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: 617-543-9634
Date of fiscal year end: | December 31 |
Date of reporting period: | December 31, 2021 |
ITEM 1. REPORT TO STOCKHOLDERS
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
1 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 2 |
3 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 4 |
TOP 10 HOLDINGS AS OF 12/31/2021 (% of net assets) | |
Pfizer, Inc. | 2.6 |
Johnson & Johnson | 1.7 |
The Bank of Nova Scotia | 1.4 |
AXA SA | 1.4 |
Taiwan Semiconductor Manufacturing Company, Ltd. | 1.3 |
Merck & Company, Inc. | 1.3 |
Texas Instruments, Inc. | 1.2 |
Philip Morris International, Inc. | 1.2 |
Verizon Communications, Inc. | 1.2 |
Bank of America Corp. | 1.1 |
TOTAL | 14.4 |
Cash and cash equivalents are not included. |
COUNTRY COMPOSITION AS OF 12/31/2021 (% of net assets) | |
United States | 46.4 |
Japan | 9.9 |
Canada | 7.0 |
United Kingdom | 6.7 |
France | 6.1 |
Switzerland | 4.7 |
South Korea | 3.0 |
Netherlands | 1.7 |
Taiwan | 1.4 |
Other countries | 13.1 |
TOTAL | 100.0 |
5 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 6 |
Average annual total returns (%) | Cumulative total returns (%) | ||||
1-Year | 5-Year | 10-Year | 5-year | 10-Year | |
At Net asset value | 11.69 | 5.13 | 7.00 | 28.44 | 96.72 |
At Market price | 24.20 | 6.52 | 8.57 | 37.17 | 127.51 |
MSCI ACWI | 18.54 | 14.40 | 11.85 | 95.92 | 206.49 |
7 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 8 |
Shares | Value | ||||
Common stocks 83.4% | $132,832,872 | ||||
(Cost $124,879,524) | |||||
Communication services 6.9% | 10,976,439 | ||||
Diversified telecommunication services 3.4% | |||||
AT&T, Inc. | 21,191 | 521,299 | |||
BT Group PLC | 49,792 | 114,546 | |||
Frontier Communications Parent, Inc. (A) | 1,784 | 52,610 | |||
Hellenic Telecommunications Organization SA | 55,379 | 1,023,079 | |||
Koninklijke KPN NV | 275,268 | 853,503 | |||
KT Corp. | 4,912 | 126,003 | |||
Magyar Telekom Telecommunications PLC | 25,587 | 32,516 | |||
Orange SA | 10,330 | 110,347 | |||
Swisscom AG | 333 | 187,853 | |||
Telefonica Brasil SA | 6,913 | 60,012 | |||
Telenor ASA | 24,445 | 384,252 | |||
Telkom Indonesia Persero Tbk PT | 137,641 | 39,283 | |||
Turk Telekomunikasyon AS | 77,401 | 56,310 | |||
Verizon Communications, Inc. | 35,091 | 1,823,328 | |||
Entertainment 0.1% | |||||
DeNA Company, Ltd. | 4,680 | 72,067 | |||
Nintendo Company, Ltd. | 385 | 180,125 | |||
Interactive media and services 0.0% | |||||
Gree, Inc. | 1,460 | 10,734 | |||
Media 2.4% | |||||
Comcast Corp., Class A | 23,107 | 1,162,975 | |||
Criteo SA, ADR (A) | 831 | 32,301 | |||
Dentsu Group, Inc. | 19,527 | 695,029 | |||
Fuji Media Holdings, Inc. | 3,145 | 30,263 | |||
Metropole Television SA | 3,785 | 74,065 | |||
Nippon Television Holdings, Inc. | 5,910 | 59,967 | |||
Omnicom Group, Inc. | 5,050 | 370,014 | |||
RTL Group SA | 1,843 | 97,682 | |||
Television Francaise 1 | 9,933 | 98,698 | |||
The Interpublic Group of Companies, Inc. | 22,548 | 844,423 | |||
TV Asahi Holdings Corp. | 3,930 | 48,920 | |||
ViacomCBS, Inc., Class B | 1,083 | 32,685 | |||
WPP PLC | 13,772 | 209,716 | |||
Zee Entertainment Enterprises, Ltd. | 9,846 | 42,267 | |||
Wireless telecommunication services 1.0% | |||||
America Movil SAB de CV, Series L, ADR | 4,052 | 85,538 | |||
KDDI Corp. | 28,406 | 830,697 | |||
MTN Group, Ltd. (A) | 3,401 | 36,455 |
9 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Communication services (continued) | |||||
Wireless telecommunication services (continued) | |||||
SK Telecom Company, Ltd. | 2,205 | $107,155 | |||
SoftBank Corp. | 29,453 | 372,008 | |||
Turkcell Iletisim Hizmetleri AS | 30,068 | 41,836 | |||
VEON, Ltd., ADR (A) | 32,677 | 55,878 | |||
Consumer discretionary 6.6% | 10,605,918 | ||||
Auto components 0.8% | |||||
Bridgestone Corp. | 15,646 | 671,724 | |||
Continental AG (A) | 895 | 94,034 | |||
Exedy Corp. | 1,825 | 26,420 | |||
Hankook Tire & Technology Company, Ltd. (A) | 1,625 | 54,287 | |||
Hyundai Mobis Company, Ltd. | 144 | 30,781 | |||
NOK Corp. | 6,415 | 69,875 | |||
Sumitomo Electric Industries, Ltd. | 8,840 | 115,371 | |||
Sumitomo Riko Company, Ltd. | 3,060 | 15,803 | |||
Tachi-S Company, Ltd. | 3,170 | 34,844 | |||
Tokai Rika Company, Ltd. | 4,750 | 64,017 | |||
Toyota Boshoku Corp. | 1,000 | 19,620 | |||
TS Tech Company, Ltd. | 5,100 | 62,778 | |||
Unipres Corp. | 5,000 | 34,955 | |||
Automobiles 2.3% | |||||
Astra International Tbk PT | 182,546 | 73,064 | |||
Daimler AG | 1,624 | 124,080 | |||
Dongfeng Motor Group Company, Ltd., H Shares | 113,426 | 94,291 | |||
Hero MotoCorp, Ltd. | 5,095 | 168,344 | |||
Honda Motor Company, Ltd. | 8,670 | 246,668 | |||
Isuzu Motors, Ltd. | 69,632 | 866,673 | |||
Kia Corp. (A) | 9,602 | 662,664 | |||
Mitsubishi Motors Corp. (A) | 9,220 | 25,692 | |||
Nissan Motor Company, Ltd. (A) | 19,500 | 93,923 | |||
Renault SA (A) | 1,947 | 67,542 | |||
Subaru Corp. | 6,190 | 110,602 | |||
Toyota Motor Corp. | 22,231 | 410,886 | |||
XPeng, Inc., ADR (A) | 822 | 41,371 | |||
Yamaha Motor Company, Ltd. | 25,239 | 606,218 | |||
Diversified consumer services 0.0% | |||||
Benesse Holdings, Inc. | 420 | 8,248 | |||
Hotels, restaurants and leisure 0.9% | |||||
Darden Restaurants, Inc. | 1,770 | 266,633 | |||
McDonald’s Corp. | 1,103 | 295,681 | |||
OPAP SA | 18,758 | 265,678 | |||
Sands China, Ltd. (A) | 203,200 | 471,586 | |||
Starbucks Corp. | 1,663 | 194,521 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 10 |
Shares | Value | ||||
Consumer discretionary (continued) | |||||
Household durables 0.4% | |||||
Coway Company, Ltd. (A) | 1,124 | $70,420 | |||
Garmin, Ltd. | 3,259 | 443,778 | |||
Nikon Corp. | 6,345 | 68,350 | |||
Tamron Company, Ltd. | 780 | 19,352 | |||
Leisure products 0.2% | |||||
Bandai Namco Holdings, Inc. | 2,394 | 187,183 | |||
Hasbro, Inc. | 982 | 99,948 | |||
Multiline retail 0.1% | |||||
Marks & Spencer Group PLC (A) | 13,822 | 43,481 | |||
Target Corp. | 703 | 162,702 | |||
Specialty retail 1.9% | |||||
CECONOMY AG (A) | 10,054 | 43,254 | |||
Chow Tai Fook Jewellery Group, Ltd. (A) | 331,888 | 598,022 | |||
Industria de Diseno Textil SA | 17,881 | 576,663 | |||
Kingfisher PLC | 15,628 | 71,885 | |||
Shimamura Company, Ltd. | 1,070 | 89,795 | |||
The Home Depot, Inc. | 3,230 | 1,340,482 | |||
USS Company, Ltd. | 19,396 | 303,038 | |||
Xebio Holdings Company, Ltd. | 5,075 | 40,702 | |||
Textiles, apparel and luxury goods 0.0% | |||||
Sanyo Shokai, Ltd. (A) | 1,860 | 14,369 | |||
Yue Yuen Industrial Holdings, Ltd. (A) | 26,058 | 43,620 | |||
Consumer staples 5.5% | 8,721,553 | ||||
Beverages 0.5% | |||||
Anadolu Efes Biracilik Ve Malt Sanayii AS | 21,894 | 49,039 | |||
Coca-Cola Icecek AS | 6,665 | 44,706 | |||
Embotelladora Andina SA, Series B, ADR | 3,918 | 50,503 | |||
PepsiCo, Inc. | 1,736 | 301,561 | |||
The Coca-Cola Company | 5,119 | 303,096 | |||
Food and staples retailing 0.1% | |||||
Carrefour SA | 4,836 | 88,661 | |||
J Sainsbury PLC | 30,371 | 113,526 | |||
METRO AG | 2,069 | 21,705 | |||
Food products 1.8% | |||||
Astral Foods, Ltd. | 3,471 | 37,601 | |||
General Mills, Inc. | 3,432 | 231,248 | |||
Kellogg Company | 14,820 | 954,704 | |||
Mondelez International, Inc., Class A | 997 | 66,111 | |||
Nestle SA | 8,410 | 1,174,181 | |||
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT | 104,784 | 8,726 |
11 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Consumer staples (continued) | |||||
Food products (continued) | |||||
The Hershey Company | 427 | $82,612 | |||
The J.M. Smucker Company | 499 | 67,774 | |||
The Kraft Heinz Company | 4,156 | 149,200 | |||
Ulker Biskuvi Sanayi AS | 22,594 | 29,795 | |||
Household products 1.1% | |||||
Colgate-Palmolive Company | 1,953 | 166,669 | |||
Kimberly-Clark Corp. | 1,291 | 184,510 | |||
The Clorox Company | 621 | 108,278 | |||
The Procter & Gamble Company | 7,724 | 1,263,492 | |||
Unilever Indonesia Tbk PT | 376,852 | 108,677 | |||
Personal products 0.1% | |||||
Unilever PLC | 1,732 | 92,916 | |||
Tobacco 1.9% | |||||
Altria Group, Inc. | 12,997 | 615,928 | |||
British American Tobacco PLC | 7,631 | 283,352 | |||
KT&G Corp. | 2,627 | 174,532 | |||
Philip Morris International, Inc. | 20,510 | 1,948,450 | |||
Energy 7.7% | 12,257,291 | ||||
Energy equipment and services 0.1% | |||||
Fugro NV (A) | 3,899 | 30,596 | |||
Saipem SpA (A) | 16,722 | 35,061 | |||
Trican Well Service, Ltd. (A) | 16,508 | 36,149 | |||
Oil, gas and consumable fuels 7.6% | |||||
Adaro Energy Tbk PT | 5,902,380 | 936,038 | |||
ARC Resources, Ltd. | 4,777 | 43,429 | |||
BP PLC | 65,900 | 295,273 | |||
Cameco Corp. | 3,629 | 79,124 | |||
Canadian Natural Resources, Ltd. | 15,303 | 646,623 | |||
Chevron Corp. | 2,103 | 246,787 | |||
Coal India, Ltd. | 102,617 | 201,449 | |||
Devon Energy Corp. | 15,186 | 668,943 | |||
Enbridge, Inc. | 31,403 | 1,226,627 | |||
Eni SpA | 15,027 | 208,842 | |||
EOG Resources, Inc. | 7,192 | 638,865 | |||
Exxon Mobil Corp. | 7,090 | 433,837 | |||
Foresight Energy LLC (A) | 191 | 2,477 | |||
Galp Energia SGPS SA | 3,004 | 29,148 | |||
Gazprom PJSC, ADR | 17,587 | 161,625 | |||
Inpex Corp. | 92,110 | 800,951 | |||
Japan Petroleum Exploration Company, Ltd. | 2,105 | 45,838 | |||
LUKOIL PJSC, ADR | 339 | 30,442 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 12 |
Shares | Value | ||||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
Lundin Energy AB | 17,207 | $615,714 | |||
Oil & Natural Gas Corp., Ltd. | 36,403 | 69,538 | |||
