Table of Contents
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- 00560
John Hancock Investment Trust
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116
(Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service)
Registrant’s telephone number, including area code: 617-663-4497
Date of fiscal year end: October 31
Date of reporting period: October 31, 2020
Table of Contents
ITEM 1. | REPORTS TO STOCKHOLDERS |
This report on Form N-CSR relates solely to twelve of the Registrant’s annual reports to shareholders for the year ended October 31, 2020. The first report applies to John Hancock Balanced Fund, the second report applies to John Hancock Fundamental Large Cap Core Fund, the third report applies to John Hancock Seaport Long/Short Fund, the fourth report applies to John Hancock Disciplined Value International Fund, the fifth report applies to John Hancock Emerging Markets Equity Fund, the sixth report applies to John Hancock ESG All Cap Core Fund, the seventh report applies to John Hancock ESG Large Cap Core Fund, the eighth report applies to John Hancock ESG International Equity Fund, the ninth report applies to John Hancock Global Thematic Opportunities Fund, the tenth report applies to John Hancock International Dynamic Growth Fund, the eleventh report applies to John Hancock Diversified Macro Fund, and the twelfth report applies to John Hancock Alternative Risk Premia Fund.
Table of Contents
Table of Contents
Dear shareholders,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31,2020.The governments of many nations worked to shore up their economies, equity markets began to rise, and credit spreads rebounded off their highs as liquidity concerns eased.
Of course it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain areas have been reinstated, affecting the level of unemployment and the pace of hiring. Consumer spending also remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
John Hancock
Balanced Fund
Table of contents | ||||||||
2 | ||||||||
5 | ||||||||
7 | ||||||||
9 | ||||||||
11 | ||||||||
42 | ||||||||
46 | ||||||||
53 | ||||||||
64 | ||||||||
65 | ||||||||
66 | Continuation of investment advisory and subadvisory agreements | |||||||
73 | ||||||||
77 | More information | |||||||
1 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks current income, long-term growth of capital and income and preservation of capital.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The blended index is 60% S&P 500 Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index. The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.
The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of US dollar-denominated and non-convertible investment-grade debt issues.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 2 |
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Favorable relative performance | ||
The fund outperformed a 60%/40% blend of the S&P 500 Index and the Bloomberg Barclays U.S. Aggregate Index, due to a combination of strong results in the equity and fixed-income portfolio, as well as a timely underweight in equities during the early 2020 market sell-off. | ||
Strong equity security selection aided performance | ||
The fund’s equity portfolio benefited from positive stock picking, particularly in the consumer discretionary and financials sectors. | ||
An underweight in equities also helped performance | ||
As equity valuations continued to rise, we further brought down the fund’s equity allocation, finishing the period at roughly 52% of net assets, down several percentage points from a year earlier. |
PORTFOLIO COMPOSITION AS OF 10/31/2020 (% of net assets)
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
3 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 4 |
Table of Contents
Manager’s discussion of fund performance
|
How did the fund perform during the 12 months ended October 31, 2020?
The fund outperformed its blended benchmark, a 60%/40% blend of the S&P 500 Index and the Bloomberg Barclays U.S. Aggregate Bond Index. Throughout the period, the fund was underweight in equities, and this stance particularly helped results when stock prices plunged in February and March with the initial spread of COVID-19.The fund’s fixed-income positioning also contributed, given the outperformance of its bond investments relative to the fixed-income category. Finally, the fund’s equity portfolio further added to results this period, as this portfolio segment outperformed the equity index.
What most influenced results in the equity portfolio?
Security selection across multiple categories, especially in the consumer discretionary and financials sectors, contributed to relative performance, while picks in industrials were a partly offsetting negative factor. Individually, one of the fund’s top contributors was PayPal Holdings, Inc. This leading online payment processor continued to benefit from the ongoing transition from in-person to electronic commerce, a trend that’s only accelerated with COVID-19.Similarly,online retail giant Amazon.com, Inc. experienced a better business environment during the pandemic, as people’s comfort with shopping virtually continued to increase. Home products retailer Lowe’s Companies, Inc. was a third contributor.
One of the fund’s largest individual detractors was The Boeing Company. Shares of this aircraft manufacturer lagged due to sharply falling demand for air travel amid the pandemic. We saw better risk/reward opportunity elsewhere in the market and
TOP 5 EQUITY HOLDINGS AS OF 10/31/2020 (% of net assets) | TOP 5 BOND ISSUERS AS OF 10/31/2020 (% of net assets) | |||||||||||||||||||
Amazon.com, Inc. | 3.7 |
U.S. Treasury | 7.4 | |||||||||||||||||
Microsoft Corp. | 3.6 | Federal National Mortgage Association | 6.2 | |||||||||||||||||
Alphabet, Inc., Class A | 3.2 | Federal Home Loan Mortgage Corp. | 3.9 | |||||||||||||||||
Apple, Inc. | 2.8 | Ford Motor Company | 0.7 | |||||||||||||||||
Walmart, Inc. | 1.9 | Government National Mortgage | ||||||||||||||||||
TOTAL | 15.2 | Association | 0.5 | |||||||||||||||||
TOTAL | 18.7 | |||||||||||||||||||
Cash and cash equivalents are not included.
| Cash and cash equivalents are not included. | |||||||||||||||||||
5 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
sold the fund’s position in May. Another detractor was JPMorgan Chase & Co., which, like other banks, struggled due to concern about the negative financial impact of lower interest rates on its business and the potential for deteriorating consumer and business credit quality. Also hampering results was Valero Energy, Inc., an energy refining and transportation company hurt by sluggish energy demand. | MANAGED BY
Michael J. Scanlon, Jr., CFA Jeffrey N. Given, CFA Susan A. Curry
| |
What factors influenced the performance of the fund’s fixed-income portfolio?
The fund benefited from an overweight in investment-grade corporate bonds and from a more limited exposure to U.S. Treasuries, given their relative underperformance. The fund also modestly benefited from its longer relative duration (greater interest-rate sensitivity) as interest rates reached historic lows. Security selection was mixed but was positive overall, primarily due to high-yield corporate securities.
What changes did you make to the fund’s asset allocation?
The fund remained underweight in equities for the entire period, starting at roughly 58% and finishing at approximately 52%.This shift reflected our view that stock prices, after their sharp drop in the first quarter of 2020, were significantly elevated off their lows and offered what we saw as a less desirable risk/reward trade-off.
The views expressed in this report are exclusively those of Michael J. Scanlon, Jr., CFA, Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 6 |
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | SEC 30-day subsidized | SEC 30-day yield (%) unsubsidized† | |||||||||||||||||||
1-year | 5-year | 10-year | 5-year | 10-year | as of 10-31-20 | as of 10-31-20 | ||||||||||||||||
Class A | 5.13 | 7.18 | 7.78 | 41.42 | 111.53 | 0.91 | 0.90 | |||||||||||||||
Class C | 8.34 | 7.42 | 7.52 | 43.01 | 106.49 | 0.25 | 0.24 | |||||||||||||||
Class I1 | 10.41 | 8.49 | 8.63 | 50.31 | 128.86 | 1.26 | 1.25 | |||||||||||||||
Class R21,2 | 10.03 | 8.07 | 8.25 | 47.42 | 121.04 | 0.68 | 0.67 | |||||||||||||||
Class R41 | 10.24 | 8.33 | 8.44 | 49.21 | 124.89 | 1.13 | 1.02 | |||||||||||||||
Class R51 | 10.48 | 8.55 | 8.67 | 50.73 | 129.73 | 1.33 | 1.32 | |||||||||||||||
Class R61,2 | 10.52 | 8.61 | 8.70 | 51.15 | 130.29 | 1.37 | 1.37 | |||||||||||||||
Index 1†† | 9.71 | 11.71 | 13.01 | 73.97 | 239.87 | — | — | |||||||||||||||
Index 2†† | 6.19 | 4.08 | 3.55 | 22.14 | 41.77 | — | — | |||||||||||||||
Index 3†† | 8.96 | 8.89 | 9.39 | 53.10 | 145.30 | — | — |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales chargeson Class A shares of 4.5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. There turns for Class A shares have been adjusted to reflect the reduction in the maximum sales charge from 5% to 4.5% effective 8-1-19. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R5, and Class R6 shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R2 | Class R4 | Class R5 | Class R6 | ||||||||
Gross (%) | 1.08 | 1.78 | 0.78 | 1.18 | 1.03 | 0.73 | 0.68 | |||||||
Net (%) | 1.07 | 1.77 | 0.77 | 1.17 | 0.92 | 0.72 | 0.67 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. There turn and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance maybe higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† Unsubsidized yield reflects what the yield would have been without the effect of reimbursements and waivers
†† Index 1 is the S&P 500 Index; Index 2 is the Bloomberg Barclays U.S. Aggregate Bond Index; Index 3 is 60% S&P 500 Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index.
See the following page for footnotes.
7 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Balanced Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in a blended index and two separate indexes.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index 1 ($) | Index 2 ($) | Index 3 ($) | |||||||||||||||||||
Class C3 | 10-31-10 | 20,649 | 20,649 | 33,987 | 14,177 | 24,530 | ||||||||||||||||||
Class I1 | 10-31-10 | 22,886 | 22,886 | 33,987 | 14,177 | 24,530 | ||||||||||||||||||
Class R21,2 | 10-31-10 | 22,104 | 22,104 | 33,987 | 14,177 | 24,530 | ||||||||||||||||||
Class R41 | 10-31-10 | 22,489 | 22,489 | 33,987 | 14,177 | 24,530 | ||||||||||||||||||
Class R51 | 10-31-10 | 22,973 | 22,973 | 33,987 | 14,177 | 24,530 | ||||||||||||||||||
Class R61,2 | 10-31-10 | 23,029 | 23,029 | 33,987 | 14,177 | 24,530 |
The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.
The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of US dollar-denominated and non-convertible investment-grade debt issues.
The blended index is 60% S&P 500 Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | For certain types of investors, as described in the fund’s prospectus. |
2 | Class R2 shares were first offered on 3-1-12; Class R6 shares were first offered 9-1-11. Returns prior to these dates are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
3 | The contingent deferred sales charge is not applicable. |
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 8 |
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
◾ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
◾ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31,2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31,2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return).It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
9 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 5-1-2020 | Ending value on 10-31-2020 | Expenses paid during period ended 10-31-20201 | Annualized expense ratio | |||||||||||||||
Class A | Actual expenses/actual returns | $1,000.00 | $1,095.70 | $5.48 | 1.04% | |||||||||||||
Hypothetical example | 1,000.00 | 1,019.90 | 5.28 | 1.04% | ||||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,092.00 | 9.31 | 1.77% | |||||||||||||
Hypothetical example | 1,000.00 | 1,016.20 | 8.97 | 1.77% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,097.90 | 3.96 | 0.75% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.40 | 3.81 | 0.75% | ||||||||||||||
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,095.40 | 5.90 | 1.12% | |||||||||||||
Hypothetical example | 1,000.00 | 1,019.50 | 5.69 | 1.12% | ||||||||||||||
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,096.60 | 4.48 | 0.85% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.90 | 4.32 | 0.85% | ||||||||||||||
Class R5 | Actual expenses/actual returns | 1,000.00 | 1,097.80 | 3.69 | 0.70% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.60 | 3.56 | 0.70% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,097.80 | 3.37 | 0.64% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.90 | 3.25 | 0.64% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 10 |
Table of Contents
|
AS OF 10-31-20
Shares | Value | |||||||
Common stocks 52.5% | $1,553,417,244 | |||||||
(Cost $942,734,268) | ||||||||
Communication services 8.2% | 243,307,690 | |||||||
Diversified telecommunication services 1.6% | ||||||||
Verizon Communications, Inc. | 863,921 | 49,234,858 | ||||||
Interactive media and services 4.7% | ||||||||
Alphabet, Inc., Class A (A) | 58,502 | 94,545,667 | ||||||
Facebook, Inc., Class A (A) | 168,463 | 44,324,300 | ||||||
Media 1.9% | ||||||||
Comcast Corp., Class A | 1,306,886 | 55,202,865 | ||||||
Consumer discretionary 7.3% | 215,419,228 | |||||||
Internet and direct marketing retail 3.7% | ||||||||
Amazon.com, Inc. (A) | 35,830 | 108,785,223 | ||||||
Multiline retail 1.5% | ||||||||
Dollar General Corp. | 216,542 | 45,194,481 | ||||||
Specialty retail 2.1% | ||||||||
Lowe’s Companies, Inc. | 304,371 | 48,121,055 | ||||||
Ulta Beauty, Inc. (A) | 64,412 | 13,318,469 | ||||||
Consumer staples 4.1% | 122,325,561 | |||||||
Beverages 0.4% | ||||||||
Anheuser-Busch InBev SA/NV | 216,236 | 11,185,029 | ||||||
Food and staples retailing 2.5% | ||||||||
Sysco Corp. | 321,846 | 17,801,302 | ||||||
Walmart, Inc. | 405,841 | 56,310,439 | ||||||
Household products 1.2% | ||||||||
The Procter & Gamble Company | 270,086 | 37,028,791 | ||||||
Energy 0.9% | 26,847,020 | |||||||
Oil, gas and consumable fuels 0.9% | ||||||||
ConocoPhillips | 269,681 | 7,718,270 | ||||||
Devon Energy Corp. | 423,727 | 3,783,882 | ||||||
Pioneer Natural Resources Company | 40,609 | 3,230,852 | ||||||
Suncor Energy, Inc. | 413,665 | 4,670,278 | ||||||
Valero Energy Corp. | 192,793 | 7,443,738 | ||||||
Financials 6.3% | 186,395,636 | |||||||
Banks 2.4% | ||||||||
Citizens Financial Group, Inc. | 660,186 | 17,990,069 | ||||||
JPMorgan Chase & Co. | 481,591 | 47,215,182 | ||||||
SVB Financial Group (A) | 26,874 | 7,812,272 |
11 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
Financials (continued) | ||||||||
Capital markets 1.2% | ||||||||
BlackRock, Inc. | 31,081 | $18,624,046 | ||||||
The Goldman Sachs Group, Inc. | 85,738 | 16,207,912 | ||||||
Consumer finance 0.6% | ||||||||
Discover Financial Services | 268,337 | 17,444,588 | ||||||
Diversified financial services 1.7% | ||||||||
Berkshire Hathaway, Inc., Class B (A) | 245,599 | 49,586,438 | ||||||
Insurance 0.4% | ||||||||
Arthur J. Gallagher & Company | 111,032 | 11,515,129 | ||||||
Health care 8.3% | 244,369,850 | |||||||
Biotechnology 1.5% | ||||||||
Alexion Pharmaceuticals, Inc. (A) | 141,342 | 16,274,118 | ||||||
Gilead Sciences, Inc. | 195,394 | 11,362,161 | ||||||
Incyte Corp. (A) | 135,683 | 11,755,575 | ||||||
Sage Therapeutics, Inc. (A) | 42,503 | 3,118,870 | ||||||
Health care equipment and supplies 2.5% | ||||||||
Abbott Laboratories | 366,674 | 38,541,104 | ||||||
Danaher Corp. | 155,306 | 35,648,939 | ||||||
Health care providers and services 1.1% | ||||||||
UnitedHealth Group, Inc. | 108,663 | 33,157,428 | ||||||
Life sciences tools and services 0.9% | ||||||||
PerkinElmer, Inc. | 41,878 | 5,425,295 | ||||||
Thermo Fisher Scientific, Inc. | 46,487 | 21,993,929 | ||||||
Pharmaceuticals 2.3% | ||||||||
AstraZeneca PLC | 155,356 | 15,598,653 | ||||||
Eli Lilly & Company | 153,616 | 20,040,743 | ||||||
Johnson & Johnson | 149,110 | 20,444,472 | ||||||
Merck & Company, Inc. | 146,371 | 11,008,563 | ||||||
Industrials 3.3% | 98,576,321 | |||||||
Aerospace and defense 0.5% | ||||||||
Northrop Grumman Corp. | 54,575 | 15,816,927 | ||||||
Industrial conglomerates 1.4% | ||||||||
Honeywell International, Inc. | 149,528 | 24,664,644 | ||||||
Roper Technologies, Inc. | 42,614 | 15,824,283 | ||||||
Machinery 1.4% | ||||||||
Deere & Company | 99,047 | 22,375,708 | ||||||
Xylem, Inc. | 228,308 | 19,894,759 | ||||||
Information technology 11.7% | 345,163,692 | |||||||
Communications equipment 1.1% | ||||||||
Cisco Systems, Inc. | 912,156 | 32,746,400 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 12 |
Table of Contents
|
Shares | Value | |||||||
Information technology (continued) | ||||||||
IT services 1.7% | ||||||||
Fidelity National Information Services, Inc. | 92,526 | $11,527,814 | ||||||
PayPal Holdings, Inc. (A) | 203,674 | 37,909,842 | ||||||
Semiconductors and semiconductor equipment 2.1% | ||||||||
Broadcom, Inc. | 123,572 | 43,204,478 | ||||||
Micron Technology, Inc. (A) | 399,785 | 20,125,177 | ||||||
Software 4.0% | ||||||||
Microsoft Corp. | 517,590 | 104,796,447 | ||||||
SAP SE, ADR | 114,005 | 12,179,154 | ||||||
Technology hardware, storage and peripherals 2.8% | ||||||||
Apple, Inc. | 759,456 | 82,674,380 | ||||||
Materials 1.2% | 36,136,529 | |||||||
Chemicals 0.5% | ||||||||
Linde PLC | 64,740 | 14,264,812 | ||||||
Metals and mining 0.7% | ||||||||
Franco-Nevada Corp. | 97,426 | 13,278,982 | ||||||
Lundin Mining Corp. | 740,559 | 4,474,593 | ||||||
Teck Resources, Ltd., Class B | 313,341 | 4,118,142 | ||||||
Real estate 1.0% | 28,502,199 | |||||||
Equity real estate investment trusts 1.0% | ||||||||
American Tower Corp. | 64,262 | 14,757,768 | ||||||
Digital Realty Trust, Inc. | 95,249 | 13,744,431 | ||||||
Utilities 0.2% | 6,373,518 | |||||||
Independent power and renewable electricity producers 0.2% | ||||||||
Brookfield Renewable Corp., Class A | 93,960 | 6,273,709 | ||||||
Multi-utilities 0.0% | ||||||||
Dominion Energy, Inc. | 961 | 99,809 | ||||||
Preferred securities 0.1% | $2,738,450 | |||||||
(Cost $2,604,842) | ||||||||
Financials 0.0% | 891,940 | |||||||
Banks 0.0% | ||||||||
GMAC Capital Trust I (3 month LIBOR + 5.785%), 6.065% (B) | 26,792 | 689,626 | ||||||
Wells Fargo & Company, 7.500% | 150 | 202,314 | ||||||
Information technology 0.1% | 999,592 | |||||||
Semiconductors and semiconductor equipment 0.1% | ||||||||
Broadcom, Inc., 8.000% | 840 | 999,592 |
13 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||||||||||
Utilities 0.0% | $846,918 | |||||||||||||||
Electric utilities 0.0% | ||||||||||||||||
NextEra Energy, Inc., 5.279% | 14,250 | 704,663 | ||||||||||||||
The Southern Company, 6.750% | 1,552 | 75,024 | ||||||||||||||
Multi-utilities 0.0% | ||||||||||||||||
DTE Energy Company, 6.250% | 1,413 | 67,231 | ||||||||||||||
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
U.S. Government and Agency obligations 17.3% | $511,611,578 | |||||||||||||||
(Cost $496,479,524) | ||||||||||||||||
U.S. Government 7.4% | 219,348,644 | |||||||||||||||
U.S. Treasury | ||||||||||||||||
Bond | 1.250 | 05-15-50 | 13,663,000 | 12,335,127 | ||||||||||||
Bond | 2.250 | 08-15-49 | 20,045,000 | 22,867,743 | ||||||||||||
Bond | 2.500 | 02-15-45 | 10,260,000 | 12,209,400 | ||||||||||||
Bond | 2.750 | 11-15-42 | 37,090,000 | 45,949,584 | ||||||||||||
Bond | 3.000 | 02-15-47 | 684,000 | 892,780 | ||||||||||||
Bond | 3.125 | 11-15-41 | 16,558,000 | 21,678,044 | ||||||||||||
Note | 0.125 | 06-30-22 | 10,955,000 | 10,950,721 | ||||||||||||
Note | 0.125 | 07-31-22 | 10,715,000 | 10,708,722 | ||||||||||||
Note | 0.125 | 09-30-22 | 15,150,000 | 15,141,715 | ||||||||||||
Note | 0.250 | 09-30-25 | 41,317,000 | 41,061,996 | ||||||||||||
Note | 0.625 | 08-15-30 | 21,296,000 | 20,800,203 | ||||||||||||
Note | 1.625 | 09-30-26 | 4,465,000 | 4,752,609 | ||||||||||||
U.S. Government Agency 9.9% | 292,262,934 | |||||||||||||||
Federal Home Loan Mortgage Corp. | ||||||||||||||||
15 Yr Pass Thru | 2.500 | 11-01-34 | 2,925,045 | 3,076,705 | ||||||||||||
30 Yr Pass Thru | 2.500 | 08-01-50 | 14,175,698 | 15,071,746 | ||||||||||||
30 Yr Pass Thru | 3.000 | 03-01-43 | 667,353 | 730,726 | ||||||||||||
30 Yr Pass Thru | 3.000 | 12-01-45 | 3,378,779 | 3,651,986 | ||||||||||||
30 Yr Pass Thru | 3.000 | 10-01-46 | 9,943,229 | 10,728,592 | ||||||||||||
30 Yr Pass Thru | 3.000 | 10-01-46 | 3,929,145 | 4,213,702 | ||||||||||||
30 Yr Pass Thru | 3.000 | 12-01-46 | 3,082,634 | 3,277,948 | ||||||||||||
30 Yr Pass Thru | 3.000 | 12-01-46 | 2,505,479 | 2,719,914 | ||||||||||||
30 Yr Pass Thru | 3.000 | 04-01-47 | 5,057,030 | 5,328,711 | ||||||||||||
30 Yr Pass Thru | 3.000 | 10-01-49 | 7,346,942 | 7,799,618 | ||||||||||||
30 Yr Pass Thru | 3.000 | 10-01-49 | 6,236,889 | 6,591,446 | ||||||||||||
30 Yr Pass Thru | 3.000 | 12-01-49 | 1,451,331 | 1,540,754 | ||||||||||||
30 Yr Pass Thru | 3.000 | 12-01-49 | 10,977,471 | 11,520,050 | ||||||||||||
30 Yr Pass Thru | 3.000 | 01-01-50 | 8,723,920 | 9,261,437 | ||||||||||||
30 Yr Pass Thru | 3.000 | 02-01-50 | 5,118,200 | 5,371,175 | ||||||||||||
30 Yr Pass Thru | 3.500 | 10-01-46 | 4,314,654 | 4,722,648 | ||||||||||||
30 Yr Pass Thru | 3.500 | 12-01-46 | 2,119,548 | 2,307,470 | ||||||||||||
30 Yr Pass Thru | 3.500 | 11-01-47 | 264,805 | 284,105 | ||||||||||||
30 Yr Pass Thru | 3.500 | 11-01-48 | 1,560,042 | 1,702,258 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 14 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
U.S. Government Agency (continued) | ||||||||||||||||
30 Yr Pass Thru | 3.500 | 06-01-49 | 2,711,330 | $2,902,586 | ||||||||||||
30 Yr Pass Thru | 4.000 | 11-01-47 | 1,069,177 | 1,146,839 | ||||||||||||
30 Yr Pass Thru | 4.000 | 08-01-48 | 1,241,240 | 1,347,352 | ||||||||||||
30 Yr Pass Thru | 4.500 | 03-01-41 | 1,382,757 | 1,547,702 | ||||||||||||
30 Yr Pass Thru | 5.500 | 11-01-39 | 786,665 | 919,679 | ||||||||||||
Federal National Mortgage Association | ||||||||||||||||
30 Yr Pass Thru | 2.000 | 09-01-50 | 14,879,642 | 15,445,598 | ||||||||||||
30 Yr Pass Thru | 2.000 | 09-01-50 | 4,646,999 | 4,838,272 | ||||||||||||
30 Yr Pass Thru (C) | 2.000 | 10-01-50 | 17,225,000 | 17,857,792 | ||||||||||||
30 Yr Pass Thru | 2.500 | 09-01-50 | 13,313,175 | 14,184,866 | ||||||||||||
30 Yr Pass Thru | 2.500 | 09-01-50 | 15,019,312 | 16,002,714 | ||||||||||||
30 Yr Pass Thru | 3.000 | 02-01-43 | 500,221 | 531,472 | ||||||||||||
30 Yr Pass Thru | 3.000 | 03-01-43 | 159,309 | 174,389 | ||||||||||||
30 Yr Pass Thru | 3.000 | 05-01-43 | 246,664 | 270,321 | ||||||||||||
30 Yr Pass Thru | 3.000 | 12-01-45 | 4,695,455 | 4,952,113 | ||||||||||||
30 Yr Pass Thru | 3.000 | 02-01-47 | 2,622,568 | 2,846,236 | ||||||||||||
30 Yr Pass Thru | 3.000 | 10-01-47 | 5,509,579 | 5,907,156 | ||||||||||||
30 Yr Pass Thru | 3.000 | 12-01-47 | 1,676,529 | 1,766,598 | ||||||||||||
30 Yr Pass Thru | 3.000 | 10-01-49 | 6,957,860 | 7,459,946 | ||||||||||||
30 Yr Pass Thru | 3.000 | 11-01-49 | 1,435,766 | 1,517,387 | ||||||||||||
30 Yr Pass Thru | 3.500 | 06-01-42 | 3,188,604 | 3,515,164 | ||||||||||||
30 Yr Pass Thru | 3.500 | 06-01-43 | 5,798,558 | 6,397,851 | ||||||||||||
30 Yr Pass Thru | 3.500 | 12-01-44 | 1,306,250 | 1,429,008 | ||||||||||||
30 Yr Pass Thru | 3.500 | 04-01-45 | 1,054,636 | 1,151,111 | ||||||||||||
30 Yr Pass Thru | 3.500 | 04-01-45 | 427,555 | 466,666 | ||||||||||||
30 Yr Pass Thru | 3.500 | 07-01-47 | 8,967,744 | 9,799,298 | ||||||||||||
30 Yr Pass Thru | 3.500 | 12-01-47 | 1,687,564 | 1,815,569 | ||||||||||||
30 Yr Pass Thru | 3.500 | 07-01-49 | 2,390,255 | 2,522,711 | ||||||||||||
30 Yr Pass Thru | 3.500 | 09-01-49 | 1,893,934 | 1,999,951 | ||||||||||||
30 Yr Pass Thru | 3.500 | 01-01-50 | 3,767,296 | 3,971,822 | ||||||||||||
30 Yr Pass Thru | 3.500 | 03-01-50 | 8,793,202 | 9,303,557 | ||||||||||||
30 Yr Pass Thru | 3.500 | 04-01-50 | 12,017,934 | 12,895,720 | ||||||||||||
30 Yr Pass Thru | 4.000 | 01-01-41 | 1,429,949 | 1,586,236 | ||||||||||||
30 Yr Pass Thru | 4.000 | 09-01-41 | 892,884 | 989,913 | ||||||||||||
30 Yr Pass Thru | 4.000 | 10-01-41 | 5,725,385 | 6,351,141 | ||||||||||||
30 Yr Pass Thru | 4.000 | 01-01-47 | 6,924,385 | 7,597,984 | ||||||||||||
30 Yr Pass Thru | 4.000 | 04-01-48 | 1,155,918 | 1,264,193 | ||||||||||||
30 Yr Pass Thru | 4.000 | 10-01-48 | 1,128,846 | 1,234,232 | ||||||||||||
30 Yr Pass Thru | 4.000 | 07-01-49 | 1,548,345 | 1,681,281 | ||||||||||||
30 Yr Pass Thru | 4.500 | 11-01-39 | 1,755,104 | 1,963,939 | ||||||||||||
30 Yr Pass Thru | 4.500 | 09-01-40 | 924,240 | 1,034,213 | ||||||||||||
30 Yr Pass Thru | 4.500 | 05-01-41 | 554,780 | 620,791 | ||||||||||||
30 Yr Pass Thru | 4.500 | 07-01-41 | 1,917,782 | 2,139,980 | ||||||||||||
30 Yr Pass Thru | 4.500 | 01-01-43 | 695,320 | 775,882 |
15 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
U.S. Government Agency (continued) | ||||||||||||||||
30 Yr Pass Thru | 4.500 | 04-01-48 | 4,828,088 | $5,307,515 | ||||||||||||
30 Yr Pass Thru | 4.500 | 07-01-48 | 2,703,814 | 2,923,295 | ||||||||||||
30 Yr Pass Thru | 7.000 | 06-01-32 | 740 | 876 | ||||||||||||
30 Yr Pass Thru | 7.500 | 04-01-31 | 1,478 | 1,740 | ||||||||||||
30 Yr Pass Thru | 8.000 | 01-01-31 | 1,099 | 1,286 | ||||||||||||
Foreign government obligations 0.2% | $5,560,418 | |||||||||||||||
(Cost $4,955,354) | ||||||||||||||||
Qatar 0.1% | 2,973,680 | |||||||||||||||
State of Qatar | ||||||||||||||||
Bond (D) | 3.375 | 03-14-24 | 1,403,000 | 1,511,845 | ||||||||||||
Bond (D) | 5.103 | 04-23-48 | 1,060,000 | 1,461,835 | ||||||||||||
Saudi Arabia 0.1% | 2,586,738 | |||||||||||||||
Kingdom of Saudi Arabia | ||||||||||||||||
Bond (D) | 4.375 | 04-16-29 | 2,200,000 | 2,586,738 | ||||||||||||
Corporate bonds 23.9% | $706,650,975 | |||||||||||||||
(Cost $685,349,015) | ||||||||||||||||
Communication services 3.0% | 89,382,482 | |||||||||||||||
Diversified telecommunication services 0.8% | ||||||||||||||||
AT&T, Inc. | 2.300 | 06-01-27 | 1,244,000 | 1,290,755 | ||||||||||||
AT&T, Inc. | 3.100 | 02-01-43 | 1,923,000 | 1,825,045 | ||||||||||||
AT&T, Inc. | 3.650 | 06-01-51 | 528,000 | 517,304 | ||||||||||||
AT&T, Inc. | 3.800 | 02-15-27 | 1,056,000 | 1,188,274 | ||||||||||||
C&W Senior Financing DAC (D) | 6.875 | 09-15-27 | 1,180,000 | 1,242,540 | ||||||||||||
CenturyLink, Inc. (D) | 4.000 | 02-15-27 | 392,000 | 400,773 | ||||||||||||
Cincinnati Bell, Inc. (D) | 7.000 | 07-15-24 | 1,291,000 | 1,334,571 | ||||||||||||
Frontier Communications Corp. (D) | 5.875 | 10-15-27 | 201,000 | 204,769 | ||||||||||||
GCI LLC (D) | 4.750 | 10-15-28 | 583,000 | 601,773 | ||||||||||||
Level 3 Financing, Inc. (D) | 3.400 | 03-01-27 | 1,454,000 | 1,555,446 | ||||||||||||
Liquid Telecommunications Financing PLC (D) | 8.500 | 07-13-22 | 670,000 | 680,985 | ||||||||||||
Radiate Holdco LLC (D) | 6.500 | 09-15-28 | 801,000 | 825,030 | ||||||||||||
Switch, Ltd. (D) | 3.750 | 09-15-28 | 272,000 | 272,340 | ||||||||||||
Telecom Argentina SA (D) | 6.500 | 06-15-21 | 345,000 | 326,028 | ||||||||||||
Telecom Argentina SA (D) | 8.000 | 07-18-26 | 653,000 | 538,732 | ||||||||||||
Telecom Italia Capital SA | 7.200 | 07-18-36 | 1,485,000 | 1,873,550 | ||||||||||||
Telecom Italia SpA (D) | 5.303 | 05-30-24 | 1,140,000 | 1,233,423 | ||||||||||||
Verizon Communications, Inc. | 3.000 | 03-22-27 | 235,000 | 258,520 | ||||||||||||
Verizon Communications, Inc. | 4.329 | 09-21-28 | 1,756,000 | 2,105,655 | ||||||||||||
Verizon Communications, Inc. | 4.400 | 11-01-34 | 1,365,000 | 1,683,381 | ||||||||||||
Verizon Communications, Inc. | 4.862 | 08-21-46 | 2,383,000 | 3,153,694 | ||||||||||||
Entertainment 0.3% | ||||||||||||||||
Activision Blizzard, Inc. | 3.400 | 09-15-26 | 595,000 | 672,242 | ||||||||||||
Cable One, Inc. (D) | 4.000 | 11-15-30 | 448,000 | 454,720 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 16 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Communication services (continued) | ||||||||||||||||
Entertainment (continued) | ||||||||||||||||
Lions Gate Capital Holdings LLC (D) | 5.875 | 11-01-24 | 760,000 | $714,400 | ||||||||||||
Lions Gate Capital Holdings LLC (D) | 6.375 | 02-01-24 | 49,000 | 47,040 | ||||||||||||
Netflix, Inc. | 4.875 | 04-15-28 | 2,410,000 | 2,710,527 | ||||||||||||
Netflix, Inc. (D) | 4.875 | 06-15-30 | 930,000 | 1,061,363 | ||||||||||||
Netflix, Inc. (D) | 5.375 | 11-15-29 | 230,000 | 269,388 | ||||||||||||
Netflix, Inc. | 5.875 | 11-15-28 | 1,835,000 | 2,192,449 | ||||||||||||
Interactive media and services 0.1% | ||||||||||||||||
ANGI Group LLC (D) | 3.875 | 08-15-28 | 589,000 | 582,374 | ||||||||||||
Match Group Holdings II LLC (D) | 4.125 | 08-01-30 | 611,000 | 623,984 | ||||||||||||
National CineMedia LLC (D) | 5.875 | 04-15-28 | 355,000 | 246,725 | ||||||||||||
Twitter, Inc. (D) | 3.875 | 12-15-27 | 676,000 | 708,989 | ||||||||||||
Media 1.2% | ||||||||||||||||
Altice Financing SA (D) | 5.000 | 01-15-28 | 351,000 | 340,470 | ||||||||||||
Altice France Holding SA (D) | 10.500 | 05-15-27 | 225,000 | 248,063 | ||||||||||||
Charter Communications Operating LLC | 4.200 | 03-15-28 | 2,183,000 | 2,474,394 | ||||||||||||
Charter Communications Operating LLC | 4.800 | 03-01-50 | 2,775,000 | 3,148,052 | ||||||||||||
Charter Communications Operating LLC | 5.750 | 04-01-48 | 2,885,000 | 3,587,278 | ||||||||||||
Charter Communications Operating LLC | 6.484 | 10-23-45 | 2,410,000 | 3,233,188 | ||||||||||||
Comcast Corp. | 3.999 | 11-01-49 | 265,000 | 318,869 | ||||||||||||
Comcast Corp. | 4.049 | 11-01-52 | 2,023,000 | 2,467,396 | ||||||||||||
Comcast Corp. | 4.150 | 10-15-28 | 5,236,000 | 6,226,833 | ||||||||||||
Cox Communications, Inc. (D) | 1.800 | 10-01-30 | 900,000 | 878,908 | ||||||||||||
Cox Communications, Inc. (D) | 2.950 | 10-01-50 | 1,232,000 | 1,178,925 | ||||||||||||
CSC Holdings LLC (D) | 4.625 | 12-01-30 | 212,000 | 211,943 | ||||||||||||
CSC Holdings LLC (D) | 5.375 | 02-01-28 | 360,000 | 382,500 | ||||||||||||
CSC Holdings LLC (D) | 5.750 | 01-15-30 | 1,504,000 | 1,607,844 | ||||||||||||
CSC Holdings LLC | 5.875 | 09-15-22 | 905,000 | 954,775 | ||||||||||||
CSC Holdings LLC (D) | 7.500 | 04-01-28 | 730,000 | 799,251 | ||||||||||||
Globo Comunicacao e Participacoes SA (D) | 4.875 | 01-22-30 | 1,350,000 | 1,335,501 | ||||||||||||
LCPR Senior Secured Financing DAC (D) | 6.750 | 10-15-27 | 765,000 | 812,813 | ||||||||||||
MDC Partners, Inc. (D) | 6.500 | 05-01-24 | 1,784,000 | 1,706,967 | ||||||||||||
Meredith Corp. | 6.875 | 02-01-26 | 1,717,000 | 1,422,964 | ||||||||||||
Sirius XM Radio, Inc. (D) | 5.000 | 08-01-27 | 1,657,000 | 1,735,708 | ||||||||||||
Virgin Media Finance PLC (D) | 5.000 | 07-15-30 | 334,000 | 332,330 | ||||||||||||
WMG Acquisition Corp. (D) | 5.500 | 04-15-26 | 800,000 | 830,000 | ||||||||||||
Wireless telecommunication services 0.6% | ||||||||||||||||
Comunicaciones Celulares SA (D) | 6.875 | 02-06-24 | 455,000 | 465,238 | ||||||||||||
Millicom International Cellular SA (D) | 5.125 | 01-15-28 | 200,000 | 210,000 | ||||||||||||
MTN Mauritius Investments, Ltd. (D) | 4.755 | 11-11-24 | 630,000 | 645,969 | ||||||||||||
Oztel Holdings SPC, Ltd. (D) | 6.625 | 04-24-28 | 785,000 | 769,977 | ||||||||||||
SoftBank Group Corp. (6.875% to | 6.875 | 07-19-27 | 1,999,000 | 1,897,551 |
17 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Communication services (continued) | ||||||||||||||||
Wireless telecommunication services (continued) | ||||||||||||||||
Sprint Corp. | 7.875 | 09-15-23 | 1,120,000 | $1,278,200 | ||||||||||||
Telefonica Celular del Paraguay SA (D) | 5.875 | 04-15-27 | 1,073,000 | 1,137,380 | ||||||||||||
T-Mobile USA, Inc. (D) | 2.050 | 02-15-28 | 2,402,000 | 2,430,752 | ||||||||||||
T-Mobile USA, Inc. (D) | 2.550 | 02-15-31 | 606,000 | 616,738 | ||||||||||||
T-Mobile USA, Inc. (D) | 3.300 | 02-15-51 | 2,190,000 | 2,112,605 | ||||||||||||
T-Mobile USA, Inc. (D) | 3.750 | 04-15-27 | 911,000 | 1,015,191 | ||||||||||||
T-Mobile USA, Inc. (D) | 3.875 | 04-15-30 | 2,393,000 | 2,688,200 | ||||||||||||
T-Mobile USA, Inc. (D) | 4.500 | 04-15-50 | 1,421,000 | 1,654,733 | ||||||||||||
Vodafone Group PLC (7.000% to 1-4-29, | 7.000 | 04-04-79 | 2,383,000 | 2,828,187 | ||||||||||||
Consumer discretionary 2.6% | 76,682,785 | |||||||||||||||
Auto components 0.0% | ||||||||||||||||
Dealer Tire LLC (D) | 8.000 | 02-01-28 | 314,000 | 321,065 | ||||||||||||
Magna International, Inc. | 2.450 | 06-15-30 | 431,000 | 451,981 | ||||||||||||
Automobiles 0.8% | ||||||||||||||||
Daimler Finance North America LLC (D) | 2.700 | 06-14-24 | 1,080,000 | 1,142,696 | ||||||||||||
Daimler Finance North America LLC (D) | 3.500 | 08-03-25 | 670,000 | 737,353 | ||||||||||||
Daimler Finance North America LLC (D) | 3.750 | 11-05-21 | 170,000 | 175,250 | ||||||||||||
Ford Motor Credit Company LLC | 4.125 | 08-17-27 | 1,319,000 | 1,299,215 | ||||||||||||
Ford Motor Credit Company LLC | 4.134 | 08-04-25 | 4,427,000 | 4,397,383 | ||||||||||||
Ford Motor Credit Company LLC | 5.113 | 05-03-29 | 2,379,000 | 2,471,186 | ||||||||||||
Ford Motor Credit Company LLC | 5.875 | 08-02-21 | 2,060,000 | 2,103,672 | ||||||||||||
General Motors Company | 5.400 | 04-01-48 | 655,000 | 745,182 | ||||||||||||
General Motors Financial Company, Inc. | 3.600 | 06-21-30 | 2,609,000 | 2,742,937 | ||||||||||||
General Motors Financial Company, Inc. | 4.000 | 01-15-25 | 652,000 | 699,122 | ||||||||||||
General Motors Financial Company, Inc. | 4.300 | 07-13-25 | 1,735,000 | 1,891,822 | ||||||||||||
General Motors Financial Company, Inc. | 5.200 | 03-20-23 | 1,358,000 | 1,473,504 | ||||||||||||
Hyundai Capital America (D) | 1.800 | 10-15-25 | 726,000 | 724,148 | ||||||||||||
Hyundai Capital America (D) | 2.375 | 10-15-27 | 726,000 | 730,848 | ||||||||||||
Nissan Motor Acceptance Corp. (D) | 3.450 | 03-15-23 | 725,000 | 744,804 | ||||||||||||
Volkswagen Group of America |
| 2.900 |
|
| 05-13-22 |
|
| 1,668,000 |
|
| 1,722,305 |
| ||||
Diversified consumer services 0.1% | ||||||||||||||||
GEMS MENASA Cayman, Ltd. (D) | 7.125 | 07-31-26 | 280,000 | 277,200 | ||||||||||||
Laureate Education, Inc. (D) | 8.250 | 05-01-25 | 475,000 | 505,975 | ||||||||||||
Service Corp. International | 3.375 | 08-15-30 | 451,000 | 457,201 | ||||||||||||
Sotheby’s (D)(F) | 7.375 | 10-15-27 | 843,000 | 863,333 | ||||||||||||
Hotels, restaurants and leisure 0.6% | ||||||||||||||||
Caesars Resort Collection LLC (D) | 5.750 | 07-01-25 | 340,000 | 348,714 | ||||||||||||
CCM Merger, Inc. (D) | 6.000 | 03-15-22 | 764,000 | 776,606 | ||||||||||||
CCM Merger, Inc. (D) | 6.375 | 05-01-26 | 503,000 | 514,946 | ||||||||||||
Choice Hotels International, Inc. | 3.700 | 01-15-31 | 352,000 | 364,213 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 18 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Consumer discretionary (continued) | ||||||||||||||||
Hotels, restaurants and leisure (continued) | ||||||||||||||||
Connect Finco SARL (D) | 6.750 | 10-01-26 | 1,377,000 | $1,386,914 | ||||||||||||
Dave & Buster’s, Inc. (D) | 7.625 | 11-01-25 | 203,000 | 199,194 | ||||||||||||
Hilton Domestic Operating Company, Inc. | 4.875 | 01-15-30 | 497,000 | 511,289 | ||||||||||||
Hilton Domestic Operating Company, |
| 5.750 |
|
| 05-01-28 |
|
| 237,000 |
|
| 248,425 |
| ||||
International Game Technology PLC (D) | 5.250 | 01-15-29 | 225,000 | 222,750 | ||||||||||||
International Game Technology PLC (D) | 6.500 | 02-15-25 | 570,000 | 609,900 | ||||||||||||
Jacobs Entertainment, Inc. (D) | 7.875 | 02-01-24 | 969,000 | 949,620 | ||||||||||||
Marriott International, Inc. | 3.500 | 10-15-32 | 1,237,000 | 1,219,035 | ||||||||||||
MGM Resorts International | 4.750 | 10-15-28 | 1,504,000 | 1,470,160 | ||||||||||||
New Red Finance, Inc. (D) | 4.000 | 10-15-30 | 2,222,000 | 2,208,113 | ||||||||||||
Resorts World Las Vegas LLC (D) | 4.625 | 04-16-29 | 865,000 | 799,387 | ||||||||||||
Starbucks Corp. | 2.250 | 03-12-30 | 2,268,000 | 2,325,604 | ||||||||||||
Twin River Worldwide Holdings, Inc. (D) | 6.750 | 06-01-27 | 1,423,000 | 1,440,901 | ||||||||||||
Wyndham Destinations, Inc. (D) | 4.625 | 03-01-30 | 479,000 | 458,643 | ||||||||||||
Wyndham Hotels & Resorts, Inc. (D) | 4.375 | 08-15-28 | 248,000 | 246,492 | ||||||||||||
Yum! Brands, Inc. | 3.625 | 03-15-31 | 828,000 | 813,510 | ||||||||||||
Yum! Brands, Inc. (D) | 4.750 | 01-15-30 | 598,000 | 641,481 | ||||||||||||
Internet and direct marketing retail 0.6% | ||||||||||||||||
Amazon.com, Inc. | 3.150 | 08-22-27 | 2,830,000 | 3,205,275 | ||||||||||||
Amazon.com, Inc. | 4.050 | 08-22-47 | 1,690,000 | 2,158,290 | ||||||||||||
eBay, Inc. | 2.700 | 03-11-30 | 2,272,000 | 2,376,541 | ||||||||||||
Expedia Group, Inc. | 3.250 | 02-15-30 | 1,676,000 | 1,625,799 | ||||||||||||
Expedia Group, Inc. | 3.800 | 02-15-28 | 2,565,000 | 2,575,772 | ||||||||||||
Expedia Group, Inc. | 5.000 | 02-15-26 | 2,354,000 | 2,523,322 | ||||||||||||
Prosus NV (D) | 4.850 | 07-06-27 | 250,000 | 285,983 | ||||||||||||
Prosus NV (D) | 5.500 | 07-21-25 | 1,465,000 | 1,680,812 | ||||||||||||
QVC, Inc. | 4.375 | 03-15-23 | 1,130,000 | 1,170,963 | ||||||||||||
QVC, Inc. | 5.450 | 08-15-34 | 630,000 | 622,125 | ||||||||||||
Multiline retail 0.2% | ||||||||||||||||
Dollar General Corp. | 3.500 | 04-03-30 | 1,305,000 | 1,483,686 | ||||||||||||
Dollar Tree, Inc. | 4.200 | 05-15-28 | 3,215,000 | 3,759,733 | ||||||||||||
Macy’s, Inc. (D) | 8.375 | 06-15-25 | 335,000 | 349,774 | ||||||||||||
Nordstrom, Inc. (D) | 8.750 | 05-15-25 | 125,000 | 136,898 | ||||||||||||
Target Corp. | 2.650 | 09-15-30 | 911,000 | 1,006,621 | ||||||||||||
Specialty retail 0.2% | ||||||||||||||||
Asbury Automotive Group, Inc. (D) | 4.750 | 03-01-30 | 615,000 | 634,988 | ||||||||||||
AutoNation, Inc. | 4.750 | 06-01-30 | 655,000 | 767,222 | ||||||||||||
Group 1 Automotive, Inc. (D) | 4.000 | 08-15-28 | 52,000 | 52,065 | ||||||||||||
Ken Garff Automotive LLC (D) | 4.875 | 09-15-28 | 603,000 | 597,467 | ||||||||||||
Michaels Stores, Inc. (D) | 4.750 | 10-01-27 | 210,000 | 205,275 | ||||||||||||
Specialty Building Products |
| 6.375 |
|
| 09-30-26 |
|
| 97,000 |
|
| 98,940 |
|
19 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Consumer discretionary (continued) | ||||||||||||||||
Specialty retail (continued) | ||||||||||||||||
The TJX Companies, Inc. | 3.500 | 04-15-25 | 1,571,000 | $1,744,667 | ||||||||||||
The TJX Companies, Inc. | 3.875 | 04-15-30 | 1,787,000 | 2,114,263 | ||||||||||||
Textiles, apparel and luxury goods 0.1% | ||||||||||||||||
Hanesbrands, Inc. (D) | 5.375 | 05-15-25 | 450,000 | 473,625 | ||||||||||||
Levi Strauss & Company | 5.000 | 05-01-25 | 584,000 | 598,600 | ||||||||||||
Consumer staples 0.6% | 18,465,909 | |||||||||||||||
Beverages 0.1% | ||||||||||||||||
Anheuser-Busch InBev Worldwide, Inc. | 4.600 | 04-15-48 | 1,621,000 | 1,920,300 | ||||||||||||
Constellation Brands, Inc. | 2.875 | 05-01-30 | 422,000 | 453,857 | ||||||||||||
Keurig Dr. Pepper, Inc. | 3.200 | 05-01-30 | 391,000 | 435,584 | ||||||||||||
Food and staples retailing 0.2% | ||||||||||||||||
Advantage Sales & Marketing, Inc. (D) | 6.500 | 11-15-28 | 1,530,000 | 1,497,717 | ||||||||||||
Albertsons Companies, Inc. (D) | 3.250 | 03-15-26 | 438,000 | 430,335 | ||||||||||||
Albertsons Companies, Inc. (D) | 3.500 | 03-15-29 | 1,097,000 | 1,064,200 | ||||||||||||
Albertsons Companies, Inc. (D) | 4.875 | 02-15-30 | 386,000 | 409,971 | ||||||||||||
Alimentation Couche-Tard, Inc. (D) | 2.700 | 07-26-22 | 890,000 | 918,834 | ||||||||||||
Sysco Corp. | 5.950 | 04-01-30 | 712,000 | 908,795 | ||||||||||||
The Kroger Company | 2.200 | 05-01-30 | 700,000 | 724,871 | ||||||||||||
Food products 0.3% | ||||||||||||||||
BRF SA (D) | 5.750 | 09-21-50 | 1,039,000 | 990,427 | ||||||||||||
Cargill, Inc. (D) | 2.125 | 04-23-30 | 555,000 | 577,774 | ||||||||||||
JBS Investments II GmbH (D) | 5.750 | 01-15-28 | 1,715,000 | 1,801,822 | ||||||||||||
Kraft Heinz Foods Company (D) | 3.875 | 05-15-27 | 81,000 | 85,608 | ||||||||||||
Kraft Heinz Foods Company (D) | 5.500 | 06-01-50 | 959,000 | 1,088,368 | ||||||||||||
Lamb Weston Holdings, Inc. (D) | 4.875 | 05-15-28 | 58,000 | 62,843 | ||||||||||||
NBM US Holdings, Inc. (D) | 6.625 | 08-06-29 | 631,000 | 680,691 | ||||||||||||
NBM US Holdings, Inc. (D) | 7.000 | 05-14-26 | 645,000 | 684,345 | ||||||||||||
Post Holdings, Inc. (D) | 5.500 | 12-15-29 | 814,000 | 878,103 | ||||||||||||
Simmons Foods, Inc. (D) | 5.750 | 11-01-24 | 890,000 | 882,213 | ||||||||||||
Household products 0.0% | ||||||||||||||||
Edgewell Personal Care Company (D) | 5.500 | 06-01-28 | 433,000 | 455,074 | ||||||||||||
Personal products 0.0% | ||||||||||||||||
Natura Cosmeticos SA (D) | 5.375 | 02-01-23 | 1,190,000 | 1,222,725 | ||||||||||||
Walnut Bidco PLC (D) | 9.125 | 08-01-24 | 285,000 | 291,452 | ||||||||||||
Energy 1.9% | 56,050,405 | |||||||||||||||
Energy equipment and services 0.1% | ||||||||||||||||
CSI Compressco LP (D) | 7.500 | 04-01-25 | 1,439,000 | 1,262,723 | ||||||||||||
CSI Compressco LP (D) | 7.500 | 04-01-25 | 262,000 | 229,905 | ||||||||||||
CSI Compressco LP (10.000% Cash or | 10.000 | 04-01-26 | 822,626 | 592,291 | ||||||||||||
Inkia Energy, Ltd. (D) | 5.875 | 11-09-27 | 220,000 | 229,636 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 20 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Energy (continued) | ||||||||||||||||
Energy equipment and services (continued) | ||||||||||||||||
Tervita Corp. (D) | 7.625 | 12-01-21 | 714,000 | $685,440 | ||||||||||||
Oil, gas and consumable fuels 1.8% | ||||||||||||||||
Aker BP ASA (D) | 2.875 | 01-15-26 | 980,000 | 970,111 | ||||||||||||
Aker BP ASA (D) | 3.000 | 01-15-25 | 1,070,000 | 1,068,740 | ||||||||||||
Aker BP ASA (D) | 4.000 | 01-15-31 | 1,841,000 | 1,800,529 | ||||||||||||
Altera Infrastructure LP (D) | 8.500 | 07-15-23 | 886,000 | 748,670 | ||||||||||||
Antero Resources Corp. | 5.000 | 03-01-25 | 584,000 | 438,000 | ||||||||||||
Cheniere Energy Partners LP | 4.500 | 10-01-29 | 1,549,000 | 1,579,236 | ||||||||||||
Cimarex Energy Company | 4.375 | 06-01-24 | 700,000 | 747,305 | ||||||||||||
Colorado Interstate Gas Company LLC (D) | 4.150 | 08-15-26 | 487,000 | 535,812 | ||||||||||||
DCP Midstream Operating LP (5.850% to 5-21-23, then 3 month LIBOR + 3.850%) (D) | 5.850 | 05-21-43 | 652,000 | 484,703 | ||||||||||||
Enbridge, Inc. (5.500% to 7-15-27, then 3 month LIBOR + 3.418%) | 5.500 | 07-15-77 | 1,240,000 | 1,184,324 | ||||||||||||
Enbridge, Inc. (5.750% to 4-15-30, then 5 Year CMT + 5.314%) | 5.750 | 07-15-80 | 1,685,000 | 1,717,438 | ||||||||||||
Enbridge, Inc. (6.250% to 3-1-28, then 3 month LIBOR + 3.641%) | 6.250 | 03-01-78 | 1,380,000 | 1,396,288 | ||||||||||||
Energy Transfer Operating LP | 4.200 | 04-15-27 | 494,000 | 513,335 | ||||||||||||
Energy Transfer Operating LP | 4.250 | 03-15-23 | 1,625,000 | 1,691,881 | ||||||||||||
Energy Transfer Operating LP | 5.150 | 03-15-45 | 1,486,000 | 1,376,845 | ||||||||||||
Energy Transfer Operating LP | 5.875 | 01-15-24 | 1,357,000 | 1,483,964 | ||||||||||||
Enterprise Products Operating LLC (5.250% to 8-16-27, then 3 month LIBOR + 3.033%) | 5.250 | 08-16-77 | 2,668,000 | 2,517,386 | ||||||||||||
Husky Energy, Inc. | 3.950 | 04-15-22 | 912,000 | 930,230 | ||||||||||||
Kinder Morgan Energy Partners LP | 7.750 | 03-15-32 | 855,000 | 1,148,106 | ||||||||||||
Leviathan Bond, Ltd. (D) | 6.500 | 06-30-27 | 1,610,000 | 1,654,159 | ||||||||||||
Leviathan Bond, Ltd. (D) | 6.750 | 06-30-30 | 256,000 | 261,760 | ||||||||||||
Midwest Connector Capital Company LLC (D) | 3.625 | 04-01-22 | 611,000 | 617,070 | ||||||||||||
Midwest Connector Capital Company LLC (D) | 3.900 | 04-01-24 | 1,779,000 | 1,802,940 | ||||||||||||
MPLX LP | 4.000 | 03-15-28 | 933,000 | 1,011,964 | ||||||||||||
MPLX LP | 4.125 | 03-01-27 | 310,000 | 338,694 | ||||||||||||
MPLX LP | 4.250 | 12-01-27 | 380,000 | 420,353 | ||||||||||||
MPLX LP | 5.250 | 01-15-25 | 680,000 | 701,280 | ||||||||||||
MPLX LP (6.875% to 2-15-23, then 3 month LIBOR + 4.652%) (E) | 6.875 | 02-15-23 | 3,055,000 | 2,566,689 | ||||||||||||
ONEOK Partners LP | 4.900 | 03-15-25 | 750,000 | 818,828 | ||||||||||||
Petrobras Global Finance BV | 5.093 | 01-15-30 | 3,629,000 | 3,790,037 | ||||||||||||
Petrobras Global Finance BV | 6.900 | 03-19-49 | 620,000 | 701,617 | ||||||||||||
Phillips 66 | 3.700 | 04-06-23 | 312,000 | 333,839 | ||||||||||||
Sabine Pass Liquefaction LLC | 4.200 | 03-15-28 | 846,000 | 916,643 |
21 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Energy (continued) | ||||||||||||||||
Oil, gas and consumable fuels (continued) | ||||||||||||||||
Sabine Pass Liquefaction LLC | 5.000 | 03-15-27 | 950,000 | $1,065,688 | ||||||||||||
Sabine Pass Liquefaction LLC | 5.875 | 06-30-26 | 2,235,000 | 2,625,923 | ||||||||||||
Sunoco Logistics Partners Operations LP | 3.900 | 07-15-26 | 1,430,000 | 1,473,131 | ||||||||||||
Sunoco Logistics Partners Operations LP | 5.400 | 10-01-47 | 995,000 | 958,872 | ||||||||||||
Targa Resources Partners LP | 5.875 | 04-15-26 | 1,976,000 | 2,015,520 | ||||||||||||
The Williams Companies, Inc. | 3.750 | 06-15-27 | 1,650,000 | 1,797,419 | ||||||||||||
The Williams Companies, Inc. | 4.550 | 06-24-24 | 2,922,000 | 3,223,104 | ||||||||||||
The Williams Companies, Inc. | 5.750 | 06-24-44 | 367,000 | 422,588 | ||||||||||||
TransCanada PipeLines, Ltd. | 4.250 | 05-15-28 | 1,050,000 | 1,199,389 | ||||||||||||
Financials 6.3% | 184,637,189 | |||||||||||||||
Banks 3.8% | ||||||||||||||||
Australia & New Zealand Banking Group, Ltd. (6.750% to 6-15-26, then 5 Year ICE Swap Rate + 5.168%) (D)(E) | 6.750 | 06-15-26 | 740,000 | 839,352 | ||||||||||||
Banco Santander SA | 4.379 | 04-12-28 | 1,380,000 | 1,568,156 | ||||||||||||
Bank of America Corp. (2.592% to 4-29-30, then SOFR + 2.150%) | 2.592 | 04-29-31 | 2,120,000 | 2,217,501 | ||||||||||||
Bank of America Corp. (2.831% to 10-24-50, then SOFR + 1.880%) | 2.831 | 10-24-51 | 1,364,000 | 1,347,189 | ||||||||||||
Bank of America Corp. | 3.950 | 04-21-25 | 2,119,000 | 2,365,550 | ||||||||||||
Bank of America Corp. | 4.200 | 08-26-24 | 683,000 | 761,173 | ||||||||||||
Bank of America Corp. | 4.450 | 03-03-26 | 2,346,000 | 2,699,284 | ||||||||||||
Bank of America Corp. (6.300% to 3-10-26, then 3 month LIBOR + 4.553%) (E) | 6.300 | 03-10-26 | 2,563,000 | 2,909,005 | ||||||||||||
Barclays Bank PLC (D) | 10.179 | 06-12-21 | 345,000 | 363,296 | ||||||||||||
Barclays PLC | 4.375 | 01-12-26 | 1,220,000 | 1,379,692 | ||||||||||||
BPCE SA (D) | 4.500 | 03-15-25 | 1,215,000 | 1,348,680 | ||||||||||||
BPCE SA (D) | 5.700 | 10-22-23 | 1,640,000 | 1,840,252 | ||||||||||||
Citigroup, Inc. | 3.200 | 10-21-26 | 2,161,000 | 2,376,467 | ||||||||||||
Citigroup, Inc. | 4.600 | 03-09-26 | 2,812,000 | 3,240,737 | ||||||||||||
Citigroup, Inc. (4.700% to 1-30-25, then SOFR + 3.234%) (E) | 4.700 | 01-30-25 | 2,040,000 | 1,998,690 | ||||||||||||
Citigroup, Inc. | 5.500 | 09-13-25 | 565,000 | 669,764 | ||||||||||||
Citigroup, Inc. (6.125% to 2-15-21, then 3 month LIBOR + 4.478%) (E) | 6.125 | 02-15-21 | 615,000 | 607,625 | ||||||||||||
Citigroup, Inc. (6.250% to 8-15-26, then 3 month LIBOR + 4.517%) (E) | 6.250 | 08-15-26 | 1,845,000 | 2,061,013 | ||||||||||||
Citizens Financial Group, Inc. | 3.250 | 04-30-30 | 2,133,000 | 2,324,525 | ||||||||||||
Credit Agricole SA (D) | 3.250 | 01-14-30 | 2,401,000 | 2,560,629 | ||||||||||||
Credit Agricole SA (7.875% to 1-23-24, then 5 Year U.S. Swap Rate + 4.898%) (D)(E) | 7.875 | 01-23-24 | 1,350,000 | 1,487,970 | ||||||||||||
Danske Bank A/S (D) | 5.000 | 01-12-22 | 1,135,000 | 1,188,595 | ||||||||||||
Discover Bank | 2.450 | 09-12-24 | 1,750,000 | 1,840,595 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 22 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Financials (continued) | ||||||||||||||||
Banks (continued) | ||||||||||||||||
Fifth Third Bancorp (5.100% to 6-30-23, then 3 month LIBOR + 3.033%) (E) | 5.100 | 06-30-23 | 1,041,000 | $983,745 | ||||||||||||
Freedom Mortgage Corp. (D) | 8.125 | 11-15-24 | 1,212,000 | 1,221,090 | ||||||||||||
Freedom Mortgage Corp. (D) | 8.250 | 04-15-25 | 250,000 | 252,650 | ||||||||||||
HSBC Holdings PLC (3.950% to 5-18-23, then 3 month LIBOR + 0.987%) | 3.950 | 05-18-24 | 2,735,000 | 2,940,327 | ||||||||||||
HSBC Holdings PLC (6.375% to 3-30-25, then 5 Year ICE Swap Rate + 4.368%) (E) | 6.375 | 03-30-25 | 342,000 | 356,108 | ||||||||||||
HSBC Holdings PLC (6.875% to 6-1-21, then 5 Year ICE Swap Rate + 5.514%) (E) | 6.875 | 06-01-21 | 1,305,000 | 1,324,275 | ||||||||||||
ING Groep NV | 3.550 | 04-09-24 | 1,507,000 | 1,641,651 | ||||||||||||
ING Groep NV (6.500% to 4-16-25, then 5 Year U.S. Swap Rate + 4.446%) (E) | 6.500 | 04-16-25 | 375,000 | 397,031 | ||||||||||||
JPMorgan Chase & Co. (2.522% to 4-22-30, then SOFR + 2.040%) | 2.522 | 04-22-31 | 2,240,000 | 2,359,547 | ||||||||||||
JPMorgan Chase & Co. | 2.950 | 10-01-26 | 2,619,000 | 2,883,179 | ||||||||||||
JPMorgan Chase & Co. (2.956% to 5-13-30, then SOFR + 2.515%) | 2.956 | 05-13-31 | 2,124,000 | 2,260,044 | ||||||||||||
JPMorgan Chase & Co. (3.960% to 1-29-26, then 3 month LIBOR + 1.245%) | 3.960 | 01-29-27 | 2,168,000 | 2,467,413 | ||||||||||||
JPMorgan Chase & Co. (4.600% to 2-1-25, then SOFR + 3.125%) (E) | 4.600 | 02-01-25 | 1,743,000 | 1,718,598 | ||||||||||||
JPMorgan Chase & Co. (6.750% to 2-1-24, then 3 month LIBOR + 3.780%) (E) | 6.750 | 02-01-24 | 1,915,000 | 2,093,782 | ||||||||||||
Lloyds Banking Group PLC | 4.450 | 05-08-25 | 3,645,000 | 4,131,802 | ||||||||||||
Lloyds Banking Group PLC (7.500% to 6-27-24, then 5 Year U.S. Swap Rate + 4.760%) (E) | 7.500 | 06-27-24 | 1,455,000 | 1,535,025 | ||||||||||||
M&T Bank Corp. (5.125% to 11-1-26, then 3 month LIBOR + 3.520%) (E) | 5.125 | 11-01-26 | 1,065,000 | 1,117,361 | ||||||||||||
Natwest Group PLC (3.754% to 11-1-24, then 5 Year CMT + 2.100%) | 3.754 | 11-01-29 | 538,000 | 558,842 | ||||||||||||
Natwest Group PLC | 3.875 | 09-12-23 | 1,870,000 | 2,016,645 | ||||||||||||
Natwest Group PLC (6.000% to 12-29-25, then 5 Year CMT + 5.625%) (E) | 6.000 | 12-29-25 | 1,850,000 | 1,914,195 | ||||||||||||
Natwest Group PLC (8.625% to 8-15-21, then 5 Year U.S. Swap Rate + 7.598%) (E) | 8.625 | 08-15-21 | 2,611,000 | 2,694,839 | ||||||||||||
PNC Bank NA | 2.450 | 07-28-22 | 1,410,000 | 1,458,488 | ||||||||||||
Regions Financial Corp. | 2.250 | 05-18-25 | 3,684,000 | 3,891,808 | ||||||||||||
Santander Holdings USA, Inc. | 3.244 | 10-05-26 | 3,234,000 | 3,479,987 | ||||||||||||
Santander Holdings USA, Inc. | 3.400 | 01-18-23 | 1,220,000 | 1,280,793 | ||||||||||||
Santander Holdings USA, Inc. | 3.450 | 06-02-25 | 2,745,000 | 2,959,374 | ||||||||||||
Santander Holdings USA, Inc. | 3.500 | 06-07-24 | 2,792,000 | 3,006,479 |
23 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Financials (continued) | ||||||||||||||||
Banks (continued) | ||||||||||||||||
Santander Holdings USA, Inc. | 4.400 | 07-13-27 | 595,000 | $663,884 | ||||||||||||
Santander UK Group Holdings PLC (D) | 4.750 | 09-15-25 | 1,095,000 | 1,207,440 | ||||||||||||
Societe Generale SA (7.375% to 9-13-21, then 5 Year U.S. Swap Rate + 6.238%) (D)(E) | 7.375 | 09-13-21 | 1,250,000 | 1,284,000 | ||||||||||||
The PNC Financial Services Group, Inc. | 3.150 | 05-19-27 | 244,000 | 271,916 | ||||||||||||
The PNC Financial Services Group, Inc. (4.850% to 6-1-23, then 3 month LIBOR + 3.040%) (E) | 4.850 | 06-01-23 | 1,085,000 | 1,093,138 | ||||||||||||
The PNC Financial Services Group, Inc. (6.750% to 8-1-21, then 3 month LIBOR + 3.678%) (E) | 6.750 | 08-01-21 | 1,861,000 | 1,900,081 | ||||||||||||
Wells Fargo & Company (2.188% to 4-30-25, then SOFR + 2.000%) | 2.188 | 04-30-26 | 2,923,000 | 3,038,817 | ||||||||||||
Wells Fargo & Company (2.393% to 6-2-27, then SOFR + 2.100%) | 2.393 | 06-02-28 | 3,039,000 | 3,152,971 | ||||||||||||
Wells Fargo & Company (3.068% to 4-30-40, then SOFR + 2.530%) | 3.068 | 04-30-41 | 1,741,000 | 1,802,353 | ||||||||||||
Wells Fargo & Company (5.875% to 6-15-25, then 3 month LIBOR + 3.990%) (E) | 5.875 | 06-15-25 | 3,978,000 | 4,267,920 | ||||||||||||
Capital markets 0.9% | ||||||||||||||||
Ares Capital Corp. | 3.875 | 01-15-26 | 1,417,000 | 1,453,288 | ||||||||||||
Ares Capital Corp. | 4.200 | 06-10-24 | 1,286,000 | 1,343,189 | ||||||||||||
Cantor Fitzgerald LP (D) | 4.875 | 05-01-24 | 1,944,000 | 2,123,142 | ||||||||||||
Credit Suisse Group AG (D) | 3.574 | 01-09-23 | 337,000 | 348,131 | ||||||||||||
Credit Suisse Group AG (5.250% to 2-11-27, then 5 Year CMT + 4.889%) (D)(E) | 5.250 | 02-11-27 | 867,000 | 872,896 | ||||||||||||
Credit Suisse Group AG (7.500% to 7-17-23, then 5 Year U.S. Swap Rate + 4.600%) (D)(E) | 7.500 | 07-17-23 | 1,155,000 | 1,224,312 | ||||||||||||
Credit Suisse Group AG (7.500% to 12-11-23, then 5 Year U.S. Swap Rate + 4.598%) (D)(E) | 7.500 | 12-11-23 | 620,000 | 672,700 | ||||||||||||
Lazard Group LLC | 4.375 | 03-11-29 | 1,115,000 | 1,274,236 | ||||||||||||
Macquarie Bank, Ltd. (D) | 3.624 | 06-03-30 | 1,265,000 | 1,327,802 | ||||||||||||
Macquarie Bank, Ltd. (D) | 4.875 | 06-10-25 | 1,395,000 | 1,565,600 | ||||||||||||
Morgan Stanley (2.188% to 4-28-25, then SOFR + 1.990%) | 2.188 | 04-28-26 | 3,614,000 | 3,785,119 | ||||||||||||
Morgan Stanley | 3.875 | 01-27-26 | 1,078,000 | 1,223,639 | ||||||||||||
Raymond James Financial, Inc. | 4.650 | 04-01-30 | 740,000 | 894,798 | ||||||||||||
Stifel Financial Corp. | 4.250 | 07-18-24 | 884,000 | 984,869 | ||||||||||||
The Goldman Sachs Group, Inc. | 3.850 | 01-26-27 | 3,636,000 | 4,090,417 | ||||||||||||
UBS Group AG (6.875% to 3-22-21, then 5 Year U.S. Swap Rate + 5.497%) (E) | 6.875 | 03-22-21 | 1,419,000 | 1,435,858 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 24 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Financials (continued) | ||||||||||||||||
Capital markets (continued) | ||||||||||||||||
UBS Group AG (7.000% to 1-31-24, then 5 Year U.S. Swap Rate + 4.344%) (D)(E) | 7.000 | 01-31-24 | 1,198,000 | $1,289,348 | ||||||||||||
Consumer finance 0.4% | ||||||||||||||||
Ally Financial, Inc. | 5.125 | 09-30-24 | 2,384,000 | 2,694,727 | ||||||||||||
Ally Financial, Inc. | 5.800 | 05-01-25 | 970,000 | 1,131,856 | ||||||||||||
Capital One Financial Corp. | 2.600 | 05-11-23 | 671,000 | 703,144 | ||||||||||||
Capital One Financial Corp. | 3.900 | 01-29-24 | 1,950,000 | 2,127,518 | ||||||||||||
Credito Real SAB de CV (9.125% to 11-29-22, then 5 Year CMT + 7.026%) (D)(E) | 9.125 | 11-29-22 | 510,000 | 373,575 | ||||||||||||
Discover Financial Services | 3.950 | 11-06-24 | 1,970,000 | 2,175,396 | ||||||||||||
Discover Financial Services | 4.100 | 02-09-27 | 426,000 | 476,522 | ||||||||||||
Enova International, Inc. (D) | 8.500 | 09-01-24 | 142,000 | 130,285 | ||||||||||||
Enova International, Inc. (D) | 8.500 | 09-15-25 | 845,000 | 777,400 | ||||||||||||
OneMain Finance Corp. | 6.875 | 03-15-25 | 260,000 | 286,000 | ||||||||||||
OneMain Finance Corp. | 8.875 | 06-01-25 | 375,000 | 412,500 | ||||||||||||
Diversified financial services 0.4% | ||||||||||||||||
Allied Universal Holdco LLC (D) | 6.625 | 07-15-26 | 596,000 | 623,565 | ||||||||||||
Brightstar Escrow Corp. (D) | 9.750 | 10-15-25 | 522,000 | 520,544 | ||||||||||||
GE Capital International Funding Company Unlimited Company | 4.418 | 11-15-35 | 2,498,000 | 2,700,503 | ||||||||||||
Gogo Intermediate Holdings LLC (D) | 9.875 | 05-01-24 | 858,000 | 903,045 | ||||||||||||
Jefferies Financial Group, Inc. | 5.500 | 10-18-23 | 888,000 | 976,015 | ||||||||||||
Jefferies Group LLC | 4.150 | 01-23-30 | 1,680,000 | 1,911,639 | ||||||||||||
Jefferies Group LLC | 4.850 | �� | 01-15-27 | 2,010,000 | 2,309,950 | |||||||||||
Operadora de Servicios Mega SA de CV (D) | 8.250 | 02-11-25 | 516,000 | 477,403 | ||||||||||||
Refinitiv US Holdings, Inc. (D) | 6.250 | 05-15-26 | 100,000 | 106,813 | ||||||||||||
Refinitiv US Holdings, Inc. (D) | 8.250 | 11-15-26 | 160,000 | 174,392 | ||||||||||||
Trident TPI Holdings, Inc. (D) | 6.625 | 11-01-25 | 200,000 | 198,500 | ||||||||||||
Voya Financial, Inc. (5.650% to 5-15-23, then 3 month LIBOR + 3.580%) | 5.650 | 05-15-53 | 2,284,000 | 2,355,398 | ||||||||||||
Insurance 0.7% | ||||||||||||||||
AXA SA | 8.600 | 12-15-30 | 660,000 | 1,016,442 | ||||||||||||
Brighthouse Financial, Inc. | 3.700 | 06-22-27 | 2,610,000 | 2,748,629 | ||||||||||||
CNA Financial Corp. | 2.050 | 08-15-30 | 627,000 | 626,936 | ||||||||||||
CNO Financial Group, Inc. | 5.250 | 05-30-25 | 882,000 | 1,009,505 | ||||||||||||
CNO Financial Group, Inc. | 5.250 | 05-30-29 | 1,878,000 | 2,185,344 | ||||||||||||
Liberty Mutual Group, Inc. (D) | 3.951 | 10-15-50 | 1,781,000 | 1,963,563 | ||||||||||||
Liberty Mutual Group, Inc. (7.800% to 3-15-37, then 3 month LIBOR + 3.576%) (D) | 7.800 | 03-15-37 | 36,000 | 44,072 | ||||||||||||
MetLife, Inc. (6.400% to 12-15-36, then 3 month LIBOR + 2.205%) | 6.400 | 12-15-36 | 1,360,000 | 1,679,863 |
25 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Financials (continued) | ||||||||||||||||
Insurance (continued) | ||||||||||||||||
MetLife, Inc. (9.250% to 4-8-38, then 3 month LIBOR + 5.540%) (D) | 9.250 | 04-08-38 | 320,000 | $460,975 | ||||||||||||
New York Life Insurance Company (D) | 3.750 | 05-15-50 | 1,051,000 | 1,168,103 | ||||||||||||
Nippon Life Insurance Company (5.100% to 10-16-24, then 5 Year ICE Swap Rate + 3.650%) (D) | 5.100 | 10-16-44 | 1,245,000 | 1,391,288 | ||||||||||||
Prudential Financial, Inc. (5.875% to 9-15-22, then 3 month LIBOR + 4.175%) | 5.875 | 09-15-42 | 3,067,000 | 3,244,422 | ||||||||||||
Teachers Insurance & Annuity Association of America (D) | 4.270 | 05-15-47 | 1,632,000 | 1,905,490 | ||||||||||||
Thrifts and mortgage finance 0.1% | ||||||||||||||||
Ladder Capital Finance Holdings LLLP (D) | 5.250 | 03-15-22 | 220,000 | 213,400 | ||||||||||||
Nationstar Mortgage Holdings, Inc. (D) | 5.500 | 08-15-28 | 582,000 | 580,545 | ||||||||||||
Nationstar Mortgage Holdings, Inc. (D) | 6.000 | 01-15-27 | 254,000 | 254,000 | ||||||||||||
Nationstar Mortgage Holdings, Inc. (D) | 9.125 | 07-15-26 | 300,000 | 320,811 | ||||||||||||
Nationwide Building Society (3.622% to 4-26-22, then 3 month LIBOR + 1.181%) (D) | 3.622 | 04-26-23 | 1,239,000 | 1,287,679 | ||||||||||||
Radian Group, Inc. | 4.500 | 10-01-24 | 450,000 | 456,750 | ||||||||||||
Health care 1.6% | 46,131,933 | |||||||||||||||
Biotechnology 0.3% | ||||||||||||||||
AbbVie, Inc. (D) | 3.200 | 11-21-29 | 3,397,000 | 3,737,911 | ||||||||||||
AbbVie, Inc. (D) | 4.250 | 11-21-49 | 1,075,000 | 1,250,421 | ||||||||||||
Gilead Sciences, Inc. | 2.800 | 10-01-50 | 1,702,000 | 1,617,735 | ||||||||||||
Shire Acquisitions Investments Ireland DAC | 3.200 | 09-23-26 | 2,385,000 | 2,650,729 | ||||||||||||
Health care equipment and supplies 0.1% | ||||||||||||||||
Varex Imaging Corp. (D) | 7.875 | 10-15-27 | 483,000 | 491,453 | ||||||||||||
Health care providers and services 1.0% | ||||||||||||||||
AmerisourceBergen Corp. | 2.800 | 05-15-30 | 1,385,000 | 1,472,088 | ||||||||||||
Anthem, Inc. | 2.250 | 05-15-30 | 560,000 | 576,747 | ||||||||||||
Centene Corp. | 3.000 | 10-15-30 | 1,383,000 | 1,436,181 | ||||||||||||
Centene Corp. | 3.375 | 02-15-30 | 397,000 | 412,352 | ||||||||||||
Centene Corp. | 4.250 | 12-15-27 | 289,000 | 304,173 | ||||||||||||
Centene Corp. | 4.625 | 12-15-29 | 302,000 | 328,798 | ||||||||||||
Centene Corp. (D) | 5.375 | 06-01-26 | 1,244,000 | 1,308,949 | ||||||||||||
CVS Health Corp. | 2.700 | 08-21-40 | 956,000 | 912,338 | ||||||||||||
CVS Health Corp. | 3.000 | 08-15-26 | 206,000 | 224,285 | ||||||||||||
CVS Health Corp. | 3.750 | 04-01-30 | 1,451,000 | 1,643,272 | ||||||||||||
CVS Health Corp. | 4.300 | 03-25-28 | 1,675,000 | 1,941,135 | ||||||||||||
CVS Health Corp. | 5.050 | 03-25-48 | 2,031,000 | 2,566,364 | ||||||||||||
DaVita, Inc. (D) | 3.750 | 02-15-31 | 1,153,000 | 1,108,321 | ||||||||||||
DaVita, Inc. (D) | 4.625 | 06-01-30 | 1,368,000 | 1,391,454 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 26 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Health care (continued) | ||||||||||||||||
Health care providers and services (continued) | ||||||||||||||||
Encompass Health Corp. | 4.500 | 02-01-28 | 462,000 | $473,143 | ||||||||||||
Encompass Health Corp. | 4.625 | 04-01-31 | 535,000 | 551,050 | ||||||||||||
Fresenius Medical Care US Finance III, Inc. (D) | 2.375 | 02-16-31 | 2,225,000 | 2,185,252 | ||||||||||||
HCA, Inc. | 4.125 | 06-15-29 | 1,011,000 | 1,146,049 | ||||||||||||
HCA, Inc. | 5.250 | 04-15-25 | 1,508,000 | 1,746,523 | ||||||||||||
HCA, Inc. | 5.250 | 06-15-26 | 1,130,000 | 1,316,056 | ||||||||||||
MEDNAX, Inc. (D) | 5.250 | 12-01-23 | 665,000 | 669,988 | ||||||||||||
MEDNAX, Inc. (D) | 6.250 | 01-15-27 | 755,000 | 778,594 | ||||||||||||
Rede D’or Finance Sarl (D) | 4.500 | 01-22-30 | 1,407,000 | 1,384,136 | ||||||||||||
Select Medical Corp. (D) | 6.250 | 08-15-26 | 1,130,000 | 1,192,150 | ||||||||||||
Team Health Holdings, Inc. (D) | 6.375 | 02-01-25 | 150,000 | 92,355 | ||||||||||||
Universal Health Services, Inc. (D) | 2.650 | 10-15-30 | 902,000 | 899,141 | ||||||||||||
Universal Health Services, Inc. (D) | 5.000 | 06-01-26 | 1,962,000 | 2,035,575 | ||||||||||||
Life sciences tools and services 0.0% | ||||||||||||||||
Charles River Laboratories International, Inc. (D) | 4.250 | 05-01-28 | 169,000 | 176,605 | ||||||||||||
Pharmaceuticals 0.2% | ||||||||||||||||
Bausch Health Companies, Inc. (D) | 5.250 | 01-30-30 | 495,000 | 486,338 | ||||||||||||
Bausch Health Companies, Inc. (D) | 6.125 | 04-15-25 | 1,315,000 | 1,351,820 | ||||||||||||
Bausch Health Companies, Inc. (D) | 6.250 | 02-15-29 | 1,415,000 | 1,458,242 | ||||||||||||
Catalent Pharma Solutions, Inc. (D) | 5.000 | 07-15-27 | 155,000 | 161,588 | ||||||||||||
Royalty Pharma PLC (D) | 1.750 | 09-02-27 | 635,000 | 630,491 | ||||||||||||
Upjohn, Inc. (D) | 2.300 | 06-22-27 | 743,000 | 767,792 | ||||||||||||
Upjohn, Inc. (D) | 2.700 | 06-22-30 | 1,216,000 | 1,254,339 | ||||||||||||
Industrials 2.6% | 76,487,713 | |||||||||||||||
Aerospace and defense 0.5% | ||||||||||||||||
BAE Systems PLC (D) | 1.900 | 02-15-31 | 1,880,000 | 1,866,208 | ||||||||||||
Howmet Aerospace, Inc. | 5.125 | 10-01-24 | 1,176,000 | 1,235,470 | ||||||||||||
Huntington Ingalls Industries, Inc. (D) | 3.844 | 05-01-25 | 240,000 | 264,065 | ||||||||||||
Huntington Ingalls Industries, Inc. (D) | 4.200 | 05-01-30 | 1,617,000 | 1,866,468 | ||||||||||||
Huntington Ingalls Industries, Inc. (D) | 5.000 | 11-15-25 | 1,227,000 | 1,258,411 | ||||||||||||
Kratos Defense & Security Solutions, Inc. (D) | 6.500 | 11-30-25 | 655,000 | 682,838 | ||||||||||||
The Boeing Company | 3.200 | 03-01-29 | 2,384,000 | 2,329,779 | ||||||||||||
The Boeing Company | 5.040 | 05-01-27 | 1,846,000 | 2,027,404 | ||||||||||||
The Boeing Company | 5.805 | 05-01-50 | 972,000 | 1,143,139 | ||||||||||||
TransDigm, Inc. | 5.500 | 11-15-27 | 2,253,000 | 2,196,562 | ||||||||||||
Air freight and logistics 0.1% | ||||||||||||||||
United Parcel Service, Inc. | 3.900 | 04-01-25 | 1,274,000 | 1,445,407 | ||||||||||||
XPO Logistics, Inc. (D) | 6.250 | 05-01-25 | 106,000 | 112,659 | ||||||||||||
XPO Logistics, Inc. (D) | 6.500 | 06-15-22 | 674,000 | 676,487 |
27 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Industrials (continued) | ||||||||||||||||
Airlines 0.7% | ||||||||||||||||
Air Canada 2013-1 Class A Pass Through Trust (D) | 4.125 | 05-15-25 | 462,291 | $423,211 | ||||||||||||
Air Canada 2017-1 Class B Pass Through Trust (D) | 3.700 | 01-15-26 | 655,450 | 545,987 | ||||||||||||
American Airlines 2001-1 Pass Through Trust | 6.977 | 05-23-21 | 62,070 | 56,946 | ||||||||||||
American Airlines 2015-1 Class A Pass Through Trust | 3.375 | 05-01-27 | 963,796 | 720,264 | ||||||||||||
American Airlines 2015-1 Class B Pass Through Trust | 3.700 | 05-01-23 | 406,097 | 258,767 | ||||||||||||
American Airlines 2016-1 Class A Pass Through Trust | 4.100 | 01-15-28 | 1,171,958 | 873,109 | ||||||||||||
American Airlines 2017-1 Class A Pass Through Trust | 4.000 | 02-15-29 | 530,400 | 432,379 | ||||||||||||
American Airlines 2017-1 Class AA Pass Through Trust | 3.650 | 02-15-29 | 812,175 | 751,262 | ||||||||||||
American Airlines 2017-2 Class A Pass Through Trust | 3.600 | 10-15-29 | 358,848 | 275,223 | ||||||||||||
American Airlines 2019-1 Class A Pass Through Trust | 3.500 | 02-15-32 | 579,139 | 436,996 | ||||||||||||
American Airlines 2019-1 Class AA Pass Through Trust | 3.150 | 02-15-32 | 960,405 | 869,167 | ||||||||||||
British Airways 2013-1 Class A Pass Through Trust (D) | 4.625 | 06-20-24 | 556,680 | 535,122 | ||||||||||||
British Airways 2018-1 Class A Pass Through Trust (D) | 4.125 | 09-20-31 | 319,613 | 261,633 | ||||||||||||
Continental Airlines 2007-1 Class A Pass Through Trust | 5.983 | 04-19-22 | 290,515 | 278,894 | ||||||||||||
Delta Air Lines 2002-1 Class G-1 Pass Through Trust | 6.718 | 01-02-23 | 243,856 | 232,687 | ||||||||||||
Delta Air Lines, Inc. | 2.900 | 10-28-24 | 2,361,000 | 2,055,187 | ||||||||||||
Delta Air Lines, Inc. | 3.800 | 04-19-23 | 1,272,000 | 1,203,747 | ||||||||||||
Delta Air Lines, Inc. | 4.375 | 04-19-28 | 1,550,000 | 1,335,360 | ||||||||||||
Delta Air Lines, Inc. (D) | 4.500 | 10-20-25 | 370,000 | 375,510 | ||||||||||||
JetBlue 2019-1 Class AA Pass Through Trust | 2.750 | 05-15-32 | 863,343 | 840,263 | ||||||||||||
United Airlines 2014-2 Class A Pass Through Trust | 3.750 | 09-03-26 | 1,522,374 | 1,461,479 | ||||||||||||
United Airlines 2014-2 Class B Pass Through Trust | 4.625 | 09-03-22 | 403,078 | 371,750 | ||||||||||||
United Airlines 2016-1 Class A Pass Through Trust | 3.450 | 07-07-28 | 959,543 | 786,991 | ||||||||||||
United Airlines 2016-1 Class B Pass Through Trust | 3.650 | 01-07-26 | 1,579,618 | 1,202,549 | ||||||||||||
United Airlines 2018-1 Class B Pass Through Trust | 4.600 | 03-01-26 | 268,453 | 206,061 | ||||||||||||
United Airlines 2019-1 Class A Pass Through Trust | 4.550 | 08-25-31 | 788,415 | 666,932 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 28 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Industrials (continued) | ||||||||||||||||
Airlines (continued) | ||||||||||||||||
United Airlines 2020-1 Class A Pass Through Trust | 5.875 | 10-15-27 | 2,645,000 | $ | 2,641,694 | |||||||||||
US Airways 2010-1 Class A Pass Through Trust | 6.250 | 04-22-23 | 146,941 | 132,247 | ||||||||||||
US Airways 2012-1 Class A Pass Through Trust | 5.900 | 10-01-24 | 326,657 | 303,791 | ||||||||||||
Building products 0.2% | ||||||||||||||||
Builders FirstSource, Inc. (D) | 5.000 | 03-01-30 | 120,000 | 126,600 | ||||||||||||
Builders FirstSource, Inc. (D) | 6.750 | 06-01-27 | 179,000 | 191,978 | ||||||||||||
Carrier Global Corp. (D) | 2.242 | 02-15-25 | 1,886,000 | 1,969,637 | ||||||||||||
Carrier Global Corp. (D) | 2.493 | 02-15-27 | 573,000 | 601,440 | ||||||||||||
Johnson Controls International PLC | 1.750 | 09-15-30 | 1,035,000 | 1,028,986 | ||||||||||||
Owens Corning | 3.950 | 08-15-29 | 1,435,000 | 1,605,688 | ||||||||||||
Commercial services and supplies 0.2% | ||||||||||||||||
APX Group, Inc. (F) | 7.625 | 09-01-23 | 1,346,000 | 1,356,600 | ||||||||||||
Cimpress PLC (D) | 7.000 | 06-15-26 | 1,425,000 | 1,417,875 | ||||||||||||
Clean Harbors, Inc. (D) | 4.875 | 07-15-27 | 120,000 | 125,400 | ||||||||||||
Graphic Packaging International LLC (D) | 3.500 | 03-01-29 | 994,000 | 994,000 | ||||||||||||
Harsco Corp. (D) | 5.750 | 07-31-27 | 200,000 | 204,500 | ||||||||||||
LSC Communications, Inc. (D)(G) | 8.750 | 10-15-23 | 1,058,000 | 158,700 | ||||||||||||
Prime Security Services Borrower LLC (D) | 3.375 | 08-31-27 | 192,000 | 185,280 | ||||||||||||
Prime Security Services Borrower LLC (D) | 6.250 | 01-15-28 | 567,000 | 572,942 | ||||||||||||
Williams Scotsman International, Inc. (D) | 4.625 | 08-15-28 | 219,000 | 222,592 | ||||||||||||
Construction and engineering 0.1% | ||||||||||||||||
AECOM | 5.125 | 03-15-27 | 1,340,000 | 1,465,558 | ||||||||||||
MasTec, Inc. (D) | 4.500 | 08-15-28 | 577,000 | 592,868 | ||||||||||||
Picasso Finance Sub, Inc. (D) | 6.125 | 06-15-25 | 106,000 | 111,788 | ||||||||||||
Tutor Perini Corp. (D) | 6.875 | 05-01-25 | 200,000 | 190,000 | ||||||||||||
Industrial conglomerates 0.1% | ||||||||||||||||
General Electric Company | 4.250 | 05-01-40 | 1,689,000 | 1,770,190 | ||||||||||||
General Electric Company | 5.550 | 01-05-26 | 2,343,000 | 2,753,656 | ||||||||||||
Machinery 0.1% | ||||||||||||||||
Clark Equipment Company (D) | 5.875 | 06-01-25 | 125,000 | 130,000 | ||||||||||||
Flowserve Corp. | 3.500 | 10-01-30 | 844,000 | 839,993 | ||||||||||||
Hillenbrand, Inc. | 5.750 | 06-15-25 | 282,000 | 299,625 | ||||||||||||
JB Poindexter & Company, Inc. (D) | 7.125 | 04-15-26 | 419,000 | 445,317 | ||||||||||||
Otis Worldwide Corp. | 2.056 | 04-05-25 | 1,683,000 | 1,768,497 | ||||||||||||
Vertical US Newco, Inc. (D) | 5.250 | 07-15-27 | 366,000 | 376,687 | ||||||||||||
Professional services 0.2% | ||||||||||||||||
CoStar Group, Inc. (D) | 2.800 | 07-15-30 | 2,009,000 | 2,060,909 | ||||||||||||
IHS Markit, Ltd. (D) | 4.000 | 03-01-26 | 1,099,000 | 1,223,649 | ||||||||||||
IHS Markit, Ltd. (D) | 4.750 | 02-15-25 | 455,000 | 513,013 |
29 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Industrials (continued) | ||||||||||||||||
Professional services (continued) | ||||||||||||||||
IHS Markit, Ltd. | 4.750 | 08-01-28 | 688,000 | $807,478 | ||||||||||||
Road and rail 0.1% | ||||||||||||||||
Uber Technologies, Inc. (D) | 7.500 | 05-15-25 | 1,178,000 | 1,238,373 | ||||||||||||
Uber Technologies, Inc. (D) | 7.500 | 09-15-27 | 1,798,000 | 1,879,360 | ||||||||||||
Trading companies and distributors 0.3% | ||||||||||||||||
AerCap Ireland Capital DAC | 2.875 | 08-14-24 | 1,928,000 | 1,888,397 | ||||||||||||
Ahern Rentals, Inc. (D) | 7.375 | 05-15-23 | 839,000 | 539,058 | ||||||||||||
Air Lease Corp. | 3.625 | 12-01-27 | 570,000 | 569,391 | ||||||||||||
Aircastle, Ltd. | 5.500 | 02-15-22 | 665,000 | 683,167 | ||||||||||||
Ashtead Capital, Inc. (D) | 4.250 | 11-01-29 | 747,000 | 797,236 | ||||||||||||
Ashtead Capital, Inc. (D) | 4.375 | 08-15-27 | 840,000 | 879,900 | ||||||||||||
Avolon Holdings Funding, Ltd. (D) | 5.125 | 10-01-23 | 965,000 | 979,851 | ||||||||||||
H&E Equipment Services, Inc. | 5.625 | 09-01-25 | 307,000 | 318,513 | ||||||||||||
United Rentals North America, Inc. | 3.875 | 11-15-27 | 785,000 | 813,456 | ||||||||||||
United Rentals North America, Inc. | 3.875 | 02-15-31 | 496,000 | 500,960 | ||||||||||||
United Rentals North America, Inc. | 4.875 | 01-15-28 | 1,570,000 | 1,648,500 | ||||||||||||
Information technology 2.6% | 77,784,803 | |||||||||||||||
Communications equipment 0.2% | ||||||||||||||||
Motorola Solutions, Inc. | 2.300 | 11-15-30 | 1,824,000 | 1,811,619 | ||||||||||||
Motorola Solutions, Inc. | 4.600 | 02-23-28 | 2,540,000 | 2,961,220 | ||||||||||||
Motorola Solutions, Inc. | 4.600 | 05-23-29 | 343,000 | 402,800 | ||||||||||||
Telefonaktiebolaget LM Ericsson | 4.125 | 05-15-22 | 1,730,000 | 1,786,225 | ||||||||||||
IT services 0.2% | ||||||||||||||||
Gartner, Inc. (D) | 3.750 | 10-01-30 | 257,000 | 262,808 | ||||||||||||
Gartner, Inc. (D) | 4.500 | 07-01-28 | 238,000 | 248,462 | ||||||||||||
PayPal Holdings, Inc. | 2.850 | 10-01-29 | 2,233,000 | 2,428,147 | ||||||||||||
Sabre GLBL, Inc. (D) | 7.375 | 09-01-25 | 285,000 | 290,700 | ||||||||||||
Tempo Acquisition LLC (D) | 6.750 | 06-01-25 | 261,000 | 264,850 | ||||||||||||
VeriSign, Inc. | 4.750 | 07-15-27 | 525,000 | 556,500 | ||||||||||||
VeriSign, Inc. | 5.250 | 04-01-25 | 565,000 | 633,040 | ||||||||||||
Visa, Inc. | 2.700 | 04-15-40 | 735,000 | 783,078 | ||||||||||||
Semiconductors and semiconductor equipment 1.4% |
| |||||||||||||||
Applied Materials, Inc. | 2.750 | 06-01-50 | 787,000 | 799,107 | ||||||||||||
Broadcom Corp. | 3.125 | 01-15-25 | 1,180,000 | 1,261,029 | ||||||||||||
Broadcom, Inc. | 4.700 | 04-15-25 | 1,925,000 | 2,187,442 | ||||||||||||
Broadcom, Inc. | 4.750 | 04-15-29 | 5,899,000 | 6,838,268 | ||||||||||||
Broadcom, Inc. | 5.000 | 04-15-30 | 2,424,000 | 2,859,162 | ||||||||||||
KLA Corp. | 4.100 | 03-15-29 | 1,095,000 | 1,298,696 | ||||||||||||
Lam Research Corp. | 3.750 | 03-15-26 | 1,415,000 | 1,624,307 | ||||||||||||
Lam Research Corp. | 4.875 | 03-15-49 | 1,038,000 | 1,435,950 | ||||||||||||
