | 173,516 | |
Royal Caribbean Cruises, Ltd. (E) | 9.125 | 06-15-23 | 40,000 | 39,680 | |
Sugarhouse HSP Gaming Prop Mezz LP (E) | 5.875 | 05-15-25 | 110,000 | 107,250 | |
Wynn Las Vegas LLC (E) | 5.500 | 03-01-25 | 120,000 | 109,800 | |
Yum! Brands, Inc. (E) | 4.750 | 01-15-30 | 30,000 | 30,450 |
21 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Household durables 0.3% | |||||
Adams Homes, Inc. (E) | 7.500 | 02-15-25 | 20,000 | $19,650 | |
Ashton Woods USA LLC (E) | 6.625 | 01-15-28 | 95,000 | 93,338 | |
KB Home | 4.800 | 11-15-29 | 30,000 | 29,475 | |
M/I Homes, Inc. | 4.950 | 02-01-28 | 70,000 | 69,563 | |
M/I Homes, Inc. | 5.625 | 08-01-25 | 40,000 | 40,400 | |
Taylor Morrison Communities, Inc. (E) | 5.750 | 01-15-28 | 140,000 | 144,200 | |
Internet and direct marketing retail 0.1% | |||||
Booking Holdings, Inc. | 4.625 | 04-13-30 | 70,000 | 81,866 | |
Leisure products 0.1% | |||||
Mattel, Inc. (E) | 5.875 | 12-15-27 | 40,000 | 41,500 | |
Mattel, Inc. (E) | 6.750 | 12-31-25 | 140,000 | 145,250 | |
Multiline retail 0.0% | |||||
Party City Holdings, Inc. (E) | 6.625 | 08-01-26 | 40,000 | 8,600 | |
Specialty retail 0.1% | |||||
Asbury Automotive Group, Inc. (E) | 4.500 | 03-01-28 | 8,000 | 7,760 | |
Asbury Automotive Group, Inc. (E) | 4.750 | 03-01-30 | 8,000 | 7,800 | |
Lithia Motors, Inc. (E) | 4.625 | 12-15-27 | 65,000 | 64,350 | |
PetSmart, Inc. (E) | 5.875 | 06-01-25 | 30,000 | 30,056 | |
Consumer staples 0.7% | 1,082,368 | ||||
Food and staples retailing 0.0% | |||||
Performance Food Group, Inc. (E) | 5.500 | 10-15-27 | 45,000 | 43,425 | |
Food products 0.5% | |||||
B&G Foods, Inc. | 5.250 | 09-15-27 | 55,000 | 55,138 | |
Kraft Heinz Foods Company (E) | 3.750 | 04-01-30 | 150,000 | 154,850 | |
Kraft Heinz Foods Company (E) | 4.250 | 03-01-31 | 35,000 | 37,101 | |
MARB BondCo PLC (E) | 7.000 | 03-15-24 | 200,000 | 200,278 | |
Post Holdings, Inc. (E) | 4.625 | 04-15-30 | 15,000 | 14,720 | |
Post Holdings, Inc. (E) | 5.000 | 08-15-26 | 190,000 | 190,713 | |
Post Holdings, Inc. (E) | 5.625 | 01-15-28 | 70,000 | 72,450 | |
Post Holdings, Inc. (E) | 5.750 | 03-01-27 | 50,000 | 51,750 | |
Household products 0.2% | |||||
Diamond BC BV | 5.625 | 08-15-25 | EUR | 200,000 | 212,693 |
Personal products 0.0% | |||||
Prestige Brands, Inc. (E) | 5.125 | 01-15-28 | 50,000 | 49,250 | |
Energy 2.2% | 3,114,192 | ||||
Energy equipment and services 0.1% | |||||
Tervita Corp. (E) | 7.625 | 12-01-21 | 179,000 | 140,515 | |
Transocean, Inc. | 6.800 | 03-15-38 | 110,000 | 31,618 | |
Oil, gas and consumable fuels 2.1% | |||||
Antero Midstream Partners LP (E) | 5.750 | 01-15-28 | 90,000 | 71,100 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 22 |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
Apache Corp. | 4.375 | 10-15-28 | 100,000 | $88,289 | |
Buckeye Partners LP (E) | 4.125 | 03-01-25 | 45,000 | 43,167 | |
Buckeye Partners LP (E) | 4.500 | 03-01-28 | 40,000 | 37,600 | |
Centennial Resource Production LLC (E) | 5.375 | 01-15-26 | 65,000 | 34,450 | |
Chesapeake Energy Corp. (E)(F) | 11.500 | 01-01-25 | 187,000 | 19,635 | |
Continental Resources, Inc. | 4.375 | 01-15-28 | 60,000 | 52,813 | |
Continental Resources, Inc. | 4.900 | 06-01-44 | 60,000 | 47,775 | |
DCP Midstream Operating LP | 5.375 | 07-15-25 | 120,000 | 119,100 | |
EG Global Finance PLC | 6.250 | 10-30-25 | EUR | 100,000 | 108,979 |
EQM Midstream Partners LP (E) | 6.000 | 07-01-25 | 15,000 | 15,150 | |
EQM Midstream Partners LP (E) | 6.500 | 07-01-27 | 15,000 | 15,365 | |
EQM Midstream Partners LP | 6.500 | 07-15-48 | 50,000 | 45,640 | |
EQT Corp. | 3.900 | 10-01-27 | 80,000 | 65,074 | |
Foresight Energy LLC (E)(F) | 11.500 | 04-01-23 | 170,000 | 213 | |
Jagged Peak Energy LLC | 5.875 | 05-01-26 | 85,000 | 82,450 | |
Matador Resources Company | 5.875 | 09-15-26 | 105,000 | 77,700 | |
Noble Holding International, Ltd. (E) | 7.875 | 02-01-26 | 40,000 | 10,400 | |
Occidental Petroleum Corp. | 3.000 | 02-15-27 | 85,000 | 65,892 | |
Occidental Petroleum Corp. | 3.400 | 04-15-26 | 20,000 | 16,350 | |
Occidental Petroleum Corp. | 4.200 | 03-15-48 | 121,000 | 81,941 | |
Occidental Petroleum Corp. | 4.400 | 04-15-46 | 29,000 | 20,219 | |
Petrobras Global Finance BV | 5.093 | 01-15-30 | 80,000 | 79,680 | |
Petrobras Global Finance BV | 5.600 | 01-03-31 | 50,000 | 50,225 | |
Petrobras Global Finance BV | 5.750 | 02-01-29 | 345,000 | 354,663 | |
Petrobras Global Finance BV | 7.375 | 01-17-27 | 60,000 | 66,803 | |
Petroleos Mexicanos | 6.750 | 09-21-47 | 200,000 | 153,770 | |
Petroleos Mexicanos | 6.840 | 01-23-30 | 150,000 | 131,535 | |
QEP Resources, Inc. | 5.250 | 05-01-23 | 55,000 | 36,300 | |
QEP Resources, Inc. | 5.375 | 10-01-22 | 15,000 | 11,400 | |
QEP Resources, Inc. | 5.625 | 03-01-26 | 62,000 | 39,370 | |
SM Energy Company | 5.000 | 01-15-24 | 50,000 | 27,000 | |
SM Energy Company | 6.125 | 11-15-22 | 5,000 | 3,650 | |
SM Energy Company | 6.625 | 01-15-27 | 35,000 | 17,150 | |
Tallgrass Energy Partners LP (E) | 4.750 | 10-01-23 | 110,000 | 101,200 | |
Tallgrass Energy Partners LP (E) | 6.000 | 03-01-27 | 20,000 | 17,750 | |
Targa Resources Partners LP | 6.500 | 07-15-27 | 215,000 | 215,538 | |