Ovintiv, Inc. | 1,285 | 43,235 | |||
Pioneer Natural Resources Company | 3,651 | 664,044 | |||
Royal Dutch Shell PLC, B Shares | 19,036 | 417,965 | |||
Suncor Energy, Inc. | 25,804 | 645,635 | |||
Surgutneftegas PJSC, ADR (London Stock Exchange) | 14,506 | 77,583 | |||
TC Energy Corp. | 23,924 | 1,112,652 | |||
The Williams Companies, Inc. | 9,820 | 255,713 | |||
TotalEnergies SE | 28,596 | 1,455,542 | |||
Tourmaline Oil Corp. | 1,517 | 48,978 | |||
Ultrapar Participacoes SA | 13,893 | 36,837 | |||
YPF SA, ADR (A) | 4,118 | 15,731 | |||
Financials 18.0% | 28,616,066 | ||||
Banks 8.7% | |||||
ABN AMRO Bank NV (B) | 7,579 | 111,409 | |||
AIB Group PLC (A) | 38,558 | 93,956 | |||
Bank Mandiri Persero Tbk PT | 214,809 | 106,068 | |||
Bank of America Corp. | 40,849 | 1,817,372 | |||
Bank of Ireland Group PLC (A) | 15,541 | 88,016 | |||
Bank of Montreal | 5,853 | 630,159 | |||
BNP Paribas SA | 2,912 | 201,339 | |||
BPER Banca | 29,030 | 59,997 | |||
CaixaBank SA | 54,071 | 147,702 | |||
Canara Bank (A) | 17,210 | 46,016 | |||
CIMB Group Holdings BHD | 65,944 | 86,260 | |||
Dah Sing Financial Holdings, Ltd. | 11,819 | 35,797 | |||
DGB Financial Group, Inc. (A) | 8,439 | 66,498 | |||
DNB Bank ASA | 44,997 | 1,029,249 | |||
Erste Group Bank AG | 1,921 | 90,057 | |||
Huntington Bancshares, Inc. | 9,211 | 142,034 | |||
Industrial Bank of Korea | 4,034 | 34,897 | |||
ING Groep NV | 12,165 | 169,130 | |||
Kasikornbank PCL | 17,152 | 72,620 | |||
Kasikornbank PCL, NVDR | 14,682 | 62,163 | |||
KB Financial Group, Inc. | 3,429 | 158,572 | |||
Mitsubishi UFJ Financial Group, Inc. | 185,189 | 1,007,849 | |||
Resona Holdings, Inc. | 34,860 | 135,472 | |||
Royal Bank of Canada | 16,217 | 1,721,121 | |||
Sberbank of Russia PJSC, ADR | 3,353 | 52,810 | |||
Shinhan Financial Group Company, Ltd. | 4,445 | 137,346 | |||
Skandinaviska Enskilda Banken AB, A Shares | 41,245 | 572,627 |
13 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Banks (continued) | |||||
Societe Generale SA | 5,001 | $171,878 | |||
Standard Chartered PLC | 125,022 | 760,232 | |||
Sumitomo Mitsui Financial Group, Inc. | 5,230 | 178,590 | |||
Sumitomo Mitsui Trust Holdings, Inc. | 3,850 | 128,738 | |||
The Bank of Nova Scotia | 31,375 | 2,221,140 | |||
The Tochigi Bank, Ltd. | 9,810 | 19,691 | |||
The Toronto-Dominion Bank | 8,377 | 642,240 | |||
Truist Financial Corp. | 6,858 | 401,536 | |||
Unicaja Banco SA (B) | 63,988 | 62,954 | |||
UniCredit SpA | 13,955 | 214,507 | |||
Woori Financial Group, Inc. | 12,623 | 134,616 | |||
Capital markets 2.9% | |||||
BlackRock, Inc. | 173 | 158,392 | |||
CME Group, Inc. | 3,038 | 694,061 | |||
GAM Holding AG (A) | 3,875 | 5,772 | |||
Hargreaves Lansdown PLC | 1,101 | 20,232 | |||
Ichiyoshi Securities Company, Ltd. | 4,250 | 24,363 | |||
IGM Financial, Inc. | 18,145 | 654,393 | |||
Intercontinental Exchange, Inc. | 493 | 67,428 | |||
Julius Baer Group, Ltd. | 513 | 34,305 | |||
Magellan Financial Group, Ltd. | 801 | 12,377 | |||
MarketAxess Holdings, Inc. | 65 | 26,733 | |||
Meritz Securities Company, Ltd. (A) | 154,292 | 668,037 | |||
Nomura Holdings, Inc. | 10,073 | 43,874 | |||
Partners Group Holding AG | 28 | 46,223 | |||
T. Rowe Price Group, Inc. | 2,021 | 397,409 | |||
The Blackstone Group, Inc. | 2,162 | 279,741 | |||
UBS Group AG | 83,566 | 1,499,950 | |||
Consumer finance 0.0% | |||||
Provident Financial PLC (A) | 12,942 | 63,108 | |||
Diversified financial services 0.1% | |||||
FirstRand, Ltd. | 24,108 | 91,975 | |||
G-Resources Group, Ltd. (A) | 20,130 | 7,236 | |||
Insurance 6.2% | |||||
Admiral Group PLC | 9,783 | 418,756 | |||
Ageas SA/NV | 2,058 | 106,578 | |||
Allianz SE | 904 | 213,216 | |||
Arthur J. Gallagher & Company | 469 | 79,575 | |||
Assicurazioni Generali SpA | 26,792 | 566,241 | |||
Aviva PLC | 28,618 | 159,522 | |||
AXA SA | 73,360 | 2,183,433 | |||
Caixa Seguridade Participacoes S/A | 32,753 | 48,923 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 14 |
Shares | Value | ||||
Financials (continued) | |||||
Insurance (continued) | |||||
China Reinsurance Group Corp., H Shares | 691,754 | $66,566 | |||
Dai-ichi Life Holdings, Inc. | 6,365 | 128,382 | |||
DB Insurance Company, Ltd. (A) | 14,110 | 640,631 | |||
Gjensidige Forsikring ASA | 2,078 | 50,414 | |||
MS&AD Insurance Group Holdings, Inc. | 1,960 | 60,353 | |||
Old Mutual, Ltd. | 93,155 | 76,521 | |||
Phoenix Group Holdings PLC | 39,951 | 353,647 | |||
Power Corp. of Canada | 19,990 | 660,565 | |||
Sanlam, Ltd. | 35,789 | 133,375 | |||
SCOR SE | 2,858 | 89,222 | |||
Swiss Re AG | 2,115 | 208,779 | |||
T&D Holdings, Inc. | 12,615 | 161,166 | |||
The Progressive Corp. | 15,538 | 1,594,976 | |||
Tokio Marine Holdings, Inc. | 20,700 | 1,152,361 | |||
Tongyang Life Insurance Company, Ltd. (A) | 5,633 | 31,242 | |||
Zurich Insurance Group AG | 1,488 | 651,862 | |||
Mortgage real estate investment trusts 0.1% | |||||
Annaly Capital Management, Inc. | 21,930 | 171,493 | |||
Health care 11.2% | 17,906,449 | ||||
Biotechnology 1.0% | |||||
AbbVie, Inc. | 10,767 | 1,457,852 | |||
Amgen, Inc. | 994 | 223,620 | |||
Health care equipment and supplies 0.8% | |||||
Abbott Laboratories | 2,127 | 299,354 | |||
Becton, Dickinson and Company | 286 | 71,923 | |||
Medtronic PLC | 7,659 | 792,324 | |||
Paramount Bed Holdings Company, Ltd. | 2,570 | 43,596 | |||
Health care providers and services 0.4% | |||||
Alfresa Holdings Corp. | 4,680 | 62,365 | |||
Cardinal Health, Inc. | 1,836 | 94,536 | |||
CVS Health Corp. | 1,390 | 143,392 | |||
Fresenius SE & Company KGaA | 3,888 | 156,272 | |||
Netcare, Ltd. (A) | 19,585 | 19,529 | |||
UnitedHealth Group, Inc. | 379 | 190,311 | |||
Health care technology 0.0% | |||||
AGFA-Gevaert NV (A) | 7,366 | 31,801 | |||
Life sciences tools and services 0.0% | |||||
CMIC Holdings Company, Ltd. | 1,420 | 18,898 | |||
Pharmaceuticals 9.0% | |||||
AstraZeneca PLC | 11,824 | 1,380,681 | |||
Bristol-Myers Squibb Company | 14,304 | 891,854 |
15 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Health care (continued) | |||||
Pharmaceuticals (continued) | |||||
Eisai Company, Ltd. | 770 | $43,711 | |||
Eli Lilly & Company | 571 | 157,722 | |||
GlaxoSmithKline PLC | 217 | 4,725 | |||
Johnson & Johnson | 16,068 | 2,748,753 | |||
Kissei Pharmaceutical Company, Ltd. | 1,840 | 36,106 | |||
Merck & Company, Inc. | 26,339 | 2,018,621 | |||
Novartis AG | 20,680 | 1,817,192 | |||
Ono Pharmaceutical Company, Ltd. | 6,230 | 154,849 | |||
Pfizer, Inc. | 68,907 | 4,068,942 | |||
Roche Holding AG | 1,626 | 674,564 | |||
Sanofi | 1,140 | 114,392 | |||
Takeda Pharmaceutical Company, Ltd. | 6,905 | 188,564 | |||
Industrials 6.8% | 10,904,487 | ||||
Aerospace and defense 1.8% | |||||
Austal, Ltd. | 15,157 | 21,499 | |||
Babcock International Group PLC (A) | 17,337 | 75,085 | |||
BAE Systems PLC | 167,941 | 1,252,368 | |||
Dassault Aviation SA | 791 | 85,552 | |||
Lockheed Martin Corp. | 3,812 | 1,354,823 | |||
Northrop Grumman Corp. | 85 | 32,901 | |||
Air freight and logistics 0.3% | |||||
bpost SA (A) | 2,754 | 24,038 | |||
CH Robinson Worldwide, Inc. | 1,163 | 125,174 | |||
PostNL NV | 12,549 | 54,565 | |||
United Parcel Service, Inc., Class B | 1,022 | 219,055 | |||
Airlines 0.1% | |||||
easyJet PLC (A) | 4,953 | 37,623 | |||
Japan Airlines Company, Ltd. (A) | 4,870 | 92,449 | |||
Building products 0.5% | |||||
AGC, Inc. | 13,457 | 642,882 | |||
Cie de Saint-Gobain | 3,452 | 242,836 | |||
Commercial services and supplies 0.2% | |||||
Aeon Delight Company, Ltd. | 2,179 | 63,866 | |||
Prosegur Cia de Seguridad SA | 20,161 | 52,882 | |||
Republic Services, Inc. | 693 | 96,639 | |||
Toppan, Inc. | 3,360 | 63,053 | |||
Waste Management, Inc. | 603 | 100,641 | |||
Construction and engineering 0.7% | |||||
Chiyoda Corp. (A) | 6,515 | 19,913 | |||
Implenia AG (A) | 1,769 | 40,237 | |||
JGC Holdings Corp. | 10,655 | 89,009 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 16 |
Shares | Value | ||||
Industrials (continued) | |||||
Construction and engineering (continued) | |||||
Vinci SA | 9,735 | $1,028,160 | |||
Electrical equipment 0.1% | |||||
Cosel Company, Ltd. | 4,470 | 33,199 | |||
Emerson Electric Company | 312 | 29,007 | |||
Ushio, Inc. | 2,770 | 46,022 | |||
Zumtobel Group AG | 2,577 | 22,574 | |||
Industrial conglomerates 0.6% | |||||
3M Company | 1,940 | 344,602 | |||
Alfa SAB de CV, Class A | 895,670 | 657,465 | |||
Machinery 0.8% | |||||
Caterpillar, Inc. | 391 | 80,835 | |||
Daimler Truck Holding AG (A) | 812 | 29,851 | |||
Hino Motors, Ltd. | 11,910 | 98,209 | |||
Hisaka Works, Ltd. | 2,930 | 21,991 | |||
Kone OYJ, B Shares | 5,859 | 420,434 | |||
Makino Milling Machine Company, Ltd. | 1,040 | 37,218 | |||
Mitsubishi Heavy Industries, Ltd. | 1,655 | 38,264 | |||
OKUMA Corp. | 930 | 41,389 | |||
PACCAR, Inc. | 2,210 | 195,055 | |||
Stanley Black & Decker, Inc. | 349 | 65,828 | |||
Sumitomo Heavy Industries, Ltd. | 2,860 | 69,420 | |||
THK Company, Ltd. | 4,770 | 115,740 | |||
Marine 0.1% | |||||
D/S Norden A/S | 2,794 | 70,932 | |||
Pacific Basin Shipping, Ltd. | 172,846 | 63,540 | |||
Professional services 0.8% | |||||
Adecco Group AG | 3,416 | 174,070 | |||
Bureau Veritas SA | 27,838 | 924,192 | |||
Hays PLC | 42,292 | 83,973 | |||
Pagegroup PLC | 8,006 | 68,812 | |||
SThree PLC | 5,643 | 35,421 | |||
Road and rail 0.0% | |||||
The Go-Ahead Group PLC (A) | 2,208 | 19,977 | |||
Trading companies and distributors 0.8% | |||||
Mitsubishi Corp. | 8,743 | 277,617 | |||
Mitsui & Company, Ltd. | 5,071 | 120,172 | |||
Rexel SA (A) | 2,700 | 54,682 | |||