Marvell Technology Group, Ltd. | 4.875 | 06-22-28 | 1,965,000 | 2,298,020 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 30 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Information technology (continued) | ||||||||||||||||
Semiconductors and semiconductor equipment (continued) | ||||||||||||||||
Microchip Technology, Inc. (D) | 4.250 | 09-01-25 | 301,000 | $311,876 | ||||||||||||
Microchip Technology, Inc. | 4.333 | 06-01-23 | 3,125,000 | 3,367,630 | ||||||||||||
Micron Technology, Inc. | 2.497 | 04-24-23 | 2,152,000 | 2,238,927 | ||||||||||||
Micron Technology, Inc. | 4.185 | 02-15-27 | 3,554,000 | 4,009,760 | ||||||||||||
Micron Technology, Inc. | 4.975 | 02-06-26 | 612,000 | 711,920 | ||||||||||||
Micron Technology, Inc. | 5.327 | 02-06-29 | 3,292,000 | 3,956,941 | ||||||||||||
NVIDIA Corp. | 2.850 | 04-01-30 | 1,480,000 | 1,638,458 | ||||||||||||
NXP BV (D) | 3.400 | 05-01-30 | 397,000 | 436,656 | ||||||||||||
NXP BV (D) | 3.875 | 06-18-26 | 1,025,000 | 1,150,937 | ||||||||||||
NXP BV (D) | 4.625 | 06-01-23 | 2,400,000 | 2,631,244 | ||||||||||||
NXP BV (D) | 4.875 | 03-01-24 | 1,230,000 | 1,377,882 | ||||||||||||
Qorvo, Inc. (D) | 3.375 | 04-01-31 | 680,000 | 688,500 | ||||||||||||
Software 0.4% | ||||||||||||||||
Autodesk, Inc. | 2.850 | 01-15-30 | 523,000 | 572,695 | ||||||||||||
Infor, Inc. (D) | 1.750 | 07-15-25 | 413,000 | 424,647 | ||||||||||||
j2 Global, Inc. (D) | 4.625 | 10-15-30 | 828,000 | 836,570 | ||||||||||||
Logan Merger Sub, Inc. (D) | 5.500 | 09-01-27 | 600,000 | 608,250 | ||||||||||||
Microsoft Corp. | 2.525 | 06-01-50 | 1,185,000 | 1,201,215 | ||||||||||||
Oracle Corp. | 2.950 | 04-01-30 | 3,386,000 | 3,723,100 | ||||||||||||
PTC, Inc. (D) | 4.000 | 02-15-28 | 196,000 | 202,615 | ||||||||||||
ServiceNow, Inc. | 1.400 | 09-01-30 | 1,919,000 | 1,852,598 | ||||||||||||
VMware, Inc. | 4.500 | 05-15-25 | 1,518,000 | 1,718,276 | ||||||||||||
Technology hardware, storage and peripherals 0.4% | ||||||||||||||||
CDW LLC | 3.250 | 02-15-29 | 460,000 | 459,425 | ||||||||||||
Dell International LLC (D) | 4.900 | 10-01-26 | 2,220,000 | 2,527,824 | ||||||||||||
Dell International LLC (D) | 5.300 | 10-01-29 | 2,045,000 | 2,366,817 | ||||||||||||
Dell International LLC (D) | 5.850 | 07-15-25 | 463,000 | 543,661 | ||||||||||||
Dell International LLC (D) | 8.350 | 07-15-46 | 1,386,000 | 1,886,150 | ||||||||||||
Seagate HDD Cayman (D) | 4.091 | 06-01-29 | 1,509,000 | 1,624,206 | ||||||||||||
Seagate HDD Cayman (D) | 4.125 | 01-15-31 | 1,565,000 | 1,684,593 | ||||||||||||
Materials 1.0% | 29,930,511 | |||||||||||||||
Chemicals 0.4% | ||||||||||||||||
Braskem Netherlands Finance BV (8.500% to 10-24-25, then 5 Year CMT + 8.220%) (D) | 8.500 | 01-23-81 | 1,381,000 | 1,402,765 | ||||||||||||
Cydsa SAB de CV (D) | 6.250 | 10-04-27 | 1,415,000 | 1,405,803 | ||||||||||||
E.I. du Pont de Nemours and Company | 1.700 | 07-15-25 | 161,000 | 166,931 | ||||||||||||
E.I. du Pont de Nemours and Company | 2.300 | 07-15-30 | 610,000 | 637,247 | ||||||||||||
Methanex Corp. | 4.250 | 12-01-24 | 1,190,000 | 1,192,380 | ||||||||||||
Methanex Corp. | 5.250 | 12-15-29 | 1,247,000 | 1,263,493 | ||||||||||||
Nutrition & Biosciences, Inc. (D) | 1.832 | 10-15-27 | 536,000 | 536,779 | ||||||||||||
Nutrition & Biosciences, Inc. (D) | 2.300 | 11-01-30 | 1,068,000 | 1,074,041 |
31 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Materials (continued) | ||||||||||||||||
Chemicals (continued) | ||||||||||||||||
Orbia Advance Corp. SAB de CV (D) | 5.500 | 01-15-48 | 1,115,000 | $1,261,065 | ||||||||||||
Syngenta Finance NV (D) | 4.441 | 04-24-23 | 1,490,000 | 1,575,118 | ||||||||||||
Syngenta Finance NV (D) | 5.676 | 04-24-48 | 365,000 | 399,731 | ||||||||||||
WR Grace & Company (D) | 4.875 | 06-15-27 | 404,000 | 420,871 | ||||||||||||
Construction materials 0.1% | ||||||||||||||||
Cemex SAB de CV (D) | 5.200 | 09-17-30 | 1,176,000 | 1,242,315 | ||||||||||||
Cemex SAB de CV (D) | 7.375 | 06-05-27 | 900,000 | 991,359 | ||||||||||||
Standard Industries, Inc. (D) | 3.375 | 01-15-31 | 438,000 | 426,320 | ||||||||||||
Standard Industries, Inc. (D) | 5.000 | 02-15-27 | 196,000 | 202,125 | ||||||||||||
US Concrete, Inc. (D) | 5.125 | 03-01-29 | 452,000 | 459,910 | ||||||||||||
Vulcan Materials Company | 3.500 | 06-01-30 | 1,228,000 | 1,376,297 | ||||||||||||
Containers and packaging 0.1% | ||||||||||||||||
Ardagh Packaging Finance PLC (D) | 6.000 | 02-15-25 | 850,000 | 878,688 | ||||||||||||
Graham Packaging Company, Inc. (D) | 7.125 | 08-15-28 | 74,000 | 77,330 | ||||||||||||
Mauser Packaging Solutions Holding Company (D) | 8.500 | 04-15-24 | 139,000 | 145,255 | ||||||||||||
Owens-Brockway Glass Container, Inc. (D) | 6.625 | 05-13-27 | 452,000 | 484,770 | ||||||||||||
Reynolds Group Issuer, Inc. (D) | 4.000 | 10-15-27 | 1,279,000 | 1,298,185 | ||||||||||||
Metals and mining 0.2% | ||||||||||||||||
Anglo American Capital PLC (D) | 4.750 | 04-10-27 | 795,000 | 913,267 | ||||||||||||
Arconic Corp. (D) | 6.000 | 05-15-25 | 304,000 | 321,860 | ||||||||||||
Arconic Corp. (D) | 6.125 | 02-15-28 | 137,000 | 144,348 | ||||||||||||
Commercial Metals Company | 5.375 | 07-15-27 | 231,000 | 240,818 | ||||||||||||
CSN Islands XI Corp. (D) | 6.750 | 01-28-28 | 1,330,000 | 1,309,039 | ||||||||||||
First Quantum Minerals, Ltd. (D) | 6.875 | 03-01-26 | 450,000 | 446,625 | ||||||||||||
First Quantum Minerals, Ltd. (D) | 6.875 | 10-15-27 | 819,000 | 814,905 | ||||||||||||
First Quantum Minerals, Ltd. (D) | 7.250 | 04-01-23 | 290,000 | 291,450 | ||||||||||||
First Quantum Minerals, Ltd. (D) | 7.500 | 04-01-25 | 583,000 | 585,551 | ||||||||||||
JW Aluminum Continuous Cast Company (D) | 10.250 | 06-01-26 | 231,000 | 242,550 | ||||||||||||
Newmont Corp. | 2.800 | 10-01-29 | 620,000 | 666,424 | ||||||||||||
Steel Dynamics, Inc. | 3.250 | 01-15-31 | 208,000 | 224,461 | ||||||||||||
Paper and forest products 0.2% | ||||||||||||||||
Boise Cascade Company (D) | 4.875 | 07-01-30 | 153,000 | 163,546 | ||||||||||||
Georgia-Pacific LLC (D) | 2.300 | 04-30-30 | 3,595,000 | 3,758,639 | ||||||||||||
Inversiones CMPC SA (D) | 3.850 | 01-13-30 | 407,000 | 444,200 | ||||||||||||
Norbord, Inc. (D) | 6.250 | 04-15-23 | 415,000 | 444,050 | ||||||||||||
Real estate 1.0% | 30,217,753 | |||||||||||||||
Equity real estate investment trusts 1.0% | ||||||||||||||||
American Homes 4 Rent LP | 4.250 | 02-15-28 | 1,653,000 | 1,870,542 | ||||||||||||
American Tower Corp. | 2.400 | 03-15-25 | 1,005,000 | 1,063,238 | ||||||||||||
American Tower Corp. | 2.950 | 01-15-25 | 1,217,000 | 1,311,251 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 32 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Real estate (continued) | ||||||||||||||||
Equity real estate investment trusts (continued) | ||||||||||||||||
American Tower Corp. | 3.550 | 07-15-27 | 2,603,000 | $2,897,151 | ||||||||||||
American Tower Corp. | 3.800 | 08-15-29 | 885,000 | 1,005,941 | ||||||||||||
Crown Castle International Corp. | 2.250 | 01-15-31 | 2,072,000 | 2,083,445 | ||||||||||||
Crown Castle International Corp. | 3.300 | 07-01-30 | 287,000 | 312,359 | ||||||||||||
Crown Castle International Corp. | 3.650 | 09-01-27 | 2,307,000 | 2,563,731 | ||||||||||||
Crown Castle International Corp. | 4.150 | 07-01-50 | 255,000 | 290,484 | ||||||||||||
CyrusOne LP | 2.150 | 11-01-30 | 686,000 | 660,138 | ||||||||||||
CyrusOne LP | 3.450 | 11-15-29 | 1,401,000 | 1,490,334 | ||||||||||||
Equinix, Inc. | 1.550 | 03-15-28 | 1,575,000 | 1,569,180 | ||||||||||||
Equinix, Inc. | 1.800 | 07-15-27 | 456,000 | 462,669 | ||||||||||||
Equinix, Inc. | 3.200 | 11-18-29 | 2,163,000 | 2,348,433 | ||||||||||||
Equinix, Inc. | 5.375 | 05-15-27 | 1,028,000 | 1,120,757 | ||||||||||||
GLP Capital LP | 5.375 | 04-15-26 | 1,122,000 | 1,246,138 | ||||||||||||
Host Hotels & Resorts LP | 3.500 | 09-15-30 | 823,000 | 788,227 | ||||||||||||
SBA Communications Corp. (D) | 3.875 | 02-15-27 | 1,470,000 | 1,493,888 | ||||||||||||
SBA Tower Trust (D) | 2.836 | 01-15-25 | 1,172,000 | 1,241,526 | ||||||||||||
SBA Tower Trust (D) | 3.722 | 04-11-23 | 1,412,000 | 1,454,739 | ||||||||||||
Ventas Realty LP | 3.500 | 02-01-25 | 1,355,000 | 1,474,817 | ||||||||||||
VICI Properties LP (D) | 4.125 | 08-15-30 | 642,000 | 650,025 | ||||||||||||
VICI Properties LP (D) | 4.625 | 12-01-29 | 788,000 | 818,740 | ||||||||||||
Utilities 0.7% | 20,879,492 | |||||||||||||||
Electric utilities 0.3% | ||||||||||||||||
ABY Transmision Sur SA (D) | 6.875 | 04-30-43 | 508,778 | 677,946 | ||||||||||||
DPL, Inc. (D) | 4.125 | 07-01-25 | 628,000 | 656,260 | ||||||||||||
Emera US Finance LP | 3.550 | 06-15-26 | 797,000 | 883,949 | ||||||||||||
FirstEnergy Corp. | 2.650 | 03-01-30 | 675,000 | 658,911 | ||||||||||||
Instituto Costarricense de Electricidad (D) | 6.375 | 05-15-43 | 515,000 | 350,200 | ||||||||||||
Israel Electric Corp., Ltd. (D) | 6.875 | 06-21-23 | 300,000 | 342,608 | ||||||||||||
NRG Energy, Inc. (D) | 3.750 | 06-15-24 | 1,115,000 | 1,201,780 | ||||||||||||
Vistra Operations Company LLC (D) | 3.700 | 01-30-27 | 2,124,000 | 2,237,816 | ||||||||||||
Vistra Operations Company LLC (D) | 4.300 | 07-15-29 | 2,115,000 | 2,287,496 | ||||||||||||
Gas utilities 0.1% | ||||||||||||||||
AmeriGas Partners LP | 5.500 | 05-20-25 | 1,060,000 | 1,134,200 | ||||||||||||
Infraestructura Energetica Nova SAB de CV (D) | 4.750 | 01-15-51 | 2,056,000 | 1,931,612 | ||||||||||||
Independent power and renewable electricity producers 0.2% | ||||||||||||||||
AES Panama Generation Holdings SRL (D) | 4.375 | 05-31-30 | 936,000 | 991,870 | ||||||||||||
Greenko Dutch BV (D) | 4.875 | 07-24-22 | 740,000 | 742,220 | ||||||||||||
Greenko Dutch BV (D) | 5.250 | 07-24-24 | 375,000 | 384,743 | ||||||||||||
LLPL Capital Pte, Ltd. (D) | 6.875 | 02-04-39 | 140,850 | 161,323 | ||||||||||||
NextEra Energy Capital Holdings, Inc. | 3.550 | 05-01-27 | 2,761,000 | 3,098,153 | ||||||||||||
NextEra Energy Operating Partners LP (D) | 3.875 | 10-15-26 | 826,000 | 855,195 |
33 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Utilities (continued) | ||||||||||||||||
Independent power and renewable electricity producers (continued) | ||||||||||||||||
NextEra Energy Operating Partners LP (D) | 4.500 | 09-15-27 | 255,000 | $278,588 | ||||||||||||
Multi-utilities 0.1% | ||||||||||||||||
Dominion Energy, Inc. | 3.375 | 04-01-30 | 966,000 | 1,086,930 | ||||||||||||
NiSource, Inc. | 3.600 | 05-01-30 | 808,000 | 917,692 | ||||||||||||
Municipal bonds 0.1% | $3,098,148 | |||||||||||||||
(Cost $3,173,805) | ||||||||||||||||
New Jersey Transportation Trust Fund Authority | 4.081 | 06-15-39 | 1,198,000 | 1,131,008 | ||||||||||||
New Jersey Transportation Trust Fund Authority | 4.131 | 06-15-42 | 95,000 | 88,600 | ||||||||||||
State Board of Administration Finance Corp. (Florida) | 1.705 | 07-01-27 | 1,871,000 | 1,878,540 | ||||||||||||
Collateralized mortgage obligations 2.1% | $61,715,274 | |||||||||||||||
(Cost $64,401,508) | ||||||||||||||||
Commercial and residential 1.4% | 42,416,074 | |||||||||||||||
AOA Mortgage Trust | 3.010 | 12-13-29 | 290,000 | 288,465 | ||||||||||||
Arroyo Mortgage Trust | 3.763 | 04-25-48 | 981,853 | 992,450 | ||||||||||||
Series 2019-2, Class A1 (D)(H) | 3.347 | 04-25-49 | 832,464 | 855,473 | ||||||||||||
Series 2019-3, Class A1 (D)(H) | 2.962 | 10-25-48 | 461,486 | 473,222 | ||||||||||||
BAMLL Commercial Mortgage Securities Trust | 3.719 | 11-05-32 | 575,000 | 426,009 | ||||||||||||
Barclays Commercial Mortgage Trust | 3.043 | 11-15-52 | 665,000 | 705,200 | ||||||||||||
BBCMS Mortgage Trust | 2.690 | 02-15-53 | 537,000 | 563,043 | ||||||||||||
BBCMS Trust | 3.990 | 09-15-32 | 385,000 | 390,741 | ||||||||||||
Series 2015-SRCH, Class D (D)(H) | 4.957 | 08-10-35 | 840,000 | 911,354 | ||||||||||||
Benchmark Mortgage Trust | 3.001 | 08-15-52 | 905,000 | 957,085 | ||||||||||||
Series 2019-B13, Class A2 | 2.889 | 08-15-57 | 780,000 | 822,696 | ||||||||||||
Series 2019-B14, Class A2 | 2.915 | 12-15-62 | 1,054,000 | 1,116,813 | ||||||||||||
BRAVO Residential Funding Trust | 2.666 | 07-25-59 | 320,176 | 326,892 | ||||||||||||
Bunker Hill Loan Depositary Trust | 3.613 | 10-26-48 | 105,393 | 109,288 | ||||||||||||
BWAY Mortgage Trust | 0.896 | 01-10-35 | 7,015,000 | 75,767 | ||||||||||||
BX Commercial Mortgage Trust Series 2018-BIOA, Class D (1 month | 1.469 | 03-15-37 | 1,075,000 | 1,058,182 | ||||||||||||
Series 2020-VKNG, Class A (1 month | 1.078 | 10-15-37 | 1,629,000 | 1,629,317 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 34 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Commercial and residential (continued) | ||||||||||||||||
CAMB Commercial Mortgage Trust Series 2019-LIFE, Class D (1 month | 1.898 | 12-15-37 | 230,000 | $229,798 | ||||||||||||
Series 2019-LIFE, Class F (1 month | 2.698 | 12-15-37 | 705,000 | 671,476 | ||||||||||||
CGDBB Commercial Mortgage Trust Series 2017-BIOC, Class E (1 month LIBOR + 2.150%) (B)(D) | 2.298 | 07-15-32 | 776,512 | 769,193 | ||||||||||||
Citigroup Commercial Mortgage Trust | 3.341 | 05-10-36 | 798,000 | 846,345 | ||||||||||||
Series 2019-SMRT, Class A (D) | 4.149 | 01-10-36 | 260,000 | 279,543 | ||||||||||||
COLT Mortgage Loan Trust | 3.337 | 05-25-49 | 250,521 | 252,476 | ||||||||||||
Series 2020-1, Class A1 (D)(H) | 2.488 | 02-25-50 | 539,876 | 544,465 | ||||||||||||
COLT Trust | 1.390 | 01-25-65 | 2,707,948 | 2,706,656 | ||||||||||||
Commercial Mortgage Trust (Cantor Fitzgerald/Deutsche Bank AG) Series 2012-CR2, Class XA IO | 1.625 | 08-15-45 | 3,706,239 | 76,482 | ||||||||||||
Series 2012-CR3, Class XA IO | 1.848 | 10-15-45 | 5,354,027 | 141,091 | ||||||||||||
Series 2014-CR15, Class XA IO | 0.932 | 02-10-47 | 5,605,038 | 132,935 | ||||||||||||
Series 2014-CR20, Class A3 | 3.326 | 11-10-47 | 1,140,000 | 1,211,129 | ||||||||||||
Commercial Mortgage Trust | 0.443 | 05-10-51 | 9,654,221 | 286,286 | ||||||||||||
Commercial Mortgage Trust (Deutsche Bank AG) | 4.394 | 08-10-30 | 880,000 | 908,043 | ||||||||||||
Series 2017-PANW, Class A (D) | 3.244 | 10-10-29 | 305,000 | 318,585 | ||||||||||||
Series 2020-CBM, Class A2 (D) | 2.896 | 02-10-37 | 987,000 | 983,508 | ||||||||||||
Credit Suisse Mortgage Capital Certificates | 2.573 | 07-25-49 | 787,556 | 801,997 | ||||||||||||
Series 2019-ICE4, Class D (1 month | 1.748 | 05-15-36 | 1,390,000 | 1,379,660 | ||||||||||||
Series 2020-AFC1, Class A1 (D)(H) | 2.240 | 02-25-50 | 685,622 | 693,934 | ||||||||||||
Series 2020-NET, Class A (D) | 2.257 | 08-15-37 | 320,000 | 328,418 | ||||||||||||
GCAT Trust | 2.985 | 02-25-59 | 975,363 | 990,429 | ||||||||||||
Series 2020-NQM1, Class A1 (D) | 2.247 | 01-25-60 | 1,167,608 | 1,189,834 | ||||||||||||
GS Mortgage Securities Trust | 3.805 | 10-10-35 | 320,000 | 331,902 | ||||||||||||
Series 2016-RENT, Class D (D)(H) | 4.067 | 02-10-29 | 630,000 | 626,495 | ||||||||||||
Series 2017-485L, Class C (D)(H) | 3.982 | 02-10-37 | 250,000 | 258,702 | ||||||||||||
Series 2019-GC40, Class A2 | 2.971 | 07-10-52 | 845,000 | 895,579 | ||||||||||||
Series 2020-UPTN, Class A (D) | 2.751 | 02-10-37 | 650,000 | 659,545 | ||||||||||||
GS Mortgage-Backed Securities Trust | 1.382 | 09-27-60 | 757,377 | 758,797 | ||||||||||||
IMT Trust | 3.478 | 06-15-34 | 330,000 | 350,207 | ||||||||||||
Series 2017-APTS, Class CFX (D)(H) | 3.497 | 06-15-34 | 400,000 | 395,969 |
35 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Commercial and residential (continued) | ||||||||||||||||
Irvine Core Office Trust | ||||||||||||||||
Series 2013-IRV, Class A2 (D)(H) | 3.173 | 05-15-48 | 1,370,000 | $1,429,056 | ||||||||||||
JPMBB Commercial Mortgage Securities Trust | ||||||||||||||||
Series 2016-C1, Class A4 | 3.311 | 03-15-49 | 300,000 | 329,629 | ||||||||||||
JPMorgan Chase Commercial Mortgage Securities Trust |
| |||||||||||||||
Series 2012-HSBC, Class XA IO (D) | 1.431 | 07-05-32 | 5,883,115 | 118,275 | ||||||||||||
Series 2020-NNN, Class AFX (D) | 2.812 | 01-16-37 | 848,000 | 877,821 | ||||||||||||
KNDL Mortgage Trust | ||||||||||||||||
Series 2019-KNSQ, Class D (1 month | ||||||||||||||||
LIBOR + 1.350%) (B)(D) | 1.498 | 05-15-36 | 350,000 | 344,069 | ||||||||||||
MFA Trust | ||||||||||||||||
Series 2020-NQM1, Class A1 (D)(H) | 1.479 | 08-25-49 | 549,118 | 551,798 | ||||||||||||
Morgan Stanley Capital I Trust | ||||||||||||||||
Series 2017-CLS, Class D (1 month | ||||||||||||||||
LIBOR + 1.400%) (B)(D) | 1.548 | 11-15-34 | 850,000 | 844,824 | ||||||||||||
MSCG Trust | ||||||||||||||||
Series 2016-SNR, Class D (D) | 6.550 | 11-15-34 | 349,515 | 345,194 | ||||||||||||
Natixis Commercial Mortgage Securities Trust | ||||||||||||||||
Series 2018-285M, Class D (D)(H) | 3.790 | 11-15-32 | 464,000 | 463,965 | ||||||||||||
Series 2018-ALXA, Class C (D)(H) | 4.316 | 01-15-43 | 380,000 | 395,834 | ||||||||||||
OBX Trust | ||||||||||||||||
Series 2020-EXP2, Class A3 (D)(H) | 2.500 | 05-25-60 | 1,102,172 | 1,119,901 | ||||||||||||
One Market Plaza Trust | ||||||||||||||||
Series 2017-1MKT, Class D (D) | 4.146 | 02-10-32 | 240,000 | 244,817 | ||||||||||||
Seasoned Credit Risk Transfer Trust | ||||||||||||||||
Series 2020-2, Class MA | 2.000 | 11-25-59 | 830,177 | 852,039 | ||||||||||||
Starwood Mortgage Residential Trust | ||||||||||||||||
Series 2018-IMC1, Class A1 (D)(H) | 3.793 | 03-25-48 | 148,924 | 149,752 | ||||||||||||
Series 2020-1, Class A1 (D)(H) | 2.275 | 02-25-50 | 802,183 | 816,228 | ||||||||||||
Series 2020-3, Class A1 (D)(H) | 1.486 | 04-25-65 | 532,807 | 534,069 | ||||||||||||
Verus Securitization Trust | ||||||||||||||||
Series 2020-5, Class A1 (D) | 1.218 | 05-25-65 | 915,000 | 914,901 | ||||||||||||
Wells Fargo Commercial Mortgage Trust | ||||||||||||||||
Series 2017-SMP, Class D (1 month | ||||||||||||||||
LIBOR + 1.650%) (B)(D) | 1.798 | 12-15-34 | 295,000 | 243,309 | ||||||||||||
WF-RBS Commercial Mortgage Trust | ||||||||||||||||
Series 2012-C9, Class XA IO (D) | 1.881 | 11-15-45 | 4,242,633 | 119,117 | ||||||||||||
U.S. Government Agency 0.7% | 19,299,200 | |||||||||||||||
Federal Home Loan Mortgage Corp. | ||||||||||||||||
Series K017, Class X1 IO | 1.286 | 12-25-21 | 4,599,374 | 41,070 | ||||||||||||
Series K021, Class X1 IO | 1.408 | 06-25-22 | 280,257 | 4,794 | ||||||||||||
Series K022, Class X1 IO | 1.184 | 07-25-22 | 9,997,599 | 154,501 | ||||||||||||
Series K040, Class A2 | 3.241 | 09-25-24 | 1,265,000 | 1,386,673 | ||||||||||||
Series KIR3, Class A1 | 3.038 | 08-25-27 | 1,420,000 | 1,549,070 | ||||||||||||
Government National Mortgage Association | ||||||||||||||||
Series 2012-114, Class IO | 0.711 | 01-16-53 | 1,674,517 | 53,443 | ||||||||||||
Series 2016-174, Class IO | 0.845 | 11-16-56 | 3,752,183 | 232,211 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 36 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
U.S. Government Agency (continued) | ||||||||||||||||
Series 2017-109, Class IO | 0.559 | 04-16-57 | 5,223,705 | $230,574 | ||||||||||||
Series 2017-124, Class IO | 0.675 | 01-16-59 | 5,360,758 | 282,896 | ||||||||||||
Series 2017-135, Class IO | 0.783 | 10-16-58 | 3,593,239 | 196,622 | ||||||||||||
Series 2017-140, Class IO | 0.561 | 02-16-59 | 3,227,549 | 159,957 | ||||||||||||
Series 2017-159, Class IO | 0.534 | 06-16-59 | 5,707,765 | 253,080 | ||||||||||||
Series 2017-169, Class IO | 0.699 | 01-16-60 | 8,502,010 | 467,329 | ||||||||||||
Series 2017-20, Class IO | 0.703 | 12-16-58 | 6,007,358 | 293,699 | ||||||||||||
Series 2017-22, Class IO | 0.758 | 12-16-57 | 1,757,082 | 101,141 | ||||||||||||
Series 2017-41, Class IO | 0.736 | 07-16-58 | 4,253,263 | 216,325 | ||||||||||||
Series 2017-46, Class IO | 0.623 | 11-16-57 | 5,427,957 | 270,313 | ||||||||||||
Series 2017-61, Class IO | 0.766 | 05-16-59 | 2,842,999 | 163,793 | ||||||||||||
Series 2018-158, Class IO | 0.692 | 05-16-61 | 4,752,896 | 316,758 | ||||||||||||
Series 2018-35, Class IO | 0.528 | 03-16-60 | 6,903,868 | 329,660 | ||||||||||||
Series 2018-43, Class IO | 0.573 | 05-16-60 | 10,063,630 | 497,249 | ||||||||||||
Series 2018-68, Class IO | 0.473 | 01-16-60 | 11,489,810 | 483,297 | ||||||||||||
Series 2018-69, Class IO | 0.570 | 04-16-60 | 8,722,515 | 469,122 | ||||||||||||
Series 2018-81, Class IO | 0.453 | 01-16-60 | 9,484,021 | 450,002 | ||||||||||||
Series 2018-9, Class IO | 0.544 | 01-16-60 | 11,010,802 | 563,565 | ||||||||||||
Series 2019-131, Class IO | 0.928 | 07-16-61 | 5,038,896 | 366,194 | ||||||||||||
Series 2020-100, Class IO | 0.896 | 05-16-62 | 5,292,440 | 441,731 | ||||||||||||
Series 2020-108, Class IO | 0.948 | 06-16-62 | 31,160,355 | 2,655,445 | ||||||||||||
Series 2020-114, Class IO | 0.930 | 09-16-62 | 14,532,822 | 1,238,148 | ||||||||||||
Series 2020-118, Class IO | 1.080 | 06-16-62 | 14,351,534 | 1,274,466 | ||||||||||||
Series 2020-119, Class IO | 0.820 | 08-16-62 | 6,287,782 | 502,165 | ||||||||||||
Series 2020-120, Class IO | 0.883 | 05-16-62 | 3,250,847 | 271,520 | ||||||||||||
Series 2020-137, Class IO | 0.911 | 09-16-62 | 16,432,875 | 1,415,470 | ||||||||||||
Series 2020-150, Class IO | 0.983 | 12-16-62 | 10,275,000 | 907,564 | ||||||||||||
Series 2020-92, Class IO | 1.017 | 02-16-62 | 11,863,824 | 1,059,353 | ||||||||||||
Asset backed securities 2.8% | $84,611,188 | |||||||||||||||
(Cost $83,177,124) | ||||||||||||||||
Asset backed securities 2.8% | 84,611,188 | |||||||||||||||
AMSR Trust | ||||||||||||||||
Series 2020-SFR4, Class A (D) | 1.355 | 11-17-37 | 2,181,000 | 2,176,892 | ||||||||||||
Applebee’s Funding LLC | ||||||||||||||||
Series 2019-1A, Class A2I (D) | 4.194 | 06-07-49 | 1,457,000 | 1,418,754 | ||||||||||||
Arbys Funding LLC | ||||||||||||||||
Series 2020-1A, Class A2 (D) | 3.237 | 07-30-50 | 1,525,178 | 1,557,466 | ||||||||||||
Avis Budget Rental Car Funding AESOP LLC | ||||||||||||||||
Series 2019-3A, Class A (D) | 2.360 | 03-20-26 | 1,356,000 | 1,392,118 | ||||||||||||
Series 2020-1A, Class A (D) | 2.330 | 08-20-26 | 867,000 | 886,979 | ||||||||||||
Bojangles Issuer LLC | ||||||||||||||||
Series 2020-1A, Class A2 (D) | 3.832 | 10-20-50 | 781,000 | 786,707 | ||||||||||||
BRE Grand Islander Timeshare Issuer LLC | ||||||||||||||||
Series 2019-A, Class A (D) | 3.280 | 09-26-33 | 412,685 | 423,678 |
37 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Asset backed securities (continued) | ||||||||||||||||
CARS-DB4 LP | ||||||||||||||||
Series 2020-1A, Class B1 (D) | 4.170 | 02-15-50 | 857,000 | $876,315 | ||||||||||||
CF Hippolyta LLC | ||||||||||||||||
Series 2020-1, Class A1 (D) | 1.690 | 07-15-60 | 1,682,101 | 1,699,566 | ||||||||||||
CLI Funding VI LLC | ||||||||||||||||
Series 2020-1A, Class A (D) | 2.080 | 09-18-45 | 1,319,500 | 1,314,709 | ||||||||||||
CoreVest American Finance Trust | ||||||||||||||||
Series 2019-3, Class A (D) | 2.705 | 10-15-52 | 505,917 | 533,440 | ||||||||||||
CWABS Asset-Backed Certificates Trust | ||||||||||||||||
Series 2004-10, Class AF5B | 4.421 | 02-25-35 | 81,630 | 81,627 | ||||||||||||
DB Master Finance LLC | ||||||||||||||||
Series 2017-1A, Class A2I (D) | 3.629 | 11-20-47 | 387,075 | 397,929 | ||||||||||||
Series 2017-1A, Class A2II (D) | 4.030 | 11-20-47 | 433,875 | 458,506 | ||||||||||||
Series 2019-1A, Class A2I (D) | 3.787 | 05-20-49 | 2,163,150 | 2,217,315 | ||||||||||||
Domino’s Pizza Master Issuer LLC | ||||||||||||||||
Series 2017-1A, Class A23 (D) | 4.118 | 07-25-47 | 1,319,200 | 1,413,589 | ||||||||||||
Driven Brands Funding LLC | ||||||||||||||||
Series 2015-1A, Class A2 (D) | 5.216 | 07-20-45 | 1,268,250 | 1,313,958 | ||||||||||||
Series 2020-2A, Class A2 (D) | 3.237 | 01-20-51 | 1,042,000 | 1,042,000 | ||||||||||||
FirstKey Homes Trust | ||||||||||||||||
Series 2020-SFR1, Class A (D) | 1.339 | 09-17-25 | 1,272,000 | 1,271,391 | ||||||||||||
Series 2020-SFR2, Class A (D) | 1.266 | 10-19-37 | 2,542,000 | 2,523,740 | ||||||||||||
Five Guys Funding LLC | ||||||||||||||||
Series 2017-1A, Class A2 (D) | 4.600 | 07-25-47 | 655,050 | 657,621 | ||||||||||||
FOCUS Brands Funding LLC | ||||||||||||||||
Series 2017-1A, Class A2I (D) | 3.857 | 04-30-47 | 366,700 | 351,273 | ||||||||||||
Ford Credit Auto Owner Trust | ||||||||||||||||
Series 2020-1, Class A (D) | 2.040 | 08-15-31 | 1,734,000 | 1,813,163 | ||||||||||||
Ford Credit Floorplan Master Owner Trust | ||||||||||||||||
Series 2019-2, Class A | 3.060 | 04-15-26 | 2,111,000 | 2,273,837 | ||||||||||||
Series 2020-2, Class A | 1.060 | 09-15-27 | 1,792,000 | 1,794,765 | ||||||||||||
GMF Floorplan Owner Revolving Trust | ||||||||||||||||
Series 2019-2, Class A (D) | 2.900 | 04-15-26 | 1,835,000 | 1,967,066 | ||||||||||||
Series 2020-1, Class A (D) | 0.680 | 08-15-25 | 935,000 | 935,784 | ||||||||||||
Golden Credit Card Trust | ||||||||||||||||
Series 2018-4A, Class A (D) | 3.440 | 08-15-25 | 1,675,000 | 1,811,007 | ||||||||||||
Hilton Grand Vacations Trust | ||||||||||||||||
Series 2017-AA, Class A (D) | 2.660 | 12-26-28 | 858,107 | 877,245 | ||||||||||||
Series 2018-AA, Class A (D) | 3.540 | 02-25-32 | 311,352 | 325,653 | ||||||||||||
Hyundai Auto Receivables Trust | ||||||||||||||||
Series 2020-B, Class A3 | 0.480 | 12-16-24 | 691,000 | 691,503 | ||||||||||||
Series 2020-B, Class A4 | 0.620 | 12-15-25 | 582,000 | 584,581 | ||||||||||||
Jack in the Box Funding LLC | ||||||||||||||||
Series 2019-1A, Class A23 (D) | 4.970 | 08-25-49 | 591,530 | 619,835 | ||||||||||||
Series 2019-1A, Class A2I (D) | 3.982 | 08-25-49 | 441,663 | 451,993 | ||||||||||||
Laurel Road Prime Student Loan Trust | ||||||||||||||||
Series 2019-A, Class A2FX (D) | 2.730 | 10-25-48 | 239,670 | 245,089 | ||||||||||||
MelTel Land Funding LLC | ||||||||||||||||
Series 2019-1A, Class A (D) | 3.768 | 04-15-49 | 501,601 | 521,281 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 38 |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Asset backed securities (continued) | ||||||||||||||||
Mill City Mortgage Loan Trust | ||||||||||||||||
Series 2018-3, Class A1 (D)(H) | 3.479 | 08-25-58 | 346,228 | $368,282 | ||||||||||||
MVW Owner Trust | ||||||||||||||||
Series 2015-1A, Class A (D) | 2.520 | 12-20-32 | 60,862 | 61,104 | ||||||||||||
Series 2018-1A, Class A (D) | 3.450 | 01-21-36 | 648,197 | 671,391 | ||||||||||||
Navient Private Education Loan Trust | ||||||||||||||||
Series 2016-AA, Class A2A (D) | 3.910 | 12-15-45 | 293,534 | 307,466 | ||||||||||||
Navient Private Education Refi Loan Trust | ||||||||||||||||
Series 2019-FA, Class A2 (D) | 2.600 | 08-15-68 | 1,644,000 | 1,697,313 | ||||||||||||
Navient Student Loan Trust | ||||||||||||||||
Series 2020-2A, Class A1A (D) | 1.320 | 08-26-69 | 1,192,000 | 1,190,278 | ||||||||||||
NRZ Excess Spread-Collateralized Notes | ||||||||||||||||
Series 2018-FNT1, Class A (D) | 3.610 | 05-25-23 | 440,410 | 440,352 | ||||||||||||
Series 2018-FNT2, Class A (D) | 3.790 | 07-25-54 | 256,712 | 251,557 | ||||||||||||
Series 2018-PLS1, Class A (D) | 3.193 | 01-25-23 | 138,553 | 138,922 | ||||||||||||
Series 2018-PLS2, Class A (D) | 3.265 | 02-25-23 | 778,889 | 778,809 | ||||||||||||
Oxford Finance Funding LLC | ||||||||||||||||
Series 2019-1A, Class A2 (D) | 4.459 | 02-15-27 | 937,000 | 971,115 | ||||||||||||
PFS Financing Corp. | ||||||||||||||||
Series 2020-E, Class A (D) | 1.220 | 10-15-25 | 1,026,000 | 1,029,831 | ||||||||||||
Progress Residential Trust | ||||||||||||||||
Series 2020-SFR1, Class A (D) | 1.732 | 04-17-37 | 887,000 | 896,076 | ||||||||||||
Renaissance Home Equity Loan Trust | ||||||||||||||||
Series 2005-2, Class AF4 | 4.934 | 08-25-35 | 307,779 | 318,215 | ||||||||||||
Santander Revolving Auto Loan Trust | ||||||||||||||||
Series 2019-A, Class A (D) | 2.510 | 01-26-32 | 1,880,000 | 1,992,917 | ||||||||||||
SCF Equipment Leasing LLC | ||||||||||||||||
Series 2019-1A, Class A2 (D) | 3.230 | 10-20-24 | 372,000 | 373,332 | ||||||||||||
Sesac Finance LLC | ||||||||||||||||
Series 2019-1, Class A2 (D) | 5.216 | 07-25-49 | 1,726,150 | 1,826,974 | ||||||||||||
Sierra Timeshare Receivables Funding LLC | ||||||||||||||||
Series 2019-1A, Class A (D) | 3.200 | 01-20-36 | 271,597 | 278,542 | ||||||||||||
SMB Private Education Loan Trust | ||||||||||||||||
Series 2015-C, Class A2A (D) | 2.750 | 07-15-27 | 192,170 | 194,926 | ||||||||||||
Series 2019-B, Class A2A (D) | 2.840 | 06-15-37 | 1,636,000 | 1,715,972 | ||||||||||||
Series 2020-PTA, Class A2A (D) | 1.600 | 09-15-54 | 788,000 | 789,115 | ||||||||||||
Sonic Capital LLC | ||||||||||||||||
Series 2020-1A, Class A2I (D) | 3.845 | 01-20-50 | 1,093,660 | 1,149,120 | ||||||||||||
Sunbird Engine Finance LLC | ||||||||||||||||
Series 2020-1A, Class A (D) | 3.671 | 02-15-45 | 545,766 | 475,340 | ||||||||||||
Taco Bell Funding LLC | ||||||||||||||||
Series 2018-1A, Class A2I (D) | 4.318 | 11-25-48 | 1,179,983 | 1,198,862 | ||||||||||||
Towd Point Mortgage Trust | ||||||||||||||||
Series 2015-1, Class A5 (D)(H) | 3.583 | 10-25-53 | 280,000 | 293,268 | ||||||||||||
Series 2015-2, Class 1M2 (D)(H) | 3.577 | 11-25-60 | 815,000 | 857,639 | ||||||||||||
Series 2017-1, Class A1 (D)(H) | 2.750 | 10-25-56 | 523,755 | 536,786 | ||||||||||||
Series 2017-2, Class A1 (D)(H) | 2.750 | 04-25-57 | 144,299 | 148,138 | ||||||||||||
Series 2018-1, Class A1 (D)(H) | 3.000 | 01-25-58 | 312,364 | 325,923 | ||||||||||||
Series 2018-3, Class A1 (D)(H) | 3.750 | 05-25-58 | 618,220 | 658,732 |
39 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Asset backed securities (continued) | ||||||||||||||||
Series 2018-4, Class A1 (D)(H) | 3.000 | 06-25-58 | 1,248,133 | $1,331,480 | ||||||||||||
Series 2018-5, Class A1A (D)(H) | 3.250 | 07-25-58 | 199,407 | 208,626 | ||||||||||||
Series 2018-6, Class A1A (D)(H) | 3.750 | 03-25-58 | 1,154,386 | 1,218,061 | ||||||||||||
Series 2019-1, Class A1 (D)(H) | 3.750 | 03-25-58 | 496,123 | 531,298 | ||||||||||||
Series 2019-4, Class A1 (D)(H) | 2.900 | 10-25-59 | 986,285 | 1,045,362 | ||||||||||||
Series 2020-4, Class A1 (D) | 1.750 | 10-25-60 | 1,350,000 | 1,374,236 | ||||||||||||
Toyota Auto Loan Extended Note Trust | ||||||||||||||||
Series 2019-1A, Class A (D) | 2.560 | 11-25-31 | 3,603,000 | 3,844,715 | ||||||||||||
Series 2020-1A, Class A (D) | 1.350 | 05-25-33 | 947,000 | 969,928 | ||||||||||||
Toyota Auto Receivables Owner Trust | ||||||||||||||||
Series 2020-C, Class A3 | 0.440 | 10-15-24 | 785,000 | 786,643 | ||||||||||||
Series 2020-C, Class A4 | 0.570 | 10-15-25 | 589,000 | 589,248 | ||||||||||||
Triton Container Finance VIII LLC | ||||||||||||||||
Series 2020-1A, Class A (D) | 2.110 | 09-20-45 | 2,555,768 | 2,554,319 | ||||||||||||
Vantage Data Centers LLC | ||||||||||||||||
Series 2020-1A, Class A2 (D) | 1.645 | 09-15-45 | 1,567,000 | 1,556,903 | ||||||||||||
Series 2020-2A, Class A2 (D) | 1.992 | 09-15-45 | 1,035,000 | 1,033,759 | ||||||||||||
Verizon Owner Trust | ||||||||||||||||
Series 2020-B, Class A | 0.470 | 02-20-25 | 2,209,000 | 2,210,998 | ||||||||||||
VR Funding LLC | ||||||||||||||||
Series 2020-1A, Class A (D) | 2.790 | 11-15-50 | 2,198,000 | 2,065,305 | ||||||||||||
VSE VOI Mortgage LLC | ||||||||||||||||
Series 2017-A, Class A (D) | 2.330 | 03-20-35 | 334,328 | 339,138 | ||||||||||||
Westgate Resorts LLC | ||||||||||||||||
Series 2017-1A, Class A (D) | 3.050 | 12-20-30 | 151,757 | 152,235 | ||||||||||||
Westlake Automobile Receivables Trust | ||||||||||||||||
Series 2019-1A, Class C (D) | 3.450 | 03-15-24 | 784,000 | 801,897 | ||||||||||||
Willis Engine Structured Trust V | ||||||||||||||||
Series 2020-A, Class A (D) | 3.228 | 03-15-45 | 424,435 | 352,365 | ||||||||||||
Shares | Value | |||||||||||||||
Warrants 0.0% | $32,878 | |||||||||||||||
(Cost $ 0) | ||||||||||||||||
Stearns LLC (Expiration Date: 11-5-39) (A)(I)(J) | 20,533 | 32,878 | ||||||||||||||
Yield* (%) | Maturity date | Par value^ | Value | |||||||||||||
Short-term investments 1.2% | $36,614,291 | |||||||||||||||
(Cost $ 36,614,376) | ||||||||||||||||
U.S. Government Agency 0.1% | 4,705,000 | |||||||||||||||
Federal Agricultural Mortgage Corp. | ||||||||||||||||
Discount Note | 0.010 | 11-02-20 | 4,705,000 | 4,705,000 | ||||||||||||
Yield (%) | Shares | Value | ||||||||||||||
Short-term funds 1.1% | 31,909,291 | |||||||||||||||
Federated Government Obligations Fund, Institutional Class |
| 0.0100 | (K) | 30,908,746 | 30,908,746 | |||||||||||
John Hancock Collateral Trust (L) | 0.2508 | (K) | 99,969 | 1,000,545 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 40 |
Table of Contents
|
Total investments (Cost $2,319,489,816) 100.2% | $
| 2,966,050,444
|
| |
Other assets and liabilities, net (0.2%)
| (5,282,411 | ) | ||
Total net assets 100.0%
| $ | 2,960,768,033 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
^All par values are denominated in U.S. dollars unless otherwise indicated.
Security Abbreviations and Legend
ADR | American Depositary Receipt | |
CMT | Constant Maturity Treasury | |
ICE | Intercontinental Exchange | |
IO | Interest-Only Security - (Interest Tranche of Stripped Mortgage Pool). Rate shown is the annualized yield at the end of the period. | |
LIBOR | London Interbank Offered Rate | |
PIK | Pay-in-Kind Security - Represents a payment-in-kind which may pay interest in additional par and/or cash. Rates shown are the current rate and most recent payment rate. | |
SOFR | Secured Overnight Financing Rate | |
(A) | Non-income producing security. | |
(B) | Variable rate obligation. The coupon rate shown represents the rate at period end. | |
(C) | Security purchased or sold on a when-issued or delayed delivery basis. | |
(D) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $358,313,619 or 12.1% of the fund’s net assets as of 10-31-20. | |
(E) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. | |
(F) | All or a portion of this security is on loan as of 10-31-20. | |
(G) | Non-income producing - Issuer is in default. | |
(H) | Variable or floating rate security, the interest rate of which adjusts periodically based on a weighted average of interest rates and prepayments on the underlying pool of assets. The interest rate shown is the current rate as of period end. | |
(I) | 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. | |
(J) | Strike price and/or expiration date not available. | |
(K) | The rate shown is the annualized seven-day yield as of 10-31-20. | |
(L) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. | |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $2,331,871,693. Net unrealized appreciation aggregated to $634,178,751, of which $700,120,176 related to gross unrealized appreciation and $65,941,425 related to gross unrealized depreciation.
41 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 |
| |||
Assets | ||||
Unaffiliated investments, at value (Cost $2,318,489,185) including $981,306 of securities loaned | $2,965,049,899 | |||
Affiliated investments, at value (Cost $1,000,631) | 1,000,545 | |||
Total investments, at value (Cost $2,319,489,816) | 2,966,050,444 | |||
Dividends and interest receivable | 10,977,135 | |||
Receivable for fund shares sold | 14,390,905 | |||
Receivable for investments sold | 7,765 | |||
Receivable for delayed delivery securities sold | 17,764,753 | |||
Receivable for securities lending income | 307 | |||
Other assets | 166,478 | |||
Total assets | 3,009,357,787 | |||
Liabilities | ||||
Due to custodian | 375,368 | |||
Payable for investments purchased | 6,174,524 | |||
Payable for delayed delivery securities purchased | 35,640,999 | |||
Payable for fund shares repurchased | 4,458,270 | |||
Payable upon return of securities loaned | 1,000,636 | |||
Payable to affiliates | ||||
Accounting and legal services fees | 112,612 | |||
Transfer agent fees | 261,687 | |||
Distribution and service fees | 280,135 | |||
Other liabilities and accrued expenses | 285,523 | |||
Total liabilities | 48,589,754 | |||
Net assets | $2,960,768,033 | |||
Net assets consist of | ||||
Paid-in capital | $2,307,575,837 | |||
Total distributable earnings (loss) | 653,192,196 | |||
Net assets | $2,960,768,033 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 42 |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 (continued) | ||||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class A ($1,617,542,314 ÷ 71,859,181 shares)1 | $ | 22.51 | ||
Class C ($314,171,880 ÷ 13,978,616 shares)1 | $ | 22.48 | ||
Class I ($625,933,704 ÷ 27,837,449 shares) | $ | 22.49 | ||
Class R2 ($11,237,602 ÷ 500,092 shares) | $ | 22.47 | ||
Class R4 ($23,360,000 ÷ 1,032,734 shares) | $ | 22.62 | ||
Class R5 ($2,221,753 ÷ 98,393 shares) | $ | 22.58 | ||
Class R6 ($366,300,780 ÷ 16,264,603 shares) | $ | 22.52 | ||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95.5%)2 | $ | 23.57 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
43 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20 |
| |||
Investment income | ||||
Interest | $34,053,702 | |||
Dividends | 24,444,797 | |||
Securities lending | 38,626 | |||
Less foreign taxes withheld | (350,352 | ) | ||
Total investment income | 58,186,773 | |||
Expenses | ||||
Investment management fees | 14,762,658 | |||
Distribution and service fees | 7,496,952 | |||
Accounting and legal services fees | 481,801 | |||
Transfer agent fees | 2,756,259 | |||
Trustees’ fees | 38,010 | |||
Custodian fees | 333,154 | |||
State registration fees | 263,302 | |||
Printing and postage | 132,099 | |||
Professional fees | 114,650 | |||
Other | 115,713 | |||
Total expenses | 26,494,598 | |||
Less expense reductions | (192,813 | ) | ||
Net expenses | 26,301,785 | |||
Net investment income | 31,884,988 | |||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | 14,285,144 | |||
Affiliated investments | 3,474 | |||
14,288,618 | ||||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 185,361,778 | |||
Affiliated investments | (86 | ) | ||
185,361,692 | ||||
Net realized and unrealized gain | 199,650,310 | |||
Increase in net assets from operations | $231,535,298 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 44 |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS |
Year ended 10-31-20 | Year ended 10-31-19 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income | $31,884,988 | $30,582,077 | ||||||
Net realized gain | 14,288,618 | 17,678,865 | ||||||
Change in net unrealized appreciation (depreciation) | 185,361,692 | 165,235,409 | ||||||
Increase in net assets resulting from operations | 231,535,298 | 213,496,351 | ||||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (26,352,076 | ) | (60,142,315 | ) | ||||
Class B1 | (138,417 | ) | (1,158,730 | ) | ||||
Class C | (4,889,629 | ) | (25,200,789 | ) | ||||
Class I | (12,284,130 | ) | (33,159,374 | ) | ||||
Class R11 | (60,739 | ) | (235,667 | ) | ||||
Class R2 | (82,074 | ) | (253,240 | ) | ||||
Class R31 | (86,659 | ) | (324,186 | ) | ||||
Class R4 | (322,396 | ) | (1,184,133 | ) | ||||
Class R5 | (53,081 | ) | (163,936 | ) | ||||
Class R6 | (6,691,232 | ) | (13,119,592 | ) | ||||
Total distributions | (50,960,433 | ) | (134,941,962 | ) | ||||
From fund share transactions | 632,751,217 | 166,475,730 | ||||||
Total increase | 813,326,082 | 245,030,119 | ||||||
Net assets | ||||||||
Beginning of year | 2,147,441,951 | 1,902,411,832 | ||||||
End of year | $2,960,768,033 | $2,147,441,951 |
1 | Share class was redesignated during the year. Refer to Note 5 for further details. |
45 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS A SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $20.90 | $20.18 | $20.40 | $18.29 | $18.56 | |||||||||||||||
Net investment income1 | 0.27 | 0.32 | 0.32 | 0.32 | 0.32 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.79 | 1.84 | 0.28 | 2.12 | 0.25 | |||||||||||||||
Total from investment operations | 2.06 | 2.16 | 0.60 | 2.44 | 0.57 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.30 | ) | (0.33 | ) | (0.34 | ) | (0.33 | ) | (0.32 | ) | ||||||||||
From net realized gain | (0.15 | ) | (1.11 | ) | (0.48 | ) | — | (0.52 | ) | |||||||||||
Total distributions | (0.45 | ) | (1.44 | ) | (0.82 | ) | (0.33 | ) | (0.84 | ) | ||||||||||
Net asset value, end of period | $22.51 | $20.90 | $20.18 | $20.40 | $18.29 | |||||||||||||||
Total return (%)2,3 | 10.06 | 11.63 | 2.89 | 13.41 | 3.26 | |||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1,618 | $1,063 | $832 | $817 | $866 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.08 | 1.08 | 1.07 | 1.08 | 1.09 | |||||||||||||||
Expenses including reductions | 1.07 | 1.07 | 1.06 | 1.08 | 1.09 | |||||||||||||||
Net investment income | 1.25 | 1.60 | 1.57 | 1.62 | 1.77 | |||||||||||||||
Portfolio turnover (%) | 89 | 76 | 58 | 52 | 47 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 46 |
Table of Contents
|
CLASS C SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $20.86 | $20.15 | $20.37 | $18.26 | $18.53 | |||||||||||||||
Net investment income1 | 0.13 | 0.18 | 0.18 | 0.18 | 0.19 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.79 | 1.83 | 0.27 | 2.12 | 0.25 | |||||||||||||||
Total from investment operations | 1.92 | 2.01 | 0.45 | 2.30 | 0.44 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.15 | ) | (0.19 | ) | (0.19 | ) | (0.19 | ) | (0.19 | ) | ||||||||||
From net realized gain | (0.15 | ) | (1.11 | ) | (0.48 | ) | — | (0.52 | ) | |||||||||||
Total distributions | (0.30 | ) | (1.30 | ) | (0.67 | ) | (0.19 | ) | (0.71 | ) | ||||||||||
Net asset value, end of period | $22.48 | $20.86 | $20.15 | $20.37 | $18.26 | |||||||||||||||
Total return (%)2,3 | 9.34 | 10.81 | 2.18 | 12.65 | 2.54 | |||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $314 | $351 | $400 | $499 | $507 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.78 | 1.78 | 1.77 | 1.78 | 1.79 | |||||||||||||||
Expenses including reductions | 1.77 | 1.77 | 1.76 | 1.78 | 1.79 | |||||||||||||||
Net investment income | 0.60 | 0.91 | 0.87 | 0.93 | 1.07 | |||||||||||||||
Portfolio turnover (%) | 89 | 76 | 58 | 52 | 47 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
47 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS I SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $20.88 | $20.16 | $20.39 | $18.28 | $18.55 | |||||||||||||||
Net investment income1 | 0.33 | 0.38 | 0.38 | 0.37 | 0.37 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.80 | 1.84 | 0.27 | 2.12 | 0.26 | |||||||||||||||
Total from investment operations | 2.13 | 2.22 | 0.65 | 2.49 | 0.63 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.37 | ) | (0.39 | ) | (0.40 | ) | (0.38 | ) | (0.38 | ) | ||||||||||
From net realized gain | (0.15 | ) | (1.11 | ) | (0.48 | ) | — | (0.52 | ) | |||||||||||
Total distributions | (0.52 | ) | (1.50 | ) | (0.88 | ) | (0.38 | ) | (0.90 | ) | ||||||||||
Net asset value, end of period | $22.49 | $20.88 | $20.16 | $20.39 | $18.28 | |||||||||||||||
Total return (%)2 | 10.41 | 11.98 | 3.16 | 13.77 | 3.59 | |||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $626 | $469 | $454 | $522 | $233 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 0.78 | 0.79 | 0.78 | 0.77 | 0.78 | |||||||||||||||
Expenses including reductions | 0.77 | 0.78 | 0.77 | 0.77 | 0.78 | |||||||||||||||
Net investment income | 1.55 | 1.90 | 1.85 | 1.91 | 2.09 | |||||||||||||||
Portfolio turnover (%) | 89 | 76 | 58 | 52 | 47 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 48 |
Table of Contents
|
CLASS R2 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $20.86 | $20.15 | $20.37 | $18.27 | $18.53 | |||||||||||||||
Net investment income1 | 0.25 | 0.30 | 0.30 | 0.31 | 0.29 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.79 | 1.83 | 0.28 | 2.10 | 0.27 | |||||||||||||||
Total from investment operations | 2.04 | 2.13 | 0.58 | 2.41 | 0.56 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.28 | ) | (0.31 | ) | (0.32 | ) | (0.31 | ) | (0.30 | ) | ||||||||||
From net realized gain | (0.15 | ) | (1.11 | ) | (0.48 | ) | — | (0.52 | ) | |||||||||||
Total distributions | (0.43 | ) | (1.42 | ) | (0.80 | ) | (0.31 | ) | (0.82 | ) | ||||||||||
Net asset value, end of period | $22.47 | $20.86 | $20.15 | $20.37 | $18.27 | |||||||||||||||
Total return (%)2 | 10.03 | 11.48 | 2.79 | 13.27 | 3.23 | |||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $11 | $4 | $4 | $4 | $8 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.16 | 1.17 | 1.18 | 1.18 | 1.19 | |||||||||||||||
Expenses including reductions | 1.15 | 1.17 | 1.17 | 1.17 | 1.18 | |||||||||||||||
Net investment income | 1.18 | 1.51 | 1.47 | 1.58 | 1.63 | |||||||||||||||
Portfolio turnover (%) | 89 | 76 | 58 | 52 | 47 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
49 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS R4 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $21.00 | $20.27 | $20.49 | $18.36 | $18.63 | |||||||||||||||
Net investment income1 | 0.28 | 0.35 | 0.35 | 0.35 | 0.35 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.83 | 1.85 | 0.28 | 2.13 | 0.25 | |||||||||||||||
Total from investment operations | 2.11 | 2.20 | 0.63 | 2.48 | 0.60 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.34 | ) | (0.36 | ) | (0.37 | ) | (0.35 | ) | (0.35 | ) | ||||||||||
From net realized gain | (0.15 | ) | (1.11 | ) | (0.48 | ) | — | (0.52 | ) | |||||||||||
Total distributions | (0.49 | ) | (1.47 | ) | (0.85 | ) | (0.35 | ) | (0.87 | ) | ||||||||||
Net asset value, end of period | $22.62 | $21.00 | $20.27 | $20.49 | $18.36 | |||||||||||||||
Total return (%)2 | 10.24 | 11.79 | 3.03 | 13.64 | 3.41 | |||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $23 | $13 | $17 | $24 | $30 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.01 | 1.03 | 1.03 | 1.03 | 1.03 | |||||||||||||||
Expenses including reductions | 0.90 | 0.92 | 0.92 | 0.92 | 0.92 | |||||||||||||||
Net investment income | 1.33 | 1.77 | 1.70 | 1.79 | 1.93 | |||||||||||||||
Portfolio turnover (%) | 89 | 76 | 58 | 52 | 47 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 50 |
Table of Contents
|
CLASS R5 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $20.96 | $20.24 | $20.47 | $18.34 | $18.60 | |||||||||||||||
Net investment income1 | 0.36 | 0.39 | 0.40 | 0.39 | 0.38 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.79 | 1.84 | 0.26 | 2.13 | 0.26 | |||||||||||||||
Total from investment operations | 2.15 | 2.23 | 0.66 | 2.52 | 0.64 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.38 | ) | (0.40 | ) | (0.41 | ) | (0.39 | ) | (0.38 | ) | ||||||||||
From net realized gain | (0.15 | ) | (1.11 | ) | (0.48 | ) | — | (0.52 | ) | |||||||||||
Total distributions | (0.53 | ) | (1.51 | ) | (0.89 | ) | (0.39 | ) | (0.90 | ) | ||||||||||
Net asset value, end of period | $22.58 | $20.96 | $20.24 | $20.47 | $18.34 | |||||||||||||||
Total return (%)2 | 10.48 | 11.98 | 3.19 | 13.88 | 3.68 | |||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $2 | $2 | $2 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 0.71 | 0.73 | 0.73 | 0.73 | 0.73 | |||||||||||||||
Expenses including reductions | 0.70 | 0.72 | 0.72 | 0.72 | 0.72 | |||||||||||||||
Net investment income | 1.65 | 1.95 | 1.96 | 1.97 | 2.14 | |||||||||||||||
Portfolio turnover (%) | 89 | 76 | 58 | 52 | 47 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
51 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $20.91 | $20.19 | $20.41 | $18.30 | $18.56 | |||||||||||||||
Net investment income1 | 0.35 | 0.40 | 0.41 | 0.39 | 0.39 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.80 | 1.84 | 0.27 | 2.12 | 0.27 | |||||||||||||||
Total from investment operations | 2.15 | 2.24 | 0.68 | 2.51 | 0.66 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.39 | ) | (0.41 | ) | (0.42 | ) | (0.40 | ) | (0.40 | ) | ||||||||||
From net realized gain | (0.15 | ) | (1.11 | ) | (0.48 | ) | — | (0.52 | ) | |||||||||||
Total distributions | (0.54 | ) | (1.52 | ) | (0.90 | ) | (0.40 | ) | (0.92 | ) | ||||||||||
Net asset value, end of period | $22.52 | $20.91 | $20.19 | $20.41 | $18.30 | |||||||||||||||
Total return (%)2 | 10.52 | 12.07 | 3.30 | 13.87 | 3.76 | |||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $366 | $226 | $166 | $18 | $7 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 0.66 | 0.68 | 0.68 | 0.68 | 0.69 | |||||||||||||||
Expenses including reductions | 0.65 | 0.67 | 0.67 | 0.67 | 0.66 | |||||||||||||||
Net investment income | 1.67 | 2.00 | 1.98 | 1.97 | 2.19 | |||||||||||||||
Portfolio turnover (%) | 89 | 76 | 58 | 52 | 47 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 52 |
Table of Contents
|
Note 1 — Organization
John Hancock Balanced Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek current income, long-term growth of capital and income and preservation of capital.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R2, Class R4 and Class R5 shares are available only to certain retirement and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply).
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Debt obligations are typically valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair
53 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund’s Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2020, by major security category or type:
Total | Level 1 | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |||||||||||||
Investments in securities: | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | $1,553,417,244 | $1,526,633,562 | $26,783,682 | — | ||||||||||||
Preferred securities | 2,738,450 | 2,738,450 | — | — | ||||||||||||
U.S. Government and Agency obligations | 511,611,578 | — | 511,611,578 | — | ||||||||||||
Foreign government obligations | 5,560,418 | — | 5,560,418 | — | ||||||||||||
Corporate bonds | 706,650,975 | — | 706,650,975 | — | ||||||||||||
Municipal bonds | 3,098,148 | — | 3,098,148 | — | ||||||||||||
Collateralized mortgage obligations | 61,715,274 | — | 61,715,274 | — | ||||||||||||
Asset backed securities | 84,611,188 | — | 84,611,188 | — | ||||||||||||
Warrants | 32,878 | — | — | $32,878 | ||||||||||||
Short-term investments | 36,614,291 | 31,909,291 | 4,705,000 | — | ||||||||||||
Total investments in securities | $2,966,050,444 | $1,561,281,303 | $1,404,736,263 | $32,878 |
When-issued/delayed-delivery securities. The fund may purchase or sell debt securities on a when-issued or delayed-delivery basis, or in a “To Be Announced” (TBA) or “forward commitment” transaction, with delivery or payment to occur at a later date beyond the normal settlement period. TBA securities resulting from these transactions are included in the portfolio or in a schedule to the portfolio (Sale Commitments Outstanding). At the time a fund enters into a commitment to purchase or sell a security, the transaction is recorded and the value of the security is reflected in its NAV. The price of such security and the date that the security will be delivered and
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 54 |
Table of Contents
|
paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. No interest accrues until settlement takes place. At the time that the fund enters into this type of transaction, the fund is required to have sufficient cash and/or liquid securities to cover its commitments.
Certain risks may arise upon entering into when-issued or delayed-delivery securities transactions, including the potential inability of counterparties to meet the terms of their contracts, and the issuer’s failure to issue the securities due to political, economic or other factors. Additionally, losses may arise due to declines in the value of the securities purchased or increase in the value of securities sold prior to settlement date.
Mortgage and asset backed securities. The fund may invest in mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, which are debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from the risks associated with investing in other types of debt securities.
Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the fund’s cash available for reinvestment in higher yielding securities. The timely payment of principal and interest of certain mortgage-related securities is guaranteed with the full faith and credit of the U.S. Government. Pools created and guaranteed by non-governmental issuers, including government-sponsored corporations (e.g. FNMA), may be supported by various forms of insurance or guarantees, but there can be no assurance that private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. The fund is also subject to risks associated with securities with contractual cash flows including asset-backed and mortgage related securities such as collateralized mortgage obligations, mortgage pass-through securities and commercial mortgage-backed securities. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate value, pre-payments, delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of the fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund will invest its cash collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash
55 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of October 31, 2020, the fund loaned securities valued at $981,306 and received $1,000,636 of cash collateral.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law. Overdrafts at period end are presented under the caption Due to custodian in the Statement of assets and liabilities.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 56 |
Table of Contents
|
had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $12,394.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends quarterly. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2020 and 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||||
Ordinary income | $50,583,261 | $30,946,515 | ||||||
Long-term capital gains | 377,172 | 103,995,447 | ||||||
Total | $50,960,433 | $134,941,962 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $19,013,393 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to investments in passive foreign investment companies, amortization and accretion on debt securities and wash sale loss deferrals.
57 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
Note 3 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.600% of the first $2 billion of the fund’s average daily net assets and (b) 0.550% of the fund’s average daily net assets in excess of $2 billion. The Advisor has a subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of Manulife Financial Corporation and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $93,748 | |||
Class B | 542 | |||
Class C | 23,542 | |||
Class I | 37,506 | |||
Class R1 | 220 | |||
Class R2 | 301 |
Class | Expense reduction | |||
Class R3 | $301 | |||
Class R4 | 1,109 | |||
Class R5 | 154 | |||
Class R6 | 19,884 | |||
Total | $177,307 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 0.58% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 58 |
Table of Contents
|
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for certain classes as detailed below, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | Service fee | ||||||
Class A | 0.30% | — | ||||||
Class B | 1.00% | — | ||||||
Class C | 1.00% | — | ||||||
Class R1 | 0.50% | 0.25% | ||||||
Class R2 | 0.25% | 0.25% | ||||||
Class R3 | 0.50% | 0.15% | ||||||
Class R4 | 0.25% | 0.10% | ||||||
Class R5 | — | 0.05% |
Class B, Class R1, and Class R3 were redesignated during the year. Refer to Note 5 for further details.
The fund’s Distributor has contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on February 28, 2021, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $15,506 for Class R4 shares for the year ended October 31, 2020.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $2,163,080 for the year ended October 31, 2020. Of this amount, $224,127 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $1,938,953 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $250,000 or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, there were no CDSCs received by the Distributor for Class A and Class C shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
59 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $3,970,618 | $1,639,055 | ||||||
Class B | 76,445 | 9,516 | ||||||
Class C | 3,325,689 | 413,436 | ||||||
Class I | — | 654,987 | ||||||
Class R1 | 22,125 | 403 | ||||||
Class R2 | 20,444 | 533 | ||||||
Class R3 | 26,869 | 552 | ||||||
Class R4 | 53,683 | 1,939 | ||||||
Class R5 | 1,079 | 278 | ||||||
Class R6 | — | 35,560 | ||||||
Total | $7,496,952 | $2,756,259 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) | ||||||||||||
Lender | $2,250,000 | 2 | 0.866% | $108 |
Note 5 — Fund share transactions
Transactions in fund shares for the years ended October 31, 2020 and 2019 were as follows:
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares | ||||||||||||||||
Sold | 41,876,219 | $904,225,483 | 17,827,152 | $358,821,353 | ||||||||||||
Distributions reinvested | 1,222,816 | 25,487,459 | 3,122,194 | 58,256,341 | ||||||||||||
Repurchased | (22,114,722 | ) | (473,441,633 | ) | (11,296,619 | ) | (226,124,337) | |||||||||
Net increase | 20,984,313 | $456,271,309 | 9,652,727 | $190,953,357 | ||||||||||||
Class B shares | ||||||||||||||||
Sold | 10,505 | $220,682 | 16,564 | $322,658 | ||||||||||||
Distributions reinvested | 6,065 | 126,412 | 58,403 | 1,077,248 | ||||||||||||
Repurchased | (560,547 | ) | (12,326,641 | ) | (502,719 | ) | (9,879,867) | |||||||||
Net decrease | (543,977 | ) | $(11,979,547) | (427,752 | ) | $(8,479,961) |
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 60 |
Table of Contents
|
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class C shares | ||||||||||||||||
Sold | 2,623,485 | $56,124,040 | 2,480,805 | $48,929,991 | ||||||||||||
Distributions reinvested | 213,587 | 4,453,454 | 1,227,779 | 22,711,974 | ||||||||||||
Repurchased | (5,663,311 | ) | (121,025,958) | (6,780,942 | ) | (134,084,859) | ||||||||||
Net decrease | (2,826,239 | ) | $(60,448,464) | (3,072,358 | ) | $(62,442,894) | ||||||||||
Class I shares | ||||||||||||||||
Sold | 10,430,889 | $226,188,871 | 6,623,345 | $130,794,097 | ||||||||||||
Distributions reinvested | 519,433 | 10,816,668 | 1,533,965 | 28,603,840 | ||||||||||||
Repurchased | (5,597,083 | ) | (115,277,111) | (8,166,157 | ) | (159,008,781) | ||||||||||
Net increase (decrease) | 5,353,239 | $121,728,428 | (8,847 | ) | $389,156 | |||||||||||
Class R1 shares | ||||||||||||||||
Sold | 57,212 | $1,227,597 | 33,297 | $664,078 | ||||||||||||
Distributions reinvested | 2,363 | 49,416 | 8,551 | 159,757 | ||||||||||||
Repurchased | (224,471 | ) | (5,015,565) | (53,428 | ) | (1,080,583) | ||||||||||
Net decrease | (164,896 | ) | $(3,738,552) | (11,580 | ) | $(256,748) | ||||||||||
Class R2 shares | ||||||||||||||||
Sold | 484,436 | $8,777,117 | 87,369 | $1,742,276 | ||||||||||||
Distributions reinvested | 3,429 | 71,200 | 9,875 | 183,805 | ||||||||||||
Repurchased | (84,041 | ) | (1,785,479) | (75,682 | ) | (1,516,988) | ||||||||||
Net increase | 403,824 | $7,062,838 | 21,562 | $409,093 | ||||||||||||
Class R3 shares | ||||||||||||||||
Sold | 46,821 | $1,018,539 | 43,765 | $857,483 | ||||||||||||
Distributions reinvested | 4,153 | 86,659 | 17,390 | 324,185 | ||||||||||||
Repurchased | (271,828 | ) | (6,219,863) | (70,338 | ) | (1,426,239) | ||||||||||
Net decrease | (220,854 | ) | $(5,114,665) | (9,183 | ) | $(244,571) | ||||||||||
Class R4 shares | ||||||||||||||||
Sold | 537,195 | $11,982,587 | 157,092 | $3,050,177 | ||||||||||||
Distributions reinvested | 15,282 | 321,771 | 63,247 | 1,184,133 | ||||||||||||
Repurchased | (117,853 | ) | (2,564,107) | (475,729 | ) | (9,619,372) | ||||||||||
Net increase (decrease) | 434,624 | $9,740,251 | (255,390 | ) | $(5,385,062) | |||||||||||
Class R5 shares | ||||||||||||||||
Sold | 3,754 | $80,752 | 22,394 | $435,832 | ||||||||||||
Distributions reinvested | 2,535 | 52,838 | 8,113 | 151,971 | ||||||||||||
Repurchased | (10,792 | ) | (235,190) | (37,103 | ) | (744,884) | ||||||||||
Net decrease | (4,503 | ) | $(101,600) | (6,596 | ) | $(157,081) |
61 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class R6 shares | ||||||||||||||||
Sold | 7,506,526 | $163,124,435 | 3,882,257 | $77,589,248 | ||||||||||||
Distributions reinvested | 319,938 | 6,673,233 | 696,880 | 13,056,458 | ||||||||||||
Repurchased | (2,376,265 | ) | (50,466,449) | (1,972,647 | ) | (38,955,265) | ||||||||||
Net increase | 5,450,199 | $119,331,219 | 2,606,490 | $51,690,441 | ||||||||||||
Total net increase | 28,865,730 | $632,751,217 | 8,489,073 | $166,475,730 |
Affiliates of the fund owned 1% of shares of Class R6 on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
On June 25, 2020, the Board of Trustees approved redesignations of certain share classes. As a result of the redesignations, Class B, Class R1, and Class R3 were terminated, and shareholders in these classes became shareholders of the respective classes identified below, in each case with the same or lower total net expenses. The following amounts are included in the amount repurchased of the terminated classes and the amount sold of the redesignated classes.
Redesignation | Effective date | Amount | ||
Class R3 shares as Class R2 shares | October 9, 2020 | $4,556,865 | ||
Class B shares as Class A shares | October 14, 2020 | $5,281,361 | ||
Class R1 shares as Class R2 shares | October 23, 2020 | $3,276,091 |
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments and U.S. Treasury obligations, amounted to $1,465,732,557 and $852,084,580, respectively, for the year ended October 31, 2020. Purchases and sales of U.S. Treasury obligations aggregated $1,375,271,876 and $1,343,783,008, respectively, for the year ended October 31, 2020.
Note 7 — Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
Dividends and distributions | ||||||||||||||||||||||||||||||||||||
Affiliate |
| Ending share amount |
|
| Beginning value |
|
| Cost of purchases |
|
| Proceeds from shares sold |
|
| Realized gain (loss) |
| | Change in unrealized appreciation (depreciation) |
|
| Income distributions received |
|
| Capital gain distributions received |
|
| Ending value |
| |||||||||
John Hancock Collateral Trust* | 99,969 | — | $135,638,203 | $(134,641,046) | $3,474 | $(86) | $38,626 | — | $1,000,545 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
Note 8 — LIBOR discontinuation risk
LIBOR (London Interbank Offered Rate) is a measure of the average interest rate at which major global banks can borrow from one another. Following allegations of rate manipulation and concerns regarding its thin liquidity, in July 2017, the U.K. Financial Conduct Authority, which regulates LIBOR, announced that it will stop encouraging banks to provide the quotations needed to sustain LIBOR after 2021. This event will likely cause LIBOR to cease to
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 62 |
Table of Contents
|
be published. Before then, it is expected that market participants will transition to the use of different reference or benchmark rates. However, although regulators have suggested alternative rates, there is currently no definitive information regarding the future utilization of LIBOR or of any replacement rate.
It is uncertain what impact the discontinuation of LIBOR will have on the use of LIBOR as a reference rate for securities in which the fund invests. It is expected that market participants will amend financial instruments referencing LIBOR to include fallback provisions and other measures that contemplate the discontinuation of LIBOR or other similar market disruption events, but neither the effect of the transition process nor the viability of such measures is known. In addition, there are obstacles to converting certain longer term securities and transactions to a new benchmark or benchmarks and the effectiveness of one alternative reference rate versus multiple alternative reference rates in new or existing financial instruments and products has not been determined. As market participants transition away from LIBOR, LIBOR’s usefulness may deteriorate, which could occur prior to the end of 2021. The transition process may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. LIBOR’s deterioration may adversely affect the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate.
Note 9 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
Note 10 — New accounting pronouncement
In March 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the LIBOR and other IBOR-based reference rates as of the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 to the financial statements.
63 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Balanced Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Balanced Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the Fund ) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statements of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the five years in the period ended October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian, transfer agents and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP |
Boston, Massachusetts |
December 16, 2020 |
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 64 |
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund paid $377,172 in long term capital gain dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
65 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Manulife Investment Management (US) LLC (the Subadvisor) for John Hancock Balanced Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at telephonic meetings held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At telephonic meetings held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board noted the affiliation of the Subadvisor with the Advisor, noting any potential conflicts of interest. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
1On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the “Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 66 |
Table of Contents
|
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
67 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund underperformed its benchmark index for the one-, three-, five- and ten-year periods ended December 31, 2019. The Board also noted that the fund outperformed its peer group median for the one-,three-, five- and ten-year periods ended December 31, 2019. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to the peer group for the one-, three-, five-and ten-year periods. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are higher than the peer group median and net total expenses for the fund are lower than the peer group median.
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 68 |
Table of Contents
|
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board also noted that the fund’s distributor, an affiliate of the Advisor, has agreed to waive a portion of its Rule 12b-1 fee for a share class of the fund. The Board noted that the fund has a voluntary fee waiver and/or expense reimbursement, which reduces certain expenses of the fund. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates (including the Subadvisor) from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the fund’s Subadvisor is an affiliate of the Advisor; |
(i) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(j) | noted that the subadvisory fee for the fund is paid by the Advisor; |
69 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
(k) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(l) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates (including the Subadvisor) from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 70 |
Table of Contents
|
appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
71 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 72 |
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees | ||||
Name, year of birth | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years | since1 | Trustee | ||
Hassell H. McClellan, Born: 1945 | 2012 | 196 | ||
Trustee and Chairperson of the Board |
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 | ||
Trustee |
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015 | 196 | ||
Trustee |
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 | ||
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 | ||
Trustee |
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 | ||
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).
73 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
Independent Trustees (continued) | ||||
Name, year of birth | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years | since1 | Trustee | ||
Deborah C. Jackson, Born: 1952 | 2008 | 196 | ||
Trustee |
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946 | 2012 | 196 | ||
Trustee |
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994 | 196 | ||
Trustee and Vice Chairperson of the Board |
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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 | 196 | ||
Trustee |
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 74 |
Table of Contents
|
Independent Trustees (continued) | ||||
Name, year of birth | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years | since1 | Trustee | ||
Gregory A. Russo, Born: 1949 | 2009 | 196 | ||
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 | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years | since1 | Trustee | ||
Andrew G. Arnott, Born: 1971 | 2017 | 196 | ||
President and Non-Independent Trustee |
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 | ||
Non-Independent Trustee |
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
75 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
|
Principal officers who are not Trustees | ||||
Name, year of birth | Officer | |||
Position(s) held with Trust | of the | |||
Principal occupation(s) | Trust | |||
during past 5 years | since | |||
Charles A. Rizzo, Born: 1957 | 2007 | |||
Chief Financial Officer |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
Salvatore Schiavone, Born: 1965 | 2010 | |||
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 | |||
Chief Legal Officer and Secretary |
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).
Trevor Swanberg, Born: 1979 | 2020 | |||
Chief Compliance Officer |
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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).
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
ANNUAL REPORT | JOHN HANCOCK BALANCED FUND | 76 |
Table of Contents
|
Trustees | Investment advisor | |
Hassell H. McClellan, Chairperson | John Hancock Investment Management LLC | |
Steven R. Pruchansky, Vice Chairperson | ||
Andrew G. Arnott† | Subadvisor | |
Charles L. Bardelis* | Manulife Investment Management (US) LLC | |
James R. Boyle | ||
Peter S. Burgess* | Portfolio Managers | |
William H. Cunningham | Susan A. Curry | |
Grace K. Fey | Jeffrey N. Given, CFA | |
Marianne Harrison† | Michael J. Scanlon, Jr., CFA | |
Deborah C. Jackson | ||
James M. Oates* | Principal distributor | |
Frances G. Rathke1,* | John Hancock Investment Management | |
Gregory A. Russo | Distributors LLC
| |
Custodian | ||
Officers | Citibank, N.A. | |
Andrew G. Arnott | ||
President | Transfer agent | |
Charles A. Rizzo | John Hancock Signature Services, Inc. | |
Chief Financial Officer | ||
Salvatore Schiavone | Legal counsel | |
Treasurer | K&L Gates LLP | |
Christopher (Kit) Sechler | ||
Secretary and Chief Legal Officer | Independent registered public accounting firm | |
Trevor Swanberg2 | PricewaterhouseCoopers LLP | |
Chief Compliance Officer |
* Member of the Audit Committee
† Non-Independent Trustee
1 Appointed as Independent Trustee effective as of
September 15, 2020
2 Effective July 31, 2020
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407 |
77 | JOHN HANCOCK BALANCED FUND | ANNUAL REPORT |
Table of Contents
Protect yourself by using eDelivery |
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
∎ | Added security: Password protection | |||
helps you safely retrieve documents online | ||||
∎ | Save time: Receive instant email | |||
notification once statements are available | ||||
∎ | Reduce clutter: View documents online | |||
to reduce the amount of paper for filing, shredding, or recycling |
SIGN UP FOR EDELIVERY TODAY!
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
| Not part of the shareholder report |
Table of Contents
Get your questions answered by using our shareholder resources |
ONLINE
∎ | Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |
∎ | Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |
∎ | Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |
∎ | Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. |
BY PHONE
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00 A.M. to 7:00 P.M., and Friday, 8:00 A.M. to 6:00 P.M., Eastern time. We’re here to help!