Vine Oil & Gas LP (E) | 8.750 | 04-15-23 | 105,000 | 63,000 | |
Western Midstream Operating LP | 4.050 | 02-01-30 | 150,000 | 144,366 | |
Western Midstream Operating LP | 5.250 | 02-01-50 | 50,000 | 43,326 | |
WPX Energy, Inc. | 5.250 | 09-15-24 | 125,000 | 123,125 | |
WPX Energy, Inc. | 5.875 | 06-15-28 | 20,000 | 19,150 | |
WPX Energy, Inc. | 8.250 | 08-01-23 | 40,000 | 44,400 |
23 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
YPF SA | 7.000 | 12-15-47 | 120,000 | $79,356 | |
Financials 1.4% | 2,062,673 | ||||
Banks 0.5% | |||||
Abanca Corp. Bancaria SA (4.625% to 4-7-25, then 5 Year Euro Swap Rate + 5.010%) | 4.625 | 04-07-30 | EUR | 100,000 | 106,030 |
Banca Monte dei Paschi di Siena SpA (5.375% to 1-18-23, then 5 Year Euro Swap Rate + 5.000%) | 5.375 | 01-18-28 | EUR | 100,000 | 99,991 |
Banco de Sabadell SA (6.500% to 5-18-22, then 5 Year Euro Swap Rate + 6.410%) (G) | 6.500 | 05-18-22 | EUR | 200,000 | 183,667 |
Credit Agricole SA (8.125% to 12-23-25, then 5 Year U.S. Swap Rate + 6.180%) (E)(G) | 8.125 | 12-23-25 | 250,000 | 285,313 | |
Capital markets 0.2% | |||||
Credit Suisse Group AG (6.250% to 12-18-24, then 5 Year U.S. Swap Rate + 3.460%) (G) | 6.250 | 12-18-24 | 200,000 | 208,336 | |
MSCI, Inc. (E) | 4.000 | 11-15-29 | 145,000 | 147,900 | |
Consumer finance 0.4% | |||||
Credit Acceptance Corp. (E) | 5.125 | 12-31-24 | 75,000 | 72,428 | |
Credit Acceptance Corp. | 6.625 | 03-15-26 | 70,000 | 70,284 | |
DAE Funding LLC (E) | 4.500 | 08-01-22 | 35,000 | 33,338 | |
DAE Funding LLC (E) | 5.000 | 08-01-24 | 140,000 | 131,250 | |
goeasy, Ltd. (E) | 5.375 | 12-01-24 | 95,000 | 92,150 | |
Navient Corp. | 6.500 | 06-15-22 | 55,000 | 54,038 | |
Springleaf Finance Corp. | 5.375 | 11-15-29 | 75,000 | 70,500 | |
Springleaf Finance Corp. | 6.125 | 03-15-24 | 5,000 | 5,081 | |
Springleaf Finance Corp. | 8.250 | 12-15-20 | 50,000 | 51,650 | |
Insurance 0.3% | |||||
Acrisure LLC (E) | 7.000 | 11-15-25 | 155,000 | 148,219 | |
Acrisure LLC (E) | 8.125 | 02-15-24 | 72,000 | 74,858 | |
Acrisure LLC (E) | 10.125 | 08-01-26 | 75,000 | 80,625 | |
Genworth Holdings, Inc. | 4.800 | 02-15-24 | 5,000 | 3,988 | |
Genworth Holdings, Inc. | 4.900 | 08-15-23 | 75,000 | 60,000 | |
Genworth Holdings, Inc. | 6.500 | 06-15-34 | 50,000 | 36,250 | |
Genworth Holdings, Inc. | 7.200 | 02-15-21 | 30,000 | 28,050 | |
Genworth Holdings, Inc. | 7.625 | 09-24-21 | 20,000 | 18,727 | |
Health care 1.4% | 1,983,250 | ||||
Health care equipment and supplies 0.1% | |||||
Constantin Investissement 3 SASU | 5.375 | 04-15-25 | EUR | 100,000 | 112,631 |
Hill-Rom Holdings, Inc. (E) | 4.375 | 09-15-27 | 80,000 | 81,900 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 24 |
Rate (%) | Maturity date | Par value^ | Value | ||
Health care (continued) | |||||
Health care providers and services 0.5% | |||||
Centene Corp. | 3.375 | 02-15-30 | 45,000 | $45,437 | |
Community Health Systems, Inc. (E) | 6.625 | 02-15-25 | 95,000 | 89,300 | |
Community Health Systems, Inc. | 6.875 | 02-01-22 | 14,000 | 11,200 | |
Community Health Systems, Inc. (E) | 8.125 | 06-30-24 | 95,000 | 63,650 | |
HCA, Inc. | 3.500 | 09-01-30 | 285,000 | 274,438 | |
HCA, Inc. | 5.375 | 09-01-26 | 60,000 | 65,325 | |
HCA, Inc. | 5.625 | 09-01-28 | 10,000 | 11,154 | |
HCA, Inc. | 5.875 | 02-01-29 | 5,000 | 5,658 | |
HCA, Inc. | 7.500 | 11-15-95 | 65,000 | 76,375 | |
Pharmaceuticals 0.8% | |||||
Bausch Health Companies, Inc. | 4.500 | 05-15-23 | EUR | 130,000 | 144,478 |
Bausch Health Companies, Inc. (E) | 5.000 | 01-30-28 | 135,000 | 127,101 | |
Bausch Health Companies, Inc. (E) | 5.875 | 05-15-23 | 15,000 | 14,963 | |
Bausch Health Companies, Inc. (E) | 6.125 | 04-15-25 | 95,000 | 96,356 | |
Catalent Pharma Solutions, Inc. (E) | 4.875 | 01-15-26 | 30,000 | 30,456 | |
Catalent Pharma Solutions, Inc. (E) | 5.000 | 07-15-27 | 20,000 | 20,763 | |
Endo DAC (E) | 9.500 | 07-31-27 | 37,000 | 39,135 | |
IQVIA, Inc. (E) | 2.250 | 01-15-28 | EUR | 100,000 | 107,847 |
Par Pharmaceutical, Inc. (E) | 7.500 | 04-01-27 | 105,000 | 107,751 | |
Teva Pharmaceutical Finance Netherlands II BV | 1.250 | 03-31-23 | EUR | 100,000 | 104,206 |
Teva Pharmaceutical Finance Netherlands III BV | 2.800 | 07-21-23 | 150,000 | 141,750 | |
Teva Pharmaceutical Finance Netherlands III BV | 6.750 | 03-01-28 | 200,000 | 211,376 | |
Industrials 1.3% | 1,848,232 | ||||
Aerospace and defense 0.3% | |||||
Bombardier, Inc. (E) | 6.125 | 01-15-23 | 160,000 | 110,048 | |
Bombardier, Inc. (E) | 7.875 | 04-15-27 | 135,000 | 88,425 | |
TransDigm, Inc. | 5.500 | 11-15-27 | 100,000 | 87,294 | |
TransDigm, Inc. (E) | 6.250 | 03-15-26 | 150,000 | 149,906 | |
Building products 0.0% | |||||
Advanced Drainage Systems, Inc. (E) | 5.000 | 09-30-27 | 25,000 | 25,188 | |
Builders FirstSource, Inc. (E) | 5.000 | 03-01-30 | 45,000 | 42,300 | |
Commercial services and supplies 0.3% | |||||
American Builders & Contractors Supply Company, Inc. (E) | 4.000 | 01-15-28 | 85,000 | 82,600 | |
APX Group, Inc. | 7.625 | 09-01-23 | 95,000 | 87,400 | |
Arena Luxembourg Finance Sarl (E) | 1.875 | 02-01-28 | EUR | 100,000 | 102,309 |
Clean Harbors, Inc. (E) | 4.875 | 07-15-27 | 49,000 | 50,348 | |