SIG PLC (A) | 21,698 | 13,979 | |||
Triton International, Ltd. | 12,753 | 768,113 | |||
Transportation infrastructure 0.0% | |||||
Kamigumi Company, Ltd. | 3,520 | 66,654 |
17 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Information technology 9.6% | $15,249,113 | ||||
Communications equipment 1.2% | |||||
Cisco Systems, Inc. | 25,844 | 1,637,734 | |||
Motorola Solutions, Inc. | 130 | 35,321 | |||
Nokia OYJ (A) | 29,818 | 188,858 | |||
Electronic equipment, instruments and components 0.3% | |||||
Alps Alpine Company, Ltd. | 5,850 | 55,177 | |||
Citizen Watch Company, Ltd. | 16,685 | 72,220 | |||
Delta Electronics Thailand PCL | 1,344 | 16,638 | |||
Enplas Corp. | 380 | 9,012 | |||
Foxconn Technology Company, Ltd. | 26,935 | 63,076 | |||
Hon Hai Precision Industry Company, Ltd. | 25,351 | 95,070 | |||
Nichicon Corp. | 2,430 | 26,701 | |||
Nippon Chemi-Con Corp. (A) | 3,450 | 53,629 | |||
PAX Global Technology, Ltd. | 32,173 | 22,776 | |||
IT services 1.4% | |||||
Automatic Data Processing, Inc. | 1,101 | 271,485 | |||
Broadridge Financial Solutions, Inc. | 1,225 | 223,955 | |||
Fidelity National Information Services, Inc. | 930 | 101,510 | |||
IBM Corp. | 3,439 | 459,657 | |||
Itochu Techno-Solutions Corp. | 2,169 | 69,772 | |||
Jack Henry & Associates, Inc. | 553 | 92,345 | |||
Mastercard, Inc., Class A | 952 | 342,073 | |||
Paychex, Inc. | 864 | 117,936 | |||
Sopra Steria Group SACA | 139 | 24,945 | |||
The Western Union Company | 5,607 | 100,029 | |||
Visa, Inc., Class A | 1,907 | 413,266 | |||
Semiconductors and semiconductor equipment 4.3% | |||||
Analog Devices, Inc. | 2,412 | 423,957 | |||
Broadcom, Inc. | 773 | 514,362 | |||
Disco Corp. | 806 | 246,356 | |||
Intel Corp. | 13,864 | 713,996 | |||
KLA Corp. | 655 | 281,722 | |||
Miraial Company, Ltd. | 2,090 | 35,012 | |||
NVIDIA Corp. | 430 | 126,467 | |||
QUALCOMM, Inc. | 1,965 | 359,340 | |||
Skyworks Solutions, Inc. | 893 | 138,540 | |||
Taiwan Semiconductor Manufacturing Company, Ltd. | 91,998 | 2,035,087 | |||
Texas Instruments, Inc. | 10,523 | 1,983,270 | |||
Tokyo Seimitsu Company, Ltd. | 815 | 36,099 | |||
Software 1.1% | |||||
Intuit, Inc. | 565 | 363,419 | |||
The Sage Group PLC | 57,669 | 667,284 | |||
Trend Micro, Inc. | 13,877 | 770,396 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 18 |
Shares | Value | ||||
Information technology (continued) | |||||
Technology hardware, storage and peripherals 1.3% | |||||
Canon, Inc. | 38,344 | $935,350 | |||
Catcher Technology Company, Ltd. | 13,607 | 76,923 | |||
HP, Inc. | 7,595 | 286,104 | |||
Maxell, Ltd. | 3,410 | 40,588 | |||
Quadient SA | 2,923 | 63,659 | |||
Samsung Electronics Company, Ltd. | 10,019 | 657,997 | |||
Materials 3.9% | 6,154,392 | ||||
Chemicals 0.4% | |||||
BASF SE | 3,357 | 235,612 | |||
China BlueChemical, Ltd., H Shares | 133,156 | 37,070 | |||
EMS-Chemie Holding AG | 113 | 126,287 | |||
PhosAgro PJSC, GDR | 9,100 | 196,378 | |||
Construction materials 0.2% | |||||
Holcim, Ltd. (A) | 3,911 | 198,910 | |||
Imerys SA | 1,379 | 57,289 | |||
Taiheiyo Cement Corp. | 3,580 | 70,696 | |||
Vicat SA | 1,230 | 50,393 | |||
Containers and packaging 0.1% | |||||
International Paper Company | 2,774 | 130,323 | |||
Nampak, Ltd. (A) | 49,556 | 12,155 | |||
Metals and mining 3.2% | |||||
African Rainbow Minerals, Ltd. | 6,478 | 93,917 | |||
Anglo American Platinum, Ltd. | 576 | 65,697 | |||
Anglo American PLC | 4,404 | 181,146 | |||
Barrick Gold Corp. | 5,257 | 99,949 | |||
BHP Group PLC | 7,250 | 215,722 | |||
BHP Group, Ltd. | 13,743 | 414,925 | |||
Centamin PLC | 31,933 | 38,664 | |||
Centerra Gold, Inc. | 6,235 | 48,058 | |||
Chubu Steel Plate Company, Ltd. | 1,386 | 11,330 | |||
Eldorado Gold Corp. (A) | 3,731 | 34,885 | |||
Endeavour Mining PLC | 2,739 | 60,044 | |||
Eregli Demir ve Celik Fabrikalari TAS | 41,542 | 88,378 | |||
Gold Fields, Ltd. | 2,737 | 30,283 | |||
Harmony Gold Mining Company, Ltd., ADR | 10,372 | 42,629 | |||
Impala Platinum Holdings, Ltd. | 5,943 | 83,836 | |||
Kinross Gold Corp. (New York Stock Exchange) | 12,455 | 72,364 | |||
Korea Zinc Company, Ltd. (A) | 1,946 | 837,307 | |||
Kyoei Steel, Ltd. | 4,160 | 51,196 | |||
Maruichi Steel Tube, Ltd. | 3,150 | 69,795 | |||
MMC Norilsk Nickel PJSC, ADR | 10,311 | 316,238 | |||
Nakayama Steel Works, Ltd. | 5,890 | 21,846 |
19 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Materials (continued) | |||||
Metals and mining (continued) | |||||
Neturen Company, Ltd. | 4,120 | $20,894 | |||
Newmont Corp. | 1,387 | 86,008 | |||
Norsk Hydro ASA | 5,730 | 45,087 | |||
Nucor Corp. | 752 | 85,841 | |||
OceanaGold Corp. (A) | 21,643 | 37,641 | |||
Pacific Metals Company, Ltd. | 1,630 | 30,295 | |||
Polyus PJSC, GDR | 252 | 22,258 | |||
Polyus PJSC, GDR (London Stock Exchange) | 29 | 2,561 | |||
Resolute Mining, Ltd. (A) | 35,460 | 10,093 | |||
Rio Tinto PLC | 24,323 | 1,604,010 | |||
Rio Tinto, Ltd. | 1,018 | 74,286 | |||
Tokyo Steel Manufacturing Company, Ltd. | 4,350 | 52,178 | |||
Yamato Kogyo Company, Ltd. | 1,845 | 59,797 | |||
Yodogawa Steel Works, Ltd. | 1,360 | 30,121 | |||
Real estate 2.6% | 4,177,375 | ||||
Equity real estate investment trusts 1.9% | |||||
Digital Realty Trust, Inc. | 1,780 | 314,829 | |||
Extra Space Storage, Inc. | 177 | 40,131 | |||
Iron Mountain, Inc. | 2,648 | 138,570 | |||
Land Securities Group PLC | 7,012 | 74,004 | |||
Medical Properties Trust, Inc. | 58,992 | 1,393,981 | |||
Public Storage | 837 | 313,507 | |||
Simon Property Group, Inc. | 4,031 | 644,033 | |||
The British Land Company PLC | 10,233 | 73,896 | |||
WP Carey, Inc. | 1,081 | 88,696 | |||
Real estate management and development 0.7% | |||||
Agile Group Holdings, Ltd. | 3,170 | 1,721 | |||
CK Asset Holdings, Ltd. | 17,558 | 110,755 | |||
Jinke Properties Group Company, Ltd., Class A | 13,100 | 9,215 | |||
Mitsubishi Estate Company, Ltd. | 7,830 | 108,622 | |||
Nexity SA | 17,419 | 820,271 | |||
Shimao Group Holdings, Ltd. | 68,955 | 45,144 | |||
Utilities 4.6% | 7,263,789 | ||||
Electric utilities 2.9% | |||||
Alliant Energy Corp. | 1,084 | 66,633 | |||
American Electric Power Company, Inc. | 1,623 | 144,398 | |||
CEZ AS | 4,778 | 180,841 | |||
Duke Energy Corp. | 12,985 | 1,362,127 | |||
Edison International | 22,836 | 1,558,557 | |||
Entergy Corp. | 502 | 56,550 | |||
Exelon Corp. | 15,979 | 922,947 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 20 |
Shares | Value | ||||
Utilities (continued) | |||||
Electric utilities (continued) | |||||
FirstEnergy Corp. | 1,270 | $52,819 | |||
NextEra Energy, Inc. | 844 | 78,796 | |||
PPL Corp. | 6,434 | 193,406 | |||
Gas utilities 0.1% | |||||
Enagas SA | 3,040 | 70,623 | |||
Naturgy Energy Group SA | 3,511 | 114,196 | |||
Multi-utilities 1.5% | |||||
Centrica PLC (A) | 44,674 | 43,322 | |||
CMS Energy Corp. | 378 | 24,589 | |||
Consolidated Edison, Inc. | 4,215 | 359,624 | |||
Dominion Energy, Inc. | 1,139 | 89,480 | |||
Engie SA | 14,620 | 216,455 | |||
National Grid PLC | 110,254 | 1,589,784 | |||
WEC Energy Group, Inc. | 514 | 49,894 | |||
Water utilities 0.1% | |||||
Cia de Saneamento Basico do Estado de Sao Paulo | 12,153 | 88,748 | |||
Preferred securities 0.3% | $536,725 | ||||
(Cost $607,571) | |||||
Consumer discretionary 0.2% | 394,334 | ||||
Automobiles 0.2% | |||||
Volkswagen AG | 1,963 | 394,334 | |||
Information technology 0.1% | 124,294 | ||||
Technology hardware, storage and peripherals 0.1% | |||||
Samsung Electronics Company, Ltd. | 2,079 | 124,294 | |||
Materials 0.0% | 18,097 | ||||
Chemicals 0.0% | |||||
LG Chem, Ltd. (A) | 75 | 18,097 | |||
Exchange-traded funds 0.1% | $192,422 | ||||
(Cost $194,238) | |||||
iShares Core MSCI EAFE ETF | 2,578 | 192,422 | |||
Closed-end funds 0.1% | $49,445 | ||||
(Cost $42,097) | |||||
Sprott Physical Uranium Trust (A) | 4,490 | 49,445 | |||
Other equity investments 0.0% | $0 | ||||
(Cost $240,553) | |||||
Allstar Co-Invest LLC (LLC Interest) (A)(C)(D) | 236,300 | 0 | |||
21 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Foreign government obligations 0.0% | $50,439 | ||||
(Cost $60,976) | |||||
Argentina 0.0% | 50,439 | ||||
Republic of Argentina | |||||
Bond (1.125% to 7-9-22, then 1.500% to 7-9-23, then 3.625% to 7-9-24, then 4.125% to 7-9-27, then 4.750% to 7-9-28, then 5.000% thereafter) | 1.125 | 07-09-35 | 75,000 | 24,001 | |
Bond (2.500% to 7-9-22, then 3.500% to 7-9-29, then 4.875% thereafter) | 2.500 | 07-09-41 | 75,000 | 26,438 | |
Corporate bonds 12.9% | $20,654,282 | ||||
(Cost $20,154,926) | |||||
Communication services 2.1% | 3,294,476 | ||||
Diversified telecommunication services 0.6% | |||||
Embarq Corp. | 7.995 | 06-01-36 | 70,000 | 78,400 | |
Frontier Communications Holdings LLC (B) | 5.000 | 05-01-28 | 65,000 | 66,950 | |
Frontier Communications Holdings LLC (B) | 5.875 | 10-15-27 | 65,000 | 68,738 | |
Frontier Communications Holdings LLC | 5.875 | 11-01-29 | 90,473 | 90,473 | |
Frontier Communications Holdings LLC (B) | 6.750 | 05-01-29 | 105,000 | 109,200 | |
Kaixo Bondco Telecom SA (B) | 5.125 | 09-30-29 | EUR | 100,000 | 114,397 |
Lorca Telecom Bondco SA (B) | 4.000 | 09-18-27 | EUR | 120,000 | 138,840 |
WP/AP Telecom Holdings IV BV (B) | 3.750 | 01-15-29 | EUR | 100,000 | 114,937 |
Ziggo BV (B) | 5.500 | 01-15-27 | 150,000 | 154,125 | |
Entertainment 0.2% | |||||
Cinemark USA, Inc. (B) | 5.250 | 07-15-28 | 180,000 | 175,500 | |
Cinemark USA, Inc. (B) | 5.875 | 03-15-26 | 45,000 | 45,563 | |
ROBLOX Corp. (B) | 3.875 | 05-01-30 | 100,000 | 101,435 | |