Not part of the shareholder report |
Table of Contents
John Hancock family of funds |
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800- 225- 5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock Balanced Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399308 | 36A 10/20 | |
12/10 |
Table of Contents
Table of Contents
Dear shareholder,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. In response to the pandemic-led shock, the U.S. Federal Reserve and the government worked quickly to shore up the economy and equity markets began to rise, particularly large-cap U.S. growth stocks, during the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain areas have been reinstated, affecting the level of unemployment and the pace of hiring. Consumer spending also remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
John Hancock
Fundamental Large Cap Core Fund
Table of contents | ||||||||
2 | ||||||||
4 | ||||||||
6 | ||||||||
8 | ||||||||
10 | ||||||||
13 | ||||||||
16 | ||||||||
24 | ||||||||
33 | ||||||||
34 | ||||||||
35 | Continuation of investment advisory and subadvisory agreements | |||||||
42 | ||||||||
46 | More information | |||||||
1 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 2 |
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Despite steep first-quarter downturn, stocks closed with a gain |
Slowing COVID-19 infection rates, gradual economic reopenings, and progress developing a vaccine helped U.S. stocks rebound from their March lows. |
The fund edged ahead of the S&P 500 Index |
Security selection aided relative performance, but was largely offset by disappointing sector allocations. |
Positioning in the consumer discretionary sector helped most |
Stock picks and an overweight in the strong-performing consumer discretionary sector gave the biggest boost to relative performance.
|
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
3 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
Manager’s discussion of fund performance
|
What drove the U.S. stock market’s gain for the 12 months ended October 31, 2020?
U.S. stocks rose in late 2019, aided by easing trade tensions, steady economic growth and interest rate cuts, but equities fell sharply in the new year as the COVID-19 pandemic spread, leading to unprecedented shutdowns of entire countries. Starting in April, however, U.S. equities began a strong rebound, buoyed by slowing infection rates and hospitalizations, progress in developing a potential vaccine, and the gradual reopening of economies in many states. These tailwinds outweighed late-period profit taking, rising infection rates, and mounting uncertainty ahead of the November U.S. presidential election.
Within the fund’s benchmark, the S&P 500 Index, the information technology and consumer discretionary sectors stood out, as COVID-19 lockdowns boosted demand for e-commerce and cloud computing services. Conversely, energy stocks posted steep losses due to weak commodity prices.
Which sectors and stocks most aided the fund’s relative result?
Security selection and a large overweight in the consumer discretionary sector helped the fund outpace the benchmark, with added boosts from stock picks in healthcare and real estate. Within the consumer discretionary sector, a large overweight in e-commerce giant Amazon.com, Inc. soared amid increased demand
TOP 10 HOLDINGS | ||||||||||
AS OF 10/31/2020 (% of net assets) | ||||||||||
| ||||||||||
Amazon.com, Inc. | 9.8 | |||||||||
Apple, Inc. | 6.7 | |||||||||
Facebook, Inc., Class A | 6.6 | |||||||||
Alphabet, Inc., Class A | 5.5 | |||||||||
Lennar Corp., A Shares | 4.6 | |||||||||
Workday, Inc., Class A | 4.2 | |||||||||
Anheuser-Busch InBev SA/NV, ADR | 4.0 | |||||||||
Cheniere Energy, Inc. | 4.0 | |||||||||
Morgan Stanley | 3.7 | |||||||||
Microsoft Corp. | 3.2 | |||||||||
TOTAL | 52.3 | |||||||||
Cash and cash equivalents are not included.
|
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 4 |
Table of Contents
|
for online shopping and cloud computing as people sheltered at home during the pandemic. Elsewhere, shares of consumer technology leader Apple, Inc., another top holding, surged due to enthusiasm for the company’s ecosystem and the anticipated fall launch of a 5G-enabled iPhone. An overweight in social networking company Facebook, Inc. also rallied nicely, as increased usage during the pandemic aided advertising revenues. | MANAGED BY Emory W. Sanders, Jr., CFA Jonathan T. White, CFA
|
What detracted from relative performance?
An overweight in the financials sector and stock picks in consumer staples hurt most. Among individual detractors was a nonindex position in Belgium-based global brewer Anheuser-Busch InBev SA/NV, which fell sharply as COVID-19 lockdowns hurt on-premises sales. Elsewhere, shares of Citigroup, Inc. declined amid continued low interest rates and uncertainty associated with a second round of regulatory stress tests to measure the capital adequacy of big banks in the event of economic disruption. Concerns regarding an upcoming CEO transition and the company’s need to invest in additional compliance measures also hurt the stock, which was no longer in the portfolio at period end. A nonindex investment in liquefied natural gas company Chenière Energy, Inc. retreated as low oil prices and weakened demand battered energy stocks.
How was the fund positioned at period end?
We kept the fund focused on financially sound companies with competitive advantages, the ability to generate substantial cash flow over sustained periods, and attractive stock prices relative to our estimate of intrinsic value. As of period end, the fund had sizable overweights in the consumer discretionary, communication services and financials sectors, with underweights in healthcare and information technology.
The views expressed in this report are exclusively those of Emory W. Sanders, Jr., CFA, Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
5 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020
Average annual total returns (%) | Cumulative total returns (%) | |||||||||||
with maximum sales charge | with maximum sales charge | |||||||||||
1-year | 5-year | 10-year | 5-year | 10-year | ||||||||
Class A | 4.38 | 7.95 | 10.18 | 46.63 | 163.58 | |||||||
Class C | 8.05 | 8.26 | 9.91 | 48.68 | 157.29 | |||||||
Class I1 | 10.16 | 9.35 | 11.05 | 56.33 | 185.26 | |||||||
Class R21,2 | 9.73 | 8.92 | 10.65 | 53.29 | 175.23 | |||||||
Class R41 | 10.00 | 9.19 | 10.86 | 55.18 | 180.34 | |||||||
Class R51 | 10.22 | 9.40 | 11.10 | 56.74 | 186.53 | |||||||
Class R61,2 | 10.28 | 9.47 | 11.12 | 57.21 | 187.05 | |||||||
Class NAV1,2 | 10.30 | 9.36 | 10.89 | 56.45 | 181.17 | |||||||
Index† | 9.71 | 11.71 | 13.01 | 73.97 | 239.87 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R5, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R2 | Class R4 | Class R5 | Class R6 | Class NAV | |||||||||
Gross (%) | 1.03 | 1.78 | 0.78 | 1.18 | 1.03 | 0.73 | 0.68 | 0.67 | ||||||||
Net (%) | 1.02 | 1.77 | 0.77 | 1.17 | 0.92 | 0.72 | 0.67 | 0.66 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the S&P 500 Index. |
See the following page for footnotes.
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 6 |
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Fundamental Large Cap Core Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the S&P 500 Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||||
Class C3 | 10-31-10 | 25,729 | 25,729 | 33,987 | ||||||||||||
Class I1 | 10-31-10 | 28,526 | 28,526 | 33,987 | ||||||||||||
Class R21,2 | 10-31-10 | 27,523 | 27,523 | 33,987 | ||||||||||||
Class R41 | 10-31-10 | 28,034 | 28,034 | 33,987 | ||||||||||||
Class R51 | 10-31-10 | 28,653 | 28,653 | 33,987 | ||||||||||||
Class R61,2 | 10-31-10 | 28,705 | 28,705 | 33,987 | ||||||||||||
Class NAV1,2 | 10-31-10 | 28,117 | 28,117 | 33,987 |
The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | For certain types of investors, as described in the fund’s prospectuses. |
2 | Class R2 shares were first offered on 3-1-12; Class R6 shares were first offered on 9-1-11; Class NAV shares were first offered on 2-8-17. Returns prior to these dates are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
3 | The contingent deferred sales charge is not applicable. |
7 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 8 |
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 5-1-2020 | Ending value on 10-31-2020 | Expenses paid during period ended 10-31-20201 | Annualized expense ratio | |||||||||||||||
Class A | Actual expenses/actual returns | $1,000.00 | $1,155.70 | $5.53 | 1.02% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.00 | 5.18 | 1.02% | ||||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,151.50 | 9.73 | 1.80% | |||||||||||||
Hypothetical example | 1,000.00 | 1,016.10 | 9.12 | 1.80% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,157.40 | 4.23 | 0.78% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.20 | 3.96 | 0.78% | ||||||||||||||
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,155.10 | 6.28 | 1.16% | |||||||||||||
Hypothetical example | 1,000.00 | 1,019.30 | 5.89 | 1.16% | ||||||||||||||
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,156.40 | 4.88 | 0.90% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.60 | 4.57 | 0.90% | ||||||||||||||
Class R5 | Actual expenses/actual returns | 1,000.00 | 1,157.60 | 3.85 | 0.71% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.60 | 3.61 | 0.71% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,157.80 | 3.63 | 0.67% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.80 | 3.41 | 0.67% | ||||||||||||||
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,157.80 | 3.53 | 0.65% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.90 | 3.30 | 0.65% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
9 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
AS OF 10-31-20
Shares | Value | |||||||
Common stocks 99.6% | $4,696,968,025 | |||||||
(Cost $3,070,641,416) | ||||||||
Communication services 19.8% | 933,232,956 | |||||||
Entertainment 3.9% | ||||||||
Liberty Media Corp.-Liberty Formula One, Series C (A) | 3,463,071 | 125,120,755 | ||||||
The Walt Disney Company | 488,404 | 59,218,985 | ||||||
Interactive media and services 12.9% | ||||||||
Alphabet, Inc., Class A (A) | 159,634 | 257,986,104 | ||||||
CarGurus, Inc. (A) | 1,956,935 | 39,001,715 | ||||||
Facebook, Inc., Class A (A) | 1,179,303 | 310,286,412 | ||||||
Media 3.0% | ||||||||
Comcast Corp., Class A | 1,339,026 | 56,560,458 | ||||||
Fox Corp., Class A | 6,914 | 183,359 | ||||||
Fox Corp., Class B | 3,246,946 | 84,875,168 | ||||||
Consumer discretionary 17.9% | 843,824,803 | |||||||
Household durables 5.4% | ||||||||
Lennar Corp., A Shares | 3,110,892 | 218,477,945 | ||||||
Tempur Sealy International, Inc. (A) | 423,853 | 37,722,917 | ||||||
Internet and direct marketing retail 9.8% | ||||||||
Amazon.com, Inc. (A) | 151,814 | 460,930,075 | ||||||
Leisure products 1.4% | ||||||||
Polaris, Inc. | 746,095 | 67,790,192 | ||||||
Specialty retail 1.3% | ||||||||
CarMax, Inc. (A) | 681,440 | 58,903,674 | ||||||
Consumer staples 5.8% | 274,257,507 | |||||||
Beverages 4.5% | �� | |||||||
Anheuser-Busch InBev SA/NV, ADR | 3,652,790 | 189,616,329 | ||||||
Diageo PLC, ADR | 184,898 | 24,070,022 | ||||||
Food products 1.3% | ||||||||
Danone SA | 1,092,060 | 60,571,156 | ||||||
Energy 5.1% | 241,635,151 | |||||||
Energy equipment and services 1.1% | ||||||||
Baker Hughes Company | 3,525,561 | 52,072,536 | ||||||
Oil, gas and consumable fuels 4.0% | ||||||||
Cheniere Energy, Inc. (A) | 3,959,946 | 189,562,615 | ||||||
Financials 15.7% | 741,475,973 | |||||||
Banks 6.8% | ||||||||
Bank of America Corp. | 5,576,114 | 132,153,902 | ||||||
First Republic Bank | 20,774 | 2,620,432 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 10 |
Table of Contents
|
Shares | Value | |||||||
Financials (continued) | ||||||||
Banks (continued) | ||||||||
JPMorgan Chase & Co. | 1,454,702 | $142,618,984 | ||||||
Wells Fargo & Company | 2,016,396 | 43,251,694 | ||||||
Capital markets 7.0% | ||||||||
Morgan Stanley | 3,573,554 | 172,066,625 | ||||||
State Street Corp. | 979,562 | 57,696,202 | ||||||
The Goldman Sachs Group, Inc. | 523,614 | 98,983,991 | ||||||
Consumer finance 1.9% | ||||||||
American Express Company | 673,637 | 61,462,640 | ||||||
Synchrony Financial | 1,223,881 | 30,621,503 | ||||||
Health care 7.6% | 356,717,713 | |||||||
Biotechnology 2.0% | ||||||||
Alexion Pharmaceuticals, Inc. (A) | 424,104 | 48,831,335 | ||||||
Alnylam Pharmaceuticals, Inc. (A) | 384,881 | 47,328,817 | ||||||
Health care equipment and supplies 1.8% | ||||||||
Danaher Corp. | 365,098 | 83,804,595 | ||||||
Health care providers and services 2.9% | ||||||||
UnitedHealth Group, Inc. | 445,294 | 135,877,011 | ||||||
Pharmaceuticals 0.9% | ||||||||
Bristol-Myers Squibb Company | 699,332 | 40,875,955 | ||||||
Industrials 5.5% | 260,538,170 | |||||||
Aerospace and defense 2.4% | ||||||||
General Dynamics Corp. | 422,824 | 55,529,476 | ||||||
Lockheed Martin Corp. | 123,167 | 43,124,462 | ||||||
Raytheon Technologies Corp. | 313,826 | 17,047,028 | ||||||
Building products 0.2% | ||||||||
Carrier Global Corp. | 313,826 | 10,478,650 | ||||||
Machinery 1.2% | ||||||||
Caterpillar, Inc. | 286,118 | 44,934,832 | ||||||
Otis Worldwide Corp. | 156,915 | 9,615,751 | ||||||
Road and rail 1.7% | ||||||||
Union Pacific Corp. | 450,409 | 79,807,971 | ||||||
Information technology 18.2% | 858,699,457 | |||||||
IT services 1.2% | ||||||||
Visa, Inc., Class A | 319,295 | 58,019,094 | ||||||
Semiconductors and semiconductor equipment 2.9% | ||||||||
Analog Devices, Inc. | 438,977 | 52,031,944 | ||||||
Broadcom, Inc. | 89,993 | 31,464,253 | ||||||
KLA Corp. | 275,456 | 54,314,414 |
11 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||||||
Information technology (continued) | ||||||||||||
Software 7.4% | ||||||||||||
Microsoft Corp. | 745,041 | $150,848,451 | ||||||||||
Workday, Inc., Class A (A) | 929,832 | 195,376,300 | ||||||||||
Technology hardware, storage and peripherals 6.7% | ||||||||||||
Apple, Inc. | 2,908,736 | 316,645,001 | ||||||||||
Materials 0.8% | 39,027,863 | |||||||||||
Chemicals 0.8% | ||||||||||||
LyondellBasell Industries NV, Class A | 570,166 | 39,027,863 | ||||||||||
Real estate 3.2% | 147,558,432 | |||||||||||
Equity real estate investment trusts 3.2% | ||||||||||||
American Tower Corp. | 428,080 | 98,308,572 | ||||||||||
Crown Castle International Corp. | 315,300 | 49,249,860 | ||||||||||
Yield | (%) | Shares | Value | |||||||||
Short-term investments 0.4%
|
|
$19,620,579
|
| |||||||||
(Cost $19,620,579) | ||||||||||||
Short-term funds 0.4% | 19,620,579 | |||||||||||
Federated Government Obligations Fund, Institutional Class | 0.0100 | (B) | 19,620,579 | 19,620,579 | ||||||||
Total investments (Cost $3,090,261,995) 100.0%
|
|
$4,716,588,604
|
| |||||||||
Other assets and liabilities, net (0.0%)
|
|
(116,141
|
)
| |||||||||
Total net assets 100.0%
|
|
$4,716,472,463
|
|
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
Security Abbreviations and Legend
ADR | American Depositary Receipt | |
(A) | Non-income producing security. | |
(B) | The rate shown is the annualized seven-day yield as of 10-31-20. |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $3,103,040,699. Net unrealized appreciation aggregated to $1,613,547,905, of which $1,801,103,583 related to gross unrealized appreciation and $187,555,678 related to gross unrealized depreciation.
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 12 |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20
|
| |||
Assets | ||||
Unaffiliated investments, at value (Cost $3,090,261,995) | $4,716,588,604 | |||
Cash | 865,456 | |||
Dividends and interest receivable | 3,805,997 | |||
Receivable for fund shares sold | 2,342,403 | |||
Other assets | 132,664 | |||
Total assets | 4,723,735,124 | |||
Liabilities | ||||
Payable for fund shares repurchased | 3,339,227 | |||
Payable to affiliates | ||||
Investment management fees | 2,610,885 | |||
Accounting and legal services fees | 181,544 | |||
Transfer agent fees | 240,822 | |||
Distribution and service fees | 425,790 | |||
Other liabilities and accrued expenses | 464,393 | |||
Total liabilities | 7,262,661 | |||
Net assets | $4,716,472,463 | |||
Net assets consist of | ||||
Paid-in capital | $3,190,872,819 | |||
Total distributable earnings (loss) | 1,525,599,644 | |||
Net assets | $4,716,472,463 | |||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class A ($1,549,882,381 ÷ 30,487,092 shares)1 | $50.84 | |||
Class C ($83,753,090 ÷ 1,899,999 shares)1 | $44.08 | |||
Class I ($624,514,786 ÷ 11,680,705 shares) | $53.47 | |||
Class R2 ($7,150,440 ÷ 134,504 shares) | $53.16 | |||
Class R4 ($1,517,724 ÷ 28,558 shares) | $53.15 | |||
Class R5 ($522,410 ÷ 9,745 shares) | $53.61 | |||
Class R6 ($386,367,028 ÷ 7,203,099 shares) | $53.64 | |||
Class NAV ($2,062,764,604 ÷ 38,470,309 shares) | $53.62 | |||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95%)2 | $53.52 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
13 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20
|
| |||
Investment income | ||||
Dividends | $70,633,773 | |||
Interest | 417,713 | |||
Less foreign taxes withheld | (655,982 | ) | ||
Total investment income | 70,395,504 | |||
Expenses | ||||
Investment management fees | 30,111,321 | |||
Distribution and service fees | 5,020,732 | |||
Accounting and legal services fees | 923,269 | |||
Transfer agent fees | 3,003,437 | |||
Trustees’ fees | 80,600 | |||
Custodian fees | 608,046 | |||
State registration fees | 189,610 | |||
Printing and postage | 196,722 | |||
Professional fees | 171,270 | |||
Other | 219,801 | |||
Total expenses | 40,524,808 | |||
Less expense reductions | (355,717 | ) | ||
Net expenses | 40,169,091 | |||
Net investment income | 30,226,413 | |||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | 278,205,291 | |||
278,205,291 | ||||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments | 157,376,933 | |||
157,376,933 | ||||
Net realized and unrealized gain | 435,582,224 | |||
Increase in net assets from operations | $465,808,637 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 14 |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS
| ||||||||
Year ended 10-31-20 | Year ended 10-31-19 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income | $30,226,413 | $36,635,492 | ||||||
Net realized gain (loss) | 278,205,291 | (374,099,003 | ) | |||||
Change in net unrealized appreciation (depreciation) | 157,376,933 | 954,775,662 | ||||||
Increase in net assets resulting from operations | 465,808,637 | 617,312,151 | ||||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (8,690,954 | ) | (166,593,801 | ) | ||||
Class B1 | — | (1,625,686 | ) | |||||
Class C | — | (21,796,903 | ) | |||||
Class I | (6,159,077 | ) | (87,511,921 | ) | ||||
Class R11 | (9,734 | ) | (794,580 | ) | ||||
Class R2 | (6,332 | ) | (176,373 | ) | ||||
Class R31 | (6,419 | ) | (333,868 | ) | ||||
Class R4 | (8,395 | ) | (140,309 | ) | ||||
Class R5 | (3,983 | ) | (48,849 | ) | ||||
Class R6 | (3,343,608 | ) | (61,032,548 | ) | ||||
Class NAV | (18,467,276 | ) | (197,840,192 | ) | ||||
Total distributions | (36,695,778 | ) | (537,895,030 | ) | ||||
From fund share transactions | (841,566,650 | ) | (157,801,460 | ) | ||||
Total decrease | (412,453,791 | ) | (78,384,339 | ) | ||||
Net assets | ||||||||
Beginning of year | 5,128,926,254 | 5,207,310,593 | ||||||
End of year | $4,716,472,463 | $5,128,926,254 |
1 | Share class was redesignated during the year. Refer to Note 5 for further details. |
15 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS A SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $46.52 | $46.66 | $51.87 | $42.42 | $42.89 | |||||||||||||||
Net investment income1 | 0.20 | 0.24 | 0.16 | 0.24 | 0.23 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.38 | 4.82 | (1.10 | ) | 10.71 | (0.07 | ) | |||||||||||||
Total from investment operations | 4.58 | 5.06 | (0.94 | ) | 10.95 | 0.16 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.26 | ) | (0.13 | ) | (0.26 | ) | (0.19 | ) | (0.12 | ) | ||||||||||
From net realized gain | — | (5.07 | ) | (4.01 | ) | (1.31 | ) | (0.51 | ) | |||||||||||
Total distributions | (0.26 | ) | (5.20 | ) | (4.27 | ) | (1.50 | ) | (0.63 | ) | ||||||||||
Net asset value, end of period | $50.84 | $46.52 | $46.66 | $51.87 | $42.42 | |||||||||||||||
Total return (%)2,3 | 9.88 | 13.23 | (2.20 | ) | 26.39 | 0.37 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1,550 | $1,550 | $1,511 | $1,620 | $1,519 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.04 | 1.03 | 1.03 | 1.04 | 1.06 | |||||||||||||||
Expenses including reductions | 1.03 | 1.02 | 1.02 | 1.04 | 1.05 | |||||||||||||||
Net investment income | 0.40 | 0.56 | 0.32 | 0.51 | 0.57 | |||||||||||||||
Portfolio turnover (%) | 19 | 29 | 4 | 47 | 4 | 54 | 4 | 20 | 5 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
4 | Excludes in-kind transactions. |
5 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 16 |
Table of Contents
|
CLASS C SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $40.42 | $41.41 | $46.57 | $38.33 | $38.98 | |||||||||||||||
Net investment loss1 | (0.14 | ) | (0.07 | ) | (0.19 | ) | (0.10 | ) | (0.07 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 3.80 | 4.15 | (0.96 | ) | 9.65 | (0.07 | ) | |||||||||||||
Total from investment operations | 3.66 | 4.08 | (1.15 | ) | 9.55 | (0.14 | ) | |||||||||||||
Less distributions | ||||||||||||||||||||
From net realized gain | — | (5.07 | ) | (4.01 | ) | (1.31 | ) | (0.51 | ) | |||||||||||
Net asset value, end of period | $44.08 | $40.42 | $41.41 | $46.57 | $38.33 | |||||||||||||||
Total return (%)2,3 | 9.05 | 12.38 | (2.93 | ) | 25.44 | (0.37 | ) | |||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $84 | $127 | $184 | $303 | $290 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.79 | 1.78 | 1.78 | 1.79 | 1.81 | |||||||||||||||
Expenses including reductions | 1.78 | 1.77 | 1.77 | 1.79 | 1.80 | |||||||||||||||
Net investment loss | (0.33 | ) | (0.17 | ) | (0.42 | ) | (0.23 | ) | (0.18 | ) | ||||||||||
Portfolio turnover (%) | 19 | 29 | 4 | 47 | 4 | 54 | 4 | 20 | 5 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
4 | Excludes in-kind transactions. |
5 | Excludes merger activity. |
17 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS I SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $48.89 | $48.78 | $54.05 | $44.13 | $44.58 | |||||||||||||||
Net investment income1 | 0.34 | 0.37 | 0.29 | 0.40 | 0.36 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.61 | 5.07 | (1.15 | ) | 11.12 | (0.08 | ) | |||||||||||||
Total from investment operations | 4.95 | 5.44 | (0.86 | ) | 11.52 | 0.28 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.37 | ) | (0.26 | ) | (0.40 | ) | (0.29 | ) | (0.22 | ) | ||||||||||
From net realized gain | — | (5.07 | ) | (4.01 | ) | (1.31 | ) | (0.51 | ) | |||||||||||
Total distributions | (0.37 | ) | (5.33 | ) | (4.41 | ) | (1.60 | ) | (0.73 | ) | ||||||||||
Net asset value, end of period | $53.47 | $48.89 | $48.78 | $54.05 | $44.13 | |||||||||||||||
Total return (%)2 | 10.16 | 13.51 | (1.97 | ) | 26.73 | 0.63 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $625 | $819 | $846 | $985 | $1,665 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 0.79 | 0.79 | 0.79 | 0.78 | 0.79 | |||||||||||||||
Expenses including reductions | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | |||||||||||||||
Net investment income | 0.66 | 0.81 | 0.56 | 0.82 | 0.84 | |||||||||||||||
Portfolio turnover (%) | 19 | 29 | 3 | 47 | 3 | 54 | 3 | 20 | 4 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Excludes in-kind transactions. |
4 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 18 |
Table of Contents
|
CLASS R2 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $48.63 | $48.51 | $53.77 | $43.93 | $44.40 | |||||||||||||||
Net investment income1 | 0.13 | 0.19 | 0.12 | 0.18 | 0.18 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.59 | 5.06 | (1.18 | ) | 11.10 | (0.08 | ) | |||||||||||||
Total from investment operations | 4.72 | 5.25 | (1.06 | ) | 11.28 | 0.10 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.19 | ) | (0.06 | ) | (0.19 | ) | (0.13 | ) | (0.06 | ) | ||||||||||
From net realized gain | — | (5.07 | ) | (4.01 | ) | (1.31 | ) | (0.51 | ) | |||||||||||
Total distributions | (0.19 | ) | (5.13 | ) | (4.20 | ) | (1.44 | ) | (0.57 | ) | ||||||||||
Net asset value, end of period | $53.16 | $48.63 | $48.51 | $53.77 | $43.93 | |||||||||||||||
Total return (%)2 | 9.73 | 13.09 | (2.36 | ) | 26.22 | 0.24 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $7 | $2 | $2 | $3 | $3 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.17 | 1.18 | 1.18 | 1.18 | 1.20 | |||||||||||||||
Expenses including reductions | 1.17 | 1.17 | 1.18 | 1.18 | 1.19 | |||||||||||||||
Net investment income | 0.28 | 0.41 | 0.23 | 0.36 | 0.43 | |||||||||||||||
Portfolio turnover (%) | 19 | 29 | 3 | 47 | 3 | 54 | 3 | 20 | 4 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Excludes in-kind transactions. |
4 | Excludes merger activity. |
19 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS R4 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $48.61 | $48.51 | $53.76 | $43.91 | $44.37 | |||||||||||||||
Net investment income1 | 0.26 | 0.36 | 0.20 | 0.30 | 0.29 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.59 | 4.99 | (1.13 | ) | 11.09 | (0.08 | ) | |||||||||||||
Total from investment operations | 4.85 | 5.35 | (0.93 | ) | 11.39 | 0.21 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.31 | ) | (0.18 | ) | (0.31 | ) | (0.23 | ) | (0.16 | ) | ||||||||||
From net realized gain | — | (5.07 | ) | (4.01 | ) | (1.31 | ) | (0.51 | ) | |||||||||||
Total distributions | (0.31 | ) | (5.25 | ) | (4.32 | ) | (1.54 | ) | (0.67 | ) | ||||||||||
Net asset value, end of period | $53.15 | $48.61 | $48.51 | $53.76 | $43.91 | |||||||||||||||
Total return (%)2 | 10.00 | 13.35 | (2.10 | ) | 26.53 | 0.47 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $2 | $1 | $4 | $3 | $2 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.02 | 1.03 | 1.03 | 1.04 | 1.04 | |||||||||||||||
Expenses including reductions | 0.92 | 0.92 | 0.92 | 0.93 | 0.93 | |||||||||||||||
Net investment income | 0.51 | 0.77 | 0.39 | 0.61 | 0.69 | |||||||||||||||
Portfolio turnover (%) | 19 | 29 | 3 | 47 | 3 | 54 | 3 | 20 | 4 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Excludes in-kind transactions. |
4 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 20 |
Table of Contents
|
CLASS R5 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $49.02 | $48.89 | $54.14 | $44.20 | $44.64 | |||||||||||||||
Net investment income1 | 0.36 | 0.40 | 0.34 | 0.38 | 0.38 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.63 | 5.08 | (1.17 | ) | 11.18 | (0.08 | ) | |||||||||||||
Total from investment operations | 4.99 | 5.48 | (0.83 | ) | 11.56 | 0.30 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.40 | ) | (0.28 | ) | (0.41 | ) | (0.31 | ) | (0.23 | ) | ||||||||||
From net realized gain | — | (5.07 | ) | (4.01 | ) | (1.31 | ) | (0.51 | ) | |||||||||||
Total distributions | (0.40 | ) | (5.35 | ) | (4.42 | ) | (1.62 | ) | (0.74 | ) | ||||||||||
Net asset value, end of period | $53.61 | $49.02 | $48.89 | $54.14 | $44.20 | |||||||||||||||
Total return (%)2 | 10.22 | 13.60 | (1.92 | ) | 26.77 | 0.68 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1 | $— | 3 | $— | 3 | $2 | $1 | |||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 0.73 | 0.73 | 0.73 | 0.74 | 0.75 | |||||||||||||||
Expenses including reductions | 0.72 | 0.72 | 0.72 | 0.73 | 0.74 | |||||||||||||||
Net investment income | 0.71 | 0.86 | 0.64 | 0.77 | 0.90 | |||||||||||||||
Portfolio turnover (%) | 19 | 29 | 4 | 47 | 4 | 54 | 4 | 20 | 5 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Less than $500,000. |
4 | Excludes in-kind transactions. |
5 | Excludes merger activity. |
21 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $49.04 | $48.91 | $54.16 | $44.21 | $44.64 | |||||||||||||||
Net investment income1 | 0.39 | 0.45 | 0.34 | 0.28 | 0.40 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.63 | 5.05 | (1.15 | ) | 11.31 | (0.07 | ) | |||||||||||||
Total from investment operations | 5.02 | 5.50 | (0.81 | ) | 11.59 | 0.33 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.42 | ) | (0.30 | ) | (0.43 | ) | (0.33 | ) | (0.25 | ) | ||||||||||
From net realized gain | — | (5.07 | ) | (4.01 | ) | (1.31 | ) | (0.51 | ) | |||||||||||
Total distributions | (0.42 | ) | (5.37 | ) | (4.44 | ) | (1.64 | ) | (0.76 | ) | ||||||||||
Net asset value, end of period | $53.64 | $49.04 | $48.91 | $54.16 | $44.21 | |||||||||||||||
Total return (%)2 | 10.28 | 13.63 | (1.85 | ) | 26.86 | 0.76 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $386 | $397 | $963 | $975 | $12 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 0.68 | 0.68 | 0.68 | 0.69 | 0.70 | |||||||||||||||
Expenses including reductions | 0.67 | 0.67 | 0.67 | 0.68 | 0.68 | |||||||||||||||
Net investment income | 0.76 | 0.96 | 0.66 | 0.57 | 0.93 | |||||||||||||||
Portfolio turnover (%) | 19 | 29 | 3 | 47 | 3 | 54 | 3 | 20 | 4 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Excludes in-kind transactions. |
4 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 22 |
Table of Contents
|
CLASS NAV SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-171 | ||||||||||||
Per share operating performance | ||||||||||||||||
Net asset value, beginning of period | $49.02 | $48.90 | $54.15 | $47.04 | ||||||||||||
Net investment income2 | 0.40 | 0.42 | 0.33 | 0.35 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 4.63 | 5.07 | (1.13 | ) | 6.76 | |||||||||||
Total from investment operations | 5.03 | 5.49 | (0.80 | ) | 7.11 | |||||||||||
Less distributions | ||||||||||||||||
From net investment income | (0.43 | ) | (0.30 | ) | (0.44 | ) | — | |||||||||
From net realized gain | — | (5.07 | ) | (4.01 | ) | — | ||||||||||
Total distributions | (0.43 | ) | (5.37 | ) | (4.45 | ) | — | |||||||||
Net asset value, end of period | $53.62 | $49.02 | $48.90 | $54.15 | ||||||||||||
Total return (%)3 | 10.30 | 13.65 | (1.85 | ) | 15.11 | 4 | ||||||||||
Ratios and supplemental data | ||||||||||||||||
Net assets, end of period (in millions) | $2,063 | $2,218 | $1,671 | $1,152 | ||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||
Expenses before reductions | 0.67 | 0.67 | 0.67 | 0.68 | 5 | |||||||||||
Expenses including reductions | 0.66 | 0.66 | 0.66 | 0.67 | 5 | |||||||||||
Net investment income | 0.78 | 0.91 | 0.64 | 0.94 | 5 | |||||||||||
Portfolio turnover (%) | 19 | 29 | 6 | 47 | 6 | 54 | 6,7 |
1 | The inception date for Class NAV shares is 2-8-17. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
6 | Excludes in-kind transactions. |
7 | The portfolio turnover is shown for the period from 11-1-16 to 10-31-17. |
23 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Note 1 — Organization
John Hancock Fundamental Large Cap Core Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R2, Class R4 and Class R5 shares are available only to certain retirement and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply).
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds are valued at their respective NAVs each business day. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 24 |
Table of Contents
|
NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund’s Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2020, by major security category or type:
Level 2 | Level 3 | |||||||||||||||
Total | Level 1 | significant | significant | |||||||||||||
value at | quoted | observable | unobservable | |||||||||||||
10-31-20 | price | inputs | inputs | |||||||||||||
Investments in securities: | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | ||||||||||||||||
Communication services | $933,232,956 | $933,232,956 | — | — | ||||||||||||
Consumer discretionary | 843,824,803 | 843,824,803 | — | — | ||||||||||||
Consumer staples | 274,257,507 | 213,686,351 | $60,571,156 | — | ||||||||||||
Energy | 241,635,151 | 241,635,151 | — | — | ||||||||||||
Financials | 741,475,973 | 741,475,973 | — | — | ||||||||||||
Health care | 356,717,713 | 356,717,713 | — | — | ||||||||||||
Industrials | 260,538,170 | 260,538,170 | — | — | ||||||||||||
Information technology | 858,699,457 | 858,699,457 | — | — | ||||||||||||
Materials | 39,027,863 | 39,027,863 | — | — | ||||||||||||
Real estate | 147,558,432 | 147,558,432 | — | — | ||||||||||||
Short-term investments | 19,620,579 | 19,620,579 | — | — | ||||||||||||
Total investments in securities | $4,716,588,604 | $4,656,017,448 | $60,571,156 | — |
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of the fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
25 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $20,330.
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 26 |
Table of Contents
|
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2020, the fund has a short-term capital loss carryforward of $88,430,781 and a long-term capital loss carryforward of $22,058,590 available to offset future net realized capital gains. These carryforwards do not expire.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2020 and 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||||
Ordinary income | $36,695,778 | $54,800,927 | ||||||
Long-term capital gains | — | 483,094,103 | ||||||
Total | $36,695,778 | $537,895,030 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $22,541,112 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals.
Note 3 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
27 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
Note 4 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a monthly management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.625% of the first $3 billion of the fund’s average daily net assets and (b) 0.600% of the fund’s average daily net assets in excess of $3 billion. The Advisor has a subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of Manulife Financial Corporation and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to waive and/or reimburse a portion of the operating expenses for Class B, Class C and Class I shares of the fund to the extent they exceed 1.82%,1.82% and 0.78%, respectively, of the average daily net assets attributable to each class. These waivers and/or reimbursements exclude taxes, brokerage commissions, interest expense, acquired fund fees and expenses paid indirectly, short dividend expense, litigation and indemnification expenses not incurred in the ordinary course of the fund’s business, borrowing costs, and prime brokerage fees. The waivers and/or reimbursements will continue in effect until February 28, 2021, unless renewed by mutual agreement of the fund and Advisor based upon determination of that this is appropriate under the circumstances at the time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $109,850 | |||
Class B | 337 | |||
Class C | 7,536 | |||
Class I | 57,225 | |||
Class R1 | 388 | |||
Class R2 | 126 |
Class | Expense reduction | |||
Class R3 | $119 | |||
Class R4 | 101 | |||
Class R5 | 35 | |||
Class R6 | 28,038 | |||
Class NAV | 150,547 | |||
Total | $354,302 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 0.61% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 28 |
Table of Contents
|
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for certain classes as detailed below, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | Service fee | ||||||
Class A | 0.25 | % | — | |||||
Class B | 1.00 | % | — | |||||
Class C | 1.00 | % | — | |||||
Class R1 | 0.50 | % | 0.25 | % | ||||
Class R2 | 0.25 | % | 0.25 | % | ||||
Class R3 | 0.50 | % | 0.15 | % | ||||
Class R4 | 0.25 | % | 0.10 | % | ||||
Class R5 | — | 0.05 | % |
Class B, Class R1, and Class R3 were redesignated during the year. Refer to Note 5 for further details.
The fund’s Distributor has contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on February 28, 2021, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $1,415 for Class R4 shares for the year ended October 31, 2020.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $700,348 for the year ended October 31, 2020. Of this amount, $115,463 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $584,885 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a
1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, CDSCs received by the Distributor amounted to $4,032 and $4,523 for Class A and Class C shares, respectively.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
29 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $3,853,166 | $1,912,655 | ||||||
Class B | 47,152 | 5,860 | ||||||
Class C | 1,058,003 | 131,738 | ||||||
Class I | — | 901,358 | ||||||
Class R1 | 38,845 | 699 | ||||||
Class R2 | 8,502 | 218 | ||||||
Class R3 | 9,919 | 217 | ||||||
Class R4 | 4,905 | 181 | ||||||
Class R5 | 240 | 63 | ||||||
Class R6 | — | 50,448 | ||||||
Total | $5,020,732 | $3,003,437 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5 — Fund share transactions
Transactions in fund shares for the years ended October 31, 2020 and 2019 were as follows:
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares | ||||||||||||||||
Sold | 2,831,061 | $133,985,057 | 2,880,809 | $124,503,972 | ||||||||||||
Distributions reinvested | 169,649 | 8,252,431 | 4,156,148 | 159,263,545 | ||||||||||||
Repurchased | (5,837,431 | ) | (269,888,613 | ) | (6,105,918 | ) | (263,763,987 | ) | ||||||||
Net increase (decrease) | (2,836,721 | ) | $(127,651,125 | ) | 931,039 | $20,003,530 | ||||||||||
Class B shares | ||||||||||||||||
Sold | 1,613 | $53,483 | 8,617 | $310,615 | ||||||||||||
Distributions reinvested | — | — | 44,534 | 1,493,241 | ||||||||||||
Repurchased | (171,543 | ) | (7,461,712 | ) | (229,391 | ) | (8,600,688 | ) | ||||||||
Net decrease | (169,930 | ) | $(7,408,229 | ) | (176,240 | ) | $(6,796,832 | ) | ||||||||
Class C shares | ||||||||||||||||
Sold | 161,433 | $6,190,614 | 346,846 | $12,426,846 | ||||||||||||
Distributions reinvested | — | — | 533,625 | 17,887,100 | ||||||||||||
Repurchased | (1,403,067 | ) | (58,161,115 | ) | (2,186,761 | ) | (82,319,845 | ) | ||||||||
Net decrease | (1,241,634 | ) | $(51,970,501 | ) | (1,306,290 | ) | $(52,005,899 | ) |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 30 |
Table of Contents
|
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class I shares | ||||||||||||||||
Sold | 2,698,348 | $125,424,854 | 5,276,808 | $236,100,966 | ||||||||||||
Distributions reinvested | 103,273 | 5,271,078 | 1,783,844 | 71,692,687 | ||||||||||||
Repurchased | (7,867,529 | ) | (375,978,914 | ) | (7,658,620 | ) | (343,181,695 | ) | ||||||||
Net decrease | (5,065,908 | ) | $(245,282,982) | (597,968 | ) | $(35,388,042) | ||||||||||
Class R1 shares | ||||||||||||||||
Sold | 42,997 | $2,117,756 | 32,949 | $1,428,331 | ||||||||||||
Distributions reinvested | 147 | 7,374 | 12,656 | 501,180 | ||||||||||||
Repurchased | (160,040 | ) | (8,620,923 | ) | (86,289 | ) | (3,952,728 | ) | ||||||||
Net decrease | (116,896 | ) | $(6,495,793) | (40,684 | ) | $(2,023,217) | ||||||||||
Class R2 shares | ||||||||||||||||
Sold | 115,053 | $6,453,246 | 6,388 | $282,209 | ||||||||||||
Distributions reinvested | 112 | 5,702 | 3,794 | 152,178 | ||||||||||||
Repurchased | (12,379 | ) | (631,730 | ) | (12,712 | ) | (590,668 | ) | ||||||||
Net increase (decrease) | 102,786 | $5,827,218 | (2,530 | ) | $(156,281) | |||||||||||
Class R3 shares | ||||||||||||||||
Sold | 2,878 | $142,383 | 4,340 | $196,401 | ||||||||||||
Distributions reinvested | 126 | 6,346 | 8,326 | 330,943 | ||||||||||||
Repurchased | (53,549 | ) | (2,906,676 | ) | (27,411 | ) | (1,254,708 | ) | ||||||||
Net decrease | (50,545 | ) | $(2,757,947) | (14,745 | ) | $(727,364) | ||||||||||
Class R4 shares | ||||||||||||||||
Sold | 3,473 | $168,412 | 2,468 | $114,078 | ||||||||||||
Distributions reinvested | 165 | 8,395 | 3,507 | 140,309 | ||||||||||||
Repurchased | (2,150 | ) | (108,629 | ) | (61,102 | ) | (2,832,169 | ) | ||||||||
Net increase (decrease) | 1,488 | $68,178 | (55,127 | ) | $(2,577,782) | |||||||||||
Class R5 shares | ||||||||||||||||
Sold | 1,590 | $82,405 | 1,314 | $60,748 | ||||||||||||
Distributions reinvested | 78 | 3,983 | 1,213 | 48,849 | ||||||||||||
Repurchased | (1,808 | ) | (89,246 | ) | (1,881 | ) | (85,099 | ) | ||||||||
Net increase (decrease) | (140 | ) | $(2,858) | 646 | $24,498 | |||||||||||
Class R6 shares | ||||||||||||||||
Sold | 1,831,436 | $91,863,847 | 1,638,116 | $75,102,429 | ||||||||||||
Distributions reinvested | 64,964 | 3,322,886 | 1,509,503 | 60,802,785 | ||||||||||||
Repurchased | (2,785,351 | ) | (141,278,426 | ) | (14,751,640 | ) | (692,851,752 | ) | ||||||||
Net decrease | (888,951 | ) | $(46,091,693 | ) | (11,604,021 | ) | $(556,946,538 | ) |
31 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
Year Ended 10-31-20
| Year Ended 10-31-19
| |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class NAV shares | ||||||||||||||||
Sold | 3,564,280 | $160,182,393 | 12,849,653 | $591,980,675 | 1 | |||||||||||
Distributions reinvested | 361,183 | 18,467,276 | 4,914,063 | 197,840,192 | ||||||||||||
Repurchased | (10,693,110 | ) | (538,450,587 | ) | (6,699,355 | ) | (311,028,400 | ) | ||||||||
Net increase (decrease) | (6,767,647 | ) | $(359,800,918 | ) | 11,064,361 | $478,792,467 | ||||||||||
Total net decrease | (17,034,098 | ) | $(841,566,650 | ) | (1,801,559 | ) | $(157,801,460 | ) |
1 | Includes in-kind subscriptions of approximately $66.6 million by affiliates of the fund. The cost basis of the contributed securities is equal to the market value of the securities on the date of the subscription. |
Affiliates of the fund owned 1% and 100% of shares of Class R6 and Class NAV, respectively, on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
On June 25, 2020, the Board of Trustees approved redesignations of certain share classes. As a result of the redesignations, Class B, Class R1, and Class R3 were terminated, and shareholders in these classes became shareholders of the respective classes identified below, in each case with the same or lower total net expenses. The following amounts are included in the amount repurchased of the terminated classes and the amount sold of the redesignated classes.
Redesignation | Effective date | Amount | ||
Class R3 shares as Class R2 shares | October 9, 2020 | $1,230,959 | ||
Class B shares as Class A shares | October 14, 2020 | $3,593,081 | ||
Class R1 shares as Class R2 shares | October 23, 2020 | $4,358,310 |
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $928,275,085 and $1,683,266,038, respectively, for the year ended October 31, 2020.
Note 7 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2020, funds within the John Hancock group of funds complex held 41.9% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
Portfolio | Affiliated Concentration | |||
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 9.0 | % | ||
John Hancock Variable Insurance Trust Managed Volatility Growth Portfolio | 8.5 | % | ||
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 6.4 | % | ||
John Hancock Variable Insurance Trust Managed Volatility Balanced Portfolio | 5.5 | % |
Note 8 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 32 |
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Fundamental Large Cap Core Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Fundamental Large Cap Core Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statements of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
33 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 34 |
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Manulife Investment Management (US) LLC (the Subadvisor) for John Hancock Fundamental Large Cap Core Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board noted the affiliation of the Subadvisor with the Advisor, noting any potential conflicts of interest. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
1On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the “Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
35 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 36 |
Table of Contents
|
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index for the one-year period and underperformed its benchmark index for the three-, five- and ten-year periods ended December 31, 2019. The Board also noted that the fund outperformed the peer group median for the one- and five-year periods and underperformed the peer group median for the three- and ten-year periods ended December 31, 2019.The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to the benchmark index for the one-year period and to the peer group median for the one- and five-year periods. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are higher than the peer group median and net total expenses for the fund are lower than the peer group median.
37 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board also noted that the fund’s distributor, an affiliate of the Advisor, has agreed to waive a portion of its Rule 12b-1 fee for a share class of the fund. The Board noted that the fund has a voluntary fee waiver and/or expense reimbursement, which reduces certain expenses of the fund. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates (including the Subadvisor) from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the fund’s Subadvisor is an affiliate of the Advisor; |
(i) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(j) | noted that the subadvisory fee for the fund is paid by the Advisor; |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 38 |
Table of Contents
|
(k) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(l) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates (including the Subadvisor) from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as
39 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 40 |
Table of Contents
|
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
41 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees | ||||
Name, year of birth | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee | ||
Position(s) held with Trust | ||||
Principal occupation(s) and other | ||||
directorships during past 5 years |
Hassell H. McClellan, Born: 1945 | 2012 | 196 |
Trustee and Chairperson of the Board
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 |
Trustee
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015 | 196 |
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 |
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 |
Trustee
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 |
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).
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 42 |
Table of Contents
|
Independent Trustees (continued) | ||||
Name, year of birth | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years | since1 | Trustee |
Deborah C. Jackson, Born: 1952 | 2008 | 196 |
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946 | 2012 | 196 |
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994 | 196 |
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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 | 196 |
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
43 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
Independent Trustees (continued) | ||||
Name, year of birth | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee | ||
Position(s) held with Trust | ||||
Principal occupation(s) and other | ||||
directorships during past 5 years |
Gregory A. Russo, Born: 1949 | 2009 | 196 |
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 | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years | since1 | Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 196 |
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 44 |
Table of Contents
|
Principal officers who are not Trustees | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Officer of the Trust since | |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
Salvatore Schiavone, Born: 1965 | 2010 |
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 |
Chief Legal Officer and Secretary
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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).
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
45 | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | ANNUAL REPORT |
Table of Contents
|
Trustees | Investment advisor | |
Hassell H. McClellan, Chairperson | John Hancock Investment Management LLC | |
Steven R. Pruchansky, Vice Chairperson | ||
Andrew G. Arnott† | Subadvisor | |
Charles L. Bardelis* | Manulife Investment Management (US) LLC | |
James R. Boyle | ||
Peter S. Burgess* | Portfolio Managers | |
William H. Cunningham | Emory W. (Sandy) Sanders, Jr., CFA | |
Grace K. Fey | Jonathan T. White, CFA | |
Marianne Harrison† | ||
Deborah C. Jackson | Principal distributor | |
James M. Oates* | John Hancock Investment Management | |
Frances G. Rathke1,* | Distributors LLC | |
Gregory A. Russo | ||
Custodian | ||
Officers | Citibank, N.A. | |
Andrew G. Arnott | ||
President | Transfer agent | |
Charles A. Rizzo | John Hancock Signature Services, Inc. | |
Chief Financial Officer | ||
Salvatore Schiavone | Legal counsel | |
Treasurer | K&L Gates LLP | |
Christopher (Kit) Sechler | ||
Secretary and Chief Legal Officer | Independent registered public accounting firm | |
Trevor Swanberg2 | PricewaterhouseCoopers LLP | |
Chief Compliance Officer |
* Member of the Audit Committee
† Non-Independent Trustee
1 Appointed as Independent Trustee effective as of
September 15, 2020
2 Effective July 31, 2020
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407
|
ANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP CORE FUND | 46 |
Table of Contents
Protect yourself by using eDelivery
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
| ||||||||
∎ | Added security: Password protection helps you safely retrieve documents online | |||||||
∎ | Save time: Receive instant email notification once statements are available
| |||||||
∎ | Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling | |||||||
SIGN UP FOR EDELIVERY TODAY!
|
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report
Table of Contents
Get your questions answered by using our shareholder resources
ONLINE
| ||||||
∎ | Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |||||
∎ | Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |||||
∎ | Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |||||
∎ | Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. | |||||
BY PHONE
| ||||||
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00 A.M. to 7:00 P.M., and Friday, 8:00 A.M. to 6:00 P.M., Eastern time. We’re here to help! |
Not part of the shareholder report
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and
Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock Fundamental Large Cap Core Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399343 | 50A 10/20 | |||
12/2020 |
Table of Contents
Table of Contents
Dear shareholders,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. The governments of many nations worked to shore up their economies, and equity markets began to rise from their first-quarter sell-off; this comeback gathered momentum for the remainder of the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain parts of the world have been reinstated and consumer spending remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott |
President and CEO, |
John Hancock Investment Management |
Head of Wealth and Asset Management, |
United States and Europe |
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
John Hancock
Seaport Long/Short Fund
Table of contents | ||||||
2 | Your fund at a glance | |||||
5 | Manager’s discussion of fund performance | |||||
7 | A look at performance | |||||
9 | ||||||
11 | ||||||
113 | ||||||
117 | ||||||
122 | ||||||
136 | ||||||
137 | ||||||
138 | Continuation of investment advisory and subadvisory agreements | |||||
145 | ||||||
149 | ||||||
1 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 2 |
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Global equities delivered positive returns | ||||
After plunging in the first calendar quarter of 2020, stocks staged an impressive rebound on the strength of substantial fiscal and monetary stimulus. | ||||
The fund outpaced the MSCI World Index | ||||
The fund’s strategy cushioned the impact of the sell-off in February and March 2020, leading to outperformance for the full period. | ||||
The fund’s long positions were the primary driver of performance in the rising market | ||||
Its short positions, while adding value in the downturn, finished with a negative return for the full period. |
PORTFOLIO COMPOSITION AS OF 10/31/2020 (% of net assets) | ||||||||
| ||||||||
Common stocks | 59.2 | |||||||
| ||||||||
Health care | 14.8 | |||||||
| ||||||||
Financials | 13.4 | |||||||
| ||||||||
Information technology | 10.8 | |||||||
| ||||||||
Consumer discretionary | 5.6 | |||||||
| ||||||||
Communication services | 4.7 | |||||||
| ||||||||
Industrials | 4.5 | |||||||
| ||||||||
Utilities | 2.2 | |||||||
| ||||||||
Real estate | 1.3 | |||||||
| ||||||||
Energy | 1.2 | |||||||
| ||||||||
Materials | 0.6 | |||||||
| ||||||||
Consumer staples | 0.1 | |||||||
| ||||||||
Preferred securities | 0.6 | |||||||
| ||||||||
Purchased options | 0.6 | |||||||
| ||||||||
Convertible bonds | 0.1 | |||||||
| ||||||||
Short-term investments and other | 39.5 | |||||||
| ||||||||
TOTAL | 100.0 |
3 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 4 |
Table of Contents
Manager’s discussion of fund performance
|
Can you describe the market environment during the 12 months ended October 31, 2020?
Although the fund’s benchmark, the MSCI World Index, posted a narrow gain for the period, stocks were in fact quite volatile. After performing well in the span from November to mid-February, the global equity markets fell sharply in reaction to the spread of COVID-19 and the associated downturn in economic growth. Stocks regained their footing in late March following significant stimulus from global governments and central banks, and the rally carried through the end of the period as investors gained a better understanding about the effects of the coronavirus.
Equities traded lower in September and October amid concerns about rising COVID-19 cases and uncertainty surrounding the U.S. elections, but the index nonetheless finished the reporting period in positive territory.
What aspects of the fund’s positioning helped and hurt relative performance?
The fund is a diversified long/short equity portfolio that combines five distinct strategies: healthcare (targeted at 23% of assets as of period end), diversified equity (22%), capital cycles (20%), financials (19%), and technology (16%).
The fund’s outperformance was largely the result of its strong relative showing in the sell-off of February and March of 2020. While the fund lost ground in this time,
TOP 10 HOLDINGS AS OF 10/31/2020 (% of net assets) | COUNTRY COMPOSITION AS OF 10/31/2020 (% of net assets) | |||||||||||||||||||
Intact Financial Corp. | 1.4 |
United States | 73.1 | |||||||||||||||||
Baidu, Inc., ADR | 0.9 | China | 5.1 | |||||||||||||||||
Workday, Inc., Class A | 0.9 | Canada | 2.5 | |||||||||||||||||
Alibaba Group Holding, Ltd., ADR | 0.8 | United Kingdom | 2.4 | |||||||||||||||||
Tencent Holdings, Ltd. | 0.7 | India | 2.0 | |||||||||||||||||
Power Grid Corp. of India, Ltd. | 0.7 | France | 1.9 | |||||||||||||||||
ServiceNow, Inc. | 0.7 | Hong Kong | 1.8 | |||||||||||||||||
Engie SA | 0.7 | Japan | 1.6 | |||||||||||||||||
Danaher Corp. | 0.7 | Bermuda | 1.1 | |||||||||||||||||
Alphabet, Inc., Class C | 0.6 | Taiwan | 1.1 | |||||||||||||||||
TOTAL | 8.1 | Other countries | 7.4 | |||||||||||||||||
TOTAL | 100.0 | |||||||||||||||||||
Cash and cash equivalents are not included.
| ||||||||||||||||||||
5 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
its decline was far below that of the broader market due to the positive return for its short positions. As of period end, the fund’s beta (sensitivity to movements of the index) for the trailing five-year period was 0.48, less than half of the volatility of the broader market. Its standard deviation (another measure of volatility) was also less than the index, limiting volatility and downside risk. |
MANAGED BY
The Seaport Long/Short Fund is managed by a team of portfolio managers at Wellington Management.
| |
The fund’s long portfolio gained approximately 22.4% during the period, while its short positions returned a loss of 14.2%. Within the long portfolio, Forty Seven, Inc., Alibaba Group Holding, Ltd., and Amazon.com, Inc. were among the leading individual contributors. Renesas Electronics Corp., American Express Company, and Kasikornbank PCL were notable detractors. We sold the fund’s holdings in Forty Seven prior to period end.
Can you tell us about a recent manager change and an upcoming manager change?
Effective July 1, 2020, Portfolio Manager John F. Averill left the management team. Effective July 1, 2021, Portfolio Manager Jean M. Hynes, CFA, will be leaving the management team and Rebecca D. Sykes, CFA, will be joining the team.
The views expressed in this report are exclusively those of Wellington Management Company LLP, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 6 |
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020 | ||||||||||||||||
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | |||||||||||||||
1-year | 5-year | Since inception (12-20-13) | 5-year | Since inception (12-20-13) | ||||||||||||
Class A | 0.84 | 2.95 | 3.32 | 15.66 | 25.10 | |||||||||||
Class C1 | 4.33 | 3.28 | 3.40 | 17.53 | 25.85 | |||||||||||
Class I2 | 6.57 | 4.34 | 4.43 | 23.66 | 34.67 | |||||||||||
Class R62 | 6.62 | 4.44 | 4.56 | 24.27 | 35.83 | |||||||||||
Class NAV2 | 6.64 | 4.46 | 4.58 | 24.40 | 35.97 | |||||||||||
Index† | 4.36 | 8.13 | 7.23 | 47.80 | 61.49 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5.00% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until July 31, 2022 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R6 | Class NAV | ||||||||
Gross (%) | 1.98 | 2.68 | 1.68 | 1.57 | 1.56 | |||||||
Net (%) | 1.97 | 2.67 | 1.67 | 1.56 | 1.55 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the MSCI World Index. |
See the following page for footnotes.
7 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Seaport Long/Short Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI World Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||||
Class C1,3 | 12-20-13 | 12,585 | 12,585 | 16,149 | ||||||||||||
Class I2 | 12-20-13 | 13,467 | 13,467 | 16,149 | ||||||||||||
Class R62 | 12-20-13 | 13,583 | 13,583 | 16,149 | ||||||||||||
Class NAV2 | 12-20-13 | 13,597 | 13,597 | 16,149 |
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | Class C shares were first offered on 5-16-14. Returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
2 | For certain types of investors, as described in the fund’s prospectuses. |
3 | The contingent deferred sales charge is not applicable. |
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 8 |
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return).It assumes an account value of $1,000.00 on May 1,2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
9 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account
|
Ending
|
Expenses
|
Annualized
| |||||||||||||||
Class A | Actual expenses/actual returns | $1,000.00 | $1,066.20 | $10.39 | 2.00% | |||||||||||||
Hypothetical example | 1,000.00 | 1,015.10 | 10.13 | 2.00% | ||||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,062.90 | 14.00 | 2.70% | |||||||||||||
Hypothetical example | 1,000.00 | 1,011.60 | 13.65 | 2.70% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,068.50 | 8.84 | 1.70% | |||||||||||||
Hypothetical example | 1,000.00 | 1,016.60 | 8.62 | 1.70% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,067.90 | 8.26 | 1.59% | |||||||||||||
Hypothetical example | 1,000.00 | 1,017.10 | 8.06 | 1.59% | ||||||||||||||
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,068.80 | 8.16 | 1.57% | |||||||||||||
Hypothetical example | 1,000.00 | 1,017.20 | 7.96 | 1.57% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 10 |
Table of Contents
|
AS OF 10-31-20 | ||||||||
Shares | Value | |||||||
Common stocks 59.2% | $431,915,964 | |||||||
(Cost $376,656,099) | ||||||||
Communication services 4.7% | 34,408,809 | |||||||
Diversified telecommunication services 0.6% | ||||||||
Cellnex Telecom SA (A)(B) | 5,150 | 330,583 | ||||||
China Unicom Hong Kong, Ltd. | 4,658,753 | 2,871,606 | ||||||
Helios Towers PLC (B) | 423,507 | 883,717 | ||||||
Entertainment 0.2% | ||||||||
Electronic Arts, Inc. (B) | 3,230 | 387,051 | ||||||
Netflix, Inc. (B) | 3,064 | 1,457,667 | ||||||
Interactive media and services 3.5% | ||||||||
Alphabet, Inc., Class A (B) | 1,219 | 1,970,038 | ||||||
Alphabet, Inc., Class C (B) | 2,629 | 4,261,635 | ||||||
Baidu, Inc., ADR (B) | 51,669 | 6,874,560 | ||||||
Facebook, Inc., Class A (B) | 1,289 | 339,149 | ||||||
Match Group, Inc. (B) | 23,712 | 2,769,087 | ||||||
Snap, Inc., Class A (B) | 67,515 | 2,659,416 | ||||||
Tencent Holdings, Ltd. | 71,480 | 5,461,473 | ||||||
Twitter, Inc. (B) | 35,044 | 1,449,420 | ||||||
Media 0.4% | ||||||||
Cardlytics, Inc. (B) | 14,505 | 1,070,759 | ||||||
Charter Communications, Inc., Class A (B) | 2,657 | 1,604,350 | ||||||
Wireless telecommunication services 0.0% | ||||||||
T-Mobile US, Inc. (B) | 167 | 18,298 | ||||||
Consumer discretionary 5.6% | 40,960,563 | |||||||
Automobiles 0.3% | ||||||||
Geely Automobile Holdings, Ltd. | 6,991 | 14,366 | ||||||
Great Wall Motor Company, Ltd., H Shares | 9,969 | 16,141 | ||||||
Guangzhou Automobile Group Company, Ltd., H Shares | 1,525,370 | 1,568,207 | ||||||
XPeng, Inc., ADR (B) | 35,115 | 680,529 | ||||||
Diversified consumer services 0.7% | ||||||||
Chegg, Inc. (B) | 49,301 | 3,620,665 | ||||||
Hope Education Group Company, Ltd. (A) | 6,051,387 | 1,426,602 | ||||||
Hotels, restaurants and leisure 0.5% | ||||||||
Bloomberry Resorts Corp. | 521,016 | 76,191 | ||||||
DraftKings, Inc., Class A (B) | 2,911 | 103,049 | ||||||
McDonald’s Corp. | 5,318 | 1,132,734 | ||||||
Penn National Gaming, Inc. (B) | 24,513 | 1,323,212 | ||||||
Sands China, Ltd. | 258,349 | 906,702 | ||||||
Wynn Macau, Ltd. (B) | 19,733 | 27,264 |
11 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
Consumer discretionary (continued) | ||||||||
Household durables 0.8% | ||||||||
Cavco Industries, Inc. (B) | 9,621 | $ | 1,656,159 | |||||
Haier Electronics Group Company, Ltd. | 349,401 | 1,331,996 | ||||||
Kaufman & Broad SA | 14,828 | 528,421 | ||||||
Lennar Corp., A Shares | 2,818 | 197,908 | ||||||
Skyline Champion Corp. (B) | 93,330 | 2,393,915 | ||||||
Internet and direct marketing retail 1.4% | ||||||||
Alibaba Group Holding, Ltd., ADR (B) | 20,110 | 6,127,316 | ||||||
Amazon.com, Inc. (B) | 250 | 759,038 | ||||||
Booking Holdings, Inc. (B) | 804 | 1,304,490 | ||||||
MercadoLibre, Inc. (B) | 1,777 | 2,157,367 | ||||||
Leisure products 0.7% | ||||||||
Bandai Namco Holdings, Inc. | 21,653 | 1,618,232 | ||||||
BRP, Inc. | 27,452 | 1,482,734 | ||||||
Polaris, Inc. | 5,253 | 477,288 | ||||||
Sturm Ruger & Company, Inc. | 18,073 | 1,208,361 | ||||||
Multiline retail 0.3% | ||||||||
Dollarama, Inc. | 50,651 | 1,744,253 | ||||||
Ollie’s Bargain Outlet Holdings, Inc. (B) | 8,190 | 713,267 | ||||||
Specialty retail 0.7% | ||||||||
Five Below, Inc. (B) | 7,330 | 977,382 | ||||||
Floor & Decor Holdings, Inc., Class A (B) | 18,931 | 1,381,963 | ||||||
The TJX Companies, Inc. | 47,191 | 2,397,303 | ||||||
Textiles, apparel and luxury goods 0.2% | ||||||||
Wolverine World Wide, Inc. | 60,274 | 1,607,508 | ||||||
Consumer staples 0.1% | 817,842 | |||||||
Beverages 0.1% | ||||||||
Constellation Brands, Inc., Class A | 4,411 | 728,830 | ||||||
Food products 0.0% | ||||||||
Archer-Daniels-Midland Company | 1,925 | 89,012 | ||||||
Energy 1.2% | 8,512,626 | |||||||
Energy equipment and services 0.1% | ||||||||
Cactus, Inc., Class A | 26,239 | 446,063 | ||||||
China Oilfield Services, Ltd., H Shares | 20,000 | 12,078 | ||||||
Oil, gas and consumable fuels 1.1% | ||||||||
ARC Resources, Ltd. | 197,887 | 974,359 | ||||||
CNOOC, Ltd. | 15,500 | 14,182 | ||||||
NAC Kazatomprom JSC, GDR | 77,067 | 1,094,559 | ||||||
Royal Dutch Shell PLC, A Shares | 58,527 | 745,914 | ||||||
Suncor Energy, Inc. (C) | 57,185 | 645,619 | ||||||
Targa Resources Corp. (C) | 95,282 | 1,529,276 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 12 |
Table of Contents
|
Shares | Value | |||||||
Energy (continued) | ||||||||
Oil, gas and consumable fuels (continued) | ||||||||
TOTAL SE | 42,357 | $1,283,278 | ||||||
Viper Energy Partners LP | 120,586 | 845,308 | ||||||
Whiting Petroleum Corp. (B)(C) | 63,150 | 921,990 | ||||||
Financials 13.4% | 97,771,204 | |||||||
Banks 3.8% | ||||||||
Australia & New Zealand Banking Group, Ltd. | 77,263 | 1,025,329 | ||||||
Axis Bank, Ltd. (B) | 272,391 | 1,800,079 | ||||||
Banc of California, Inc. | 3,499 | 41,988 | ||||||
Bank of America Corp. | 52,661 | 1,248,066 | ||||||
BAWAG Group AG (A) | 8,284 | 303,182 | ||||||
Citizens Financial Group, Inc. | 99,189 | 2,702,900 | ||||||
Credicorp, Ltd. | 10,381 | 1,190,493 | ||||||
DNB ASA | 9,293 | 125,500 | ||||||
Halyk Savings Bank of Kazakhstan JSC, GDR (B) | 4,456 | 44,471 | ||||||
Heritage Commerce Corp. | 49,166 | 356,454 | ||||||
ICICI Bank, Ltd. (B) | 691,265 | 3,644,415 | ||||||
Itau Unibanco Holding SA, ADR | 188,797 | 772,180 | ||||||
Kasikornbank PCL | 987,100 | 2,377,301 | ||||||
KB Financial Group, Inc. | 731 | 26,148 | ||||||
Kotak Mahindra Bank, Ltd. (B) | 86,599 | 1,804,391 | ||||||
Lloyds Banking Group PLC (B) | 3,034,828 | 1,105,001 | ||||||
Nova Ljubljanska Banka DD, GDR (A)(B) | 66,671 | 500,832 | ||||||
Popular, Inc. | 7,884 | 332,705 | ||||||
Shinhan Financial Group Company, Ltd. | 57,477 | 1,559,481 | ||||||
Shinsei Bank, Ltd. | 111,700 | 1,343,923 | ||||||
South State Corp. | 9,257 | 568,380 | ||||||
Standard Chartered PLC (B) | 254,830 | 1,164,523 | ||||||
Triumph Bancorp, Inc. (B) | 300 | 12,639 | ||||||
Unicaja Banco SA (A)(B) | 1,205,658 | 772,011 | ||||||
Western Alliance Bancorp | 26,065 | 1,073,878 | ||||||
Wintrust Financial Corp. | 11,187 | 550,736 | ||||||
Zions Bancorp NA | 30,151 | 972,973 | ||||||
Capital markets 2.1% | ||||||||
Ares Management Corp., Class A | 62,211 | 2,631,525 | ||||||
Artisan Partners Asset Management, Inc., Class A | 25,698 | 1,029,462 | ||||||
BowX Acquisition Corp. (B) | 292,795 | 2,922,094 | ||||||
Churchill Capital Corp. IV (B) | 244,610 | 2,402,070 | ||||||
Edelweiss Financial Services, Ltd. (B) | 175,223 | 132,283 | ||||||
Hamilton Lane, Inc., Class A | 1,200 | 83,640 | ||||||
Intermediate Capital Group PLC | 120,986 | 1,837,695 | ||||||
LPL Financial Holdings, Inc. | 10,526 | 841,343 | ||||||
Sanne Group PLC | 90,043 | 707,572 |
13 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
Financials (continued) | ||||||||
Capital markets (continued) | ||||||||
Solar Capital, Ltd. | 40,216 | $636,217 | ||||||
StepStone Group, Inc., Class A (B) | 6,200 | 159,402 | ||||||
The Blackstone Group, Inc., Class A | 13,686 | 690,048 | ||||||
The Charles Schwab Corp. | 23,668 | 972,991 | ||||||
Consumer finance 0.4% | ||||||||
American Express Company | 7,178 | 654,921 | ||||||
Cembra Money Bank AG | 544 | 60,440 | ||||||
OneMain Holdings, Inc. | 25,578 | 892,416 | ||||||
Provident Financial PLC (B) | 145,747 | 438,892 | ||||||
SLM Corp. | 132,024 | 1,213,301 | ||||||
Diversified financial services 1.2% | ||||||||
Cerved Group SpA (B) | 113,234 | 801,219 | ||||||
Cohn Robbins Holdings Corp. (B) | 75,324 | �� | 751,734 | |||||
Equitable Holdings, Inc. | 135,853 | 2,919,481 | ||||||
FirstRand, Ltd. | 144,026 | 334,331 | ||||||
FTAC Olympus Acquisition Corp. (B) | 148,445 | 1,472,574 | ||||||
Ribbit LEAP, Ltd. (B) | 93,789 | 1,140,005 | ||||||
Voya Financial, Inc. | 25,049 | 1,200,599 | ||||||
Insurance 5.0% | ||||||||
AIA Group, Ltd. | 445,359 | 4,238,559 | ||||||
Assurant, Inc. | 27,604 | 3,433,109 | ||||||
Assured Guaranty, Ltd. | 3,668 | 93,644 | ||||||
Athene Holding, Ltd., Class A (B) | 72,359 | 2,321,277 | ||||||
AUB Group, Ltd. | 98,934 | 1,159,670 | ||||||
AXA SA | 73,512 | 1,180,551 | ||||||
Beazley PLC | 878,940 | 3,350,758 | ||||||
Enstar Group, Ltd. (B)(C) | 8,477 | 1,456,942 | ||||||
Intact Financial Corp. | 97,735 | 10,095,535 | ||||||
Kemper Corp. | 8,035 | 495,438 | ||||||
ProSight Global, Inc. (B) | 2,703 | 31,976 | ||||||
Prudential PLC | 10,037 | 122,757 | ||||||
RenaissanceRe Holdings, Ltd. | 17,804 | 2,879,263 | ||||||
Stewart Information Services Corp. | 2,925 | 123,991 | ||||||
Talanx AG | 17,396 | 512,854 | ||||||
The Hartford Financial Services Group, Inc. | 29,958 | 1,153,982 | ||||||
Third Point Reinsurance, Ltd. (B) | 8,441 | 65,671 | ||||||
Tokio Marine Holdings, Inc. | 30,100 | 1,345,311 | ||||||
Trupanion, Inc. (B) | 37,807 | 2,704,713 | ||||||
Mortgage real estate investment trusts 0.1% | ||||||||
AGNC Investment Corp. | 62,403 | 871,770 | ||||||
Thrifts and mortgage finance 0.8% | ||||||||
Essent Group, Ltd. (C) | 44,599 | 1,777,270 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 14 |
Table of Contents
|
Shares | Value | |||||||
Financials (continued) | ||||||||
Thrifts and mortgage finance (continued) | ||||||||
Housing Development Finance Corp., Ltd. | 73,711 | $1,909,767 | ||||||
MGIC Investment Corp. | 8,693 | 87,452 | ||||||
NMI Holdings, Inc., Class A (B) | 93,658 | 2,012,710 | ||||||
Health care 14.8% | 108,248,163 | |||||||
Biotechnology 6.8% | ||||||||
Acceleron Pharma, Inc. (B) | 22,102 | 2,311,427 | ||||||
Agios Pharmaceuticals, Inc. (B) | 3,193 | 127,944 | ||||||
Akero Therapeutics, Inc. (B) | 44,780 | 1,188,909 | ||||||
Aligos Therapeutics, Inc. (B) | 49,735 | 743,041 | ||||||
Alkermes PLC (B) | 16,387 | 266,289 | ||||||
Alnylam Pharmaceuticals, Inc. (B) | 476 | 58,534 | ||||||
ALX Oncology Holdings, Inc. (B) | 2,925 | 115,567 | ||||||
Amgen, Inc. | 439 | 95,237 | ||||||
Amicus Therapeutics, Inc. (B) | 4,040 | 72,033 | ||||||
Apellis Pharmaceuticals, Inc. (B) | 16,869 | 538,121 | ||||||
Arena Pharmaceuticals, Inc. (B) | 13,147 | 1,126,961 | ||||||
Argenx SE, ADR (B) | 7,348 | 1,823,259 | ||||||
Ascendis Pharma A/S, ADR (B) | 8,510 | 1,390,109 | ||||||
Assembly Biosciences, Inc. (B) | 18,880 | 278,291 | ||||||
Atreca, Inc., Class A (B) | 20,297 | 271,168 | ||||||
BeiGene, Ltd., ADR (B) | 9,169 | 2,718,792 | ||||||
Biohaven Pharmaceutical Holding Company, Ltd. (B) | 521 | 40,357 | ||||||
BioNTech SE, ADR (B) | 1,140 | 97,310 | ||||||
Black Diamond Therapeutics, Inc. (B) | 5,084 | 160,197 | ||||||
Bluebird Bio, Inc. (B) | 14,266 | 737,695 | ||||||
Blueprint Medicines Corp. (B) | 2,047 | 209,367 | ||||||
Clementia Pharmaceuticals, Inc. (B)(D) | 9,185 | 0 | ||||||
Coherus Biosciences, Inc. (B) | 40,205 | 670,217 | ||||||
Constellation Pharmaceuticals, Inc. (B) | 43,607 | 855,569 | ||||||
CStone Pharmaceuticals (A)(B) | 68,408 | 100,438 | ||||||
Cytokinetics, Inc. (B) | 7,088 | 108,943 | ||||||
Dyne Therapeutics, Inc. (B) | 70,010 | 1,447,807 | ||||||
Everest Medicines, Ltd. (A)(B) | 3,900 | 29,153 | ||||||
Exact Sciences Corp. (B) | 19,115 | 2,367,010 | ||||||
Forma Therapeutics Holdings, Inc. (B) | 6,687 | 288,343 | ||||||
G1 Therapeutics, Inc. (B) | 66,078 | 726,197 | ||||||
Galapagos NV (B) | 3,935 | 459,951 | ||||||
Generation Bio Company (B) | 6,373 | 164,678 | ||||||
Genmab A/S (B) | 2,831 | 945,624 | ||||||
Genus PLC | 2,653 | 140,993 | ||||||
Global Blood Therapeutics, Inc. (B) | 2,762 | 146,055 | ||||||
GlycoMimetics, Inc. (B) | 78,363 | 219,416 |
15 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
Health care (continued) | ||||||||
Biotechnology (continued) | ||||||||
ImmunoGen, Inc. (B) | 312,899 | $1,764,750 | ||||||
Incyte Corp. (B) | 1,602 | 138,797 | ||||||
Ironwood Pharmaceuticals, Inc. (B) | 97,740 | 965,671 | ||||||
JW Cayman Therapeutics Company, Ltd. (A)(B)(D) | 52,900 | 162,402 | ||||||
Kodiak Sciences, Inc. (B)(C) | 27,899 | 2,533,508 | ||||||
Kymera Therapeutics, Inc. (B) | 11,597 | 417,376 | ||||||
Legend Biotech Corp., ADR (B) | 3,761 | 97,297 | ||||||
Madrigal Pharmaceuticals, Inc. (B) | 921 | 117,197 | ||||||
Mersana Therapeutics, Inc. (B) | 67,056 | 1,208,349 | ||||||
Mirati Therapeutics, Inc. (B) | 12,018 | 2,609,589 | ||||||
Myovant Sciences, Ltd. (B) | 51,253 | 707,291 | ||||||
NextCure, Inc. (B) | 21,899 | 211,544 | ||||||
Nurix Therapeutics, Inc. (B) | 88,604 | 2,240,795 | ||||||
Orchard Therapeutics PLC, ADR (B) | 56,949 | 230,074 | ||||||
Oyster Point Pharma, Inc. (B) | 46,782 | 927,687 | ||||||
PMV Pharmaceuticals, Inc. (B) | 64,700 | 2,267,735 | ||||||
Prothena Corp. PLC (B) | 900 | 9,819 | ||||||
Radius Health, Inc. (B) | 1,804 | 24,192 | ||||||
Regeneron Pharmaceuticals, Inc. (B) | 3,910 | 2,125,320 | ||||||
Relay Therapeutics, Inc. (B) | 3,030 | 111,928 | ||||||
REVOLUTION Medicines, Inc. (B) | 2,301 | 69,467 | ||||||
Rhythm Pharmaceuticals, Inc. (B) | 47,347 | 1,002,336 | ||||||
Rigel Pharmaceuticals, Inc. (B) | 70,113 | 173,880 | ||||||
Sarepta Therapeutics, Inc. (B) | 9,848 | 1,338,442 | ||||||
Seagen, Inc. (B) | 1,440 | 240,192 | ||||||
Syndax Pharmaceuticals, Inc. (B) | 82,058 | 1,428,630 | ||||||
Twist Bioscience Corp. (B) | 2,448 | 187,615 | ||||||
UroGen Pharma, Ltd. (B) | 13,784 | 310,416 | ||||||
Vaxcyte, Inc. (B) | 17,503 | 654,087 | ||||||
Veracyte, Inc. (B) | 1,332 | 46,167 | ||||||
Vertex Pharmaceuticals, Inc. (B) | 310 | 64,592 | ||||||
Zai Lab, Ltd., ADR (B) | 20,105 | 1,649,615 | ||||||
Zealand Pharma A/S, ADR (B) | 10,079 | 340,771 | ||||||
Health care equipment and supplies 2.6% | ||||||||
Baxter International, Inc. | 21,465 | 1,665,040 | ||||||
Becton, Dickinson and Company | 832 | 192,300 | ||||||
Boston Scientific Corp. (B) | 4,733 | 162,200 | ||||||
ConvaTec Group PLC (A) | 282,569 | 661,475 | ||||||
Danaher Corp. | 20,940 | 4,806,568 | ||||||
DexCom, Inc. (B) | 1,214 | 387,970 | ||||||
Edwards Lifesciences Corp. (B)(C) | 23,270 | 1,668,226 | ||||||
IDEXX Laboratories, Inc. (B) | 175 | 74,344 | ||||||
Insulet Corp. (B) | 12,208 | 2,713,228 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 16 |
Table of Contents
|
Shares | Value | |||||||
Health care (continued) | ||||||||
Health care equipment and supplies (continued) | ||||||||
Integra LifeSciences Holdings Corp. (B) | 941 | $41,498 | ||||||
Intuitive Surgical, Inc. (B) | 59 | 39,358 | ||||||
Koninklijke Philips NV (B) | 2,273 | 105,278 | ||||||
Lifetech Scientific Corp. (B) | 825,589 | 210,409 | ||||||
Masimo Corp. (B) | 3,272 | 732,339 | ||||||
NuVasive, Inc. (B) | 921 | 40,920 | ||||||
Smith & Nephew PLC | 2,605 | 45,234 | ||||||
STERIS PLC | 3,908 | 692,459 | ||||||
Tandem Diabetes Care, Inc. (B) | 36,293 | 3,955,937 | ||||||
Teleflex, Inc. | 3,113 | 990,650 | ||||||
Health care providers and services 0.6% | ||||||||
Acadia Healthcare Company, Inc. (B) | 3,195 | 113,902 | ||||||
Anthem, Inc. | 389 | 106,119 | ||||||
Centene Corp. (B) | 26,490 | 1,565,559 | ||||||
China National Accord Medicines Corp., Ltd., Class A | 2,519 | 18,733 | ||||||
Encompass Health Corp. | 6,795 | 416,601 | ||||||
Fresenius SE & Company KGaA | 1,074 | 39,838 | ||||||
HCA Healthcare, Inc. | 314 | 38,917 | ||||||
Humana, Inc. | 472 | 188,460 | ||||||
Laboratory Corp. of America Holdings (B) | 208 | 41,552 | ||||||
Molina Healthcare, Inc. (B) | 612 | 114,120 | ||||||
Notre Dame Intermedica Participacoes SA | 65,800 | 753,989 | ||||||
Owens & Minor, Inc. | 32,900 | 826,448 | ||||||
Quest Diagnostics, Inc. | 321 | 39,207 | ||||||
UnitedHealth Group, Inc. | 860 | 262,420 | ||||||
Health care technology 0.0% | ||||||||
Allscripts Healthcare Solutions, Inc. (B) | 5,093 | 51,337 | ||||||
Life sciences tools and services 1.2% | ||||||||
Agilent Technologies, Inc. | 16,201 | 1,653,960 | ||||||
Berkeley Lights, Inc. (B) | 400 | 29,028 | ||||||
Bio-Techne Corp. | 2,824 | 712,806 | ||||||
ICON PLC (B) | 1,480 | 266,844 | ||||||
NanoString Technologies, Inc. (B) | 5,500 | 201,575 | ||||||
PPD, Inc. (B) | 44,211 | 1,453,658 | ||||||
PRA Health Sciences, Inc. (B) | 4,891 | 476,579 | ||||||
Repligen Corp. (B) | 5,000 | 832,850 | ||||||
Tecan Group AG | 2,861 | 1,357,626 | ||||||
WuXi AppTec Company, Ltd., H Shares (A) | 52,633 | 841,512 | ||||||
Wuxi Biologics Cayman, Inc. (A)(B) | 32,101 | 901,515 | ||||||
Pharmaceuticals 3.6% | ||||||||
Aerie Pharmaceuticals, Inc. (B) | 4,469 | 47,416 | ||||||
Amneal Pharmaceuticals, Inc. (B) | 42,170 | 175,427 |
17 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
Health care (continued) | ||||||||
Pharmaceuticals (continued) | ||||||||
Astellas Pharma, Inc. | 52,901 | $725,428 | ||||||
AstraZeneca PLC | 34,837 | 3,497,825 | ||||||
Bristol-Myers Squibb Company | 2,330 | 136,189 | ||||||
China Traditional Chinese Medicine Holdings Company, Ltd. | 49,171 | 19,649 | ||||||
Daiichi Sankyo Company, Ltd. | 3,427 | 90,451 | ||||||
Eisai Company, Ltd. | 43,457 | 3,378,935 | ||||||
Elanco Animal Health, Inc. (B) | 15,792 | 489,710 | ||||||
Eli Lilly & Company (C) | 18,731 | 2,443,646 | ||||||
Harmony Biosciences Holdings, Inc. (B) | 1,340 | 52,126 | ||||||
Hikma Pharmaceuticals PLC | 20,129 | 654,463 | ||||||
Hutchison China MediTech, Ltd., ADR (B) | 27,722 | 816,136 | ||||||
Kronos Bio, Inc. (B) | 500 | 14,045 | ||||||
Laboratorios Farmaceuticos Rovi SA (B) | 24,742 | 882,420 | ||||||
Mylan NV (B) | 60,992 | 886,824 | ||||||
Novartis AG | 6,302 | 491,068 | ||||||
Odonate Therapeutics, Inc. (B) | 79,900 | 1,151,359 | ||||||
Ono Pharmaceutical Company, Ltd. | 78,457 | 2,238,002 | ||||||
Pfizer, Inc. | 20,753 | 736,316 | ||||||
Reata Pharmaceuticals, Inc., Class A (B) | 6,923 | 807,983 | ||||||
Revance Therapeutics, Inc. (B) | 37,435 | 968,818 | ||||||
Roche Holding AG | 8,643 | 2,777,267 | ||||||
Royalty Pharma PLC, Class A | 32,608 | 1,196,714 | ||||||
Theravance Biopharma, Inc. (B) | 38,045 | 719,431 | ||||||
Tricida, Inc. (B) | 43,864 | 246,954 | ||||||
UCB SA | 6,224 | 614,754 | ||||||
WaVe Life Sciences, Ltd. (B) | 11,271 | 79,686 | ||||||
Industrials 4.5% | 32,758,092 | |||||||
Aerospace and defense 0.4% | ||||||||
BWX Technologies, Inc. | 48,299 | 2,656,928 | ||||||
Building products 0.5% | ||||||||
Advanced Drainage Systems, Inc. | 34,601 | 2,194,741 | ||||||
Trane Technologies PLC | 13,418 | 1,781,240 | ||||||
Commercial services and supplies 0.8% | ||||||||
Babcock International Group PLC | 610,352 | 1,719,414 | ||||||
Clean Harbors, Inc. (B)(C) | 3,826 | 202,663 | ||||||
Copart, Inc. (B) | 21,433 | 2,365,346 | ||||||
Serco Group PLC (B) | 917,314 | 1,533,184 | ||||||
Tetra Tech, Inc. | 2,362 | 238,349 | ||||||
Construction and engineering 0.2% | ||||||||
China Machinery Engineering Corp., H Shares | 5,983,926 | 1,152,404 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 18 |
Table of Contents
|
Shares | Value | |||||||
Industrials (continued) | ||||||||
Electrical equipment 0.2% | ||||||||
Schneider Electric SE | 13,264 | $1,611,661 | ||||||
Industrial conglomerates 0.0% | ||||||||
Fosun International, Ltd. | 20,618 | 24,897 | ||||||
Machinery 0.4% | ||||||||
Fortive Corp. | 18,069 | 1,113,050 | ||||||
Ingersoll Rand, Inc. (B) | 25,016 | 874,059 | ||||||
ITT, Inc. | 11,197 | 677,530 | ||||||
Rexnord Corp. | 5,056 | 162,196 | ||||||
The Japan Steel Works, Ltd. | 1,130 | 24,158 | ||||||
Marine 0.3% | ||||||||
Irish Continental Group PLC | 548,433 | 2,014,354 | ||||||
Professional services 0.8% | ||||||||
CoStar Group, Inc. (B) | 2,852 | 2,348,936 | ||||||
Experian PLC | 31,102 | 1,139,387 | ||||||
TransUnion | 2,679 | 213,409 | ||||||
TriNet Group, Inc. (B) | 32,545 | 2,243,001 | ||||||
Road and rail 0.1% | ||||||||
ALD SA (A) | 48,133 | 518,437 | ||||||
CJ Logistics Corp. (B) | 138 | 19,477 | ||||||
Trading companies and distributors 0.5% | ||||||||
AerCap Holdings NV (B) | 14,325 | 355,690 | ||||||
Brenntag AG | 30,444 | 1,945,870 | ||||||
Triton International, Ltd. | 36,456 | 1,344,497 | ||||||
Transportation infrastructure 0.3% | ||||||||
Aena SME SA (A)(B) | 10,949 | 1,475,222 | ||||||
Aeroports de Paris | 216 | 21,137 | ||||||
China Merchants Port Holdings Company, Ltd. | 16,627 | 17,674 | ||||||
Flughafen Zurich AG (B) | 115 | 15,520 | ||||||
Grupo Aeroportuario del Sureste SAB de CV, B Shares (B) | 984 | 11,416 | ||||||
Malaysia Airports Holdings BHD | 28,165 | 28,354 | ||||||
Shenzhen Airport Company, Ltd., Class A | 597,674 | 713,891 | ||||||
Information technology 10.8% | 78,878,608 | |||||||
Communications equipment 0.1% | ||||||||
Accton Technology Corp. | 123,000 | 893,631 | ||||||
Electronic equipment, instruments and components 0.8% | ||||||||
Chroma ATE, Inc. | 328,251 | 1,563,963 | ||||||
FIH Mobile, Ltd. (B) | 129,849 | 14,271 | ||||||
Hon Hai Precision Industry Company, Ltd. | 632,572 | 1,715,618 | ||||||
II-VI, Inc. (B) | 14,773 | 671,728 | ||||||
Wuxi Lead Intelligent Equipment Company, Ltd., Class A | 191,900 | 1,722,167 |
19 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
Information technology (continued) | ||||||||
IT services 3.6% | ||||||||
BASE, Inc. (B) | 1,300 | $139,342 | ||||||
Cognizant Technology Solutions Corp., Class A | 11,775 | 840,971 | ||||||
Edenred | 22,994 | 1,071,841 | ||||||
Fidelity National Information Services, Inc. | 6,059 | 754,891 | ||||||
FleetCor Technologies, Inc. (B) | 5,580 | 1,232,678 | ||||||
Genpact, Ltd. | 27,879 | 958,201 | ||||||
Global Payments, Inc. | 16,413 | 2,588,987 | ||||||
GMO Financial Gate, Inc. (B) | 800 | 138,878 | ||||||
GMO Payment Gateway, Inc. | 1,300 | 159,287 | ||||||
GoDaddy, Inc., Class A (B) | 42,122 | 2,979,710 | ||||||
Leidos Holdings, Inc. | 3,658 | 303,614 | ||||||
LiveRamp Holdings, Inc. (B) | 18,955 | 1,252,736 | ||||||
Network International Holdings PLC (A)(B) | 177,442 | 509,153 | ||||||
Nexi SpA (A)(B) | 243,499 | 3,748,448 | ||||||
Repay Holdings Corp. (B) | 115,438 | 2,600,818 | ||||||
Science Applications International Corp. (C) | 30,625 | 2,338,831 | ||||||
Square, Inc., Class A (B) | 13,254 | 2,052,780 | ||||||
StoneCo, Ltd., Class A (B) | 13,300 | 698,782 | ||||||
Tyro Payments, Ltd. (B) | 5,443 | 14,231 | ||||||
VeriSign, Inc. (B) | 3,592 | 684,994 | ||||||
Worldline SA (A)(B) | 11,476 | 849,987 | ||||||
Semiconductors and semiconductor equipment 1.5% | ||||||||
ASM Pacific Technology, Ltd. | 65,922 | 664,778 | ||||||
First Solar, Inc. (B) | 11,978 | 1,042,625 | ||||||
Marvell Technology Group, Ltd. | 61,713 | 2,314,855 | ||||||
MediaTek, Inc. | 149,734 | 3,559,216 | ||||||
Micron Technology, Inc. (B) | 4,495 | 226,278 | ||||||
Renesas Electronics Corp. (B) | 2,014 | 16,625 | ||||||
SK Hynix, Inc. | 21,141 | 1,499,803 | ||||||
Tower Semiconductor, Ltd. (B) | 84,323 | 1,779,215 | ||||||
Software 4.8% | ||||||||
2U, Inc. (B) | 18,200 | 670,670 | ||||||
Adobe, Inc. (B) | 5,078 | 2,270,374 | ||||||
Atlassian Corp. PLC, Class A (B) | 229 | 43,881 | ||||||
Avalara, Inc. (B) | 20,574 | 3,066,555 | ||||||
Ceridian HCM Holding, Inc. (B) | 29,089 | 2,508,054 | ||||||
Freee KK (B) | 3,800 | 297,345 | ||||||
Guidewire Software, Inc. (B) | 4,533 | 435,667 | ||||||
HubSpot, Inc. (B) | 10,265 | 2,977,569 | ||||||
Intuit, Inc. | 5,295 | 1,666,231 | ||||||
Microsoft Corp. | 5,780 | 1,170,277 | ||||||
Ming Yuan Cloud Group Holdings, Ltd. (B) | 14,700 | 62,763 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 20 |
Table of Contents
|
Shares | Value | |||||||
Information technology (continued) | ||||||||
Software (continued) | ||||||||
Q2 Holdings, Inc. (B) | 10,737 | $979,644 | ||||||
Rapid7, Inc. (B) | 31,942 | 1,978,168 | ||||||
salesforce.com, Inc. (B) | 5,279 | 1,226,153 | ||||||
ServiceNow, Inc. (B) | 10,701 | 5,324,497 | ||||||
Splunk, Inc. (B) | 16,821 | 3,331,231 | ||||||
Venustech Group, Inc., Class A | 197,277 | 912,641 | ||||||
Workday, Inc., Class A (B) | 30,012 | 6,306,121 | ||||||
Zscaler, Inc. (B) | 345 | 46,834 | ||||||
Materials 0.6% | 4,282,822 | |||||||
Construction materials 0.0% | ||||||||
LafargeHolcim, Ltd. (B) | 314 | 13,477 | ||||||
Metals and mining 0.6% | ||||||||
Barrick Gold Corp. | 68,052 | 1,819,030 | ||||||
Fresnillo PLC | 43,103 | 650,101 | ||||||
Turquoise Hill Resources, Ltd. (B) | 229,327 | 1,800,214 | ||||||
Real estate 1.3% | 9,280,860 | |||||||
Equity real estate investment trusts 0.8% | ||||||||
Alexandria Real Estate Equities, Inc. | 8,663 | 1,312,618 | ||||||
American Tower Corp. | 525 | 120,566 | ||||||
Gaming and Leisure Properties, Inc. | 15,800 | 574,330 | ||||||
Medical Properties Trust, Inc. | 134,573 | 2,398,090 | ||||||
VICI Properties, Inc. | 46,400 | 1,064,880 | ||||||
Real estate management and development 0.5% | ||||||||
BR Properties SA | 8,070 | 12,194 | ||||||
CK Asset Holdings, Ltd. | 203,081 | 943,005 | ||||||
Deutsche Wohnen SE | 32,951 | 1,663,133 | ||||||
New World Development Company, Ltd. | 246,427 | 1,176,538 | ||||||
Prestige Estates Projects, Ltd. | 4,593 | 15,506 | ||||||
Utilities 2.2% | 15,996,375 | |||||||
Electric utilities 0.7% | ||||||||
Power Grid Corp. of India, Ltd. | 2,329,050 | 5,404,373 | ||||||
Gas utilities 0.3% | ||||||||
Rubis SCA | 62,838 | 2,066,101 | ||||||
Independent power and renewable electricity producers 0.5% | ||||||||
China Yangtze Power Company, Ltd., Class A | 359,600 | 1,020,152 | ||||||
China Yangtze Power Company, Ltd., GDR (A)(B)(D) | 95,543 | 2,550,998 | ||||||
Multi-utilities 0.7% | ||||||||
Engie SA (B) | 409,668 | 4,954,751 |
21 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
Preferred securities 0.6% | $4,303,225 | |||||||
(Cost $3,815,425) | ||||||||
Financials 0.0% | 55,293 | |||||||
Capital markets 0.0% | ||||||||
Ares Management Corp., 7.000% | 2,125 | 55,293 | ||||||
Information technology 0.3% | 2,058,715 | |||||||
IT services 0.3% | ||||||||
Sabre Corp., 6.500% | 21,607 | 2,058,715 | ||||||
Materials 0.3% | 2,189,217 | |||||||
Metals and mining 0.3% | ||||||||
ArcelorMittal SA, 5.500% | 63,108 | 2,189,217 | ||||||
Contracts/Notional amount | Value | |||||||
Purchased options 0.6% | $4,433,852 | |||||||
(Cost $10,123,178) | ||||||||
Calls 0.3% | 1,883,495 | |||||||
Exchange Traded Option on Amazon.com, Inc. | 11 | 31,873 | ||||||
Exchange Traded Option on American Express | 599 | 62,596 | ||||||
Exchange Traded Option on JPMorgan Chase | 554 | 66,203 | ||||||
Exchange Traded Option on VanEck Vectors | 3,298 | 189,635 | ||||||
Over the Counter Option on CNOOC, Ltd. | 221,673 | 1,280 | ||||||
Over the Counter Option on EURO STOXX | 467,369 | 27,705 | ||||||
Over the Counter Option on EURO STOXX | 25,161 | 5 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 22 |
Table of Contents
|
Contracts/Notional amount | Value | |||||||
Calls (continued) | ||||||||
Over the Counter Option on EURO STOXX | 96,528 | $18,378 | ||||||
Over the Counter Option on EURO STOXX | 42,500 | 98,236 | ||||||
Over the Counter Option on EURO STOXX | 25,161 | 401 | ||||||
Over the Counter Option on EURO STOXX | 129,114 | 1,287 | ||||||
Over the Counter Option on FANUC Corp. | 1,349 | 1,590 | ||||||
Over the Counter Option on FTSE China A50 | 3,200,000 | 121,429 | ||||||
Over the Counter Option on FTSE China A50 | 6,280,000 | 238,304 | ||||||
Over the Counter Option on Hon Hai | 51,107 | 33 | ||||||
Over the Counter Option on Hon Hai | 2,538,042 | 124 | ||||||
Over the Counter Option on Hon Hai | 53,603 | 11 |
23 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Contracts/Notional amount | Value | |||||||||||
Calls (continued) | ||||||||||||
Over the Counter Option on Hon Hai |
| 4,246,441 |
|
| $847 |
| ||||||
Over the Counter Option on HSBC Holdings |
| 366,229 |
|
| 30,988 |
| ||||||
Over the Counter Option on Keyence Corp. |
| 543 |
|
| 3 |
| ||||||
Over the Counter Option on Keyence Corp. |
| 543 |
|
| 90 |
| ||||||
Over the Counter Option on Mitsubishi |
| 15,758 |
|
| 283 |
| ||||||
Over the Counter Option on Nikkei 225 Index |
| 37,018 |
|
| 62,671 |
| ||||||
Over the Counter Option on Rohm Company, |
| 3,242 |
|
| 2,157 |
| ||||||
Over the Counter Option on Russell 2000 |
| 10,088,762 |
|
| 161,420 |
| ||||||
Over the Counter Option on Russell 2000 |
| 16,245,901 |
|
| 183,335 |
| ||||||
Over the Counter Option on Samsung |
| 1,940 |
|
| 3 |
| ||||||
Over the Counter Option on Samsung |
| 3,076 |
|
| 32 |
|
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 24 |
Table of Contents
|
Contracts/Notional amount | Value | |||||||||||
Calls (continued) | ||||||||||||
Over the Counter Option on Standard |
| 307,708 |
| $ | 21,563 |
| ||||||
Over the Counter Option on STOXX Europe 600 Oil & Gas Index (Expiration |
| 39,279 |
|
| 204,961 |
| ||||||
Over the Counter Option on STOXX Europe |
| 27,327 |
|
| 131,341 |
| ||||||
Over the Counter Option on the AUD vs. JPY |
| 1,270,000 |
|
| 23,712 |
| ||||||
Over the Counter Option on the USD vs. CNY |
| 4,074,000 |
|
| 8,975 |
| ||||||
Over the Counter Option on the USD vs. CNY |
| 13,932,000 |
|
| 30,692 |
| ||||||
Over the Counter Option on the USD vs. CNY |
| 10,576,000 |
|
| 23,426 |
| ||||||
Over the Counter Option on the USD vs. JPY |
| 20,020,323 |
|
| 54,455 |
| ||||||
Over the Counter Option on TOPIX Banks |
| 2,487,646 |
|
| 70 |
| ||||||
Over the Counter Option on TOPIX Banks |
| 205,301 |
|
| 5 |
| ||||||
Over the Counter Option on TOPIX Banks |
| 2,168,535 |
|
| 18,647 |
| ||||||
Over the Counter Option on TOPIX Banks |
| 1,427,330 |
|
| 9,328 |
|
25 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Contracts/Notional amount | Value | |||||||||||
Calls (continued) | ||||||||||||
Over the Counter Option on TOPIX Banks |
| 689,960 |
|
| $74 |
| ||||||
Over the Counter Option on Total SE |
| 364,095 |
|
| 32,191 |
| ||||||
Over the Counter Option on Volkswagen AG |
| 96,141 |
|
| 17,059 |
| ||||||
Over the Counter Option on Volkswagen AG |
| 34,449 |
|
| 6,077 |
| ||||||
Puts 0.3% | 2,550,357 | |||||||||||
Exchange Traded Option on CBOE Volatility |
| 2,814 |
|
| 154,770 |
| ||||||
Exchange Traded Option on CBOE Volatility |
| 1,170 |
|
| 93,600 |
| ||||||
Exchange Traded Option on iShares Expanded |
| 274 |
|
| 272,630 |
| ||||||
Exchange Traded Option on iShares iBoxx $ |
| 23 |
|
| 1,863 |
| ||||||
Exchange Traded Option on iShares iBoxx $ |
| 3,039 |
|
| 417,863 |
| ||||||
Exchange Traded Option on iShares MSCI |
| 100 |
|
| 37,500 |
| ||||||
Exchange Traded Option on iShares Russell |
| 955 |
|
| 256,895 |
| ||||||
Exchange Traded Option on iShares Russell |
| 167 |
|
| 130,427 |
|
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 26 |
Table of Contents
|
Contracts/Notional amount | Value | |||||||||||||||
Puts (continued) | ||||||||||||||||
Exchange Traded Option on SPDR S&P |
| 1,174 |
| $ | 657,440 |
| ||||||||||
Exchange Traded Option on VanEck Vectors |
| 568 |
|
| 363,520 |
| ||||||||||
Over the Counter Option on 10 Year Interest |
| 16,275,000 |
|
| 144,442 |
| ||||||||||
Over the Counter Option on Hong Kong Hang |
| 52 |
|
| 2,791 |
| ||||||||||
Over the Counter Option on Hong Kong Hang |
| 70 |
|
| 5,318 |
| ||||||||||
Over the Counter Option on Hong Kong Hang |
| 55 |
|
| 1,667 |
| ||||||||||
Over the Counter Option on Hong Kong Hang |
| 37 |
|
| 1,418 |
| ||||||||||
Over the Counter Option on KOSPI 200 Index |
| 934,175 |
|
| 8,213 |
| ||||||||||
Rate (%) | Maturity date | Par value^ | Value | |||||||||||||
Convertible bonds 0.1% | $ | 579,736 | ||||||||||||||
(Cost $733,000) | ||||||||||||||||
Energy 0.1% | 579,736 | |||||||||||||||
Energy equipment and services 0.1% | ||||||||||||||||
Helix Energy Solutions Group, Inc. | 6.750 | 02-15-26 | 733,000 | 579,736 |
27 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Yield* (%) | Maturity date | Par value^ | Value | |||||||||||||
Short-term investments 39.9% | $ | 291,073,953 | ||||||||||||||
(Cost $291,068,473) | ||||||||||||||||
U.S. Government 27.5% | 200,336,373 | |||||||||||||||
U.S. Cash Management Bill (C) | 0.098 | 01-05-21 | 4,180,000 | 4,179,331 | ||||||||||||
U.S. Cash Management Bill | 0.098 | 03-02-21 | 1,395,000 | 1,394,535 | ||||||||||||
U.S. Cash Management Bill | 0.108 | 02-23-21 | 400,000 | 399,881 | ||||||||||||
U.S. Cash Management Bill | 0.112 | 03-16-21 | 750,000 | 749,740 | ||||||||||||
U.S. Cash Management Bill | 0.115 | 01-26-21 | 125,000 | 124,959 | ||||||||||||
U.S. Cash Management Bill (C) | 0.120 | 01-19-21 | 7,405,000 | 7,403,636 | ||||||||||||
U.S. Treasury Bill (C) | 0.088 | 11-24-20 | 19,755,000 | 19,753,974 | ||||||||||||
U.S. Treasury Bill | 0.099 | 12-08-20 | 1,260,000 | 1,259,887 | ||||||||||||
U.S. Treasury Bill (C) | 0.100 | 12-03-20 | 3,955,000 | 3,954,702 | ||||||||||||
U.S. Treasury Bill | 0.100 | 02-25-21 | 4,405,000 | 4,403,522 | ||||||||||||
U.S. Treasury Bill (C) | 0.103 | 12-01-20 | 27,020,000 | 27,018,150 | ||||||||||||
U.S. Treasury Bill | 0.103 | 02-04-21 | 220,000 | 219,943 | ||||||||||||
U.S. Treasury Bill | 0.105 | 11-10-20 | 19,421,000 | 19,420,720 | ||||||||||||
U.S. Treasury Bill | 0.105 | 02-18-21 | 5,720,000 | 5,718,370 | ||||||||||||
U.S. Treasury Bill | 0.107 | 04-08-21 | 10,000 | 9,996 | ||||||||||||
U.S. Treasury Bill (C) | 0.110 | 12-10-20 | 15,175,000 | 15,173,578 | ||||||||||||
U.S. Treasury Bill | 0.110 | 12-17-20 | 1,275,000 | 1,274,857 | ||||||||||||
U.S. Treasury Bill (C) | 0.110 | 12-24-20 | 17,138,000 | 17,135,772 | ||||||||||||
U.S. Treasury Bill | 0.113 | 12-22-20 | 1,995,000 | 1,994,751 | ||||||||||||
U.S. Treasury Bill | 0.119 | 09-09-21 | 1,160,000 | 1,158,811 | ||||||||||||
U.S. Treasury Bill (C) | 0.120 | 11-19-20 | 34,412,000 | 34,410,659 | ||||||||||||
U.S. Treasury Bill (C) | 0.130 | 12-31-20 | 5,155,000 | 5,154,218 | ||||||||||||
U.S. Treasury Bill (C) | 0.135 | 12-29-20 | 9,970,000 | 9,968,540 | ||||||||||||
U.S. Treasury Bill (C) | 0.145 | 11-12-20 | 12,345,000 | 12,344,743 | ||||||||||||
U.S. Treasury Bill (C) | 0.148 | 12-15-20 | 3,505,000 | 3,504,618 | ||||||||||||
U.S. Treasury Bill (C) | 0.405 | 01-28-21 | 2,205,000 | 2,204,480 | ||||||||||||
Yield (%) | Shares | Value | ||||||||||||||
Short-term funds 12.4% | 90,737,580 | |||||||||||||||
State Street Institutional U.S. Government Money Market |
| 0.0257 | (F) |
| 90,737,580 |
|
| 90,737,580 |
| |||||||
Total investments (Cost $682,396,175) 100.4% | $ | 732,306,730 | ||||||||||||||
Other assets and liabilities, net (0.4%) | (3,206,242 | ) | ||||||||||||||
Total net assets 100.0% | $ | 729,100,488 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
^All par values are denominated in U.S. dollars unless otherwise indicated.