Stericycle, Inc. (E) | 5.375 | 07-15-24 | 90,000 | 92,250 |
25 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Electrical equipment 0.2% | |||||
Sensata Technologies BV (E) | 5.000 | 10-01-25 | 100,000 | $106,470 | |
Sensata Technologies BV (E) | 5.625 | 11-01-24 | 10,000 | 10,600 | |
Techem Verwaltungsgesellschaft 675 mbH (E) | 2.000 | 07-15-25 | EUR | 100,000 | 107,062 |
Machinery 0.1% | |||||
Vertical Midco GmbH (E) | 4.375 | 07-15-27 | EUR | 100,000 | 112,350 |
Professional services 0.1% | |||||
La Financiere Atalian SASU | 4.000 | 05-15-24 | EUR | 100,000 | 83,693 |
La Financiere Atalian SASU (E) | 4.000 | 05-15-24 | EUR | 100,000 | 83,693 |
Trading companies and distributors 0.3% | |||||
AerCap Ireland Capital DAC | 6.500 | 07-15-25 | 150,000 | 157,145 | |
Herc Holdings, Inc. (E) | 5.500 | 07-15-27 | 140,000 | 140,301 | |
United Rentals North America, Inc. | 4.625 | 10-15-25 | 50,000 | 50,250 | |
United Rentals North America, Inc. | 5.875 | 09-15-26 | 75,000 | 78,600 | |
Information technology 0.8% | 1,234,209 | ||||
IT services 0.2% | |||||
Cardtronics, Inc. (E) | 5.500 | 05-01-25 | 10,000 | 9,700 | |
Presidio Holdings, Inc. (E) | 4.875 | 02-01-27 | 75,000 | 73,313 | |
Presidio Holdings, Inc. (E) | 8.250 | 02-01-28 | 60,000 | 60,000 | |
Tempo Acquisition LLC (E) | 6.750 | 06-01-25 | 110,000 | 111,375 | |
Semiconductors and semiconductor equipment 0.2% | |||||
Entegris, Inc. (E) | 4.625 | 02-10-26 | 145,000 | 147,175 | |
Qorvo, Inc. (E) | 4.375 | 10-15-29 | 85,000 | 87,047 | |
Qorvo, Inc. | 5.500 | 07-15-26 | 105,000 | 109,200 | |
Software 0.3% | |||||
CDK Global, Inc. (E) | 5.250 | 05-15-29 | 60,000 | 62,305 | |
Open Text Corp. (E) | 3.875 | 02-15-28 | 85,000 | 81,839 | |
Open Text Holdings, Inc. (E) | 4.125 | 02-15-30 | 70,000 | 68,775 | |
PTC, Inc. (E) | 3.625 | 02-15-25 | 15,000 | 14,888 | |
PTC, Inc. (E) | 4.000 | 02-15-28 | 20,000 | 19,851 | |
SS&C Technologies, Inc. (E) | 5.500 | 09-30-27 | 150,000 | 152,759 | |
Technology hardware, storage and peripherals 0.1% | |||||
CDW LLC | 4.125 | 05-01-25 | 35,000 | 35,044 | |
Xerox Corp. | 4.125 | 03-15-23 | 140,000 | 139,790 | |
Xerox Corp. | 4.800 | 03-01-35 | 10,000 | 9,323 | |
Xerox Corp. | 6.750 | 12-15-39 | 50,000 | 51,825 | |
Materials 1.2% | 1,731,691 | ||||
Chemicals 0.0% | |||||
CF Industries, Inc. | 4.950 | 06-01-43 | 10,000 | 10,778 | |
CF Industries, Inc. | 5.150 | 03-15-34 | 45,000 | 48,119 | |
CF Industries, Inc. | 5.375 | 03-15-44 | 20,000 | 21,626 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 26 |
Rate (%) | Maturity date | Par value^ | Value | ||
Materials (continued) | |||||
Containers and packaging 0.9% | |||||
ARD Finance SA (5.000% Cash or 5.750% PIK) (E) | 5.000 | 06-30-27 | EUR | 195,000 | $209,773 |
Ardagh Packaging Finance PLC (E) | 2.125 | 08-15-26 | EUR | 105,000 | 113,438 |
Ball Corp. | 1.500 | 03-15-27 | EUR | 125,000 | 134,160 |
Berry Global, Inc. (E) | 1.500 | 01-15-27 | EUR | 106,000 | 112,106 |
Berry Global, Inc. (E) | 5.625 | 07-15-27 | 35,000 | 35,963 | |
Berry Global, Inc. | 6.000 | 10-15-22 | 55,000 | 55,138 | |
Crown European Holdings SA | 2.875 | 02-01-26 | EUR | 125,000 | 141,842 |
OI European Group BV (E) | 4.000 | 03-15-23 | 10,000 | 9,849 | |
Owens-Brockway Glass Container, Inc. (E) | 5.875 | 08-15-23 | 165,000 | 170,363 | |
Reynolds Group Issuer, Inc. (E) | 5.125 | 07-15-23 | 155,000 | 156,824 | |
Silgan Holdings, Inc. (E) | 2.250 | 06-01-28 | EUR | 100,000 | 107,776 |
Metals and mining 0.2% | |||||
Constellium SE | 4.250 | 02-15-26 | EUR | 125,000 | 137,516 |
Novelis Corp. (E) | 4.750 | 01-30-30 | 75,000 | 71,625 | |
Novelis Corp. (E) | 5.875 | 09-30-26 | 55,000 | 54,870 | |
Paper and forest products 0.1% | |||||
Flex Acquisition Company, Inc. (E) | 6.875 | 01-15-25 | 145,000 | 139,925 | |
Real estate 0.3% | 426,405 | ||||
Equity real estate investment trusts 0.3% | |||||
FelCor Lodging LP | 6.000 | 06-01-25 | 240,000 | 233,042 | |
Iron Mountain, Inc. (E) | 4.875 | 09-15-29 | 75,000 | 72,938 | |
VICI Properties LP (E) | 3.500 | 02-15-25 | 10,000 | 9,400 | |
VICI Properties LP (E) | 3.750 | 02-15-27 | 5,000 | 4,700 | |
VICI Properties LP (E) | 4.250 | 12-01-26 | 60,000 | 57,575 | |
VICI Properties LP (E) | 4.625 | 12-01-29 | 50,000 | 48,750 | |
Utilities 0.2% | 336,834 | ||||
Gas utilities 0.1% | |||||
AmeriGas Partners LP | 5.500 | 05-20-25 | 32,000 | 32,960 | |
AmeriGas Partners LP | 5.750 | 05-20-27 | 40,000 | 42,300 | |
AmeriGas Partners LP | 5.875 | 08-20-26 | 118,000 | 124,490 | |
Independent power and renewable electricity producers 0.1% | |||||
Clearway Energy Operating LLC (E) | 4.750 | 03-15-28 | 65,000 | 66,296 | |
NextEra Energy Operating Partners LP (E) | 4.250 | 07-15-24 | 70,000 | 70,788 | |
Convertible bonds 0.5% | $713,188 | ||||
(Cost $716,610) | |||||
Consumer discretionary 0.0% | 52,281 | ||||
Hotels, restaurants and leisure 0.0% | |||||
Caesars Entertainment Corp. | 5.000 | 10-01-24 | 30,000 | 50,421 |
27 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Hotels, restaurants and leisure (continued) | |||||
Royal Caribbean Cruises, Ltd. (E) | 4.250 | 06-15-23 | 2,000 | $1,860 | |
Energy 0.1% | 160,173 | ||||
Oil, gas and consumable fuels 0.1% | |||||