Interactive media and services 0.2% | |||||
Arches Buyer, Inc. (B) | 4.250 | 06-01-28 | 95,000 | 94,951 | |
Arches Buyer, Inc. (B) | 6.125 | 12-01-28 | 90,000 | 90,562 | |
Endure Digital, Inc. (B) | 6.000 | 02-15-29 | 125,000 | 116,250 | |
Media 0.8% | |||||
Altice France SA (B) | 3.375 | 01-15-28 | EUR | 100,000 | 110,640 |
Altice France SA | 5.875 | 02-01-27 | EUR | 165,000 | 196,071 |
CCO Holdings LLC (B) | 4.250 | 02-01-31 | 45,000 | 45,395 | |
CCO Holdings LLC (B) | 4.250 | 01-15-34 | 125,000 | 122,978 | |
CCO Holdings LLC (B) | 4.500 | 08-15-30 | 45,000 | 46,044 | |
DISH DBS Corp. | 5.000 | 03-15-23 | 175,000 | 179,375 | |
DISH DBS Corp. | 5.875 | 07-15-22 | 75,000 | 76,219 | |
DISH DBS Corp. | 5.875 | 11-15-24 | 30,000 | 30,818 | |
DISH DBS Corp. | 7.750 | 07-01-26 | 30,000 | 31,650 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 22 |
Rate (%) | Maturity date | Par value^ | Value | ||
Communication services (continued) | |||||
Media (continued) | |||||
Scripps Escrow, Inc. (B) | 5.875 | 07-15-27 | 125,000 | $131,320 | |
Sirius XM Radio, Inc. (B) | 4.000 | 07-15-28 | 65,000 | 65,363 | |
United Group BV | 3.625 | 02-15-28 | EUR | 100,000 | 110,374 |
Virgin Media Secured Finance PLC (B) | 4.125 | 08-15-30 | GBP | 100,000 | 133,325 |
Wireless telecommunication services 0.3% | |||||
Sprint Corp. | 7.125 | 06-15-24 | 50,000 | 56,133 | |
Sprint Corp. | 7.875 | 09-15-23 | 100,000 | 110,125 | |
T-Mobile USA, Inc. | 2.250 | 02-15-26 | 35,000 | 35,088 | |
T-Mobile USA, Inc. (B) | 2.250 | 02-15-26 | 90,000 | 90,225 | |
T-Mobile USA, Inc. | 2.625 | 04-15-26 | 50,000 | 50,250 | |
Vmed O2 UK Financing I PLC (B) | 3.250 | 01-31-31 | EUR | 100,000 | 112,762 |
Consumer discretionary 2.5% | 4,021,885 | ||||
Auto components 0.1% | |||||
Adient Global Holdings, Ltd. | 3.500 | 08-15-24 | EUR | 200,000 | 230,275 |
Automobiles 0.3% | |||||
Ford Motor Company | 4.346 | 12-08-26 | 50,000 | 54,538 | |
Ford Motor Credit Company LLC | 3.339 | 03-28-22 | 200,000 | 200,350 | |
Ford Motor Credit Company LLC | 4.542 | 08-01-26 | 200,000 | 217,250 | |
Diversified consumer services 0.1% | |||||
Q-Park Holding I BV (B) | 2.000 | 03-01-27 | EUR | 100,000 | 107,341 |
SRS Distribution, Inc. (B) | 4.625 | 07-01-28 | 65,000 | 65,244 | |
Hotels, restaurants and leisure 1.0% | |||||
Caesars Entertainment, Inc. (B) | 6.250 | 07-01-25 | 95,000 | 99,714 | |
Caesars Entertainment, Inc. (B) | 8.125 | 07-01-27 | 105,000 | 116,281 | |
Caesars Resort Collection LLC (B) | 5.750 | 07-01-25 | 30,000 | 31,329 | |
Carnival Corp. (B) | 5.750 | 03-01-27 | 15,000 | 15,000 | |
Carnival Corp. (B) | 6.000 | 05-01-29 | 180,000 | 179,100 | |
Carnival Corp. (B) | 7.625 | 03-01-26 | 20,000 | 20,965 | |
Cirsa Finance International Sarl (B) | 4.500 | 03-15-27 | EUR | 100,000 | 111,192 |
Jacobs Entertainment, Inc. (B) | 7.875 | 02-01-24 | 165,000 | 168,300 | |
New Red Finance, Inc. (B) | 3.500 | 02-15-29 | 160,000 | 158,352 | |
New Red Finance, Inc. (B) | 4.000 | 10-15-30 | 60,000 | 58,950 | |
Penn National Gaming, Inc. (B) | 4.125 | 07-01-29 | 30,000 | 29,100 | |
Penn National Gaming, Inc. (B) | 5.625 | 01-15-27 | 186,000 | 189,720 | |
Royal Caribbean Cruises, Ltd. (B) | 5.500 | 08-31-26 | 125,000 | 127,100 | |
Sugarhouse HSP Gaming Prop Mezz LP (B) | 5.875 | 05-15-25 | 55,000 | 54,725 | |
Wheel Bidco, Ltd. (B) | 6.750 | 07-15-26 | GBP | 100,000 | 132,648 |
Yum! Brands, Inc. (B) | 4.750 | 01-15-30 | 30,000 | 32,475 | |
Household durables 0.3% | |||||
Ashton Woods USA LLC (B) | 4.625 | 04-01-30 | 20,000 | 19,650 |
23 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Household durables (continued) | |||||
Ashton Woods USA LLC (B) | 6.625 | 01-15-28 | 95,000 | $100,225 | |
Empire Communities Corp. (B) | 7.000 | 12-15-25 | 60,000 | 62,100 | |
KB Home | 4.800 | 11-15-29 | 30,000 | 32,745 | |
M/I Homes, Inc. | 3.950 | 02-15-30 | 40,000 | 39,400 | |
M/I Homes, Inc. | 4.950 | 02-01-28 | 70,000 | 72,800 | |
Taylor Morrison Communities, Inc. (B) | 5.750 | 01-15-28 | 140,000 | 156,450 | |
Leisure products 0.1% | |||||
MajorDrive Holdings IV LLC (B) | 6.375 | 06-01-29 | 130,000 | 125,775 | |
Mattel, Inc. (B) | 5.875 | 12-15-27 | 40,000 | 42,998 | |
Specialty retail 0.6% | |||||
Bath & Body Works, Inc. | 5.250 | 02-01-28 | 5,000 | 5,525 | |
Bath & Body Works, Inc. (B) | 6.625 | 10-01-30 | 50,000 | 56,625 | |
Parts Europe SA (B) | 6.500 | 07-16-25 | EUR | 100,000 | 117,828 |
Parts Europe SA | 6.500 | 07-16-25 | EUR | 100,000 | 117,828 |
Specialty Building Products Holdings LLC (B) | 6.375 | 09-30-26 | 175,000 | 183,412 | |
Staples, Inc. (B) | 7.500 | 04-15-26 | 200,000 | 205,500 | |
The Gap, Inc. (B) | 3.625 | 10-01-29 | 75,000 | 74,183 | |
The Gap, Inc. (B) | 3.875 | 10-01-31 | 75,000 | 73,969 | |
The Michaels Companies, Inc. (B) | 5.250 | 05-01-28 | 75,000 | 75,033 | |
The Michaels Companies, Inc. (B) | 7.875 | 05-01-29 | 50,000 | 49,250 | |
Textiles, apparel and luxury goods 0.0% | |||||
G-III Apparel Group, Ltd. (B) | 7.875 | 08-15-25 | 10,000 | 10,640 | |
Consumer staples 0.4% | 710,794 | ||||
Food and staples retailing 0.2% | |||||
Bellis Acquisition Company PLC (B) | 3.250 | 02-16-26 | GBP | 100,000 | 130,136 |
Performance Food Group, Inc. (B) | 4.250 | 08-01-29 | 65,000 | 64,484 | |
Performance Food Group, Inc. (B) | 5.500 | 10-15-27 | 45,000 | 46,969 | |
Food products 0.1% | |||||
B&G Foods, Inc. | 5.250 | 09-15-27 | 55,000 | 56,859 | |
Post Holdings, Inc. (B) | 5.625 | 01-15-28 | 70,000 | 74,182 | |
Post Holdings, Inc. (B) | 5.750 | 03-01-27 | 50,000 | 51,625 | |
Household products 0.1% | |||||
Diamond BC BV (B) | 4.625 | 10-01-29 | 15,000 | 14,880 | |
Energizer Gamma Acquisition BV (B) | 3.500 | 06-30-29 | EUR | 200,000 | 219,596 |
Personal products 0.0% | |||||
Prestige Brands, Inc. (B) | 5.125 | 01-15-28 | 50,000 | 52,063 | |
Energy 1.7% | 2,694,545 | ||||
Energy equipment and services 0.0% | |||||
Transocean, Inc. | 6.800 | 03-15-38 | 60,000 | 32,400 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 24 |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Oil, gas and consumable fuels 1.7% | |||||
Antero Midstream Partners LP (B) | 5.750 | 01-15-28 | 90,000 | $94,377 | |
Apache Corp. | 4.375 | 10-15-28 | 50,000 | 54,400 | |
Apache Corp. | 4.625 | 11-15-25 | 105,000 | 112,744 | |
Apache Corp. | 5.100 | 09-01-40 | 8,000 | 9,040 | |
Buckeye Partners LP (B) | 4.125 | 03-01-25 | 45,000 | 46,463 | |
Buckeye Partners LP | 4.125 | 12-01-27 | 15,000 | 15,459 | |
Buckeye Partners LP (B) | 4.500 | 03-01-28 | 40,000 | 40,300 | |
Cheniere Energy Partners LP | 4.500 | 10-01-29 | 71,000 | 75,260 | |
Continental Resources, Inc. | 4.375 | 01-15-28 | 10,000 | 10,811 | |
Continental Resources, Inc. | 4.900 | 06-01-44 | 25,000 | 27,706 | |
Continental Resources, Inc. (B) | 5.750 | 01-15-31 | 35,000 | 41,217 | |
DCP Midstream Operating LP | 5.375 | 07-15-25 | 45,000 | 49,163 | |
DT Midstream, Inc. (B) | 4.125 | 06-15-29 | 124,000 | 126,945 | |
EG Global Finance PLC | 6.250 | 10-30-25 | EUR | 100,000 | 116,696 |
EnLink Midstream LLC (B) | 5.625 | 01-15-28 | 91,000 | 94,640 | |
EQM Midstream Partners LP (B) | 4.500 | 01-15-29 | 40,000 | 41,600 | |
EQM Midstream Partners LP (B) | 4.750 | 01-15-31 | 30,000 | 31,725 | |
EQM Midstream Partners LP (B) | 6.000 | 07-01-25 | 15,000 | 16,313 | |
EQM Midstream Partners LP (B) | 6.500 | 07-01-27 | 15,000 | 16,800 | |
EQM Midstream Partners LP | 6.500 | 07-15-48 | 50,000 | 60,750 | |
EQT Corp. (B) | 3.125 | 05-15-26 | 45,000 | 46,194 | |
Occidental Petroleum Corp. | 3.000 | 02-15-27 | 140,000 | 142,100 | |
Occidental Petroleum Corp. | 3.200 | 08-15-26 | 25,000 | 25,763 | |
Occidental Petroleum Corp. | 3.400 | 04-15-26 | 60,000 | 61,541 | |
Occidental Petroleum Corp. | 4.200 | 03-15-48 | 121,000 | 121,000 | |
Occidental Petroleum Corp. | 4.400 | 04-15-46 | 29,000 | 29,725 | |
Occidental Petroleum Corp. | 5.500 | 12-01-25 | 20,000 | 22,187 | |
Occidental Petroleum Corp. | 6.125 | 01-01-31 | 20,000 | 24,300 | |
Occidental Petroleum Corp. | 6.375 | 09-01-28 | 5,000 | 5,937 | |
Ovintiv Exploration, Inc. | 5.375 | 01-01-26 | 25,000 | 27,713 | |
Ovintiv Exploration, Inc. | 5.625 | 07-01-24 | 80,000 | 88,062 | |
Petrobras Global Finance BV | 5.093 | 01-15-30 | 45,000 | 46,803 | |
Petrobras Global Finance BV | 5.600 | 01-03-31 | 50,000 | 52,950 | |
Petrobras Global Finance BV | 5.750 | 02-01-29 | 105,000 | 113,006 | |
Petrobras Global Finance BV | 6.900 | 03-19-49 | 50,000 | 53,250 | |
Petroleos Mexicanos | 6.750 | 09-21-47 | 125,000 | 110,938 | |
Petroleos Mexicanos | 6.840 | 01-23-30 | 175,000 | 181,050 | |
Southwestern Energy Company | 4.750 | 02-01-32 | 15,000 | 15,797 | |
Venture Global Calcasieu Pass LLC (B) | 3.875 | 08-15-29 | 65,000 | 67,438 | |
Venture Global Calcasieu Pass LLC (B) | 4.125 | 08-15-31 | 45,000 | 47,700 | |
Western Midstream Operating LP | 5.300 | 02-01-30 | 150,000 | 164,856 | |
Western Midstream Operating LP | 6.500 | 02-01-50 | 50,000 | 59,125 | |
YPF SA | 7.000 | 12-15-47 | 120,000 | 72,301 |
25 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials 1.3% | $2,142,221 | ||||
Banks 0.2% | |||||
Banco de Credito Social Cooperativo SA (5.250% to 5-27-26, then 5 Year Euro Swap Rate + 5.419%) | 5.250 | 11-27-31 | EUR | 100,000 | 118,119 |
Banco do Brasil SA | 4.625 | 01-15-25 | 200,000 | 208,502 | |
Capital markets 0.1% | |||||
Credit Suisse Group AG (5.250% to 2-11-27, then 5 Year CMT + 4.889%) (B)(E) | 5.250 | 02-11-27 | 200,000 | 206,500 | |
Consumer finance 0.3% | |||||
Credit Acceptance Corp. (B) | 5.125 | 12-31-24 | 75,000 | 76,875 | |