Currency Abbreviations
AUD | Australian Dollar | |
CNY | Chinese Yuan Renminbi | |
EUR | Euro |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 28 |
Table of Contents
|
GBP | Pound Sterling
| |
HKD | Hong Kong Dollar
| |
JPY | Japanese Yen
| |
KRW | Korean Won
| |
TWD | New Taiwan Dollar |
Security Abbreviations and Legend
ADR | American Depositary Receipt
| |
GDR | Global Depositary Receipt
| |
LIBOR | London Interbank Offered Rate
| |
(A) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration.
| |
(B) | Non-income producing security.
| |
(C) | All or a portion of this security is segregated at the custodian as collateral for certain derivatives.
| |
(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) | For this type of option, notional amounts are equivalent to number of contracts.
| |
(F) | The rate shown is the annualized seven-day yield as of 10-31-20.
| |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
29 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
DERIVATIVES
FUTURES
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) | ||||||||||||||||||
FTSE Taiwan Index Futures | 1 | Short | Nov 2020 | $(44,709) | $(43,450) | $1,259 | ||||||||||||||||||
SGX Nifty 50 Index Futures | 168 | Short | Nov 2020 | (4,013,812) | (3,911,375) | 102,437 | ||||||||||||||||||
$103,696 |
^ Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.
FORWARD FOREIGN CURRENCY CONTRACTS
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | |||||||||
CAD | 1,665,000 | USD | 1,274,679 | BNP | 12/16/2020 | — | $(24,687) | |||||||
EUR | 8,418,000 | USD | 9,974,311 | CITI | 11/30/2020 | — | (164,453) | |||||||
EUR | 2,716,000 | USD | 3,215,051 | HUS | 12/16/2020 | — | (48,602) | |||||||
GBP | 4,590,000 | USD | 5,977,842 | JPM | 11/30/2020 | — | (30,505) | |||||||
GBP | 2,769,000 | USD | 3,640,100 | BNP | 12/16/2020 | — | (51,691) | |||||||
HKD | 3,935,000 | USD | 507,460 | JPM | 12/16/2020 | $100 | — | |||||||
JPY | 435,058,000 | USD | 4,147,992 | JPM | 11/30/2020 | 8,726 | — | |||||||
JPY | 106,500,000 | USD | 1,009,819 | BNP | 12/16/2020 | 8,020 | — | |||||||
JPY | 492,000,000 | USD | 4,638,159 | MSI | 12/16/2020 | 63,970 | — | |||||||
USD | 10,220,766 | EUR | 8,626,000 | CITI | 11/30/2020 | 168,516 | — | |||||||
USD | 1,460,741 | EUR | 1,234,000 | HUS | 12/16/2020 | 22,082 | — | |||||||
USD | 3,173,463 | EUR | 2,716,000 | JPM | 12/16/2020 | 7,013 | — | |||||||
USD | 8,001,765 | EUR | 6,762,000 | MSI | 12/16/2020 | 118,284 | — | |||||||
USD | 7,762,078 | GBP | 5,960,000 | JPM | 11/30/2020 | 39,610 | — | |||||||
USD | 2,162,782 | GBP | 1,669,000 | MSI | 12/16/2020 | — | (112) | |||||||
$436,321 | $(320,050) |
WRITTEN OPTIONS
Options on securities
Counterparty (OTC)/ Exchange- traded | Name of issuer | Currency | Exercise price | Expiration date | Number of contracts | Notional amount | Premium | Value | ||||||||||||||||||
Calls | ||||||||||||||||||||||||||
Exchange-traded | American Express Company | USD | 130.00 | Jan 2021 | 599 | 59,900 | $19,707 | $(13,478) | ||||||||||||||||||
Exchange-traded | iShares Expanded Tech-Software Sector ETF | USD | 335.00 | Jan 2021 | 274 | 27,400 | 301,820 | (194,540 | ) | |||||||||||||||||
Exchange-traded | JPMorgan Chase & Co. | USD | 115.00 | Nov 2020 | 554 | 55,400 | 30,289 | (5,817 | ) | |||||||||||||||||
Exchange-traded | SPDR S&P Biotech ETF | USD | 130.00 | Dec 2020 | 1,174 | 117,400 | 688,322 | (136,771 | ) | |||||||||||||||||
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 30 |
Table of Contents
|
Options on securities (continued) |
Counterparty (OTC)/ Exchange- traded | Name of issuer | Currency | Exercise price | Expiration date | Number of contracts | Notional amount | Premium | Value | ||||||||||||||||||
Calls (continued) | ||||||||||||||||||||||||||
Exchange-traded | VanEck Vectors Gold Miners ETF | USD | 66.00 | Mar 2021 | 3,298 | 329,800 | $84,672 | $(24,735) | ||||||||||||||||||
Exchange-traded | VanEck Vectors Semiconductor ETF | USD | 195.00 | Jan 2021 | 568 | 56,800 | 348,188 | (195,959) | ||||||||||||||||||
$1,472,998 | $(571,300) | |||||||||||||||||||||||||
Puts | ||||||||||||||||||||||||||
Exchange-traded | Amazon.com, Inc. | |||||||||||||||||||||||||
USD | 2,920.00 | Nov 2020 | 11 | 1,100 | $52,791 | $(102,080) | ||||||||||||||||||||
Exchange-traded | iShares iBoxx $ High Yield Corporate Bond ETF | |||||||||||||||||||||||||
USD | 77.00 | Nov 2020 | 23 | 2,300 | 1,303 | (380) | ||||||||||||||||||||
Exchange-traded | iShares iBoxx $ High Yield Corporate Bond ETF | |||||||||||||||||||||||||
USD | 77.00 | Dec 2020 | 3,039 | 303,900 | 132,723 | (136,755) | ||||||||||||||||||||
$186,817 | $(239,215) | |||||||||||||||||||||||||
$1,659,815 | $(810,515) | |||||||||||||||||||||||||
Options on index | ||||||||||||||||||||||||||
Counterparty (OTC)/ Exchange- traded | Name of issuer | Currency | Exercise price | Expiration date | Number of contracts | Notional amount | Premium | Value | ||||||||||||||||||
Calls | ||||||||||||||||||||||||||
CITI | FTSE China A50 Index | HKD | 25.00 | Jun 2021 | 3,200,000 | 3,200,000 | $15,602 | $(17,366) | ||||||||||||||||||
MSI | FTSE China A50 Index | HKD | 25.00 | Jun 2021 | 6,280,000 | 6,280,000 | 116,170 | (34,081) | ||||||||||||||||||
$131,772 | $(51,447) | |||||||||||||||||||||||||
Puts | ||||||||||||||||||||||||||
GSI | EURO STOXX Banks Index | EUR | 50.00 | Mar 2021 | 42,500 | 42,500 | $140,639 | $(193,696) | ||||||||||||||||||
$140,639 | $(193,696) | |||||||||||||||||||||||||
$272,411 | $(245,143) |
31 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Foreign currency options
Description | Counterparty (OTC) | Currency | Exercise price | Expiration date | Notional amount* | Premium | Value | |||||||||||||||||||
Calls | ||||||||||||||||||||||||||
U.S. Dollar vs. Japanese | ||||||||||||||||||||||||||
Yen | GSI | USD | 135.00 | Sep 2021 | 20,020,323 | $271,275 | $ | (460 | ) | |||||||||||||||||
$271,275 | $ | (460 | ) |
* For this type of option, notional amounts are equivalent to number of contracts.
SWAPS
Total return swaps
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Euro STOXX 50 ETF | 1-Month EUR EURIBOR - 0.50% | Monthly | EUR | 4,441,549 | May 2023 | GSI | — | $432,146 | $432,146 | ||||||||||||||||||
Pay | Financial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 263,209 | May 2023 | GSI | — | 10,079 | 10,079 | ||||||||||||||||||
Pay | Financial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.50% | Monthly | USD | 138,713 | May 2023 | GSI | — | 5,311 | 5,311 | ||||||||||||||||||
Pay | GS China Real Financial Conditions Index | 1-Month HKD HIBOR - 0.70% | Monthly | HKD | 2,455,994 | May 2023 | GSI | — | 8,864 | 8,864 | ||||||||||||||||||
Pay | GS China Real Financial Conditions Index | 1-Month HKD HIBOR - 0.45% | Monthly | HKD | 4,557,287 | May 2023 | GSI | — | 16,461 | 16,461 | ||||||||||||||||||
Pay | GS China Real Financial Conditions Index | 1-Month HKD HIBOR - 0.45% | Monthly | HKD | 25,825,092 | May 2023 | GSI | — | 93,280 | 93,280 | ||||||||||||||||||
Pay | GS China Real Financial Conditions Index | 1-Month HKD HIBOR - 0.45% | Monthly | HKD | 2,246,306 | May 2023 | GSI | — | 8,114 | 8,114 | ||||||||||||||||||
Pay | Hang Seng Properties Index | 1-Month HKD HIBOR - 0.30% | Monthly | HKD | 217,537 | May 2023 | GSI | — | 1,010 | 1,010 | ||||||||||||||||||
Pay | Hang Seng Properties Index | 1-Month HKD HIBOR - 0.30% | Monthly | HKD | 31,077 | May 2023 | GSI | — | 144 | 144 | ||||||||||||||||||
Pay | Hang Seng Properties Index | 1-Month HKD HIBOR - 0.30% | Monthly | HKD | 93,230 | May 2023 | GSI | — | 433 | 433 | ||||||||||||||||||
Pay | iShares Expanded Tech Sector ETF | 1-Month USD LIBOR - 1.05% | Monthly | USD | 494,591 | May 2023 | GSI | — | 29,300 | 29,300 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 32 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 290,861 | May 2023 | GSI | — | $19,731 | $19,731 | ||||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR - 1.20% | Monthly | USD | 654 | May 2023 | GSI | — | 44 | 44 | ||||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR - 1.40% | Monthly | USD | 11,993,927 | May 2023 | GSI | — | 813,639 | 813,639 | ||||||||||||||||||
Pay | iShares MSCI Brazil ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 13,309 | May 2023 | GSI | — | 1,142 | 1,142 | ||||||||||||||||||
Pay | iShares MSCI Brazil ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 1,442,000 | May 2023 | GSI | — | 123,684 | 123,684 | ||||||||||||||||||
Pay | iShares MSCI EAFE ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 7,070,890 | May 2023 | GSI | — | 374,162 | 374,162 | ||||||||||||||||||
Pay | iShares MSCI India ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 416,976 | May 2023 | GSI | — | 17,255 | 17,255 | ||||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 428,841 | May 2023 | GSI | — | 18,631 | 18,631 | ||||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR - 0.55% | Monthly | USD | 64,169 | May 2023 | GSI | — | 2,778 | 2,778 | ||||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR - 1.00% | Monthly | USD | 347,059 | May 2023 | GSI | — | 15,023 | 15,023 | ||||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR - 1.00% | Monthly | USD | 323,440 | May 2023 | GSI | — | 14,001 | 14,001 | ||||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR - 0.80% | Monthly | USD | 191,142 | May 2023 | GSI | — | 8,274 | 8,274 | ||||||||||||||||||
Pay | iShares PHLX Semiconductor ETF | 1-Month USD LIBOR - 1.10% | Monthly | USD | 319,304 | May 2023 | GSI | — | 17,796 | 17,796 | ||||||||||||||||||
Pay | iShares Russell 1000 Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 2,547,652 | May 2023 | GSI | — | 145,236 | 145,236 | ||||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 208,635 | May 2023 | GSI | — | 10,907 | 10,907 | ||||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR - 0.55% | Monthly | USD | 183,674 | May 2023 | GSI | — | 9,602 | 9,602 |
33 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR - 0.70% | Monthly | USD | 8,816,607 | May 2023 | GSI | — | $460,899 | $460,899 | ||||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 4,195 | May 2023 | GSI | — | 215 | 215 | ||||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 184,417 | May 2023 | GSI | — | 9,433 | 9,433 | ||||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 38,831,806 | May 2023 | GSI | — | 1,986,174 | 1,986,174 | ||||||||||||||||||
Pay | SPDR S&P 500 ETF | 1-Month USD LIBOR - 0.33% | Monthly | USD | 1,758,449 | May 2023 | GSI | — | 79,658 | 79,658 | ||||||||||||||||||
Pay | SPDR S&P 500 ETF | 1-Month USD LIBOR - 0.33% | Monthly | USD | 10,373,853 | May 2023 | GSI | — | 469,936 | 469,936 | ||||||||||||||||||
Pay | SPDR S&P 500 ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 545,974 | May 2023 | GSI | — | 24,646 | 24,646 | ||||||||||||||||||
Pay | SPDR S&P Biotech ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 700,320 | May 2023 | GSI | — | 23,700 | 23,700 | ||||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR - 0.90% | Monthly | USD | 581,045 | May 2023 | GSI | — | (15,959 | ) | (15,959 | ) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR - 0.75% | Monthly | USD | 1,664,518 | May 2023 | GSI | — | (45,717 | ) | (45,717 | ) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR - 0.75% | Monthly | USD | 934,447 | May 2023 | GSI | — | (25,665 | ) | (25,665 | ) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR - 0.35% | Monthly | USD | 1,633,720 | May 2023 | GSI | — | (44,871 | ) | (44,871 | ) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR - 0.60% | Monthly | USD | 1,466,471 | May 2023 | GSI | — | (40,278 | ) | (40,278 | ) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR - 0.60% | Monthly | USD | 3,549,912 | May 2023 | GSI | — | (97,501 | ) | (97,501 | ) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR - 0.60% | Monthly | USD | 3,859,018 | May 2023 | GSI | — | (105,991 | ) | (105,991 | ) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR - 1.15% | Monthly | USD | 2,698,769 | May 2023 | GSI | — | (74,124 | ) | (74,124 | ) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR - 1.15% | Monthly | USD | 281,752 | May 2023 | GSI | — | (7,739 | ) | (7,739 | ) | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR - 2.40% | Monthly | USD | 1,020,880 | May 2023 | GSI | — | 74,967 | 74,967 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 34 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR - 2.40% | Monthly | USD | 968,381 | May 2023 | GSI |
| — |
|
| $71,112 |
|
| $71,112 |
| ||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR - 2.40% | Monthly | USD | 690,072 | May 2023 | GSI |
| — |
|
| 50,675 |
|
| 50,675 |
| ||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR - 2.40% | Monthly | USD | 1,790,077 | May 2023 | GSI |
| — |
|
| 131,452 |
|
| 131,452 |
| ||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR - 2.40% | Monthly | USD | 411,816 | May 2023 | GSI |
| — |
|
| 30,241 |
|
| 30,241 |
| ||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR - 2.40% | Monthly | USD | 823,148 | May 2023 | GSI |
| — |
|
| 60,447 |
|
| 60,447 |
| ||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR - 1.75% | Monthly | USD | 4,080,725 | May 2023 | GSI |
| — |
|
| 299,663 |
|
| 299,663 |
| ||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 17,456 | May 2023 | GSI |
| — |
|
| 1,011 |
|
| 1,011 |
| ||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 6,128 | May 2023 | GSI |
| — |
|
| 355 |
|
| 355 |
| ||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR - 0.75% | Monthly | USD | 8,171 | May 2023 | GSI |
| — |
|
| 473 |
|
| 473 |
| ||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR - 0.75% | Monthly | USD | 3,528 | May 2023 | GSI |
| — |
|
| 204 |
|
| 204 |
| ||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR - 0.75% | Monthly | USD | 1,486 | May 2023 | GSI |
| — |
|
| 86 |
|
| 86 |
| ||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 2,563,301 | May 2023 | GSI |
| — |
|
| 133,062 |
|
| 133,062 |
| ||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 329,510 | May 2023 | GSI |
| — |
|
| 17,105 |
|
| 17,105 |
| ||||||||||
Pay | Consumer Discretionary Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 1,972,370 | May 2023 | JPM |
| — |
|
| 95,317 |
|
| 95,317 |
| ||||||||||
Pay | Euro STOXX Small 200 ETF | 1-Month EUR EURIBOR - 0.35% | Monthly | EUR | 4,906,097 | May 2023 | JPM |
| — |
|
| 343,328 |
|
| 343,328 |
| ||||||||||
Pay | Euro STOXX Small 200 ETF | 1-Month EUR EURIBOR - 0.35% | Monthly | EUR | 1,840,342 | May 2023 | JPM |
| — |
|
| 103,352 |
|
| 103,352 |
| ||||||||||
Pay | Euro STOXX Small 200 ETF | 1-Month EUR EURIBOR - 0.35% | Monthly | EUR | 38,763 | May 2023 | JPM |
| — |
|
| 2,384 |
|
| 2,384 |
| ||||||||||
Pay | Euro STOXX Small 200 ETF | 1-Month EUR EURIBOR - 0.35% | Monthly | EUR | 38,568 | May 2023 | JPM |
| — |
|
| (94 | ) |
| (94 | ) |
35 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | Euro STOXX Small 200 ETF | 1-Month EUR EURIBOR -0.35% | Monthly | EUR | 38,781 | May 2023 | JPM | — | — | — | ||||||||||||||||
Pay | Hang Seng Finance Index | 1-Month HKD HIBOR - 0.30% | Monthly | HKD | 246,082 | May 2023 | JPM | — | $(227 | ) | $(227 | ) | ||||||||||||||
Pay | Hang Seng Properties Index | 1-Month HKD HIBOR - 0.37% | Monthly | HKD | 62,478 | May 2023 | JPM | — | 330 | 330 | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.33% | Monthly | USD | 8,536,315 | May 2023 | JPM | — | 373,784 | 373,784 | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 7,557,292 | May 2023 | JPM | — | 329,876 | 329,876 | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 1,173,021 | May 2023 | JPM | — | 51,202 | 51,202 | ||||||||||||||||
Pay | iShares Expanded Tech Sector ETF | 1-Month USD LIBOR - 5.44% | Monthly | USD | 1,230,013 | May 2023 | JPM | — | 48,287 | 48,287 | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR - 2.30% | Monthly | USD | 2,577,282 | May 2023 | JPM | — | 89,897 | 89,897 | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -2.30% | Monthly | USD | 2,309,611 | May 2023 | JPM | — | 80,560 | 80,560 | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR - 1.06% | Monthly | USD | 1,515,120 | May 2023 | JPM | — | 52,848 | 52,848 | ||||||||||||||||
Pay | iShares MSCI India ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 309,008 | May 2023 | JPM | — | 10,057 | 10,057 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR - 0.92% | Monthly | USD | 3,695,814 | May 2023 | JPM | — | 237,486 | 237,486 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR - 1.04% | Monthly | USD | 1,017,605 | May 2023 | JPM | — | 65,254 | 65,254 | ||||||||||||||||
Pay | iShares Russell 1000 Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 1,170,274 | May 2023 | JPM | — | 52,583 | 52,583 | ||||||||||||||||
Pay | iShares Russell 1000 Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 2,665,099 | May 2023 | JPM | — | 119,750 | 119,750 | ||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR - 1.00% | Monthly | USD | 4,658,064 | May 2023 | JPM | — | 152,038 | 152,038 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 36 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment | Unrealized (depreciation) | Value | ||||||||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 147,648 | May 2023 | JPM | — | $4,819 | $4,819 | ||||||||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR - 1.68% | Monthly | USD | 8,696,467 | May 2023 | JPM | — | 283,851 | 283,851 | ||||||||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR - 2.54% | Monthly | USD | 132,653 | May 2023 | JPM | — | 4,330 | 4,330 | ||||||||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR - 0.33% | Monthly | USD | 2,217,249 | May 2023 | JPM | — | 49,595 | 49,595 | ||||||||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 100,559 | May 2023 | JPM | — | 2,249 | 2,249 | ||||||||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 1,147,219 | May 2023 | JPM | — | 25,661 | 25,661 | ||||||||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR - 0.81% | Monthly | USD | 118,440 | May 2023 | JPM | — | 2,649 | 2,649 | ||||||||||||||||||||||
Pay | iShares U.S. Home Construction ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 92,816 | May 2023 | JPM | — | 9,584 | 9,584 | ||||||||||||||||||||||
Pay | Nasdaq OMX ABA Community Bank Index | 1-Month USD LIBOR - 0.20% | Monthly | USD | 437,498 | May 2023 | JPM | — | (28,837 | ) | (28,837 | ) | ||||||||||||||||||||
Pay | Nasdaq OMX ABA Community Bank Index | 1-Month USD LIBOR - 0.20% | Monthly | USD | 283,379 | May 2023 | JPM | — | (18,678 | ) | (18,678 | ) | ||||||||||||||||||||
Pay | SPDR S&P 500 ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 1,370,932 | May 2023 | JPM | — | 47,939 | 47,939 | ||||||||||||||||||||||
Pay | SPDR S&P Biotech ETF | 1-Month USD LIBOR - 0.90% | Monthly | USD | 14,011,273 | May 2023 | JPM | — | 369,721 | 369,721 | ||||||||||||||||||||||
Pay | SPDR S&P Biotech ETF | 1-Month USD LIBOR - 1.52% | Monthly | USD | 14,476,250 | May 2023 | JPM | — | 380,000 | 380,000 | ||||||||||||||||||||||
Pay | SPDR S&P Biotech ETF | 1-Month USD LIBOR - 1.20% | Monthly | USD | 1,551,275 | May 2023 | JPM | — | 40,721 | 40,721 | ||||||||||||||||||||||
Pay | SPDR S&P Biotech ETF | 1-Month USD LIBOR - 1.20% | Monthly | USD | 1,445,540 | May 2023 | JPM | — | 37,945 | 37,945 | ||||||||||||||||||||||
Pay | SPDR S&P Pharmaceuticals ETF | 1-Month USD LIBOR - 1.12% | Monthly | USD | 4,351,119 | May 2023 | JPM | — | 137,228 | 137,228 | ||||||||||||||||||||||
Pay | SPDR S&P Pharmaceuticals ETF | 1-Month USD LIBOR - 1.27% | Monthly | USD | 637,196 | May 2023 | JPM | — | 20,009 | 20,009 |
37 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | SPDR S&P Pharmaceuticals ETF | 1-Month USD LIBOR-0.78% | Monthly | USD | 519,384 | May 2023 | JPM | — | $16,309 | $16,309 | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR-0.92% | Monthly | USD | 505,435 | May 2023 | JPM | — | (35,009) | (35,009) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR-0.97% | Monthly | USD | 488,273 | May 2023 | JPM | — | (33,880) | (33,880) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR-0.81% | Monthly | USD | 1,020,028 | May 2023 | JPM | — | (70,776) | (70,776) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR-0.81% | Monthly | USD | 3,001,940 | May 2023 | JPM | — | (208,295) | (208,295) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR-1.73% | Monthly | USD | 183,550 | May 2023 | JPM | — | (12,736) | (12,736) | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR-1.11% | Monthly | USD | 1,976,718 | May 2023 | JPM | — | (137,158) | (137,158) | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR-2.13% | Monthly | USD | 359,733 | May 2023 | JPM | — | 19,974 | 19,974 | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR-2.13% | Monthly | USD | 484,270 | May 2023 | JPM | — | 26,889 | 26,889 | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR-2.13% | Monthly | USD | 6,691,764 | May 2023 | JPM | — | 371,553 | 371,553 | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR-0.28% | Monthly | USD | 3,853,529 | May 2023 | JPM | — | 213,963 | 213,963 | ||||||||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR-0.28% | Monthly | USD | 31,871 | May 2023 | JPM | — | 730 | 730 | ||||||||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR-0.28% | Monthly | USD | 14,145 | May 2023 | JPM | — | 324 | 324 | ||||||||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR-1.39% | Monthly | USD | 1,074 | May 2023 | JPM | — | 25 | 25 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR-0.28% | Monthly | USD | 487,606 | May 2023 | JPM | — | 26,199 | 26,199 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR-0.28% | Monthly | USD | 1,830,816 | May 2023 | JPM | — | 98,370 | 98,370 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR-0.28% | Monthly | USD | 442,956 | May 2023 | JPM | — | 23,800 | 23,800 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR-0.28% | Monthly | USD | 458,174 | May 2023 | JPM | — | 35,618 | 35,618 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 38 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR - 0.28% | Monthly | USD | 4,247,776 | May 2023 | JPM | — | $330,216 | $330,216 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR - 0.40% | Monthly | USD | 254,009 | May 2023 | JPM | — | 19,746 | 19,746 | ||||||||||||||||
Pay | China H Real Estate Index | 1-Month HKD HIBOR - 0.50% | Monthly | HKD | 316,725 | May 2023 | MSI | — | 1,770 | 1,770 | ||||||||||||||||
Pay | Consumer Discretionary Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 5,005,104 | May 2023 | MSI | — | 366,013 | 366,013 | ||||||||||||||||
Pay | Consumer Discretionary Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 4,761,698 | May 2023 | MSI | — | 348,214 | 348,214 | ||||||||||||||||
Pay | Energy Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 3,537,245 | May 2023 | MSI | — | 248,489 | 248,489 | ||||||||||||||||
Pay | Energy Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 2,160,628 | May 2023 | MSI | — | 70,357 | 70,357 | ||||||||||||||||
Pay | Euro STOXX 50 ETF | 1-Month EUR EURIBOR - 0.40% | Monthly | EUR | 2,451,986 | May 2023 | MSI | — | 209,731 | 209,731 | ||||||||||||||||
Pay | Euro STOXX 50 ETF | 1-Month EUR EURIBOR - 0.40% | Monthly | EUR | 587,455 | May 2023 | MSI | — | 50,248 | 50,248 | ||||||||||||||||
Pay | Financial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 2,394,973 | May 2023 | MSI | — | 106,465 | 106,465 | ||||||||||||||||
Pay | Financial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 380,443 | May 2023 | MSI | — | 16,912 | 16,912 | ||||||||||||||||
Pay | Financial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.65% | Monthly | USD | 675,888 | May 2023 | MSI | — | 30,045 | 30,045 | ||||||||||||||||
Pay | Financial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.65% | Monthly | USD | 143,303 | May 2023 | MSI | — | 6,370 | 6,370 | ||||||||||||||||
Pay | Financial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 385,562 | May 2023 | MSI | — | 17,140 | 17,140 | ||||||||||||||||
Pay | Financial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 388,184 | May 2023 | MSI | — | 17,256 | 17,256 | ||||||||||||||||
Pay | Financial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 239,612 | May 2023 | MSI | — | 10,652 | 10,652 |
39 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.45% | Monthly | USD | 2,693,941 | May 2023 | MSI | — | $131,092 | $131,092 | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.45% | Monthly | USD | 2,324,632 | May 2023 | MSI | — | 113,787 | 113,787 | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 6,803,669 | May 2023 | MSI | — | 332,923 | 332,923 | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 5,257,405 | May 2023 | MSI | — | 255,835 | 255,835 | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 881,702 | May 2023 | MSI | — | 42,905 | 42,905 | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 756,996 | May 2023 | MSI | — | 36,837 | 36,837 | ||||||||||||||||
Pay | Health Care Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 1,923,480 | May 2023 | MSI | — | 93,600 | 93,600 | ||||||||||||||||
Pay | Industrial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 219,942 | May 2023 | MSI | — | 13,955 | 13,955 | ||||||||||||||||
Pay | Industrial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 2,349,371 | May 2023 | MSI | — | 149,065 | 149,065 | ||||||||||||||||
Pay | Industrial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 189,401 | May 2023 | MSI | — | 12,017 | 12,017 | ||||||||||||||||
Pay | Industrial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 1,698,375 | May 2023 | MSI | — | 107,760 | 107,760 | ||||||||||||||||
Pay | Industrial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 2,536,342 | May 2023 | MSI | — | 160,928 | 160,928 | ||||||||||||||||
Pay | Industrial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 502,667 | May 2023 | MSI | — | 31,894 | 31,894 | ||||||||||||||||
Pay | Industrial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 3,805,364 | May 2023 | MSI | — | 241,446 | 241,446 | ||||||||||||||||
Pay | Industrial Select Sector SPDR Fund | 1-Month USD LIBOR - 0.28% | Monthly | USD | 1,190,039 | May 2023 | MSI | — | 4,798 | 4,798 | ||||||||||||||||
Pay | Invesco QQQ Trust Series 1 | 1-Month USD LIBOR - 0.28% | Monthly | USD | 6,172,168 | May 2023 | MSI | — | 432,579 | 432,579 | ||||||||||||||||
Pay | Invesco QQQ Trust Series 1 | 1-Month USD LIBOR - 0.28% | Monthly | USD | 4,216,023 | May 2023 | MSI | — | 295,481 | 295,481 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 40 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | Invesco QQQ Trust Series 1 | 1-Month USD LIBOR -0.28% | Monthly | USD | 3,293,919 | May 2023 | MSI | — | $159,413 | $159,413 | ||||||||||||||||
Pay | Invesco QQQ Trust Series 1 | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,172,888 | May 2023 | MSI | — | 70,854 | 70,854 | ||||||||||||||||
Pay | Invesco S&P 500 High Beta ETF | 1-Month USD LIBOR -2.87% | Monthly | USD | 3,439,796 | May 2023 | MSI | — | 140,495 | 140,495 | ||||||||||||||||
Pay | Invesco S&P 500 High Beta ETF | 1-Month USD LIBOR -1.03% | Monthly | USD | 81,485 | May 2023 | MSI | — | 3,328 | 3,328 | ||||||||||||||||
Pay | iShares Expanded Tech Sector ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 656,708 | May 2023 | MSI | — | 47,348 | 47,348 | ||||||||||||||||
Pay | iShares Expanded Tech Sector ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 797,527 | May 2023 | MSI | — | — | — | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -1.41% | Monthly | USD | 71,386 | May 2023 | MSI | — | 5,584 | 5,584 | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -1.83% | Monthly | USD | 99,147 | May 2023 | MSI | — | 7,755 | 7,755 | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -1.34% | Monthly | USD | 279,925 | May 2023 | MSI | — | 21,895 | 21,895 | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -1.30% | Monthly | USD | 1,619,401 | May 2023 | MSI | — | 126,665 | 126,665 | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -1.35% | Monthly | USD | 32,058 | May 2023 | MSI | — | 2,507 | 2,507 | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -1.34% | Monthly | USD | 900,916 | May 2023 | MSI | — | 70,467 | 70,467 | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 30,452 | May 2023 | MSI | — | — | — | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,191,429 | May 2023 | MSI | — | — | — |
41 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | iShares Expanded Tech-Software Sector ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 789,530 | May 2023 | MSI | — | — | — | ||||||||||||||||
Pay | iShares MSCI ACWI ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 4,031,502 | May 2023 | MSI | — | $208,425 | $208,425 | ||||||||||||||||
Pay | iShares MSCI ACWI ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 3,391,666 | May 2023 | MSI | — | 175,346 | 175,346 | ||||||||||||||||
Pay | iShares MSCI ACWI ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,645,112 | May 2023 | MSI | — | 57,463 | 57,463 | ||||||||||||||||
Pay | iShares MSCI ACWI ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 3,266,720 | May 2023 | MSI | — | 129,712 | 129,712 | ||||||||||||||||
Pay | iShares MSCI EAFE ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,078,854 | May 2023 | MSI | — | 51,063 | 51,063 | ||||||||||||||||
Pay | iShares MSCI EAFE ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 583,118 | May 2023 | MSI | — | 27,599 | 27,599 | ||||||||||||||||
Pay | iShares MSCI Emerging Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,888,186 | May 2023 | MSI | — | 28,697 | 28,697 | ||||||||||||||||
Pay | iShares MSCI Emerging Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,501,060 | May 2023 | MSI | — | 22,813 | 22,813 | ||||||||||||||||
Pay | iShares MSCI Emerging Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,213,931 | May 2023 | MSI | — | 33,648 | 33,648 | ||||||||||||||||
Pay | iShares MSCI India ETF | 1-Month USD LIBOR -0.58% | Monthly | USD | 59,092 | May 2023 | MSI | — | 1,989 | 1,989 | ||||||||||||||||
Pay | iShares MSCI India ETF | 1-Month USD LIBOR -0.69% | Monthly | USD | 250,272 | May 2023 | MSI | — | 8,424 | 8,424 | ||||||||||||||||
Pay | iShares MSCI Indonesia ETF | 1-Month USD LIBOR -3.74% | Monthly | USD | 1,368,989 | May 2023 | MSI | — | 4,479 | 4,479 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -1.16% | Monthly | USD | 3,362,339 | May 2023 | MSI | — | 207,474 | 207,474 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -1.16% | Monthly | USD | 1,162,264 | May 2023 | MSI | — | 72,033 | 72,033 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -1.16% | Monthly | USD | 3,750,596 | May 2023 | MSI | — | 232,449 | 232,449 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -1.16% | Monthly | USD | 380,322 | May 2023 | MSI | — | 23,571 | 23,571 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -0.35% | Monthly | USD | 3,016,124 | May 2023 | MSI | — | 186,976 | 186,976 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -1.10% | Monthly | USD | 3,378,905 | May 2023 | MSI | — | 209,465 | 209,465 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 42 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -1.18% | Monthly | USD | 2,699,978 | May 2023 | MSI | — | $167,335 | $167,335 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,875,716 | May 2023 | MSI | — | 116,250 | 116,250 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -1.05% | Monthly | USD | 2,574,689 | May 2023 | MSI | — | 158,872 | 158,872 | ||||||||||||||||
Pay | iShares Nasdaq Biotechnology ETF | 1-Month USD LIBOR -1.50% | Monthly | USD | 1,297,855 | May 2023 | MSI | — | 80,085 | 80,085 | ||||||||||||||||
Pay | iShares PHLX Semiconductor ETF | 1-Month USD LIBOR -1.69% | Monthly | USD | 1,715,065 | May 2023 | MSI | — | 114,044 | 114,044 | ||||||||||||||||
Pay | iShares Russell 1000 ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,508,565 | May 2023 | MSI | — | 154,371 | 154,371 | ||||||||||||||||
Pay | iShares Russell 1000 Growth ETF | 1-Month USD LIBOR -0.64% | Monthly | USD | 2,811,293 | May 2023 | MSI | — | 203,908 | 203,908 | ||||||||||||||||
Pay | iShares Russell 1000 Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 4,814,218 | May 2023 | MSI | — | — | — | ||||||||||||||||
Pay | iShares Russell 2000 ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 10,973,256 | May 2023 | MSI | — | 651,316 | 651,316 | ||||||||||||||||
Pay | iShares Russell 2000 ETF | 1-Month USD LIBOR -1.09% | Monthly | USD | 2,733,061 | May 2023 | MSI | — | 162,220 | 162,220 | ||||||||||||||||
Pay | iShares Russell 2000 ETF | 1-Month USD LIBOR -1.09% | Monthly | USD | 1,231,692 | May 2023 | MSI | — | 73,107 | 73,107 | ||||||||||||||||
Pay | iShares Russell 2000 ETF | 1-Month USD LIBOR -1.09% | Monthly | USD | 4,530,797 | May 2023 | MSI | — | 269,164 | 269,164 | ||||||||||||||||
Pay | iShares Russell 2000 ETF | 1-Month USD LIBOR -1.09% | Monthly | USD | 2,367,524 | May 2023 | MSI | — | 140,524 | 140,524 | ||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR -1.73% | Monthly | USD | 110,336 | May 2023 | MSI | — | 7,677 | 7,677 | ||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,422,130 | May 2023 | MSI | — | 98,955 | 98,955 | ||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR -1.05% | Monthly | USD | 3,854,550 | May 2023 | MSI | — | 268,208 | 268,208 | ||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR -1.73% | Monthly | USD | 139,838 | May 2023 | MSI | — | 9,730 | 9,730 | ||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR -1.85% | Monthly | USD | 7,113,768 | May 2023 | MSI | — | 494,992 | 494,992 |
43 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 120,170 | May 2023 | MSI | — | $8,362 | $8,362 | ||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR -2.14% | Monthly | USD | 291,910 | May 2023 | MSI | — | 20,312 | 20,312 | ||||||||||||||||
Pay | iShares Russell 2000 Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 3,267,853 | May 2023 | MSI | — | 227,385 | 227,385 | ||||||||||||||||
Pay | iShares Russell 2000 Value ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,162,473 | May 2023 | MSI | — | 58,729 | 58,729 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 982,826 | May 2023 | MSI | — | 63,425 | 63,425 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 447,193 | May 2023 | MSI | — | 28,859 | 28,859 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,414,293 | May 2023 | MSI | — | 91,269 | 91,269 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 3,860,257 | May 2023 | MSI | — | 249,116 | 249,116 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 11,063,456 | May 2023 | MSI | — | 713,964 | 713,964 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.68% | Monthly | USD | 139,875 | May 2023 | MSI | — | 9,027 | 9,027 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.84% | Monthly | USD | 3,693,184 | May 2023 | MSI | — | 238,334 | 238,334 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 120,078 | May 2023 | MSI | — | 7,749 | 7,749 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.45% | Monthly | USD | 2,846,718 | May 2023 | MSI | — | 183,709 | 183,709 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 880,695 | May 2023 | MSI | — | 56,834 | 56,834 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 4,319,107 | May 2023 | MSI | — | 278,727 | 278,727 | ||||||||||||||||
Pay | iShares Russell Mid-Cap Growth ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 291,592 | May 2023 | MSI | — | 18,817 | 18,817 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 44 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | iShares U.S. Home Construction ETF | 1-Month USD LIBOR -1.24% | Monthly | USD | 497,834 | May 2023 | MSI | — | $66,068 | $66,068 | ||||||||||||||||
Pay | iShares U.S. Home Construction ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 617,794 | May 2023 | MSI | — | 81,988 | 81,988 | ||||||||||||||||
Pay | iShares U.S. Home Construction ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 636,766 | May 2023 | MSI | — | 12,526 | 12,526 | ||||||||||||||||
Pay | iShares U.S. Home Construction ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 957,867 | May 2023 | MSI | — | — | — | ||||||||||||||||
Pay | SPDR S&P 500 ETF | 1-Month USD LIBOR -0.54% | Monthly | USD | 1,902,563 | May 2023 | MSI | — | 107,424 | 107,424 | ||||||||||||||||
Pay | SPDR S&P 500 ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 413,178 | May 2023 | MSI | — | 23,329 | 23,329 | ||||||||||||||||
Pay | SPDR S&P 500 ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 354,798 | May 2023 | MSI | — | 20,033 | 20,033 | ||||||||||||||||
Pay | SPDR S&P 500 ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 861,800 | May 2023 | MSI | — | 51,981 | 51,981 | ||||||||||||||||
Pay | SPDR S&P Pharmaceuticals ETF | 1-Month USD LIBOR -0.35% | Monthly | USD | 1,276,571 | May 2023 | MSI | — | 68,059 | 68,059 | ||||||||||||||||
Pay | SPDR S&P Pharmaceuticals ETF | 1-Month USD LIBOR -2.70% | Monthly | USD | 1,712,421 | May 2023 | MSI | — | 91,296 | 91,296 | ||||||||||||||||
Pay | SPDR S&P Pharmaceuticals ETF | 1-Month USD LIBOR -2.93% | Monthly | USD | 1,368,381 | May 2023 | MSI | — | 72,932 | 72,932 | ||||||||||||||||
Pay | SPDR S&P Pharmaceuticals ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 950,605 | May 2023 | MSI | — | 50,665 | 50,665 | ||||||||||||||||
Pay | SPDR S&P Pharmaceuticals ETF | 1-Month USD LIBOR -2.20% | Monthly | USD | 679,276 | May 2023 | MSI | — | 36,020 | 36,020 | ||||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 282,678 | May 2023 | MSI | — | (13,231 | ) | (13,231 | ) | ||||||||||||||
Pay | SPDR S&P Regional Banking ETF | 1-Month USD LIBOR -1.45% | Monthly | USD | 1,413,234 | May 2023 | MSI | — | (66,150 | ) | (66,150 | ) | ||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR -2.62% | Monthly | USD | 955,296 | May 2023 | MSI | — | 87,731 | 87,731 | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR -2.55% | Monthly | USD | 547,648 | May 2023 | MSI | — | 50,294 | 50,294 |
45 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR -2.35% | Monthly | USD | 1,600,081 | May 2023 | MSI | — | $146,946 | $146,946 | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR -2.09% | Monthly | USD | 340,969 | May 2023 | MSI | — | 31,314 | 31,314 | ||||||||||||||||
Pay | SPDR S&P Retail ETF | 1-Month USD LIBOR -1.84% | Monthly | USD | 1,048,098 | May 2023 | MSI | — | 96,254 | 96,254 | ||||||||||||||||
Pay | VanEck Vectors Russia ETF | 1-Month USD LIBOR -0.84% | Monthly | USD | 1,246,661 | May 2023 | MSI | — | 77,240 | 77,240 | ||||||||||||||||
Pay | VanEck Vectors Russia ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 33,505 | May 2023 | MSI | — | — | — | ||||||||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR -1.34% | Monthly | USD | 6,004 | May 2023 | MSI | — | 406 | 406 | ||||||||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR -1.34% | Monthly | USD | 16,512 | May 2023 | MSI | — | 1,117 | 1,117 | ||||||||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR -1.35% | Monthly | USD | 4,503 | May 2023 | MSI | — | 305 | 305 | ||||||||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR -1.36% | Monthly | USD | 13,322 | May 2023 | MSI | — | 901 | 901 | ||||||||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR -1.09% | Monthly | USD | 17,826 | May 2023 | MSI | — | 1,206 | 1,206 | ||||||||||||||||
Pay | VanEck Vectors Semiconductor ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,892,973 | May 2023 | MSI | — | 138,560 | 138,560 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,028,293 | May 2023 | MSI | — | 49,144 | 49,144 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,112,806 | May 2023 | MSI | — | 100,974 | 100,974 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,107,714 | May 2023 | MSI | — | 52,939 | 52,939 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,112,019 | May 2023 | MSI | — | 100,936 | 100,936 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 3,607,807 | May 2023 | MSI | — | 172,422 | 172,422 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,666,932 | May 2023 | MSI | — | 127,457 | 127,457 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.80% | Monthly | USD | 3,278,729 | May 2023 | MSI | — | 156,695 | 156,695 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 46 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.80% | Monthly | USD | 2,303,467 | May 2023 | MSI | — | $110,086 | $110,086 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,765,535 | May 2023 | MSI | — | 132,169 | 132,169 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 272,319 | May 2023 | MSI | — | 13,015 | 13,015 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,242,237 | May 2023 | MSI | — | 59,368 | 59,368 | ||||||||||||||||
Pay | Vanguard FTSE Developed Markets ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,289,795 | May 2023 | MSI | — | 109,433 | 109,433 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.66% | Monthly | USD | 1,160,131 | May 2023 | MSI | — | 75,052 | 75,052 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.66% | Monthly | USD | 283,074 | May 2023 | MSI | — | 18,390 | 18,390 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.66% | Monthly | USD | 752,884 | May 2023 | MSI | — | 48,910 | 48,910 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.66% | Monthly | USD | 90,876 | May 2023 | MSI | — | 5,904 | 5,904 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.35% | Monthly | USD | 720,754 | May 2023 | MSI | — | 46,834 | 46,834 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.35% | Monthly | USD | 807,442 | May 2023 | MSI | — | 52,467 | 52,467 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.48% | Monthly | USD | 645,200 | May 2023 | MSI | — | 41,915 | 41,915 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 448,231 | May 2023 | MSI | — | 29,119 | 29,119 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 2,367,290 | May 2023 | MSI | — | 153,146 | 153,146 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.70% | Monthly | USD | 8,763,358 | May 2023 | MSI | — | 566,924 | 566,924 | ||||||||||||||||
Pay | Vanguard FTSE Europe ETF | 1-Month USD LIBOR -0.70% | Monthly | USD | 320,294 | May 2023 | MSI | — | 20,721 | 20,721 | ||||||||||||||||
Pay | WisdomTree Cloud Computing ETF | 1-Month USD LIBOR -5.64% | Monthly | USD | 1,316,877 | May 2023 | MSI | — | 141,004 | 141,004 | ||||||||||||||||
Pay | WisdomTree Cloud Computing ETF | 1-Month USD LIBOR -5.64% | Monthly | USD | 1,933,494 | May 2023 | MSI | — | 207,028 | 207,028 | ||||||||||||||||
Pay | WisdomTree Cloud Computing ETF | 1-Month USD LIBOR -0.28% | Monthly | USD | 1,777,919 | May 2023 | MSI | — | 97,518 | 97,518 |
47 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Receive | Abbott Laboratories | 1-Month USD LIBOR + 0.20% | Monthly | USD | 89,614 | May 2023 | GSI | — | $(2,399 | ) | $(2,399 | ) | ||||||||||||||
Receive | Abbott Laboratories | 1-Month USD LIBOR + 0.20% | Monthly | USD | 269,275 | May 2023 | GSI | — | (7,208 | ) | (7,208 | ) | ||||||||||||||
Receive | Acadia Healthcare Company, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 38,985 | May 2023 | GSI | — | 3,114 | 3,114 | ||||||||||||||||
Receive | Acadia Healthcare Company, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 73,546 | May 2023 | GSI | — | 5,875 | 5,875 | ||||||||||||||||
Receive | Acceleron Pharma, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 180,433 | May 2023 | GSI | — | (12,076 | ) | (12,076 | ) | ||||||||||||||
Receive | AerCap Holdings NV | 1-Month USD LIBOR + 0.20% | Monthly | USD | 46,950 | May 2023 | GSI | — | (6,630 | ) | (6,630 | ) | ||||||||||||||
Receive | AerCap Holdings NV | 1-Month USD LIBOR + 0.20% | Monthly | USD | 326,914 | May 2023 | GSI | — | (46,168 | ) | (46,168 | ) | ||||||||||||||
Receive | Aerie Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 5,208 | May 2023 | GSI | — | 850 | 850 | ||||||||||||||||
Receive | Agilent Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 117,755 | May 2023 | GSI | — | (3,735 | ) | (3,735 | ) | ||||||||||||||
Receive | Agilent Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 221,992 | May 2023 | GSI | — | (7,042 | ) | (7,042 | ) | ||||||||||||||
Receive | Akero Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 53,466 | May 2023 | GSI | — | (186 | ) | (186 | ) | ||||||||||||||
Receive | ALD SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 313,951 | May 2023 | GSI | — | (28,771 | ) | (28,771 | ) | ||||||||||||||
Receive | Alkermes PLC | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,264,076 | May 2023 | GSI | — | (50,178 | ) | (50,178 | ) | ||||||||||||||
Receive | Alleghany Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 218,348 | May 2023 | GSI | — | 403 | 403 | ||||||||||||||||
Receive | Alleghany Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 605,370 | May 2023 | GSI | — | 1,118 | 1,118 | ||||||||||||||||
Receive | Alleghany Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 129,371 | May 2023 | GSI | — | 239 | 239 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 48 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Alleghany Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 85,156 | May 2023 | GSI | — | $157 | $157 | ||||||||||||||||||
Receive | Alleghany Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 85,702 | May 2023 | GSI | — | 158 | 158 | ||||||||||||||||||
Receive | Allscripts Healthcare Solutions, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 312,977 | May 2023 | GSI | — | (12,872 | ) | (12,872 | ) | ||||||||||||||||
Receive | Alnylam Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 35,645 | May 2023 | GSI | — | (4,660 | ) | (4,660 | ) | ||||||||||||||||
Receive | Alnylam Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 127,588 | May 2023 | GSI | — | (16,681 | ) | (16,681 | ) | ||||||||||||||||
Receive | Alnylam Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 63,653 | May 2023 | GSI | — | (8,322 | ) | (8,322 | ) | ||||||||||||||||
Receive | Amazon.com, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,622,596 | May 2023 | GSI | — | (59,059 | ) | (59,059 | ) | ||||||||||||||||
Receive | Amedisys, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 45,052 | May 2023 | GSI | — | 2,081 | 2,081 | ||||||||||||||||||
Receive | Amedisys, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 167,337 | May 2023 | GSI | — | 7,731 | 7,731 | ||||||||||||||||||
Receive | Amicus Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,803,696 | May 2023 | GSI | — | 90,674 | 90,674 | ||||||||||||||||||
Receive | Amicus Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 39,076 | May 2023 | GSI | — | 1,964 | 1,964 | ||||||||||||||||||
Receive | Amoy Diagnostics Company, Ltd. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 34,297 | May 2023 | GSI | — | (656 | ) | (656 | ) | ||||||||||||||||
Receive | Amoy Diagnostics Company, Ltd. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 563,724 | May 2023 | GSI | — | (10,784 | ) | (10,784 | ) | ||||||||||||||||
Receive | Anthem, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 67,556 | May 2023 | GSI | — | (4,273 | ) | (4,273 | ) | ||||||||||||||||
Receive | Anthem, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 127,541 | May 2023 | GSI | — | (8,067 | ) | (8,067 | ) | ||||||||||||||||
Receive | Apellis Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,522,636 | May 2023 | GSI | — | (70,012 | ) | (70,012 | ) |
49 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Apellis Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 117,005 | May 2023 | GSI | — | $(5,366 | ) | $(5,366 | ) | ||||||||||||||||
Receive | Archer Daniels Midland Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,525,184 | May 2023 | GSI | — | (138,961 | ) | (138,961 | ) | ||||||||||||||||
Receive | Ares Management Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 534,417 | May 2023 | GSI | — | (25,558 | ) | (25,558 | ) | ||||||||||||||||
Receive | Ares Management Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 259,102 | May 2023 | GSI | — | (12,391 | ) | (12,391 | ) | ||||||||||||||||
Receive | Ares Management Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 144,454 | May 2023 | GSI | — | (6,908 | ) | (6,908 | ) | ||||||||||||||||
Receive | Ares Management Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 169,329 | May 2023 | GSI | — | (8,098 | ) | (8,098 | ) | ||||||||||||||||
Receive | Ares Management Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 144,409 | May 2023 | GSI | — | (6,906 | ) | (6,906 | ) | ||||||||||||||||
Receive | Ares Management Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 288,863 | May 2023 | GSI | — | (13,814 | ) | (13,814 | ) | ||||||||||||||||
Receive | argenx SE,ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 40,170 | May 2023 | GSI | — | (2,210 | ) | (2,210 | ) | ||||||||||||||||
Receive | argenx SE,ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 143,615 | May 2023 | GSI | — | (7,901 | ) | (7,901 | ) | ||||||||||||||||
Receive | argenx SE,ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 94,518 | May 2023 | GSI | — | (5,200 | ) | (5,200 | ) | ||||||||||||||||
Receive | Ascendis Pharma A/S, ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 22,620 | May 2023 | GSI | — | 1,064 | 1,064 | ||||||||||||||||||
Receive | Ascendis Pharma A/S, ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 60,372 | May 2023 | GSI | — | 2,839 | 2,839 | ||||||||||||||||||
Receive | Assembly Biosciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 5,373 | May 2023 | GSI | — | (214 | ) | (214 | ) | ||||||||||||||||
Receive | Assurant, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 156,928 | May 2023 | GSI | — | 2,249 | 2,249 | ||||||||||||||||||
Receive | AstraZeneca PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 240,528 | May 2023 | GSI | — | (11,625 | ) | (11,625 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 50 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | AstraZeneca PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 281,987 | May 2023 | GSI | — | $(13,629 | ) | $(13,629 | ) | ||||||||||||||||
Receive | AstraZeneca PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 523,241 | May 2023 | GSI | — | (25,290 | ) | (25,290 | ) | ||||||||||||||||
Receive | AstraZeneca PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 44,040 | May 2023 | GSI | — | (2,126 | ) | (2,126 | ) | ||||||||||||||||
Receive | Athene Holding, Ltd., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 24,343 | May 2023 | GSI | — | (1,697 | ) | (1,697 | ) | ||||||||||||||||
Receive | Atlantic Union Bankshares Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 431,550 | May 2023 | GSI | — | 10,983 | 10,983 | ||||||||||||||||||
Receive | Atlantic Union Bankshares Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 342,010 | May 2023 | GSI | — | 8,704 | 8,704 | ||||||||||||||||||
Receive | Australia & New Zealand Banking Group, Ltd. | 1-Month AUD BBSW + 0.20% | Monthly | AUD | 429,677 | May 2023 | GSI | — | (7,996 | ) | (7,996 | ) | ||||||||||||||||
Receive | Australia & New Zealand Banking Group, Ltd. | 1-Month AUD BBSW + 0.20% | Monthly | AUD | 224,653 | May 2023 | GSI | — | (4,180 | ) | (4,180 | ) | ||||||||||||||||
Receive | Bandai Namco Holdings, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 192,570,000 | May 2023 | GSI | — | (19,712 | ) | (19,712 | ) | ||||||||||||||||
Receive | Bandai Namco Holdings, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 471,600 | May 2023 | GSI | — | (48 | ) | (48 | ) | ||||||||||||||||
Receive | BASE, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 42,480,000 | May 2023 | GSI | — | (83,684 | ) | (83,684 | ) | ||||||||||||||||
Receive | BASE, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 15,881,122 | May 2023 | GSI | — | (12,122 | ) | (12,122 | ) | ||||||||||||||||
Receive | BAWAG Group AG | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 734,764 | May 2023 | GSI | — | (55,554 | ) | (55,554 | ) | ||||||||||||||||
Receive | BAWAG Group AG | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 115,146 | May 2023 | GSI | — | (8,706 | ) | (8,706 | ) | ||||||||||||||||
Receive | BAWAG Group AG | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 60,343 | May 2023 | GSI | — | (4,562 | ) | (4,562 | ) | ||||||||||||||||
Receive | Baxter International, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 87,388 | May 2023 | GSI | — | (3,853 | ) | (3,853 | ) |
51 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Baxter International, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 164,958 | May 2023 | GSI | — | $(7,274 | ) | $(7,274 | ) | ||||||||||||||||
Receive | Becton, Dickinson and Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 12,286 | May 2023 | GSI | — | (268 | ) | (268 | ) | ||||||||||||||||
Receive | Becton, Dickinson and Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 70,878 | May 2023 | GSI | — | (1,546 | ) | (1,546 | ) | ||||||||||||||||
Receive | Beigene, Ltd., ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 56,681 | May 2023 | GSI | — | (644 | ) | (644 | ) | ||||||||||||||||
Receive | Beigene, Ltd., ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 202,133 | May 2023 | GSI | — | (2,297 | ) | (2,297 | ) | ||||||||||||||||
Receive | BioNTech SE, ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 134,354 | May 2023 | GSI | — | (12,814 | ) | (12,814 | ) | ||||||||||||||||
Receive | Bio-Techne Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 40,202 | May 2023 | GSI | — | (1,840 | ) | (1,840 | ) | ||||||||||||||||
Receive | Bio-Techne Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 75,644 | May 2023 | GSI | — | (3,462 | ) | (3,462 | ) | ||||||||||||||||
Receive | Bluebird Bio, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 14,520 | May 2023 | GSI | — | (870 | ) | (870 | ) | ||||||||||||||||
Receive | Blueprint Medicines Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 90,583 | May 2023 | GSI | — | (177 | ) | (177 | ) | ||||||||||||||||
Receive | BMC Stock Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 80,399 | May 2023 | GSI | — | (8,115 | ) | (8,115 | ) | ||||||||||||||||
Receive | BMC Stock Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,081,729 | May 2023 | GSI | — | (109,187 | ) | (109,187 | ) | ||||||||||||||||
Receive | BMC Stock Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 547,997 | May 2023 | GSI | — | (55,313 | ) | (55,313 | ) | ||||||||||||||||
Receive | Boston Scientific Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 3,287,716 | May 2023 | GSI | — | (286,703 | ) | (286,703 | ) | ||||||||||||||||
Receive | Boston Scientific Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 278,922 | May 2023 | GSI | — | (24,323 | ) | (24,323 | ) | ||||||||||||||||
Receive | Brenntag AG | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 804,390 | May 2023 | GSI | — | 2,736 | 2,736 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 52 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||||
Receive | Bristol-Myers Squibb Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 4,642,235 | May 2023 | GSI | — | $(133,655 | ) | $(133,655 | ) | ||||||||||||||||
Receive | Cactus, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 86,768 | May 2023 | GSI | — | (7,301 | ) | (7,301 | ) | ||||||||||||||||
Receive | Cactus, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 349,522 | May 2023 | GSI | — | (29,412 | ) | (29,412 | ) | ||||||||||||||||
Receive | Cactus, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 347,703 | May 2023 | GSI | — | (29,259 | ) | (29,259 | ) | ||||||||||||||||
Receive | Cavco Industries, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 98,120 | May 2023 | GSI | — | (5,519 | ) | (5,519 | ) | ||||||||||||||||
Receive | Cavco Industries, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 297,827 | May 2023 | GSI | — | (16,751 | ) | (16,751 | ) | ||||||||||||||||
Receive | Cavco Industries, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 255,332 | May 2023 | GSI | — | (14,361 | ) | (14,361 | ) | ||||||||||||||||
Receive | Cavco Industries, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 286,154 | May 2023 | GSI | — | (16,094 | ) | (16,094 | ) | ||||||||||||||||
Receive | Cellnex Telecom SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 1,180,509 | May 2023 | GSI | — | 56,616 | 56,616 | ||||||||||||||||||
Receive | Cellnex Telecom SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 310,493 | May 2023 | GSI | — | 14,891 | 14,891 | ||||||||||||||||||
Receive | Centene Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 85,687 | May 2023 | GSI | — | (8,451 | ) | (8,451 | ) | ||||||||||||||||
Receive | Centene Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 118,008 | May 2023 | GSI | — | (11,639 | ) | (11,639 | ) | ||||||||||||||||
Receive | Cerved Group SpA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 358,856 | May 2023 | GSI | — | (21,273 | ) | (21,273 | ) | ||||||||||||||||
Receive | Cerved Group SpA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 722,590 | May 2023 | GSI | — | (42,836 | ) | (42,836 | ) | ||||||||||||||||
Receive | Cerved Group SpA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 79,659 | May 2023 | GSI | — | (4,722 | ) | (4,722 | ) | ||||||||||||||||
Receive | Cerved Group SpA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 98,770 | May 2023 | GSI | — | (5,855 | ) | (5,855 | ) |
53 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued) |
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Cerved Group SpA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 142,162 | May 2023 | GSI | — | $(8,428 | ) | $(8,428 | ) | ||||||||||||||||
Receive | Chegg, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 551,968 | May 2023 | GSI | — | (86,256 | ) | (86,256 | ) | ||||||||||||||||
Receive | China Cinda Asset Management Company, Ltd., H Shares | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 7,251,581 | May 2023 | GSI | — | (31,406 | ) | (31,406 | ) | ||||||||||||||||
Receive | China Traditional Chinese Medicine Holdings Company, Ltd. | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 66,843 | May 2023 | GSI | — | (671 | ) | (671 | ) | ||||||||||||||||
Receive | China Unicom Hong Kong, Ltd. | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 64,800 | May 2023 | GSI | — | (992 | ) | (992 | ) | ||||||||||||||||
Receive | Citizens Financial Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 228,859 | May 2023 | GSI | — | 144 | 144 | ||||||||||||||||||
Receive | Citizens Financial Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 496,110 | May 2023 | GSI | — | 312 | 312 | ||||||||||||||||||
Receive | Citizens Financial Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 537,347 | May 2023 | GSI | — | 338 | 338 | ||||||||||||||||||
Receive | Clean Harbors, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 599,140 | May 2023 | GSI | — | (52,017 | ) | (52,017 | ) | ||||||||||||||||
Receive | Clean Harbors, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 650,760 | May 2023 | GSI | — | (56,500 | ) | (56,500 | ) | ||||||||||||||||
Receive | Constellation Brands, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,876,514 | May 2023 | GSI | — | (157,313 | ) | (157,313 | ) | ||||||||||||||||
Receive | Constellation Brands, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 359,758 | May 2023 | GSI | — | (30,159 | ) | (30,159 | ) | ||||||||||||||||
Receive | Constellation Brands, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 48,328 | May 2023 | GSI | — | (4,051 | ) | (4,051 | ) | ||||||||||||||||
Receive | Constellation Brands, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 303,315 | May 2023 | GSI | — | (25,428 | ) | (25,428 | ) | ||||||||||||||||
Receive | Constellation Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 19,123 | May 2023 | GSI | — | (2,683 | ) | (2,683 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 54 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Refere nce entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation | Value | ||||||||||||||||
Receive | ConvaTec Group PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 64,505 | May 2023 | GSI | — | $(1,638 | ) | $(1,638 | ) | ||||||||||||||
Receive | CoStar Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,531,710 | May 2023 | GSI | — | (22,181 | ) | (22,181 | ) | ||||||||||||||
Receive | CoStar Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 498,035 | May 2023 | GSI | — | (7,211 | ) | (7,211 | ) | ||||||||||||||
Receive | CStone Pharmaceuticals | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 343,662 | May 2023 | GSI | — | (2,987 | ) | (2,987 | ) | ||||||||||||||
Receive | CStone Pharmaceuticals | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 141,154 | May 2023 | GSI | — | (1,227 | ) | (1,227 | ) | ||||||||||||||
Receive | CStone Pharmaceuticals | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 3,365,138 | May 2023 | GSI | — | (29,253 | ) | (29,253 | ) | ||||||||||||||
Receive | CStone Pharmaceuticals | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 37,625 | May 2023 | GSI | — | (327 | ) | (327 | ) | ||||||||||||||
Receive | CStone Pharmaceuticals | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 47,604 | May 2023 | GSI | — | (414 | ) | (414 | ) | ||||||||||||||
Receive | CStone Pharmaceuticals | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 4,073,739 | May 2023 | GSI | — | (35,415 | ) | (35,415 | ) | ||||||||||||||
Receive | CStone Pharmaceuticals | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 245,061 | May 2023 | GSI | — | (2,130 | ) | (2,130 | ) | ||||||||||||||
Receive | CTT-Correios de Portugal SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 52,450 | May 2023 | GSI | — | (7,636 | ) | (7,636 | ) | ||||||||||||||
Receive | Cytokinetics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 405,264 | May 2023 | GSI | — | (22,222 | ) | (22,222 | ) | ||||||||||||||
Receive | Cytokinetics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 338,761 | May 2023 | GSI | — | (18,575 | ) | (18,575 | ) | ||||||||||||||
Receive | Cytokinetics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 21,105 | May 2023 | GSI | — | (1,157 | ) | (1,157 | ) | ||||||||||||||
Receive | Cytokinetics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 49,772 | May 2023 | GSI | — | (2,729 | ) | (2,729 | ) | ||||||||||||||
Receive | Daiichi Sankyo Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 3,079,890 | May 2023 | GSI | — | 31 | 31 |
55 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | Daiichi Sankyo Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 219,503,925 | May 2023 | GSI | — | $2,228 | $2,228 | ||||||||||||||||
Receive | Danaher Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,311,325 | May 2023 | GSI | — | 15,410 | 15,410 | ||||||||||||||||
Receive | Danaher Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 128,953 | May 2023 | GSI | — | 1,516 | 1,516 | ||||||||||||||||
Receive | Danaher Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 243,149 | May 2023 | GSI | — | 2,857 | 2,857 | ||||||||||||||||
Receive | DBAPP Security, Ltd. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 15,204 | May 2023 | GSI | — | (581 | ) | (581 | ) | ||||||||||||||
Receive | DBAPP Security, Ltd. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 14,444 | May 2023 | GSI | — | (552 | ) | (552 | ) | ||||||||||||||
Receive | DBAPP Security, Ltd. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 3,812 | May 2023 | GSI | — | 28 | 28 | ||||||||||||||||
Receive | DNB ASA | 1-Month NOK NIBOR + 0.20% | Monthly | NOK | 3,465,132 | May 2023 | GSI | — | (25,728 | ) | (25,728 | ) | ||||||||||||||
Receive | DNB ASA | 1-Month NOK NIBOR + 0.20% | Monthly | NOK | 1,307,717 | May 2023 | GSI | — | (9,709 | ) | (9,709 | ) | ||||||||||||||
Receive | DraftKings, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 306,284 | May 2023 | GSI | — | (54,184 | ) | (54,184 | ) | ||||||||||||||
Receive | DraftKings, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,163,969 | May 2023 | GSI | — | (193,394 | ) | (193,394 | ) | ||||||||||||||
Receive | Dyne Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 52,750 | May 2023 | GSI | — | 12,139 | 12,139 | ||||||||||||||||
Receive | ECN Capital Corp. | 1-Month CAD CDOR + 0.20% | Monthly | CAD | 622,890 | May 2023 | GSI | — | (4,474 | ) | (4,474 | ) | ||||||||||||||
Receive | ECN Capital Corp. | 1-Month CAD CDOR + 0.20% | Monthly | CAD | 253,649 | May 2023 | GSI | — | (1,821 | ) | (1,821 | ) | ||||||||||||||
Receive | ECN Capital Corp. | 1-Month CAD CDOR + 0.20% | Monthly | CAD | 79,950 | May 2023 | GSI | — | (574 | ) | (574 | ) | ||||||||||||||
Receive | ECN Capital Corp. | 1-Month CAD CDOR + 0.20% | Monthly | CAD | 133,250 | May 2023 | GSI | — | (956 | ) | (956 | ) | ||||||||||||||
Receive | Edwards Lifesciences Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 88,398 | May 2023 | GSI | — | (13,347 | ) | (13,347 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 56 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | Edwards Lifesciences Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 84,430 | May 2023 | GSI | — | $(12,748 | ) | $(12,748 | ) | ||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 19,003,600 | May 2023 | GSI | — | (11,536 | ) | (11,536 | ) | ||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 8,888,502 | May 2023 | GSI | — | (5,399 | ) | (5,399 | ) | ||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 21,595,000 | May 2023 | GSI | — | (13,118 | ) | (13,118 | ) | ||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 8,638,000 | May 2023 | GSI | — | (5,247 | ) | (5,247 | ) | ||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 9,501,800 | May 2023 | GSI | — | (5,772 | ) | (5,772 | ) | ||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 32,608,450 | May 2023 | GSI | — | (19,809 | ) | (19,809 | ) | ||||||||||||||
Receive | Encompass Health Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 302,421 | May 2023 | GSI | — | (23,709 | ) | (23,709 | ) | ||||||||||||||
Receive | Encompass Health Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 533,011 | May 2023 | GSI | — | (41,787 | ) | (41,787 | ) | ||||||||||||||
Receive | Encompass Health Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 57,664 | May 2023 | GSI | — | (4,514 | ) | (4,514 | ) | ||||||||||||||
Receive | Encompass Health Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 108,810 | May 2023 | GSI | — | (8,518 | ) | (8,518 | ) | ||||||||||||||
Receive | Enstar Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,684,224 | May 2023 | GSI | — | (21,545 | ) | (21,545 | ) | ||||||||||||||
Receive | Enstar Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 26,634 | May 2023 | GSI | — | (341 | ) | (341 | ) | ||||||||||||||
Receive | Enstar Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,561,846 | May 2023 | GSI | — | (19,980 | ) | (19,980 | ) | ||||||||||||||
Receive | Enstar Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 615,547 | May 2023 | GSI | — | (7,874 | ) | (7,874 | ) | ||||||||||||||
Receive | Enstar Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 639,570 | May 2023 | GSI | — | (8,181 | ) | (8,181 | ) |
57 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | Enstar Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 523,284 | May 2023 | GSI | — | $(6,694 | ) | $(6,694 | ) | ||||||||||||||
Receive | Exact Sciences Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,590,045 | May 2023 | GSI | — | 387,010 | 387,010 | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 959,574 | May 2023 | GSI | — | (109,963 | ) | (109,963 | ) | ||||||||||||||
Receive | First BanCorp | 1-Month USD LIBOR + 0.20% | Monthly | USD | 390,443 | May 2023 | GSI | — | 11,738 | 11,738 | ||||||||||||||||
Receive | First BanCorp | 1-Month USD LIBOR + 0.20% | Monthly | USD | 210,688 | May 2023 | GSI | — | (912 | ) | (912 | ) | ||||||||||||||
Receive | FirstRand, Ltd. | 1-Month ZAR JIBAR + 0.75% | Monthly | ZAR | 10,440,725 | May 2023 | GSI | — | (26,790 | ) | (26,790 | ) | ||||||||||||||
Receive | Five Below, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,268,600 | May 2023 | GSI | — | (14,793 | ) | (14,793 | ) | ||||||||||||||
Receive | Five Below, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 476,872 | May 2023 | GSI | — | (5,561 | ) | (5,561 | ) | ||||||||||||||
Receive | Flagstar Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 399,110 | May 2023 | GSI | — | (42,018 | ) | (42,018 | ) | ||||||||||||||
Receive | Floor & Decor Holdings, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 104,471 | May 2023 | GSI | — | (11,261 | ) | (11,261 | ) | ||||||||||||||
Receive | Fortive Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 511,570 | May 2023 | GSI | — | (33,357 | ) | (33,357 | ) | ||||||||||||||
Receive | Fortive Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 366,941 | May 2023 | GSI | — | (23,926 | ) | (23,926 | ) | ||||||||||||||
Receive | Freee KK | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 52,046,000 | May 2023 | GSI | — | (80,000 | ) | (80,000 | ) | ||||||||||||||
Receive | Freee KK | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 52,046,000 | May 2023 | GSI | — | (80,000 | ) | (80,000 | ) | ||||||||||||||
Receive | Fresenius SE & Company KGaA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 574,844 | May 2023 | GSI | — | (52,941 | ) | (52,941 | ) | ||||||||||||||
Receive | Fresenius SE & Company KGaA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 41,857 | May 2023 | GSI | — | (3,855 | ) | (3,855 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 58 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | G1 Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 19,565 | May 2023 | GSI | — | $(2,434) | $(2,434) | ||||||||||||||||
Receive | G1 Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 69,916 | May 2023 | GSI | — | (8,697 | ) | (8,697 | ) | ||||||||||||||
Receive | Genmab A/S | 1-Month DKK CIBOR + 0.20% | Monthly | DKK | 334,480 | May 2023 | GSI | — | (3,033 | ) | (3,033 | ) | ||||||||||||||
Receive | Genpact, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 3,609,392 | May 2023 | GSI | — | (288,329 | ) | (288,329 | ) | ||||||||||||||
Receive | Genus PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 42,283 | May 2023 | GSI | — | (951 | ) | (951 | ) | ||||||||||||||
Receive | Genus PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 49,545 | May 2023 | GSI | — | (1,115 | ) | (1,115 | ) | ||||||||||||||
Receive | Genus PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 72,628 | May 2023 | GSI | — | (1,634 | ) | (1,634 | ) | ||||||||||||||
Receive | Gilead Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 62,669 | May 2023 | GSI | — | �� | (2,490 | ) | (2,490 | ) | |||||||||||||
Receive | Global Blood Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 956,477 | May 2023 | GSI | — | (94,044 | ) | (94,044 | ) | ||||||||||||||
Receive | Global Blood Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 20,700 | May 2023 | GSI | — | (2,035 | ) | (2,035 | ) | ||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 3,898,917 | May 2023 | GSI | — | (370,809 | ) | (370,809 | ) | ||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 5,181,765 | May 2023 | GSI | — | (492,815 | ) | (492,815 | ) | ||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 386,423 | May 2023 | GSI | — | (36,750 | ) | (36,750 | ) | ||||||||||||||
Receive | GlycoMimetics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 6,052 | May 2023 | GSI | — | (979 | ) | (979 | ) | ||||||||||||||
Receive | GMO Financial Gate, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 42,400,000 | May 2023 | GSI | — | (57,322 | ) | (57,322 | ) | ||||||||||||||
Receive | GMO Payment Gateway, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 40,080,000 | May 2023 | GSI | — | (16,918 | ) | (16,918 | ) |
59 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued) |
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | GMO Payment Gateway, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 16,083,317 | May 2023 | GSI | — | $4,945 | $4,945 | ||||||||||||||||
Receive | Guangzhou Automobile Group Company, Ltd., H Shares | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 35,398 | May 2023 | GSI | — | 426 | 426 | ||||||||||||||||
Receive | Guidewire Software, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,864,865 | May 2023 | GSI | — | (136,507 | ) | (136,507 | ) | ||||||||||||||
Receive | Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,946,945 | May 2023 | GSI | — | (127,580 | ) | (127,580 | ) | ||||||||||||||
Receive | Heritage Commerce Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 117,210 | May 2023 | GSI | — | 1,628 | 1,628 | ||||||||||||||||
Receive | Hikma Pharmaceuticals PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 29,572 | May 2023 | GSI | — | (1,766 | ) | (1,766 | ) | ||||||||||||||
Receive | Hikma Pharmaceuticals PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 34,650 | May 2023 | GSI | — | (2,070 | ) | (2,070 | ) | ||||||||||||||
Receive | Hikma Pharmaceuticals PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 50,805 | May 2023 | GSI | — | (3,035 | ) | (3,035 | ) | ||||||||||||||
Receive | Hologic, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 695,065 | May 2023 | GSI | — | 25,484 | 25,484 | ||||||||||||||||
Receive | Hologic, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 74,478 | May 2023 | GSI | — | 2,731 | 2,731 | ||||||||||||||||
Receive | Hologic, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 144,244 | May 2023 | GSI | — | 5,288 | 5,288 | ||||||||||||||||
Receive | Humana, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 101,247 | May 2023 | GSI | — | (8,624 | ) | (8,624 | ) | ||||||||||||||
Receive | Humana, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 191,584 | May 2023 | GSI | — | (16,319 | ) | (16,319 | ) | ||||||||||||||
Receive | ICON PLC | 1-Month USD LIBOR + 0.20% | Monthly | USD | 76,452 | May 2023 | GSI | — | (8,667 | ) | (8,667 | ) | ||||||||||||||
Receive | ICON PLC | 1-Month USD LIBOR + 0.20% | Monthly | USD | 144,161 | May 2023 | GSI | — | (16,342 | ) | (16,342 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 60 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | IDEXX Laboratories, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 43,689 | May 2023 | GSI | — | $488 | $488 | ||||||||||||||||
Receive | IDEXX Laboratories, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 82,758 | May 2023 | GSI | — | 924 | 924 | ||||||||||||||||
Receive | IHS Markit, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,176,275 | May 2023 | GSI | — | (5,602) | (5,602) | ||||||||||||||||
Receive | IHS Markit, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 438,610 | May 2023 | GSI | — | (2,089) | (2,089) | ||||||||||||||||
Receive | ImmunoGen, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 31,820 | May 2023 | GSI | — | 2,361 | 2,361 | ||||||||||||||||
Receive | ImmunoGen, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 75,054 | May 2023 | GSI | — | 5,568 | 5,568 | ||||||||||||||||
Receive | Incyte Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 26,168 | May 2023 | GSI | — | (785) | (785) | ||||||||||||||||
Receive | Incyte Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 61,803 | May 2023 | GSI | — | (1,853) | (1,853) | ||||||||||||||||
Receive | Ingersoll Rand, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 621,647 | May 2023 | GSI | — | (38,454) | (38,454) | ||||||||||||||||
Receive | Ingersoll Rand, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 495,776 | May 2023 | GSI | — | (30,667) | (30,667) | ||||||||||||||||
Receive | Insulet Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,113,364 | May 2023 | GSI | — | (106,899) | (106,899) | ||||||||||||||||
Receive | Intact Financial Corp. | 1-Month CAD CDOR + 0.20% | Monthly | CAD | 1,040,452 | May 2023 | GSI | — | (24,657) | (24,657) | ||||||||||||||||
Receive | Intact Financial Corp. | 1-Month CAD CDOR + 0.20% | Monthly | CAD | 860,579 | May 2023 | GSI | — | (20,395) | (20,395) | ||||||||||||||||
Receive | Intermediate Capital Group PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 48,726 | May 2023 | GSI | — | (7,257) | (7,257) | ||||||||||||||||
Receive | Intermediate Capital Group PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 946,263 | May 2023 | GSI | — | (140,923) | (140,923) | ||||||||||||||||
Receive | Intuit, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 235,161 | May 2023 | GSI | — | (13,963) | (13,963) | ||||||||||||||||
Receive | Intuitive Surgical, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 84,295 | May 2023 | GSI | — | (7,589) | (7,589) |
61 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | Intuitive Surgical, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 158,328 | May 2023 | GSI | — | $(14,254) | $(14,254) | ||||||||||||||||
Receive | ITT, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 43,813 | May 2023 | GSI | — | (3,336) | (3,336) | ||||||||||||||||
Receive | ITT, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 281,934 | May 2023 | GSI | — | (21,466) | (21,466) | ||||||||||||||||
Receive | ITT, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 254,101 | May 2023 | GSI | — | (19,347) | (19,347) | ||||||||||||||||
Receive | ITT, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 783,260 | May 2023 | GSI | — | (59,636) | (59,636) | ||||||||||||||||
Receive | ITT, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 110,416 | May 2023 | GSI | — | (8,407) | (8,407) | ||||||||||||||||
Receive | ITT, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 627,984 | May 2023 | GSI | — | (47,814) | (47,814) | ||||||||||||||||
Receive | JPMorgan Chase & Co. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 632,532 | May 2023 | GSI | — | (9,073) | (9,073) | ||||||||||||||||
Receive | JPMorgan Chase & Co. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 264,375 | May 2023 | GSI | — | (3,792) | (3,792) | ||||||||||||||||
Receive | JPMorgan Chase & Co. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 481,776 | May 2023 | GSI | — | (6,911) | (6,911) | ||||||||||||||||
Receive | JPMorgan Chase & Co. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 434,201 | May 2023 | GSI | — | (6,228) | (6,228) | ||||||||||||||||
Receive | JPMorgan Chase & Co. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,117,396 | May 2023 | GSI | — | (119,054) | (119,054) | ||||||||||||||||
Receive | KBC Group NV | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 150,859 | May 2023 | GSI | — | (8,868) | (8,868) | ||||||||||||||||
Receive | KBC Group NV | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 180,594 | May 2023 | GSI | — | (10,616) | (10,616) | ||||||||||||||||
Receive | Kodiak Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 42,120 | May 2023 | GSI | — | 6,913 | 6,913 | ||||||||||||||||
Receive | Kodiak Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 99,372 | May 2023 | GSI | — | 16,311 | 16,311 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 62 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 108,327 | May 2023 | GSI | — | $(9,737) | $(9,737) | ||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 2,161 | May 2023 | GSI | — | (194) | (194) | ||||||||||||||||
Receive | Lennar Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 488,496 | May 2023 | GSI | — | (75,178) | (75,178) | ||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 26,049 | May 2023 | GSI | — | (132) | (132) | ||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 94,899 | May 2023 | GSI | — | (480) | (480) | ||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 133,978 | May 2023 | GSI | — | (677) | (677) | ||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 102,344 | May 2023 | GSI | — | (517) | (517) | ||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 113,509 | May 2023 | GSI | — | (574) | (574) | ||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.20% | Monthly | HKD | 53,962 | May 2023 | GSI | — | (273) | (273) | ||||||||||||||||
Receive | Madrigal Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 371,128 | May 2023 | GSI | — | 2,697 | 2,697 | ||||||||||||||||
Receive | Madrigal Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 48,254 | May 2023 | GSI | — | 351 | 351 | ||||||||||||||||
Receive | Madrigal Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 172,300 | May 2023 | GSI | — | 1,252 | 1,252 | ||||||||||||||||
Receive | Masimo Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 29,069 | May 2023 | GSI | — | (1,542) | (1,542) | ||||||||||||||||
Receive | Masimo Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 54,829 | May 2023 | GSI | — | (2,908) | (2,908) | ||||||||||||||||
Receive | McDonald’s Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,215,493 | May 2023 | GSI | — | (77,338) | (77,338) | ||||||||||||||||
Receive | Medical Properties Trust, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 421,169 | May 2023 | GSI | — | (1,922) | (1,922) |
63 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | Mersana Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 51,956 | May 2023 | GSI | — | $2,189 | $2,189 | ||||||||||||||||
Receive | Mirati Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 86,202 | May 2023 | GSI | — | 12,805 | 12,805 | ||||||||||||||||
Receive | Molina Healthcare, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 50,824 | May 2023 | GSI | — | (4,957) | (4,957) | ||||||||||||||||
Receive | Molina Healthcare, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 165,280 | May 2023 | GSI | — | (16,120) | (16,120) | ||||||||||||||||
Receive | Multiplan Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 173,388 | May 2023 | GSI | — | (22,543) | (22,543) | ||||||||||||||||
Receive | Multiplan Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 414,449 | May 2023 | GSI | — | (53,884) | (53,884) | ||||||||||||||||
Receive | Mylan NV | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,099,166 | May 2023 | GSI | — | (55,388) | (55,388) | ||||||||||||||||
Receive | Nexi SpA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 815,526 | May 2023 | GSI | — | (125,599) | (125,599) | ||||||||||||||||
Receive | Nexi SpA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 140,342 | May 2023 | GSI | — | (21,614) | (21,614) | ||||||||||||||||
Receive | Nexi SpA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 729,874 | May 2023 | GSI | — | (112,408) | (112,408) | ||||||||||||||||
Receive | NextCure, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 4,673 | May 2023 | GSI | — | (752) | (752) | ||||||||||||||||
Receive | Novartis AG | 1-Month CHF LIBOR + 0.20% | Monthly | CHF | 10,110 | May 2023 | GSI | — | (890) | (890) | ||||||||||||||||
Receive | Novartis AG | 1-Month CHF LIBOR + 0.20% | Monthly | CHF | 52,650 | May 2023 | GSI | — | (4,637) | (4,637) | ||||||||||||||||
Receive | Novartis AG | 1-Month CHF LIBOR + 0.20% | Monthly | CHF | 77,226 | May 2023 | GSI | — | (6,801) | (6,801) | ||||||||||||||||
Receive | Novartis AG | 1-Month CHF LIBOR + 0.20% | Monthly | CHF | 807,719 | May 2023 | GSI | — | (71,132) | (71,132) | ||||||||||||||||
Receive | Nurix Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 105,589 | May 2023 | GSI | — | (5,172) | (5,172) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 64 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | NuVasive, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 32,821 | May 2023 | GSI | — | $(5,011) | $(5,011) | ||||||||||||||||
Receive | NuVasive, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 61,920 | May 2023 | GSI | — | (9,454 | ) | (9,454 | ) | ||||||||||||||
Receive | Odonate Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 24,994 | May 2023 | GSI | — | (2,027 | ) | (2,027 | ) | ||||||||||||||
Receive | Ollie’s Bargain Outlet Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,080,939 | May 2023 | GSI | — | (68,797 | ) | (68,797 | ) | ||||||||||||||
Receive | Ono Pharmaceutical Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 13,612,000 | May 2023 | GSI | — | (13,628 | ) | (13,628 | ) | ||||||||||||||
Receive | Ono Pharmaceutical Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 6,158,600 | May 2023 | GSI | — | (6,168 | ) | (6,168 | ) | ||||||||||||||
Receive | Ono Pharmaceutical Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 16,268,000 | May 2023 | GSI | — | (16,294 | ) | (16,294 | ) | ||||||||||||||
Receive | Ono Pharmaceutical Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 23,904,000 | May 2023 | GSI | — | (23,942 | ) | (23,942 | ) | ||||||||||||||
Receive | Paycom Software, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 532,012 | May 2023 | GSI | — | (28,526 | ) | (28,526 | ) | ||||||||||||||
Receive | Penumbra, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 35,926 | May 2023 | GSI | — | 8,185 | 8,185 | ||||||||||||||||
Receive | Penumbra, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 67,813 | May 2023 | GSI | — | 15,449 | 15,449 | ||||||||||||||||
Receive | Polaris, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 881,083 | May 2023 | GSI | — | (42,894 | ) | (42,894 | ) | ||||||||||||||
Receive | Polaris, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 425,548 | May 2023 | GSI | — | (20,717 | ) | (20,717 | ) | ||||||||||||||
Receive | Polaris, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 358,221 | May 2023 | GSI | — | (17,439 | ) | (17,439 | ) | ||||||||||||||
Receive | Polaris, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 280,388 | May 2023 | GSI | — | (13,649 | ) | (13,649 | ) | ||||||||||||||
Receive | Popular, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 96,771 | May 2023 | GSI | — | 7,158 | 7,158 |
65 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | Popular, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 146,827 | May 2023 | GSI | — | $10,861 | $10,861 | ||||||||||||||||
Receive | Popular, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 90,603 | May 2023 | GSI | — | 6,702 | 6,702 | ||||||||||||||||
Receive | Popular, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 53,631 | May 2023 | GSI | — | 3,967 | 3,967 | ||||||||||||||||
Receive | Popular, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 404,255 | May 2023 | GSI | — | 29,902 | 29,902 | ||||||||||||||||
Receive | PPD, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 91,756 | May 2023 | GSI | — | (9,335) | (9,335) | ||||||||||||||||
Receive | PRA Health Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 73,779 | May 2023 | GSI | — | (7,916) | (7,916) | ||||||||||||||||
Receive | PRA Health Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 21,828 | May 2023 | GSI | — | (2,342) | (2,342) | ||||||||||||||||
Receive | Prudential PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 130,345 | May 2023 | GSI | — | (23,283) | (23,283) | ||||||||||||||||
Receive | R1 RCM, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 17,724 | May 2023 | GSI | — | 947 | 947 | ||||||||||||||||
Receive | R1 RCM, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 80,815 | May 2023 | GSI | — | 4,316 | 4,316 | ||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 159,534 | May 2023 | GSI | — | 1,285 | 1,285 | ||||||||||||||||
Receive | Regeneron Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 126,859 | May 2023 | GSI | — | (7,287) | (7,287) | ||||||||||||||||
Receive | RenaissanceRe Holdings, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 639,433 | May 2023 | GSI | — | (40,159) | (40,159) | ||||||||||||||||
Receive | Rexnord Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 993,707 | May 2023 | GSI | — | 12,450 | 12,450 | ||||||||||||||||
Receive | Rexnord Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 407,722 | May 2023 | GSI | — | 5,108 | 5,108 | ||||||||||||||||
Receive | Rexnord Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 204,780 | May 2023 | GSI | — | 2,566 | 2,566 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 66 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Rexnord Corp. | 1-Month USD LIBOR + | Monthly | USD | 327,730 | May 2023 | GSI | — | $ | 4,106 | $ | 4,106 | ||||||||||||||||
Receive | Rexnord Corp. | 1-Month USD LIBOR + | Monthly | USD | 474,661 | May 2023 | GSI | — | 5,947 | 5,947 | ||||||||||||||||||
Receive | Rhythm Pharmaceuticals, Inc. | 1-Month USD LIBOR + | Monthly | USD | 19,548 | May 2023 | GSI | — | (984 | ) | (984 | ) | ||||||||||||||||
Receive | Roche Holding AG | 1-Month CHF LIBOR + | Monthly | CHF | 92,115 | May 2023 | GSI | — | (4,024 | ) | (4,024 | ) | ||||||||||||||||
Receive | Sarepta Therapeutics, Inc. | 1-Month USD LIBOR + | Monthly | USD | 60,638 | May 2023 | GSI | — | (707 | ) | (707 | ) | ||||||||||||||||
Receive | Schneider Electric SE | 1-Month EUR EURIBOR + | Monthly | EUR | 545,899 | May 2023 | GSI | — | (21,232 | ) | (21,232 | ) | ||||||||||||||||
Receive | Schneider Electric SE | 1-Month EUR EURIBOR + | Monthly | EUR | 443,166 | May 2023 | GSI | — | (17,236 | ) | (17,236 | ) | ||||||||||||||||
Receive | Seagen, Inc. | 1-Month USD LIBOR + | Monthly | USD | 80,594 | May 2023 | GSI | — | (12,714 | ) | (12,714 | ) | ||||||||||||||||
Receive | Seagen, Inc. | 1-Month USD LIBOR + | Monthly | USD | 118,812 | May 2023 | GSI | — | (18,743 | ) | (18,743 | ) | ||||||||||||||||
Receive | Shenzhen Airport Company, Ltd., Class A | 1-Month USD LIBOR + | Monthly | USD | 13,617 | May 2023 | GSI | — | (1,234 | ) | (1,234 | ) | ||||||||||||||||
Receive | South State Corp. | 1-Month USD LIBOR + | Monthly | USD | 302,807 | May 2023 | GSI | — | 23,260 | 23,260 | ||||||||||||||||||
Receive | South State Corp. | 1-Month USD LIBOR + | Monthly | USD | 302,122 | May 2023 | GSI | — | 23,207 | 23,207 | ||||||||||||||||||
Receive | Standard Chartered PLC | 1-Month GBP LIBOR + | Monthly | GBP | 546,424 | May 2023 | GSI | — | (53,613 | ) | (53,613 | ) | ||||||||||||||||
Receive | Standard Chartered PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 101,380 | May 2023 | GSI | — | (9,947 | ) | (9,947 | ) | ||||||||||||||||
Receive | Standard Chartered PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 60,234 | May 2023 | GSI | — | (5,910 | ) | (5,910 | ) | ||||||||||||||||
Receive | STERIS PLC | 1-Month USD LIBOR + 0.20% | Monthly | USD | 42,672 | May 2023 | GSI | — | (2,099 | ) | (2,099 | ) |
67 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid | Unrealized appreciation | Value | ||||||||||||||||||
Receive | STERIS PLC | 1-Month USD LIBOR + | Monthly | USD | 80,685 | May 2023 | GSI | — | $(3,970 | ) | $(3,970 | ) | ||||||||||||||||
Receive | Syndax Pharmaceuticals, Inc. | 1-Month USD LIBOR + | Monthly | USD | 25,980 | May 2023 | GSI | — | 1,682 | 1,682 | ||||||||||||||||||
Receive | Syndax Pharmaceuticals, Inc. | 1-Month USD LIBOR + | Monthly | USD | 61,296 | May 2023 | GSI | — | 3,968 | 3,968 | ||||||||||||||||||
Receive | Synovus Financial Corp. | 1-Month USD LIBOR + | Monthly | USD | 170,745 | May 2023 | GSI | — | 8,535 | 8,535 | ||||||||||||||||||
Receive | Synovus Financial Corp. | 1-Month USD LIBOR + | Monthly | USD | 304,672 | May 2023 | GSI | — | 15,229 | 15,229 | ||||||||||||||||||
Receive | Tandem Diabetes Care, Inc. | 1-Month USD LIBOR + | Monthly | USD | 67,943 | May 2023 | GSI | — | (4,511 | ) | (4,511 | ) | ||||||||||||||||
Receive | Tandem Diabetes Care, Inc. | 1-Month USD LIBOR + | Monthly | USD | 128,064 | May 2023 | GSI | — | (8,503 | ) | (8,503 | ) | ||||||||||||||||
Receive | Tecan Group AG | 1-Month CHF LIBOR + | Monthly | CHF | 93,808 | May 2023 | GSI | — | (5,053 | ) | (5,053 | ) | ||||||||||||||||
Receive | Teleflex, Inc. | 1-Month USD LIBOR + | Monthly | USD | 39,798 | May 2023 | GSI | — | (4,797 | ) | (4,797 | ) | ||||||||||||||||
Receive | Teleflex, Inc. | 1-Month USD LIBOR + | Monthly | USD | 174,388 | May 2023 | GSI | — | (21,018 | ) | (21,018 | ) | ||||||||||||||||
Receive | Tetra Tech, Inc. | 1-Month USD LIBOR + | Monthly | USD | 448,591 | May 2023 | GSI | — | (20,372 | ) | (20,372 | ) | ||||||||||||||||
Receive | Tetra Tech, Inc. | 1-Month USD LIBOR + | Monthly | USD | 598,262 | May 2023 | GSI | — | (27,169 | ) | (27,169 | ) | ||||||||||||||||
Receive | Tetra Tech, Inc. | 1-Month USD LIBOR + | Monthly | USD | 1,449,781 | May 2023 | GSI | — | (65,840 | ) | (65,840 | ) | ||||||||||||||||
Receive | The Boston Beer Company, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,304,278 | May 2023 | GSI | — | 178,506 | 178,506 | ||||||||||||||||||
Receive | The Boston Beer Company, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 509,098 | May 2023 | GSI | — | 69,676 | 69,676 | ||||||||||||||||||
Receive | The Charles Schwab Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 321,727 | May 2023 | GSI | — | 16,249 | 16,249 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 68 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid | Unrealized appreciation | Value | ||||||||||||||||||
Receive | Third Point Reinsurance, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 171,083 | May 2023 | GSI | — | $(3,464 | ) | $(3,464 | ) | ||||||||||||||||
Receive | Third Point Reinsurance, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 83,370 | May 2023 | GSI | — | (1,688 | ) | (1,688 | ) | ||||||||||||||||
Receive | Third Point Reinsurance, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 41,677 | May 2023 | GSI | — | (844 | ) | (844 | ) | ||||||||||||||||
Receive | Third Point Reinsurance, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 46,020 | May 2023 | GSI | — | (932 | ) | (932 | ) | ||||||||||||||||
Receive | Thor Industries, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 425,545 | May 2023 | GSI | — | (49,589 | ) | (49,589 | ) | ||||||||||||||||
Receive | Thor Industries, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 430,258 | May 2023 | GSI | — | (50,139 | ) | (50,139 | ) | ||||||||||||||||
Receive | Trane Technologies PLC | 1-Month USD LIBOR + 0.20% | Monthly | USD | 313,715 | May 2023 | GSI | — | 9,767 | 9,767 | ||||||||||||||||||
Receive | TriNet Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 3,233,371 | May 2023 | GSI | — | (69,637 | ) | (69,637 | ) | ||||||||||||||||
Receive | TriNet Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 16,621 | May 2023 | GSI | — | (358 | ) | (358 | ) | ||||||||||||||||
Receive | Triumph Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 115,702 | May 2023 | GSI | — | (5,079 | ) | (5,079 | ) | ||||||||||||||||
Receive | Triumph Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 115,969 | May 2023 | GSI | — | (4,966 | ) | (4,966 | ) | ||||||||||||||||
Receive | Triumph Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 176,820 | May 2023 | GSI | — | (9,701 | ) | (9,701 | ) | ||||||||||||||||
Receive | Turning Point Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 116,520 | May 2023 | GSI | — | (17,335 | ) | (17,335 | ) | ||||||||||||||||
Receive | UCB SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 53,384 | May 2023 | GSI | — | (5,058 | ) | (5,058 | ) | ||||||||||||||||
Receive | UCB SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 62,512 | May 2023 | GSI | — | (5,922 | ) | (5,922 | ) | ||||||||||||||||
Receive | UCB SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 91,739 | May 2023 | GSI | — | (8,691 | ) | (8,691 | ) |
69 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid | Unrealized appreciation | Value | ||||||||||||||||||
Receive | UCB SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 180,620 | May 2023 | GSI | — | $(17,112 | ) | $(17,112 | ) | ||||||||||||||||
Receive | UCB SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 663,010 | May 2023 | GSI | — | (62,812 | ) | (62,812 | ) | ||||||||||||||||