Cheniere Energy, Inc. (4.875% Cash or 4.875% PIK) (E) | 4.875 | 05-28-21 | 71,000 | 71,689 | |
Pioneer Natural Resources Company (E) | 0.250 | 05-15-25 | 75,000 | 88,484 | |
Health care 0.1% | 98,896 | ||||
Health care equipment and supplies 0.1% | |||||
Integra LifeSciences Holdings Corp. (E) | 0.500 | 08-15-25 | 51,000 | 46,363 | |
NuVasive, Inc. (E) | 0.375 | 03-15-25 | 60,000 | 52,533 | |
Information technology 0.3% | 401,838 | ||||
IT services 0.0% | |||||
Square, Inc. (E) | 0.125 | 03-01-25 | 50,000 | 56,642 | |
Semiconductors and semiconductor equipment 0.1% | |||||
Microchip Technology, Inc. | 2.250 | 02-15-37 | 50,000 | 72,851 | |
Software 0.1% | |||||
Splunk, Inc. | 1.125 | 09-15-25 | 20,000 | 29,382 | |
Splunk, Inc. (E) | 1.125 | 06-15-27 | 36,000 | 38,353 | |
Workday, Inc. | 0.250 | 10-01-22 | 75,000 | 103,086 | |
Technology hardware, storage and peripherals 0.1% | |||||
Western Digital Corp. | 1.500 | 02-01-24 | 108,000 | 101,524 | |
Term loans (H) 0.3% | $443,589 | ||||
(Cost $455,732) | |||||
Consumer staples 0.1% | 108,053 | ||||
Food products 0.1% | |||||
Froneri Lux FinCo SARL, 2020 EUR Term Loan (6 month EURIBOR + 2.625%) | 2.625 | 01-29-27 | EUR | 100,000 | 108,053 |
Financials 0.0% | 93,019 | ||||
Insurance 0.0% | |||||
HUB International, Ltd., 2018 Term Loan B (3 month LIBOR + 3.000%) | 4.020 | 04-25-25 | 98,000 | 93,019 | |
Industrials 0.2% | 242,517 | ||||
Professional services 0.2% | |||||
The Dun & Bradstreet Corp., Term Loan (1 month LIBOR + 4.000%) | 4.184 | 02-06-26 | 249,375 | 242,517 | |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 28 |
Shares | Value | ||||
Rights 0.0% | $2,318 | ||||
(Cost $0) | |||||
SIG PLC (Expiration Date: 7-8-20; Strike Price: GBP 0.30) (B) | 6,107 | 2,318 | |||
Rate (%) | Maturity date | Par value^ | Value | ||
Escrow certificates 0.0% | $750 | ||||
(Cost $194) | |||||
Texas Competitive Electric Holdings Company LLC (B)(D) | 11.500 | 10-01-20 | 500,000 | 750 | |
Par value^ | Value | ||||
Short-term investments 1.2% | $1,700,000 | ||||
(Cost $1,700,000) | |||||
Repurchase agreement 1.2% | 1,700,000 | ||||
Goldman Sachs Tri-Party Repurchase Agreement dated 6-30-20 at 0.070% to be repurchased at $1,700,003 on 7-1-20, collateralized by $1,604,838 Government National Mortgage Association, 4.500% due 6-20-50 (valued at $1,734,000) | 1,700,000 | 1,700,000 |
Total investments (Cost $154,622,293) 97.7% | $141,230,228 | ||||
Other assets and liabilities, net 2.3% | 3,289,825 | ||||
Total net assets 100.0% | $144,520,053 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund unless otherwise indicated. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Currency Abbreviations | |
EUR | Euro |
GBP | Pound Sterling |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
EURIBOR | Euro Interbank Offered Rate |
GDR | Global Depositary Receipt |
LIBOR | London Interbank Offered Rate |
NVDR | Non-Voting Depositary Receipt |
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. |
(A) | All or a portion of this security is segregated at the custodian as collateral for certain derivatives. |
(B) | Non-income producing security. |
(C) | Restricted security as to resale, excluding 144A securities. For more information on this security refer to the Notes to financial statements. |
(D) | 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. |
29 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
(E) | 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. |
(F) | Non-income producing - Issuer is in default. |
(G) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(H) | Term loans are variable rate obligations. The coupon rate shown represents the rate at period end. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 30 |
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) |
Euro STOXX 50 Index Futures | 205 | Short | Sep 2020 | $(6,997,204) | $(7,422,624) | $(425,420) |
FTSE 100 Index Futures | 21 | Short | Sep 2020 | (1,542,777) | (1,599,648) | (56,871) |
MSCI EAFE Index Futures | 120 | Short | Sep 2020 | (10,528,488) | (10,670,400) | (141,912) |
S&P 500 Index E-Mini Futures | 29 | Short | Sep 2020 | (4,413,879) | (4,472,163) | (58,284) |
$(682,487) |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
CAD | 130,000 | USD | 96,056 | BNP | 7/2/2020 | — | $(299) |
CAD | 130,000 | USD | 95,021 | BNP | 8/5/2020 | $745 | — |
EUR | 431,000 | USD | 488,379 | BNP | 7/31/2020 | — | (3,847) |
EUR | 17,000 | USD | 19,105 | SSB | 7/31/2020 | 7 | — |
GBP | 340,000 | USD | 419,366 | BNP | 7/2/2020 | 1,928 | — |
GBP | 240,000 | USD | 297,847 | BNP | 8/5/2020 | — | (398) |
GBP | 16,000 | USD | 19,774 | SSB | 8/5/2020 | 55 | — |
USD | 95,013 | CAD | 130,000 | BNP | 7/2/2020 | — | (745) |
USD | 8,984,333 | EUR | 7,960,000 | MSI | 9/16/2020 | 26,318 | — |
USD | 297,794 | GBP | 240,000 | BNP | 7/2/2020 | 410 | — |
USD | 123,677 | GBP | 100,000 | GSI | 7/2/2020 | — | (233) |
USD | 2,758,221 | GBP | 2,177,000 | BNP | 9/16/2020 | 59,508 | — |
$88,971 | $(5,522) |
Derivatives Currency Abbreviations | |
CAD | Canadian Dollar |
EUR | Euro |
GBP | Pound Sterling |
USD | U.S. Dollar |
Derivatives Abbreviations | |
BNP | BNP Paribas |