Credit Acceptance Corp. | 6.625 | 03-15-26 | 70,000 | 72,859 | |
FirstCash, Inc. (B) | 5.625 | 01-01-30 | 70,000 | 71,343 | |
goeasy, Ltd. (B) | 5.375 | 12-01-24 | 95,000 | 97,613 | |
OneMain Finance Corp. | 4.000 | 09-15-30 | 60,000 | 59,003 | |
OneMain Finance Corp. | 5.375 | 11-15-29 | 85,000 | 92,420 | |
OneMain Finance Corp. | 6.125 | 03-15-24 | 5,000 | 5,301 | |
OneMain Finance Corp. | 6.875 | 03-15-25 | 60,000 | 66,750 | |
Insurance 0.1% | |||||
Acrisure LLC (B) | 10.125 | 08-01-26 | 75,000 | 82,594 | |
AssuredPartners, Inc. (B) | 5.625 | 01-15-29 | 45,000 | 43,763 | |
Genworth Holdings, Inc. | 4.800 | 02-15-24 | 5,000 | 5,200 | |
Genworth Holdings, Inc. | 6.500 | 06-15-34 | 50,000 | 51,854 | |
Thrifts and mortgage finance 0.6% | |||||
Enact Holdings, Inc. (B) | 6.500 | 08-15-25 | 125,000 | 136,563 | |
Home Point Capital, Inc. (B) | 5.000 | 02-01-26 | 125,000 | 115,938 | |
LD Holdings Group LLC (B) | 6.125 | 04-01-28 | 35,000 | 32,988 | |
LD Holdings Group LLC (B) | 6.500 | 11-01-25 | 120,000 | 118,398 | |
MGIC Investment Corp. | 5.250 | 08-15-28 | 115,000 | 120,750 | |
Nationstar Mortgage Holdings, Inc. (B) | 5.125 | 12-15-30 | 70,000 | 69,125 | |
PennyMac Financial Services, Inc. (B) | 4.250 | 02-15-29 | 125,000 | 120,175 | |
PennyMac Financial Services, Inc. (B) | 5.375 | 10-15-25 | 60,000 | 61,650 | |
United Wholesale Mortgage LLC (B) | 5.500 | 04-15-29 | 110,000 | 107,938 | |
Health care 1.3% | 2,006,567 | ||||
Biotechnology 0.1% | |||||
Grifols Escrow Issuer SA (B) | 3.875 | 10-15-28 | EUR | 100,000 | 114,234 |
Health care equipment and supplies 0.2% | |||||
Hill-Rom Holdings, Inc. (B) | 4.375 | 09-15-27 | 80,000 | 83,600 | |
Mozart Debt Merger Sub, Inc. (B) | 3.875 | 04-01-29 | 180,000 | 179,365 | |
Mozart Debt Merger Sub, Inc. (B) | 5.250 | 10-01-29 | 85,000 | 86,159 | |
Health care providers and services 0.5% | |||||
Chrome Bidco SASU (B) | 3.500 | 05-31-28 | EUR | 100,000 | 114,667 |
Community Health Systems, Inc. (B) | 4.750 | 02-15-31 | 155,000 | 156,356 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 26 |
Rate (%) | Maturity date | Par value^ | Value | ||
Health care (continued) | |||||
Health care providers and services (continued) | |||||
Community Health Systems, Inc. (B) | 5.625 | 03-15-27 | 20,000 | $21,167 | |
Community Health Systems, Inc. (B) | 6.625 | 02-15-25 | 95,000 | 98,325 | |
HCA, Inc. | 5.375 | 02-01-25 | 200,000 | 219,800 | |
HCA, Inc. | 5.375 | 09-01-26 | 60,000 | 67,425 | |
HCA, Inc. | 5.625 | 09-01-28 | 10,000 | 11,685 | |
HCA, Inc. | 5.875 | 02-01-29 | 5,000 | 5,958 | |
HCA, Inc. | 7.500 | 11-15-95 | 35,000 | 51,013 | |
Health care technology 0.1% | |||||
CAB SELAS (B) | 3.375 | 02-01-28 | EUR | 100,000 | 113,635 |
Life sciences tools and services 0.1% | |||||
Avantor Funding, Inc. (B) | 3.875 | 07-15-28 | EUR | 100,000 | 118,406 |
Pharmaceuticals 0.3% | |||||
Bausch Health Companies, Inc. (B) | 5.000 | 01-30-28 | 135,000 | 124,200 | |
Bausch Health Companies, Inc. (B) | 5.000 | 02-15-29 | 225,000 | 198,563 | |
Bausch Health Companies, Inc. (B) | 6.125 | 04-15-25 | 78,000 | 79,448 | |
Catalent Pharma Solutions, Inc. (B) | 3.125 | 02-15-29 | 30,000 | 29,592 | |
Catalent Pharma Solutions, Inc. (B) | 3.500 | 04-01-30 | 20,000 | 19,943 | |
Teva Pharmaceutical Finance Netherlands II BV | 3.750 | 05-09-27 | EUR | 100,000 | 113,026 |
Industrials 1.6% | 2,489,183 | ||||
Aerospace and defense 0.1% | |||||
TransDigm, Inc. | 5.500 | 11-15-27 | 55,000 | 56,650 | |
TransDigm, Inc. (B) | 6.250 | 03-15-26 | 150,000 | 155,906 | |
Air freight and logistics 0.0% | |||||
First Student Bidco, Inc. (B) | 4.000 | 07-31-29 | 55,000 | 53,460 | |
Building products 0.3% | |||||
Advanced Drainage Systems, Inc. (B) | 5.000 | 09-30-27 | 25,000 | 25,844 | |
Builders FirstSource, Inc. (B) | 5.000 | 03-01-30 | 45,000 | 48,280 | |
LBM Acquisition LLC (B) | 6.250 | 01-15-29 | 185,000 | 182,919 | |
Signal Parent, Inc. (B) | 6.125 | 04-01-29 | 109,000 | 96,738 | |
Victors Merger Corp. (B) | 6.375 | 05-15-29 | 85,000 | 79,900 | |
Commercial services and supplies 0.3% | |||||
American Builders & Contractors Supply Company, Inc. (B) | 4.000 | 01-15-28 | 85,000 | 86,975 | |
APX Group, Inc. (B) | 6.750 | 02-15-27 | 50,000 | 52,500 | |
Arena Luxembourg Finance Sarl (B) | 1.875 | 02-01-28 | EUR | 100,000 | 107,242 |
Clean Harbors, Inc. (B) | 4.875 | 07-15-27 | 49,000 | 50,470 | |
Scientific Games International, Inc. | 5.500 | 02-15-26 | EUR | 100,000 | 116,125 |
Electrical equipment 0.1% | |||||
Sensata Technologies BV (B) | 5.000 | 10-01-25 | 100,000 | 108,500 | |
Sensata Technologies BV (B) | 5.625 | 11-01-24 | 10,000 | 10,993 |
27 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Electrical equipment (continued) | |||||
Techem Verwaltungsgesellschaft 675 mbH (B) | 2.000 | 07-15-25 | EUR | 100,000 | $112,549 |
Machinery 0.2% | |||||
Meritor, Inc. (B) | 4.500 | 12-15-28 | 95,000 | 95,238 | |
TK Elevator Midco GmbH (B) | 4.375 | 07-15-27 | EUR | 100,000 | 117,530 |
Verisure Holding AB (B) | 3.250 | 02-15-27 | EUR | 100,000 | 113,370 |
Professional services 0.3% | |||||
La Financiere Atalian SASU | 4.000 | 05-15-24 | EUR | 100,000 | 111,801 |
La Financiere Atalian SASU (B) | 4.000 | 05-15-24 | EUR | 100,000 | 111,801 |
Nielsen Finance LLC (B) | 4.500 | 07-15-29 | 163,000 | 160,350 | |
The Dun & Bradstreet Corp. (B) | 5.000 | 12-15-29 | 25,000 | 25,576 | |
Trading companies and distributors 0.2% | |||||
Herc Holdings, Inc. (B) | 5.500 | 07-15-27 | 140,000 | 145,600 | |
Loxam SAS | 3.250 | 01-14-25 | EUR | 100,000 | 114,089 |
Transportation infrastructure 0.1% | |||||
Imola Merger Corp. (B) | 4.750 | 05-15-29 | 145,000 | 148,777 | |
Information technology 0.6% | 1,007,823 | ||||
Electronic equipment, instruments and components 0.0% | |||||
II-VI, Inc. (B) | 5.000 | 12-15-29 | 30,000 | 30,637 | |
IT services 0.3% | |||||
Black Knight InfoServ LLC (B) | 3.625 | 09-01-28 | 70,000 | 69,908 | |
CDW LLC | 2.670 | 12-01-26 | 95,000 | 97,337 | |
Go Daddy Operating Company LLC (B) | 3.500 | 03-01-29 | 100,000 | 99,235 | |
Presidio Holdings, Inc. (B) | 4.875 | 02-01-27 | 125,000 | 128,750 | |
Presidio Holdings, Inc. (B) | 8.250 | 02-01-28 | 60,000 | 63,900 | |
Software 0.2% | |||||
CDK Global, Inc. (B) | 5.250 | 05-15-29 | 60,000 | 63,600 | |
Open Text Corp. (B) | 3.875 | 02-15-28 | 85,000 | 86,636 | |
Open Text Corp. (B) | 3.875 | 12-01-29 | 20,000 | 20,250 | |
Open Text Holdings, Inc. (B) | 4.125 | 12-01-31 | 30,000 | 30,300 | |
SS&C Technologies, Inc. (B) | 5.500 | 09-30-27 | 150,000 | 156,750 | |
Technology hardware, storage and peripherals 0.1% | |||||
Xerox Corp. | 4.375 | 03-15-23 | 140,000 | 144,620 | |
Xerox Holdings Corp. (B) | 5.000 | 08-15-25 | 15,000 | 15,900 | |
Materials 1.1% | 1,760,874 | ||||
Construction materials 0.0% | |||||
Standard Industries, Inc. (B) | 4.375 | 07-15-30 | 50,000 | 51,025 | |
Containers and packaging 0.7% | |||||
ARD Finance SA (5.000% Cash or 5.750% PIK) (B) | 5.000 | 06-30-27 | EUR | 195,000 | 227,669 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 28 |
Rate (%) | Maturity date | Par value^ | Value | ||
Materials (continued) | |||||
Containers and packaging (continued) | |||||
Ardagh Packaging Finance PLC (B) | 2.125 | 08-15-26 | EUR | 105,000 | $116,864 |
Crown European Holdings SA | 2.875 | 02-01-26 | EUR | 125,000 | 150,285 |
Mauser Packaging Solutions Holding Company (B) | 7.250 | 04-15-25 | 50,000 | 50,127 | |
Owens-Brockway Glass Container, Inc. (B) | 5.875 | 08-15-23 | 165,000 | 172,838 | |
Silgan Holdings, Inc. | 2.250 | 06-01-28 | EUR | 100,000 | 112,763 |
Titan Holdings II BV (B) | 5.125 | 07-15-29 | EUR | 100,000 | 112,953 |
Trivium Packaging Finance BV | 3.750 | 08-15-26 | EUR | 100,000 | 115,273 |
Metals and mining 0.3% | |||||
ABJA Investment Company Pte, Ltd. | 5.450 | 01-24-28 | 200,000 | 218,511 | |
Constellium SE | 4.250 | 02-15-26 | EUR | 125,000 | 143,408 |
Novelis Corp. (B) | 3.250 | 11-15-26 | 30,000 | 30,263 | |
Novelis Corp. (B) | 3.875 | 08-15-31 | 35,000 | 34,781 | |
Novelis Corp. (B) | 4.750 | 01-30-30 | 75,000 | 78,844 | |
Paper and forest products 0.1% | |||||
Flex Acquisition Company, Inc. (B) | 6.875 | 01-15-25 | 145,000 | 145,270 | |
Real estate 0.2% | 314,063 | ||||
Equity real estate investment trusts 0.1% | |||||
VICI Properties LP (B) | 3.500 | 02-15-25 | 10,000 | 10,150 | |
VICI Properties LP (B) | 3.750 | 02-15-27 | 5,000 | 5,164 | |
VICI Properties LP (B) | 4.250 | 12-01-26 | 60,000 | 62,488 | |
VICI Properties LP (B) | 4.625 | 12-01-29 | 50,000 | 53,211 | |
Real estate management and development 0.1% | |||||
CIFI Holdings Group Company, Ltd. | 4.375 | 04-12-27 | 200,000 | 183,050 | |
Utilities 0.1% | 211,851 | ||||
Gas utilities 0.1% | |||||
AmeriGas Partners LP | 5.500 | 05-20-25 | 102,000 | 109,268 | |
AmeriGas Partners LP | 5.625 | 05-20-24 | 20,000 | 21,623 | |
AmeriGas Partners LP | 5.875 | 08-20-26 | 10,000 | 11,185 | |
Independent power and renewable electricity producers 0.0% | |||||
Clearway Energy Operating LLC (B) | 3.750 | 02-15-31 | 60,000 | 59,850 | |
Clearway Energy Operating LLC (B) | 3.750 | 01-15-32 | 10,000 | 9,925 | |
Convertible bonds 0.3% | $460,058 | ||||
(Cost $422,859) | |||||
Consumer discretionary 0.1% | 165,226 | ||||
Automobiles 0.0% | |||||
Ford Motor Company, Zero Coupon (B) | 0.000 | 03-15-26 | 55,000 | 75,659 | |
Hotels, restaurants and leisure 0.1% | |||||
DraftKings, Inc. (B)(F) | 4.610 | 03-15-28 | 64,000 | 48,192 |