Receive | UnitedHealth Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 178,199 | May 2023 | GSI | — | (10,084 | ) | (10,084 | ) | ||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 24,107 | May 2023 | GSI | — | 975 | 975 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 69,811 | May 2023 | GSI | — | 2,828 | 2,828 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 80,458 | May 2023 | GSI | — | 3,259 | 3,259 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 53,516 | May 2023 | GSI | — | 2,163 | 2,163 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 71,888 | May 2023 | GSI | — | 2,908 | 2,908 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 10,257 | May 2023 | GSI | — | 415 | 415 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 16,684 | May 2023 | GSI | — | 675 | 675 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 14,953 | May 2023 | GSI | — | 605 | 605 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 17,831 | May 2023 | GSI | — | 721 | 721 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 16,252 | May 2023 | GSI | — | 657 | 657 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 18,935 | May 2023 | GSI | — | 766 | 766 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 45,444 | May 2023 | GSI | — | 1,844 | 1,844 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 235,616 | May 2023 | GSI | — | 9,559 | 9,559 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 70 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid | Unrealized appreciation | Value | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 32,460 | May 2023 | GSI | — | $1,317 | $1,317 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 17,312 | May 2023 | GSI | — | 702 | 702 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 58,428 | May 2023 | GSI | — | 2,370 | 2,370 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 22,354 | May 2023 | GSI | — | 907 | 907 | ||||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 52,737 | May 2023 | GSI | — | 2,140 | 2,140 | ||||||||||||||||||
Receive | Veracyte, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 48,697 | May 2023 | GSI | — | (7,595 | ) | (7,595 | ) | ||||||||||||||||
Receive | Veracyte, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 91,892 | May 2023 | GSI | — | (14,332 | ) | (14,332 | ) | ||||||||||||||||
Receive | Vertex Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 45,268 | May 2023 | GSI | — | (1,308 | ) | (1,308 | ) | ||||||||||||||||
Receive | Vertex Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 117,997 | May 2023 | GSI | — | (3,410 | ) | (3,410 | ) | ||||||||||||||||
Receive | Western Alliance Bancorp | 1-Month USD LIBOR + 0.20% | Monthly | USD | 324,109 | May 2023 | GSI | — | 24,783 | 24,783 | ||||||||||||||||||
Receive | Western Alliance Bancorp | 1-Month USD LIBOR + 0.20% | Monthly | USD | 642,936 | May 2023 | GSI | — | 49,162 | 49,162 | ||||||||||||||||||
Receive | Western Alliance Bancorp | 1-Month USD LIBOR + 0.20% | Monthly | USD | 133,141 | May 2023 | GSI | — | 10,181 | 10,181 | ||||||||||||||||||
Receive | Western Alliance Bancorp | 1-Month USD LIBOR + 0.20% | Monthly | USD | 243,129 | May 2023 | GSI | — | 18,591 | 18,591 | ||||||||||||||||||
Receive | Western Alliance Bancorp | 1-Month USD LIBOR + 0.20% | Monthly | USD | 288,179 | May 2023 | GSI | — | (6,220 | ) | (6,220 | ) | ||||||||||||||||
Receive | Western Alliance Bancorp | 1-Month USD LIBOR + 0.20% | Monthly | USD | 381,293 | May 2023 | GSI | — | (2,706 | ) | (2,706 | ) | ||||||||||||||||
Receive | Wintrust Financial Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 405,654 | May 2023 | GSI | — | 3,703 | 3,703 |
71 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid | Unrealized appreciation | Value | ||||||||||||||||||
Receive | Worldline SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 1,378,168 | May 2023 | GSI | — | $(171,635 | ) | $(171,635 | ) | ||||||||||||||||
Receive | Zhejiang HangKe Technology, Inc. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 16,880 | May 2023 | GSI | — | (1,472 | ) | (1,472 | ) | ||||||||||||||||
Receive | Abbott Laboratories | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,377,301 | May 2023 | JPM | — | (39,534 | ) | (39,534 | ) | ||||||||||||||||
Receive | Acadia Healthcare Company, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 637,664 | May 2023 | JPM | — | 75,320 | 75,320 | ||||||||||||||||||
Receive | Acadia Healthcare Company, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 95,034 | May 2023 | JPM | — | 11,215 | 11,215 | ||||||||||||||||||
Receive | Adobe, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 346,367 | May 2023 | JPM | — | (28,114 | ) | (28,114 | ) | ||||||||||||||||
Receive | Advanced Micro Devices, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 433,335 | May 2023 | JPM | — | (54,731 | ) | (54,731 | ) | ||||||||||||||||
Receive | Advanced Micro Devices, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 844,959 | May 2023 | JPM | — | (106,720 | ) | (106,720 | ) | ||||||||||||||||
Receive | Advanced Micro Devices, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 595,813 | May 2023 | JPM | — | (75,252 | ) | (75,252 | ) | ||||||||||||||||
Receive | AerCap Holdings NV | 1-Month USD LIBOR + 0.20% | Monthly | USD | 93,968 | May 2023 | JPM | — | (7,596 | ) | (7,596 | ) | ||||||||||||||||
Receive | Agilent Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,357,781 | May 2023 | JPM | — | (11,522 | ) | (11,522 | ) | ||||||||||||||||
Receive | Agios Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 118,865 | May 2023 | JPM | — | 12,133 | 12,133 | ||||||||||||||||||
Receive | Agios Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 566,515 | May 2023 | JPM | — | 57,825 | 57,825 | ||||||||||||||||||
Receive | Agios Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 14,831 | May 2023 | JPM | — | 1,514 | 1,514 | ||||||||||||||||||
Receive | AIA Group, Ltd. | 1-Month HKD HIBOR + 0.30% | Monthly | HKD | 3,835,592 | May 2023 | JPM | — | (40,794 | ) | (40,794 | ) | ||||||||||||||||
Receive | ALD SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 471 | May 2023 | JPM | — | 44 | 44 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 72 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid | Unrealized appreciation | Value | ||||||||||||||||||
Receive | ALD SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 34,974 | May 2023 | JPM | — | $3,232 | $3,232 | ||||||||||||||||||
Receive | ALD SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 140,711 | May 2023 | JPM | — | 13,003 | 13,003 | ||||||||||||||||||
Receive | Alibaba Group Holding, Ltd., ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 800,814 | May 2023 | JPM | — | 45,420 | 45,420 | ||||||||||||||||||
Receive | Alibaba Group Holding, Ltd., ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 915,834 | May 2023 | JPM | — | 51,944 | 51,944 | ||||||||||||||||||
Receive | Alibaba Group Holding, Ltd., ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 355,725 | May 2023 | JPM | — | 20,176 | 20,176 | ||||||||||||||||||
Receive | Align Technology, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 505,465 | May 2023 | JPM | — | 168,442 | 168,442 | ||||||||||||||||||
Receive | Align Technology, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 732,636 | May 2023 | JPM | — | 244,189 | 244,189 | ||||||||||||||||||
Receive | Allscripts Healthcare Solutions, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 122,253 | May 2023 | JPM | — | 26,365 | 26,365 | ||||||||||||||||||
Receive | Allscripts Healthcare Solutions, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 27,017 | May 2023 | JPM | — | 5,827 | 5,827 | ||||||||||||||||||
Receive | Alnylam Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,000,248 | May 2023 | JPM | — | (134,185 | ) | (134,185 | ) | ||||||||||||||||
Receive | Alphabet, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,292,455 | May 2023 | JPM | — | 205,494 | 205,494 | ||||||||||||||||||
Receive | Alphabet, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 599,322 | May 2023 | JPM | — | 22,777 | 22,777 | ||||||||||||||||||
Receive | Alphabet, Inc., Class C | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,533,664 | May 2023 | JPM | — | 229,543 | 229,543 | ||||||||||||||||||
Receive | Amazon.com, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 5,816,146 | May 2023 | JPM | — | (297,837 | ) | (297,837 | ) | ||||||||||||||||
Receive | Amazon.com, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,596,185 | May 2023 | JPM | — | (179,409 | ) | (179,409 | ) | ||||||||||||||||
Receive | Amedisys, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 320,880 | May 2023 | JPM | — | 25,325 | 25,325 |
73 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid | Unrealized appreciation | Value | ||||||||||||||||||
Receive | Amedisys, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,095,120 | May 2023 | JPM | — | $86,430 | $86,430 | ||||||||||||||||||
Receive | American International Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 52,639 | May 2023 | JPM | — | 4,408 | 4,408 | ||||||||||||||||||
Receive | American Tower Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 392,248 | May 2023 | JPM | — | (20,310 | ) | (20,310 | ) | ||||||||||||||||
Receive | American Tower Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 195,637 | May 2023 | JPM | — | (10,106 | ) | (10,106 | ) | ||||||||||||||||
Receive | Amgen, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,809,966 | May 2023 | JPM | — | (429,515 | ) | (429,515 | ) | ||||||||||||||||
Receive | Amgen, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 212,744 | May 2023 | JPM | — | (32,517 | ) | (32,517 | ) | ||||||||||||||||
Receive | Amneal Pharmaceuticals, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 20,650 | May 2023 | JPM | — | 145 | 145 | ||||||||||||||||||
Receive | Amneal Pharmaceuticals, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 51,951 | May 2023 | JPM | — | 364 | 364 | ||||||||||||||||||
Receive | Amneal Pharmaceuticals, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 33,209 | May 2023 | JPM | — | 232 | 232 | ||||||||||||||||||
Receive | Anthem, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,614,475 | May 2023 | JPM | — | (68,193 | ) | (68,193 | ) | ||||||||||||||||
Receive | Arena Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 49,087 | May 2023 | JPM | — | 5,932 | 5,932 | ||||||||||||||||||
Receive | Ares Management Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 203,983 | May 2023 | JPM | — | 192 | 192 | ||||||||||||||||||
Receive | Ares Management Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 506,747 | May 2023 | JPM | — | 477 | 477 | ||||||||||||||||||
Receive | Ares Management Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 661,297 | May 2023 | JPM | — | 622 | 622 | ||||||||||||||||||
Receive | ASML Holding NV, NYRS | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,295,353 | May 2023 | JPM | — | (71,166 | ) | (71,166 | ) | ||||||||||||||||
Receive | ASML Holding NV, NYRS | 1-Month USD LIBOR + 0.20% | Monthly | USD | 592,653 | May 2023 | JPM | — | (32,560 | ) | (32,560 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 74 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation | Value | ||||||||||||||||||
Receive | ASML Holding NV, NYRS | 1-Month USD LIBOR + 0.20% | Monthly | USD | 202,900 | May 2023 | JPM | — | $(11,147) | $(11,147) | ||||||||||||||||||
Receive | Assured Guaranty, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 108,132 | May 2023 | JPM | — | (8,210) | (8,210) | ||||||||||||||||||
Receive | Astellas Pharma, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 7,946,394 | May 2023 | JPM | — | (3,728) | (3,728) | ||||||||||||||||||
Receive | Astellas Pharma, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 27,863,685 | May 2023 | JPM | — | (13,069) | (13,069) | ||||||||||||||||||
Receive | Astellas Pharma, Inc. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 43,563,321 | May 2023 | JPM | — | (20,433) | (20,433) | ||||||||||||||||||
Receive | Atlassian Corp. PLC, Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,141,488 | May 2023 | JPM | — | 54,149 | 54,149 | ||||||||||||||||||
Receive | Australia & New Zealand Banking Group, Ltd. | 1-Month AUD BBSW + 0.30% | Monthly | AUD | 93,948 | May 2023 | JPM | — | 3,730 | 3,730 | ||||||||||||||||||
Receive | Australia & New Zealand Banking Group, Ltd. | 1-Month AUD BBSW + 0.30% | Monthly | AUD | 372,625 | May 2023 | JPM | — | 14,793 | 14,793 | ||||||||||||||||||
Receive | AXA SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 153,890 | May 2023 | JPM | — | (23,906) | (23,906) | ||||||||||||||||||
Receive | Bank of America Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 169,213 | May 2023 | JPM | — | (6,364) | (6,364) | ||||||||||||||||||
Receive | Bank of America Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 437,117 | May 2023 | JPM | — | (10,750) | (10,750) | ||||||||||||||||||
Receive | Baxter International, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 4,109 | May 2023 | JPM | — | (141) | (141) | ||||||||||||||||||
Receive | Baxter International, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 574,464 | May 2023 | JPM | — | (21,529) | (21,529) | ||||||||||||||||||
Receive | Becton, Dickinson and Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,593,633 | May 2023 | JPM | — | (47,298) | (47,298) | ||||||||||||||||||
Receive | Becton, Dickinson and Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 826,108 | May 2023 | JPM | — | (24,518) | (24,518) | ||||||||||||||||||
Receive | Becton, Dickinson and Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 244,570 | May 2023 | JPM | — | (7,258) | (7,258) |
75 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation | Value | ||||||||||||||||||
Receive | Becton, Dickinson and Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 693,226 | May 2023 | JPM | — | $(20,575) | $(20,575) | ||||||||||||||||||
Receive | Biohaven Pharmaceutical Holding Company, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 421,852 | May 2023 | JPM | — | 52,721 | 52,721 | ||||||||||||||||||
Receive | Biohaven Pharmaceutical Holding Company, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 757,240 | May 2023 | JPM | — | 94,636 | 94,636 | ||||||||||||||||||
Receive | Boston Scientific Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 402,995 | May 2023 | JPM | — | (51,140) | (51,140) | ||||||||||||||||||
Receive | Boston Scientific Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 173,285 | May 2023 | JPM | — | (21,148) | (21,148) | ||||||||||||||||||
Receive | Brenntag AG | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 1,021,409 | May 2023 | JPM | — | (7,317) | (7,317) | ||||||||||||||||||
Receive | Brenntag AG | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 116,641 | May 2023 | JPM | — | (836) | (836) | ||||||||||||||||||
Receive | Ceridian HCM Holding, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 415,658 | May 2023 | JPM | — | (9,662) | (9,662) | ||||||||||||||||||
Receive | Charter Communications, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 535,713 | May 2023 | JPM | — | (25,615) | (25,615) | ||||||||||||||||||
Receive | Charter Communications, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 698,012 | May 2023 | JPM | — | (33,376) | (33,376) | ||||||||||||||||||
Receive | Cognizant Technology Solutions Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 608,721 | May 2023 | JPM | — | 4,060 | 4,060 | ||||||||||||||||||
Receive | Cognizant Technology Solutions Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 363,800 | May 2023 | JPM | — | 2,427 | 2,427 | ||||||||||||||||||
Receive | ConvaTec Group PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 25,593 | May 2023 | JPM | — | 1,224 | 1,224 | ||||||||||||||||||
Receive | Credicorp, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 198,392 | May 2023 | JPM | — | (15,181) | (15,181) | ||||||||||||||||||
Receive | Credicorp, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 106,893 | May 2023 | JPM | — | (8,180) | (8,180) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 76 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||||
Receive | Credit Agricole SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 671,336 | May 2023 | JPM | — | $(62,478 | ) | $(62,478 | ) | ||||||||||||||||
Receive | CTT-Correios de Portugal SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 286,315 | May 2023 | JPM | — | (56,906 | ) | (56,906 | ) | ||||||||||||||||
Receive | Daiichi Sankyo Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 11,578,230 | May 2023 | JPM | — | (12,249 | ) | (12,249 | ) | ||||||||||||||||
Receive | Daiichi Sankyo Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 19,049,850 | May 2023 | JPM | — | (20,153 | ) | (20,153 | ) | ||||||||||||||||
Receive | Daiichi Sankyo Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 33,353,460 | May 2023 | JPM | — | (35,283 | ) | (35,283 | ) | ||||||||||||||||
Receive | Daiichi Sankyo Company, Ltd. | 1-Month JPY LIBOR + 0.20% | Monthly | JPY | 33,353,460 | May 2023 | JPM | — | (35,282 | ) | (35,282 | ) | ||||||||||||||||
Receive | DexCom, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,920,965 | May 2023 | JPM | — | (316,496 | ) | (316,496 | ) | ||||||||||||||||
Receive | DNB ASA | 1-Month NOK NIBOR + 0.20% | Monthly | NOK | 2,158,270 | May 2023 | JPM | — | (5,136 | ) | (5,136 | ) | ||||||||||||||||
Receive | Edenred | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 639,626 | May 2023 | JPM | — | 15,963 | 15,963 | ||||||||||||||||||
Receive | Edenred | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 156,526 | May 2023 | JPM | — | 3,906 | 3,906 | ||||||||||||||||||
Receive | Edwards Lifesciences Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 395,460 | May 2023 | JPM | — | (41,837 | ) | (41,837 | ) | ||||||||||||||||
Receive | Electronic Arts, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 604,580 | May 2023 | JPM | — | (50,509 | ) | (50,509 | ) | ||||||||||||||||
Receive | Electronic Arts, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 289,311 | May 2023 | JPM | — | (16,987 | ) | (16,987 | ) | ||||||||||||||||
Receive | Eli Lilly and Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 933,377 | May 2023 | JPM | — | (23,810 | ) | (23,810 | ) | ||||||||||||||||
Receive | Encompass Health Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 30,221 | May 2023 | JPM | — | (2,082 | ) | (2,082 | ) | ||||||||||||||||
Receive | Encompass Health Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 213,798 | May 2023 | JPM | — | (14,730 | ) | (14,730 | ) |
77 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid | Unrealized (depreciation) | Value | ||||||||||||||||||
Receive | Engie SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 7,597 | May 2023 | JPM | — | $(865 | ) | $(865 | ) | ||||||||||||||||
Receive | Engie SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 13,513 | May 2023 | JPM | — | (1,538 | ) | (1,538 | ) | ||||||||||||||||
Receive | Facebook, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,424,723 | May 2023 | JPM | — | (14,698 | ) | (14,698 | ) | ||||||||||||||||
Receive | Facebook, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 386,389 | May 2023 | JPM | — | (2,342 | ) | (2,342 | ) | ||||||||||||||||
Receive | Facebook, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 344,574 | May 2023 | JPM | — | (2,089 | ) | (2,089 | ) | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 808,205 | May 2023 | JPM | — | (116,677 | ) | (116,677 | ) | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 348,931 | May 2023 | JPM | — | (50,313 | ) | (50,313 | ) | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 771,958 | May 2023 | JPM | — | (111,445 | ) | (111,445 | ) | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 321,273 | May 2023 | JPM | — | (46,382 | ) | (46,382 | ) | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 153,867 | May 2023 | JPM | — | (22,213 | ) | (22,213 | ) | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 253,729 | May 2023 | JPM | — | (36,629 | ) | (36,629 | ) | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 141,494 | May 2023 | JPM | — | (20,427 | ) | (20,427 | ) | ||||||||||||||||
Receive | First Busey Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 67,958 | May 2023 | JPM | — | 3,034 | 3,034 | ||||||||||||||||||
Receive | First Busey Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 69,160 | May 2023 | JPM | — | 1,834 | 1,834 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 78 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | First Busey Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 47,419 | May 2023 | JPM | — | $851 | $851 | ||||||||||||||||
Receive | First Busey Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 35,368 | May 2023 | JPM | — | 139 | 139 | ||||||||||||||||
Receive | First Busey Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 107,640 | May 2023 | JPM | — | (2,926) | (2,926) | ||||||||||||||||
Receive | FirstRand, Ltd. | 1-Month ZAR JIBAR + 0.80% | Monthly | ZAR | 2,354,245 | May 2023 | JPM | — | (12,074) | (12,074) | ||||||||||||||||
Receive | FirstRand, Ltd. | 1-Month ZAR JIBAR + 0.80% | Monthly | ZAR | 8,073,210 | May 2023 | JPM | — | (41,408) | (41,408) | ||||||||||||||||
Receive | FleetCor Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 160,076 | May 2023 | JPM | — | (12,106) | (12,106) | ||||||||||||||||
Receive | FleetCor Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 277,864 | May 2023 | JPM | — | (21,014) | (21,014) | ||||||||||||||||
Receive | FleetCor Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 455,620 | May 2023 | JPM | — | (34,456) | (34,456) | ||||||||||||||||
Receive | FleetCor Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 162,227 | May 2023 | JPM | — | (12,268) | (12,268) | ||||||||||||||||
Receive | FleetCor Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 225,063 | May 2023 | JPM | — | (17,020) | (17,020) | ||||||||||||||||
Receive | Galapagos NV | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 9,001 | May 2023 | JPM | — | (1,862) | (1,862) | ||||||||||||||||
Receive | Genmab A/S | 1-Month DKK CIBOR + 0.20% | Monthly | DKK | 799,310 | May 2023 | JPM | — | (13,469) | (13,469) | ||||||||||||||||
Receive | Genmab A/S | 1-Month DKK CIBOR + 0.20% | Monthly | DKK | 322,110 | May 2023 | JPM | — | (5,428) | (5,428) | ||||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 225,769 | May 2023 | JPM | — | (24,074) | (24,074) | ||||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 331,328 | May 2023 | JPM | — | (35,331) | (35,331) | ||||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 602,463 | May 2023 | JPM | — | (64,244) | (64,244) | ||||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 160,457 | May 2023 | JPM | — | (17,110) | (17,110) |
79 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 158,362 | May 2023 | JPM | — | $(14,834) | $(14,834) | ||||||||||||||||||
Receive | GlycoMimetics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 40,613 | May 2023 | JPM | — | (5,848) | (5,848) | ||||||||||||||||||
Receive | GoDaddy, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 35,461 | May 2023 | JPM | — | (2,944) | (2,944) | ||||||||||||||||||
Receive | GoDaddy, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 169,752 | May 2023 | JPM | — | (14,091) | (14,091) | ||||||||||||||||||
Receive | GoDaddy, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 679,009 | May 2023 | JPM | — | (56,365) | (56,365) | ||||||||||||||||||
Receive | GoDaddy, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,115,118 | May 2023 | JPM | — | (174,739) | (174,739) | ||||||||||||||||||
Receive | Hamilton Lane, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 806,301 | May 2023 | JPM | — | 21,959 | 21,959 | ||||||||||||||||||
Receive | Hamilton Lane, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 462,807 | May 2023 | JPM | — | 12,607 | 12,607 | ||||||||||||||||||
Receive | Hamilton Lane, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 572,559 | May 2023 | JPM | — | (11,781) | (11,781) | ||||||||||||||||||
Receive | HCA Healthcare, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 813,432 | May 2023 | JPM | — | (39,129) | (39,129) | ||||||||||||||||||
Receive | Health Catalyst, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 740,206 | May 2023 | JPM | — | (31,236) | (31,236) | ||||||||||||||||||
Receive | Health Catalyst, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 42,540 | May 2023 | JPM | — | (1,795) | (1,795) | ||||||||||||||||||
Receive | Health Catalyst, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 80,294 | May 2023 | JPM | — | (3,388) | (3,388) | ||||||||||||||||||
Receive | Hologic, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 408,690 | May 2023 | JPM | — | 5,438 | 5,438 | ||||||||||||||||||
Receive | Hologic, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 81,684 | May 2023 | JPM | — | 1,087 | 1,087 | ||||||||||||||||||
Receive | Hologic, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 327,006 | May 2023 | JPM | — | 4,352 | 4,352 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 80 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | HubSpot, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 370,007 | May 2023 | JPM | — | $615 | $615 | ||||||||||||||||||
Receive | Humana, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,429,180 | May 2023 | JPM | — | (118,082) | (118,082) | ||||||||||||||||||
Receive | Humana, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 681,883 | May 2023 | JPM | — | (33,214) | (33,214) | ||||||||||||||||||
Receive | Hutchison China MediTech, Ltd., ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 21,118 | May 2023 | JPM | — | (2,076) | (2,076) | ||||||||||||||||||
Receive | IDEXX Laboratories, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 863,999 | May 2023 | JPM | — | 71,247 | 71,247 | ||||||||||||||||||
Receive | IDEXX Laboratories, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 155,771 | May 2023 | JPM | — | 12,845 | 12,845 | ||||||||||||||||||
Receive | II-VI, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 66,674 | May 2023 | JPM | — | 3,879 | 3,879 | ||||||||||||||||||
Receive | II-VI, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 820,880 | May 2023 | JPM | — | 47,764 | 47,764 | ||||||||||||||||||
Receive | Incyte Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 970,811 | May 2023 | JPM | — | (59,768) | (59,768) | ||||||||||||||||||
Receive | Incyte Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 278,469 | May 2023 | JPM | — | (17,150) | (17,150) | ||||||||||||||||||
Receive | Ingersoll Rand, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,031,487 | May 2023 | JPM | — | (55,302) | (55,302) | ||||||||||||||||||
Receive | Intact Financial Corp. | 1-Month CAD CDOR + 0.20% | Monthly | CAD | 3,748 | May 2023 | JPM | — | (129) | (129) | ||||||||||||||||||
Receive | Integra LifeSciences Holdings Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 906,971 | May 2023 | JPM | — | (81,992) | (81,992) | ||||||||||||||||||
Receive | Intuitive Surgical, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 593,053 | May 2023 | JPM | — | (34,182) | (34,182) | ||||||||||||||||||
Receive | Kasikornbank PCL, NVDR | 1-Month USD LIBOR + 1.00% | Monthly | USD | 44,408 | May 2023 | JPM | — | 1,003 | 1,003 | ||||||||||||||||||
Receive | KB Financial Group, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 6,511 | May 2023 | JPM | — | 377 | 377 |
81 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | KBC Group NV | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 54,920 | May 2023 | JPM | — | $(1,303) | $(1,303) | ||||||||||||||||||
Receive | Laboratory Corp. of America Holdings | 1-Month USD LIBOR + 0.20% | Monthly | USD | 798,689 | May 2023 | JPM | — | 27,565 | 27,565 | ||||||||||||||||||
Receive | Leidos Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 237,215 | May 2023 | JPM | — | (18,069) | (18,069) | ||||||||||||||||||
Receive | Leidos Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 101,586 | May 2023 | JPM | — | (7,738) | (7,738) | ||||||||||||||||||
Receive | Lennar Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,951,150 | May 2023 | JPM | — | (294,987) | (294,987) | ||||||||||||||||||
Receive | LiveRamp Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 439,655 | May 2023 | JPM | — | 86,248 | 86,248 | ||||||||||||||||||
Receive | LPL Financial Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 267,542 | May 2023 | JPM | — | 1,518 | 1,518 | ||||||||||||||||||
Receive | Madrigal Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 291,644 | May 2023 | JPM | — | 20,174 | 20,174 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 863,929 | May 2023 | JPM | — | 20,470 | 20,470 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 258,437 | May 2023 | JPM | — | 6,124 | 6,124 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 352,985 | May 2023 | JPM | — | 8,364 | 8,364 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 338,386 | May 2023 | JPM | — | 8,017 | 8,017 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 237,566 | May 2023 | JPM | — | 5,631 | 5,631 | ||||||||||||||||||
Receive | McDonald’s Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,684,581 | May 2023 | JPM | — | (155,856) | (155,856) | ||||||||||||||||||
Receive | Medical Properties Trust, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,382,697 | May 2023 | JPM | — | (45,440) | (45,440) | ||||||||||||||||||
Receive | Meridian Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 56,460 | May 2023 | JPM | — | 3,601 | 3,601 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 82 |
Table of Contents
|
Total return swaps (continued) |
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Meridian Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 38,521 | May 2023 | JPM | — | $2,072 | $2,072 | ||||||||||||||||||
Receive | Meridian Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 63,294 | May 2023 | JPM | — | 4,896 | 4,896 | ||||||||||||||||||
Receive | Meridian Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 74,953 | May 2023 | JPM | — | 6,209 | 6,209 | ||||||||||||||||||
Receive | Meridian Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 75,373 | May 2023 | JPM | — | 5,779 | 5,779 | ||||||||||||||||||
Receive | Meridian Bancorp, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 88,535 | May 2023 | JPM | — | 4,595 | 4,595 | ||||||||||||||||||
Receive | Micron Technology, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 747,584 | May 2023 | JPM | — | (25,277) | (25,277) | ||||||||||||||||||
Receive | Mimecast, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 643,983 | May 2023 | JPM | — | (135,442) | (135,442) | ||||||||||||||||||
Receive | Mimecast, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 586,136 | May 2023 | JPM | — | (124,809) | (124,809) | ||||||||||||||||||
Receive | Molecular Partners AG | 1-Month CHF LIBOR + 0.20% | Monthly | CHF | 547,995 | May 2023 | JPM | — | 25,243 | 25,243 | ||||||||||||||||||
Receive | Molecular Partners AG | 1-Month CHF LIBOR + 0.20% | Monthly | CHF | 19,911 | May 2023 | JPM | — | — | — | ||||||||||||||||||
Receive | Molina Healthcare, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 202,327 | May 2023 | JPM | — | (14,984) | (14,984) | ||||||||||||||||||
Receive | Moneta Money Bank AS | Fixed 0.75% | Monthly | CZK | 4,830,807 | May 2023 | JPM | — | (2,419) | (2,419) | ||||||||||||||||||
Receive | Moneta Money Bank AS | Fixed 0.75% | Monthly | CZK | 1,055,438 | May 2023 | JPM | — | (528) | (528) | ||||||||||||||||||
Receive | Moneta Money Bank AS | Fixed 0.75% | Monthly | CZK | 1,630,887 | May 2023 | JPM | — | (817) | (817) | ||||||||||||||||||
Receive | Moneta Money Bank AS | Fixed 0.75% | Monthly | CZK | 1,667,925 | May 2023 | JPM | — | (835) | (835) | ||||||||||||||||||
Receive | Moneta Money Bank AS | Fixed 0.75% | Monthly | CZK | 2,766,082 | May 2023 | JPM | — | (1,385) | (1,385) | ||||||||||||||||||
Receive | Moneta Money Bank AS | Fixed 0.75% | Monthly | CZK | 1,653,560 | May 2023 | JPM | — | (828) | (828) | ||||||||||||||||||
Receive | Moneta Money Bank AS | Fixed 0.75% | Monthly | CZK | 1,809,298 | May 2023 | JPM | — | (2,611) | (2,611) | ||||||||||||||||||
Receive | Moneta Money Bank AS | Fixed 0.75% | Monthly | CZK | 6,435,307 | May 2023 | JPM | — | (11,071) | (11,071) |
83 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized (received) | Unrealized (depreciation) | Value | ||||||||||||||||||
Receive | Multiplan Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 813,665 | May 2023 | JPM | — | $(239,974) | $(239,974) | ||||||||||||||||||
Receive | Multiplan Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 366,245 | May 2023 | JPM | — | (108,017) | (108,017) | ||||||||||||||||||
Receive | Multiplan Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 109,876 | May 2023 | JPM | — | (32,406) | (32,406) | ||||||||||||||||||
Receive | Multiplan Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 73,237 | May 2023 | JPM | — | (21,600) | (21,600) | ||||||||||||||||||
Receive | NanoString Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 385,907 | May 2023 | JPM | — | (66,227) | (66,227) | ||||||||||||||||||
Receive | NeoGenomics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 472,600 | May 2023 | JPM | — | (22,004) | (22,004) | ||||||||||||||||||
Receive | NeoGenomics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 468,787 | May 2023 | JPM | — | (18,270) | (18,270) | ||||||||||||||||||
Receive | Orchard Therapeutics PLC | 1-Month USD LIBOR + 0.20% | Monthly | USD | 4,273 | May 2023 | JPM | — | (12) | (12) | ||||||||||||||||||
Receive | Paylocity Holding Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,661,540 | May 2023 | JPM | — | (29,621) | (29,621) | ||||||||||||||||||
Receive | PayPal Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,809,443 | May 2023 | JPM | — | (153,678) | (153,678) | ||||||||||||||||||
Receive | Penumbra, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 676,780 | May 2023 | JPM | — | 252,845 | 252,845 | ||||||||||||||||||
Receive | Pfizer, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,456,403 | May 2023 | JPM | — | (50,530) | (50,530) | ||||||||||||||||||
Receive | Pfizer, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,446,958 | May 2023 | JPM | — | (50,389) | (50,389) | ||||||||||||||||||
Receive | Pfizer, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 396,202 | May 2023 | JPM | — | (13,746) | (13,746) | ||||||||||||||||||
Receive | Pfizer, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 396,128 | May 2023 | JPM | — | (13,744) | (13,744) | ||||||||||||||||||
Receive | Pfizer, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 826,324 | May 2023 | JPM | — | (28,670) | (28,670) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 84 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||
Receive | Pfizer, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 675,612 | May 2023 | JPM | — | $(23,509) | $(23,509) | ||||||||||||||||
Receive | Pfizer, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 294,000 | May 2023 | JPM | — | (10,232) | (10,232) | ||||||||||||||||
Receive | Popular, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 403,968 | May 2023 | JPM | — | 28,063 | 28,063 | ||||||||||||||||
Receive | PRA Health Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 529,583 | May 2023 | JPM | — | (56,641) | (56,641) | ||||||||||||||||
Receive | Quest Diagnostics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 736,881 | May 2023 | JPM | — | 46,502 | 46,502 | ||||||||||||||||
Receive | Quidel Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,140,865 | May 2023 | JPM | — | 75,015 | 75,015 | ||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 21,303 | May 2023 | JPM | — | 2,146 | 2,146 | ||||||||||||||||
Receive | Rapid7, Inc. | 1-Month USD LIBOR + | Monthly | USD | 403,229 | May 2023 | JPM | — | (23,605) | (23,605) | ||||||||||||||||
Receive | Regeneron Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 611,131 | May 2023 | JPM | — | (62,284) | (62,284) | ||||||||||||||||
Receive | Repay Holdings Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 160,969 | May 2023 | JPM | — | (7,961) | (7,961) | ||||||||||||||||
Receive | Revance Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 57,453 | May 2023 | JPM | — | 477 | 477 | ||||||||||||||||
Receive | Rigel Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 520,985 | May 2023 | JPM | — | (8,341) | (8,341) | ||||||||||||||||
Receive | Roche Holding AG | 1-Month CHF LIBOR + 0.20% | Monthly | CHF | 57,065 | May 2023 | JPM | — | (4,695) | (4,695) | ||||||||||||||||
Receive | Roche Holding AG | 1-Month CHF LIBOR + 0.20% | Monthly | CHF | 204,351 | May 2023 | JPM | — | (16,812) | (16,812) | ||||||||||||||||
Receive | salesforce.com, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 275,174 | May 2023 | JPM | — | (21,136) | (21,136) | ||||||||||||||||
Receive | SCOR SE | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 631,296 | May 2023 | JPM | — | (106,154) | (106,154) |
85 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | Snap, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 335,960 | May 2023 | JPM |
| — |
|
| $144,477 |
|
| $144,477 |
| ||||||||||
Receive | Snap, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 660,134 | May 2023 | JPM |
| — |
|
| 283,883 |
|
| 283,883 |
| ||||||||||
Receive | Snap, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 367,852 | May 2023 | JPM |
| — |
|
| 158,191 |
|
| 158,191 |
| ||||||||||
Receive | Snap, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 545,925 | May 2023 | JPM |
| — |
|
| 234,770 |
|
| 234,770 |
| ||||||||||
Receive | Splunk, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 292,075 | May 2023 | JPM |
| — |
|
| 5,904 |
|
| 5,904 |
| ||||||||||
Receive | Square, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,329,581 | May 2023 | JPM |
| — |
|
| (191,691 | ) |
| (191,691 | ) | ||||||||||
Receive | Standard Chartered PLC | 1-Month GBP LIBOR + 0.20% | Monthly | GBP | 59,840 | May 2023 | JPM |
| — |
|
| (2,322 | ) |
| (2,322 | ) | ||||||||||
Receive | StepStone Group, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 823,395 | May 2023 | JPM |
| — |
|
| 3,984 |
|
| 3,984 |
| ||||||||||
Receive | StoneCo, Ltd., Class A | 1-Month USD LIBO + 0.20% | Monthly | USD | 287,899 | May 2023 | JPM |
| — |
|
| (9,401 | ) |
| (9,401 | ) | ||||||||||
Receive | StoneCo, Ltd., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 788,816 | May 2023 | JPM |
| — |
|
| (25,759 | ) |
| (25,759 | ) | ||||||||||
Receive | StoneCo, Ltd., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 437,006 | May 2023 | JPM |
| — |
|
| (14,271 | ) |
| (14,271 | ) | ||||||||||
Receive | StoneCo, Ltd., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 442,817 | May 2023 | JPM |
| — |
|
| (14,460 | ) |
| (14,460 | ) | ||||||||||
Receive | Teleflex, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 384,088 | May 2023 | JPM |
| — |
|
| (23,944 | ) |
| (23,944 | ) | ||||||||||
Receive | Teleflex, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 896,770 | May 2023 | JPM |
| — |
|
| (55,906 | ) |
| (55,906 | ) | ||||||||||
Receive | The Blackstone Group, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 282,688 | May 2023 | JPM |
| — |
|
| (20,219 | ) |
| (20,219 | ) | ||||||||||
Receive | The Blackstone Group, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 784,545 | May 2023 | JPM |
| — |
|
| (56,114 | ) |
| (56,114 | ) | ||||||||||
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 86 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||
Receive | The TJX Companies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD |
| 233,301 |
| May 2023 | JPM | — |
| $(27,312) |
|
| $(27,312) |
| ||||||||||
Receive | The TJX Companies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD |
| 820,810 |
| May 2023 | JPM | — |
| (96,093 | ) |
| (96,093 | ) | ||||||||||
Receive | Thermo Fisher Scientific, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD |
| 3,454,836 |
| May 2023 | JPM | — |
| 173,315 |
|
| 173,315 |
| ||||||||||
Receive | Thermo Fisher Scientific, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD |
| 562,887 |
| May 2023 | JPM | — |
| 28,178 |
|
| 28,178 |
| ||||||||||
Receive | Thermo Fisher Scientific, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD |
| 978,405 |
| May 2023 | JPM | — |
| 48,981 |
|
| 48,981 |
| ||||||||||
Receive | Thor Industries, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD |
| 1,166,902 |
| May 2023 | JPM | — |
| (206,373) |
|
| (206,373 | ) | ||||||||||
Receive | T-Mobile US, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 159,342 | May 2023 | JPM | — | (7,298 | ) | (7,298 | ) | ||||||||||||||
Receive | T-Mobile US, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 46,609 | May 2023 | JPM | — | (2,134) | (2,134 | ) | |||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 42,832 | May 2023 | JPM | — | 5,371 | 5,371 | ||||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 14,265 | May 2023 | JPM | — | 1,789 | 1,789 | ||||||||||||||||
Receive | TransUnion | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,126,536 | May 2023 | JPM | — | (187,729) | (187,729 | ) | |||||||||||||||
Receive | Tricida, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 42,835 | May 2023 | JPM | — | (17,352) | (17,352 | ) | |||||||||||||||
Receive | Twitter, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 766,800 | May 2023 | JPM | — | (96,619) | (96,619 | ) | |||||||||||||||
Receive | Twitter, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 255,427 | May 2023 | JPM | — | (32,184) | (32,184 | ) | |||||||||||||||
Receive | Twitter, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 468,843 | May 2023 | JPM | — | (46,265 | ) | (46,265 | ) | ||||||||||||||
Receive | UnitedHealth Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD |
| 2,169,147 |
| May 2023 | JPM | — |
| (89,229) |
|
| (89,229 | ) | ||||||||||
87 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | UnitedHealth Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 830,372 | May 2023 | JPM | — | $(34,177 | ) | $(34,177 | ) | ||||||||||||||||
Receive | UnitedHealth Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 341,375 | May 2023 | JPM | — | (14,042 | ) | (14,042 | ) | ||||||||||||||||
Receive | UnitedHealth Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,022,852 | May 2023 | JPM | — | (42,073 | ) | (42,073 | ) | ||||||||||||||||
Receive | UnitedHealth Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 229,653 | May 2023 | JPM | — | (15,471 | ) | (15,471 | ) | ||||||||||||||||
Receive | UroGen Pharma, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 67,199 | May 2023 | JPM | — | 7,774 | 7,774 | ||||||||||||||||||
Receive | VeriSign, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 308,227 | May 2023 | JPM | — | (19,391 | ) | (19,391 | ) | ||||||||||||||||
Receive | Vertex Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 585,032 | May 2023 | JPM | — | (131,991 | ) | (131,991 | ) | ||||||||||||||||
Receive | Vertex Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 322,776 | May 2023 | JPM | — | (72,830 | ) | (72,830 | ) | ||||||||||||||||
Receive | Vertex Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,279,000 | May 2023 | JPM | — | (288,589 | ) | (288,589 | ) | ||||||||||||||||
Receive | Vietnam Technological and Commercial Joint Stock Bank | 1-Month USD LIBOR + 1.25% | Monthly | USD | 72,240 | May 2023 | JPM | — | (3,886 | ) | (3,886 | ) | ||||||||||||||||
Receive | Vietnam Technological and Commercial Joint Stock Bank | 1-Month USD LIBOR + 1.25% | Monthly | USD | 48,616 | May 2023 | JPM | — | (2,654 | ) | (2,654 | ) | ||||||||||||||||
Receive | Vietnam Technological and Commercial Joint Stock Bank | 1-Month USD LIBOR + 1.25% | Monthly | USD | 19,446 | May 2023 | JPM | — | (1,046 | ) | (1,046 | ) | ||||||||||||||||
Receive | Vietnam Technological and Commercial Joint Stock Bank | 1-Month USD LIBOR + 1.25% | Monthly | USD | 185,664 | May 2023 | JPM | — | (9,988 | ) | (9,988 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 88 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Voya Financial, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 718,550 | May 2023 | JPM | — | $(19,913 | ) | $(19,913 | ) | ||||||||||||||||
Receive | WaVe Life Sciences, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 113,302 | May 2023 | JPM | — | (19,202 | ) | (19,202 | ) | ||||||||||||||||
Receive | WaVe Life Sciences, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 132,696 | May 2023 | JPM | — | (22,472 | ) | (22,472 | ) | ||||||||||||||||
Receive | Western Alliance Bancorp | 1-Month USD LIBOR + 0.20% | Monthly | USD | 301,027 | May 2023 | JPM | — | 58,701 | 58,701 | ||||||||||||||||||
Receive | WEX, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,672,045 | May 2023 | JPM | — | (234,969 | ) | (234,969 | ) | ||||||||||||||||
Receive | Wintrust Financial Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 22,740 | May 2023 | JPM | — | 1,918 | 1,918 | ||||||||||||||||||
Receive | Wintrust Financial Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 802,949 | May 2023 | JPM | — | 67,737 | 67,737 | ||||||||||||||||||
Receive | Wintrust Financial Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 476,731 | May 2023 | JPM | — | 40,216 | 40,216 | ||||||||||||||||||
Receive | Wintrust Financial Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 162,315 | May 2023 | JPM | — | 13,693 | 13,693 | ||||||||||||||||||
Receive | Wolverine World Wide, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 797,145 | May 2023 | JPM | — | (24,322 | ) | (24,322 | ) | ||||||||||||||||
Receive | Workday, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 368,142 | May 2023 | JPM | — | (19,852 | ) | (19,852 | ) | ||||||||||||||||
Receive | Workday, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 284,211 | May 2023 | JPM | — | (15,325 | ) | (15,325 | ) | ||||||||||||||||
Receive | Worldline SA | 1-Month EUR EURIBOR + 0.20% | Monthly | EUR | 117,700 | May 2023 | JPM | — | (14,932 | ) | (14,932 | ) | ||||||||||||||||
Receive | Zealand Pharma A/S, ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 26,178 | May 2023 | JPM | — | (6,543 | ) | (6,543 | ) | ||||||||||||||||
Receive | Zscaler, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 893,366 | May 2023 | JPM | — | (58,992 | ) | (58,992 | ) | ||||||||||||||||
Receive | 2U, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,525 | May 2023 | MSI | — | 18 | 18 |
89 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | 2U, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 568,755 | May 2023 | MSI | — | $3,969 | $3,969 | ||||||||||||||||||
Receive | 2U, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 153,715 | May 2023 | MSI | — | 1,073 | 1,073 | ||||||||||||||||||
Receive | 2U, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 603,808 | May 2023 | MSI | — | 4,214 | 4,214 | ||||||||||||||||||
Receive | Abbott Laboratories | 1-Month USD LIBOR + 0.50% | Monthly | USD | 2,023,519 | May 2023 | MSI | — | (34,727 | ) | (34,727 | ) | ||||||||||||||||
Receive | Abbott Laboratories | 1-Month USD LIBOR + 0.20% | Monthly | USD | 553,557 | May 2023 | MSI | — | (9,612 | ) | (9,612 | ) | ||||||||||||||||
Receive | Adobe, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 627,941 | May 2023 | MSI | — | (67,802 | ) | (67,802 | ) | ||||||||||||||||
Receive | Advanced Micro Devices, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 319,552 | May 2023 | MSI | — | (30,178 | ) | (30,178 | ) | ||||||||||||||||
Receive | AerCap Holdings NV | 1-Month USD LIBOR + 0.50% | Monthly | USD | 855,199 | May 2023 | MSI | — | (58,605 | ) | (58,605 | ) | ||||||||||||||||
Receive | Aerie Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 303,118 | May 2023 | MSI | — | (23,287 | ) | (23,287 | ) | ||||||||||||||||
Receive | Alibaba Group Holding, Ltd., ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,117,285 | May 2023 | MSI | — | 19,376 | 19,376 | ||||||||||||||||||
Receive | Align Technology, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 409,054 | May 2023 | MSI | — | 108,581 | 108,581 | ||||||||||||||||||
Receive | Align Technology, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 630,246 | May 2023 | MSI | — | 167,298 | 167,298 | ||||||||||||||||||
Receive | Alleghany Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 137,957 | May 2023 | MSI | — | (148 | ) | (148 | ) | ||||||||||||||||
Receive | Allscripts Healthcare Solutions, Inc. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 413,034 | May 2023 | MSI | — | (43,675 | ) | (43,675 | ) | ||||||||||||||||
Receive | Alnylam Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 41,167 | May 2023 | MSI | — | (6,004 | ) | (6,004 | ) | ||||||||||||||||
Receive | Alnylam Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 621,821 | May 2023 | MSI | — | (90,685 | ) | (90,685 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 90 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Alphabet, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,034,388 | May 2023 | MSI | — | $40,198 | $40,198 | ||||||||||||||||||
Receive | Alphabet, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 642,409 | May 2023 | MSI | — | 24,964 | 24,964 | ||||||||||||||||||
Receive | Alphabet, Inc., Class C | 1-Month USD LIBOR + 0.20% | Monthly | USD | 314,944 | May 2023 | MSI | — | 12,461 | 12,461 | ||||||||||||||||||
Receive | American International Group, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 828,454 | May 2023 | MSI | — | 42,113 | 42,113 | ||||||||||||||||||
Receive | American Tower Corp. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 1,036,270 | May 2023 | MSI | — | (38,347 | ) | (38,347 | ) | ||||||||||||||||
Receive | Anthem, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 32,734 | May 2023 | MSI | — | (2,461 | ) | (2,461 | ) | ||||||||||||||||
Receive | Archer Daniels Midland Company | 1-Month USD LIBOR + 0.20% | Monthly | USD | 904,413 | May 2023 | MSI | — | (67,122 | ) | (67,122 | ) | ||||||||||||||||
Receive | Arena Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 44,700 | May 2023 | MSI | — | 2,263 | 2,263 | ||||||||||||||||||
Receive | Arena Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 20,474 | May 2023 | MSI | — | 1,037 | 1,037 | ||||||||||||||||||
Receive | Arena Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 79,041 | May 2023 | MSI | — | 4,009 | 4,009 | ||||||||||||||||||
Receive | ASM Pacific Technology, Ltd. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 53,950 | May 2023 | MSI | — | (421 | ) | (421 | ) | ||||||||||||||||
Receive | ASML Holding NV, NYRS | 1-Month USD LIBOR + 0.20% | Monthly | USD | 223,051 | May 2023 | MSI | — | (14,661 | ) | (14,661 | ) | ||||||||||||||||
Receive | Assured Guaranty, Ltd. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 1,066,996 | May 2023 | MSI | — | (63,177 | ) | (63,177 | ) | ||||||||||||||||
Receive | AstraZeneca PLC | 1-Month GBP LIBOR + 0.50% | Monthly | GBP | 511,560 | May 2023 | MSI | — | (29,040 | ) | (29,040 | ) | ||||||||||||||||
Receive | AstraZeneca PLC | 1-Month GBP LIBOR + 0.50% | Monthly | GBP | 111,000 | May 2023 | MSI | — | (6,301 | ) | (6,301 | ) | ||||||||||||||||
Receive | AstraZeneca PLC | 1-Month GBP LIBOR + 0.50% | Monthly | GBP | 1,611,495 | May 2023 | MSI | — | (91,567 | ) | (91,567 | ) |
91 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Atreca, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 438,139 | May 2023 | MSI | — | $(39,452 | ) | $(39,452 | ) | ||||||||||||||||
Receive | AXA SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 152,943 | May 2023 | MSI | — | (16,279 | ) | (16,279 | ) | ||||||||||||||||
Receive | AXA SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 66,842 | May 2023 | MSI | — | (7,114 | ) | (7,114 | ) | ||||||||||||||||
Receive | Banc of California, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 751,641 | May 2023 | MSI | — | 66,666 | 66,666 | ||||||||||||||||||
Receive | Bank Rakyat Indonesia Persero Tbk PT | 1-Month USD LIBOR + 0.75% | Monthly | USD | 13,313 | May 2023 | MSI | — | 257 | 257 | ||||||||||||||||||
Receive | BAWAG Group AG | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 472,262 | May 2023 | MSI | — | (6,918 | ) | (6,918 | ) | ||||||||||||||||
Receive | BAWAG Group AG | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 150,732 | May 2023 | MSI | — | (2,210 | ) | (2,210 | ) | ||||||||||||||||
Receive | BAWAG Group AG | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 50,657 | May 2023 | MSI | — | (742 | ) | (742 | ) | ||||||||||||||||
Receive | BAWAG Group AG | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 232,490 | May 2023 | MSI | — | (3,406 | ) | (3,406 | ) | ||||||||||||||||
Receive | BAWAG Group AG | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 262,382 | May 2023 | MSI | — | (3,844 | ) | (3,844 | ) | ||||||||||||||||
Receive | Beazley PLC | 1-Month GBP LIBOR + 0.30% | Monthly | GBP | 211,501 | May 2023 | MSI | — | (34,995 | ) | (34,995 | ) | ||||||||||||||||
Receive | BioNTech SE, ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,518,439 | May 2023 | MSI | — | (140,197 | ) | (140,197 | ) | ||||||||||||||||
Receive | BioNTech SE, ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 54,590 | May 2023 | MSI | — | (3,039 | ) | (3,039 | ) | ||||||||||||||||
Receive | BioNTech SE, ADR | 1-Month USD LIBOR + 0.20% | Monthly | USD | 194,950 | May 2023 | MSI | — | (10,852 | ) | (10,852 | ) | ||||||||||||||||
Receive | Bio-Techne Corp. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 321,328 | May 2023 | MSI | — | (15,961 | ) | (15,961 | ) | ||||||||||||||||
Receive | Black Diamond Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 3,448 | May 2023 | MSI | — | (140 | ) | (140 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 92 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Bloomberry Resorts Corp. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 19,331 | May 2023 | MSI | — | $(232 | ) | $(232 | ) | ||||||||||||||||
Receive | Bloomberry Resorts Corp. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 363,190 | May 2023 | MSI | — | (4,360 | ) | (4,360 | ) | ||||||||||||||||
Receive | Bloomberry Resorts Corp. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 44,855 | May 2023 | MSI | — | (539 | ) | (539 | ) | ||||||||||||||||
Receive | Bloomberry Resorts Corp. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 112,136 | May 2023 | MSI | — | (1,346 | ) | (1,346 | ) | ||||||||||||||||
Receive | Bloomberry Resorts Corp. | 1-Month USD LIBOR + 0.75% | Monthly | USD | 146,085 | May 2023 | MSI | — | (1,754 | ) | (1,754 | ) | ||||||||||||||||
Receive | Blueprint Medicines Corp. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 1,032,897 | May 2023 | MSI | — | 19,832 | 19,832 | ||||||||||||||||||
Receive | Blueprint Medicines Corp. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 702,310 | May 2023 | MSI | — | 13,479 | 13,479 | ||||||||||||||||||
Receive | Blueprint Medicines Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 37,624 | May 2023 | MSI | — | 726 | 726 | ||||||||||||||||||
Receive | Booking Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 354,039 | May 2023 | MSI | — | (16,603 | ) | (16,603 | ) | ||||||||||||||||
Receive | Cellnex Telecom SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 362,525 | May 2023 | MSI | — | 22,596 | 22,596 | ||||||||||||||||||
Receive | Cellnex Telecom SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 95,222 | May 2023 | MSI | — | 5,935 | 5,935 | ||||||||||||||||||
Receive | Chegg, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 82,463 | May 2023 | MSI | — | (10,429 | ) | (10,429 | ) | ||||||||||||||||
Receive | Chegg, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 123,820 | May 2023 | MSI | — | (15,659 | ) | (15,659 | ) | ||||||||||||||||
Receive | Chegg, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 124,533 | May 2023 | MSI | — | (16,371 | ) | (16,371 | ) | ||||||||||||||||
Receive | Chegg, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 126,902 | May 2023 | MSI | — | (18,736 | ) | (18,736 | ) | ||||||||||||||||
Receive | Chegg, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 50,727 | May 2023 | MSI | — | (7,400 | ) | (7,400 | ) |
93 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Chegg, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 76,524 | May 2023 | MSI | — | $(11,680 | ) | $(11,680 | ) | ||||||||||||||||
Receive | Chegg, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 256,962 | May 2023 | MSI | — | (40,754 | ) | (40,754 | ) | ||||||||||||||||
Receive | Cognizant Technology Solutions Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 430,967 | May 2023 | MSI | — | (13,499 | ) | (13,499 | ) | ||||||||||||||||
Receive | Cognizant Technology Solutions Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 841,882 | May 2023 | MSI | — | (26,373 | ) | (26,373 | ) | ||||||||||||||||
Receive | Cognizant Technology Solutions Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 495,546 | May 2023 | MSI | — | (15,523 | ) | (15,523 | ) | ||||||||||||||||
Receive | Cognizant Technology Solutions Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 156,590 | May 2023 | MSI | — | (4,623 | ) | (4,623 | ) | ||||||||||||||||
Receive | Cognizant Technology Solutions Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 126,047 | May 2023 | MSI | — | (3,502 | ) | (3,502 | ) | ||||||||||||||||
Receive | Cognizant Technology Solutions Corp., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 24,007 | May 2023 | MSI | — | (798 | ) | (798 | ) | ||||||||||||||||
Receive | CoStar Group, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 64,187 | May 2023 | MSI | — | (3,255 | ) | (3,255 | ) | ||||||||||||||||
Receive | CoStar Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 110,159 | May 2023 | MSI | — | (5,574 | ) | (5,574 | ) | ||||||||||||||||
Receive | CoStar Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 111,026 | May 2023 | MSI | — | (5,618 | ) | (5,618 | ) | ||||||||||||||||
Receive | CTT-Correios de Portugal SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 24,703 | May 2023 | MSI | — | (4,359 | ) | (4,359 | ) | ||||||||||||||||
Receive | CTT-Correios de Portugal SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 260,424 | May 2023 | MSI | — | (45,955 | ) | (45,955 | ) | ||||||||||||||||
Receive | CTT-Correios de Portugal SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 86,249 | May 2023 | MSI | — | (15,220 | ) | (15,220 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 94 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | CTT-Correios de Portugal SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 86,246 | May 2023 | MSI | — | $(15,219 | ) | $(15,219 | ) | ||||||||||||||||
Receive | Cytokinetics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 229,768 | May 2023 | MSI | — | (12,204 | ) | (12,204 | ) | ||||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 23,622,144 | May 2023 | MSI | — | (17,970 | ) | (17,970 | ) | ||||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 7,162,220 | May 2023 | MSI | — | (5,449 | ) | (5,449 | ) | ||||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 1,819,116 | May 2023 | MSI | — | (1,384 | ) | (1,384 | ) | ||||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 6,177,964 | May 2023 | MSI | — | (4,700 | ) | (4,700 | ) | ||||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 4,578,548 | May 2023 | MSI | — | (3,483 | ) | (3,483 | ) | ||||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 2,715,492 | May 2023 | MSI | — | (2,066 | ) | (2,066 | ) | ||||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 3,664,596 | May 2023 | MSI | — | (2,788 | ) | (2,788 | ) | ||||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 4,279,756 | May 2023 | MSI | — | (3,256 | ) | (3,256 | ) | ||||||||||||||||
Receive | Eisai Company, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 3,664,596 | May 2023 | MSI | — | (2,788 | ) | (2,788 | ) | ||||||||||||||||
Receive | Electronic Arts, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 481,361 | May 2023 | MSI | — | (42,244 | ) | (42,244 | ) | ||||||||||||||||
Receive | Equity Group Holdings, Ltd. | 1-Month USD LIBOR + 1.50% | Monthly | USD | 345,171 | May 2023 | MSI | — | (10,374 | ) | (10,374 | ) | ||||||||||||||||
Receive | Equity Group Holdings, Ltd. | 1-Month USD LIBOR + 1.50% | Monthly | USD | 108,764 | May 2023 | MSI | — | (3,323 | ) | (3,323 | ) | ||||||||||||||||
Receive | Equity Group Holdings, Ltd. | 1-Month USD LIBOR + 1.50% | Monthly | USD | 163,017 | May 2023 | MSI | — | (4,981 | ) | (4,981 | ) | ||||||||||||||||
Receive | Equity Group Holdings, Ltd. | 1-Month USD LIBOR + 1.50% | Monthly | USD | 61,673 | May 2023 | MSI | — | (1,884 | ) | (1,884 | ) |
95 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Fair Isaac Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 612,251 | May 2023 | MSI | — | $(63,907 | ) | $(63,907 | ) | ||||||||||||||||
Receive | Fair Isaac Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 486,392 | May 2023 | MSI | — | (50,770 | ) | (50,770 | ) | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 485,307 | May 2023 | MSI | — | (65,127 | ) | (65,127 | ) | ||||||||||||||||
Receive | Fidelity National Information Services, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 348,765 | May 2023 | MSI | — | (46,803 | ) | (46,803 | ) | ||||||||||||||||
Receive | First Solar, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,788,274 | May 2023 | MSI | — | 103,339 | 103,339 | ||||||||||||||||||
Receive | FleetCor Technologies, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 3,857,142 | May 2023 | MSI | — | (401,470 | ) | (401,470 | ) | ||||||||||||||||
Receive | FleetCor Technologies, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 203,864 | May 2023 | MSI | — | (21,221 | ) | (21,221 | ) | ||||||||||||||||
Receive | FleetCor Technologies, Inc. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 730,656 | May 2023 | MSI | — | (75,926 | ) | (75,926 | ) | ||||||||||||||||
Receive | Fortive Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 470,996 | May 2023 | MSI | — | (40,718 | ) | (40,718 | ) | ||||||||||||||||
Receive | Freee KK | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 16,262,658 | May 2023 | MSI | — | (21,547 | ) | (21,547 | ) | ||||||||||||||||
Receive | G1 Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 75,298 | May 2023 | MSI | — | (12,994 | ) | (12,994 | ) | ||||||||||||||||
Receive | G1 Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 69,693 | May 2023 | MSI | — | (12,027 | ) | (12,027 | ) | ||||||||||||||||
Receive | G1 Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 21,288 | May 2023 | MSI | — | (3,674 | ) | (3,674 | ) | ||||||||||||||||
Receive | Genus PLC | 1-Month GBP LIBOR + 0.50% | Monthly | GBP | 18,412 | May 2023 | MSI | — | 800 | 800 | ||||||||||||||||||
Receive | Genus PLC | 1-Month GBP LIBOR + 0.50% | Monthly | GBP | 909,148 | May 2023 | MSI | — | 39,512 | 39,512 | ||||||||||||||||||
Receive | Gilead Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,322,349 | May 2023 | MSI | — | (101,192 | ) | (101,192 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 96 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Gilead Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 28,647 | May 2023 | MSI | — | $(2,192 | ) | $(2,192 | ) | ||||||||||||||||
Receive | Gilead Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 102,373 | May 2023 | MSI | — | (7,834 | ) | (7,834 | ) | ||||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 803,883 | May 2023 | MSI | — | (83,587 | ) | (83,587 | ) | ||||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 803,707 | May 2023 | MSI | — | (83,568 | ) | (83,568 | ) | ||||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 388,300 | May 2023 | MSI | — | (40,374 | ) | (40,374 | ) | ||||||||||||||||
Receive | Global Payments, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 410,127 | May 2023 | MSI | — | (42,643 | ) | (42,643 | ) | ||||||||||||||||
Receive | GMO Financial Gate, Inc. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 15,472,480 | May 2023 | MSI | — | (26,110 | ) | (26,110 | ) | ||||||||||||||||
Receive | Grupo Aeroportuario del Sureste SAB de CV | 1-Month MXN TIIE + 0.55% | Monthly | MXN | 323,825 | May 2023 | MSI | — | 221 | 221 | ||||||||||||||||||
Receive | Guidewire Software, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 85,330 | May 2023 | MSI | — | (6,059 | ) | (6,059 | ) | ||||||||||||||||
Receive | Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 40,160 | May 2023 | MSI | — | (3,589 | ) | (3,589 | ) | ||||||||||||||||
Receive | Hikma Pharmaceuticals PLC | 1-Month GBP LIBOR + 0.50% | Monthly | GBP | 13,771 | May 2023 | MSI | — | (1,017 | ) | (1,017 | ) | ||||||||||||||||
Receive | HubSpot, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 810,133 | May 2023 | MSI | — | (57,504 | ) | (57,504 | ) | ||||||||||||||||
Receive | Hutchison China MediTech, Ltd., ADR | 1-Month USD LIBOR + 0.50% | Monthly | USD | 17,523 | May 2023 | MSI | — | (1,218 | ) | (1,218 | ) | ||||||||||||||||
Receive | Hutchison China MediTech, Ltd., ADR | 1-Month USD LIBOR + 0.75% | Monthly | USD | 8,002 | May 2023 | MSI | — | (557 | ) | (557 | ) |
97 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Hutchison China MediTech, Ltd., ADR | 1-Month USD LIBOR + 0.25% | Monthly | USD | 30,681 | May 2023 | MSI | — | $(2,129 | ) | $(2,129 | ) | ||||||||||||||||
Receive | ICON PLC | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,188,271 | May 2023 | MSI | — | (137,272 | ) | (137,272 | ) | ||||||||||||||||
Receive | Insulet Corp. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 149,883 | May 2023 | MSI | — | (17,012 | ) | (17,012 | ) | ||||||||||||||||
Receive | Intuit, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 266,737 | May 2023 | MSI | — | (20,859 | ) | (20,859 | ) | ||||||||||||||||
Receive | JPMorgan Chase & Co. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 105,382 | May 2023 | MSI | — | (2,893 | ) | (2,893 | ) | ||||||||||||||||
Receive | Kasikornbank PCL, NVDR | 1-Month USD LIBOR + 0.70% | Monthly | USD | 220,104 | May 2023 | MSI | — | 9,990 | 9,990 | ||||||||||||||||||
Receive | Kasikornbank PCL, NVDR | 1-Month USD LIBOR + 0.70% | Monthly | USD | 113,966 | May 2023 | MSI | — | 5,173 | 5,173 | ||||||||||||||||||
Receive | Kasikornbank PCL, NVDR | 1-Month USD LIBOR + 0.70% | Monthly | USD | 234,797 | May 2023 | MSI | — | 10,657 | 10,657 | ||||||||||||||||||
Receive | KBC Group NV | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 471,284 | May 2023 | MSI | — | (20,833 | ) | (20,833 | ) | ||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 74,022 | May 2023 | MSI | — | (388 | ) | (388 | ) | ||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 75,464 | May 2023 | MSI | — | (396 | ) | (396 | ) | ||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 174,520 | May 2023 | MSI | — | (916 | ) | (916 | ) | ||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 100,138 | May 2023 | MSI | — | (525 | ) | (525 | ) | ||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 90,845 | May 2023 | MSI | — | (477 | ) | (477 | ) | ||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 49,348 | May 2023 | MSI | — | (259 | ) | (259 | ) | ||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 80,110 | May 2023 | MSI | — | (420 | ) | (420 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 98 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 120,165 | May 2023 | MSI | — | $(631) | $(631) | ||||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 160,220 | May 2023 | MSI | — | (841) | (841) | ||||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 40,055 | May 2023 | MSI | — | (210) | (210) | ||||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 80,110 | May 2023 | MSI | — | (420) | (420) | ||||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 280,385 | May 2023 | MSI | — | (1,471) | (1,471) | ||||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 53,233 | May 2023 | MSI | — | (279) | (279) | ||||||||||||||||||
Receive | Koninklijke Philips NV | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 27,958 | May 2023 | MSI | — | (146) | (146) | ||||||||||||||||||
Receive | Leidos Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 62,060 | May 2023 | MSI | — | (3,387) | (3,387) | ||||||||||||||||||
Receive | Leidos Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 609,544 | May 2023 | MSI | — | (33,270) | (33,270) | ||||||||||||||||||
Receive | Leidos Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 312,409 | May 2023 | MSI | — | (17,052) | (17,052) | ||||||||||||||||||
Receive | Leidos Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 264,920 | May 2023 | MSI | — | (14,460) | (14,460) | ||||||||||||||||||
Receive | LHC Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 160,082 | May 2023 | MSI | — | (6,135) | (6,135) | ||||||||||||||||||
Receive | LHC Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 588,542 | May 2023 | MSI | — | (22,554) | (22,554) | ||||||||||||||||||
Receive | LHC Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 676,351 | May 2023 | MSI | — | (25,920) | (25,920) | ||||||||||||||||||
Receive | LHC Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 288,417 | May 2023 | MSI | — | (11,053) | (11,053) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 65,129 | May 2023 | MSI | — | (330) | (330) |
99 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 152,520 | May 2023 | MSI | — | $(773) | $(773) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 94,899 | May 2023 | MSI | — | (481) | (481) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 39,079 | May 2023 | MSI | — | (198) | (198) | �� | |||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 55,822 | May 2023 | MSI | — | (283) | (283) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 455,891 | May 2023 | MSI | — | (2,311) | (2,311) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 42,798 | May 2023 | MSI | — | (217) | (217) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 89,319 | May 2023 | MSI | — | (453) | (453) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 78,152 | May 2023 | �� | MSI | — | (396) | (396) | |||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 143,281 | May 2023 | MSI | — | (726) | (726) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 223,292 | May 2023 | MSI | — | (1,132) | (1,132) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 232,597 | May 2023 | MSI | — | (1,179) | (1,179) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 240,971 | May 2023 | MSI | — | (1,221) | (1,221) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 186,076 | May 2023 | MSI | — | (943) | (943) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 232,599 | May 2023 | MSI | — | (1,179) | (1,179) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 372,157 | May 2023 | MSI | — | (1,886) | (1,886) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 81,182 | May 2023 | MSI | — | (411) | (411) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 100 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 102,342 | May 2023 | MSI | — | $(519) | $(519) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 7,444 | May 2023 | MSI | — | (38) | (38) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 35,354 | May 2023 | MSI | — | (179) | (179) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 80,014 | May 2023 | MSI | — | (406) | (406) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 240,043 | May 2023 | MSI | — | (1,217) | (1,217) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 78,290 | May 2023 | MSI | — | (397) | (397) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 86,004 | May 2023 | MSI | — | (436) | (436) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 500,171 | May 2023 | MSI | — | (2,535) | (2,535) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 43,460 | May 2023 | MSI | — | (220) | (220) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 196,800 | May 2023 | MSI | — | (997) | (997) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 97,488 | May 2023 | MSI | — | (533) | (533) | ||||||||||||||||||
Receive | Lifetech Scientific Corp. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 99,820 | May 2023 | MSI | — | (834) | (834) | ||||||||||||||||||
Receive | LiveRamp Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 224,511 | May 2023 | MSI | — | 32,617 | 32,617 | ||||||||||||||||||
Receive | Madrigal Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,437,177 | May 2023 | MSI | — | 43,577 | 43,577 | ||||||||||||||||||
Receive | Madrigal Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 73,353 | May 2023 | MSI | — | 2,224 | 2,224 | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 99,043 | May 2023 | MSI | — | (12,440) | (12,440) |
101 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 355,583 | May 2023 | MSI | — | $(44,586) | $(44,586) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 248,552 | May 2023 | MSI | — | (31,166) | (31,166) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 217,026 | May 2023 | MSI | — | (27,213) | (27,213) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 241,207 | May 2023 | MSI | — | (30,245) | (30,245) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 506,295 | May 2023 | MSI | — | (63,484) | (63,484) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 235,881 | May 2023 | MSI | — | (29,577) | (29,577) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 379,979 | May 2023 | MSI | — | (47,645) | (47,645) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 327,451 | May 2023 | MSI | — | (41,059) | (41,059) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 96,122 | May 2023 | MSI | — | (12,053) | (12,053) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 140,103 | May 2023 | MSI | — | (17,567) | (17,567) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 134,047 | May 2023 | MSI | — | (16,808) | (16,808) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 197,055 | May 2023 | MSI | — | (24,708) | (24,708) | ||||||||||||||||||
Receive | Marvell Technology Group, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 394,152 | May 2023 | MSI | — | (49,422) | (49,422) | ||||||||||||||||||
Receive | Mastercard, Inc., Class A | 1-Month USD LIBOR + 0.50% | Monthly | USD | 2,618,839 | May 2023 | MSI | — | (383,731) | (383,731) | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 267,253 | May 2023 | MSI | — | 13,453 | 13,453 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 582,864 | May 2023 | MSI | — | 29,339 | 29,339 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 102 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 261,027 | May 2023 | MSI | — | $13,139 | $13,139 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 292,155 | May 2023 | MSI | — | 14,706 | 14,706 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 80,932 | May 2023 | MSI | — | 4,074 | 4,074 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 157,973 | May 2023 | MSI | — | 7,952 | 7,952 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 84,934 | May 2023 | MSI | — | 4,275 | 4,275 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 299,825 | May 2023 | MSI | — | 15,093 | 15,093 | ||||||||||||||||||
Receive | Match Group, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 254,023 | May 2023 | MSI | — | 12,787 | 12,787 | ||||||||||||||||||
Receive | McDonald’s Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,639,400 | May 2023 | MSI | — | (119,000) | (119,000) | ||||||||||||||||||
Receive | MGIC Investment Corp. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 859,056 | May 2023 | MSI | — | (43,965) | (43,965) | ||||||||||||||||||
Receive | MGIC Investment Corp. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 137,800 | May 2023 | MSI | — | (7,054) | (7,054) | ||||||||||||||||||
Receive | MGIC Investment Corp. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 154,940 | May 2023 | MSI | — | (7,903) | (7,903) | ||||||||||||||||||
Receive | MGIC Investment Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 286,274 | May 2023 | MSI | — | (14,619) | (14,619) | ||||||||||||||||||
Receive | MGIC Investment Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 159,032 | May 2023 | MSI | — | (8,121) | (8,121) | ||||||||||||||||||
Receive | MGIC Investment Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 63,621 | May 2023 | MSI | — | (3,249) | (3,249) | ||||||||||||||||||
Receive | MGIC Investment Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 83,729 | May 2023 | MSI | — | (4,276) | (4,276) | ||||||||||||||||||
Receive | Micron Technology, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 675,052 | May 2023 | MSI | — | (41,185) | (41,185) |
103 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Micron Technology, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 403,784 | May 2023 | MSI | — | $(13,699) | $ | (13,699 | ) | ||||||||||||||||
Receive | Molina Healthcare, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 64,841 | May 2023 | MSI | — | (6,305 | ) | (6,305 | ) | ||||||||||||||||
Receive | Molina Healthcare, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 956,715 | May 2023 | MSI | — | (93,031 | ) | (93,031 | ) | ||||||||||||||||
Receive | MongoDB, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 525,707 | May 2023 | MSI | — | (80,712 | ) | (80,712 | ) | ||||||||||||||||
Receive | Mylan NV | 1-Month USD LIBOR + 0.25% | Monthly | USD | 19,826 | May 2023 | MSI | — | (1,509 | ) | (1,509 | ) | ||||||||||||||||
Receive | NanoString Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,071,675 | May 2023 | MSI | — | (78,340 | ) | (78,340 | ) | ||||||||||||||||
Receive | NanoString Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 158,140 | May 2023 | MSI | — | (11,560 | ) | (11,560 | ) | ||||||||||||||||
Receive | NanoString Technologies, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 395,350 | May 2023 | MSI | — | (28,900 | ) | (28,900 | ) | ||||||||||||||||
Receive | Netflix, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 428,133 | May 2023 | MSI | — | (52,352 | ) | (52,352 | ) | ||||||||||||||||
Receive | Netflix, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 334,377 | May 2023 | MSI | — | (40,888 | ) | (40,888 | ) | ||||||||||||||||
Receive | Novartis AG | 1-Month CHF LIBOR + 0.50% | Monthly | CHF | 20,654 | May 2023 | MSI | — | (1,864 | ) | (1,864 | ) | ||||||||||||||||
Receive | Novartis AG | 1-Month CHF LIBOR + 0.50% | Monthly | CHF | 1,629,336 | May 2023 | MSI | — | (147,050 | ) | (147,050 | ) | ||||||||||||||||
Receive | NuVasive, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 715,388 | May 2023 | MSI | — | (117,712 | ) | (117,712 | ) | ||||||||||||||||
Receive | Ollie’s Bargain Outlet Holdings, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 498,899 | May 2023 | MSI | — | (35,206 | ) | (35,206 | ) | ||||||||||||||||
Receive | OneMain Holdings, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 1,122,606 | May 2023 | MSI | — | (27,882 | ) | (27,882 | ) | ||||||||||||||||
Receive | Paycom Software, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 310,502 | May 2023 | MSI | — | (9,802 | ) | (9,802 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 104 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Paycom Software, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 930,377 | May 2023 | MSI | — | $(29,370) | $(29,370) | ||||||||||||||||||
Receive | Peloton Interactive, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,731,433 | May 2023 | MSI | — | (332,978 | ) | (332,978 | ) | ||||||||||||||||
Receive | Popular, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 224,580 | May 2023 | MSI | — | 15,932 | 15,932 | ||||||||||||||||||
Receive | PRA Health Sciences, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 537,316 | May 2023 | MSI | — | (64,216 | ) | (64,216 | ) | ||||||||||||||||
Receive | Prothena Corp. PLC | 1-Month USD LIBOR + 0.50% | Monthly | USD | 263,018 | May 2023 | MSI | — | (12,466 | ) | (12,466 | ) | ||||||||||||||||
Receive | Prothena Corp. PLC | 1-Month USD LIBOR + 0.50% | Monthly | USD | 41,231 | May 2023 | MSI | — | (1,955 | ) | (1,955 | ) | ||||||||||||||||
Receive | Prothena Corp. PLC | 1-Month USD LIBOR + 0.50% | Monthly | USD | 7,179 | May 2023 | MSI | — | (340 | ) | (340 | ) | ||||||||||||||||
Receive | Prothena Corp. PLC | 1-Month USD LIBOR + 0.25% | Monthly | USD | 27,308 | May 2023 | MSI | — | (1,292 | ) | (1,292 | ) | ||||||||||||||||
Receive | Prudential PLC | 1-Month GBP LIBOR + 0.50% | Monthly | GBP | 417,078 | May 2023 | MSI | — | (68,092 | ) | (68,092 | ) | ||||||||||||||||
Receive | R1 RCM, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 753,842 | May 2023 | MSI | — | 9,706 | 9,706 | ||||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 96,486 | May 2023 | MSI | — | 995 | 995 | ||||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 110,778 | May 2023 | MSI | — | 1,142 | 1,142 | ||||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 59,091 | May 2023 | MSI | — | 609 | 609 | ||||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 36,944 | May 2023 | MSI | — | 381 | 381 | ||||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 82,632 | May 2023 | MSI | — | 852 | 852 | ||||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 19,799 | May 2023 | MSI | — | 204 | 204 |
105 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 9,063 | May 2023 | MSI | — | $93 | $93 | ||||||||||||||||||
Receive | Radius Health, Inc. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 34,223 | May 2023 | MSI | — | 356 | 356 | ||||||||||||||||||
Receive | Regional SAB de CV | Fixed 0.55% | Monthly | MXN | 1,481,562 | May 2023 | MSI | — | (1,968 | ) | (1,968 | ) | ||||||||||||||||
Receive | Regional SAB de CV | Fixed 0.55% | Monthly | MXN | 602,791 | May 2023 | MSI | — | (801 | ) | (801 | ) | ||||||||||||||||
Receive | Regional SAB de CV | Fixed 0.55% | Monthly | MXN | 6,175,103 | May 2023 | MSI | — | (8,203 | ) | (8,203 | ) | ||||||||||||||||
Receive | Regional SAB de CV | Fixed 0.55% | Monthly | MXN | 1,417,226 | May 2023 | MSI | — | (1,883 | ) | (1,883 | ) | ||||||||||||||||
Receive | Regional SAB de CV | Fixed 0.55% | Monthly | MXN | 1,445,060 | May 2023 | MSI | — | (1,920 | ) | (1,920 | ) | ||||||||||||||||
Receive | Repay Holdings Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 73,070 | May 2023 | MSI | — | (4,656 | ) | (4,656 | ) | ||||||||||||||||
Receive | Repligen Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 61,884 | May 2023 | MSI | — | (1,260 | ) | (1,260 | ) | ||||||||||||||||
Receive | Revance Therapeutics, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 48,660 | May 2023 | MSI | — | 733 | 733 | ||||||||||||||||||
Receive | Revance Therapeutics, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 22,304 | May 2023 | MSI | — | 336 | 336 | ||||||||||||||||||
Receive | Revance Therapeutics, Inc. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 82,588 | May 2023 | MSI | — | 1,251 | 1,251 | ||||||||||||||||||
Receive | Revolution Medicines, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,146 | May 2023 | MSI | — | (697 | ) | (697 | ) | ||||||||||||||||
Receive | Rothschild & Company | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 14,927 | May 2023 | MSI | — | (680 | ) | (680 | ) | ||||||||||||||||
Receive | Rothschild & Company | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 22,839 | May 2023 | MSI | — | (1,041 | ) | (1,041 | ) | ||||||||||||||||
Receive | Rothschild & Company | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 887,225 | May 2023 | MSI | — | (40,434 | ) | (40,434 | ) | ||||||||||||||||
Receive | Rothschild & Company | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 320,942 | May 2023 | MSI | — | (14,626 | ) | (14,626 | ) | ||||||||||||||||
Receive | Rothschild & Company | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 304,497 | May 2023 | MSI | — | (13,877 | ) | (13,877 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 106 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Rothschild & Company | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 36,965 | May 2023 | MSI | — | $(1,946) | $(1,946) | ||||||||||||||||||
Receive | Rothschild & Company | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 8,224 | May 2023 | MSI | — | (647 | ) | (647 | ) | ||||||||||||||||
Receive | Rothschild & Company | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 26,014 | May 2023 | MSI | — | (1,650 | ) | (1,650 | ) | ||||||||||||||||
Receive | Rothschild & Company | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 35,821 | May 2023 | MSI | — | (3,316 | ) | (3,316 | ) | ||||||||||||||||
Receive | salesforce.com, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 3,814,256 | May 2023 | MSI | — | (377,557 | ) | (377,557 | ) | ||||||||||||||||
Receive | salesforce.com, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 203,083 | May 2023 | MSI | — | (20,080 | ) | (20,080 | ) | ||||||||||||||||
Receive | Sanne Group PLC | 1-Month GBP LIBOR + 0.30% | Monthly | GBP | 67,579 | May 2023 | MSI | — | (3,611 | ) | (3,611 | ) | ||||||||||||||||
Receive | Sanne Group PLC | 1-Month GBP LIBOR + 0.30% | Monthly | GBP | 39,513 | May 2023 | MSI | — | (2,111 | ) | (2,111 | ) | ||||||||||||||||
Receive | Sanne Group PLC | 1-Month GBP LIBOR + 0.30% | Monthly | GBP | 18,747 | May 2023 | MSI | — | (1,002 | ) | (1,002 | ) | ||||||||||||||||
Receive | Sanne Group PLC | 1-Month GBP LIBOR + 0.30% | Monthly | GBP | 122,132 | May 2023 | MSI | — | (6,526 | ) | (6,526 | ) | ||||||||||||||||
Receive | Seagen, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 1,705,038 | May 2023 | MSI | — | (314,641 | ) | (314,641 | ) | ||||||||||||||||
Receive | Seagen, Inc. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 1,068,665 | May 2023 | MSI | — | (197,118 | ) | (197,118 | ) | ||||||||||||||||
Receive | Seagen, Inc. | 1-Month USD LIBOR + 0.25% | Monthly | USD | 1,068,256 | May 2023 | MSI | — | (197,043 | ) | (197,043 | ) | ||||||||||||||||
Receive | ServiceNow, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 195,776 | May 2023 | MSI | — | (8,714 | ) | (8,714 | ) | ||||||||||||||||
Receive | Shinsei Bank, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 29,983,296 | May 2023 | MSI | — | (19,632 | ) | (19,632 | ) | ||||||||||||||||
Receive | Shinsei Bank, Ltd. | 1-Month JPY LIBOR + 0.35% | Monthly | JPY | 2,003,904 | May 2023 | MSI | — | (1,312 | ) | (1,312 | ) |
107 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | SLM Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 127,742 | May 2023 | MSI | — | $(3,399) | $(3,399) | ||||||||||||||||||
Receive | Smith & Nephew PLC | 1-Month GBP LIBOR + 0.30% | Monthly | GBP | 640,649 | May 2023 | MSI | — | (76,136 | ) | (76,136 | ) | ||||||||||||||||
Receive | Snap, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,179,193 | May 2023 | MSI | — | 475,984 | 475,984 | ||||||||||||||||||
Receive | South State Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 494,296 | May 2023 | MSI | — | 59,471 | 59,471 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 73,179 | May 2023 | MSI | — | 684 | 684 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 91,240 | May 2023 | MSI | — | 853 | 853 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 491,389 | May 2023 | MSI | — | 4,592 | 4,592 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 573,570 | May 2023 | MSI | — | 5,046 | 5,046 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 234,079 | May 2023 | MSI | — | 1,411 | 1,411 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 178,759 | May 2023 | MSI | — | 790 | 790 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 187,520 | May 2023 | MSI | — | 1,046 | 1,046 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 294,148 | May 2023 | MSI | — | 1,677 | 1,677 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 84,151 | May 2023 | MSI | — | 284 | 284 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 213,817 | May 2023 | MSI | — | 1,269 | 1,269 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 444,352 | May 2023 | MSI | — | 4,318 | 4,318 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 852,824 | May 2023 | MSI | — | 8,709 | 8,709 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 108 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 557,558 | May 2023 | MSI | — | $5,021 | $5,021 | ||||||||||||||||||
Receive | Spar Nord Bank A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 896,454 | May 2023 | MSI | — | — | — | ||||||||||||||||||
Receive | Square, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 802,116 | May 2023 | MSI | — | (143,513) | (143,513) | ||||||||||||||||||
Receive | Square, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 542,791 | May 2023 | MSI | — | (97,113) | (97,113) | ||||||||||||||||||
Receive | Standard Chartered PLC | 1-Month GBP LIBOR + 0.30% | Monthly | GBP | 103,730 | May 2023 | MSI | — | (3,259) | (3,259) | ||||||||||||||||||
Receive | Synovus Financial Corp. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 261,161 | May 2023 | MSI | — | 16,070 | 16,070 | ||||||||||||||||||
Receive | Tecan Group AG | 1-Month CHF LIBOR + 0.50% | Monthly | CHF | 83,462 | May 2023 | MSI | — | (3,732) | (3,732) | ||||||||||||||||||
Receive | Tecan Group AG | 1-Month CHF LIBOR + 0.30% | Monthly | CHF | 4,536 | May 2023 | MSI | — | (203) | (203) | ||||||||||||||||||
Receive | Teleflex, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 36,542 | May 2023 | MSI | — | (4,375) | (4,375) | ||||||||||||||||||
Receive | Tencent Holdings, Ltd. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 16,228,800 | May 2023 | MSI | — | 147,339 | 147,339 | ||||||||||||||||||
Receive | Tencent Holdings, Ltd. | 1-Month HKD HIBOR + 0.40% | Monthly | HKD | 4,140,000 | May 2023 | MSI | — | 37,579 | 37,579 | ||||||||||||||||||
Receive | T-Mobile US, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,528,302 | May 2023 | MSI | — | (76,145) | (76,145) | ||||||||||||||||||
Receive | T-Mobile US, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 374,264 | May 2023 | MSI | — | (18,647) | (18,647) | ||||||||||||||||||
Receive | T-Mobile US, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 97,659 | May 2023 | MSI | — | (4,865) | (4,865) | ||||||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 39,164 | May 2023 | MSI | — | 2,494 | 2,494 | ||||||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 337,983 | May 2023 | MSI | — | 21,530 | 21,530 |
109 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 75,532 | May 2023 | MSI | — | $4,811 | $4,811 | ||||||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 129,430 | May 2023 | MSI | — | 8,245 | 8,245 | ||||||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 15,110 | May 2023 | MSI | — | 963 | 963 | ||||||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 22,666 | May 2023 | MSI | — | 1,444 | 1,444 | ||||||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 37,756 | May 2023 | MSI | — | 2,405 | 2,405 | ||||||||||||||||||
Receive | Tower Semiconductor, Ltd. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 30,221 | May 2023 | MSI | — | 1,925 | 1,925 | ||||||||||||||||||
Receive | Tricida, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 64,831 | May 2023 | MSI | — | (24,642) | (24,642) | ||||||||||||||||||
Receive | Tricida, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 116,941 | May 2023 | MSI | — | (44,448) | (44,448) | ||||||||||||||||||
Receive | Tricida, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 11,513 | May 2023 | MSI | — | (4,376) | (4,376) | ||||||||||||||||||
Receive | Turning Point Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 234,822 | May 2023 | MSI | — | (47,891) | (47,891) | ||||||||||||||||||
Receive | Turning Point Therapeutics, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 1,672,355 | May 2023 | MSI | — | (341,067) | (341,067) | ||||||||||||||||||
Receive | Twitter, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 531,693 | May 2023 | MSI | — | (54,010) | (54,010) | ||||||||||||||||||
Receive | UCB SA | 1-Month EUR EURIBOR + 0.50% | Monthly | EUR | 24,687 | May 2023 | MSI | — | (2,611) | (2,611) | ||||||||||||||||||
Receive | Veracyte, Inc. | 1-Month USD LIBOR + 0.20% | Monthly | USD | 986,925 | May 2023 | MSI | — | (187,825) | (187,825) | ||||||||||||||||||
Receive | VeriSign, Inc. | 1-Month USD LIBOR + 0.50% | Monthly | USD | 2,269,359 | May 2023 | MSI | — | (195,268) | (195,268) | ||||||||||||||||||
Receive | Visa, Inc., Class A | 1-Month USD LIBOR + 0.20% | Monthly | USD | 2,478,611 | May 2023 | MSI | — | (221,905) | (221,905) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 110 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||||||||||||||
Receive | WaVe Life Sciences, Ltd. | | 1-Month USD LIBOR + 0.20% | | Monthly | USD | 50,909 | May 2023 | MSI | — | $(10,384) | $(10,384) | ||||||||||||||||||||||||||
Receive | WaVe Life Sciences, Ltd. | | 1-Month USD LIBOR + 0.20% | | Monthly | USD | 7,548 | May 2023 | MSI | — | (1,539) | (1,539) | ||||||||||||||||||||||||||
Receive | Western Alliance Bancorp | | 1-Month USD LIBOR + 0.20% | | Monthly | USD | 382,358 | May 2023 | MSI | — | 38,572 | 38,572 | ||||||||||||||||||||||||||
Receive | Western Alliance Bancorp | | 1-Month USD LIBOR + 0.20% | | Monthly | USD | 136,246 | May 2023 | MSI | — | 13,744 | 13,744 | ||||||||||||||||||||||||||
Receive | Western Alliance Bancorp | | 1-Month USD LIBOR + 0.20% | | Monthly | USD | 146,649 | May 2023 | MSI | — | 14,795 | 14,795 | ||||||||||||||||||||||||||
Receive | Whiting Petroleum Corp. | | 1-Month USD LIBOR + 0.20% | | Monthly | USD | 74,946 | May 2023 | MSI | — | (13,621) | (13,621) | ||||||||||||||||||||||||||
Receive | Whiting Petroleum Corp. | | 1-Month USD LIBOR + 0.20% | | Monthly | USD | 243,141 | May 2023 | MSI | — | (44,188) | (44,188) | ||||||||||||||||||||||||||
Receive | Worldline SA | | 1-Month EUR EURIBOR + 0.30% | | Monthly | EUR | 795,359 | May 2023 | MSI | — | (83,589) | (83,589) | ||||||||||||||||||||||||||
Receive | Wuxi AppTec Company, Ltd., H Shares | | 1-Month HKD HIBOR + 0.40% | | Monthly | HKD | 674,880 | May 2023 | MSI | — | 3,726 | 3,726 | ||||||||||||||||||||||||||
Receive | Wuxi Biologics Cayman, Inc. | | 1-Month HKD HIBOR + 0.40% | | Monthly | HKD | 401,600 | May 2023 | MSI | — | 4,062 | 4,062 | ||||||||||||||||||||||||||
Receive | Zealand Pharma A/S, ADR | | 1-Month USD LIBOR + 0.50% | | Monthly | USD | 20,537 | May 2023 | MSI | — | (3,599) | (3,599) | ||||||||||||||||||||||||||
Receive | Zealand Pharma A/S, ADR | | 1-Month USD LIBOR + 0.25% | | Monthly | USD | 34,855 | May 2023 | MSI | — | (6,106) | (6,106) | ||||||||||||||||||||||||||
Receive | Zions Bancorp NA | | 1-Month USD LIBOR + 0.20% | | Monthly | USD | 83,224 | May 2023 | MSI | — | 2,926 | 2,926 | ||||||||||||||||||||||||||
Receive | Zions Bancorp NA | | 1-Month USD LIBOR + 0.20% | | Monthly | USD | 188,329 | May 2023 | MSI | — | 6,622 | 6,622 | ||||||||||||||||||||||||||
— | $7,926,442 | $7,926,442 |
* Fund will pay or receive the total return of the reference asset depending on whether the return is positive or negative.For contracts where the fund has elected to receive the total return of the reference asset if positive,it will be responsible for paying the floating rate and the total return of the reference asset if negative.If the fund has elected to pay the total return of the reference asset if positive,it will receive the floating rate and the total return of the reference asset if negative.