GSI | Goldman Sachs International |
MSI | Morgan Stanley & Co. International PLC |
OTC | Over-the-counter |
SSB | State Street Bank and Trust Company |
31 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $154,622,293) | $141,230,228 |
Unrealized appreciation on forward foreign currency contracts | 88,971 |
Cash | 46,907 |
Foreign currency, at value (Cost $203,601) | 200,508 |
Collateral held at broker for futures contracts | 2,567,750 |
Collateral segregated at custodian for OTC derivative contracts | 2,867 |
Dividends and interest receivable | 1,059,648 |
Receivable for investments sold | 1,569,562 |
Other assets | 15,754 |
Total assets | 146,782,195 |
Liabilities | |
Unrealized depreciation on forward foreign currency contracts | 5,522 |
Payable for futures variation margin | 12,770 |
Payable for collateral on OTC derivatives | 110,000 |
Payable for investments purchased | 2,077,645 |
Payable to affiliates | |
Accounting and legal services fees | 6,006 |
Trustees' fees | 144 |
Other liabilities and accrued expenses | 50,055 |
Total liabilities | 2,262,142 |
Net assets | $144,520,053 |
Net assets consist of | |
Paid-in capital | $190,546,477 |
Total distributable earnings (loss) | (46,026,424) |
Net assets | $144,520,053 |
Net asset value per share | |
Based on 12,223,813 shares of beneficial interest outstanding - unlimited number of shares authorized with $0.01 par value | $11.82 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 32 |
Investment income | |
Dividends | $3,052,715 |
Interest | 710,560 |
Less foreign taxes withheld | (237,642) |
Total investment income | 3,525,633 |
Expenses | |
Investment management fees | 740,234 |
Accounting and legal services fees | 12,308 |
Transfer agent fees | 8,781 |
Trustees' fees | 20,232 |
Custodian fees | 32,714 |
Printing and postage | 44,592 |
Professional fees | 34,810 |
Stock exchange listing fees | 11,819 |
Other | 8,887 |
Total expenses | 914,377 |
Less expense reductions | (5,331) |
Net expenses | 909,046 |
Net investment income | 2,616,587 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | (20,828,882) |
Futures contracts | 309,632 |
Forward foreign currency contracts | 162,105 |
Written options | 132,066 |
Swap contracts | (29,462) |
(20,254,541) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (9,743,430) |
Futures contracts | (687,740) |
Forward foreign currency contracts | 273,549 |
Swap contracts | (12,955) |
(10,170,576) | |
Net realized and unrealized loss | (30,425,117) |
Decrease in net assets from operations | $(27,808,530) |
33 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Six months ended 6-30-20 (unaudited) | Year ended 12-31-19 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $2,616,587 | $7,213,124 |
Net realized loss | (20,254,541) | (3,818,837) |
Change in net unrealized appreciation (depreciation) | (10,170,576) | 19,708,663 |
Increase (decrease) in net assets resulting from operations | (27,808,530) | 23,102,950 |
Distributions to shareholders | ||
From earnings | (9,192,307) 1 | (8,240,605) |
From tax return of capital | — | (10,129,197) |
Total distributions | (9,192,307) | (18,369,802) |
Fund share transactions | ||
Issued pursuant to Dividend Reinvestment Plan | — | 146,258 |
Total increase (decrease) | (37,000,837) | 4,879,406 |
Net assets | ||
Beginning of period | 181,520,890 | 176,641,484 |
End of period | $144,520,053 | $181,520,890 |
Share activity | ||
Shares outstanding | ||
Beginning of period | 12,223,813 | 12,213,964 |
Issued pursuant to Dividend Reinvestment Plan | — | 9,849 |
End of period | 12,223,813 | 12,223,813 |
1 | A portion of the distributions may be deemed a tax return of capital at the fiscal year end. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 34 |
Period ended | 6-30-20 1 | 12-31-19 | 12-31-18 | 12-31-17 | 12-31-16 | 12-31-15 |
Per share operating performance | ||||||
Net asset value, beginning of period | $14.85 | $14.46 | $17.64 | $16.84 | $16.78 | $18.22 |
Net investment income2 | 0.21 | 0.59 | 0.63 | 0.52 | 0.42 | 0.39 |
Net realized and unrealized gain (loss) on investments | (2.49) | 1.30 | (2.31) | 1.94 | 1.09 | (0.51) |
Total from investment operations | (2.28) | 1.89 | (1.68) | 2.46 | 1.51 | (0.12) |
Less distributions | ||||||
From net investment income | (0.75) 3 | (0.67) | (0.86) | (0.49) | (0.41) | (0.44) |
From net realized gain | — | — | (0.39) | (1.17) | (0.24) | (0.91) |
From tax return of capital | — | (0.83) | (0.25) | — | (0.85) | (0.15) |
Total distributions | (0.75) | (1.50) | (1.50) | (1.66) | (1.50) | (1.50) |
Anti-dilutive impact of repurchase plan | — | — | — | — | 0.05 4 | 0.18 4 |
Net asset value, end of period | $11.82 | $14.85 | $14.46 | $17.64 | $16.84 | $16.78 |
Per share market value, end of period | $11.24 | $14.91 | $13.08 | $17.41 | $15.72 | $14.46 |
Total return at net asset value (%)5,6 | (14.68) 7 | 13.89 | (9.61) | 15.15 | 10.46 | 1.56 |
Total return at market value (%)5 | (19.19) 7 | 26.41 | (17.16) | 21.74 | 19.66 | (2.29) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $145 | $182 | $177 | $215 | $206 | $210 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.17 8 | 1.15 | 1.14 | 1.13 | 1.15 | 1.16 |