29 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Hotels, restaurants and leisure (continued) | |||||
Shake Shack, Inc. (B)(F) | 3.073 | 03-01-28 | 50,000 | $41,375 | |
Energy 0.0% | 44,547 | ||||
Oil, gas and consumable fuels 0.0% | |||||
Pioneer Natural Resources Company | 0.250 | 05-15-25 | 25,000 | 44,547 | |
Health care 0.1% | 62,319 | ||||
Health care equipment and supplies 0.1% | |||||
NuVasive, Inc. | 0.375 | 03-15-25 | 65,000 | 62,319 | |
Industrials 0.1% | 132,909 | ||||
Airlines 0.0% | |||||
JetBlue Airways Corp. (B) | 0.500 | 04-01-26 | 62,000 | 57,797 | |
Machinery 0.1% | |||||
The Middleby Corp. | 1.000 | 09-01-25 | 47,000 | 75,112 | |
Real estate 0.0% | 55,057 | ||||
Equity real estate investment trusts 0.0% | |||||
Pebblebrook Hotel Trust | 1.750 | 12-15-26 | 50,000 | 55,057 | |
Term loans (G) 0.4% | $570,042 | ||||
(Cost $588,846) | |||||
Consumer staples 0.1% | 111,343 | ||||
Food products 0.1% | |||||
Froneri Lux FinCo SARL, 2020 EUR Term Loan B1 (6 month EURIBOR + 2.375%) | 2.375 | 01-29-27 | EUR | 100,000 | 111,343 |
Financials 0.1% | 258,892 | ||||
Diversified financial services 0.1% | |||||
Crown Finance US, Inc., 2018 USD Term Loan (6 month LIBOR + 2.500%) | 3.500 | 02-28-25 | 200,145 | 154,388 | |
Crown Finance US, Inc., 2021 Incremental Term Loan B1 (6 month LIBOR + 8.250%) | 9.250 | 05-23-24 | 8,658 | 9,188 | |
Insurance 0.0% | |||||
HUB International, Ltd., 2018 Term Loan B (3 month LIBOR + 2.750%) | 2.875 | 04-25-25 | 96,500 | 95,316 | |
Industrials 0.1% | 100,036 | ||||
Commercial services and supplies 0.1% | |||||
PECF USS Intermediate Holding III Corp., Term Loan B (H) | TBD | 12-15-28 | 100,000 | 100,036 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 30 |
Rate (%) | Maturity date | Par value^ | Value | ||
Information technology 0.1% | $99,771 | ||||
Software 0.1% | |||||
Ascend Learning LLC, 2021 Term Loan (H) | TBD | 12-11-28 | 100,000 | 99,771 | |
Par value^ | Value | ||||
Escrow certificates 0.0% | $0 | ||||
(Cost $194) | |||||
Texas Competitive Electric Holdings Company LLC (A)(D) | 500,000 | 0 | |||
Short-term investments 0.8% | $1,300,000 | ||||
(Cost $1,300,000) | |||||
Repurchase agreement 0.8% | 1,300,000 | ||||
Goldman Sachs Tri-Party Repurchase Agreement dated 12-31-21 at 0.050% to be repurchased at $1,300,005 on 1-3-22, collateralized by $592,663 Federal Home Loan Mortgage Corp., 2.500% - 4.500% due 2-1-26 to 12-1-51 (valued at $611,801) and $682,392 Government National Mortgage Association, 3.000% - 5.500% due 10-15-27 to 2-20-43 (valued at $714,199) | 1,300,000 | 1,300,000 |
Total investments (Cost $148,491,784) 98.3% | $156,646,285 | ||||
Other assets and liabilities, net 1.7% | 2,702,981 | ||||
Total net assets 100.0% | $159,349,266 |
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 |
CMT | Constant Maturity Treasury |
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) | Non-income producing security. |
(B) | 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. |
31 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
(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. |
(E) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(F) | Zero coupon bonds are issued at a discount from their principal amount in lieu of paying interest periodically. Rate shown is the effective yield at period end. |
(G) | Term loans are variable rate obligations. The coupon rate shown represents the rate at period end. |
(H) | This position represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate, which is disclosed as TBD (To Be Determined). |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 32 |
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) |
Euro STOXX 50 Index Futures | 184 | Short | Mar 2022 | $(8,766,525) | $(8,981,623) | $(215,098) |
FTSE 100 Index Futures | 19 | Short | Mar 2022 | (1,853,681) | (1,883,546) | (29,865) |
MSCI EAFE Index Futures | 86 | Short | Mar 2022 | (9,828,395) | (9,983,735) | (155,340) |
S&P/TSX 60 Index Futures | 17 | Short | Mar 2022 | (3,386,361) | (3,442,871) | (56,510) |
$(456,813) |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
CAD | 155,000 | USD | 121,058 | BNP | 1/11/2022 | $1,476 | — |
CAD | 20,000 | USD | 15,599 | DB | 1/11/2022 | 212 | — |
EUR | 136,000 | USD | 153,384 | BNP | 1/11/2022 | 1,473 | — |
EUR | 101,000 | USD | 113,815 | CITI | 1/11/2022 | 1,189 | — |
EUR | 54,000 | USD | 61,443 | MSI | 1/31/2022 | 69 | — |
GBP | 102,000 | USD | 136,136 | BNP | 1/11/2022 | 1,925 | — |
GBP | 14,000 | USD | 18,537 | DB | 1/11/2022 | 412 | — |
USD | 1,580,358 | CAD | 2,005,000 | GSI | 3/16/2022 | — | $(4,452) |
USD | 475,368 | EUR | 423,000 | BNP | 1/11/2022 | — | (6,282) |
USD | 112,988 | EUR | 100,000 | DB | 1/11/2022 | — | (877) |
USD | 85,916 | EUR | 76,000 | SCB | 1/11/2022 | — | (622) |
USD | 7,650,470 | EUR | 6,746,000 | DB | 3/16/2022 | — | (41,130) |
USD | 18,526 | GBP | 14,000 | BNP | 1/11/2022 | — | (424) |
USD | 2,877,645 | GBP | 2,177,000 | BNP | 3/16/2022 | — | (68,140) |
USD | 1,439,877 | JPY | 163,800,000 | MSI | 3/16/2022 | 15,088 | — |
$21,844 | $(121,927) |
Derivatives Currency Abbreviations | |
CAD | Canadian Dollar |
EUR | Euro |
GBP | Pound Sterling |
JPY | Japanese Yen |
USD | U.S. Dollar |
Derivatives Abbreviations | |
BNP | BNP Paribas |
CITI | Citibank, N.A. |
DB | Deutsche Bank AG |
GSI | Goldman Sachs International |
MSI | Morgan Stanley & Co. International PLC |
OTC | Over-the-counter |
33 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
SCB | Standard Chartered Bank |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 34 |
Assets | |
Unaffiliated investments, at value (Cost $148,491,784) | $156,646,285 |
Unrealized appreciation on forward foreign currency contracts | 21,844 |
Receivable for futures variation margin | 19,395 |
Cash | 83,259 |
Foreign currency, at value (Cost $254,032) | 256,015 |
Collateral held at broker for futures contracts | 1,503,766 |
Collateral segregated at custodian for OTC derivative contracts | 70,000 |
Dividends and interest receivable | 1,010,509 |
Receivable for investments sold | 159,226 |
Other assets | 6,234 |
Total assets | 159,776,533 |
Liabilities | |
Unrealized depreciation on forward foreign currency contracts | 121,927 |
Payable for investments purchased | 199,250 |
Payable to affiliates | |
Accounting and legal services fees | 6,037 |
Trustees’ fees | 4 |
Other liabilities and accrued expenses | 100,049 |
Total liabilities | 427,267 |
Net assets | $159,349,266 |
Net assets consist of | |
Paid-in capital | $172,687,940 |
Total distributable earnings (loss) | (13,338,674) |
Net assets | $159,349,266 |
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 | $13.04 |
35 | JOHN HANCOCK Hedged Equity & Income Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $7,776,988 |
Interest | 1,138,782 |
Less foreign taxes withheld | (615,135) |
Total investment income | 8,300,635 |
Expenses | |
Investment management fees | 1,536,285 |
Accounting and legal services fees | 23,117 |
Transfer agent fees | 17,657 |
Trustees’ fees | 42,525 |
Custodian fees | 75,958 |
Printing and postage | 72,114 |
Professional fees | 74,431 |
Stock exchange listing fees | 23,749 |
Other | 18,437 |
Total expenses | 1,884,273 |
Less expense reductions | (14,528) |
Net expenses | 1,869,745 |
Net investment income | 6,430,890 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 11,979,806 |
Futures contracts | (4,448,569) |
Forward foreign currency contracts | 802,974 |
Written options | (432,230) |
7,901,981 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 3,168,312 |
Futures contracts | 29,727 |
Forward foreign currency contracts | 5,305 |
3,203,344 | |
Net realized and unrealized gain | 11,105,325 |
Increase in net assets from operations | $17,536,215 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 36 |
Year ended 12-31-21 | Year ended 12-31-20 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $6,430,890 | $4,820,054 |
Net realized gain (loss) | 7,901,981 | (22,285,878) |
Change in net unrealized appreciation (depreciation) | 3,203,344 | 8,219,727 |
Increase (decrease) in net assets resulting from operations | 17,536,215 | (9,246,097) |
Distributions to shareholders | ||
From earnings | (7,598,557) | (5,112,494) |
From tax return of capital | (6,581,066) | (11,169,625) |
Total distributions | (14,179,623) | (16,282,119) |
Total increase (decrease) | 3,356,592 | (25,528,216) |
Net assets | ||
Beginning of year | 155,992,674 | 181,520,890 |
End of year | $159,349,266 | $155,992,674 |
Share activity | ||
Shares outstanding | ||
Beginning of year | 12,223,813 | 12,223,813 |
End of year | 12,223,813 | 12,223,813 |
37 | JOHN HANCOCK Hedged Equity & Income Fund | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Period ended | 12-31-21 | 12-31-20 | 12-31-19 | 12-31-18 | 12-31-17 |
Per share operating performance | |||||
Net asset value, beginning of period | $12.76 | $14.85 | $14.46 | $17.64 | $16.84 |
Net investment income1 | 0.53 | 0.39 | 0.59 | 0.63 | 0.52 |
Net realized and unrealized gain (loss) on investments | 0.91 | (1.15) | 1.30 | (2.31) | 1.94 |
Total from investment operations | 1.44 | (0.76) | 1.89 | (1.68) | 2.46 |
Less distributions | |||||
From net investment income | (0.62) | (0.42) | (0.67) | (0.86) | (0.49) |
From net realized gain | — | — | — | (0.39) | (1.17) |
From tax return of capital | (0.54) | (0.91) | (0.83) | (0.25) | — |
Total distributions | (1.16) | (1.33) | (1.50) | (1.50) | (1.66) |
Net asset value, end of period | $13.04 | $12.76 | $14.85 | $14.46 | $17.64 |