111 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Derivatives Currency Abbreviations
AUD | Australian Dollar | |
CAD | Canadian Dollar | |
CHF | Swiss Franc | |
CZK | Czech Republic Koruna | |
DKK | Danish Krone | |
EUR | Euro | |
GBP | Pound Sterling | |
HKD | Hong Kong Dollar | |
JPY | Japanese Yen | |
MXN | Mexican Peso | |
NOK | Norwegian Krone | |
USD | U.S. Dollar | |
ZAR | South African Rand |
Derivatives Abbreviations
ADR | American Depositary Receipt | |
BBSW | Bank Bill Swap Rate | |
BNP | BNP Paribas | |
CDOR | Canadian Dollar Offered Rate | |
CIBOR | Copenhagen Interbank Offered Rate | |
CITI | Citibank, N.A. | |
EURIBOR | Euro Interbank Offered Rate | |
GSI | Goldman Sachs International | |
HIBOR | Hong Kong Interbank Offered Rate | |
HUS | HSBC Bank USA, N.A. | |
JIBAR | Johannesburg Interbank Agreed Rate | |
JPM | JPMorgan Chase Bank, N.A. | |
LIBOR | London Interbank Offered Rate | |
MSI | Morgan Stanley & Co. International PLC | |
NIBOR | Norwegian Interbank Offered Rate | |
NVDR | Non-Voting Depositary Receipt | |
NYRS | New York Registry Shares | |
OTC | Over-the-counter | |
TIIE | Tasa de Interes Interbancario de Equilibrio (Interbank Equilibrium Interest Rate) |
At 10-31-20,the aggregate cost of investments for federal income tax purposes was $695,571,064. Net unrealized appreciation aggregated to $43,825,957, of which $78,643,055 related to gross unrealized appreciation and $34,817,098 related to gross unrealized depreciation.
See Notes to financial statements regarding investment transactions and other derivatives information.
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 112 |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 |
Assets | ||||
Unaffiliated investments, at value (Cost $682,396,175) | $ | 732,306,730 | ||
Swap contracts, at value | 33,538,426 | |||
Unrealized appreciation on forward foreign currency contracts | 436,321 | |||
Receivable for futures variation margin | 8,369 | |||
Foreign currency, at value (Cost $2,827,560) | 2,812,811 | |||
Dividends and interest receivable | 395,535 | |||
Receivable for fund shares sold | 2,858,713 | |||
Receivable for investments sold | 5,763,237 | |||
Receivable for securities lending income | 51 | |||
Other assets | 51,163 | |||
Total assets | 778,171,356 | |||
Liabilities | ||||
Unrealized depreciation on forward foreign currency contracts | 320,050 | |||
Written options, at value (Premiums received $2,203,501) | 1,056,118 | |||
Swap contracts, at value | 25,611,984 | |||
Due to custodian | 464,233 | |||
Foreign capital gains tax payable | 99,388 | |||
Payable for collateral on OTC derivatives | 12,583,000 | |||
Payable for investments purchased | 8,034,977 | |||
Payable for fund shares repurchased | 546,661 | |||
Payable to affiliates | ||||
Accounting and legal services fees | 26,919 | |||
Transfer agent fees | 63,909 | |||
Other liabilities and accrued expenses | 263,629 | |||
Total liabilities | 49,070,868 | |||
Net assets | $ | 729,100,488 | ||
Net assets consist of | ||||
Paid-in capital | $ | 659,453,372 | ||
Total distributable earnings (loss) | 69,647,116 | |||
Net assets | $ | 729,100,488 |
113 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 (continued) |
| |||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class A ($11,580,539 ÷ 998,161 shares)1 | $ | 11.60 | ||
Class C ($5,414,551 ÷ 485,196 shares)1 | $ | 11.16 | ||
Class I ($615,622,324 ÷ 51,977,067 shares) | $ | 11.84 | ||
Class R6 ($37,340,467 ÷ 3,124,034 shares) | $ | 11.95 | ||
Class NAV ($59,142,607 ÷ 4,946,526 shares) | $ | 11.96 | ||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95%)2 | $ | 12.21 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 114 |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20 |
| |||
Investment income | ||||
Dividends | $5,366,316 | |||
Interest | 3,082,277 | |||
Securities lending | 822 | |||
Less foreign taxes withheld | (290,317 | ) | ||
Total investment income | 8,159,098 | |||
Expenses | ||||
Investment management fees | 10,654,718 | |||
Distribution and service fees | 87,834 | |||
Accounting and legal services fees | 136,245 | |||
Transfer agent fees | 739,749 | |||
Trustees’ fees | 11,964 | |||
Custodian fees | 250,646 | |||
State registration fees | 87,940 | |||
Printing and postage | 92,449 | |||
Professional fees | 133,626 | |||
Other | 69,654 | |||
Total expenses | 12,264,825 | |||
Less expense reductions | (51,513 | ) | ||
Net expenses | 12,213,312 | |||
Net investment loss | (4,054,214 | ) | ||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | 73,718,492 | |||
Affiliated investments | (62 | ) | ||
Futures contracts | 279,496 | |||
Forward foreign currency contracts | 537,459 | |||
Written options | (441,108 | ) | ||
Swap contracts | (45,893,558 | ) | ||
28,200,719 | ||||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 6,026,548 | |||
Futures contracts | 103,696 | |||
Forward foreign currency contracts | (15,685 | ) | ||
Written options | 593,317 | |||
Swap contracts | 11,904,644 | |||
18,612,520 | ||||
Net realized and unrealized gain | 46,813,239 | |||
Increase in net assets from operations | $42,759,025 |
115 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS
Year ended 10-31-20 | Year ended 10-31-19 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income (loss) | $(4,054,214) | $111,891 | ||||||
Net realized gain | 28,200,719 | 7,191,577 | ||||||
Change in net unrealized appreciation (depreciation) | 18,612,520 | 35,856,213 | ||||||
Increase in net assets resulting from operations | 42,759,025 | 43,159,681 | ||||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (93,501) | (537,753) | ||||||
Class C | (8,454) | (257,811) | ||||||
Class I | (6,373,467) | (17,006,375) | ||||||
Class R6 | (323,613) | (868,772) | ||||||
Class NAV | (1,626,261) | (4,069,796) | ||||||
Total distributions | (8,425,296) | (22,740,507) | ||||||
From fund share transactions | (47,332,679) | (33,287,756) | ||||||
Total decrease | (12,998,950) | (12,868,582) | ||||||
Net assets | ||||||||
Beginning of year | 742,099,438 | 754,968,020 | ||||||
End of year | $729,100,488 | $742,099,438 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 116 |
Table of Contents
|
CLASS A SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $11.02 | $10.73 | $11.82 | $10.45 | $10.81 | |||||||||||||||
Net investment loss1 | (0.10 | ) | (0.03 | ) | (0.07 | ) | (0.22 | ) | (0.28 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 0.78 | 0.67 | (0.11 | ) | 1.60 | (0.03 | ) | |||||||||||||
Total from investment operations | 0.68 | 0.64 | (0.18 | ) | 1.38 | (0.31 | ) | |||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.10 | ) | — | — | — | — | ||||||||||||||
From net realized gain | — | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
Total distributions | (0.10 | ) | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | ||||||||||
Net asset value, end of period | $11.60 | $11.02 | $10.73 | $11.82 | $10.45 | |||||||||||||||
Total return (%)2,3 | 6.15 | 6.09 | (1.57 | ) | 13.16 | (2.94 | ) | |||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $12 | $11 | $19 | $22 | $22 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 2.00 | 1.98 | 2.00 | 4 | 3.86 | 5 | 4.22 | 5 | ||||||||||||
Expenses including reductions | 1.99 | 1.97 | 1.99 | 4 | 3.85 | 5 | 4.21 | 5 | ||||||||||||
Net investment loss | (0.87 | ) | (0.25 | ) | (0.61 | ) | (1.99 | ) | (2.71 | ) | ||||||||||
Portfolio turnover (%) | 221 | 170 | 169 | 485 | 403 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
4 | Expense ratios have decreased due to a change in the fund’s fundamental investment restrictions and the related discontinued use of prime brokerage services and their associated expenses on short sales (dividends on investments sold short and broker fees and expenses on short sales). |
5 | Includes dividends on investments sold short and broker fees and expenses on short sales for the periods ended 10-31-17 and 10-31-16, which were equivalent to a net annual effective rate of 1.84% and 2.16%, respectively, of the fund’s average daily net assets. |
117 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS C SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $10.61 | $10.42 | $11.57 | $10.30 | $10.74 | |||||||||||||||
Net investment loss1 | (0.17 | ) | (0.10 | ) | (0.15 | ) | (0.29 | ) | (0.35 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 0.74 | 0.64 | (0.09 | ) | 1.57 | (0.04 | ) | |||||||||||||
Total from investment operations | 0.57 | 0.54 | (0.24 | ) | 1.28 | (0.39 | ) | |||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.02 | ) | — | — | — | — | ||||||||||||||
From net realized gain | — | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
Total distributions | (0.02 | ) | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | ||||||||||
Net asset value, end of period | $11.16 | $10.61 | $10.42 | $11.57 | $10.30 | |||||||||||||||
Total return (%)2,3 | 5.33 | 5.39 | (2.26 | ) | 12.38 | (3.61 | ) | |||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $5 | $6 | $10 | $12 | $16 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 2.70 | 2.68 | 2.70 | 4 | 4.56 | 5 | 4.93 | 5 | ||||||||||||
Expenses including reductions | 2.69 | 2.67 | 2.69 | 4 | 4.55 | 5 | 4.92 | 5 | ||||||||||||
Net investment loss | (1.56 | ) | (0.99 | ) | (1.33 | ) | (2.66 | ) | (3.42 | ) | ||||||||||
Portfolio turnover (%) | 221 | 170 | 169 | 485 | 403 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
4 | Expense ratios have decreased due to a change in the fund’s fundamental investment restrictions and the related discontinued use of prime brokerage services and their associated expenses on short sales (dividends on investments sold short and broker fees and expenses on short sales). |
5 | Includes dividends on investments sold short and broker fees and expenses on short sales for the periods ended 10-31-17 and 10-31-16, which were equivalent to a net annual effective rate of 1.84% and 2.16%, respectively, of the fund’s average daily net assets. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 118 |
Table of Contents
|
CLASS I SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $11.24 | $10.92 | $11.97 | $10.55 | $10.89 | |||||||||||||||
Net investment loss1 | (0.07 | ) | — | 2 | (0.04 | ) | (0.19 | ) | (0.25 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 0.80 | 0.67 | (0.10 | ) | 1.62 | (0.04 | ) | |||||||||||||
Total from investment operations | 0.73 | 0.67 | (0.14 | ) | 1.43 | (0.29 | ) | |||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.13 | ) | — | — | — | — | ||||||||||||||
From net realized gain | — | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
Total distributions | (0.13 | ) | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | ||||||||||
Net asset value, end of period | $11.84 | $11.24 | $10.92 | $11.97 | $10.55 | |||||||||||||||
Total return (%)3 | 6.57 | 6.36 | (1.28 | ) | 13.51 | (2.64 | ) | |||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $616 | $565 | $566 | $454 | $422 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.70 | 1.69 | 1.71 | 4 | 3.54 | 5 | 3.87 | 5 | ||||||||||||
Expenses including reductions | 1.69 | 1.68 | 1.70 | 4 | 3.54 | 5 | 3.87 | 5 | ||||||||||||
Net investment loss | (0.58 | ) | — | 6 | (0.36 | ) | (1.65 | ) | (2.40 | ) | ||||||||||
Portfolio turnover (%) | 221 | 170 | 169 | 485 | 403 |
1 | Based on average daily shares outstanding. |
2 | Less than $0.005 per share. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Expense ratios have decreased due to a change in the fund’s fundamental investment restrictions and the related discontinued use of prime brokerage services and their associated expenses on short sales (dividends on investments sold short and broker fees and expenses on short sales). |
5 | Includes dividends on investments sold short and broker fees and expenses on short sales for the periods ended 10-31-17 and 10-31-16, which were equivalent to a net annual effective rate of 1.84% and 2.16%, respectively, of the fund’s average daily net assets. |
6 | Less than 0.005%. |
119 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $11.34 | $11.00 | $12.04 | $10.60 | $10.93 | |||||||||||||||
Net investment income (loss)1 | (0.06 | ) | 0.01 | (0.03 | ) | (0.19 | ) | (0.24 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 0.81 | 0.68 | (0.10 | ) | 1.64 | (0.04 | ) | |||||||||||||
Total from investment operations | 0.75 | 0.69 | (0.13 | ) | 1.45 | (0.28 | ) | |||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.14 | ) | — | — | — | — | ||||||||||||||
From net realized gain | — | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
Total distributions | (0.14 | ) | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | ||||||||||
Net asset value, end of period | $11.95 | $11.34 | $11.00 | $12.04 | $10.60 | |||||||||||||||
Total return (%)2 | 6.62 | 6.50 | (1.19 | ) | 13.64 | (2.54 | ) | |||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $37 | $27 | $30 | $9 | $5 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.59 | 1.58 | 1.60 | 3 | 3.45 | 4 | 4.04 | 4 | ||||||||||||
Expenses including reductions | 1.58 | 1.57 | 1.60 | 3 | 3.44 | 4 | 4.01 | 4 | ||||||||||||
Net investment income (loss) | (0.51 | ) | 0.12 | (0.23 | ) | (1.57 | ) | (2.34 | ) | |||||||||||
Portfolio turnover (%) | 221 | 170 | 169 | 485 | 403 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Expense ratios have decreased due to a change in the fund’s fundamental investment restrictions and the related discontinued use of prime brokerage services and their associated expenses on short sales (dividends on investments sold short and broker fees and expenses on short sales). |
4 | Includes dividends on investments sold short and broker fees and expenses on short sales for the periods ended 10-31-17 and 10-31-16, which were equivalent to a net annual effective rate of 1.84% and 2.16%, respectively, of the fund’s average daily net assets. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 120 |
Table of Contents
|
CLASS NAV SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $11.35 | $11.00 | $12.04 | $10.60 | $10.93 | |||||||||||||||
Net investment income (loss)1 | (0.04 | ) | 0.01 | (0.03 | ) | (0.17 | ) | (0.24 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 0.79 | 0.69 | (0.10 | ) | 1.62 | (0.04 | ) | |||||||||||||
Total from investment operations | 0.75 | 0.70 | (0.13 | ) | 1.45 | (0.28 | ) | |||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.14 | ) | — | — | — | — | ||||||||||||||
From net realized gain | — | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
Total distributions | (0.14 | ) | (0.35 | ) | (0.91 | ) | (0.01 | ) | (0.05 | ) | ||||||||||
Net asset value, end of period | $11.96 | $11.35 | $11.00 | $12.04 | $10.60 | |||||||||||||||
Total return (%)2 | 6.64 | 6.59 | (1.19 | ) | 13.64 | (2.54 | ) | |||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $59 | $134 | $130 | $152 | $185 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.58 | 1.56 | 1.59 | 3 | 3.44 | 4 | 3.78 | 4 | ||||||||||||
Expenses including reductions | 1.57 | 1.55 | 1.58 | 3 | 3.43 | 4 | 3.77 | 4 | ||||||||||||
Net investment income (loss) | (0.35 | ) | 0.13 | (0.23 | ) | (1.54 | ) | (2.30 | ) | |||||||||||
Portfolio turnover (%) | 221 | 170 | 169 | 485 | 403 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Expense ratios have decreased due to a change in the fund’s fundamental investment restrictions and the related discontinued use of prime brokerage services and their associated expenses on short sales (dividends on investments sold short and broker fees and expenses on short sales). |
4 | Includes dividends on investments sold short and broker fees and expenses on short sales for the periods ended 10-31-17 and 10-31-16, which were equivalent to a net annual effective rate of 1.84% and 2.16%, respectively, of the fund’s average daily net assets. |
121 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Note 1 — Organization
John Hancock Seaport Long/Short Fund (the fund) is a series of John Hancock Investment Trust ((the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares after 8 years (certain exclusions apply).
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds are valued at their respective NAVs each business day. Debt obligations are typically valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Exchange- traded options are valued at the mid-price of the last quoted bid and ask prices from the exchange where the option trades. Unlisted options are valued using evaluated prices obtained from an independent pricing vendor. Futures contracts are typically valued at the last traded price on the exchange on which they trade. Swaps are generally valued using evaluated prices obtained from an independent pricing vendor. Forward foreign currency contracts are valued at the prevailing forward rates which are based on foreign currency exchange spot rates and forward points supplied by an independent pricing vendor. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 122 |
Table of Contents
|
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund’s Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2020, by major security category or type:
Total value at 10-31-20 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |||||||||||||
Investments in securities: | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | ||||||||||||||||
Communication services | $34,408,809 | $24,861,430 | $9,547,379 | — | ||||||||||||
Consumer discretionary | 40,960,563 | 33,446,441 | 7,514,122 | — | ||||||||||||
Consumer staples | 817,842 | 817,842 | — | — | ||||||||||||
Energy | 8,512,626 | 5,362,615 | 3,150,011 | — | ||||||||||||
Financials | 97,771,204 | 62,086,429 | 35,684,775 | — | ||||||||||||
Health care | 108,248,163 | 86,857,720 | 21,228,041 | $162,402 | ||||||||||||
Industrials | 32,758,092 | 18,783,051 | 13,975,041 | — | ||||||||||||
Information technology | 78,878,608 | 59,324,620 | 19,553,988 | — | ||||||||||||
Materials | 4,282,822 | 3,619,244 | 663,578 | — | ||||||||||||
Real estate | 9,280,860 | 5,482,678 | 3,798,182 | — | ||||||||||||
Utilities | 15,996,375 | — | 13,445,377 | 2,550,998 |
123 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Level 2 | Level 3 | |||||||||||||||
Total | Level 1 | significant | significant | |||||||||||||
value at | quoted | observable | unobservable | |||||||||||||
10-31-20 | price | inputs | inputs | |||||||||||||
Preferred securities | $4,303,225 | $4,303,225 | — | — | ||||||||||||
Purchased options | 4,433,852 | 2,736,815 | $1,535,617 | $161,420 | ||||||||||||
Convertible bonds | 579,736 | — | 579,736 | — | ||||||||||||
Short-term investments | 291,073,953 | 90,737,580 | 200,336,373 | — | ||||||||||||
Total investments in securities | $732,306,730 | $398,419,690 | $331,012,220 | $2,874,820 | ||||||||||||
Derivatives: | ||||||||||||||||
Assets | ||||||||||||||||
Futures | $103,696 | $103,696 | — | — | ||||||||||||
Forward foreign currency contracts | 436,321 | — | $436,321 | — | ||||||||||||
Swap contracts | 33,538,426 | — | 33,538,426 | — | ||||||||||||
Liabilities | ||||||||||||||||
Forward foreign currency contracts | (320,050) | — | (320,050) | — | ||||||||||||
Written options | (1,056,118) | (810,515) | (245,603) | — | ||||||||||||
Swap contracts | (25,611,984) | — | (25,611,984) | — |
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of the fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Special purpose acquisition companies. Special purpose acquisition companies (SPACs) are collective investment structures that allow public stock market investors to invest in private equity type transactions (PIPE). SPACs are shell or blank-check companies, that have no operations but go public with the intention of merging with or acquiring a company with the proceeds of the SPAC’s initial public offering (“IPO”). The fund may enter into a contingent commitment with a SPAC to purchase PIPE shares if and when the SPAC completes its merger or acquisition; however if the commitment expires, then no shares are purchased. Purchased PIPE shares will be restricted from trading until the registration statement for the shares is declared effective. Upon registration, the shares can be freely sold; however, in certain circumstances, the issuer may have the right to temporarily suspend trading of the shares in the first year after the merger. The securities issued by a SPAC, which are typically traded in the over-the-counter market, may be considered illiquid, more difficult to value, and/or be subject to restrictions on resale. The fund had contingent commitments outstanding of approximately $4,000,000 to purchase PIPE shares as of October 31, 2020.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any,are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 124 |
Table of Contents
|
Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund will invest its cash collateral in John Hancock Collateral Trust (JHCT), an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations. As of October 31, 2020, there were no securities on loan.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law. Overdrafts at period end are presented under the caption Due to custodian in the Statement of assets and liabilities.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs
125 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $5,939.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any,and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
Qualified late year ordinary losses of $1,744,867 are treated as occurring on November 1, 2020, the first day of the fund’s next taxable year.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2020 and 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||||
Ordinary income | $8,425,296 | $449 | ||||||
Long-term capital gains | — | 22,740,058 | ||||||
Total | $8,425,296 | $22,740,507 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $27,739,446 of undistributed long-term capital gains.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 126 |
Table of Contents
|
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to foreign currency transactions, wash sale loss deferrals, investments in passive foreign investment companies, and derivative transactions.
Note 3 — Derivative instruments
The fund may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Derivatives which are typically traded through the OTC market are regulated by the Commodity Futures Trading Commission (the CFTC). Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has the right to close out all transactions and to net amounts owed.
As defined by the ISDA, the fund may have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund, if any, is held in a segregated account by a third-party agent or held by the custodian bank for the benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund, if any, for OTC transactions is held in a segregated account at the fund’s custodian and is noted in the accompanying Fund’s investments, or if cash is posted, on the Statement of assets and liabilities. The fund’s risk of loss due to counterparty risk is equal to the asset value of outstanding contracts offset by collateral received.
Certain derivatives are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.
Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Futures are traded on an exchange and cleared through a central clearinghouse. Risks related to the use of futures contracts include possible illiquidity of the futures markets and contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument and potential losses in excess of the amounts recognized on the Statement of assets and liabilities. Use of long futures contracts subjects the fund to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the fund to unlimited risk of loss.
Upon entering into a futures contract, the fund is required to deposit initial margin with the broker in the form of cash or securities. The amount of required margin is set by the broker and is generally based on a percentage of the contract value. The margin deposit must then be maintained at the established level over the life of the
127 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
contract. Cash that has been pledged by the fund is detailed in the Statement of assets and liabilities as Collateral held at broker for futures contracts. Securities pledged by the fund, if any, are identified in the Fund’s investments. Subsequent payments, referred to as variation margin, are made or received by the fund periodically and are based on changes in the market value of open futures contracts. Futures contracts are marked-to-market daily and unrealized gain or loss is recorded by the fund. Receivable for futures variation margin is included on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
During the year ended October 31, 2020, the fund used futures contracts to manage against changes in certain securities markets. The fund held futures contracts with USD notional values ranging up to $6.1 million, as measured at each quarter end.
Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls for delivery of the currencies on a future date that is specified in the contract. Forwards are typically traded OTC. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral if applicable, and the risk that currency movements will not favor the fund thereby reducing the fund’s total return, and the potential for losses in excess of the amounts recognized on the Statement of assets and liabilities.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed,are recorded upon delivery or receipt of the currency or settlement with the counterparty.
During the year ended October 31, 2020, the fund used forward foreign currency contracts to manage against changes in foreign currency exchange rates and to gain exposure to foreign currencies. The fund held forward foreign currency contracts with USD notional values ranging from $56.7 million to $93.1 million, as measured at each quarter end.
Options. There are two types of options, put options and call options. Options are traded either OTC or on an exchange. A call option gives the purchaser of the option the right to buy (and the seller the obligation to sell) the underlying instrument at the exercise price. A put option gives the purchaser of the option the right to sell (and the writer the obligation to buy) the underlying instrument at the exercise price. Writing puts and buying calls may increase the fund’s exposure to changes in the value of the underlying instrument. Buying puts and writing calls may decrease the fund’s exposure to such changes. Risks related to the use of options include the loss of premiums, possible illiquidity of the options markets, trading restrictions imposed by an exchange and movements in underlying security values, and for written options, potential losses in excess of the amounts recognized on the Statement of assets and liabilities. In addition, OTC options are subject to the risks of all OTC derivatives contracts.
When the fund purchases an option, the premium paid is included in the Fund’s investments and subsequently “marked-to-market” to reflect current market value. If the purchased option expires, the fund realizes a loss equal to the cost of the option. If the fund exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If the fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium paid. If the fund enters into a closing sale transaction, it realizes a gain or loss, depending on whether proceeds from the closing sale are greater or less than the original cost. When the fund writes an option, the premium received is included as a liability and subsequently “marked-to-market” to reflect the current market value of the option written. Premiums received from writing options that expire unexercised are recorded as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium received reduces the cost basis of the securities purchased by the fund.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 128 |
Table of Contents
|
During the year ended October 31, 2020, the fund used purchased options contracts to manage against changes in certain securities markets and foreign currency exchange rates and to gain exposure to certain securities markets and foreign currencies. The fund held purchased options contracts with market values ranging from $3.9 million to $7.2 million, as measured at each quarter end.
During the year ended October 31, 2020, the fund wrote option contracts to manage against changes in certain securities markets and foreign currency exchange rates and to gain exposure to certain securities markets and foreign currencies. The fund held written option contracts with market values ranging from $0.5 million to $1.5 million, as measured at each quarter end.
Swaps. Swap agreements are agreements between the fund and a counterparty to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals. Swap agreements are privately negotiated in the OTC market (OTC swaps) or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as a component of unrealized appreciation/depreciation of swap contracts. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.
Upfront payments made/received by the fund, if any, are amortized/accreted for financial reporting purposes, with the unamortized/unaccreted portion included in the Statement of assets and liabilities. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund.
Entering into swap agreements involves, to varying degrees, elements of credit, market and documentation risk that may provide outcomes that are in excess of the amounts recognized on the Statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for the swap, or that a counterparty may default on its obligation or delay payment under the swap terms. The counterparty may disagree or contest the terms of the swap. In addition to interest rate risk, market risks may also impact the swap. The fund may also suffer losses if it is unable to terminate or assign outstanding swaps or reduce its exposure through offsetting transactions.
Total Return Swaps. The fund may enter into total return swap contracts to obtain synthetic exposure to a specific reference asset or index without owning, taking physical custody of, or short selling the underlying assets. Total return swaps are commitments where one party pays a fixed or variable rate premium (the Buyer) in exchange for a market-linked return (the Seller). The Seller pays the total return of a specific reference asset or index and in return receives interest payments from the Buyer. To the extent the total return of the underlying asset or index exceeds or falls short of the offsetting interest rate obligation, the Buyer will receive or make a payment to the Seller. A fund may enter into total return swaps in which it may act as either the Buyer or the Seller. Total return swap contracts are subject to the risk associated with the investment in the underlying reference asset or index. The risk in the case of short total return swap contracts is unlimited based on the potential for unlimited increases in the market value of the underlying reference asset or index.
During the year ended October 31, 2020, the fund used total return swaps to to gain exposure to a security or market without investing directly in such security or market. The fund held total return swaps with total USD notional amounts ranging from $818.8 million to $984.9 million,as measured at each quarter end.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the fund at October 31, 2020 by risk category:
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value | ||||||||
Equity | Receivable/payable for futures variation margin | Futures1 | $103,696 | — |
129 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Risk | Statement of assets and liabilities location | Financial instruments location | Assets fair value | Liabilities derivatives fair value | ||||||||
Currency | Unrealized appreciation / depreciation on forward foreign currency contracts | Forward foreign currency contracts | $436,321 | (320,050) | ||||||||
Interest rate | Unaffiliated investments, at value2 | Purchased options | 144,442 | — | ||||||||
Currency | Unaffiliated investments, at value2 | Purchased options | 141,260 | — | ||||||||
Equity | Unaffiliated investments, at value2 | Purchased options | 4,148,150 | — | ||||||||
Currency | Written options, at value | Written options | — | (460) | ||||||||
Equity | Written options, at value | Written options | — | (1,055,658) | ||||||||
Equity | Swap contracts, at value | Total return swaps | 33,538,426 | (25,611,984) | ||||||||
$38,512,295 |
| $(26,988,152) |
1 | Reflects cumulative appreciation/depreciation on futures as disclosed in Fund’s investments. Only the year end variation margin is separately disclosed on the Statement of assets and liabilities. |
2 | Purchased options are included in Fund’s investments. |
For financial reporting purposes,the fund does not offset OTC derivative assets or liabilities that are subject to master netting arrangements,as defined by the ISDAs,in the Statement of assets and liabilities.In the event of default by the counterparty or a termination of the agreement,the ISDA allows an offset of amounts across the various transactions between the fund and the applicable counterparty.The tables below reflect the fund’s exposure to OTC derivative transactions and exposure to counterparties subject to an ISDA:
OTC Financial Instruments | Asset | Liability | ||||||
Forward foreign currency contracts | $436,321 | $(320,050) | ||||||
Purchased options | 1,697,037 | — | ||||||
Swap contracts | 33,538,426 | (25,611,984) | ||||||
Written options | — | (245,603) | ||||||
Totals | $35,671,784 | $(26,177,637) |
Counterparty | Total Market Value of OTC Derivatives | Collateral Posted by Counterparty 1 | Collateral Posted by Fund 1 | Net Exposure | ||||||||||||
BNP Paribas | $76,084 | — | — | $76,084 | ||||||||||||
Citibank, N.A. | 108,126 | $108,126 | — | — | ||||||||||||
Goldman Sachs & Company LLC | 72,833 | 72,833 | — | — | ||||||||||||
Goldman Sachs International | (544,637 | ) | — | $544,637 | — | |||||||||||
HSBC Bank USA, N.A. | (2,808 | ) | — | — | (2,808 | ) | ||||||||||
JPMorgan Chase Bank, N.A. | (237,884 | ) | — | 237,884 | — | |||||||||||
Morgan Stanley & Co. International PLC | 10,022,433 | 10,022,433 | — | — | ||||||||||||
Totals | $9,494,147 | $10,203,392 | $782,521 | $73,276 |
1 Reflects collateral posted by the counterparty or posted by the fund,excluding any excess collateral amounts.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 130 |
Table of Contents
|
Effect of derivative instruments on the Statement of operations
The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended October 31, 2020:
Statement of operations location - Net realized gain (loss) on: | ||||||||||||||||||||||||
Risk | Unaffiliated investments and foreign currency transactions1 | Futures contracts | Forward foreign currency contracts | Written options | Swap contracts | Total | ||||||||||||||||||
Interest rate | $(611,533 | ) | $11,450 | — | — | — | $(600,083 | ) | ||||||||||||||||
Currency | 1,164,344 | — | $537,459 | $(325,924 | ) | — | 1,375,879 | |||||||||||||||||
Equity | 10,981,268 | 268,046 | — | (115,184 | ) | $(45,893,558 | ) | (34,759,428 | ) | |||||||||||||||
Total | $11,534,079 | $279,496 | $537,459 | $(441,108 | ) | $(45,893,558 | ) | $(33,983,632 | ) |
1 | Realized gain/loss associated with purchased options is included in this caption on the Statement of operations. |
The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended October 31, 2020:
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||||||
Unaffiliated | ||||||||||||||||||||||||
Risk | investments and translation of assets and liabilities in foreign currencies1 | Futures contracts | Forward foreign currency contracts | Written options | Swap contracts | Total | ||||||||||||||||||
Interest rate | $20,345 | — | — | — | — | $20,345 | ||||||||||||||||||
Currency | (393,611) | — | $(15,685 | ) | $3,084 | — | (406,212 | ) | ||||||||||||||||
Equity | (2,588,140 | ) | $103,696 | — | 590,233 | $11,904,644 | 10,010,433 | |||||||||||||||||
Total | $(2,961,406 | ) | $103,696 | $(15,685 | ) | $593,317 | $11,904,644 | $9,624,566 |
1 | Change in unrealized appreciation/depreciation associated with purchased options is included in this caption on the Statement of operations. |
Note 4 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
131 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 1.500% of the first $250 million of the fund’s average daily net assets and (b) 1.450% of the fund’s average daily net assets in excess of $250 million. The Advisor has a subadvisory agreement with Wellington Management Company LLP. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $783 | |||
Class C | 389 | |||
Class I | 40,974 |
Class | Expense reduction | |||
Class R6 | $ 1,970 | |||
Class NAV | 7,397 | |||
Total | $ 51,513 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 1.46% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | |||
Class A | 0.30% | |||
Class C | 1.00% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $22,504 for the year ended October 31, 2020. Of this amount, $4,303 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $18,201 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 132 |
Table of Contents
|
providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, CDSCs received by the Distributor amounted to $509 for Class C shares. There were no CDSCs received by the Distributor for Class A shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $33,146 | $13,728 | ||||||
Class C | 54,688 | 6,799 | ||||||
Class I | — | 715,720 | ||||||
Class R6 | — | 3,502 | ||||||
Total | $87,834 | $739,749 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 6 — Fund share transactions
Transactions in fund shares for the years ended October 31, 2020 and 2019 were as follows:
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares | ||||||||||||||||
Sold | 529,535 | $6,017,625 | 758,504 | $8,251,737 | ||||||||||||
Distributions reinvested | 7,681 | 87,789 | 36,135 | 370,741 | ||||||||||||
Repurchased | (549,006 | ) | (6,169,288 | ) | (1,525,242 | ) | (16,338,187 | ) | ||||||||
Net decrease | (11,790 | ) | $(63,874) | (730,603 | ) | $(7,715,709) | ||||||||||
Class C shares | ||||||||||||||||
Sold | 101,451 | $1,129,721 | 73,035 | $769,935 | ||||||||||||
Distributions reinvested | 703 | 7,781 | 24,067 | 239,230 | ||||||||||||
Repurchased | (187,869 | ) | (2,000,730 | ) | (471,676 | ) | (4,894,596 | ) | ||||||||
Net decrease | (85,715 | ) | $(863,228) | (374,574 | ) | $(3,885,431) |
133 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class I shares | ||||||||||||||||
Sold | 23,042,439 | $263,374,171 | 19,770,705 | $216,982,492 | ||||||||||||
Distributions reinvested | 491,605 | 5,722,284 | 1,546,541 | 16,145,884 | ||||||||||||
Repurchased | (21,785,297 | ) | (247,857,080 | ) | (22,937,508 | ) | (249,609,059 | ) | ||||||||
Net increase (decrease) | 1,748,747 | $21,239,375 | (1,620,262 | ) | $(16,480,683) | |||||||||||
Class R6 shares | ||||||||||||||||
Sold | 1,144,283 | $13,811,144 | 125,178 | $1,397,683 | ||||||||||||
Distributions reinvested | 25,488 | 298,970 | 76,177 | 802,145 | ||||||||||||
Repurchased | (383,952 | ) | (4,472,152 | ) | (626,222 | ) | (7,038,333 | ) | ||||||||
Net increase (decrease) | 785,819 | $9,637,962 | (424,867 | ) | $(4,838,505) | |||||||||||
Class NAV shares | ||||||||||||||||
Sold | 2,060,474 | $24,629,626 | 1,349,204 | $14,883,002 | ||||||||||||
Distributions reinvested | 138,641 | 1,626,261 | 386,495 | 4,069,796 | ||||||||||||
Repurchased | (9,037,860 | ) | (103,538,801 | ) | (1,759,886 | ) | (19,320,226 | ) | ||||||||
Net decrease | (6,838,745 | ) | $(77,282,914) | (24,187 | ) | $(367,428) | ||||||||||
Total net decrease | (4,401,684 | ) | $(47,332,679) | (3,174,493 | ) | $(33,287,756) |
Affiliates of the fund owned 100% of shares of Class NAV on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 7 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $992,885,058 and $1,109,348,631, respectively, for the year ended October 31, 2020.
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2020, funds within the John Hancock group of funds complex held 8.1% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
Fund | Affiliated Concentration | |||
John Hancock Funds II Alternative Asset Allocation Fund | 8.1 | % |
Note 9 — Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 134 |
Table of Contents
|
Dividends and distributions | ||||||||||||||||||||||||||||||||||||
Affiliate | | Ending share amount | | | Beginning value | | | Cost of purchases | | | Proceeds from shares sold | | | Realized gain (loss) | | | Change in unrealized appreciation (depreciation) | | | Income distributions received | | | Capital gain distributions received | | | Ending value | | |||||||||
John Hancock Collateral Trust | — | — | $4,441,149 | $(4,441,087) | $(62 | ) | — | $822 | — | — |
Note 10 — LIBOR discontinuation risk
LIBOR (London Interbank Offered Rate) is a measure of the average interest rate at which major global banks can borrow from one another. Following allegations of rate manipulation and concerns regarding its thin liquidity, in July 2017, the U.K. Financial Conduct Authority, which regulates LIBOR, announced that it will stop encouraging banks to provide the quotations needed to sustain LIBOR after 2021. This event will likely cause LIBOR to cease to be published. Before then, it is expected that market participants will transition to the use of different reference or benchmark rates. However, although regulators have suggested alternative rates, there is currently no definitive information regarding the future utilization of LIBOR or of any replacement rate.
It is uncertain what impact the discontinuation of LIBOR will have on the use of LIBOR as a reference rate for securities in which the fund invests. It is expected that market participants will amend financial instruments referencing LIBOR to include fallback provisions and other measures that contemplate the discontinuation of LIBOR or other similar market disruption events, but neither the effect of the transition process nor the viability of such measures is known. In addition, there are obstacles to converting certain longer term securities and transactions to a new benchmark or benchmarks and the effectiveness of one alternative reference rate versus multiple alternative reference rates in new or existing financial instruments and products has not been determined. As market participants transition away from LIBOR, LIBOR’s usefulness may deteriorate, which could occur prior to the end of 2021. The transition process may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. LIBOR’s deterioration may adversely affect the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate.
Note 11 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
Note 12 — New accounting pronouncement
In March 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020- 04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the LIBOR and other IBOR-based reference rates as of the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 to the financial statements.
135 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Seaport Long/Short Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Seaport Long/Short Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statements of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the five years in the period ended October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 136 |
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
137 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Wellington Management Company LLP (the Subadvisor), for John Hancock Seaport Long/Short Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Trustees who are not parties to any agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from
1On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pan-demic, the Securities and Exchange Commission issued an exemptive order (the “Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 138 |
Table of Contents
|
their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
139 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund underperformed its benchmark index for the one-, three- and five-year periods ended December 31, 2019. The Board also noted that the fund outperformed its peer group median for the one-, three and five-year periods ended December 31, 2019. The Board took into account management’s discussion of the fund’s performance, including favorable performance relative to the peer group for the one-, three- and five-year periods. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are higher than the peer group median and net total expenses for the fund are lower than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 140 |
Table of Contents
|
past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduces management fees as assets increase. The Board noted that the fund has a voluntary fee waiver and/or expense reimbursement, which reduces certain expenses of the fund. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
141 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 142 |
Table of Contents
|
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third-party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally outperformed the historical performance of comparable funds; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
143 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees,concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 144 |
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth
| Trustee
| Number of John
| ||
Hassell H. McClellan, Born: 1945
| 2012
| 196
| ||
Trustee and Chairperson of the Board
| ||||
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. | ||||
Charles L. Bardelis,2 Born: 1941
| 2012
| 196
| ||
Trustee
| ||||
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988). | ||||
James R. Boyle, Born: 1959
| 2015
| 196
| ||
Trustee
| ||||
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||||
Peter S. Burgess,2 Born: 1942
| 2012
| 196
| ||
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005). | ||||
William H. Cunningham, Born: 1944
| 1986
| 196
| ||
Trustee
| ||||
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||||
Grace K. Fey, Born: 1946
| 2012
| 196
| ||
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). |
145 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee | ||
Deborah C. Jackson, Born: 1952
| 2008
| 196
| ||
Trustee
| ||||
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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). | ||||
James M. Oates,2 Born: 1946
| 2012
| 196
| ||
Trustee
| ||||
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex. | ||||
Steven R. Pruchansky, Born: 1944
| 1994
| 196
| ||
Trustee and Vice Chairperson of the Board
| ||||
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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
| 196
| ||
Trustee
| ||||
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 146 |
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee | ||
Gregory A. Russo, Born: 1949
| 2009
| 196
| ||
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 Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee | ||
Andrew G. Arnott, Born: 1971
| 2017
| 196
| ||
President and Non-Independent Trustee
| ||||
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). | ||||
Marianne Harrison, Born: 1963
| 2018
| 196
| ||
Non-Independent Trustee
| ||||
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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). |
147 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
|
Principal officers who are not Trustees
| ||
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Officer of the Trust since | |
Charles A. Rizzo, Born: 1957
| 2007
| |
Chief Financial Officer
| ||
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). | ||
Salvatore Schiavone, Born: 1965
| 2010
| |
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
| |
Chief Legal Officer and Secretary
| ||
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009). | ||
Trevor Swanberg, Born: 1979
| 2020
| |
Chief Compliance Officer
| ||
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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). |
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023. |
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the |
Trust and is available without charge, upon request, by calling 800-225-5291. |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
ANNUAL REPORT | JOHN HANCOCK SEAPORT LONG/SHORT FUND | 148 |
Table of Contents
|
Trustees | Investment advisor | |||
Hassell H. McClellan, Chairperson | John Hancock Investment Management LLC | |||
Steven R. Pruchansky, Vice Chairperson | ||||
Andrew G. Arnott† | Subadvisor | |||
Charles L. Bardelis* | Wellington Management Company LLP | |||
James R. Boyle | ||||
Peter S. Burgess* | Portfolio Managers | |||
William H. Cunningham | Steven C. Angeli, CFA | |||
Grace K. Fey | Jennifer N. Berg, CFA | |||
Marianne Harrison† | Robert L. Deresiewicz | |||
Deborah C. Jackson | Ann C. Gallo | |||
James M. Oates* | Bruce L. Glazer | |||
Frances G. Rathke1,* | Andrew R. Heiskell | |||
Gregory A. Russo | Jean M. Hynes, CFA3 | |||
Keith E. White | ||||
Officers | ||||
Andrew G. Arnott | Principal distributor | |||
President | John Hancock Investment Management Distributors LLC | |||
Charles A. Rizzo | ||||
Chief Financial Officer | Custodian | |||
Salvatore Schiavone | State Street Bank and Trust Company | |||
Treasurer | ||||
Christopher (Kit) Sechler | Transfer agent | |||
Secretary and Chief Legal Officer | John Hancock Signature Services, Inc. | |||
Trevor Swanberg2 | ||||
Chief Compliance Officer | Legal counsel | |||
K&L Gates LLP | ||||
* Member of the Audit Committee | Independent registered public accounting firm | |||
† Non-Independent Trustee | PricewaterhouseCoopers LLP | |||
1 Appointed as Independent Trustee effective as of September 15, 2020 | ||||
2 Effective July 31, 2020 | ||||
3 Effective July 1, 2021, Jean M. Hynes, CFA will no longer serve as a portfolio manager of the fund and Rebecca D. Sykes, CFA, will be added as a leader of the fund’s investment management team. |
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
149 | JOHN HANCOCK SEAPORT LONG/SHORT FUND | ANNUAL REPORT |
Table of Contents
Protect yourself by using eDelivery
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
| ||||||||
∎ | Added security: Password protection helps you safely retrieve documents online | |||||||
∎ | Save time: Receive instant email notification once statements are available
| |||||||
∎ | Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling | |||||||
SIGN UP FOR EDELIVERY TODAY!
|
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report
Table of Contents
Get your questions answered by using our shareholder resources
ONLINE
| ||||||
∎ | Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |||||
∎ | Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |||||
∎ | Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |||||
∎ | Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. | |||||
BY PHONE
| ||||||
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00 A.M. to 7:00 P.M., and Friday, 8:00 A.M. to 6:00 P.M., Eastern time. We’re here to help! |
Not part of the shareholder report
Table of Contents
John Hancock family of funds |
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes. |
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock Seaport Long/Short Fund.
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
437A 10/20
12/2020
Table of Contents
Table of Contents
Dear shareholders,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. The governments of many nations worked to shore up their economies, and equity markets began to rise from their first-quarter sell- off; this comeback gathered momentum for the remainder of the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain parts of the world have been reinstated and consumer spending remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views, which are subject to change at any time. Investing involves risks, including the potential loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. It is not possible to invest directly in an index. For more up-to-date information, please visit our website at jhinvestments.com.
Table of Contents
John Hancock
Disciplined Value International Fund
Table of contents | ||||||
2 | ||||||
4 | ||||||
6 | ||||||
8 | ||||||
10 | ||||||
14 | ||||||
18 | ||||||
25 | ||||||
36 | ||||||
37 | ||||||
38 | Continuation of investment advisory and subadvisory agreements | |||||
45 | ||||||
49 |
1 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks long-term capital growth.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The MSCI EAFE Index (Europe, Australasia, Far East) is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since inception returns for the Morningstar fund category average are not available.
1The fund is the successor to Robeco Boston Partners International Equity Fund (predecessor fund) and Class A shares were first offered on 9-29-14. Returns prior to this date are those of the predecessor fund’s institutional class shares, that have not been adjusted for class-specific expenses; otherwise, returns would vary.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 2 |
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
International equities posted negative returns for the period | ||||
The fund’s benchmark, the MSCI EAFE Index, returned a loss of 6.86%. | ||||
The fund also posted a loss and trailed the benchmark | ||||
Our value orientation was a headwind for performance at a time in which growth stocks were in favor. | ||||
Holdings in the industrials and healthcare sectors underperformed | ||||
While investments in the industrials and healthcare sectors negatively affected performance, the fund benefited from stock selection in materials and an overweight in information technology.
|
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
3 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
Manager’s discussion of fund performance
|
Can you describe the market environment during the 12 months ended October 31, 2020?
After beginning the period on a strong note, the world markets sold off sharply in February and March 2020 in reaction to the spread of COVID-19 and governments’ efforts to contain the virus by locking down large segments of their economies. Stocks subsequently staged an impressive rally off of their late March lows in response to the extensive economic stimulus programs enacted by global governments and central banks. Unlike the U.S. market, however, international stocks were unable to recapture their prepandemic highs.
The value style finished well behind growth, perpetuating a long-standing trend. Given the backdrop of slowing economic conditions worldwide, investors continued to gravitate to companies seen as having the most reliable growth characteristics. This environment proved challenging for the fund due to our emphasis on valuation as the cornerstone of our investment process.
What aspects of the fund’s positioning helped and hurt relative performance?
The fund’s holdings lagged the corresponding benchmark components by a wide margin in the industrials, healthcare, and financials sectors. Within industrials, the fund’s overweight allocation to small and midsize European companies hurt results
TOP 10 HOLDINGS AS OF 10/31/2020 (% of net assets) | TOP 10 COUNTRIES AS OF 10/31/2020 (% of net assets) | |||||||||||||||||||
Sony Corp. | 2.7 |
Japan | 21.3 | |||||||||||||||||
Hitachi, Ltd. | 2.6 | France | 13.9 | |||||||||||||||||
Samsung Electronics Company, Ltd. | 2.5 | United Kingdom | 12.3 | |||||||||||||||||
Novartis AG | 2.3 | Switzerland | 8.5 | |||||||||||||||||
Roche Holding AG | 2.2 | Germany | 7.2 | |||||||||||||||||
BNP Paribas SA | 2.0 | South Korea | 6.5 | |||||||||||||||||
Sanofi | 1.9 | Netherlands | 4.4 | |||||||||||||||||
KDDI Corp. | 1.8 | Canada | 3.5 | |||||||||||||||||
Kinross Gold Corp. | 1.8 | China | 1.9 | |||||||||||||||||
Capgemini SE | 1.7 | Hong Kong | 1.7 | |||||||||||||||||
TOTAL | 21.5 | TOTAL | 81.2 | |||||||||||||||||
Cash and cash equivalents are not included.
| Cash and cash equivalents are not included. |
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 4 |
Table of Contents
|
as heightened macroeconomic uncertainty prompted investors to rotate to the perceived safety of large-cap stocks. The leading individual detractors in the sector include Leonardo SpA and Eiffage SA.
In healthcare, the fund was hurt by not having investments in a number of biotechnology, equipment and supplies, and life sciences stocks that benefited | MANAGED BY
Christopher K. Hart, CFA Joseph F. Feeney, Jr., CFA Joshua M. Jones, CFA Joshua C. White, CFA
| |
from the pandemic. German pharmaceutical and crop science company Bayer AG, which remained under pressure from the ongoing Roundup litigation, also detracted from results. We sold the position prior to period end. A zero weighting in Nestle SA, which benefited from rising investor demand for defensive companies, was the main detractor from performance in consumer staples.
On the positive side, the fund’s positioning in the information technology and materials sectors aided relative performance. Several of the fund’s technology holdings, including STMicroelectronics NV, Capgemini SE, and Samsung Electronics Company, Ltd., posted solid gains. The sector was a bright spot in the pandemic as work-from-home and shelter-in-place restrictions led to higher demand for many technology companies’ products and services. In the materials sector, positions in Barrick Gold Corp. and Yamana Gold, Inc. delivered strong performance as world central banks expanded their balance sheets in an effort to offset the economic impact of the virus. We sold the fund’s position in Barrick Gold prior to period end. |
The views expressed in this report are exclusively those of Christopher K. Hart, CFA, Boston Partners, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk. Boston Partners is an indirect, wholly owned subsidiary of Orix Corporation of Japan.
5 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020
Average annual total returns (%) | Cumulative total returns (%) | |||||||||||||||||||||
with maximum sales charge | with maximum sales charge | |||||||||||||||||||||
1-year | 5-year | Since inception (12-30-11) | 5-year | Since inception | ||||||||||||||||||
Class A 1 | -15.94 | -1.47 | 3.52 | -7.14 | 35.74 | |||||||||||||||||
Class C1 | -13.16 | -1.17 | 3.61 | -5.72 | 36.81 | |||||||||||||||||
Class I1,2 | -11.36 | -0.17 | 4.33 | -0.82 | 45.49 | |||||||||||||||||
Class R21,2 | -11.61 | -0.55 | 4.07 | -2.74 | 42.31 | |||||||||||||||||
Class R41,2 | -11.44 | -0.29 | 4.24 | -1.46 | 44.40 | |||||||||||||||||
Class R61,2 | -11.28 | -0.08 | 4.40 | -0.38 | 46.38 | |||||||||||||||||
Class NAV1,2 | -11.28 | -0.06 | 4.40 | -0.29 | 46.39 | |||||||||||||||||
Index† | -6.86 | 2.85 | 5.70 | 15.07 | 63.19 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5.00% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | Class NAV | ||||||||
Gross (%) | 1.23 | 1.98 | 0.98 | 1.37 | 1.22 | 0.87 | 0.86 | |||||||
Net (%) | 1.22 | 1.97 | 0.97 | 1.36 | 1.11 | 0.86 | 0.85 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the MSCI EAFE Index. |
See the following page for footnotes.
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 6 |
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Disciplined Value International Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI EAFE Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||
Class C1,3 | 12-30-11 | 13,681 | 13,681 | 16,319 | ||||
Class I1,2 | 12-30-11 | 14,549 | 14,549 | 16,319 | ||||
Class R21,2 | 12-30-11 | 14,231 | 14,231 | 16,319 | ||||
Class R41,2 | 12-30-11 | 14,440 | 14,440 | 16,319 | ||||
Class R61,2 | 12-30-11 | 14,638 | 14,638 | 16,319 | ||||
Class NAV1,2 | 12-30-11 | 14,639 | 14,639 | 16,319 |
The MSCI EAFE Index (Europe, Australasia, Far East) is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would have resulted in lower returns.
Footnotes related to performance pages
1 | The fund is the successor to Robeco Boston Partners International Equity Fund (predecessor fund) and Class A, Class C, Class I, Class R2, Class R4, and Class R6 shares were first offered on 9-29-14. Class NAV shares were first offered on 4- 13- 15. Returns prior to this date are those of the predecessor fund’s institutional class shares, that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
2 | For certain types of investors, as described in the fund’s prospectuses. |
3 | The contingent deferred sales charge is not applicable. |
7 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 8 |
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account
|
Ending value on
|
Expenses
|
Annualized
| |||||||||||||||
Class A | Actual expenses/actual returns | $1,000.00 | $1,067.70 | $ 6.29 | 1.21% | |||||||||||||
Hypothetical example | 1,000.00 | 1,019.10 | 6.14 | 1.21% | ||||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,062.70 | 10.21 | 1.97% | |||||||||||||
Hypothetical example | 1,000.00 | 1,015.20 | 9.98 | 1.97% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,068.60 | 5.10 | 0.98% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.20 | 4.98 | 0.98% | ||||||||||||||
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,067.60 | 6.81 | 1.31% | |||||||||||||
Hypothetical example | 1,000.00 | 1,018.60 | 6.65 | 1.31% | ||||||||||||||
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,068.70 | 5.67 | 1.09% | |||||||||||||
Hypothetical example | 1,000.00 | 1,019.70 | 5.53 | 1.09% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,068.60 | 4.42 | 0.85% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.90 | 4.32 | 0.85% | ||||||||||||||
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,069.70 | 4.37 | 0.84% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.90 | 4.27 | 0.84% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
9 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
AS OF 10-31-20 | ||||||||||||
Shares | Value | |||||||||||
Common stocks 96.9% |
$
|
1,627,634,051
|
| |||||||||
(Cost $1,699,869,626) | ||||||||||||
Austria 0.5% | 9,145,984 | |||||||||||
ams AG (A) | 427,149 | 9,145,984 | ||||||||||
Bermuda 1.2% | 20,743,458 | |||||||||||
Everest Re Group, Ltd. | 105,254 | 20,743,458 | ||||||||||
Brazil 0.4% | 6,617,907 | |||||||||||
Petroleo Brasileiro SA, ADR | 998,176 | 6,617,907 | ||||||||||
Canada 3.5% | 58,297,590 | |||||||||||
Kinross Gold Corp. | 3,759,356 | 29,962,067 | ||||||||||
Yamana Gold, Inc. | 5,096,317 | 28,335,523 | ||||||||||
China 1.9% | 32,120,877 | |||||||||||
Alibaba Group Holding, Ltd. (A) | 519,600 | 19,689,656 | ||||||||||
Topsports International Holdings, Ltd. (B) | 9,066,000 | 12,431,221 | ||||||||||
Denmark 0.8% | 13,889,117 | |||||||||||
Novo Nordisk A/S, B Shares | 217,815 | 13,889,117 | ||||||||||
Finland 1.5% | 24,880,378 | |||||||||||
Sampo OYJ, A Shares | 659,321 | 24,880,378 | ||||||||||
France 13.9% | 233,553,566 | |||||||||||
AXA SA | 1,289,161 | 20,702,951 | ||||||||||
BNP Paribas SA (A) | 967,398 | 33,737,678 | ||||||||||
Capgemini SE | 247,360 | 28,562,037 | ||||||||||
Cie de Saint-Gobain (A) | 336,401 | 13,103,960 | ||||||||||
Eiffage SA (A) | 302,236 | 21,935,437 | ||||||||||
Imerys SA | 182,666 | 5,460,040 | ||||||||||
Peugeot SA (A) | 1,325,797 | 23,816,809 | ||||||||||
Rexel SA (A) | 918,210 | 9,667,493 | ||||||||||
Sanofi | 343,757 | 31,038,881 | ||||||||||
TOTAL SE (C) | 894,651 | 27,104,903 | ||||||||||
Vinci SA | 233,252 | 18,423,377 | ||||||||||
Germany 7.2% | 120,752,078 | |||||||||||
Allianz SE | 153,729 | 27,079,980 | ||||||||||
Brenntag AG | 175,261 | 11,202,018 | ||||||||||
Continental AG | 122,754 | 13,042,685 | ||||||||||
Deutsche Post AG | 375,755 | 16,660,161 | ||||||||||
Deutsche Telekom AG | 1,026,480 | 15,601,156 | ||||||||||
Heidelberg Cement AG | 138,544 | 7,923,778 | ||||||||||
Rheinmetall AG | 114,404 | 8,361,047 | ||||||||||
Siemens AG | 177,992 | 20,881,253 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 10 |
Table of Contents
|
Shares | Value | |||||||||||
Greece 0.7% | $11,254,218 | |||||||||||
Hellenic Telecommunications Organization SA | 848,628 | 11,254,218 | ||||||||||
Hong Kong 1.7% | 28,402,079 | |||||||||||
China Overseas Land & Investment, Ltd. | 3,375,500 | 8,478,548 | ||||||||||
CK Asset Holdings, Ltd. | 1,516,000 | 7,039,533 | ||||||||||
WH Group, Ltd. (B) | 16,358,000 | 12,883,998 | ||||||||||
Hungary 0.9% | 14,899,991 | |||||||||||
OTP Bank NYRT (A) | 477,647 | 14,899,991 | ||||||||||
India 0.7% | 12,073,428 | |||||||||||
HDFC Bank, Ltd., ADR (A) | 210,192 | 12,073,428 | ||||||||||
Indonesia 0.8% | 13,361,742 | |||||||||||
Bank Rakyat Indonesia Persero Tbk PT | 59,025,600 | 13,361,742 | ||||||||||
Ireland 0.9% | 14,582,349 | |||||||||||
CRH PLC | 415,549 | 14,582,349 | ||||||||||
Isle of Man 0.3% | 5,818,466 | |||||||||||
GVC Holdings PLC (A) | 464,471 | 5,818,466 | ||||||||||
Italy 1.6% | 26,234,489 | |||||||||||
Enel SpA | 1,943,416 | 15,451,086 | ||||||||||
Leonardo SpA (C) | 2,261,561 | 10,783,403 | ||||||||||
Japan 21.3% | 358,105,748 | |||||||||||
Fuji Corp. | 764,600 | 15,371,499 | ||||||||||
Fuji Electric Company, Ltd. | 303,100 | 9,190,891 | ||||||||||
Hitachi, Ltd. | 1,313,300 | 44,263,851 | ||||||||||
KDDI Corp. | 1,136,700 | 30,753,409 | ||||||||||
Kinden Corp. | 434,800 | 6,817,603 | ||||||||||
Kurita Water Industries, Ltd. | 139,400 | 4,147,671 | ||||||||||
Kyudenko Corp. | 365,400 | 9,972,224 | ||||||||||
NEC Corp. | 410,800 | 20,692,075 | ||||||||||
Nintendo Company, Ltd. | 19,400 | 10,489,363 | ||||||||||
Nippon Telegraph & Telephone Corp. | 565,100 | 11,887,357 | ||||||||||
Persol Holdings Company, Ltd. | 443,600 | 6,718,855 | ||||||||||
Rengo Company, Ltd. | 1,065,700 | 8,199,439 | ||||||||||
Sankyu, Inc. | 181,900 | 6,515,957 | ||||||||||
Sanwa Holdings Corp. | 1,639,700 | 18,703,887 | ||||||||||
Sony Corp. | 3,260,528 | 45,551,445 | ||||||||||
Sumitomo Mitsui Financial Group, Inc. | 614,100 | 16,999,457 | ||||||||||
Taiheiyo Cement Corp. | 208,700 | 4,898,621 | ||||||||||
Taisei Corp. | 392,000 | 12,198,228 | ||||||||||
Taiyo Yuden Company, Ltd. | 576,500 | 21,322,955 | ||||||||||
TechnoPro Holdings, Inc. | 178,000 | 11,071,150 | ||||||||||
Tokyo Electron, Ltd. | 52,700 | 14,145,253 |
11 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||||||
Japan (continued) | ||||||||||||
TS Tech Company, Ltd. | 327,300 | $9,059,262 | ||||||||||
Zenkoku Hosho Company, Ltd. | 485,200 | 19,135,296 | ||||||||||
Macau 0.6% | 10,240,672 | |||||||||||
Wynn Macau, Ltd. (A)(C) | 7,412,000 | 10,240,672 | ||||||||||
Netherlands 4.4% | 73,405,314 | |||||||||||
Aalberts NV | 349,194 | 11,715,109 | ||||||||||
ING Groep NV (A) | 1,479,744 | 10,135,799 | ||||||||||
Koninklijke Ahold Delhaize NV | 353,469 | 9,690,593 | ||||||||||
NN Group NV | 433,868 | 15,098,959 | ||||||||||
NXP Semiconductors NV | 66,303 | 8,958,861 | ||||||||||
Royal Dutch Shell PLC, A Shares | 928,987 | 11,686,227 | ||||||||||
Signify NV (A)(B) | 172,411 | 6,119,766 | ||||||||||
Norway 0.7% | 12,019,979 | |||||||||||
DNB ASA | 679,823 | 9,180,866 | ||||||||||
Yara International ASA (C) | 81,128 | 2,839,113 | ||||||||||
Singapore 0.5% | 9,095,411 | |||||||||||
DBS Group Holdings, Ltd. | 610,600 | 9,095,411 | ||||||||||
South Korea 6.5% | 109,870,966 | |||||||||||
GS Retail Company, Ltd. | 186,008 | 5,282,061 | ||||||||||
Hana Financial Group, Inc. | 723,740 | 19,550,013 | ||||||||||
KB Financial Group, Inc. | 553,090 | 19,783,921 | ||||||||||
KT Corp., ADR | 1,384,726 | 13,321,064 | ||||||||||
POSCO | 53,944 | 9,958,287 | ||||||||||
Samsung Electronics Company, Ltd. | 835,076 | 41,975,620 | ||||||||||
Spain 0.9% | 14,695,858 | |||||||||||
Amadeus IT Group SA | 99,251 | 4,728,913 | ||||||||||
Applus Services SA (A) | 1,271,543 | 9,966,945 | ||||||||||
Sweden 1.3% | 21,001,522 | |||||||||||
Volvo AB, B Shares (A) | 1,080,481 | 21,001,522 | ||||||||||
Switzerland 8.5% | 142,754,714 | |||||||||||
Glencore PLC (A) | 5,747,882 | 11,594,880 | ||||||||||
Novartis AG | 500,593 | 39,007,502 | ||||||||||
Roche Holding AG | 114,558 | 36,811,098 | ||||||||||
STMicroelectronics NV | 899,820 | 27,448,216 | ||||||||||
UBS Group AG | 2,395,901 | 27,893,018 | ||||||||||
Taiwan 0.5% | 8,521,936 | |||||||||||
Simplo Technology Company, Ltd. | 764,000 | 8,521,936 | ||||||||||
United Kingdom 12.3% | 206,177,948 | |||||||||||
BAE Systems PLC | 2,392,028 | 12,296,009 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 12 |
Table of Contents
|
Shares | Value | |||||||||||||||
United Kingdom (continued) | ||||||||||||||||
Coca-Cola European Partners PLC | 438,541 | $15,660,299 | ||||||||||||||
Direct Line Insurance Group PLC | 3,541,134 | 12,101,547 | ||||||||||||||
GlaxoSmithKline PLC | 769,036 | 12,841,791 | ||||||||||||||
Imperial Brands PLC | 1,082,248 | 17,129,565 | ||||||||||||||
Inchcape PLC (A) | 1,956,179 | 12,548,390 | ||||||||||||||
Melrose Industries PLC (A) | 5,692,233 | 8,830,215 | ||||||||||||||
Nomad Foods, Ltd. (A) | 853,166 | 20,689,276 | ||||||||||||||
Persimmon PLC | 605,236 | 18,324,510 | ||||||||||||||
Redrow PLC (A) | 1,538,733 | 8,296,297 | ||||||||||||||
Rio Tinto, Ltd. | 151,158 | 9,833,396 | ||||||||||||||
Smith & Nephew PLC | 454,645 | 7,894,547 | ||||||||||||||
Tesco PLC | 10,239,183 | 27,252,177 | ||||||||||||||
Unilever PLC | 201,681 | 11,493,614 | ||||||||||||||
WH Smith PLC | 849,880 | 10,986,315 | ||||||||||||||
United States 0.9% | 15,116,266 | |||||||||||||||
Applied Materials, Inc. | 255,213 | 15,116,266 | ||||||||||||||
Yield (%) | Shares | Value | ||||||||||||||
Short-term investments 4.0% |
|
$67,737,800
|
| |||||||||||||
(Cost $67,740,746) | ||||||||||||||||
Short-term funds 4.0% | 67,737,800 | |||||||||||||||
Fidelity Institutional Money Market Government Portfolio, Institutional Class | 0.0100(D) | 44,022,865 | 44,022,865 | |||||||||||||
John Hancock Collateral Trust (E) | 0.2508(D) | 2,369,456 | 23,714,935 | |||||||||||||
Total investments (Cost $1,767,610,372) 100.9% |
|
$1,695,371,851
|
| |||||||||||||
Other assets and liabilities, net (0.9%) |
|
(14,936,714)
|
| |||||||||||||
Total net assets 100.0% |
|
$1,680,435,137
|
|
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
Security Abbreviations and Legend
ADR | American Depositary Receipt | |
(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. | |
(C) | All or a portion of this security is on loan as of 10-31-20. | |
(D) | The rate shown is the annualized seven-day yield as of 10-31-20. | |
(E) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $1,800,115,273. Net unrealized depreciation aggregated to $104,743,422, of which $114,357,379 related to gross unrealized appreciation and $219,100,801 related to gross unrealized depreciation.