Expenses including reductions | 1.17 8 | 1.14 | 1.13 | 1.13 | 1.14 | 1.15 |
Net investment income | 3.36 8 | 3.97 | 3.83 | 2.99 | 2.52 | 2.17 |
Portfolio turnover (%) | 70 | 125 | 96 | 93 | 43 | 43 |
1 | Six months ended 6-30-20. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | A portion of the distributions may be deemed a tax return of capital at the fiscal year end. |
4 | The repurchase plan was completed at an average repurchase price of $14.17 and $15.71 for 312,533 shares and 1,120,307 shares for the periods ended 12-31-16 and 12-31-15, respectively. |
5 | Total return based on net asset value reflects changes in the fund’s net asset value during each period. Total return based on market value reflects changes in market value. Each figure assumes that distributions from income, capital gains and tax return of capital, if any, were reinvested. |
6 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
7 | Not annualized. |
8 | Annualized. |
35 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
SEMIANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 36 |
Total value at 6-30-20 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Communication services | $14,441,315 | $6,811,529 | $7,629,786 | — |
Consumer discretionary | 7,408,766 | 3,243,895 | 4,053,810 | $111,061 |
Consumer staples | 10,730,361 | 7,464,637 | 3,265,724 | — |
Energy | 10,257,159 | 5,241,021 | 5,016,138 | — |
Financials | 17,239,856 | 6,212,039 | 11,027,817 | — |
Health care | 13,066,979 | 8,754,742 | 4,312,237 | — |
Industrials | 8,359,404 | 3,084,656 | 5,274,748 | — |
Information technology | 13,414,831 | 9,785,723 | 3,629,108 | — |
Materials | 5,379,463 | 1,416,057 | 3,963,406 | — |
Real estate | 5,618,029 | 3,069,203 | 2,548,826 | — |
Utilities | 10,538,004 | 4,105,212 | 6,432,792 | — |
Preferred securities | 1,163,406 | — | 1,163,406 | — |
Exchange-traded funds | 29,094 | 29,094 | — | — |
Corporate bonds | 20,723,716 | — | 20,723,716 | — |
Convertible bonds | 713,188 | — | 713,188 | — |
Term loans | 443,589 | — | 443,589 | — |
Rights | 2,318 | — | 2,318 | — |
Escrow certificates | 750 | — | — | 750 |
Short-term investments | 1,700,000 | — | 1,700,000 | — |
Total investments in securities | $141,230,228 | $59,217,808 | $81,900,609 | $111,811 |
37 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT |
Total value at 6-30-20 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Derivatives: | ||||
Assets | ||||
Forward foreign currency contracts | $88,971 | — | $88,971 | — |
Liabilities | ||||
Futures | (682,487) | $(682,487) | — | — |
Forward foreign currency contracts | (5,522) | — | (5,522) | — |
SEMIANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 38 |
39 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 40 |
41 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 42 |
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
Equity | Receivable/payable for futures variation margin | Futures 1 | — | $(682,487) |
Currency | Unrealized appreciation / depreciation on forward foreign currency contracts | Forward foreign currency contracts | $88,971 | (5,522) |
$88,971 | $(688,009) |
1 | Reflects cumulative appreciation/depreciation on futures as disclosed in Fund's investments. Only the period end variation margin is separately disclosed on the Statement of assets and liabilities. |
Statement of operations location - Net realized gain (loss) on: | |||||
Risk | Futures contracts | Forward foreign currency contracts | Written options | Swap contracts | Total |
Currency | — | $162,105 | — | — | $162,105 |
Credit | — | — | — | $(29,462) | (29,462) |
Equity | $309,632 | — | $132,066 | — | 441,698 |
Total | $309,632 | $162,105 | $132,066 | $(29,462) | $574,341 |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | ||||
Risk | Futures contracts | Forward foreign currency contracts | Swap contracts | Total |
Currency | — | $273,549 | — | $273,549 |
Credit | — | — | $(12,955) | (12,955) |
Equity | $(687,740) | — | — | (687,740) |
43 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | ||||
Risk | Futures contracts | Forward foreign currency contracts | Swap contracts | Total |
Total | $(687,740) | $273,549 | $(12,955) | $(427,146) |
SEMIANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 44 |
Issuer, Description | Original acquisition date | Acquisition cost | Beginning share amount | Shares purchased | Shares sold | Ending share amount | Value as a percentage of net assets | Ending value |
Allstar Co-Invest LLC | 8-1-11 | $240,553 | 236,300 | — | — | 236,300 | 0.1% | $111,061 |
45 | JOHN HANCOCK Hedged Equity & Income Fund | SEMIANNUAL REPORT |
Additional information (Unaudited)
Investment objective and policy
The fund is a closed-end, diversified management investment company, common shares of which were initially offered to the public on May 26, 2011 and are publicly traded on the New York Stock Exchange (the NYSE). The fund's investment objective is to provide total return with a focus on current income and gains and also consisting of long-term capital appreciation. The fund uses an equity strategy, as well as futures and call writing, to pursue its investment objective.