Per share market value, end of period | $13.00 | $11.44 | $14.91 | $13.08 | $17.41 |
Total return at net asset value (%)2,3 | 11.69 | (2.99) | 13.89 | (9.61) | 15.15 |
Total return at market value (%)2 | 24.20 | (13.37) | 26.41 | (17.16) | 21.74 |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $159 | $156 | $182 | $177 | $215 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.17 | 1.18 | 1.15 | 1.14 | 1.13 |
Expenses including reductions | 1.16 | 1.18 | 1.14 | 1.13 | 1.13 |
Net investment income | 3.98 | 3.14 | 3.97 | 3.83 | 2.99 |
Portfolio turnover (%) | 120 | 117 | 125 | 96 | 93 |
1 | Based on average daily shares outstanding. |
2 | 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. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 38 |
39 | JOHN HANCOCK Hedged Equity & Income Fund | ANNUAL REPORT |
Total value at 12-31-21 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Communication services | $10,976,439 | $4,981,051 | $5,995,388 | — |
Consumer discretionary | 10,605,918 | 2,845,116 | 7,760,802 | — |
Consumer staples | 8,721,553 | 6,494,136 | 2,227,417 | — |
Energy | 12,257,291 | 6,998,439 | 5,258,852 | — |
Financials | 28,616,066 | 12,413,178 | 16,202,888 | — |
Health care | 17,906,449 | 13,159,204 | 4,747,245 | — |
Industrials | 10,904,487 | 4,070,138 | 6,834,349 | — |
Information technology | 15,249,113 | 8,986,488 | 6,262,625 | — |
Materials | 6,154,392 | 1,210,358 | 4,944,034 | — |
Real estate | 4,177,375 | 2,933,747 | 1,243,628 | — |
Utilities | 7,263,789 | 4,959,820 | 2,303,969 | — |
Preferred securities | 536,725 | — | 536,725 | — |
Exchange-traded funds | 192,422 | 192,422 | — | — |
Closed-end funds | 49,445 | 49,445 | — | — |
Foreign government obligations | 50,439 | — | 50,439 | — |
Corporate bonds | 20,654,282 | — | 20,654,282 | — |
Convertible bonds | 460,058 | — | 460,058 | — |
Term loans | 570,042 | — | 570,042 | — |
Short-term investments | 1,300,000 | — | 1,300,000 | — |
Total investments in securities | $156,646,285 | $69,293,542 | $87,352,743 | — |
ANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 40 |
Total value at 12-31-21 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Derivatives: | ||||
Assets | ||||
Forward foreign currency contracts | $21,844 | — | $21,844 | — |
Liabilities | ||||
Futures | (456,813) | $(456,813) | — | — |
Forward foreign currency contracts | (121,927) | — | (121,927) | — |
Level 3 includes securities valued at $0. Refer to Fund’s investments. |
41 | JOHN HANCOCK Hedged Equity & Income Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 42 |
December 31, 2021 | December 31, 2020 | |
Ordinary income | $7,598,557 | $5,112,494 |
Return of capital | 6,581,066 | 11,169,625 |
Total | $14,179,623 | $16,282,119 |
43 | JOHN HANCOCK Hedged Equity & Income Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 44 |
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
Equity | Receivable/payable for futures variation margin1 | Futures | — | $(456,813) |
Currency | Unrealized appreciation (depreciation) on forward foreign currency contracts | Forward foreign currency contracts | $21,844 | (121,927) |
$21,844 | $(578,740) |
1 | Reflects cumulative appreciation/depreciation on open futures as disclosed in the Derivatives section of Fund’s investments. Only the year end variation margin receivable/payable is separately reported on the Statement of assets and liabilities. |
Statement of operations location - Net realized gain (loss) on: | ||||
Risk | Futures contracts | Forward foreign currency contracts | Written options | Total |
Currency | — | $802,974 | — | $802,974 |
Equity | $(4,448,569) | — | $(432,230) | (4,880,799) |
Total | $(4,448,569) | $802,974 | $(432,230) | $(4,077,825) |
45 | JOHN HANCOCK Hedged Equity & Income Fund | ANNUAL REPORT |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | |||
Risk | Futures contracts | Forward foreign currency contracts | Total |
Currency | — | $5,305 | $5,305 |
Equity | $29,727 | — | 29,727 |
Total | $29,727 | $5,305 | $35,032 |
ANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 46 |
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 (LLC Interest) | 8-1-11 | $240,553 | 236,300 | — | — | 236,300 | 0.0% | $0 |
47 | JOHN HANCOCK Hedged Equity & Income Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Hedged Equity & Income Fund | 48 |
49 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 50 |
51 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 52 |
53 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 54 |
Payment Date | Income Distributions |
March 31, 2021 | $0.2900 |
June 30, 2021 | 0.2900 |
September 30, 2021 | 0.2900 |
December 31, 2021 | 0.2900 |
Total | $1.1600 |
55 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
Computershare
P.O. Box 505000
Louisville, KY 40233
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462 South 4th Street, Suite 1600
Louisville, KY 40202
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 56 |
Independent Trustees | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, Born: 1945 | 2012 | 191 |
Trustee and Chairperson of the Board | ||
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. | ||
James R. Boyle, Born: 1959 | 2015 | 191 |
Trustee | ||
Foresters Financial, Chief Executive Officer (since 2018) and board member (since 2017). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||
Peter S. Burgess,2 Born: 1942 | 2012 | 191 |
Trustee | ||
Consultant (financial, accounting, and auditing matters) (since 1999); Certified Public Accountant; Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director, Lincoln Educational Services Corporation (2004-2021); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005). | ||
William H. Cunningham,2 Born: 1944 | 2011 | 191 |
Trustee | ||
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||
Grace K. Fey, Born: 1946 | 2012 | 191 |
Trustee | ||
Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
Deborah C. Jackson, Born: 1952 | 2011 | 191 |
Trustee | ||
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Board of Directors, Association of Independent Colleges and Universities of Massachusetts (2014-2017); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of American Student Assistance Corporation (1996–2009); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
57 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Steven R. Pruchansky, Born: 1944 | 2011 | 191 |
Trustee and Vice Chairperson of the Board | ||
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. | ||
Frances G. Rathke,2 Born: 1960 | 2020 | 191 |
Trustee | ||
Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
Gregory A. Russo, Born: 1949 | 2011 | 191 |
Trustee | ||
Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018) and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002); Chairman and Treasurer, Westchester County, New York, Chamber of Commerce (1986–1992); Director, Treasurer, and Chairman of Audit and Finance Committees, Putnam Hospital Center (1989–1995); Director and Chairman of Fundraising Campaign, United Way of Westchester and Putnam Counties, New York (1990–1995). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
Non-Independent Trustees3 | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 191 |
President and Non-Independent Trustee | ||
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 58 |
Non-Independent Trustees3 (continued) | ||
Name, year of birth Position(s) held with fund Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Marianne Harrison, Born: 1963 | 2018 | 191 |
Non-Independent Trustee | ||
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston Medical Center (since 2021); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary’s General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013- 2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012–2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018). |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with fund Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Charles A. Rizzo, Born: 1957 | 2011 |
Chief Financial Officer | |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). | |
Salvatore Schiavone, Born: 1965 | 2011 |
Treasurer | |
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). | |
Christopher (Kit) Sechler, Born: 1973 | 2018 |
Secretary and Chief Legal Officer | |
Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). | |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
59 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
1 | Mr. Arnott, Ms. Jackson and Mr. Pruchansky serve as Trustees for a term expiring in 2022; Mr. Boyle, Dr. Cunningham, Ms. Fey, Dr. McClellan and Mr. Russo serve as Trustees for a term expiring in 2023; Mr. Burgess, Ms. Harrison and Ms. Rathke serve as Trustees for a term expiring in 2024; Mr. Boyle has served as Trustee at various times prior to date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain of its affiliates. |
ANNUAL REPORT | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | 60 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Gregg R. Thomas, CFA
You can also contact us: | ||
800-852-0218 | Regular mail: | Express mail: |
jhinvestments.com | Computershare P.O.Box 505000 Louisville, KY 40233 | Computershare 462 South 4th Street, Suite 1600 Louisville, KY 40202 |
61 | JOHN HANCOCK HEDGED EQUITY & INCOME FUND | ANNUAL REPORT |
GOVERNANCE FUNDS
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.