13 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 |
| |||
|
| |||
Assets | ||||
Unaffiliated investments, at value (Cost $1,743,892,491) including $39,028,149 of securities loaned | $1,671,656,916 | |||
Affiliated investments, at value (Cost $23,717,881) | 23,714,935 | |||
Total investments, at value (Cost $1,767,610,372) | 1,695,371,851 | |||
Cash | 11,030 | |||
Foreign currency, at value (Cost $150,749) | 150,919 | |||
Dividends and interest receivable | 8,750,841 | |||
Receivable for fund shares sold | 278,540 | |||
Receivable for investments sold | 14,785,821 | |||
Receivable for securities lending income | 12,474 | |||
Other assets | 124,541 | |||
Total assets | 1,719,486,017 | |||
Liabilities | ||||
Payable for investments purchased | 13,708,298 | |||
Payable for fund shares repurchased | 1,136,940 | |||
Payable upon return of securities loaned | 23,720,498 | |||
Payable to affiliates | ||||
Accounting and legal services fees | 64,049 | |||
Transfer agent fees | 17,200 | |||
Distribution and service fees | 132 | |||
Other liabilities and accrued expenses | 403,763 | |||
Total liabilities | 39,050,880 | |||
Net assets | $1,680,435,137 | |||
Net assets consist of | ||||
Paid-in capital | $2,252,107,689 | |||
Total distributable earnings (loss) | (571,672,552 | ) | ||
Net assets | $1,680,435,137 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 14 |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 (continued) |
| |||
|
| |||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class A ($91,365,702 ÷ 8,647,445 shares)1 | $ | 10.57 | ||
Class C ($6,175,976 ÷ 587,406 shares)1 | $ | 10.51 | ||
Class I ($41,670,107 ÷ 3,934,861 shares) | $ | 10.59 | ||
Class R2 ($650,372 ÷ 61,487 shares) | $ | 10.58 | ||
Class R4 ($129,312 ÷ 12,225 shares) | $ | 10.58 | ||
Class R6 ($286,592,309 ÷ 27,051,282 shares) | $ | 10.59 | ||
Class NAV ($1,253,851,359 ÷ 118,374,402 shares) | $ | 10.59 | ||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95%)2 | $ | 11.13 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
15 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20 |
| |||
| ||||
Investment income | ||||
Dividends | $46,583,800 | |||
Interest | 303,052 | |||
Securities lending | 256,074 | |||
Less foreign taxes withheld | (4,321,323 | ) | ||
Total investment income | 42,821,603 | |||
Expenses | ||||
Investment management fees | 12,574,516 | |||
Distribution and service fees | 342,482 | |||
Accounting and legal services fees | 309,106 | |||
Transfer agent fees | 241,600 | |||
Trustees’ fees | 26,707 | |||
Custodian fees | 460,567 | |||
State registration fees | 106,145 | |||
Printing and postage | 48,056 | |||
Professional fees | 114,175 | |||
Other | 118,715 | |||
Total expenses | 14,342,069 | |||
Less expense reductions | (114,180 | ) | ||
Net expenses | 14,227,889 | |||
Net investment income | 28,593,714 | |||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | (110,437,507 | ) | ||
Affiliated investments | 38,908 | |||
(110,398,599 | ) | |||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (119,000,534 | ) | ||
Affiliated investments | (3,798 | ) | ||
(119,004,332 | ) | |||
Net realized and unrealized loss | (229,402,931 | ) | ||
Decrease in net assets from operations | $ | (200,809,217 | ) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 16 |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS |
| |||||||
|
| |||||||
Year ended 10-31-20 | Year ended 10-31-19 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income | $28,593,714 | $42,467,083 | ||||||
Net realized loss | (110,398,599 | ) | (147,878,276 | ) | ||||
Change in net unrealized appreciation (depreciation) | (119,004,332 | ) | 134,532,189 | |||||
Increase (decrease) in net assets resulting from operations | (200,809,217 | ) | 29,120,996 | |||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (2,524,421 | ) | (4,574,049 | ) | ||||
Class C | (151,746 | ) | (410,055 | ) | ||||
Class I | (1,921,066 | ) | (12,087,536 | ) | ||||
Class R2 | (20,292 | ) | (74,864 | ) | ||||
Class R4 | (2,059 | ) | (5,758 | ) | ||||
Class R6 | (4,774,446 | ) | (9,067,346 | ) | ||||
Class NAV | (33,040,204 | ) | (33,628,195 | ) | ||||
Total distributions | (42,434,234 | ) | (59,847,803 | ) | ||||
From fund share transactions | ||||||||
Fund share transactions | 5,100,183 | 279,225,098 | ||||||
Issued in reorganization | 212,735,649 | — | ||||||
From fund share transactions | 217,835,832 | 279,225,098 | ||||||
Total increase (decrease) | (25,407,619 | ) | 248,498,291 | |||||
Net assets | ||||||||
Beginning of year | 1,705,842,756 | 1,457,344,465 | ||||||
End of year | $ | 1,680,435,137 | $ | 1,705,842,756 |
17 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS A SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $12.21 | $12.42 | $14.28 | $11.83 | $12.04 | |||||||||||||||
Net investment income1 | 0.16 | 0.25 | 0.20 | 0.12 | 0.29 | ² | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.53 | ) | — | 3 | (1.71 | ) | 2.47 | (0.39 | ) | |||||||||||
Total from investment operations | (1.37 | ) | 0.25 | (1.51 | ) | 2.59 | (0.10 | ) | ||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.27 | ) | (0.14 | ) | (0.11 | ) | (0.14 | ) | (0.11 | ) | ||||||||||
From net realized gain | — | (0.32 | ) | (0.24 | ) | — | — | |||||||||||||
Total distributions | (0.27 | ) | (0.46 | ) | (0.35 | ) | (0.14 | ) | (0.11 | ) | ||||||||||
Net asset value, end of period | $10.57 | $12.21 | $12.42 | $14.28 | $11.83 | |||||||||||||||
Total return (%)4,5 | (11.53 | ) | 2.34 | (10.87 | ) | 22.14 | (0.86 | ) | ||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $91 | $114 | $124 | $129 | $36 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.23 | 1.28 | 1.31 | 1.36 | 1.53 | |||||||||||||||
Expenses including reductions | 1.23 | 1.27 | 1.29 | 1.34 | 1.37 | |||||||||||||||
Net investment income | 1.42 | 2.13 | 1.41 | 0.97 | 2.52 | ² | ||||||||||||||
Portfolio turnover (%) | 99 | 6 | 96 | 95 | 84 | 6 | 63 |
1 | Based on average daily shares outstanding. |
2 | Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflect a special dividend received by the fund, which amounted to $0.14 and 1.17%, respectively. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Does not reflect the effect of sales charges, if any. |
6 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 18 |
Table of Contents
|
CLASS C SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $12.16 | $12.35 | $14.21 | $11.78 | $11.98 | |||||||||||||||
Net investment income1 | 0.07 | 0.17 | 0.10 | 0.04 | 0.20 | 2 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.54 | ) | — | 3 | (1.71 | ) | 2.45 | (0.38 | ) | |||||||||||
Total from investment operations | (1.47 | ) | 0.17 | (1.61 | ) | 2.49 | (0.18 | ) | ||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.18 | ) | (0.04 | ) | (0.01 | ) | (0.06 | ) | (0.02 | ) | ||||||||||
From net realized gain | — | (0.32 | ) | (0.24 | ) | — | — | |||||||||||||
Total distributions | (0.18 | ) | (0.36 | ) | (0.25 | ) | (0.06 | ) | (0.02 | ) | ||||||||||
Net asset value, end of period | $10.51 | $12.16 | $12.35 | $14.21 | $11.78 | |||||||||||||||
Total return (%)4,5 | (12.30 | ) | 1.67 | (11.52 | ) | 21.22 | (1.42 | ) | ||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $6 | $11 | $14 | $18 | $7 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.98 | 2.00 | 2.01 | 2.06 | 2.23 | |||||||||||||||
Expenses including reductions | 1.98 | 1.99 | 1.99 | 2.04 | 2.08 | |||||||||||||||
Net investment income | 0.63 | 1.44 | 0.71 | 0.32 | 1.71 | 2 | ||||||||||||||
Portfolio turnover (%) | 99 | 6 | 96 | 95 | 84 | 6 | 63 |
1 | Based on average daily shares outstanding. |
2 | Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflect a special dividend received by the fund, which amounted to $0.14 and 1.17%, respectively. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Does not reflect the effect of sales charges, if any. |
6 | Excludes merger activity. |
19 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS I SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $12.24 | $12.45 | $14.32 | $11.87 | $12.07 | |||||||||||||||
Net investment income1 | 0.19 | 0.27 | 0.24 | 0.18 | 0.25 | 2 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.54 | ) | 0.02 | 3 | (1.72 | ) | 2.44 | (0.30 | ) | |||||||||||
Total from investment operations | (1.35 | ) | 0.29 | (1.48 | ) | 2.62 | (0.05 | ) | ||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.30 | ) | (0.18 | ) | (0.15 | ) | (0.17 | ) | (0.15 | ) | ||||||||||
From net realized gain | — | (0.32 | ) | (0.24 | ) | — | — | |||||||||||||
Total distributions | (0.30 | ) | (0.50 | ) | (0.39 | ) | (0.17 | ) | (0.15 | ) | ||||||||||
Net asset value, end of period | $10.59 | $12.24 | $12.45 | $14.32 | $11.87 | |||||||||||||||
Total return (%)4 | (11.36 | ) | 2.73 | (10.65 | ) | 22.45 | (0.45 | ) | ||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $42 | $88 | $303 | $357 | $201 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 0.98 | 1.01 | 1.02 | 1.05 | 1.21 | |||||||||||||||
Expenses including reductions | 0.98 | 0.98 | 0.98 | 1.03 | 1.08 | |||||||||||||||
Net investment income | 1.62 | 2.22 | 1.75 | 1.38 | 2.13 | 2 | ||||||||||||||
Portfolio turnover (%) | 99 | 5 | 96 | 95 | 84 | 5 | 63 |
1 | Based on average daily shares outstanding. |
2 | Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflect a special dividend received by the fund, which amounted to $0.14 and 1.17%, respectively. |
3 | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of the sales and repurchases of shares in relation to fluctuating market values of the investments of the fund. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 20 |
Table of Contents
|
CLASS R2 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $12.22 | $12.42 | $14.29 | $11.85 | $12.05 | |||||||||||||||
Net investment income1 | 0.15 | 0.24 | 0.20 | 0.12 | 0.30 | 2 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.53 | ) | 0.01 | 3 | (1.73 | ) | 2.45 | (0.40 | ) | |||||||||||
Total from investment operations | | (1.38 | ) | 0.25 | (1.53 | ) | 2.57 | (0.10 | ) | |||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.26 | ) | (0.13 | ) | (0.10 | ) | (0.13 | ) | (0.10 | ) | ||||||||||
From net realized gain | — | (0.32 | ) | (0.24 | ) | — | — | |||||||||||||
Total distributions | (0.26 | ) | (0.45 | ) | (0.34 | ) | (0.13 | ) | (0.10 | ) | ||||||||||
Net asset value, end of period | $10.58 | $12.22 | $12.42 | $14.29 | $11.85 | |||||||||||||||
Total return (%)4 | (11.61 | ) | 2.32 | (11.01 | ) | 21.92 | (0.87 | ) | ||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1 | $1 | $3 | $18 | $8 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.32 | 1.35 | 1.41 | 1.43 | 1.61 | |||||||||||||||
Expenses including reductions | 1.32 | 1.34 | 1.39 | 1.42 | 1.61 | |||||||||||||||
Net investment income | 1.30 | 1.98 | 1.39 | 0.94 | 2.57 | 2 | ||||||||||||||
Portfolio turnover (%) | 99 | 5 | 96 | 95 | 84 | 5 | 63 |
1 | Based on average daily shares outstanding. |
2 | Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflect a special dividend received by the fund, which amounted to $0.14 and 1.17%, respectively. |
3 | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of the sales and repurchases of shares in relation to fluctuating market values of the investments of the fund. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Excludes merger activity. |
21 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS R4 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $12.22 | $12.44 | $14.30 | $11.86 | $12.06 | |||||||||||||||
Net investment income1 | 0.18 | 0.22 | 0.20 | 0.16 | 0.33 | 2 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.54 | ) | 0.04 | 3 | (1.69 | ) | 2.45 | (0.40 | ) | |||||||||||
Total from investment operations | (1.36 | ) | 0.26 | (1.49 | ) | 2.61 | (0.07 | ) | ||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.28 | ) | (0.16 | ) | (0.13 | ) | (0.17 | ) | (0.13 | ) | ||||||||||
From net realized gain | — | (0.32 | ) | (0.24 | ) | — | — | |||||||||||||
Total distributions | (0.28 | ) | (0.48 | ) | (0.37 | ) | (0.17 | ) | (0.13 | ) | ||||||||||
Net asset value, end of period | $10.58 | $12.22 | $12.44 | $14.30 | $11.86 | |||||||||||||||
Total return (%)4 | (11.44 | ) | 2.45 | (10.70 | ) | 22.30 | (0.57 | ) | ||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $— | 5 | $— | 5 | $— | 5 | $— | 5 | $— | 5 | ||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.21 | 1.25 | 1.25 | 1.26 | 1.37 | |||||||||||||||
Expenses including reductions | 1.11 | 1.14 | 1.13 | 1.14 | 1.37 | |||||||||||||||
Net investment income | 1.68 | 1.84 | 1.42 | 1.22 | 2.84 | 2 | ||||||||||||||
Portfolio turnover (%) | 99 | 6 | 96 | 95 | 84 | 6 | 63 |
1 | Based on average daily shares outstanding. |
2 | Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflect a special dividend received by the fund, which amounted to $0.14 and 1.17%, respectively. |
3 | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of the sales and repurchases of shares in relation to fluctuating market values of the investments of the fund. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Less than $500,000. |
6 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 22 |
Table of Contents
|
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $12.24 | $12.46 | $14.32 | $11.87 | $12.08 | |||||||||||||||
Net investment income1 | 0.20 | 0.31 | 0.26 | 0.18 | 0.34 | 2 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.54 | ) | (0.01 | ) | (1.71 | ) | 2.46 | (0.39 | ) | |||||||||||
Total from investment operations | (1.34 | ) | 0.30 | (1.45 | ) | 2.64 | (0.05 | ) | ||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.31 | ) | (0.20 | ) | (0.17 | ) | (0.19 | ) | (0.16 | ) | ||||||||||
From net realized gain | — | (0.32 | ) | (0.24 | ) | — | — | |||||||||||||
Total distributions | (0.31 | ) | (0.52 | ) | (0.41 | ) | (0.19 | ) | (0.16 | ) | ||||||||||
Net asset value, end of period | $10.59 | $12.24 | $12.46 | $14.32 | $11.87 | |||||||||||||||
Total return (%)3 | (11.28 | ) | 2.77 | (10.50 | ) | 22.59 | (0.41 | ) | ||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $287 | $186 | $219 | $140 | $46 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 0.87 | 0.89 | 0.92 | 0.95 | 1.12 | |||||||||||||||
Expenses including reductions | 0.86 | 0.88 | 0.88 | 0.92 | 0.95 | |||||||||||||||
Net investment income | 1.86 | 2.57 | 1.90 | 1.41 | 2.92 | 2 | ||||||||||||||
Portfolio turnover (%) | 99 | 4 | 96 | 95 | 84 | 4 | 63 |
1 | Based on average daily shares outstanding. |
2 | Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflect a special dividend received by the fund, which amounted to $0.14 and 1.17%, respectively. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Excludes merger activity. |
23 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS NAV SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $12.24 | $12.46 | $14.32 | $11.87 | $12.07 | |||||||||||||||
Net investment income1 | 0.20 | 0.32 | 0.23 | 0.17 | 0.34 | 2 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.54 | ) | (0.02 | ) | (1.69 | ) | 2.47 | (0.38 | ) | |||||||||||
Total from investment operations | (1.34 | ) | 0.30 | (1.46 | ) | 2.64 | (0.04 | ) | ||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.31 | ) | (0.20 | ) | (0.16 | ) | (0.19 | ) | (0.16 | ) | ||||||||||
From net realized gain | — | (0.32 | ) | (0.24 | ) | — | — | |||||||||||||
Total distributions | (0.31 | ) | (0.52 | ) | (0.40 | ) | (0.19 | ) | (0.16 | ) | ||||||||||
Net asset value, end of period | $10.59 | $12.24 | $12.46 | $14.32 | $11.87 | |||||||||||||||
Total return (%)3 | (11.28 | ) | 2.77 | (10.43 | ) | 22.50 | (0.33 | ) | ||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1,254 | $1,305 | $794 | $327 | $91 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 0.86 | 0.88 | 0.90 | 0.94 | 1.10 | |||||||||||||||
Expenses including reductions | 0.85 | 0.87 | 0.88 | 0.92 | 0.95 | |||||||||||||||
Net investment income | 1.82 | 2.73 | 1.71 | 1.34 | 2.90 | 2 | ||||||||||||||
Portfolio turnover (%) | 99 | 4 | 96 | 95 | 84 | 4 | 63 |
1 | Based on average daily shares outstanding. |
2 | Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflect a special dividend received by the fund, which amounted to $0.14 and 1.17%, respectively. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Excludes merger activity. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 24 |
Table of Contents
|
Note 1 — Organization
John Hancock Disciplined Value International Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital growth.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R2 and Class R4 shares are available only to certain retirement and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply).
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the
25 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund’s Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2020, by major security category or type:
Total | Level 1 | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |||||||||||||
Investments in securities: | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | ||||||||||||||||
Austria | $9,145,984 | — | $9,145,984 | — | ||||||||||||
Bermuda | 20,743,458 | $ | 20,743,458 | — | — | |||||||||||
Brazil | 6,617,907 | 6,617,907 | — | — | ||||||||||||
Canada | 58,297,590 | 58,297,590 | — | — | ||||||||||||
China | 32,120,877 | — | 32,120,877 | — | ||||||||||||
Denmark | 13,889,117 | — | 13,889,117 | — | ||||||||||||
Finland | 24,880,378 | — | 24,880,378 | — | ||||||||||||
France | 233,553,566 | — | 233,553,566 | — | ||||||||||||
Germany | 120,752,078 | — | 120,752,078 | — | ||||||||||||
Greece | 11,254,218 | — | 11,254,218 | — | ||||||||||||
Hong Kong | 28,402,079 | — | 28,402,079 | — | ||||||||||||
Hungary | 14,899,991 | — | 14,899,991 | — | ||||||||||||
India | 12,073,428 | 12,073,428 | — | — | ||||||||||||
Indonesia | 13,361,742 | — | 13,361,742 | — | ||||||||||||
Ireland | 14,582,349 | — | 14,582,349 | — | ||||||||||||
Isle of Man | 5,818,466 | — | 5,818,466 | — | ||||||||||||
Italy | 26,234,489 | — | 26,234,489 | — | ||||||||||||
Japan | 358,105,748 | — | 358,105,748 | — | ||||||||||||
Macau | 10,240,672 | — | 10,240,672 | — |
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 26 |
Table of Contents
|
Total | Level 1 | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |||||||||||||
Netherlands | $73,405,314 | $8,958,861 | $64,446,453 | — | ||||||||||||
Norway | 12,019,979 | — | 12,019,979 | — | ||||||||||||
Singapore | 9,095,411 | — | 9,095,411 | — | ||||||||||||
South Korea | 109,870,966 | 13,321,064 | 96,549,902 | — | ||||||||||||
Spain | 14,695,858 | — | 14,695,858 | — | ||||||||||||
Sweden | 21,001,522 | — | 21,001,522 | — | ||||||||||||
Switzerland | 142,754,714 | — | 142,754,714 | — | ||||||||||||
Taiwan | 8,521,936 | — | 8,521,936 | — | ||||||||||||
United Kingdom | 206,177,948 | 36,349,575 | 169,828,373 | — | ||||||||||||
United States | 15,116,266 | 15,116,266 | — | — | ||||||||||||
Short-term investments | 67,737,800 | 67,737,800 | — | — | ||||||||||||
Total investments in securities | $ | 1,695,371,851 | $ | 239,215,949 | $ | 1,456,155,902 | — |
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex- date, except for dividends of certain foreign securities where the dividend may not be known until after the ex- date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non- cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund will invest its cash collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of October 31, 2020, the fund loaned securities valued at $39,028,149 and received $23,720,498 of cash collateral.
27 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
In addition, non- cash collateral of approximately $18,145,328 in the form of U.S. Treasuries was pledged to the fund. This non-cash collateral is not reflected in the fund’s net assets, however could be sold by the securities lending agent in the event of default by the borrower.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $9,005.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 28 |
Table of Contents
|
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2020, the fund has a short-term capital loss carryforward of $304,160,617 and a long-term capital loss carryforward of $190,129,749 available to offset future net realized capital gains. These carryforwards do not expire.
Due to prior year merger activity, $386,490,827 of the total capital loss carryforward as of October 31, 2020, are limited to $2,610,689 each fiscal year due to IRC Section 382 Limitation. Any unused portion of this limitation will carryforward to the following fiscal years.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2020 and 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||||
Ordinary income | $42,434,234 | $21,862,196 | ||||||
Long-term capital gains | — | 37,985,607 | ||||||
Total | $42,434,234 | $59,847,803 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $27,081,147 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to foreign currency transactions, investments in passive foreign investment companies and wash sale loss deferrals.
Note 3 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
29 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
Note 4 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis based on the following: If aggregate average daily net assets are less than $300 million, then the management fee rate is 0.825% of all aggregate average daily net assets. If aggregate average daily net assets equal or exceed $300 million but are less than $2.5 billion, then the management fee rate is 0.775% of all aggregate average daily net assets. If aggregate average daily net assets exceed $2.5 billion, then the following fee schedule shall apply: a) 0.775% of the first $2.5 billion of aggregate average daily net assets; b) 0.750% of the next $500 million of aggregate average daily net assets; and c) 0.725% of the excess over $3 billion of aggregate average daily net assets. Aggregate net assets include the aggregate net assets of the fund, JHF II International Value Fund, JHVIT Disciplined Value International Trust (formerly known as JHVIT International Value Trust), and Global Disciplined Value (Ex-U.S.) Fund, a sub-fund of Manulife Investment Management I PLC. Prior to February 12, 2020, the fund had an investment management agreement with the Advisor under which the fund paid a daily management fee to the Advisor equivalent on an annual basis to the sum of: a) 0.825% of the first $500 million of the fund’s aggregate average daily net assets; b) 0.800% of the next $1 billion of the fund’s aggregate average daily net assets; c) 0.775% of the next $1 billion of the fund’s aggregate average daily net assets; d) 0.750% of the next $500 million of the fund’s aggregate average daily net assets; and e) 0.725% of the aggregate average daily net assets in excess of $3 billion. Aggregate net assets included the net assets of the fund and Manulife Global Disciplined Value (ex-U.S.) Fund, a sub-fund of Manulife Investment Management I PLC. The Advisor has a subadvisory agreement with Boston Partners Global Investors, Inc. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor contractually agrees to reduce its management fee or, if necessary, make payment to the fund, in an amount equal to the amount by which expenses of the fund exceed 0.88% of average daily net assets excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly, and short dividend expense. This expense limitation expires on February 28, 2021, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
Additionally, the Advisor has contractually agreed to waive and/or reimburse expenses for Class I and Class R6 shares of the fund to the extent they exceed 0.98% and 0.88% of the respective class’s average daily net assets. This expense limitation excludes taxes, brokerage commissions, interest expense, acquired fund fees and expenses paid indirectly, short dividend expense, borrowing costs, prime brokerage fees, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business. This waiver expires on February 28, 2021, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at the time.
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 30 |
Table of Contents
|
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |
Class A | $7,329 | |
Class C | 579 | |
Class I | 4,392 | |
Class R2 | 61 |
Class | Expense reduction | |
Class R4 | $8 | |
Class R6 | 14,636 | |
Class NAV | 87,069 | |
Total | $114,074 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 0.78% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for certain classes as detailed below, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | Service fee | ||
Class A | 0.25% | — | ||
Class C | 1.00% | — | ||
Class R2 | 0.25% | 0.25% | ||
Class R4 | 0.25% | 0.10% |
The fund’s Distributor has contractually agreed to waive 0.10% of Rule 12b-1 fees for Class R4 shares. The current waiver agreement expires on February 28, 2021, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $106 for Class R4 shares for the year ended October 31, 2020.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $91,946 for the year ended October 31, 2020. Of this amount, $15,499 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $76,447 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, CDSCs received by the Distributor amounted to $1,112 and $308 for Class A and Class C shares, respectively.
31 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services),an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes:Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $257,221 | $127,907 | ||||||
Class C | 81,069 | 10,099 | ||||||
Class I | — | 77,149 | ||||||
Class R2 | 3,827 | 110 | ||||||
Class R4 | 365 | 13 | ||||||
Class R6 | — | 26,322 | ||||||
Total | $342,482 | $241,600 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) | ||||||||||||
Lender | $18,065,542 | 5 | 0.641% | $1,609 |
Note 5 — Fund share transactions
Transactions in fund shares for the years ended October 31, 2020 and 2019 were as follows:
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares | ||||||||||||||||
Sold | 1,517,988 | $16,653,118 | 2,007,527 | $23,605,125 | ||||||||||||
Distributions reinvested | 202,693 | 2,503,255 | 401,952 | 4,534,023 | ||||||||||||
Repurchased | (2,448,110 | ) | (26,818,602 | ) | (3,033,741 | ) | (35,727,652 | ) | ||||||||
Net decrease | (727,429 | ) | $(7,662,229) | (624,262 | ) | $(7,588,504) |
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 32 |
Table of Contents
|
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class C shares | ||||||||||||||||
Sold | 39,382 | $428,140 | 195,740 | $2,229,904 | ||||||||||||
Distributions reinvested | 12,212 | 151,067 | 35,948 | 406,213 | ||||||||||||
Repurchased | (333,010 | ) | (3,708,294 | ) | (525,329 | ) | (6,195,117 | ) | ||||||||
Net decrease | (281,416 | ) | $(3,129,087) | (293,641 | ) | $(3,559,000) | ||||||||||
Class I shares | ||||||||||||||||
Sold | 1,888,735 | $19,154,631 | 2,769,735 | $32,892,402 | ||||||||||||
Distributions reinvested | 155,250 | 1,917,338 | 1,071,192 | 12,072,330 | ||||||||||||
Repurchased | (5,318,696 | ) | (57,912,423 | ) | (20,991,097 | ) | (239,520,422 | ) | ||||||||
Net decrease | (3,274,711 | ) | $(36,840,454) | (17,150,170 | ) | $(194,555,690) | ||||||||||
Class R2 shares | ||||||||||||||||
Sold | 16,813 | $188,455 | 28,703 | $338,849 | ||||||||||||
Distributions reinvested | 1,389 | 17,186 | 3,904 | 44,075 | ||||||||||||
Repurchased | (63,488 | ) | (729,549 | ) | (135,090 | ) | (1,620,944 | ) | ||||||||
Net decrease | (45,286 | ) | $(523,908) | (102,483 | ) | $(1,238,020) | ||||||||||
Class R4 shares | ||||||||||||||||
Sold | 6,082 | $63,621 | 1,294 | $15,390 | ||||||||||||
Distributions reinvested | 167 | 2,059 | 510 | 5,758 | ||||||||||||
Repurchased | (387 | ) | (4,568 | ) | (9,829 | ) | (114,996 | ) | ||||||||
Net increase (decrease) | 5,862 | $61,112 | (8,025 | ) | $(93,848) | |||||||||||
Class R6 shares | ||||||||||||||||
Sold | 7,725,997 | $88,518,617 | 4,428,683 | $52,550,822 | ||||||||||||
Issued in reorganization (Note 9) | 8,101,537 | 90,399,381 | — | — | ||||||||||||
Distributions reinvested | 386,854 | 4,773,778 | 804,540 | 9,067,165 | ||||||||||||
Repurchased | (4,383,489 | ) | (48,804,538 | ) | (7,571,611 | ) | (90,260,425 | ) | ||||||||
Net increase (decrease) | 11,830,899 | $134,887,238 | (2,338,388 | ) | $(28,642,438) | |||||||||||
Class NAV shares | ||||||||||||||||
Sold | 13,228,617 | $144,298,555 | 50,935,318 | $612,113,831 | ||||||||||||
Issued in reorganization (Note 9) | 10,965,962 | 122,336,268 | — | — | ||||||||||||
Distributions reinvested | 2,677,488 | 33,040,204 | 2,986,518 | 33,628,195 | ||||||||||||
Repurchased | (15,111,145 | ) | (168,631,867 | ) | (11,040,555 | ) | (130,839,428 | ) | ||||||||
Net increase | 11,760,922 | $131,043,160 | 42,881,281 | $514,902,598 | ||||||||||||
Total net increase | 19,268,841 | $217,835,832 | 22,364,312 | $279,225,098 |
Affiliates of the fund owned 84% of shares of Class NAV on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
33 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $1,538,099,987 and $1,558,260,120, respectively, for the year ended October 31,2020.
Note 7 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2020, funds within the John Hancock group of funds complex held 61.3% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
Portfolio | Affiliated Concentration | |
JHF II Multimanager Lifestyle Growth Portfolio | 22.4% | |
JHF II Multimanager Lifestyle Balanced Portfolio | 15.6% | |
JHF II Multimanager Lifestyle Aggressive Portfolio | 9.4% |
Note 8 — Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
Dividends and distributions | ||||||||||||||||||||||||||||||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain(loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value | |||||||||||||||||||||||||||
John Hancock Collateral Trust* | 2,369,456 | $ | 15,987,539 | $ | 298,844,943 | $ | (291,152,657 | ) | $ | 38,908 | $ | (3,798 | ) | $ | 256,074 | — | $ | 23,714,935 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
Note 9 — Reorganization
On October 2, 2020, the shareholders of John Hancock Funds II (JHF II) International Value Fund (the Acquired Fund) voted to approve an Agreement and Plan of Reorganization (the Agreement) which provided for an exchange of shares of Disciplined Value International Fund (the Acquiring Fund) with a value equal to the net assets transferred. The Agreement provided for (a) the acquisition of all the assets, subject to all of the liabilities, of the Acquired Fund in exchange for shares of the Acquiring Fund with a value equal to the net assets transferred; (b) the liquidation of the Acquired Fund; and (c) the distribution to the Acquired Fund’s shareholders of such Acquiring Fund’s shares. The reorganization was intended to achieve a more consistent long-term performance record and stronger prospects for growth and achieve potential opportunities for economies of scale. As a result of the reorganization, the Acquiring Fund is the legal and accounting survivor.
The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized by the Acquired Fund or their shareholders. Thus, the investments were transferred to the Acquiring Fund at the Acquired Fund’s identified cost. All distributable amounts of net income and realized gains from the Acquired Fund were distributed prior to the reorganization. In addition, the Acquired Fund and Acquiring Fund will bear a pro-rata portion of the costs that are incurred in connection with the reorganization. The effective time of the reorganization occurred immediately after the close of regularly scheduled trading on the New York Stock Exchange (NYSE) on October 16, 2020. The following outlines the reorganization:
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 34 |
Table of Contents
|
Acquiring Fund | Acquired Fund | Net Asset Value of the Acquired Fund | Appreciation of the Acquired Fund’s Investments | Shares Redeemed by the Acquired Fund | Shares Issued by the Acquiring Fund | Acquiring Fund Net Assets Prior to Combination | Acquiring Fund Total Net Assets After Combination | |||||||
Disciplined Value International Fund | JHF II International Value Fund | $212,735,649 | $1,158,500 | 17,328,885 | 19,067,499 | $1,559,290,766 | $1,772,026,415 | |||||||
Because the combined fund has been managed as a single integrated fund since the reorganization was completed, it is not practicable to separate the amounts of net investment income and gains attributable to the Acquired Fund that have been included in the Acquiring Fund’s Statement of operations at October 31, 2020. See Note 5 for capital shares issued in connection with the above referenced reorganization.
Assuming the acquisition had been completed on November 1, 2019, the beginning of the reporting period, the Acquiring Fund’s pro forma results of operations for the year ended October 31, 2020 are as follows:
Net investment income | $32,787,043 | |
Net realized and unrealized gain (loss) | (250,969,144) | |
Increase (decrease) in net assets from operations | ($218,182,101) |
Note 10 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
35 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Disciplined Value International Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Disciplined Value International Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the Fund ) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statements of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the five years in the period ended October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian, transfer agents and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 36 |
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Income derived from foreign sources was $46,386,231. The fund intends to pass through foreign tax credits of $3,767,467.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A -3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
37 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Boston Partners Global Investors, Inc. (the Subadvisor), for John Hancock Disciplined Value International Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
1On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the “Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the“1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 38 |
Table of Contents
|
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
39 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund underperformed its benchmark index for the one-, three- and five-year periods ended December 31, 2019. The Board also noted that the fund outperformed the peer group median for the five-year period and underperformed the peer group median for the one- and three-year periods ended December 31, 2019. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to the peer group median for the five-year period. The Board took into account management’s discussion of the factors that contributed to the Trust’s performance for the benchmark index for the one-, three- and five-year periods and to the peer group median for the one- and three-year periods including the impact of past and current market conditions on the Fund’s strategy and management’s outlook for the Fund. The Board concluded that the fund’s performance is being monitored and reasonably addressed, where appropriate.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are higher than the peer group median.
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 40 |
Table of Contents
|
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board also noted that the fund’s distributor, an affiliate of the Advisor, has agreed to waive a portion of its Rule 12b-1 fee for a share class of the fund. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
41 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 42 |
Table of Contents
|
operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third-party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
43 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
(2) | the performance of the fund is being monitored and reasonably addressed, where appropriate; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 44 |
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees | ||||||||
Name, year of birth | | Trustee of the Trust since |
1 | | Number of John Hancock funds overseen by Trustee |
| ||
Position(s) held with Trust | ||||||||
Principal occupation(s) and other directorships during past 5 years |
Hassell H. McClellan, Born: 1945 | 2012 | 196 |
Trustee and Chairperson of the Board
Director/ Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 |
Trustee
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015 | 196 |
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014- 2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 |
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 |
Trustee
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 |
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).
45 | �� | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
Independent Trustees (continued) | ||||||||
Name, year of birth | | Trustee of the Trust since |
1 | | Number of John Hancock funds overseen by Trustee |
| ||
Position(s) held with Trust | ||||||||
Principal occupation(s) and other directorships during past 5 years |
Deborah C. Jackson, Born: 1952 | 2008 | 196 |
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946 | 2012 | 196 |
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000- 2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994 | 196 |
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000- 2014); 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 | 196 |
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high- end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001- 2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989- 2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982- 1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 46 |
Table of Contents
|
Independent Trustees (continued) | ||||||||
Name, year of birth | | Trustee of the Trust since |
1 | | Number of John Hancock funds overseen by Trustee |
| ||
Position(s) held with Trust | ||||||||
Principal occupation(s) and other directorships during past 5 years |
Gregory A. Russo, Born: 1949 | 2009 | 196 |
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 | | Trustee of the Trust since |
1 | | Number of John Hancock funds overseen by Trustee |
| ||
Position(s) held with Trust | ||||||||
Principal occupation(s) and other directorships during past 5 years |
Andrew G. Arnott, Born: 1971 | 2017 | 196 |
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
47 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
|
Principal officers who are not Trustees | ||||
Name, year of birth | | Officer of the Trust since |
| |
Position(s) held with Trust | ||||
Principal occupation(s) during past 5 years |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
Salvatore Schiavone, Born: 1965 | 2010 |
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 |
Chief Legal Officer and Secretary
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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).
The | business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023. |
The | Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291. |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
ANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | 48 |
Table of Contents
|
Trustees | Investment advisor | |||
Hassell H. McClellan,Chairperson | John Hancock Investment Management LLC | |||
Steven R. Pruchansky,Vice Chairperson | ||||
Andrew G. Arnott† | Subadvisor | |||
Charles L. Bardelis* | Boston Partners Global Investors, Inc. | |||
James R. Boyle | ||||
Peter S. Burgess* | Portfolio Managers | |||
William H. Cunningham | Joseph F. Feeney,Jr., CFA | |||
Grace K. Fey | Christopher K. Hart, CFA | |||
Marianne Harrison† | Joshua M. Jones, CFA | |||
Deborah C. Jackson | Joshua C. White, CFA | |||
James M. Oates* | ||||
Frances G. Rathke1,* | Principal distributor | |||
Gregory A. Russo | John Hancock Investment Management | |||
Distributors LLC | ||||
Officers | ||||
Andrew G. Arnott | Custodian | |||
President | Citibank, N.A. | |||
Charles A. Rizzo | ||||
Chief Financial Officer | Transfer agent | |||
Salvatore Schiavone | John Hancock Signature Services, Inc. | |||
Treasurer | ||||
Christopher (Kit) Sechler | Legal counsel | |||
Secretary and Chief Legal Officer | K&L Gates LLP | |||
Trevor Swanberg2 | ||||
Chief Compliance Officer | Independent registered public accounting firm | |||
PricewaterhouseCoopers LLP | ||||
* Member of the Audit Committee | ||||
† Non-Independent Trustee | ||||
1 Appointed as Independent Trustee effective as of September 15, 2020 | ||||
2 Effective July 31, 2020 |
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings,and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
49 | JOHN HANCOCK DISCIPLINED VALUE INTERNATIONAL FUND | ANNUAL REPORT |
Table of Contents
Protect yourself by using eDelivery
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
| ||||||
∎ | Added security: Password protection helps you safely retrieve documents online | |||||
∎ | Save time: Receive instant email notification once statements are available
| |||||
∎ | Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling | |||||
SIGN UP FOR EDELIVERY TODAY!
|
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report
Table of Contents
Get your questions answered by using our shareholder resources
ONLINE
| ||||||
∎ | Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |||||
∎ | Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |||||
∎ | Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |||||
∎ | Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. | |||||
BY PHONE
| ||||||
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00A.M. to 7:00P.M., and Friday, 8:00A.M. to 6:00P.M., Eastern time. We’re here to help!
|
Not part of the shareholder report
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and
Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock Disciplined Value International Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399312 | 455A 10/20 12/2020 |
Table of Contents
Table of Contents
Dear shareholders,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. The governments of many nations worked to shore up their economies, and equity markets began to rise from their first-quarter sell-off; this comeback gathered momentum for the remainder of the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain parts of the world have been reinstated and consumer spending remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
John Hancock
Emerging Markets Equity Fund
Table of contents | ||||||||
2 | ||||||||
5 | ||||||||
7 | ||||||||
9 | ||||||||
11 | ||||||||
14 | ||||||||
17 | ||||||||
24 | ||||||||
33 | ||||||||
34 | ||||||||
35 | Continuation of investment advisory and subadvisory agreements | |||||||
42 | ||||||||
46 | More information | |||||||
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 1 |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks long-term capital growth.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The MSCI Emerging Markets Index is an unmanaged index designed to measure the performance of developing markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
2 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Recovery in the face of a pandemic lifted emerging-market equities | ||
Most emerging-market equities posted positive returns despite the economic shock from the coronavirus pandemic, as aggressive monetary and fiscal policy responses and selected countries’ success in stemming the virus’s spread provided positive catalysts. | ||
The fund outpaced its benchmark index | ||
The fund outperformed its benchmark, the MSCI Emerging Markets Index, by a wide margin, owing in part to the overall positive impact from our stock selection in the communication services, financials, and consumer discretionary sectors. | ||
Mixed impact in information technology | ||
In information technology, relative performance was aided by the fund’s modest overweight, although stock picking in the sector had a modest negative impact. |
PORTFOLIO COMPOSITION AS OF 10/31/2020 (% of net assets)
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 3 |
Table of Contents
|
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
4 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
Manager’s discussion of fund performance
|
What were the main drivers of emerging-market equity performance during the 12 months ended October 31, 2020?
Emerging-market stocks posted positive returns, measured by the fund’s benchmark, the MSCI Emerging Markets Index, as they recovered from a sharp decline in March triggered by the coronavirus pandemic and its devastating economic impact. By early summer, the benchmark had made up all the ground lost in the pandemic-driven sell-off. In response to the coronavirus’s rapid spread and resulting economic restrictions, key central banks provided a positive catalyst by acting forcefully to unblock markets with liquidity injections while embracing accommodative policies designed to stabilize the global economy. Indicators showed that recoveries began to take hold in selected emerging markets, such as China, South Korea, and Taiwan. Stages of infection and the success of public health and economic policy responses varied widely across emerging markets; generally, however, most saw improvements in addressing the crisis and its economic impact, given the gradual lifting of coronavirus-related restrictions and mostly favorable news on vaccine development. Toward the end of the period, the market’s positive momentum slowed somewhat amid a growing realization that the hoped-for V-shaped economic recovery would fall short of returning things to where they were prior to the pandemic.
TOP 10 HOLDINGS AS OF 10/31/2020 (% of net assets) | TOP 10 COUNTRIES AS OF 10/31/2020 (% of net assets) | |||||||||||||||||||
Tencent Holdings, Ltd. | 5.6 |
China | 34.8 | |||||||||||||||||
Samsung Electronics Company, Ltd. | 5.2 | South Korea | 12.7 | |||||||||||||||||
Taiwan Semiconductor Manufacturing Company, Ltd. | 5.0 | Taiwan | 11.3 | |||||||||||||||||
Alibaba Group Holding, Ltd. | 3.0 | India | 9.7 | |||||||||||||||||
Naspers, Ltd., N Shares | 2.8 | Hong Kong | 8.4 | |||||||||||||||||
Reliance Industries, Ltd. | 2.7 | Russia | 5.0 | |||||||||||||||||
MediaTek, Inc. | 2.7 | Brazil | 4.2 | |||||||||||||||||
LG Chem, Ltd. | 2.2 | South Africa | 2.8 | |||||||||||||||||
Meituan, Class B | 2.1 | United Kingdom | 2.0 | |||||||||||||||||
HDFC Bank, Ltd. | 2.1 | Singapore | 2.0 | |||||||||||||||||
TOTAL | 33.4 | TOTAL | 92.9 | |||||||||||||||||
Cash and cash equivalents are not included.
| Cash and cash equivalents are not included. |
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 5 |
Table of Contents
|
How did the fund perform?
The fund outperformed the benchmark, owing in part to the overall positive impact from stock selection in sectors such as communication services, financials, and consumer discretionary. In the information technology sector, relative performance was aided by a modest overweight. Across all other sectors, the overall effect of | MANAGED BY Kathryn Langridge Philip Ehrmann
| |||
security selection was positive. From a geographic perspective, selection in China significantly added to relative performance, offsetting a negative impact from the fund’s modest underweight in the country, which outperformed relative to the benchmark. |
What were the key drivers of relative performance?
The positions that had the most positive impact on relative performance were two Chinese companies, Ping An Healthcare and Technology Company, Ltd. and Kingdee International Software Group Company, Ltd. Other notable contributors were semiconductor designer MediaTek, Inc. (Taiwan), internet search engine provider NAVER Corp. (South Korea), and China Tourism Group Duty Free Corp., Ltd., one of China’s leading duty-free domestic airport retailers.
The fund’s modest underweight in Alibaba Group Holding Ltd. was a significant detractor from relative performance, as shares of the Chinese e-commerce giant outperformed the fund’s benchmark—of which Alibaba is the largest component—by a wide margin. While we’ve maintained a positive view of Alibaba, we seek to adhere to an internal rule to limit individual positions such as Alibaba to no more than 5% of overall exposure as a risk diversification measure. Other positions that significantly weighed on relative performance were payment and credit card processing company Network International Holdings PLC (United Arab Emirates) and energy company LUKOIL PJSC (Russia).
The views expressed in this report are exclusively those of Katherine Langridge and Philip Ehrmann, Manulife Investment Management (US) LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
6 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | |||||||||||||||||||||||||||
1-year | 5-year | Since inception (6-16-15) | 5-year | Since inception (6-16-15) | ||||||||||||||||||||||||
Class A | 14.96 | 8.89 | 6.10 | 53.07 | 37.52 | |||||||||||||||||||||||
Class C | 19.26 | 9.24 | 6.39 | 55.53 | 39.51 | |||||||||||||||||||||||
Class I1 | 21.51 | 10.31 | 7.43 | 63.34 | 47.00 | |||||||||||||||||||||||
Class R21 | 21.15 | 10.11 | 7.22 | 61.82 | 45.48 | |||||||||||||||||||||||
Class R41 | 21.47 | 10.27 | 7.37 | 63.06 | 46.59 | |||||||||||||||||||||||
Class R61 | 21.61 | 10.44 | 7.55 | 64.33 | 47.90 | |||||||||||||||||||||||
Class NAV1 | 21.62 | 10.44 | 7.55 | 64.33 | 47.89 | |||||||||||||||||||||||
Index† | 8.25 | 7.92 | 4.93 | 46.36 | 29.53 |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | Class NAV | ||||||||||||
Gross (%) | 1.43 | 2.13 | 1.13 | 1.53 | 1.38 | 1.03 | 1.02 | |||||||||||
Net (%) | 1.29 | 1.99 | 0.99 | 1.39 | 1.14 | 0.89 | 0.88 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the MSCI Emerging Markets Index. |
See the following page for footnotes. |
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 7 |
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Emerging Markets Equity Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI Emerging Markets Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||||
Class C2 | 6-16-15 | 13,951 | 13,951 | 12,953 | ||||||||||||
Class I1 | 6-16-15 | 14,700 | 14,700 | 12,953 | ||||||||||||
Class R21 | 6-16-15 | 14,548 | 14,548 | 12,953 | ||||||||||||
Class R41 | 6-16-15 | 14,659 | 14,659 | 12,953 | ||||||||||||
Class R61 | 6-16-15 | 14,790 | 14,790 | 12,953 | ||||||||||||
Class NAV1 | 6-16-15 | 14,789 | 14,789 | 12,953 |
The MSCI Emerging Markets Index is an unmanaged index designed to measure the performance of developing markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | For certain types of investors, as described in the fund’s prospectuses. |
2 | The contingent deferred sales charge is not applicable. |
8 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020,by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 9 |
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account
|
Ending
|
Expenses paid during
|
Annualized
| |||||||||||||||
Class A | Actual expenses/actual returns | $1,000.00 | $1,322.50 | $8.29 | 1.42% | |||||||||||||
Hypothetical example | 1,000.00 | 1,018.00 | 7.20 | 1.42% | ||||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,318.80 | 12.30 | 2.11% | |||||||||||||
Hypothetical example | 1,000.00 | 1,014.50 | 10.68 | 2.11% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,325.20 | 6.43 | 1.10% | |||||||||||||
Hypothetical example | 1,000.00 | 1,019.60 | 5.58 | 1.10% | ||||||||||||||
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,322.80 | 8.23 | 1.41% | |||||||||||||
Hypothetical example | 1,000.00 | 1,018.00 | 7.15 | 1.41% | ||||||||||||||
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,325.50 | 6.78 | 1.16% | |||||||||||||
Hypothetical example | 1,000.00 | 1,019.30 | 5.89 | 1.16% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,326.20 | 5.91 | 1.01% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.10 | 5.13 | 1.01% | ||||||||||||||
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,326.20 | 5.85 | 1.00% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.10 | 5.08 | 1.00% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
10 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
AS OF 10-31-20 | ||||||||
Shares | Value | |||||||
Common stocks 89.5% | $ | 1,650,022,616 | ||||||
(Cost $1,162,230,512) | ||||||||
Argentina 1.3% | 24,357,485 | |||||||
MercadoLibre, Inc. (A) | 20,063 | 24,357,485 | ||||||
Brazil 2.1% | 39,341,082 | |||||||
Magazine Luiza SA | 4,988,000 | 21,410,859 | ||||||
Pagseguro Digital, Ltd., Class A (A) | 489,763 | 17,930,223 | ||||||
China 34.8% | 641,718,360 | |||||||
Alibaba Group Holding, Ltd. (A) | 1,470,208 | 55,711,873 | ||||||
Alibaba Group Holding, Ltd., ADR (A) | 125,403 | 38,209,040 | ||||||
Centre Testing International Group Company, Ltd., Class A | 3,357,843 | 13,540,265 | ||||||
China Conch Venture Holdings, Ltd. | 3,955,000 | 17,610,846 | ||||||
China Merchants Bank Company, Ltd., Class A | 3,108,173 | 18,496,312 | ||||||
China Tourism Group Duty Free Corp., Ltd., Class A | 852,616 | 25,417,284 | ||||||
Glodon Company, Ltd., Class A | 1,832,096 | 19,505,965 | ||||||
Hangzhou Tigermed Consulting Company, Ltd., A Shares | 1,087,661 | 20,202,372 | ||||||
JD.com, Inc. (A) | 599,534 | 24,454,104 | ||||||
JD.com, Inc., ADR (A) | 205,255 | 16,732,388 | ||||||
Kingdee International Software Group Company, Ltd. (A) | 9,381,000 | 24,768,252 | ||||||
Li Ning Company, Ltd. | 3,709,000 | 19,331,087 | ||||||
Lufax Holding, Ltd., ADR (A) | 2,354,522 | 30,255,608 | ||||||
Meituan, Class B (A) | 1,042,700 | 38,871,009 | ||||||
NARI Technology Company, Ltd., Class A | 4,517,767 | 14,039,407 | ||||||
Ping An Bank Company, Ltd., Class A | 12,855,567 | 34,115,448 | ||||||
Ping An Healthcare and Technology Company, Ltd. (A)(B) | 1,701,300 | 21,953,013 | ||||||
Ping An Insurance Group Company of China, Ltd., H Shares | 3,103,500 | 32,089,177 | ||||||
Proya Cosmetics Company, Ltd., Class A | 313,675 | 8,111,689 | ||||||
Shenzhen Mindray Bio-Medical Electronics Company, Ltd., Class A | 352,852 | 20,425,184 | ||||||
TAL Education Group, ADR (A) | 312,283 | 20,754,328 | ||||||
Tencent Holdings, Ltd. | 1,355,600 | 103,575,502 | ||||||
Wuxi Biologics Cayman, Inc. (A)(B) | 838,500 | 23,548,207 | ||||||
Hong Kong 8.4% | 154,199,781 | |||||||
AIA Group, Ltd. | 3,347,000 | 31,853,989 | ||||||
Alibaba Health Information Technology, Ltd. (A) | 9,936,000 | 26,056,477 | ||||||
China Resources Beer Holdings Company, Ltd. | 4,598,000 | 28,528,669 | ||||||
Hong Kong Exchanges & Clearing, Ltd. | 721,700 | 34,582,938 | ||||||
Sun Art Retail Group, Ltd. | 9,600,000 | 10,401,050 | ||||||
Techtronic Industries Company, Ltd. | 1,691,000 | 22,776,658 | ||||||
India 9.7% | 178,046,051 | |||||||
HDFC Bank, Ltd. (A) | 2,422,202 | 38,644,832 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 11 |
Table of Contents
|
Shares | Value | |||||||
India (continued) | ||||||||
Hindustan Unilever, Ltd. | 1,055,900 | $ | 29,576,091 | |||||
Housing Development Finance Corp., Ltd. | 702,047 | 18,189,236 | ||||||
Infosys, Ltd. | 1,194,903 | 17,116,330 | ||||||
Reliance Industries, Ltd. | 1,790,865 | 49,889,392 | ||||||
Reliance Industries, Ltd., Partly Paid Up Shares | 143,689 | 2,300,377 | ||||||
UltraTech Cement, Ltd. | 363,896 | 22,329,793 | ||||||
Indonesia 1.3% | 23,141,796 | |||||||
Bank Central Asia Tbk PT | 11,761,100 | 23,141,796 | ||||||
Poland 0.8% | 14,684,733 | |||||||
Dino Polska SA (A)(B) | 267,095 | 14,684,733 | ||||||
Russia 5.0% | 91,242,282 | |||||||
LUKOIL PJSC, ADR | 465,330 | 23,773,710 | ||||||
Sberbank of Russia PJSC, ADR | 1,880,317 | 19,010,005 | ||||||
X5 Retail Group NV, GDR | 645,018 | 22,672,100 | ||||||
Yandex NV, Class A (A) | 447,915 | 25,786,467 | ||||||
Singapore 2.0% | 37,010,140 | |||||||
Sea, Ltd., ADR (A) | 234,687 | 37,010,140 | ||||||
South Africa 2.8% | 52,360,618 | |||||||
Naspers, Ltd., N Shares | 268,203 | 52,360,618 | ||||||
South Korea 7.5% | 137,965,157 | |||||||
LG Chem, Ltd. | 73,732 | 40,204,680 | ||||||
LG Household & Health Care, Ltd. | 21,247 | 28,170,966 | ||||||
NAVER Corp. | 130,710 | 33,444,896 | ||||||
SK Hynix, Inc. | 509,489 | 36,144,615 | ||||||
Taiwan 11.3% | 208,897,894 | |||||||
ASE Technology Holding Company, Ltd. | 7,931,000 | 17,801,659 | ||||||
eMemory Technology, Inc. | 564,000 | 11,280,934 | ||||||
LandMark Optoelectronics Corp. | 2,517,000 | 23,353,759 | ||||||
MediaTek, Inc. | 2,088,000 | 49,632,328 | ||||||
Taiwan Semiconductor Manufacturing Company, Ltd. | 6,112,000 | 92,472,574 | ||||||
Win Semiconductors Corp. | 1,316,000 | 14,356,640 | ||||||
United Arab Emirates 0.5% | 9,595,513 | |||||||
Network International Holdings PLC (A)(B) | 3,344,061 | 9,595,513 | ||||||
United Kingdom 2.0% | 37,461,724 | |||||||
Anglo American PLC | 1,596,611 | 37,461,724 |
12 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||||||
Preferred securities 7.3% | $134,629,507 | |||||||||||
(Cost $92,315,123) | ||||||||||||
Brazil 2.1% | 38,700,289 | |||||||||||
Gerdau SA | 4,729,400 | 17,976,492 | ||||||||||
Itau Unibanco Holding SA | 5,064,400 | 20,723,797 | ||||||||||
South Korea 5.2% | 95,929,218 | |||||||||||
Samsung Electronics Company, Ltd. | 2,156,444 | 95,929,218 | ||||||||||
Yield (%) | Shares | Value | ||||||||||
Short-term investments 4.9% | $90,352,623 | |||||||||||
(Cost $90,352,623) | ||||||||||||
Short-term funds 4.9% | 90,352,623 | |||||||||||
JPMorgan U.S. Treasury Plus Money Market Fund, Institutional Class | 0.0100(C) | 90,352,623 | 90,352,623 | |||||||||
Total investments (Cost $1,344,898,258) 101.7% | $1,875,004,746 | |||||||||||
Other assets and liabilities, net (1.7%) | (31,606,780 | ) | ||||||||||
Total net assets 100.0% | $1,843,397,966 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
Security Abbreviations and Legend
ADR | American Depositary Receipt GDR Global Depositary Receipt | |
(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. | |
(C) | The rate shown is the annualized seven-day yield as of 10-31-20. |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $1,360,226,136. Net unrealized appreciation aggregated to $514,778,610, of which $551,284,177 related to gross unrealized appreciation and $36,505,567 related to gross unrealized depreciation.
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 13 |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 |
| |||
Assets | ||||
Unaffiliated investments, at value (Cost $1,344,898,258) | $1,875,004,746 | |||
Foreign currency, at value (Cost $11,039) | 10,842 | |||
Dividends and interest receivable | 3,014,062 | |||
Receivable for fund shares sold | 55,802 | |||
Receivable for investments sold | 6,662,278 | |||
Other assets | 121,302 | |||
Total assets | 1,884,869,032 | |||
Liabilities | ||||
Foreign capital gains tax payable | 4,897,953 | |||
Payable for investments purchased | 32,406,338 | |||
Payable for fund shares repurchased | 3,741,423 | |||
Payable to affiliates | ||||
Accounting and legal services fees | 68,948 | |||
Transfer agent fees | 1,106 | |||
Distribution and service fees | 82 | |||
Trustees’ fees | 422 | |||
Other liabilities and accrued expenses | 354,794 | |||
Total liabilities | 41,471,066 | |||
Net assets | $1,843,397,966 | |||
Net assets consist of | ||||
Paid-in capital | $1,251,553,263 | |||
Total distributable earnings (loss) | 591,844,703 | |||
Net assets | $1,843,397,966 | |||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of | ||||
Class A ($4,104,865 ÷ 315,914 shares)1 | $12.99 | |||
Class C ($603,787 ÷ 47,578 shares)1 | $12.69 | |||
Class I ($6,476,038 ÷ 497,098 shares) | $13.03 | |||
Class R2 ($95,892 ÷ 7,385 shares) | $12.98 | |||
Class R4 ($84,263 ÷ 6,473 shares) | $13.02 | |||
Class R6 ($2,013,914 ÷ 154,469 shares) | $13.04 | |||
Class NAV ($1,830,019,207 ÷ 140,388,642 shares) | $13.04 | |||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95%)2 | $13.67 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
14 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20
Investment income | ||||
Dividends | $29,914,867 | |||
Interest | 243,314 | |||
Less foreign taxes withheld | (2,788,188 | ) | ||
Total investment income | 27,369,993 | |||
Expenses | ||||
Investment management fees | 17,605,967 | |||
Distribution and service fees | 14,933 | |||
Accounting and legal services fees | 358,010 | |||
Transfer agent fees | 7,394 | |||
Trustees’ fees | 31,273 | |||
Custodian fees | 828,985 | |||
State registration fees | 91,400 | |||
Printing and postage | 21,867 | |||
Professional fees | 105,246 | |||
Other | 129,024 | |||
Total expenses | 19,194,099 | |||
Less expense reductions | (344,438 | ) | ||
Net expenses | 18,849,661 | |||
Net investment income | 8,520,332 | |||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | 119,771,208 | 1 | ||
119,771,208 | ||||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 244,087,057 | |||
244,087,057 | ||||
Net realized and unrealized gain | 363,858,265 | |||
Increase in net assets from operations | $372,378,597 |
1 | Net of foreign taxes of $(1,272,008). |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 15 |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS
Year ended 10-31-20 | Year ended 10-31-19 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income | $8,520,332 | $41,809,054 | ||||||
Net realized gain (loss) | 119,771,208 | (53,004,660 | ) | |||||
Change in net unrealized appreciation (depreciation) | 244,087,057 | 254,052,793 | ||||||
Increase in net assets resulting from operations | 372,378,597 | 242,857,187 | ||||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (72,935 | ) | (178,084 | ) | ||||
Class C | (2,533 | ) | (7,905 | ) | ||||
Class I | (5,271 | ) | (5,348 | ) | ||||
Class R2 | (1,731 | ) | (3,759 | ) | ||||
Class R4 | (1,313 | ) | (3,714 | ) | ||||
Class R6 | (28,750 | ) | (38,064 | ) | ||||
Class NAV | (48,499,558 | ) | (99,101,719 | ) | ||||
Total distributions | (48,612,091 | ) | (99,338,593 | ) | ||||
From fund share transactions | (495,095,024 | ) | 857,990,056 | |||||
Total increase (decrease) | (171,328,518 | ) | 1,001,508,650 | |||||
Net assets | ||||||||
Beginning of year | 2,014,726,484 | 1,013,217,834 | ||||||
End of year | $1,843,397,966 | $2,014,726,484 |
16 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS A SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $10.95 | $10.19 | $11.85 | $9.29 | $8.99 | |||||||||||||||
Net investment income1 | — | 2 | 0.19 | 0.10 | 0.04 | 0.02 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.27 | 1.27 | (1.59 | ) | 2.53 | 0.28 | ||||||||||||||
Total from investment operations | 2.27 | 1.46 | (1.49 | ) | 2.57 | 0.30 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.23 | ) | (0.04 | ) | (0.04 | ) | (0.01 | ) | — | |||||||||||
From net realized gain | — | (0.66 | ) | (0.13 | ) | — | — | |||||||||||||
Total distributions | (0.23 | ) | (0.70 | ) | (0.17 | ) | (0.01 | ) | — | |||||||||||
Net asset value, end of period | $12.99 | $10.95 | $10.19 | $11.85 | $9.29 | |||||||||||||||
Total return (%)3,4 | 21.04 | 15.56 | (12.79 | ) | 27.78 | 3.34 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $4 | $3 | $3 | $3 | $— | 5 | ||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.44 | 1.42 | 1.44 | 1.51 | 1.58 | |||||||||||||||
Expenses including reductions | 1.43 | 1.42 | 1.44 | 1.50 | 1.50 | |||||||||||||||
Net investment income | 0.02 | 1.80 | 0.87 | 0.37 | 0.24 | |||||||||||||||
Portfolio turnover (%) | 54 | 38 | 50 | 54 | 42 |
1 | Based on average daily shares outstanding. |
2 | Less than $0.005 per share. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Less than $500,000. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 17 |
Table of Contents
|
CLASS C SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $10.71 | $10.00 | $11.68 | $9.20 | $8.97 | |||||||||||||||
Net investment income (loss)1 | (0.08 | ) | 0.11 | — | 2 | (0.05 | ) | (0.03 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 2.22 | 1.26 | (1.55 | ) | 2.53 | 0.26 | ||||||||||||||
Total from investment operations | 2.14 | 1.37 | (1.55 | ) | 2.48 | 0.23 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.16 | ) | — | — | — | — | ||||||||||||||
From net realized gain | — | (0.66 | ) | (0.13 | ) | — | — | |||||||||||||
Total distributions | (0.16 | ) | (0.66 | ) | (0.13 | ) | — | — | ||||||||||||
Net asset value, end of period | $12.69 | $10.71 | $10.00 | $11.68 | $9.20 | |||||||||||||||
Total return (%)3,4 | 20.26 | 14.74 | (13.44 | ) | 26.96 | 2.56 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1 | $— | 5 | $— | 5 | $— | 5 | $— | 5 | |||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 2.14 | 2.12 | 2.14 | 2.21 | 2.28 | |||||||||||||||
Expenses including reductions | 2.13 | 2.12 | 2.14 | 2.20 | 2.20 | |||||||||||||||
Net investment income (loss) | (0.70 | ) | 1.08 | (0.03 | ) | (0.53 | ) | (0.36 | ) | |||||||||||
Portfolio turnover (%) | 54 | 38 | 50 | 54 | 42 |
1 | Based on average daily shares outstanding. |
2 | Less than $0.005 per share. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Less than $500,000. |
18 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS I SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $10.98 | $10.22 | $11.89 | $9.31 | $9.00 | |||||||||||||||
Net investment income1 | 0.01 | 0.26 | 0.12 | 0.07 | 0.05 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.30 | 1.24 | (1.59 | ) | 2.55 | 0.27 | ||||||||||||||
Total from investment operations | 2.31 | 1.50 | (1.47 | ) | 2.62 | 0.32 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.26 | ) | (0.08 | ) | (0.07 | ) | (0.04 | ) | (0.01 | ) | ||||||||||
From net realized gain | — | (0.66 | ) | (0.13 | ) | — | — | |||||||||||||
Total distributions | (0.26 | ) | (0.74 | ) | (0.20 | ) | (0.04 | ) | (0.01 | ) | ||||||||||
Net asset value, end of period | $13.03 | $10.98 | $10.22 | $11.89 | $9.31 | |||||||||||||||
Total return (%)2 | 21.51 | 15.81 | (12.52 | ) | 28.15 | 3.53 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $6 | $— | 3 | $— | 3 | $— | 3 | $— | 3 | |||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.14 | 1.13 | 1.15 | 1.20 | 1.26 | |||||||||||||||
Expenses including reductions | 1.12 | 1.12 | 1.15 | 1.20 | 1.25 | |||||||||||||||
Net investment income | 0.07 | 2.53 | 0.97 | 0.66 | 0.63 | |||||||||||||||
Portfolio turnover (%) | 54 | 38 | 50 | 54 | 42 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Less than $500,000. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 19 |
Table of Contents
|
CLASS R2 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $10.95 | $10.19 | $11.86 | $9.30 | $8.99 | |||||||||||||||
Net investment income1 | 0.01 | 0.21 | 0.09 | 0.05 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.26 | 1.27 | (1.58 | ) | 2.54 | 0.27 | ||||||||||||||
Total from investment operations | 2.27 | 1.48 | (1.49 | ) | 2.59 | 0.31 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.24 | ) | (0.06 | ) | (0.05 | ) | (0.03 | ) | — | |||||||||||
From net realized gain | — | (0.66 | ) | (0.13 | ) | — | — | |||||||||||||
Total distributions | (0.24 | ) | (0.72 | ) | (0.18 | ) | (0.03 | ) | — | |||||||||||
Net asset value, end of period | $12.98 | $10.95 | $10.19 | $11.86 | $9.30 | |||||||||||||||
Total return (%)2 | 21.15 | 15.67 | (12.74 | ) | 27.94 | 3.45 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $— | 3 | $— | 3 | $— | 3 | $— | 3 | $— | 3 | ||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.42 | 1.34 | 1.30 | 1.36 | 1.42 | |||||||||||||||
Expenses including reductions | 1.40 | 1.33 | 1.29 | 1.35 | 1.41 | |||||||||||||||
Net investment income | 0.05 | 2.02 | 0.71 | 0.47 | 0.44 | |||||||||||||||
Portfolio turnover (%) | 54 | 38 | 50 | 54 | 42 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Less than $500,000. |
20 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS R4 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $10.97 | $10.21 | $11.88 | $9.31 | $8.99 | |||||||||||||||
Net investment income1 | 0.03 | 0.20 | 0.10 | 0.06 | 0.05 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.27 | 1.29 | (1.58 | ) | 2.55 | 0.27 | ||||||||||||||
Total from investment operations | 2.30 | 1.49 | (1.48 | ) | 2.61 | 0.32 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.25 | ) | (0.07 | ) | (0.06 | ) | (0.04 | ) | — | 2 | ||||||||||
From net realized gain | — | (0.66 | ) | (0.13 | ) | — | — | |||||||||||||
Total distributions | (0.25 | ) | (0.73 | ) | (0.19 | ) | (0.04 | ) | — | 2 | ||||||||||
Net asset value, end of period | $13.02 | $10.97 | $10.21 | $11.88 | $9.31 | |||||||||||||||
Total return (%)3 | 21.47 | 15.77 | (12.58 | ) | 28.04 | 3.59 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $— | 4 | $— | 4 | $— | 4 | $— | 4 | $— | 4 | ||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.29 | 1.28 | 1.31 | 1.36 | 1.42 | |||||||||||||||
Expenses including reductions | 1.17 | 1.17 | 1.20 | 1.26 | 1.31 | |||||||||||||||
Net investment income | 0.26 | 1.93 | 0.82 | 0.59 | 0.54 | |||||||||||||||
Portfolio turnover (%) | 54 | 38 | 50 | 54 | 42 |
1 | Based on average daily shares outstanding. |
2 | Less than $0.005 per share. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Less than $500,000. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 21 |
Table of Contents
|
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $10.99 | $10.22 | $11.89 | $9.32 | $9.00 | |||||||||||||||
Net investment income1 | 0.05 | 0.26 | 0.17 | 0.09 | 0.06 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.27 | 1.26 | (1.63 | ) | 2.53 | 0.27 | ||||||||||||||
Total from investment operations | 2.32 | 1.52 | (1.46 | ) | 2.62 | 0.33 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.27 | ) | (0.09 | ) | (0.08 | ) | (0.05 | ) | (0.01 | ) | ||||||||||
From net realized gain | — | (0.66 | ) | (0.13 | ) | — | — | |||||||||||||
Total distributions | (0.27 | ) | (0.75 | ) | (0.21 | ) | (0.05 | ) | (0.01 | ) | ||||||||||
Net asset value, end of period | $13.04 | $10.99 | $10.22 | $11.89 | $9.32 | |||||||||||||||
Total return (%)2 | 21.61 | 16.08 | (12.52 | ) | 28.33 | 3.69 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $2 | $1 | $1 | $— | 3 | $— | 3 | |||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.03 | 1.02 | 1.05 | 1.11 | 1.17 | |||||||||||||||
Expenses including reductions | 1.02 | 1.01 | 1.04 | 1.10 | 1.14 | |||||||||||||||
Net investment income | 0.48 | 2.48 | 1.45 | 0.88 | 0.71 | |||||||||||||||
Portfolio turnover (%) | 54 | 38 | 50 | 54 | 42 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Less than $500,000. |
22 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS NAV SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-16 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $10.99 | $10.22 | $11.89 | $9.32 | $9.00 | |||||||||||||||
Net investment income1 | 0.05 | 0.24 | 0.14 | 0.08 | 0.07 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.27 | 1.28 | (1.60 | ) | 2.54 | 0.26 | ||||||||||||||
Total from investment operations | 2.32 | 1.52 | (1.46 | ) | 2.62 | 0.33 | ||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.27 | ) | (0.09 | ) | (0.08 | ) | (0.05 | ) | (0.01 | ) | ||||||||||
From net realized gain | — | (0.66 | ) | (0.13 | ) | — | — | |||||||||||||
Total distributions | (0.27 | ) | (0.75 | ) | (0.21 | ) | (0.05 | ) | (0.01 | ) | ||||||||||
Net asset value, end of period | $13.04 | $10.99 | $10.22 | $11.89 | $9.32 | |||||||||||||||
Total return (%)2 | 21.62 | 16.10 | (12.51 | ) | 28.33 | 3.65 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1,830 | $2,010 | $1,010 | $1,076 | $859 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.02 | 1.01 | 1.04 | 1.10 | 1.15 | |||||||||||||||
Expenses including reductions | 1.00 | 1.00 | 1.03 | 1.09 | 1.14 | |||||||||||||||
Net investment income | 0.46 | 2.29 | 1.18 | 0.75 | 0.77 | |||||||||||||||
Portfolio turnover (%) | 54 | 38 | 50 | 54 | 42 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 23 |
Table of Contents
|
Note 1 — Organization
John Hancock Emerging Markets Equity Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital growth.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R2 and Class R4 shares are available only to certain retirement and 529 plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply).
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds are valued at their respective NAVs each business day. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when
24 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund’s Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2020, by major security category or type:
Total value at 10-31-20 | Level 1 quoted price | Level 2 significant inputs | Level 3 significant unobservable inputs | |||||||||||||
Investments in securities: | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | ||||||||||||||||
Argentina | $24,357,485 | $24,357,485 | — | — | ||||||||||||
Brazil | 39,341,082 | 39,341,082 | — | — | ||||||||||||
China | 641,718,360 | 105,951,364 | $535,766,996 | — | ||||||||||||
Hong Kong | 154,199,781 | — | 154,199,781 | — | ||||||||||||
India | 178,046,051 | — | 178,046,051 | — | ||||||||||||
Indonesia | 23,141,796 | — | 23,141,796 | — | ||||||||||||
Poland | 14,684,733 | — | 14,684,733 | — | ||||||||||||
Russia | 91,242,282 | 68,570,182 | 22,672,100 | — | ||||||||||||
Singapore | 37,010,140 | 37,010,140 | — | — | ||||||||||||
South Africa | 52,360,618 | — | 52,360,618 | — | ||||||||||||
South Korea | 137,965,157 | — | 137,965,157 | — | ||||||||||||
Taiwan | 208,897,894 | — | 208,897,894 | — | ||||||||||||
United Arab Emirates | 9,595,513 | — | 9,595,513 | — | ||||||||||||
United Kingdom | 37,461,724 | — | 37,461,724 | — | ||||||||||||
Preferred securities | ||||||||||||||||
Brazil | 38,700,289 | 38,700,289 | — | — | ||||||||||||
South Korea | 95,929,218 | — | 95,929,218 | — | ||||||||||||
Short-term investments | 90,352,623 | 90,352,623 | — | — | ||||||||||||
Total investments in securities | $1,875,004,746 | $404,283,165 | $1,470,721,581 | — |
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 25 |
Table of Contents
|
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $9,934.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
26 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2020 and 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||||
Ordinary income | $48,612,091 | $14,180,989 | ||||||
Long-term capital gains | — | 85,157,604 | ||||||
Total | $48,612,091 | $99,338,593 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $14,216,308 of undistributed ordinary income and $67,742,171 of undistributed long-term capital gains.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to investments in passive foreign investment companies, foreign currency transactions, wash sale loss deferrals and foreign capital gain tax.
Note 3 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 27 |
Table of Contents
|
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 1.050% of the first $500 million of the fund’s average daily net assets; (b) 1.000% of the next $500 million of the fund’s average daily net assets; (c) 0.950% of the fund’s average daily net assets, if aggregate net assets exceed $1 billion, but are less than or equal to $2 billion, the rate applies retroactively to all assets; and (d) 0.900% of the fund’s average daily net assets, if the aggregate net assets exceed $2 billion, the rate applies retroactively to all assets. The Advisor has a subadvisory agreement with Manulife Investment Management (US) LLC, an indirectly owned subsidiary of Manulife Financial Corporation and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
Effective October 1, 2020, the Advisor contractually agreed to reduce its management fee by an annual rate of 0.13% of the fund’s average daily assets. This agreement expires on February 28, 2022, unless renewed by mutual agreement of the fund and the advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $705 | |||
Class C | 92 | |||
Class I | 834 | |||
Class R2 | 17 |
Class | Expense reduction | |||
Class R4 | $14 | |||
Class R6 | 332 | |||
Class NAV | 342,381 | |||
Total | $344,375 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 0.92% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
28 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for certain classes as detailed below, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | Service fee | ||||||
Class A | 0.30% | — | ||||||
Class C | 1.00% | — | ||||||
Class R2 | 0.25% | 0.25% | ||||||
Class R4 | 0.25% | 0.10% |
The fund’s Distributor has contractually agreed to waive 0.10% of Rule 12b-1 fees for Class R4 shares. The current waiver agreement expires on February 28, 2021, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $63 for Class R4 shares for the year ended October 31, 2020.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $3,729 for the year ended October 31, 2020. Of this amount, $586 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $3,143 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs).Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, CDSCs received by the Distributor amounted to $518 for Class C shares. There were no CDSCs received by the Distributor for Class A shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $10,822 | $4,475 | ||||||
Class C | 3,624 | 447 | ||||||
Class I | — | 2,262 | ||||||
Class R2 | 324 | 10 |
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 29 |
Table of Contents
|
Class | Distribution and service fees | Transfer agent fees | ||||||
Class R4 | $163 | $8 | ||||||
Class R6 | — | 192 | ||||||
Total | $14,933 | $7,394 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. Interest expense is included in Other expenses on the Statement of operations. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) | ||||||||||||
Borrower | $11,033,673 | 27 | 1.284% | $(10,622) |
Note 5 — Fund share transactions
Transactions in fund shares for the years ended October 31, 2020 and 2019 were as follows:
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares | ||||||||||||||||
Sold | 139,798 | $1,561,072 | 204,547 | $2,154,740 | ||||||||||||
Distributions reinvested | 6,518 | 72,935 | 18,825 | 178,084 | ||||||||||||
Repurchased | (148,124 | ) | (1,612,751 | ) | (177,952 | ) | (1,826,338 | ) | ||||||||
Net increase (decrease) | (1,808 | ) | $21,256 | 45,420 | $506,486 | |||||||||||
Class C shares | ||||||||||||||||
Sold | 50,376 | $565,611 | 7,652 | $78,162 | ||||||||||||
Distributions reinvested | 230 | 2,533 | 850 | 7,905 | ||||||||||||
Repurchased | (19,279 | ) | (190,417 | ) | (4,306 | ) | (44,433 | ) | ||||||||
Net increase | 31,327 | $377,727 | 4,196 | $41,634 | ||||||||||||
Class I shares | ||||||||||||||||
Sold | 585,025 | $6,988,867 | 43,290 | $446,236 | ||||||||||||
Distributions reinvested | 374 | 4,185 | 239 | 2,260 | ||||||||||||
Repurchased | (107,234 | ) | (1,241,646 | ) | (31,849 | ) | (319,812 | ) | ||||||||
Net increase | 478,165 | $5,751,406 | 11,680 | $128,684 |
30 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class R2 shares | ||||||||||||||||
Sold | 26 | $289 | 2,009 | $22,000 | ||||||||||||
Distributions reinvested | 66 | 735 | 77 | 728 | ||||||||||||
Repurchased | (1 | ) | (10 | ) | — | — | ||||||||||
Net increase | 91 | $1,014 | 2,086 | $22,728 | ||||||||||||
Class R4 shares | ||||||||||||||||
Sold | 1,363 | $16,693 | 154 | $1,589 | ||||||||||||
Distributions reinvested | 23 | 252 | 67 | 631 | ||||||||||||
Repurchased | (112 | ) | (1,202 | ) | (80 | ) | (842 | ) | ||||||||
Net increase | 1,274 | $15,743 | 141 | $1,378 | ||||||||||||
Class R6 shares | ||||||||||||||||
Sold | 65,146 | $718,327 | 52,180 | $538,413 | ||||||||||||
Distributions reinvested | 2,571 | 28,750 | 4,028 | 38,065 | ||||||||||||
Repurchased | (19,215 | ) | (226,535 | ) | (915 | ) | (9,951 | ) | ||||||||
Net increase | 48,502 | $520,542 | 55,293 | $566,527 | ||||||||||||
Class NAV shares | ||||||||||||||||
Sold | 6,959,025 | $71,877,442 | 86,932,990 | $898,101,859 | ||||||||||||
Distributions reinvested | 4,338,065 | 48,499,558 | 10,486,954 | 99,101,719 | ||||||||||||
Repurchased | (53,845,381 | ) | (622,159,712 | ) | (13,256,063 | ) | (140,480,959 | ) | ||||||||
Net increase (decrease) | (42,548,291 | ) | $(501,782,712 | ) | 84,163,881 | $856,722,619 | ||||||||||
Total net increase (decrease) | (41,990,740 | ) | $(495,095,024 | ) | 84,282,697 | $857,990,056 |
Affiliates of the fund owned 57%,65%,93% and 100% of shares of Class R2, Class R4, Class R6 and Class NAV, respectively, on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $982,639,470 and $1,576,416,013, respectively, for the year ended October 31, 2020.
Note 7 — Emerging-market risk
Foreign investing especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Funds that invest a significant portion of assets in the securities of issuers based in countries with emerging market economies are subject to greater levels of foreign investment risk than funds investing primarily in more-developed foreign markets, since emerging-market securities may present other risks greater than, or in addition to, the risks of investing in developed foreign countries.
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 31 |
Table of Contents
|
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2020, funds within the John Hancock group of funds complex held 99.5% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
Fund | Affiliated Concentration | |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 23.4% | |
John Hancock Variable Insurance Trust Managed Volatility Growth Portfolio | 17.6% | |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 14.1% | |
John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 12.5% | |
John Hancock Variable Insurance Trust Managed Volatility Balanced Portfolio | 9.2% |
Note 9 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
32 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Emerging Markets Equity Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Emerging Markets Equity Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statements of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the five years in the period ended October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 33 |
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Income derived from foreign sources was $31,130,671. The fund intends to pass through foreign tax credits of $3,972,618.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
34 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Manulife Investment Management (US) LLC (the Subadvisor) for John Hancock Emerging Markets Equity Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board noted the affiliation of the Subadvisor with the Advisor, noting any potential conflicts of interest. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
1 On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the “Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 35 |
Table of Contents
|
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor,and is also responsible for monitoring and reviewing the activities of the Subadvisor and third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
36 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index and peer group median for the one- and three-year periods ended December 31, 2019. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to the benchmark index and peer group median for the one- and three-year periods. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are higher than the peer group median and net total expenses for the fund are lower than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 37 |
Table of Contents
|
of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board also noted that the fund’s distributor, an affiliate of the Advisor, has agreed to waive a portion of its Rule 12b-1 fee for a share class of the fund. The Board noted that the fund has a voluntary fee waiver and/or expense reimbursement, which reduces certain expenses of the fund. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates (including the Subadvisor) from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the fund’s Subadvisor is an affiliate of the Advisor; |
(i) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(j) | noted that the subadvisory fee for the fund is paid by the Advisor; |
(k) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
38 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
(l) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates (including the Subadvisor) from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) |
(3) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and |
(4) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 39 |
Table of Contents
|
noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third-party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
40 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 41 |
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee | ||
Hassell H. McClellan, Born: 1945 | 2012
| 196
|
Trustee and Chairperson of the Board
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012
| 196
|
Trustee
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015
| 196
|
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012
| 196
|
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986
| 196
|
Trustee
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012
| 196
|
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).
42 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee | ||
Deborah C. Jackson, Born: 1952 |
2008
|
196
|
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946
| 2012
| 196
|
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994
| 196
|
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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
| 196
|
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 43 |
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee | ||
Gregory A. Russo, Born: 1949 | 2009 | 196 |
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 Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee | ||
Andrew G. Arnott, Born: 1971 | 2017 | 196 |
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
44 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
|
Principal officers who are not Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Officer of the Trust since | |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
Salvatore Schiavone, Born: 1965 | 2010 |
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 |
Chief Legal Officer and Secretary
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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).
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023.
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291.
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
ANNUAL REPORT | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | 45 |
Table of Contents
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
James M. Oates*
Frances G. Rathke1,*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
* | Member of the Audit Committee |
† | Non-Independent Trustee |
1 | Appointed as Independent Trustee effective as of September 15, 2020 |
2 | Effective July 31, 2020 |
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Manulife Investment Management (US) LLC
Portfolio Managers
Philip Ehrmann
Kathryn Langridge
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407
|
46 | JOHN HANCOCK EMERGING MARKETS EQUITY FUND | ANNUAL REPORT |
Table of Contents
Protect yourself by using eDelivery
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
| ||||||||
⬛ | Added security: Password protection helps you safely retrieve documents online | |||||||
⬛ | Save time: Receive instant email notification once statements are available
| jhinvestments.com/login | ||||||
⬛ | Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling | |||||||
SIGN UP FOR EDELIVERY TODAY!
|
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report
Table of Contents
Get your questions answered by using our shareholder resources
ONLINE
| ||||||
⬛ | Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |||||
⬛ | Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |||||
⬛ | Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |||||
⬛ | Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. | |||||
BY PHONE
| ||||||
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00A.M. to 7:00P.M., and Friday, 8:00 A.M. to 6:00 P.M., Eastern time. We’re here to help! |
Not part of the shareholder report
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and
Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND
GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock Emerging Markets Equity Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399321 | 456A 10/20 | |
12/2020 |
Table of Contents
Table of Contents
Dear shareholder,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. In response to the pandemic-led shock, the U.S. Federal Reserve and the government worked quickly to shore up the economy and equity markets began to rise, particularly large-cap U.S. growth stocks, during the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain areas have been reinstated, affecting the level of unemployment and the pace of hiring. Consumer spending also remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
John Hancock
ESG All Cap Core Fund
Table of contents | ||||||
2 | Your fund at a glance | |||||
4 | Manager’s discussion of fund performance | |||||
6 | A look at performance | |||||
8 | ||||||
10 | ||||||
14 | ||||||
17 | ||||||
21 | ||||||
27 | ||||||
28 | ||||||
29 | Continuation of investment advisory agreement and approval of subadvisory agreement | |||||
36 | ||||||
40 |
|
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 1 |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The S&P Composite 1500 Index combines three indexes, the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600 to cover approximately 90% of the U.S. market capitalization.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns. The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
2 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
The fund saw gains from security selection | ||||
The fund outperformed the benchmark S&P Composite 1500 Index, partly reflecting positive stock picking, especially in the information technology sector; picks in the healthcare and consumer discretionary sectors were partly offsetting negatives. | ||||
Sector allocation also contributed | ||||
An underweight in the weak-performing energy sector, to which we eliminated the fund’s exposure in the third quarter of 2020, added value. | ||||
Monitoring key ESG trends | ||||
At period end, we were paying particular attention to companies we believed could benefit from efforts to address climate change, as well as those we believed were sufficiently focused on racial justice issues. |
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
|
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 3 |
Table of Contents
Manager’s discussion of fund performance
|
How did the fund perform during the 12 months ended October 31, 2020?
The fund outperformed its benchmark, the S&P Composite 1500 Index, due to a combination of favorable security selection and sector positioning. With stock picking, the fund saw especially favorable results in the information technology sector; picks in the utilities, real estate, and financials sectors also helped. Security selection in healthcare and consumer discretionary detracted. A relative underweight in the weak-performing energy category contributed; we fully eliminated the fund’s exposure to this sector late in the period, as we saw better investment opportunities elsewhere.
Which stocks contributed the most to the fund’s relative outperformance?
The fund’s top contributor was electronic payments company PayPal Holdings, Inc. This company has been among the big beneficiaries of a global shift from cash to electronic payments, a shift that accelerated with the spread of COVID-19. Another contributor was Lululemon Athletica, Inc. This athletic apparel retailer has successfully served customers’ needs for casual, comfortable clothing while they spend more time at home. Also adding value was First Solar, Inc., a maker of solar panels that benefited from the growing economic competitiveness of solar energy.
TOP 10 HOLDINGS AS OF 10/31/2020 (% of net assets) | COUNTRY COMPOSITION AS OF 10/31/2020 (% of net assets) | |||||||||||||||||||
|
| |||||||||||||||||||
Alphabet, Inc., Class A | 4.9 |
United States | 89.6 | |||||||||||||||||
Microsoft Corp. | 4.8 | Ireland | 4.0 | |||||||||||||||||
Apple, Inc. | 3.7 | Netherlands | 2.7 | |||||||||||||||||
PayPal Holdings, Inc. | 2.9 | United Kingdom | 2.4 | |||||||||||||||||
Mastercard, Inc., Class A | 2.5 | Canada | 1.3 | |||||||||||||||||
SBA Communications Corp. | 2.2 | TOTAL | 100.0 | |||||||||||||||||
Adobe, Inc. | 2.0 | |||||||||||||||||||
The Procter & Gamble Company | 2.0 | |||||||||||||||||||
The Travelers Companies, Inc. | 1.9 | |||||||||||||||||||
The Home Depot, Inc. | 1.9 | |||||||||||||||||||
TOTAL | 28.8 | |||||||||||||||||||
Cash and cash equivalents are not included. | ||||||||||||||||||||
|
4 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Which stocks detracted from relative performance?
One notable relative detractor was online retail giant Amazon.com, Inc., a strong-performing benchmark component we declined to own for two reasons. First, Amazon’s labor and environmental practices don’t currently meet our standards. Second, the stock remained unattractively valued, in our opinion. Oil and gas pipeline company ONEOK, Inc. underperformed, | MANAGED BY
Elizabeth R. Levy, CFA Cheryl I. Smith, Ph.D., CFA
|
as declining energy commodity prices weighed on the stock. Another detractor was industrial materials company Hexcel Corp., whose products include lightweight materials used to improve fuel economy in next-generation airplanes. Sluggish demand for new aircraft weighed on the stock. We sold the fund’s holdings in ONEOK and Hexcel during the period.
From an environmental, social, and governance perspective, what trends were you monitoring?
We evaluate companies we believe can benefit from the battle against climate change. Strong policy support in the European Union, coupled with rapid growth of the wind and solar energy industry in the United States, provide a favorable tailwind for many businesses. We also recognize the possible risk to businesses with insufficient commitment to racial justice. We anticipate that consumers, workers, and investors will favor companies aligned with this movement, while those firms that aren’t may face increased reputational risk, more difficulty hiring employees, and the potential for costly customer boycotts.
Can you tell us about a recent change to the ownership of your company?
Effective June 30, 2020, Trillium Asset Management, LLC was purchased by Perpetual Limited. We will continue to manage the fund under the Trillium name.
The views expressed in this report are exclusively those of Elizabeth R. Levy, CFA, and Cheryl I. Smith, Ph.D., CFA, Trillium Asset Management, LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 5 |
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | |||||||||||||||||||||
1-year | Since inception (6-6-16) | Since inception (6-6-16) | ||||||||||||||||||||
Class A | 3.71 | 10.00 | 52.18 | |||||||||||||||||||
Class C | 7.37 | 10.46 | 55.03 | |||||||||||||||||||
Class I1 | 9.47 | 11.56 | 61.92 | |||||||||||||||||||
Class R61 | 9.64 | 11.69 | 62.78 | |||||||||||||||||||
Index† | 8.56 | 12.27 | 66.50 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I or Class R6 shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R6 | |||||||
Gross (%) | 1.80 | 2.55 | 1.55 | 1.44 | ||||||
Net (%) | 1.18 | 1.93 | 0.93 | 0.82 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the S&P Composite 1500 Index. |
See the following page for footnotes.