Under normal circumstances, the fund will invest at least 80% of its net assets (assets plus borrowings for investment purposes) in equity and equity-related securities, including common stock, preferred stock, depositary receipts (including American Depositary Receipts and Global Depositary Receipts), index-related securities (including exchange-traded funds), options on equity securities and equity indexes, real estate investment structures (including real estate investment trusts), convertible securities, private placements, convertible preferred stock, rights, warrants, derivatives linked to equity securities or indexes and other similar equity equivalents. The fund may invest in listed and unlisted domestic and foreign equity and equity-related securities or instruments. These equity and equity-related instruments may include equity securities of, or derivatives linked to, foreign issuers and indexes (including emerging market issuers or indexes).
Dividends and distributions
During the six months ended June 30, 2020, distributions from net investment income totaling $0.7520 per share were paid to shareholders. The dates of payments and the amounts per share were as follows:
Payment date | Distributions* | ||||
March 31, 2020 | $0.3760 | ||||
June 30, 2020 | 0.3760 | ||||
Total | $0.7520 |
* A portion of the distributions may be deemed a tax return of capital at the fiscal year end.
The fund held its Annual Meeting of Shareholders on Monday, February 3, 2020. The following proposal was considered by the shareholders:
Proposal: To elect five (5) Trustees (James R. Boyle, William H. Cunningham, Grace K. Fey, Hassell H. McClellan and Gregory A. Russo) to serve for a three-year term ending at the 2023 Annual Meeting of Shareholders.
Total votes for the nominee | Total votes withheld from the nominee | |
Independent Trustees | ||
James R. Boyle | 7,832,603.000 | 157,908.000 |
William H. Cunningham | 7,826,901.000 | 163,610.000 |
Grace K. Fey | 7,818,865.000 | 171,646.000 |
Hassell H. McClellan | 7,812,707.000 | 177,804.000 |
Gregory A. Russo | 7,814,385.000 | 176,126.000 |
Trustees whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are: Charles L. Bardelis, Peter S. Burgess, Marianne Harrison, Andrew G. Arnott, Deborah C. Jackson, James M. Oates and Steven R. Pruchansky.
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Hedged Equity & Income Fund (the fund) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Wellington Management Company LLP (the Subadvisor). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at the telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At telephonic meetings held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the fund under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the fund and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and other pertinent information, such as the market premium and discount information, and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor's revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board notes that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board considered the nature, quality,
____________________
1 On March 13, 2020, in response to health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission announced regulatory relief (the "Order") pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the "1940 Act"), that temporarily exempts registered investment management companies from the requirements under the 1940 Act regarding in-person votes by the Board, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board's May and June meetings were held telephonically in reliance on the Order.
and extent of non-advisory services, if any, to be provided to the fund by the Advisor's affiliates. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the fund and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board's conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board's ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor's compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the fund's Chief Compliance Officer (CCO) regarding the fund's compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund's compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risk with respect to all funds.
The Board also considered the differences between the Advisor's services to the fund and the services it provides to other clients that are not closed-end funds, including, for example, the differences in services related to the regulatory and legal obligations of closed-end funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor's management and the quality of the performance of the Advisor's duties, through Board meetings, discussions and reports during the preceding year and through each Trustee's experience as a Trustee of the fund and of the other funds in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the fund'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; |
(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 fund's operations and investor experience with the fund; and |
(g) | the Advisor's reputation and experience in serving as an investment advisor to the fund and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund's performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund's performance results. In connection with the consideration of the Advisory Agreement, the Board:
(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; |
(d) | took into account the Advisor's analysis of the fund's performance; and |
(e) | considered the fund's share performance and premium/discount information. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that, based on its net asset value, the fund underperformed its benchmark index for the one-, three-, and five-year periods ended December 31, 2019. The Board also noted that, based on its net asset value, the fund underperformed its peer group median for the one-, three- and five-year periods ended December 31, 2019. The Board took into account management's discussion of the factors that contributed to the Trust's performance for the benchmark index and peer group median for the one-, three-, and five-year periods, including the impact of past and current market conditions
on the Fund's strategy and management's outlook for the Fund.. The Board concluded that the fund's performance is being monitored and reasonably addressed, where appropriate.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund's contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund's ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund's ranking within a broader group of funds. In comparing the fund's contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs.
The Board noted that net management fees for the fund are lower than the peer group median and that net total expenses for the fund are lower than the peer group median. The Board took into account management's discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm's length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor's and Subadvisor's services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor's relationship with the fund, the Board:
(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 Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(f) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(g) | noted that the subadvisory fees for the fund are paid by the Advisor and is negotiated at arm's length; |
(h) | 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 |
(i) | 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. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which the fund may realize any economies of scale and whether fee levels reflect these economies of scale for the benefit of the fund shareholders, the Board noted that the fund has a limited ability to increase its assets as a closed-end fund. The Board took into account management's discussions of the current advisory fee structure, and, as noted above, the services the Advisor provides in performing its functions under the Advisory Agreement and in supervising the Subadvisor.
The Board also considered potential economies of scale that may be realized by the fund as part of the John Hancock Fund Complex. Among them, the Board noted that the Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios). 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. The Board considered the Advisor's overall operations and its ongoing investment in its business in order to expand the scale of, and improve the quality of, its operations that benefit the fund. The Board determined that the management fee structure for the fund was reasonable.