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.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
MF1976907 | P15A 12/21 |
ITEM 2. CODE OF ETHICS.
As of the end of the period, December 31, 2021, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Peter S. Burgess is the audit committee financial expert and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant(s) for John Hancock Hedged Equity & Income Fund for the audit of the registrant's annual financial statements or services that are normally provided by the accountant(s) in connection with statutory and regulatory filings or engagements amounted to $49,154 for the year ended December 31, 2021 and $47,996 for the year ended December 31, 2020. These fees were billed to the registrant and were approved by the registrant's audit committee.
(b) Audit-Related Services
The aggregate fees for John Hancock Hedged Equity & Income Fund for audit-related
fees amounted to $212 for the fiscal year ended December 31, 2021 and $5 for the fiscal year ended December 31, 2020. These fees were billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant ("control affiliates"). The nature of the services provided was related to software licensing fee and internal controls reviews.
(c) Tax Fees
The aggregate fees billed for John Hancock Hedged Equity & Income Fund for professional services rendered by the principal accountant(s) for the tax compliance, tax advice and tax planning ("tax fees") amounted to $3,992 for the fiscal year ended December 31, 2021 and $3,914 for the fiscal year ended December 31, 2020. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
(d) All Other Fees
The all other fees for John Hancock Hedged Equity & Income Fund billed to the registrant or control affiliates for products and services provided by the principal accountant were $289 for the year ended December 31, 2021 and $89 and for the year ended December 31, 2020. The nature of the services comprising all other fees is advisory services provided to the investment manager. These fees were approved by the registrant's audit committee.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X: Audit-Related Fees, Tax Fees and All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f)According to the registrant's principal accountant, for the fiscal period ended December 31, 2021, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g)The aggregate non-audit fees billed by the registrant's accountant(s) for services rendered to the registrant and rendered to the registrant's control affiliates of the registrant were $1,166,225 for the year ended December 31, 2021 and $1,433,666 for the year ended December 31, 2020.
(h)The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant(s) to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant(s)' independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Peter S. Burgess - Chairman William H. Cunningham Frances G. Rathke
ITEM 6. SCHEDULE OF INVESTMENTS. (a)Not applicable.
(b)Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES.
See attached exhibit "Proxy Voting Policies and Procedures".
ITEM 8.
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Information about the Wellington Management Company LLP ("Wellington Management") portfolio managers
Management Biographies
Below is a list of the portfolio managers who share joint responsibility for the day-to-day investment management of the Fund. It provides a brief summary of their business careers over the past five years. The information provided is as of the filing date of this N-CSR.
Gregg R. Thomas, CFA
Senior Managing Director and Director of Investment Strategy,
Wellington Management Company LLP since 2002
On Fund team since its inception (2011)
Roberto J. Isch, CFA
Managing Director and Research Manager,
Wellington Management Company LLP since 2012
Joined Fund team in 2019
Other Accounts the Portfolio Managers are Managing
The table below indicates for each portfolio manager information about the accounts over which the portfolio manager has day-to-day investment responsibility. All information on the number of accounts and total assets in the table is as of December 31, 2021. For purposes of the table, "Other Pooled Investment Vehicles" may include investment partnerships and group trusts, and "Other Accounts" may include separate accounts for institutions or individuals, insurance company general or separate accounts, pension funds and other similar institutional accounts.
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Gregg R. |
| 9 |
| $16,004 |
| 14 |
| $2,637 |
| 8 |
| $6,004 |
Thomas, |
| 0* |
| 0* |
| 2* |
| $1,478* |
| 0* |
| $0* |
CFA |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| |
Roberto J. |
| 4 |
| $2,689 |
| 9 |
| $15,647 |
| 4 |
| $1,835 |
Isch, CFA |
| 0* |
| 0* |
| 7* |
| $3,139* |
| 0* |
| 0* |
Note: (*) represents the number and value of accounts, within the total accounts that are subject to a performance-based advisory fee.
Conflicts of Interest. Individual investment professionals at Wellington Management manage multiple accounts for multiple clients. These accounts may include mutual funds, separate accounts (assets managed on behalf of institutions, such as pension funds, insurance companies, foundations, or separately managed account programs sponsored by financial
intermediaries), bank common trust accounts, and hedge funds. The Fund's managers listed in the prospectus who are primarily responsible for the day-to-day management of the Fund ("Investment Professionals") generally manage accounts in several different investment styles. These accounts may have investment objectives, strategies, time horizons, tax considerations and risk profiles that differ from those of the Fund. The Investment Professionals make investment decisions for each account, including the Fund, based on the investment objectives, policies, practices, benchmarks, cash flows, tax and other relevant investment considerations applicable to that account. Consequently, Investment Professionals may purchase or sell securities, including IPOs, for one account and not another account, and the performance of securities purchased for one account may vary from the performance of securities purchased for other accounts. Alternatively, these accounts may be managed in a similar fashion to the Fund and thus the accounts may have similar, and in some cases nearly identical, objectives, strategies and/or holdings to that of the Fund.
An Investment Professional or other investment professionals at Wellington Management may place transactions on behalf of other accounts that are directly or indirectly contrary to investment decisions made on behalf of the Fund, or make investment decisions that are similar to those made for the Fund, both of which have the potential to adversely impact the Fund depending on market conditions. For example, an investment professional may purchase a security in one account while appropriately selling that same security in another account. Similarly, an Investment Professional may purchase the same security for the Fund and one or more other accounts at or about the same time. In those instances the other accounts will have access to their respective holdings prior to the public disclosure of the Fund's holdings. In addition, some of these accounts have fee structures, including performance fees, which are or have the potential to be higher, in some cases significantly higher, than the fees Wellington Management receives for managing the Fund. Mssrs. Thomas and Isch also manage an account which pays performance allocations to Wellington Management or its affiliates. Because incentive payments paid by Wellington Management to the Investment Professionals are tied to revenues earned by Wellington Management and, where noted, to the performance achieved by the manager in each account, the incentives associated with any given account may be significantly higher or lower than those associated with other accounts managed by an Investment Professional. Therefore, portfolio managers and other investment team members have an incentive to favor accounts that have the potential to provide a higher incentive compensation for them as individuals. Wellington Management manages the conflict created by these incentive arrangements through policies on the allocation of investment opportunities, including the allocation of equity IPOs, as well as after- the-fact monitoring the review of client accounts to assess dispersion among accounts with similar mandates. Finally, the Investment Professionals may hold shares or investments in the other pooled investment vehicles and/or other accounts identified above.
Wellington Management's goal is to meet its fiduciary obligation to treat all clients fairly and provide high quality investment services to all of its clients. Wellington Management has adopted and implemented policies and procedures, including brokerage and trade allocation policies and procedures, which it believes address the conflicts associated with
managing multiple accounts for multiple clients. In addition, Wellington Management monitors a variety of areas, including compliance with primary account guidelines, the allocation of IPOs, and compliance with the firm's Code of Ethics, and places additional investment restrictions on investment professionals who manage hedge funds and certain other accounts. Furthermore, senior investment and business personnel at Wellington Management periodically review the performance of Wellington Management's investment professionals. Although Wellington Management does not track the time an investment professional spends on a single account, Wellington Management does periodically assess whether an investment professional has adequate time and resources to effectively manage the investment professional's various client mandates.
Compensation. Wellington Management receives a fee based on the assets under management of the Fund as set forth in the Subadvisory Agreement between Wellington Management and the Adviser on behalf of the Fund. Wellington Management pays its investment professionals out of its total revenues, including the advisory fees earned with respect to the Fund. The following information relates to the fiscal year ended December 31, 2021. Wellington Management's compensation structure is designed to attract and retain high-caliber investment professional's necessary to deliver high quality investment management services to its clients. Wellington Management's compensation of the Fund's manager listed in the Prospectus who is primarily responsible for the day-to-day management of the Fund (the "Investment Professional") includes a base salary. The base salary for each Investment Professional who is a partner (a "Partner") of Wellington Management Group LLP, the ultimate holding company of Wellington Management, is generally a fixed amount that is determined by the managing partners of Wellington Management Group LLP. The base salary for the other Investment Professional is determined by the Investment Professional's experience and performance in his role as an Investment Professional. Base salaries for Wellington Management's employees are reviewed annually and may be adjusted based on the recommendation of an Investment Professional's manager, using guidelines established by Wellington Management's Compensation Committee, which has final oversight responsibility for base salaries of employees of the firm. The Investment Professionals may also be eligible for bonus payments based on their overall contribution to Wellington Management's business operations. Senior management at Wellington Management may reward individuals as it deems appropriate based on other factors. Each Partner is eligible to participate in a Partner-funded tax qualified retirement plan, the contributions to which are made pursuant to an actuarial formula. Messr. Thomas is a Partner.
Share Ownership by Portfolio Managers. The following table indicates as of December 31, 2021, the value of shares beneficially owned by the portfolio managers in the Fund.
| Range of |
Portfolio Manager | Beneficial |
Ownership | |
|
|
Gregg R. Thomas, CFA | $0 |
| |
Roberto J. Isch, CFA | $0 |
|
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a)Not applicable.
(b)REGISTRANT PURCHASES OF EQUITY SECURITIES
|
|
|
| Maximum | |
|
|
|
| Number of | |
|
|
| Total Number of | Shares that May | |
| Total | Average | Shares Purchased | Yet Be | |
| Number of Shares | Price per | as Part of Publicly | Purchased | |
Period | Purchased | Share | Announced Plans* | Under the Plans | |
Jan 21 | - | - | - | 1,222,381 | |
Feb 21 | 1,222,381 | ||||
- | - | - | |||
Mar 21 | 1,222,381 | ||||
- | - | - | |||
Apr 21 | 1,222,381 | ||||
- | - | - | |||
May 21 | 1,222,381 | ||||
- | - | - | |||
Jun 21 | 1,222,381 | ||||
- | - | - | |||
Jul 21 | 1,222,381 | ||||
- | - | - | |||
Aug 21 | 1,222,381 | ||||
- | - | - | |||
Sep 21 | 1,222,381 | ||||
- | - | - | |||
Oct 21 | 1,222,381 | ||||
- | - | - | |||
Nov 21 | 1,222,381 | ||||
- | - | - | |||
Dec 21 | - | - | - | 1,222,381 | |
Total |
| ||||
- | - |
|
| ||
|
|
|
*On December 6, 2011, the Board of Trustees approved a share repurchase plan which was subsequently reviewed by the Board of Trustees each year in December. Under the current share repurchase plan the fund may purchase in the open market, between January 1, 2022 and December 31, 2022, up to an additional 10% of its outstanding common shares (based on common shares outstanding as of December 31, 2021).
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
(a)The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds – Nominating 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)(1) Code of Ethics for Covered Officers is attached.
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: | February 9, 2022 |
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: | February 9, 2022 |
By: | /s/ Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | February 9, 2022 |