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(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, 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 significant to the fund's Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor's Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor's current level of staffing and its overall resources, as well as received information relating to the Subadvisor's compensation program. The Board reviewed the Subadvisor's history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor's investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor's compliance program and any disciplinary history. The Board also considered the Subadvisor's risk assessment and monitoring process. The Board reviewed the Subadvisor's regulatory history, including whether it was involved in any regulatory actions or
investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the fund's CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor's investment process and philosophy. The Board took into account that the Subadvisor's responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund's investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor's brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm's length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board's consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor's relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays subadvisory fees to the Subadvisor. As noted above, the Board also considered the fund's subadvisory fee as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fee paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund's performance as compared to the fund's peer group and the benchmark index and noted that the Board reviews information about the fund's performance results at its regularly scheduled meetings. The Board noted the Advisor's expertise and resources in monitoring the
performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor's focus on the Subadvisor's performance. The Board also noted the Subadvisor's long-term performance record for similar accounts, as applicable.
The Board's decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the fund's performance, based on net asset value, is being monitored and reasonably addressed, where appropriate; and |
(3) | the subadvisory fees are reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement. |
* * *
Based on the Board's evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott Francis V. Knox, Jr.1 Charles A. Rizzo Salvatore Schiavone Christopher (Kit) Sechler Trevor Swanberg2 | Investment advisor John Hancock Investment Management LLC Subadvisor Wellington Management Company LLP Portfolio Managers Roberto J. Isch, CFA Custodian State Street Bank and Trust Company Transfer agent Computershare Shareowner Services, LLC Legal counsel K&L Gates LLP Stock symbol Listed New York Stock Exchange: HEQ |
* Member of the Audit Committee
† Non-Independent Trustee
1 Retired on July 31, 2020
2 Effective July 31, 2020
The fund's proxy voting policies and procedures, as well as the fund's proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund's holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund's Form N-PORT filings are available on our website and the SEC's website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-852-0218.
The report is certified under the Sarbanes-Oxley Act, which requires closed-end funds and other public companies to affirm that, to the best of their knowledge, the information in their financial reports is fairly and accurately stated in all material respects.
You can also contact us: | |||
800-852-0218 jhinvestments.com | Regular mail: Computershare | Express mail: Computershare |
John Hancock family of funds
DOMESTIC EQUITY FUNDS Blue Chip Growth Classic Value Disciplined Value Disciplined Value Mid Cap Equity Income Financial Industries Fundamental All Cap Core Fundamental Large Cap Core New Opportunities Regional Bank Small Cap Core Small Cap Growth Small Cap Value U.S. Global Leaders Growth U.S. Quality Growth GLOBAL AND INTERNATIONAL EQUITY FUNDS Disciplined Value International Emerging Markets Emerging Markets Equity Fundamental Global Franchise Global Equity Global Shareholder Yield Global Thematic Opportunities International Dynamic Growth International Growth International Small Company | INCOME FUNDS Bond California Tax-Free Income Emerging Markets Debt Floating Rate Income Government Income High Yield High Yield Municipal Bond Income Investment Grade Bond Money Market Short Duration Bond Short Duration Credit Opportunities Strategic Income Opportunities Tax-Free Bond ALTERNATIVE AND SPECIALTY FUNDS Absolute Return Currency Alternative Asset Allocation Alternative Risk Premia Diversified Macro Infrastructure Multi-Asset Absolute Return Seaport Long/Short |
The fund's investment objectives, risks, charges, and expenses are included in the prospectus and should be considered carefully before investing. For a prospectus, contact your financial professional, call John Hancock Investment Management at 800-852-0218, or visit the fund's website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
The John Hancock funds are distributed by John Hancock Investment Management Distributors LLC. Member FINRA SIPC.
ASSET ALLOCATION Balanced Multi-Asset High Income Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios Retirement Income 2040 EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Emerging Markets ETF John Hancock Multifactor Energy ETF John Hancock Multifactor Financials ETF John Hancock Multifactor Healthcare ETF John Hancock Multifactor Industrials ETF John Hancock Multifactor Large Cap ETF John Hancock Multifactor Materials ETF John Hancock Multifactor Media and John Hancock Multifactor Mid Cap ETF John Hancock Multifactor Small Cap ETF John Hancock Multifactor Technology ETF John Hancock Multifactor Utilities ETF | ENVIRONMENTAL, SOCIAL, AND ESG All Cap Core ESG Core Bond ESG International Equity ESG Large Cap Core CLOSED-END FUNDS Financial Opportunities Hedged Equity & Income Income Securities Trust Investors Trust Preferred Income Preferred Income II Preferred Income III Premium Dividend Tax-Advantaged Dividend Income Tax-Advantaged Global Shareholder Yield |
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed
from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of
everything we do. It's why we support the role of professional financial
advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide
a diverse set of investments backed by some of the world's best
managers, along with strong risk-adjusted returns across asset classes.
John Hancock Investment Management LLC
200 Berkeley Street n Boston, MA 02116-5010 n 800-225-5291 n jhinvestments.com
MF1234943 | P15SA 6/20 8/2020 |
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
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.
(b)
REGISTRANT PURCHASES OF EQUITY SECURITIES
Total number of shares | Maximum number of | |||
Total number of | Average | purchased as part of | shares that may yet be | |
shares | price per | publicly announced | purchased under the | |
Period | purchased | share | plans* | plans |
19-Dec | - | - | - | 1,222,381 |
20-Jan | - | - | - | 1,222,381 |
20-Feb | - | - | - | 1,222,381 |
20-Mar | - | - | - | 1,222,381 |
20-Apr | - | - | - | 1,222,381 |
20-May | - | - | - | 1,222,381 |
20-Jun | - | - | - | 1,222,381 |
Total | - | - | - | |
*On December 6, 2011, the Board of Trustees approved a share repurchase plan (the Repurchase Plan), which was subsequently reviewed and approved by the Board of Trustees each year in December. Under the Repurchase Plan, the Fund was allowed to purchase, in the open market, up to 10% of its outstanding common shares between January 1, 2020 and December 31, 2020 (based on common shares outstanding as of December 31, 2019). |
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 disclosed John Hancock Funds – Nominating and Governance 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.
(a) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(c)(1) Submission of Matters to a Vote of Security Holders is attached. See attached "John Hancock Funds - Governance Committee Charter".
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 Hedged Equity & Income Fund
By: | /s/ Andrew Arnott |
Andrew Arnott | |
President | |
Date: | August 11, 2020 |
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.
By: | /s/ Andrew Arnott |
Andrew Arnott | |
President | |
Date: | August 11, 2020 |
By: | /s/ Charles A. Rizzo |
Charles A. Rizzo | |
Chief Financial Officer | |
Date: | August 11, 2020 |