6 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock ESG All Cap Core Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the S&P Composite 1500 Index
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||||
Class C2 | 6-6-16 | 15,503 | 15,503 | 16,650 | ||||||||||||
Class I1 | 6-6-16 | 16,192 | 16,192 | 16,650 | ||||||||||||
Class R61 | 6-6-16 | 16,278 | 16,278 | 16,650 |
The S&P Composite 1500 Index combines three indexes, the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600 to cover approximately 90% of the U.S. market capitalization.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | For certain types of investors, as described in the fund’s prospectus. |
2 | The contingent deferred sales charge is not applicable. |
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 7 |
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the ”expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
8 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 5-1-2020 | Ending value on 10-31-2020 | Expenses paid during period ended 10-31-20201 | Annualized expense ratio | |||||||||||||||
Class A | Actual expenses/actual returns | $ | 1,000.00 | $ | 1,167.80 | $ | 6.43 | 1.18% | ||||||||||
Hypothetical example | 1,000.00 | 1,019.20 | 5.99 | 1.18% | ||||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,163.70 | 10.50 | 1.93% | |||||||||||||
Hypothetical example | 1,000.00 | 1,015.40 | 9.78 | 1.93% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,169.20 | 5.07 | 0.93% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.50 | 4.72 | 0.93% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,169.80 | 4.47 | 0.82% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.00 | 4.17 | 0.82% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 9 |
Table of Contents
|
AS OF 10-31-20
Shares | Value | |||||||
Common stocks 98.0% | $28,794,808 | |||||||
(Cost $19,856,123) | ||||||||
Communication services 8.0% | 2,362,382 | |||||||
Diversified telecommunication services 1.6% | ||||||||
Verizon Communications, Inc. | 8,528 | 486,011 | ||||||
Interactive media and services 4.9% | ||||||||
Alphabet, Inc., Class A (A) | 883 | 1,427,023 | ||||||
Media 1.5% | ||||||||
The New York Times Company, Class A | 11,330 | 449,348 | ||||||
Consumer discretionary 11.0% | 3,229,177 | |||||||
Hotels, restaurants and leisure 1.0% | ||||||||
Starbucks Corp. | 3,407 | 296,273 | ||||||
Internet and direct marketing retail 0.7% | ||||||||
Booking Holdings, Inc. (A) | 125 | 202,813 | ||||||
Multiline retail 1.6% | ||||||||
Target Corp. | 3,138 | 477,666 | ||||||
Specialty retail 4.1% | ||||||||
The Home Depot, Inc. | 2,108 | 562,225 | ||||||
The TJX Companies, Inc. | 7,101 | 360,731 | ||||||
Tractor Supply Company | 2,171 | 289,199 | ||||||
Textiles, apparel and luxury goods 3.6% | ||||||||
Lululemon Athletica, Inc. (A) | 1,211 | 386,660 | ||||||
NIKE, Inc., Class B | 3,288 | 394,823 | ||||||
VF Corp. | 3,851 | 258,787 | ||||||
Consumer staples 6.9% | 2,022,704 | |||||||
Food and staples retailing 1.5% | ||||||||
Costco Wholesale Corp. | 1,205 | 430,932 | ||||||
Food products 2.3% | ||||||||
Lamb Weston Holdings, Inc. | 4,802 | 304,687 | ||||||
McCormick & Company, Inc. | 2,037 | 367,699 | ||||||
Household products 2.0% | ||||||||
The Procter & Gamble Company | 4,215 | 577,877 | ||||||
Personal products 1.1% | ||||||||
Unilever NV, NYRS | 6,038 | 341,509 | ||||||
Financials 9.5% | 2,783,593 | |||||||
Banks 5.3% | ||||||||
Bank of America Corp. | 19,308 | 457,600 | ||||||
First Republic Bank | 2,884 | 363,788 | ||||||
SVB Financial Group (A) | 1,443 | 419,480 |
10 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
Financials (continued) | ||||||||
Banks (continued) | ||||||||
The PNC Financial Services Group, Inc. | 2,884 | $322,662 | ||||||
Capital markets 0.7% | ||||||||
The Bank of New York Mellon Corp. | 5,930 | 203,755 | ||||||
Insurance 3.5% | ||||||||
Aflac, Inc. | 8,816 | 299,303 | ||||||
Reinsurance Group of America, Inc. | 1,521 | 153,651 | ||||||
The Travelers Companies, Inc. | 4,667 | 563,354 | ||||||
Health care 13.8% | 4,061,276 | |||||||
Biotechnology 0.8% | ||||||||
Gilead Sciences, Inc. | 4,199 | 244,172 | ||||||
Health care equipment and supplies 3.0% | ||||||||
Becton, Dickinson and Company | 1,062 | 245,460 | ||||||
Medtronic PLC | 3,931 | 395,341 | ||||||
Stryker Corp. | 1,157 | 233,726 | ||||||
Health care providers and services 3.9% | ||||||||
Anthem, Inc. | 1,189 | 324,359 | ||||||
LHC Group, Inc. (A) | 1,799 | 389,573 | ||||||
Quest Diagnostics, Inc. | 3,503 | 427,856 | ||||||
Health care technology 1.1% | ||||||||
Omnicell, Inc. (A) | 3,747 | 324,303 | ||||||
Life sciences tools and services 2.2% | ||||||||
Illumina, Inc. (A) | 761 | 222,745 | ||||||
IQVIA Holdings, Inc. (A) | 2,806 | 432,096 | ||||||
Pharmaceuticals 2.8% | ||||||||
AstraZeneca PLC, ADR | 7,576 | 380,012 | ||||||
Merck & Company, Inc. | 5,872 | 441,633 | ||||||
Industrials 9.0% | 2,643,922 | |||||||
Aerospace and defense 0.4% | ||||||||
Hexcel Corp. | 3,803 | 127,324 | ||||||
Air freight and logistics 1.1% | ||||||||
United Parcel Service, Inc., Class B | 1,997 | 313,749 | ||||||
Building products 1.5% | ||||||||
Trane Technologies PLC | 3,407 | 452,279 | ||||||
Construction and engineering 1.1% | ||||||||
Quanta Services, Inc. | 5,080 | 317,144 | ||||||
Electrical equipment 1.3% | ||||||||
Eaton Corp. PLC | 3,788 | 393,157 | ||||||
Machinery 2.4% | ||||||||
Wabtec Corp. | 4,810 | 285,233 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 11 |
Table of Contents
|
Shares | Value | |||||||
Industrials (continued) | ||||||||
Machinery (continued) | ||||||||
Xylem, Inc. | 4,778 | $416,355 | ||||||
Road and rail 1.2% | ||||||||
JB Hunt Transport Services, Inc. | 2,782 | 338,681 | ||||||
Information technology 28.9% | 8,494,955 | |||||||
Electronic equipment, instruments and components 1.0% | ||||||||
IPG Photonics Corp. (A) | 1,656 | 307,950 | ||||||
IT services 6.5% | ||||||||
Accenture PLC, Class A | 1,497 | 324,714 | ||||||
Mastercard, Inc., Class A | 2,576 | 743,537 | ||||||
PayPal Holdings, Inc. (A) | 4,493 | 836,282 | ||||||
Semiconductors and semiconductor equipment 6.6% | ||||||||
Analog Devices, Inc. | 2,528 | 299,644 | ||||||
ASML Holding NV, NYRS | 1,205 | 435,258 | ||||||
First Solar, Inc. (A) | 5,633 | 490,324 | ||||||
NXP Semiconductors NV | 2,584 | 349,150 | ||||||
Xilinx, Inc. | 2,988 | 354,646 | ||||||
Software 11.1% | ||||||||
Adobe, Inc. (A) | 1,331 | 595,090 | ||||||
ANSYS, Inc. (A) | 1,331 | 405,116 | ||||||
Blackbaud, Inc. | 3,045 | 150,240 | ||||||
Microsoft Corp. | 6,903 | 1,397,650 | ||||||
Palo Alto Networks, Inc. (A) | 1,403 | 310,330 | ||||||
salesforce.com, Inc. (A) | 1,799 | 417,854 | ||||||
Technology hardware, storage and peripherals 3.7% | ||||||||
Apple, Inc. | 9,895 | 1,077,170 | ||||||
Materials 3.8% | 1,102,277 | |||||||
Chemicals 3.8% | ||||||||
Air Products & Chemicals, Inc. | 1,680 | 464,083 | ||||||
Ecolab, Inc. | 2,076 | 381,133 | ||||||
International Flavors & Fragrances, Inc. | 2,504 | 257,061 | ||||||
Real estate 3.4% | 992,750 | |||||||
Equity real estate investment trusts 2.8% | ||||||||
AvalonBay Communities, Inc. | 1,213 | 168,765 | ||||||
SBA Communications Corp. | 2,203 | 639,685 | ||||||
Real estate management and development 0.6% | ||||||||
Jones Lang LaSalle, Inc. | 1,633 | 184,300 | ||||||
Utilities 3.7% | 1,101,772 | |||||||
Electric utilities 1.1% | ||||||||
Avangrid, Inc. | 6,561 | 323,720 |
12 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
Utilities (continued) | ||||||||
Independent power and renewable electricity producers 0.9% | ||||||||
Ormat Technologies, Inc. | 3,692 | $ | 261,652 | |||||
Water utilities 1.7% | ||||||||
American Water Works Company, Inc. | 3,431 | 516,400 |
Yield | (%) | Shares | Value | |||||||||
Short-term investments 2.0% |
|
$587,068 |
| |||||||||
(Cost $587,068) | ||||||||||||
Short-term funds 2.0% | 587,068 | |||||||||||
Federated Government Obligations Fund, Institutional Class | 0.0100 | (B) | 587,068 | 587,068 | ||||||||
| ||||||||||||
Total investments (Cost $20,443,191) 100.0% |
|
$29,381,876 |
| |||||||||
Other assets and liabilities, net (0.0%) |
|
(13,702 |
) | |||||||||
Total net assets 100.0% |
|
$29,368,174 |
|
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
Security Abbreviations and Legend
ADR American Depositary Receipt
NYRS New York Registry Shares
(A) Non-income producing security.
(B) The rate shown is the annualized seven-day yield as of 10-31-20.
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $20,465,699. Net unrealized appreciation aggregated to $8,916,177, of which $9,581,180 related to gross unrealized appreciation and $665,003 related to gross unrealized depreciation.
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 13 |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 |
| |||
Assets | ||||
Unaffiliated investments, at value (Cost $20,443,191) | $29,381,876 | |||
Dividends and interest receivable | 21,976 | |||
Receivable for fund shares sold | 762 | |||
Receivable from affiliates | 470 | |||
Other assets | 30,917 | |||
Total assets | 29,436,001 | |||
Liabilities | ||||
Payable for fund shares repurchased | 4,933 | |||
Payable to affiliates | ||||
Accounting and legal services fees | 1,120 | |||
Transfer agent fees | 2,964 | |||
Trustees’ fees | 55 | |||
Other liabilities and accrued expenses | 58,755 | |||
Total liabilities | 67,827 | |||
Net assets | $29,368,174 | |||
| ||||
Net assets consist of | ||||
Paid-in capital | $20,809,951 | |||
Total distributable earnings (loss) | 8,558,223 | |||
Net assets | $29,368,174 | |||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class A ($9,224,347 ÷ 622,590 shares)1 | $14.82 | |||
Class C ($725,010 ÷ 50,011 shares)1 | $14.50 | |||
Class I ($18,776,284 ÷ 1,263,120 shares) | $14.87 | |||
Class R6 ($642,533 ÷ 43,186 shares) | $14.88 | |||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95%)2 | $15.60 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
14 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20 |
| |||
Investment income | ||||
Dividends | $369,744 | |||
Interest | 1,678 | |||
Less foreign taxes withheld | (693 | ) | ||
Total investment income | 370,729 | |||
Expenses | ||||
Investment management fees | 208,842 | |||
Distribution and service fees | 37,696 | |||
Accounting and legal services fees | 4,691 | |||
Transfer agent fees | 33,451 | |||
Trustees’ fees | 565 | |||
Custodian fees | 25,986 | |||
State registration fees | 69,940 | |||
Printing and postage | 20,821 | |||
Professional fees | 53,125 | |||
Other | 14,302 | |||
Total expenses | 469,419 | |||
Less expense reductions | (172,723 | ) | ||
Net expenses | 296,696 | |||
Net investment income | 74,033 | |||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments | (219,581 | ) | ||
(219,581 | ) | |||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments | 2,510,141 | |||
2,510,141 | ||||
Net realized and unrealized gain | 2,290,560 | |||
Increase in net assets from operations | $2,364,593 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 15 |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS |
| |||||||
Year ended 10-31-20 | Year ended 10-31-19 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income | $74,033 | $112,365 | ||||||
Net realized loss | (219,581 | ) | (198,356 | ) | ||||
Change in net unrealized appreciation (depreciation) | 2,510,141 | 3,423,092 | ||||||
Increase in net assets resulting from operations | 2,364,593 | 3,337,101 | ||||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (16,512 | ) | (273,395 | ) | ||||
Class C | — | (63,251 | ) | |||||
Class I | (72,352 | ) | (618,633 | ) | ||||
Class R6 | (8,780 | ) | (53,336 | ) | ||||
Total distributions | (97,644 | ) | (1,008,615 | ) | ||||
From fund share transactions | (655,183 | ) | 2,133,732 | |||||
Total increase | 1,611,766 | 4,462,218 | ||||||
Net assets | ||||||||
Beginning of year | 27,756,408 | 23,294,190 | ||||||
End of year | $29,368,174 | $27,756,408 |
16 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS A SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-161 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $13.60 | $12.44 | $12.03 | $10.14 | $10.00 | |||||||||||||||
Net investment income2 | 0.02 | 0.04 | 0.03 | 0.04 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.23 | 1.64 | 0.66 | 1.95 | 0.10 | |||||||||||||||
Total from investment operations | 1.25 | 1.68 | 0.69 | 1.99 | 0.14 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.03 | ) | (0.03 | ) | (0.04 | ) | (0.07 | ) | — | |||||||||||
From net realized gain | — | (0.49 | ) | (0.24 | ) | (0.03 | ) | — | ||||||||||||
Total distributions | (0.03 | ) | (0.52 | ) | (0.28 | ) | (0.10 | ) | — | |||||||||||
Net asset value, end of period | $14.82 | $13.60 | $12.44 | $12.03 | $10.14 | |||||||||||||||
Total return (%)3,4 | 9.20 | 14.25 | 5.80 | 19.73 | 1.40 | 5 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $9 | $8 | $6 | $6 | $4 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.80 | 1.80 | 1.83 | 2.34 | 2.62 | 6 | ||||||||||||||
Expenses including reductions | 1.18 | 1.18 | 1.17 | 1.18 | 1.19 | 6 | ||||||||||||||
Net investment income | 0.14 | 0.33 | 0.23 | 0.38 | 0.47 | 6,7 | ||||||||||||||
Portfolio turnover (%) | 23 | 19 | 19 | 21 | 13 |
1 | Period from 6-6-16 (commencement of operations) to 10-31-16. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
7 | A portion of income is presented unannualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 17 |
Table of Contents
|
CLASS C SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-161 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $13.38 | $12.31 | $11.96 | $10.11 | $10.00 | |||||||||||||||
Net investment income (loss)2 | (0.08 | ) | (0.05 | ) | (0.07 | ) | (0.04 | ) | 0.01 | |||||||||||
Net realized and unrealized gain (loss) on investments | 1.20 | 1.61 | 0.66 | 1.95 | 0.10 | |||||||||||||||
Total from investment operations | 1.12 | 1.56 | 0.59 | 1.91 | 0.11 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | — | — | — | (0.03 | ) | — | ||||||||||||||
From net realized gain | — | (0.49 | ) | (0.24 | ) | (0.03 | ) | — | ||||||||||||
Total distributions | — | (0.49 | ) | (0.24 | ) | (0.06 | ) | — | ||||||||||||
Net asset value, end of period | $14.50 | $13.38 | $12.31 | $11.96 | $10.11 | |||||||||||||||
Total return (%)3,4 | 8.37 | 13.36 | 4.98 | 18.90 | 1.10 | 5 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1 | $2 | $2 | $1 | $1 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 2.55 | 2.55 | 2.58 | 3.09 | 3.37 | 6 | ||||||||||||||
Expenses including reductions | 1.93 | 1.93 | 1.92 | 1.93 | 1.94 | 6 | ||||||||||||||
Net investment loss | (0.57 | ) | (0.42 | ) | (0.52 | ) | (0.37 | ) | (0.28 | )6,7 | ||||||||||
Portfolio turnover (%) | 23 | 19 | 19 | 21 | 13 |
1 | Period from 6-6-16 (commencement of operations) to 10-31-16. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
7 | A portion of income is presented unannualized. |
18 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS I SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-161 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $13.63 | $12.47 | $12.06 | $10.15 | $10.00 | |||||||||||||||
Net investment income2 | 0.06 | 0.07 | 0.06 | 0.07 | 0.05 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.24 | 1.64 | 0.66 | 1.95 | 0.10 | |||||||||||||||
Total from investment operations | 1.30 | 1.71 | 0.72 | 2.02 | 0.15 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.06 | ) | (0.06 | ) | (0.07 | ) | (0.08 | ) | — | |||||||||||
From net realized gain | — | (0.49 | ) | (0.24 | ) | (0.03 | ) | — | ||||||||||||
Total distributions | (0.06 | ) | (0.55 | ) | (0.31 | ) | (0.11 | ) | — | |||||||||||
Net asset value, end of period | $14.87 | $13.63 | $12.47 | $12.06 | $10.15 | |||||||||||||||
Total return (%)3 | 9.47 | 14.47 | 6.02 | 20.07 | 1.50 | 4 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $19 | $17 | $14 | $12 | $9 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.55 | 1.56 | 1.59 | 2.08 | 2.36 | 5 | ||||||||||||||
Expenses including reductions | 0.93 | 0.93 | 0.93 | 0.92 | 0.92 | 5 | ||||||||||||||
Net investment income | 0.39 | 0.57 | 0.47 | 0.64 | 0.74 | 5,6 | ||||||||||||||
Portfolio turnover (%) | 23 | 19 | 19 | 21 | 13 |
1 | Period from 6-6-16 (commencement of operations) to 10-31-16. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
6 | A portion of income is presented unannualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 19 |
Table of Contents
|
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-17 | 10-31-161 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $13.64 | $12.48 | $12.07 | $10.16 | $10.00 | |||||||||||||||
Net investment income2 | 0.07 | 0.09 | 0.07 | 0.08 | 0.06 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.24 | 1.63 | 0.66 | 1.95 | 0.10 | |||||||||||||||
Total from investment operations | 1.31 | 1.72 | 0.73 | 2.03 | 0.16 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.07 | ) | (0.07 | ) | (0.08 | ) | (0.09 | ) | — | |||||||||||
From net realized gain | — | (0.49 | ) | (0.24 | ) | (0.03 | ) | — | ||||||||||||
Total distributions | (0.07 | ) | (0.56 | ) | (0.32 | ) | (0.12 | ) | — | |||||||||||
Net asset value, end of period | $14.88 | $13.64 | $12.48 | $12.07 | $10.16 | |||||||||||||||
Total return (%)3 | 9.64 | 14.60 | 6.14 | 20.14 | 1.60 | 4 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1 | $2 | $1 | $1 | $1 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.44 | 1.45 | 1.49 | 1.99 | 2.26 | 5 | ||||||||||||||
Expenses including reductions | 0.82 | 0.82 | 0.82 | 0.81 | 0.81 | 5 | ||||||||||||||
Net investment income | 0.53 | 0.68 | 0.58 | 0.75 | 0.84 | 5,6 | ||||||||||||||
Portfolio turnover (%) | 23 | 19 | 19 | 21 | 13 |
1 | Period from 6-6-16 (commencement of operations) to 10-31-16. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
6 | A portion of income is presented unannualized. |
20 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Note 1 — Organization
John Hancock ESG All Cap Core Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply).
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds are valued at their respective NAVs each business day.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 21 |
Table of Contents
|
significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of October 31, 2020, all investments are categorized as Level 1 under the hierarchy described above.
Real estate investment trusts. The fund may invest in real estate investment trusts ((REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of the fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations
22 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $3,489.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2020, the fund has a short-term capital loss carryforward of $15,610 and a long-term capital loss carryforward of $390,490 available to offset future net realized capital gains. These carryforwards do not expire.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2020 and 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||||
Ordinary income | $97,644 | $139,089 | ||||||
Long-term capital gains | — | 869,526 | ||||||
Total | $97,644 | $1,008,615 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $48,147 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals.
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 23 |
Table of Contents
|
Note 3 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor, equivalent on an annual basis, to the sum of: (a) 0.750% of the first $250 million of the fund’s average daily net assets; (b) 0.725% of the next $250 million of the fund’s average daily net assets; (c) 0.700% of the next $500 million of the fund’s average daily net assets, and (d) 0.700% of the fund’s average daily net assets in excess of $1 billion. If net assets exceed $1 billion, then the advisory fee to be paid is 0.700% on all asset levels of average daily net assets. The Advisor has a subadvisory agreement with Trillium Asset Management, LLC. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to reduce its management fee for the fund, or if necessary, make payment to the fund, in an amount equal to the amount by which the fund’s expenses exceed 0.81% of average daily net assets. Expenses means all the expenses of the fund, excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly, and short dividend expense. The expense limitation expires on February 28, 2021, unless renewed by mutual agreement of the fund and Advisor based upon a determination of that this is appropriate under the circumstances at that time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $50,413 | |||
Class C | 10,499 | |||
Class I | 106,027 |
Class | Expense reduction | |||
Class R6 | $5,784 | |||
Total | $172,723 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 0.13% of the fund’s average daily net assets.
24 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | |||
Class A | 0.25% | |||
Class C | 1.00% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $9,890 for the year ended October 31, 2020. Of this amount, $1,612 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $8,278 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges ((CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, CDSCs received by the Distributor amounted to $33 for Class C shares. There were no CDSCs received by the Distributor for Class A shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $20,191 | $10,004 | ||||||
Class C | 17,505 | 2,179 | ||||||
Class I | — | 21,138 | ||||||
Class R6 | — | 130 | ||||||
Total | $37,696 | $33,451 |
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 25 |
Table of Contents
|
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5 — Fund share transactions
Transactions in fund shares for the years ended October 31, 2020 and 2019 were as follows:
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares | ||||||||||||||||
Sold | 97,634 | $1,373,508 | 52,278 | $671,614 | ||||||||||||
Distributions reinvested | 282 | 3,996 | 4,704 | 54,470 | ||||||||||||
Repurchased | (30,492) | (428,711) | (23,513) | (302,617) | ||||||||||||
Net increase | 67,424 | $948,793 | 33,469 | $423,467 | ||||||||||||
Class C shares | ||||||||||||||||
Sold | 12,305 | $161,476 | 10,690 | $134,532 | ||||||||||||
Distributions reinvested | — | — | 1,649 | 18,911 | ||||||||||||
Repurchased | (95,832) | (1,371,660) | (6,878) | (85,058) | ||||||||||||
Net increase (decrease) | (83,527) | $(1,210,184) | 5,461 | $68,385 | ||||||||||||
Class I shares | ||||||||||||||||
Sold | 117,104 | $1,684,115 | 153,588 | $1,954,164 | ||||||||||||
Distributions reinvested | 1,387 | 19,711 | 10,852 | 125,775 | ||||||||||||
Repurchased | (87,804) | (1,155,504) | (58,629) | (746,393) | ||||||||||||
Net increase | 30,687 | $548,322 | 105,811 | $1,333,546 | ||||||||||||
Class R6 shares | ||||||||||||||||
Sold | 20,528 | $286,067 | 25,610 | $326,982 | ||||||||||||
Distributions reinvested | 164 | 2,332 | 239 | 2,775 | ||||||||||||
Repurchased | (96,250) | (1,230,513) | (1,643) | (21,423) | ||||||||||||
Net increase (decrease) | (75,558) | $(942,114) | 24,206 | $308,334 | ||||||||||||
Total net increase (decrease) | (60,974) | $(655,183) | 168,947 | $2,133,732 |
Affiliates of the fund owned 67% and 71% of shares of Class A and Class I, respectively, on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $6,210,303 and $7,205,699, respectively, for the year ended October 31, 2020.
Note 7 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
26 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock ESG All Cap Core Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock ESG All Cap Core Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the Fund ) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statements of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the four years in the period ended October 31, 2020 and for the period June 6, 2016 (commencement of operations) through October 31, 2016 (collectively referred to as the” financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the four years in the period ended October 31, 2020 and for the period June 6, 2016 (commencement of operations) through October 31, 2016 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 27 |
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
28 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Continuation of Investment Advisory Agreement and Approval of Subadvisory Agreement
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Trillium Asset Management, LLC (the Subadvisor), for John Hancock ESG All Cap Core Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of New Subadvisory Agreement with Respect to Subadvisory Change in Control
At a telephonic meeting on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), approved the new Subadvisory Agreement with the Subadvisor subject to the change in control which later took place on June 30, 2020. The Board noted that the new Subadvisory Agreement reflected the change in control with the Subadvisor after it sold a majority ownership stake to Perpetual Limited. The Board also noted that under the new Subadvisory Agreement, the subadvisory fee that the Advisor currently pays to the Subadvisor would not change and no changes are expected in the Subadvisor’s personnel or operations, or its investment approach with respect to the fund’s portfolio management.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Independent Trustees, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect
1 On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the ”Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the“ 1940 Act”),that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 29 |
Table of Contents
|
to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadivisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment |
30 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund underperformed its benchmark index and peer group median for the one- and three-year periods ended December 31, 2019. The Board took into account management’s discussion of the factors that contributed to the fund’s performance for the benchmark index and peer group median for the one- and three-year periods including the impact of past and current market conditions on the fund’s strategy and management’s plans for the fund. The Board concluded that the fund’s performance is being monitored and reasonably addressed, where appropriate.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 31 |
Table of Contents
|
group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are lower than the peer group median and net total expenses for the fund are higher than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
32 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 33 |
Table of Contents
|
and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
34 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund is being monitored and reasonably addressed, where appropriate; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 35 |
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Hassell H. McClellan, Born: 1945 | 2012 | 196 |
Trustee and Chairperson of the Board
Director/Trustee, Virtus Funds (since 2008);Director, The Barnes Group (since 2010);Associate Professor, The Wallace E.Carroll School of Management, Boston College (retired 2013).Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 |
Trustee
Director, Island Commuter Corp.(marine transport).Trustee, John Hancock Collateral Trust (since 2014),Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015 | 196 |
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014- 2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance)) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 |
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 |
Trustee
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 |
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).
36 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Deborah C. Jackson, Born: 1952 | 2008 | 196 |
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946 | 2012 | 196 |
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994 | 196 |
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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 | 196 |
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 37 |
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Gregory A. Russo, Born: 1949 | 2009 | 196 |
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 Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Andrew G. Arnott, Born: 1971 | 2017 | 196 |
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
38 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Principal officers who are not Trustees
| ||||
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years
| Officer
| |||
Charles A. Rizzo, Born: 1957 | 2007 | |||
Chief Financial Officer | ||||
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
| |||
Salvatore Schiavone, Born: 1965 | 2010 | |||
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 | |||
Chief Legal Officer and Secretary | ||||
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009). |
| |||
Trevor Swanberg, Born: 1979 | 2020 | |||
Chief Compliance Officer | ||||
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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). |
|
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023. |
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291. |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
| ANNUAL REPORT | JOHN HANCOCK ESG ALL CAP CORE FUND | 39 |
Table of Contents
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
James M. Oates*
Frances G. Rathke1,*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Trillium Asset Management, LLC
Portfolio Managers
Elizabeth R. Levy, CFA
Cheryl I. Smith, Ph.D., CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
* | Member of the Audit Committee |
† | Non-Independent Trustee |
1 | Appointed as Independent Trustee effective as of September 15, 2020 |
2 | Effective July 31, 2020 |
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407 | ||||
40 | JOHN HANCOCK ESG ALL CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
Protect yourself by using eDelivery
|
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
◾ |
Added security: Password protection helps you safely retrieve documents online | |||
◾ |
Save time: Receive instant email notification once statements are available | |||
◾ |
Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling | jhinvestments.com/login |
SIGN UP FOR EDELIVERY TODAY!
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report |
Table of Contents
Get your questions answered by using our shareholder resources
|
ONLINE
◾ |
Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |
◾ |
Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |
◾ |
Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |
◾ |
Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. |
BY PHONE
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00A.M. to 7:00P.M., and Friday, 8:00A.M. to 6:00P.M., Eastern time. We’re here to help!
Not part of the shareholder report |
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock ESG All Cap Core Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399326 | 466A 10/20 | |||
12/2020 |
Table of Contents
Table of Contents
Dear shareholder,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. In response to the pandemic-led shock, the U.S. Federal Reserve and the government worked quickly to shore up the economy and equity markets began to rise, particularly large-cap U.S. growth stocks, during the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain areas have been reinstated, affecting the level of unemployment and the pace of hiring. Consumer spending also remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G.Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
John Hancock
ESG Large Cap Core Fund
Table of contents | ||||||
2 | Your fund at a glance | |||||
4 | Manager’s discussion of fund performance | |||||
6 | A look at performance | |||||
8 | ||||||
10 | ||||||
14 | ||||||
17 | ||||||
21 | ||||||
28 | ||||||
29 | ||||||
30 | Continuation of investment advisory agreement and approval of subadvisory agreement | |||||
37 | ||||||
41 |
|
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 1 |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
2 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
The fund experienced weakness from sector positioning | ||||
The fund trailed its benchmark, the S&P 500 Index, largely due to an unhelpful overweight in the lagging real estate sector, even as an underweight in the weak-performing energy category contributed. | ||||
Security selection contributed | ||||
The fund benefited from favorable stock picking in the industrials and information technology sectors, which was partly offset by negative selection in healthcare and consumer discretionary. | ||||
Monitoring key ESG trends | ||||
At period end, we were paying particular attention to companies we believed could benefit from efforts to address climate change, as well as those we believed were sufficiently focused on racial justice issues. |
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
|
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 3 |
Table of Contents
Manager’s discussion of fund performance
|
How did the fund perform during the 12 months ended October 31, 2020?
The fund modestly underperformed its benchmark, the S&P 500 Index, primarily due to sector allocation. The overweight in the real estate sector, which lagged the market, was a notable detractor; however, a relative underweight in the weak-performing energy sector contributed to returns. In the year’s third quarter, we fully eliminated the fund’s exposure to this sector, as we saw better investment opportunities elsewhere. Security selection was positive due to strong picks in the industrials and information technology sectors. Stock picking in healthcare and consumer discretionary partly offset negatives.
Which stocks contributed most to relative outperformance?
The fund’s top contributor was electronic payments company PayPal Holdings, Inc. This company has been among the big beneficiaries of a global shift from cash to electronic payments, a shift that has accelerated with the spread of COVID-19. Another contributor was Target Corp., a discount retailer that was well positioned in the early days of the pandemic. The company benefited from its ability to sell groceries and other goods when many of its competitors were forced to temporarily close. A successful transition to online ordering with in-person pickup and delivery services further helped Target thrive in the lockdown. Also adding value was Tractor Supply Company. Like Target, this rural-focused retail chain
TOP 10 HOLDINGS | ||||||||
AS OF 10/31/2020 (% of net assets) | ||||||||
| ||||||||
Apple, Inc. | 6.4 | |||||||
| ||||||||
Microsoft Corp. | 6.0 | |||||||
| ||||||||
Alphabet, Inc., Class A | 4.9 | |||||||
| ||||||||
Mastercard, Inc., Class A | 3.0 | |||||||
| ||||||||
Target Corp. | 2.7 | |||||||
| ||||||||
Adobe, Inc. | 2.5 | |||||||
| ||||||||
PayPal Holdings, Inc. | 2.4 | |||||||
| ||||||||
NIKE, Inc., Class B | 2.3 | |||||||
| ||||||||
Trane Technologies PLC | 2.2 | |||||||
| ||||||||
Verizon Communications, Inc. | 2.1 | |||||||
| ||||||||
TOTAL | 34.5 | |||||||
Cash and cash equivalents are not included. | ||||||||
|
4 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
benefited from its status as an essential retailer during the lockdown. Tractor Supply also saw increased sales as customers, looking to improve their homes, took advantage of the company’s home and garden offerings. | MANAGED BY
Cheryl I. Smith, Ph.D., CFA Elizabeth R. Levy, CFA
| |
Which stocks detracted most? |
One notable relative detractor was online retail giant Amazon.com, Inc., a strong-performing benchmark component the fund didn’t own for two reasons. First, Amazon’s labor and environmental practices don’t currently meet our standards. Second, the stock remained unattractively valued, in our opinion. KeyCorp was another detractor. Along with other regional banks, KeyCorp struggled amid lower interest rates, which tend to reduce the lending income banks can generate. Investors’ increased concern about customers’ credit quality also weighed on KeyCorp and other banks. Oil and gas pipeline company ONEOK, Inc. also detracted, as declining energy commodity prices weighed on the stock. We sold the fund’s holding in ONEOK during the period.
From an environmental, social, and governance perspective, what trends were you monitoring?
We evaluate companies we believe can benefit from the battle against climate change. Strong policy support in the European Union, coupled with rapid growth of the wind and solar energy industry in the United States, provided a favorable tailwind for many businesses.
Can you tell us about a recent change to the ownership of your company?
Effective June 30, 2020, Trillium Asset Management, LLC was purchased by Perpetual Limited. We will continue to manage the fund under the Trillium name.
The views expressed in this report are exclusively those of Cheryl I. Smith, Ph.D., CFA, and Elizabeth R. Levy, CFA, Trillium Asset Management, LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 5 |
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | |||||||||||||||||||||
1-year | Since inception (6-6-16) | Since inception (6-6-16) | ||||||||||||||||||||
Class A | 3.84 | 10.65 | 56.16 | |||||||||||||||||||
Class C | 7.47 | 11.12 | 59.13 | |||||||||||||||||||
Class I1 | 9.58 | 12.23 | 66.24 | |||||||||||||||||||
Class R61 | 9.75 | 12.36 | 67.10 | |||||||||||||||||||
Index† | 9.71 | 12.79 | 69.93 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I and Class R6 shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R6 | |||||||
Gross (%) | 1.48 | 2.23 | 1.23 | 1.12 | ||||||
Net (%) | 1.18 | 1.93 | 0.93 | 0.82 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the S&P 500 Index. |
See the following page for footnotes.
6 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock ESG Large Cap Core Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the S&P 500 Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||||
Class C2 | 6-6-16 | 15,913 | 15,913 | 16,993 | ||||||||||||
Class I1 | 6-6-16 | 16,624 | 16,624 | 16,993 | ||||||||||||
Class R61 | 6-6-16 | 16,710 | 16,710 | 16,993 |
The S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | For certain types of investors, as described in the fund’s prospectus. |
2 | The contingent deferred sales charge is not applicable. |
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 7 |
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
8 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 5-1-2020 | Ending value on 10-31-2020 |
Expenses paid during period ended 10-31-20201 | Annualized expense ratio | |||||||||||||||
Class A | Actual expenses/actual returns | $1,000.00 | $1,156.10 | $ 6.40 | 1.18% | |||||||||||||
Hypothetical example | 1,000.00 | 1,019.20 | 5.99 | 1.18% | ||||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,151.70 | 10.44 | 1.93% | |||||||||||||
Hypothetical example | 1,000.00 | 1,015.40 | 9.78 | 1.93% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,157.30 | 5.04 | 0.93% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.50 | 4.72 | 0.93% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,157.90 | 4.45 | 0.82% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.00 | 4.17 | 0.82% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 9 |
Table of Contents
|
AS OF 10-31-20
Shares | Value | |||||
Common stocks 98.5% | $64,440,890 | |||||
(Cost $48,537,023) | ||||||
Communication services 8.0% | 5,243,196 | |||||
Diversified telecommunication services 2.1% | ||||||
Verizon Communications, Inc. | 24,139 | 1,375,682 | ||||
Interactive media and services 4.9% | ||||||
Alphabet, Inc., Class A (A) | 1,998 | 3,228,988 | ||||
Media 1.0% | ||||||
The New York Times Company, Class A | 16,100 | 638,526 | ||||
Consumer discretionary 12.5% | 8,136,402 | |||||
Hotels, restaurants and leisure 1.3% | ||||||
Starbucks Corp. | 9,662 | 840,208 | ||||
Internet and direct marketing retail 1.0% | ||||||
Booking Holdings, Inc. (A) | 418 | 678,205 | ||||
Multiline retail 2.7% | ||||||
Target Corp. | 11,330 | 1,724,653 | ||||
Specialty retail 5.2% | ||||||
The Home Depot, Inc. | 4,345 | 1,158,855 | ||||
The TJX Companies, Inc. | 22,765 | 1,156,462 | ||||
Tractor Supply Company | 8,324 | 1,108,840 | ||||
Textiles, apparel and luxury goods 2.3% | ||||||
NIKE, Inc., Class B | 12,235 | 1,469,179 | ||||
Consumer staples 7.0% | 4,592,801 | |||||
Food and staples retailing 2.9% | ||||||
Costco Wholesale Corp. | 3,040 | 1,087,165 | ||||
Sysco Corp. | 14,424 | 797,791 | ||||
Food products 1.0% | ||||||
McCormick & Company, Inc. | 3,754 | 677,635 | ||||
Household products 1.5% | ||||||
The Procter & Gamble Company | 7,316 | 1,003,024 | ||||
Personal products 1.6% | ||||||
Unilever NV, NYRS | 18,161 | 1,027,186 | ||||
Financials 8.5% | 5,572,965 | |||||
Banks 5.2% | ||||||
Bank of America Corp. | 48,677 | 1,153,645 | ||||
First Republic Bank | 7,507 | 946,933 | ||||
KeyCorp | 66,594 | 864,390 | ||||
The PNC Financial Services Group, Inc. | 3,806 | 425,815 |
10 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||
Financials (continued) | ||||||
Capital markets 1.0% | ||||||
The Bank of New York Mellon Corp. | 19,133 | $657,410 | ||||
Insurance 2.3% | ||||||
Aflac, Inc. | 15,501 | 526,259 | ||||
The Travelers Companies, Inc. | 8,272 | 998,513 | ||||
Health care 13.1% | 8,566,297 | |||||
Health care equipment and supplies 4.5% | ||||||
Baxter International, Inc. | 15,432 | 1,197,060 | ||||
Becton, Dickinson and Company | 2,068 | 477,977 | ||||
Medtronic PLC | 6,239 | 627,456 | ||||
Stryker Corp. | 3,023 | 610,676 | ||||
Health care providers and services 3.1% | ||||||
Anthem, Inc. | 3,336 | 910,061 | ||||
CVS Health Corp. | 10,705 | 600,443 | ||||
Quest Diagnostics, Inc. | 4,415 | 539,248 | ||||
Life sciences tools and services 2.2% | ||||||
Illumina, Inc. (A) | 1,773 | 518,957 | ||||
IQVIA Holdings, Inc. (A) | 6,083 | 936,721 | ||||
Pharmaceuticals 3.3% | ||||||
AstraZeneca PLC, ADR | 17,621 | 883,869 | ||||
Merck & Company, Inc. | 16,804 | 1,263,829 | ||||
Industrials 11.3% | 7,413,915 | |||||
Air freight and logistics 1.6% | ||||||
United Parcel Service, Inc., Class B | 6,726 | 1,056,722 | ||||
Building products 2.2% | ||||||
Trane Technologies PLC | 11,000 | 1,460,250 | ||||
Commercial services and supplies 0.9% | ||||||
Waste Management, Inc. | 5,613 | 605,699 | ||||
Electrical equipment 3.0% | ||||||
Eaton Corp. PLC | 9,889 | 1,026,379 | ||||
Rockwell Automation, Inc. | 3,840 | 910,541 | ||||
Machinery 2.6% | ||||||
Deere & Company | 4,797 | 1,083,690 | ||||
Xylem, Inc. | 6,934 | 604,229 | ||||
Road and rail 1.0% | ||||||
JB Hunt Transport Services, Inc. | 5,474 | 666,405 | ||||
Information technology 30.3% | 19,821,760 | |||||
Communications equipment 0.8% | ||||||
Cisco Systems, Inc. | 13,607 | 488,491 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 11 |
Table of Contents
|
Shares | Value | |||||||||
Information technology (continued) | ||||||||||
IT services 5.4% | ||||||||||
Mastercard, Inc., Class A | 6,951 | $2,006,337 | ||||||||
PayPal Holdings, Inc. (A) | 8,359 | 1,555,861 | ||||||||
Semiconductors and semiconductor equipment 5.6% | ||||||||||
ASML Holding NV, NYRS | 2,138 | 772,267 | ||||||||
First Solar, Inc. (A) | 6,222 | 541,594 | ||||||||
NVIDIA Corp. | 1,582 | 793,152 | ||||||||
NXP Semiconductors NV | 4,171 | 563,586 | ||||||||
Texas Instruments, Inc. | 6,656 | 962,391 | ||||||||
Software 12.1% | ||||||||||
Adobe, Inc. (A) | 3,597 | 1,608,219 | ||||||||
Autodesk, Inc. (A) | 5,022 | 1,182,882 | ||||||||
Microsoft Corp. | 19,290 | 3,905,646 | ||||||||
Palo Alto Networks, Inc. (A) | 3,354 | 741,871 | ||||||||
salesforce.com, Inc. (A) | 2,086 | 484,515 | ||||||||
Technology hardware, storage and peripherals 6.4% | ||||||||||
Apple, Inc. | 38,719 | 4,214,948 | ||||||||
Materials 2.1% | 1,383,852 | |||||||||
Chemicals 2.1% | ||||||||||
Ecolab, Inc. | 4,049 | 743,356 | ||||||||
International Flavors & Fragrances, Inc. | 6,239 | 640,496 | ||||||||
Real estate 3.8% | 2,485,017 | |||||||||
Equity real estate investment trusts 3.2% | ||||||||||
American Tower Corp. | 4,814 | 1,105,535 | ||||||||
AvalonBay Communities, Inc. | 2,312 | 321,669 | ||||||||
Prologis, Inc. | 6,761 | 670,691 | ||||||||
Real estate management and development 0.6% | ||||||||||
CBRE Group, Inc., Class A (A) | 7,681 | 387,122 | ||||||||
Utilities 1.9% | 1,224,685 | |||||||||
Electric utilities 0.8% | ||||||||||
Avangrid, Inc. | 9,871 | 487,035 | ||||||||
Water utilities 1.1% | ||||||||||
American Water Works Company, Inc. | 4,901 | 737,650 | ||||||||
Yield (%) | Shares | Value | ||||||||
Short-term investments 1.0% | $633,727 | |||||||||
(Cost $633,727) | ||||||||||
Short-term funds 1.0% | 633,727 | |||||||||
Federated Government Obligations Fund, Institutional Class | 0.0100 | (B) | 633,727 | 633,727 |
12 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Total investments (Cost $49,170,750) 99.5% | $ | 65,074,617 | ||
Other assets and liabilities, net 0.5% | 324,692 | |||
Total net assets 100.0% | $ | 65,399,309 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
Security Abbreviations and Legend
ADR | American Depositary Receipt | |
NYRS | New York Registry Shares | |
(A) | Non-income producing security. | |
(B) | The rate shown is the annualized seven-day yield as of 10-31-20. |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $49,335,591. Net unrealized appreciation aggregated to $15,739,026, of which $17,235,883 related to gross unrealized appreciation and $1,496,857 related to gross unrealized depreciation.
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 13 |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 |
| |||
Assets | ||||
Unaffiliated investments, at value (Cost $49,170,750) | $65,074,617 | |||
Dividends and interest receivable | 59,473 | |||
Receivable for fund shares sold | 311,412 | |||
Receivable from affiliates | 499 | |||
Other assets | 32,246 | |||
Total assets | 65,478,247 | |||
Liabilities | ||||
Payable for fund shares repurchased | 327 | |||
Payable to affiliates | ||||
Accounting and legal services fees | 2,597 | |||
Transfer agent fees | 6,635 | |||
Trustees’ fees | 61 | |||
Other liabilities and accrued expenses | 69,318 | |||
Total liabilities | 78,938 | |||
Net assets | $65,399,309 | |||
Net assets consist of | ||||
Paid-in capital | $47,769,133 | |||
Total distributable earnings (loss) | 17,630,176 | |||
Net assets | $65,399,309 | |||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class A ($5,231,486 ÷ 334,712 shares)1 | $15.63 | |||
Class C ($1,692,742 ÷ 110,362 shares)1 | $15.34 | |||
Class I ($57,501,279 ÷ 3,669,000 shares) | $15.67 | |||
Class R6 ($973,802 ÷ 62,077 shares) | $15.69 | |||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95%)2 | $16.45 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
14 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20
|
| |||
Investment income | ||||
Dividends | $1,011,102 | |||
Interest | 5,505 | |||
Less foreign taxes withheld | (971 | ) | ||
Total investment income | 1,015,636 | |||
Expenses | ||||
Investment management fees | 481,491 | |||
Distribution and service fees | 46,081 | |||
Accounting and legal services fees | 11,875 | |||
Transfer agent fees | 78,393 | |||
Trustees’ fees | 1,152 | |||
Custodian fees | 32,523 | |||
State registration fees | 71,213 | |||
Printing and postage | 22,929 | |||
Professional fees | 61,836 | |||
Other | 15,598 | |||
Total expenses | 823,091 | |||
Less expense reductions | (178,551 | ) | ||
Net expenses | 644,540 | |||
Net investment income | 371,096 | |||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments | 1,710,254 | |||
1,710,254 | ||||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments | 3,164,355 | |||
3,164,355 | ||||
Net realized and unrealized gain | 4,874,609 | |||
Increase in net assets from operations | $5,245,705 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 15 |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS |
| |||||||
Year ended |
Year ended | |||||||
10-31-20 | 10-31-19 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income | $371,096 | $414,551 | ||||||
Net realized gain | 1,710,254 | 556,503 | ||||||
Change in net unrealized appreciation (depreciation) | 3,164,355 | 7,312,289 | ||||||
Increase in net assets resulting from operations | 5,245,705 | 8,283,343 | ||||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (126,313 | ) | (132,155 | ) | ||||
Class C | (20,436 | ) | (27,487 | ) | ||||
Class I | (776,655 | ) | (966,307 | ) | ||||
Class R6 | (28,490 | ) | (35,007 | ) | ||||
Total distributions | (951,894 | ) | (1,160,956 | ) | ||||
From fund share transactions | (3,736,077 | ) | 5,982,348 | |||||
Total increase | 557,734 | 13,104,735 | ||||||
Net assets | ||||||||
Beginning of year | 64,841,575 | 51,736,840 | ||||||
End of year | $65,399,309 | $64,841,575 |
16 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS A SHARES Period ended |
10-31-20 |
10-31-19 |
10-31-18 |
10-31-17 |
10-31-161 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $14.48 | $12.79 | $11.81 | $10.11 | $10.00 | |||||||||||||||
Net investment income2 | 0.06 | 0.07 | 0.06 | 0.07 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.28 | 1.88 | 1.04 | 1.71 | 0.07 | |||||||||||||||
Total from investment operations | 1.34 | 1.95 | 1.10 | 1.78 | 0.11 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.07 | ) | (0.05 | ) | (0.03 | ) | (0.08 | ) | — | |||||||||||
From net realized gain | (0.12 | ) | (0.21 | ) | (0.09 | ) | — | — | ||||||||||||
Total distributions | (0.19 | ) | (0.26 | ) | (0.12 | ) | (0.08 | ) | — | |||||||||||
Net asset value, end of period | $15.63 | $14.48 | $12.79 | $11.81 | $10.11 | |||||||||||||||
Total return (%)3,4 | 9.29 | 15.59 | 9.41 | 17.68 | 1.10 | 5 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $5 | $9 | $6 | $6 | $4 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.46 | 1.47 | 1.55 | 2.23 | 2.73 | 6 | ||||||||||||||
Expenses including reductions | 1.18 | 1.18 | 1.17 | 1.18 | 1.19 | 6 | ||||||||||||||
Net investment income | 0.43 | 0.54 | 0.46 | 0.59 | 0.64 | 6,7 | ||||||||||||||
Portfolio turnover (%) | 30 | 21 | 22 | 17 | 23 |
1 | Period from 6-6-16 (commencement of operations) to 10-31-16. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
7 | A portion of income is presented unannualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 17 |
Table of Contents
|
CLASS C SHARES Period ended |
10-31-20 |
10-31-19 |
10-31-18 |
10-31-17 |
10-31-161 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $14.26 | $12.64 | $11.73 | $10.08 | $10.00 | |||||||||||||||
Net investment income (loss)2 | (0.05 | ) | (0.03 | ) | (0.04 | ) | (0.02 | ) | 0.01 | |||||||||||
Net realized and unrealized gain (loss) on investments | 1.25 | 1.86 | 1.04 | 1.70 | 0.07 | |||||||||||||||
Total from investment operations | 1.20 | 1.83 | 1.00 | 1.68 | 0.08 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | — | — | — | (0.03 | ) | — | ||||||||||||||
From net realized gain | (0.12 | ) | (0.21 | ) | (0.09 | ) | — | — | ||||||||||||
Total distributions | (0.12 | ) | (0.21 | ) | (0.09 | ) | (0.03 | ) | — | |||||||||||
Net asset value, end of period | $15.34 | $14.26 | $12.64 | $11.73 | $10.08 | |||||||||||||||
Total return (%)3,4 | 8.47 | 14.78 | 8.61 | 16.75 | 0.80 | 5 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $2 | $1 | $1 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 2.21 | 2.22 | 2.30 | 2.98 | 3.48 | 6 | ||||||||||||||
Expenses including reductions | 1.93 | 1.93 | 1.92 | 1.93 | 1.94 | 6 | ||||||||||||||
Net investment loss | (0.34 | ) | (0.21 | ) | (0.30 | ) | (0.16 | ) | (0.11 | )6,7 | ||||||||||
Portfolio turnover (%) | 30 | 21 | 22 | 17 | 23 |
1 | Period from 6-6-16 (commencement of operations) to 10-31-16. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
7 | A portion of income is presented unannualized. |
18 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS I SHARES Period ended |
10-31-20 |
10-31-19 |
10-31-18 |
10-31-17 |
10-31-161 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $14.51 | $12.82 | $11.84 | $10.12 | $10.00 | |||||||||||||||
Net investment income2 | 0.10 | 0.11 | 0.09 | 0.08 | 0.05 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.28 | 1.87 | 1.04 | 1.73 | 0.07 | |||||||||||||||
Total from investment operations | 1.38 | 1.98 | 1.13 | 1.81 | 0.12 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.10 | ) | (0.08 | ) | (0.06 | ) | (0.09 | ) | — | |||||||||||
From net realized gain | (0.12 | ) | (0.21 | ) | (0.09 | ) | — | — | ||||||||||||
Total distributions | (0.22 | ) | (0.29 | ) | (0.15 | ) | (0.09 | ) | — | |||||||||||
Net asset value, end of period | $15.67 | $14.51 | $12.82 | $11.84 | $10.12 | |||||||||||||||
Total return (%)3 | 9.58 | 15.86 | 9.64 | 18.02 | 1.20 | 4 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $58 | $51 | $42 | $30 | $9 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.21 | 1.23 | 1.31 | 1.97 | 2.47 | 5 | ||||||||||||||
Expenses including reductions | 0.93 | 0.93 | 0.93 | 0.92 | 0.92 | 5 | ||||||||||||||
Net investment income | 0.64 | 0.79 | 0.69 | 0.69 | 0.88 | 5,6 | ||||||||||||||
Portfolio turnover (%) | 30 | 21 | 22 | 17 | 23 |
1 | Period from 6-6-16 (commencement of operations) to 10-31-16. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
6 | A portion of income is presented unannualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 19 |
Table of Contents
|
CLASS R6 SHARES Period ended |
10-31-20 |
10-31-19 |
10-31-18 |
10-31-17 |
10-31-161 | |||||||||||||||
Per share operating performance | ||||||||||||||||||||
Net asset value, beginning of period | $14.52 | $12.83 | $11.85 | $10.13 | $10.00 | |||||||||||||||
Net investment income2 | 0.12 | 0.12 | 0.10 | 0.11 | 0.06 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.28 | 1.87 | 1.04 | 1.71 | 0.07 | |||||||||||||||
Total from investment operations | 1.40 | 1.99 | 1.14 | 1.82 | 0.13 | |||||||||||||||
Less distributions | ||||||||||||||||||||
From net investment income | (0.11 | ) | (0.09 | ) | (0.07 | ) | (0.10 | ) | — | |||||||||||
From net realized gain | (0.12 | ) | (0.21 | ) | (0.09 | ) | — | — | ||||||||||||
Total distributions | (0.23 | ) | (0.30 | ) | (0.16 | ) | (0.10 | ) | — | |||||||||||
Net asset value, end of period | $15.69 | $14.52 | $12.83 | $11.85 | $10.13 | |||||||||||||||
Total return (%)3 | 9.75 | 15.97 | 9.76 | 18.09 | 1.30 | 4 | ||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||
Net assets, end of period (in millions) | $1 | $2 | $1 | $1 | $1 | |||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||
Expenses before reductions | 1.10 | 1.12 | 1.20 | 1.87 | 2.38 | 5 | ||||||||||||||
Expenses including reductions | 0.82 | 0.82 | 0.82 | 0.81 | 0.81 | 5 | ||||||||||||||
Net investment income | 0.77 | 0.90 | 0.80 | 0.97 | 0.99 | 5,6 | ||||||||||||||
Portfolio turnover (%) | 30 | 21 | 22 | 17 | 23 |
1 | Period from 6-6-16 (commencement of operations) to 10-31-16. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
6 | A portion of income is presented unannualized. |
20 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Note 1 — Organization
John Hancock ESG Large Cap Core Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply).
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds are valued at their respective NAVs each business day.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 21 |
Table of Contents
|
significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of October 31, 2020, all investments are categorized as Level 1 under the hierarchy described above.
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of the fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex- date, except for dividends of certain foreign securities where the dividend may not be known until after the ex- date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non- cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations
22 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $3,613.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class- specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex- date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2020 and 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||||
Ordinary income | $396,887 | $528,483 | ||||||
Long-term capital gains | 555,007 | 632,473 | ||||||
Total | $951,894 | $1,160,956 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $290,658 of undistributed ordinary income and $1,600,493 of undistributed long-term capital gains.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book- tax differences are primarily attributable to wash sale loss deferrals and treating a portion of the proceeds from redemptions as distributions for tax purposes.
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 23 |
Table of Contents
|
Note 3 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: a) 0.750% of the first $250 million of the fund’s average daily net assets; b) 0.725% of the next $250 million of the fund’s average daily net assets; c) 0.700% of the next $500 million of the fund’s average daily net assets; and d) 0.700% of the fund’s average daily net assets in excess of $1 billion. If net assets exceed $1 billion, then the advisory fee to be paid is 0.700% on all asset levels of average daily net assets. The Advisor has a subadvisory agreement with Trillium Asset Management, LLC. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.81% of average daily net assets of the fund. Expenses of the fund means all expenses of the fund, excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class- specific expenses, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly, and short dividend expense. The expense limitation expires on February 28, 2021, unless renewed by mutual agreement of the Advisor and the fund based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $22,585 | |||
Class C | 6,868 | |||
Class I | 145,877 |
Class | Expense reduction | |||
Class R6 | $3,221 | |||
Total | $178,551 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 0.47% of the fund’s average daily net assets.
24 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | |||
Class A | 0.25 | % | ||
Class C | 1.00 | % |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $14,568 for the year ended October 31, 2020. Of this amount, $2,395 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $12,173 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, there were no CDSCs received by the Distributor for Class A and Class C shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $20,904 | $10,440 | ||||||
Class C | 25,177 | 3,130 | ||||||
Class I | — | 64,667 | ||||||
Class R6 | — | 156 | ||||||
Total | $46,081 | $78,393 |
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 25 |
Table of Contents
|
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5—Fund share transactions
Transactions in fund shares for the years ended October 31, 2020 and 2019 were as follows:
Year Ended 10-31-20
| Year Ended 10-31-19
| |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares | ||||||||||||||||
Sold | 285,756 | $4,057,555 | 211,879 | $2,880,389 | ||||||||||||
Distributions reinvested | 2,584 | 38,557 | 2,034 | 24,757 | ||||||||||||
Repurchased | (607,335 | ) | (8,774,789 | ) | (60,947 | ) | (825,851 | ) | ||||||||
Net increase (decrease) | (318,995 | ) | $(4,678,677 | ) | 152,966 | $2,079,295 | ||||||||||
Class C shares | ||||||||||||||||
Sold | 60,115 | $861,858 | 51,342 | $634,793 | ||||||||||||
Distributions reinvested | 637 | 9,389 | 711 | 8,570 | ||||||||||||
Repurchased | (116,588 | ) | (1,768,118 | ) | (8,096 | ) | (104,790 | ) | ||||||||
Net increase (decrease) | (55,836 | ) | $(896,871 | ) | 43,957 | $538,573 | ||||||||||
Class I shares | ||||||||||||||||
Sold | 847,303 | $12,574,040 | 1,135,273 | $15,185,714 | ||||||||||||
Distributions reinvested | 16,769 | 250,361 | 22,482 | 273,605 | ||||||||||||
Repurchased | (725,824 | ) | (10,171,451 | ) | (926,533 | ) | (12,175,390 | ) | ||||||||
Net increase | 138,248 | $2,652,950 | 231,222 | $3,283,929 | ||||||||||||
Class R6 shares | ||||||||||||||||
Sold | 39,740 | $538,213 | 6,846 | $91,746 | ||||||||||||
Distributions reinvested | 501 | 7,482 | 653 | 7,949 | ||||||||||||
Repurchased | (100,119 | ) | (1,359,174 | ) | (1,350 | ) | (19,144 | ) | ||||||||
Net increase (decrease) | (59,878 | ) | $(813,479 | ) | 6,149 | $80,551 | ||||||||||
Total net increase (decrease) | (296,461 | ) | $(3,736,077 | ) | 434,294 | $5,982,348 |
Affiliates of the fund owned 66% of shares of Class I on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $19,148,127 and $22,880,018, respectively, for the year ended October 31, 2020.
Note 7 — Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to
26 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors.
Note 8 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 27 |
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock ESG Large Cap Core Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock ESG Large Cap Core Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statements of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the four years in the period ended October 31, 2020 and for the period June 6, 2016 (commencement of operations) through October 31, 2016 (collectively referred to as the ”financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the four years in the period ended October 31, 2020 and for the period June 6, 2016 (commencement of operations) through October 31, 2016 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
28 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund paid $767,238 in long term capital gain dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 29 |
Table of Contents
|
Continuation of Investment Advisory Agreement and Approval of Subadvisory Agreement
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Trillium Asset Management, LLC (the Subadvisor), for John Hancock ESG Large Cap Core Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of New Subadvisory Agreement with Respect to Subadvisory Change in Control
At a telephonic meeting on June 23- 25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), approved the new Subadvisory Agreement with the Subadvisor subject to the change in control which later took place on June 30, 2020. The Board noted that the new Subadvisory Agreement reflected the change in control with the Subadvisor after it sold a majority ownership stake to Perpetual Limited. The Board also noted that under the new Subadvisory Agreement, the subadvisory fee that the Advisor currently pays to the Subadvisor would not change and no changes are expected in the Subadvisor’s personnel or operations, or its investment approach with respect to the fund’s portfolio management.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Independent Trustees, reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect
1On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the ”Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
30 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment |
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 31 |
Table of Contents
|
performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund underperformed its benchmark index for the one- and three-year periods ended December 31, 2019. The Board also noted that the fund outperformed its peer group median for the one- and three-year periods ended December 31, 2019. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to the peer group median for the one- and three-year periods. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller
32 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are lower than the peer group median and net total expenses for the fund are higher than the peer group median.
The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 33 |
Table of Contents
|
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program
34 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 35 |
Table of Contents
|
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
36 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years | since1 | Trustee | ||
Hassell H. McClellan, Born: 1945 | 2012 | 196 |
Trustee and Chairperson of the Board
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 |
Trustee
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015 | 196 |
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 |
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 |
Trustee
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 |
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).
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 37 |
Table of Contents
|
Independent Trustees (continued) | ||||
Name, year of birth | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years | since1 | Trustee | ||
Deborah C. Jackson, Born: 1952 | 2008 | 196 |
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946 | 2012 | 196 |
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000- 2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994 | 196 |
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000- 2014); 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 | 196 |
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high- end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
38 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Gregory A. Russo, Born: 1949 | 2009 | 196 |
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 Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Andrew G. Arnott, Born: 1971 | 2017 | 196 |
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 39 |
Table of Contents
|
Principal officers who are not Trustees | ||||
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years
| Officer
| |||
Charles A. Rizzo, Born: 1957 | 2007 | |||
Chief Financial Officer |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
Salvatore Schiavone, Born: 1965 | 2010 |
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 | |||
Chief Legal Officer and Secretary |
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).
Trevor Swanberg, Born: 1979 | 2020 | |||
Chief Compliance Officer |
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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).
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023. |
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291. |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
40 | JOHN HANCOCK ESG LARGE CAP CORE FUND | ANNUAL REPORT |
|
Table of Contents
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
James M. Oates*
Frances G. Rathke1,*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
* | Member of the Audit Committee |
† | Non-Independent Trustee |
1 | Appointed as Independent Trustee effective as of September 15, 2020 |
2 | Effective July 31, 2020 |
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Trillium Asset Management, LLC
Portfolio Managers
Elizabeth R. Levy, CFA
CherylI. Smith, Ph.D., CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407 | ||||
| ANNUAL REPORT | JOHN HANCOCK ESG LARGE CAP CORE FUND | 41 |
Table of Contents
Protect yourself by using eDelivery
|
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
◾ |
Added security: Password protection helps you safely retrieve documents online | |||
◾ |
Save time: Receive instant email notification once statements are available | |||
◾ |
Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling |
SIGN UP FOR EDELIVERY TODAY!
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report |
Table of Contents
Get your questions answered by using our shareholder resources
|
ONLINE
◾ |
Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |
◾ |
Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |
◾ |
Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |
◾ |
Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. |
BY PHONE
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00A.M. to 7:00P.M., and Friday, 8:00A.M. to 6:00P.M., Eastern time. We’re here to help!
Not part of the shareholder report |
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock ESG Large Cap Core Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399334 | 467A 10/20 | |||
12/2020 |
Table of Contents
Table of Contents
Dear shareholders,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. The governments of many nations worked to shore up their economies, and equity markets began to rise from their first-quarter sell-off; this comeback gathered momentum for the remainder of the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain parts of the world have been reinstated and consumer spending remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
John Hancock
ESG International Equity Fund
Table of contents | ||||||
2 | Your fund at a glance | |||||
4 | Manager’s discussion of fund performance | |||||
6 | A look at performance | |||||
8 | ||||||
10 | ||||||
13 | ||||||
16 | ||||||
19 | ||||||
26 | ||||||
27 | ||||||
28 | Continuation of investment advisory and subadvisory agreements | |||||
35 | ||||||
39 |
|
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 1 |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The MSCI All Country World ex-USA Index is a free-float adjusted market capitalization weighted index designed to measure the equity market performance of developed markets and emerging markets, excluding the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
2 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
International equities experienced a loss for the period | ||||
The fund’s benchmark, the MSCI All Country World ex-USA Index, returned a loss. | ||||
The fund strongly outperformed the benchmark | ||||
Stock selection was the primary driver of results, highlighted by the fund’s relative strength in the industrials, consumer discretionary, and healthcare sectors. | ||||
Sector allocations also contributed | ||||
The fund benefited from overweights in information technology and healthcare, as well as an underweight in the poor-performing energy sector. |
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
|
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the ”Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 3 |
Table of Contents
Manager’s discussion of fund performance
|
How would you describe the investment environment during the 12 months ended October 31, 2020?
After beginning the period on a positive note, the world financial markets experienced a significant sell-off in February and March 2020. As COVID-19 spread around the globe and governments sought to contain the virus by locking down large segments of their economies, investors moved out of equities and other higher-risk asset categories. Stocks subsequently surged off of their late March lows in reaction to the extensive economic stimulus programs enacted by global governments and central banks, ultimately recapturing much of the ground they lost in the sell-off. However, in contrast to the U.S. market, international stocks failed to exceed their prepandemic highs.
What factors helped and hurt the fund’s results?
Stock selection was the largest contributor to returns, led by a strong showing in industrials. The Danish wind turbine manufacturer Vestas Wind Systems A/S, which benefited from improving global demand for renewable energy, was the top contributor. Positions in several producers of energy-efficient capital equipment, such as Spirax-Sarco Engineering PLC, Daikin Industries, Ltd., Atlas Copco AB, and Schneider Electric SE, also played a role in the fund’s outperformance. Consumer
TOP 10 HOLDINGS AS OF 10/31/2020 (% of net assets) | TOP 10 COUNTRIES 10/31/2020 (% of net assets) | |||||||||||||||||||
|
| |||||||||||||||||||
Alibaba Group Holding, Ltd., ADR | 4.7 |
Japan | 13.6 | |||||||||||||||||
13. | ||||||||||||||||||||
BYD Company, Ltd., H Shares | 3.0 | China | 13.0 | |||||||||||||||||
Roche Holding AG | 2.8 | United Kingdom | 10.3 | |||||||||||||||||
Unilever NV | 2.6 | France | 8.4 | |||||||||||||||||
Vestas Wind Systems A/S | 2.4 | Germany | 7.5 | |||||||||||||||||
HDFC Bank, Ltd., ADR | 2.3 | Denmark | 5.7 | |||||||||||||||||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 2.3 | South Korea | 4.5 | |||||||||||||||||
Yandex NV, Class A | 2.2 | Switzerland | 4.4 | |||||||||||||||||
Ping An Insurance Group Company of China, Ltd., H Shares | 2.2 | Taiwan | 3.4 | |||||||||||||||||
Naspers, Ltd., N Shares | 2.1 | Hong Kong | 3.0 | |||||||||||||||||
TOTAL | 26.6 | TOTAL | 73.8 | |||||||||||||||||
Cash and cash equivalents are not included. | Cash and cash equivalents are not included. | |||||||||||||||||||
4 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
discretionary was another area of strength for the fund, thanks largely to the gains for the Chinese companies BYD Company, Ltd., a maker of electric-car batteries, and Alibaba Group Holding, Ltd., the country’s e-commerce giant. | MANAGED BY
Corné A. Biemans Matthew A. Zalosh, CFA Praveen S. Abichandani, CFA
| |
On the negative side, the fund lost some relative performance through weaker stock selection in financials. Positions in the emerging-market companies Itau Unibanco Holding SA (Brazil), Kasikornbank PCL (Thailand), and Grupo Financiero Banorte SAB de CV (Mexico) were notable detractors in the sector. The fund’s position in Grupo Financiero Banorte was sold during the period. |
How would you summarize the fund’s positioning at the close of the period?
The fund was overweight in the healthcare, information technology, and industrials sectors, but we had a more cautious stance on commodity-oriented stocks, banks, and retailers. The fund was overweight in Europe, with a focus on industrial companies that produce green products. We believe this sector should continue to see higher demand as the Continent works toward its net-zero greenhouse gas emission goal over the next three decades. Japan is the portfolio’s largest country position, albeit with a weighting less than that of the index. The fund had a sizable position in export-oriented Japanese stocks with leading franchises and progressive management teams, but was underweight in the more mature, domestic-oriented industries. The fund was overweight in the emerging markets; while the near-term outlook may be challenging for certain countries in the asset class, we’ve found a wealth of opportunities to capitalize on the dynamic characteristics of the emerging world. Among these are its favorable demographics, the rapid development in innovative industries, and improvements in sustainability.
The views expressed in this report are exclusively those of Corné A. Biemans, Boston Common Asset Management, LLC, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 5 |
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | |||||||||||||||||||||
1-year | Since inception (12-14-16) | Since inception (12-14-16) | ||||||||||||||||||||
Class A | 5.08 | 8.78 | 38.66 | |||||||||||||||||||
Class I1 | 10.90 | 10.52 | 47.43 | |||||||||||||||||||
Class R61 | 11.01 | 10.62 | 47.98 | |||||||||||||||||||
Index† | -2.61 | 5.12 | 21.39 |
Performance figures assume all distributions have been reinvested. Figures reflect the maximum sales charge on Class A shares of 5%.Sales charges are not applicable to Class I and Class R6 shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectus for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class I | Class R6 | ||||||
Gross (%) | 1.62 | 1.37 | 1.26 | |||||
Net (%) | 1.28 | 1.03 | 0.92 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the MSCI All Country World ex-USA Index. |
See the following page for footnotes.
6 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock ESG International Equity Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI All Country World ex-USA Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||
Class I1 | 12-14-16 | 14,743 | 14,743 | 12,139 | ||||||||||
Class R61 | 12-14-16 | 14,798 | 14,798 | 12,139 |
The MSCI All Country World ex-USA Index is a free-float adjusted market capitalization weighted index designed to measure the equity market performance of developed markets and emerging markets, excluding the United States.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | For certain types of investors, as described in the fund’s prospectus. |
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 7 |
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the ”expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
8 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 5-1-2020 | Ending value on 10-31-2020 | Expenses paid during period ended 10-31-20201 | Annualized expense ratio | |||||||||||||||
Class A | Actual expenses/actual returns | $1,000.00 | $1,223.10 | $7.15 | 1.28% | |||||||||||||
Hypothetical example | 1,000.00 | 1,018.70 | 6.50 | 1.28% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,224.70 | 5.76 | 1.03% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.00 | 5.23 | 1.03% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,225.60 | 5.15 | 0.92% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.50 | 4.67 | 0.92% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 9 |
Table of Contents
|
AS OF 10-31-20
Shares | Value | |||||
Common stocks 97.6% | $60,282,342 | |||||
(Cost $48,121,358) | ||||||
Australia 1.4% | 870,735 | |||||
Macquarie Group, Ltd. | 9,766 | 870,735 | ||||
Belgium 1.1% | 650,629 | |||||
Umicore SA | 16,877 | 650,629 | ||||
Brazil 2.1% | 1,308,052 | |||||
Itau Unibanco Holding SA, ADR | 173,583 | 709,954 | ||||
Pagseguro Digital, Ltd., Class A (A) | 16,337 | 598,098 | ||||
Canada 1.7% | 1,043,066 | |||||
Canadian Pacific Railway, Ltd. | 3,487 | 1,043,066 | ||||
China 13.0% | 8,058,525 | |||||
Alibaba Group Holding, Ltd., ADR (A) | 9,514 | 2,898,818 | ||||
BYD Company, Ltd., H Shares | 93,500 | 1,890,085 | ||||
Ping An Insurance Group Company of China, Ltd., H Shares | 131,300 | 1,357,599 | ||||
Sunny Optical Technology Group Company, Ltd. | 41,000 | 680,728 | ||||
Xinyi Solar Holdings, Ltd. | 674,000 | 1,231,295 | ||||
Denmark 5.7% | 3,511,031 | |||||
Novo Nordisk A/S, B Shares | 15,077 | 961,395 | ||||
Orsted A/S (B) | 6,858 | 1,088,425 | ||||
Vestas Wind Systems A/S | 8,517 | 1,461,211 | ||||
Finland 1.0% | 627,971 | |||||
Sampo OYJ, A Shares | 16,641 | 627,971 | ||||
France 8.4% | 5,178,277 | |||||
Air Liquide SA | 5,243 | 766,725 | ||||
AXA SA | 43,087 | 691,945 | ||||
BioMerieux | 4,620 | 687,912 | ||||
Dassault Systemes SE | 3,718 | 633,956 | ||||
Schneider Electric SE | 9,268 | 1,126,119 | ||||
Valeo SA | 21,775 | 658,722 | ||||
Worldline SA (A)(B) | 8,275 | 612,898 | ||||
Germany 7.5% | 4,609,221 | |||||
adidas AG (A) | 2,486 | 738,601 | ||||
Deutsche Telekom AG | 51,905 | 788,888 | ||||
Infineon Technologies AG | 40,619 | 1,130,877 | ||||
SAP SE | 7,638 | 814,855 | ||||
Vonovia SE | 17,788 | 1,136,000 |
10 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||
Hong Kong 3.0% | $1,882,691 | |||||
AIA Group, Ltd. | 98,000 | 932,683 | ||||
Beijing Enterprises Water Group, Ltd. (A) | 999,840 | 380,338 | ||||
Hang Lung Properties, Ltd. | 234,000 | 569,670 | ||||
India 2.3% | 1,439,791 | |||||
HDFC Bank, Ltd., ADR (A) | 25,066 | 1,439,791 | ||||
Indonesia 1.6% | 990,852 | |||||
Bank Rakyat Indonesia Persero Tbk PT | 4,377,097 | 990,852 | ||||
Ireland 1.6% | 1,012,077 | |||||
Kerry Group PLC, Class A | 8,455 | 1,012,077 | ||||
Japan 13.6% | 8,376,168 | |||||
Daikin Industries, Ltd. | 6,500 | 1,216,366 | ||||
Hoya Corp. | 11,120 | 1,254,969 | ||||
Keyence Corp. | 1,700 | 771,498 | ||||
Nippon Telegraph & Telephone Corp. | 39,200 | 824,605 | ||||
ORIX Corp. | 44,900 | 525,116 | ||||
Recruit Holdings Company, Ltd. | 18,099 | 688,679 | ||||
Shimano, Inc. | 4,100 | 937,734 | ||||
Shiseido Company, Ltd. | 10,100 | 625,261 | ||||
Sundrug Company, Ltd. | 17,000 | 631,241 | ||||
Yamaha Corp. | 19,000 | 900,699 | ||||
Netherlands 2.2% | 1,381,325 | |||||
ASML Holding NV | 1,711 | 619,043 | ||||
ING Groep NV (A) | 111,287 | 762,282 | ||||
Russia 2.2% | 1,363,085 | |||||
Yandex NV, Class A (A) | 23,677 | 1,363,085 | ||||
South Africa 2.1% | 1,303,730 | |||||
Naspers, Ltd., N Shares | 6,678 | 1,303,730 | ||||
South Korea 4.5% | 2,770,932 | |||||
LG Chem, Ltd. | 1,775 | 967,874 | ||||
LG Household & Health Care, Ltd. | 761 | 1,008,994 | ||||
SK Hynix, Inc. | 11,193 | 794,064 | ||||
Sweden 2.8% | 1,733,111 | |||||
Atlas Copco AB, B Shares | 23,113 | 885,593 | ||||
Essity AB, B Shares | 29,282 | 847,518 | ||||
Switzerland 4.4% | 2,686,618 | |||||
Novartis AG | 12,713 | 990,630 | ||||
Roche Holding AG | 5,278 | 1,695,988 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 11 |
Table of Contents
|
Shares | Value | |||||
Taiwan 3.4% | $2,113,971 | |||||
Delta Electronics, Inc. | 107,000 | 711,916 | ||||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 16,717 | 1,402,055 | ||||
Thailand 1.7% | 1,024,976 | |||||
Advanced Info Service PCL | 92,300 | 510,548 | ||||
Kasikornbank PCL | 213,600 | 514,428 | ||||
United Kingdom 10.3% | 6,345,508 | |||||
Croda International PLC | 11,622 | 908,369 | ||||
Dechra Pharmaceuticals PLC | 16,368 | 740,454 | ||||
DS Smith PLC (A) | 156,385 | 573,654 | ||||
Ferguson PLC | 10,716 | 1,064,327 | ||||
GlaxoSmithKline PLC, ADR | 22,490 | 751,616 | ||||
Spirax-Sarco Engineering PLC | 4,871 | 712,111 | ||||
Unilever NV | 28,293 | 1,594,977 | ||||
Total investments (Cost $48,121,358) 97.6% | $60,282,342 | |||||
Other assets and liabilities, net 2.4% | 1,497,509 | |||||
Total net assets 100.0% | $61,779,851 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
Security Abbreviations and Legend
ADR | American Depositary Receipt | |
(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. |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $48,647,682. Net unrealized appreciation aggregated to $11,634,660, of which $15,430,591 related to gross unrealized appreciation and $3,795,931 related to gross unrealized depreciation.
12 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20
Assets | ||
Unaffiliated investments, at value (Cost $48,121,358) | $60,282,342 | |
Cash | 1,088,716 | |
Foreign currency, at value (Cost $1,608) | 1,608 | |
Dividends and interest receivable | 178,572 | |
Receivable for fund shares sold | 61,722 | |
Receivable for investments sold | 241,647 | |
Receivable from affiliates | 1,229 | |
Other assets | 40,052 | |
Total assets | 61,895,888 | |
Liabilities | ||
Payable for investments purchased | 14,459 | |
Payable for fund shares repurchased | 9,484 | |
Payable to affiliates | ||
Accounting and legal services fees | 2,288 | |
Transfer agent fees | 6,229 | |
Trustees’ fees | 64 | |
Other liabilities and accrued expenses | 83,513 | |
Total liabilities | 116,037 | |
Net assets | $61,779,851 | |
Net assets consist of | ||
Paid-in capital | $52,279,529 | |
Total distributable earnings (loss) | 9,500,322 | |
Net assets
| $61,779,851
| |
Net asset value per share | ||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||
Class A ($6,480,739 ÷ 467,411 shares)1 | $13.87 | |
Class I ($54,678,308 ÷ 3,934,256 shares) | $13.90 | |
Class R6 ($620,804 ÷ 44,628 shares) | $13.91 | |
Maximum offering price per share | ||
Class A (net asset value per share ÷ 95%)2 | $14.60 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 13 |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20 | ||||
Investment income | ||||
Dividends | $ | 1,053,123 | ||
Interest | 6,989 | |||
Less foreign taxes withheld | (104,884 | ) | ||
Total investment income | 955,228 | |||
Expenses | ||||
Investment management fees | 492,617 | |||
Distribution and service fees | 16,053 | |||
Accounting and legal services fees | 10,495 | |||
Transfer agent fees | 70,558 | |||
Trustees’ fees | 1,036 | |||
Custodian fees | 45,962 | |||
State registration fees | 57,869 | |||
Printing and postage | 16,974 | |||
Professional fees | 65,582 | |||
Other | 15,894 | |||
Total expenses | 793,040 | |||
Less expense reductions | (178,490 | ) | ||
Net expenses | 614,550 | |||
Net investment income | 340,678 | |||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | (2,144,034 | ) | ||
(2,144,034 | ) | |||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 7,131,778 | |||
7,131,778 | ||||
Net realized and unrealized gain | 4,987,744 | |||
Increase in net assets from operations | $ | 5,328,422 |
14 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS
| ||||||||
Year ended 10-31-20 | Year ended 10-31-19 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income | $340,678 | $1,291,431 | ||||||
Net realized loss | (2,144,034 | ) | (774,115 | ) | ||||
Change in net unrealized appreciation (depreciation) | 7,131,778 | 6,480,810 | ||||||
Increase in net assets resulting from operations | 5,328,422 | 6,998,126 | ||||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (134,601 | ) | (154,779 | ) | ||||
Class I | (1,098,472 | ) | (1,280,775 | ) | ||||
Class R6 | (53,099 | ) | (50,231 | ) | ||||
Total distributions | (1,286,172 | ) | (1,485,785 | ) | ||||
From fund share transactions | (1,575,962 | ) | (2,269,623 | ) | ||||
Total increase | 2,466,288 | 3,242,718 | ||||||
Net assets | ||||||||
Beginning of year | 59,313,563 | 56,070,845 | ||||||
End of year | $61,779,851 | $59,313,563 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 15 |
Table of Contents
|
CLASS A SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-171 | ||||||||||||
Per share operating performance | ||||||||||||||||
Net asset value, beginning of period | $12.78 | $11.63 | $12.96 | $10.00 | ||||||||||||
Net investment income2 | 0.05 | 0.26 | 0.14 | 0.13 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.29 | 1.17 | (1.37 | ) | 2.83 | |||||||||||
Total from investment operations | 1.34 | 1.43 | (1.23 | ) | 2.96 | |||||||||||
Less distributions | ||||||||||||||||
From net investment income | (0.25 | ) | (0.11 | ) | (0.04 | ) | — | |||||||||
From net realized gain | — | (0.17 | ) | (0.06 | ) | — | ||||||||||
Total distributions | (0.25 | ) | (0.28 | ) | (0.10 | ) | — | |||||||||
Net asset value, end of period | $13.87 | $12.78 | $11.63 | $12.96 | ||||||||||||
Total return (%)3,4 | 10.59 | 12.62 | (9.55 | ) | 29.60 | 5 | ||||||||||
Ratios and supplemental data | ||||||||||||||||
Net assets, end of period (in millions) | $6 | $7 | $7 | $6 | ||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||
Expenses before reductions | 1.59 | 1.62 | 1.62 | 2.11 | 6 | |||||||||||
Expenses including reductions | 1.29 | 1.28 | 1.27 | 1.28 | 6 | |||||||||||
Net investment income | 0.36 | 2.12 | 1.06 | 1.27 | 6 | |||||||||||
Portfolio turnover (%) | 34 | 32 | 19 | 10 |
1 | Period from 12-14-16 (commencement of operations) to 10-31-17. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
16 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS I SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-171 | ||||||||||||
Per share operating performance | ||||||||||||||||
Net asset value, beginning of period | $12.80 | $11.66 | $13.00 | $10.00 | ||||||||||||
Net investment income2 | 0.08 | 0.28 | 0.17 | 0.11 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.30 | 1.17 | (1.38 | ) | 2.89 | |||||||||||
Total from investment operations | 1.38 | 1.45 | (1.21 | ) | 3.00 | |||||||||||
Less distributions | ||||||||||||||||
From net investment income | (0.28 | ) | (0.14 | ) | (0.07 | ) | — | |||||||||
From net realized gain | — | (0.17 | ) | (0.06 | ) | — | ||||||||||
Total distributions | (0.28 | ) | (0.31 | ) | (0.13 | ) | — | |||||||||
Net asset value, end of period | $13.90 | $12.80 | $11.66 | $13.00 | ||||||||||||
Total return (%)3 | 10.90 | 12.84 | (9.37 | ) | 30.00 | 4 | ||||||||||
Ratios and supplemental data | ||||||||||||||||
Net assets, end of period (in millions) | $55 | $50 | $48 | $48 | ||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||
Expenses before reductions | 1.34 | 1.38 | 1.38 | 1.85 | 5 | |||||||||||
Expenses including reductions | 1.04 | 1.04 | 1.03 | 1.02 | 5 | |||||||||||
Net investment income | 0.62 | 2.31 | 1.28 | 1.07 | 5 | |||||||||||
Portfolio turnover (%) | 34 | 32 | 19 | 10 |
1 | Period from 12-14-16 (commencement of operations) to 10-31-17. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 17 |
Table of Contents
|
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-19 | 10-31-18 | 10-31-171 | ||||||||||||
Per share operating performance | ||||||||||||||||
Net asset value, beginning of period | $12.81 | $11.67 | $13.00 | $10.00 | ||||||||||||
Net investment income2 | 0.06 | 0.31 | 0.18 | 0.17 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.33 | 1.15 | (1.37 | ) | 2.83 | |||||||||||
Total from investment operations | 1.39 | 1.46 | (1.19 | ) | 3.00 | |||||||||||
Less distributions | ||||||||||||||||
From net investment income | (0.29 | ) | (0.15 | ) | (0.08 | ) | — | |||||||||
From net realized gain | — | (0.17 | ) | (0.06 | ) | — | ||||||||||
Total distributions | (0.29 | ) | (0.32 | ) | (0.14 | ) | — | |||||||||
Net asset value, end of period | $13.91 | $12.81 | $11.67 | $13.00 | ||||||||||||
Total return (%)3 | 11.01 | 12.95 | (9.21 | ) | 30.00 | 4 | ||||||||||
Ratios and supplemental data | ||||||||||||||||
Net assets, end of period (in millions) | $1 | $2 | $2 | $2 | ||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||
Expenses before reductions | 1.23 | 1.27 | 1.28 | 1.75 | 5 | |||||||||||
Expenses including reductions | 0.92 | 0.92 | 0.92 | 0.93 | 5 | |||||||||||
Net investment income | 0.42 | 2.54 | 1.38 | 1.64 | 5 | |||||||||||
Portfolio turnover (%) | 34 | 32 | 19 | 10 |
1 | Period from 12-14-16 (commencement of operations) to 10-31-17. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
18 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Note 1 — Organization
John Hancock ESG International Equity Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities, Class A shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund’s Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 19 |
Table of Contents
|
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2020, by major security category or type:
Total value at 10-31-20 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |||||||||||||
Investments in securities: | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | ||||||||||||||||
Australia | $870,735 | — | $870,735 | — | ||||||||||||
Belgium | 650,629 | — | 650,629 | — | ||||||||||||
Brazil | 1,308,052 | $1,308,052 | — | — | ||||||||||||
Canada | 1,043,066 | 1,043,066 | — | — | ||||||||||||
China | 8,058,525 | 2,898,818 | 5,159,707 | — | ||||||||||||
Denmark | 3,511,031 | — | 3,511,031 | — | ||||||||||||
Finland | 627,971 | — | 627,971 | — | ||||||||||||
France | 5,178,277 | — | 5,178,277 | — | ||||||||||||
Germany | 4,609,221 | — | 4,609,221 | — | ||||||||||||
Hong Kong | 1,882,691 | — | 1,882,691 | — | ||||||||||||
India | 1,439,791 | 1,439,791 | — | — | ||||||||||||
Indonesia | 990,852 | — | 990,852 | — | ||||||||||||
Ireland | 1,012,077 | — | 1,012,077 | — | ||||||||||||
Japan | 8,376,168 | — | 8,376,168 | — | ||||||||||||
Netherlands | 1,381,325 | — | 1,381,325 | — | ||||||||||||
Russia | 1,363,085 | 1,363,085 | — | — | ||||||||||||
South Africa | 1,303,730 | — | 1,303,730 | — | ||||||||||||
South Korea | 2,770,932 | — | 2,770,932 | — | ||||||||||||
Sweden | 1,733,111 | — | 1,733,111 | — | ||||||||||||
Switzerland | 2,686,618 | — | 2,686,618 | — | ||||||||||||
Taiwan | 2,113,971 | 1,402,055 | 711,916 | — | ||||||||||||
Thailand | 1,024,976 | — | 1,024,976 | — | ||||||||||||
United Kingdom | 6,345,508 | 751,616 | 5,593,892 | — | ||||||||||||
Total investments in securities | $60,282,342 | $10,206,483 | $50,075,859 | — |
20 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S.dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S.dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $3,588.
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 21 |
Table of Contents
|
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2020, the fund has a short-term capital loss carryforward of $74,402 and a long-term capital loss carryforward of $2,511,036 available to offset future net realized capital gains. This carryforward does not expire.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the years ended October 31, 2020 and 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||||
Ordinary income | $1,286,172 | $807,187 | ||||||
Long-term capital gains | — | 678,598 | ||||||
Total | $1,286,172 | $1,485,785 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $446,658 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to investments in passive foreign investment companies and wash sale loss deferrals.
22 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
Note 3 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: a) 0.850% of the first $250 million of the fund’s average daily net assets; b) 0.800% of the next $500 million of the fund’s average daily net assets; and c) 0.750% of the fund’s average daily net assets in excess of $750 million. The Advisor has a subadvisory agreement with Boston Common Asset Management, LLC. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.91% of average daily net assets of the fund. For purposes of this agreement, ”expenses of the fund” means all fund expenses, excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly, and short dividend expense. This agreement expires on February 28, 2021, unless renewed by mutual agreement of the Advisor and the fund based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $19,758 | |||
Class I | 155,107 |
Class | Expense reduction | |||
Class R6 | $3,625 | |||
Total | $178,490 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 0.54% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 23 |
Table of Contents
|
the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | |||
Class A | 0.25 | % |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $4,867 for the year ended October 31, 2020. Of this amount, $848 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $4,019 was paid as sales commissions to broker-dealers.
Class A shares may be subject to contingent deferred sales charges ((CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, there were no CDSCs received by the Distributor for Class A shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $16,053 | $7,987 | ||||||
Class I | — | 62,407 | ||||||
Class R6 | — | 164 | ||||||
Total | $16,053 | $70,558 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating
24 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
affiliated funds. At period end, no interfund loans were outstanding. Interest expense is included in Other expenses on the Statement of operations. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) | ||||||||||||
Borrower | $1,100,000 | 1 | 0.525% | $(16) |
Note 5 — Fund share transactions
Transactions in fund shares for the years ended October 31, 2020 and 2019 were as follows:
Year Ended 10-31-20 | Year Ended 10-31-19 | |||||||||||
Shares | Amount | Shares | Amount | |||||||||
Class A shares | ||||||||||||
Sold | 37,125 | $487,912 | 34,093 | $419,088 | ||||||||
Distributions reinvested | 1,712 | 22,465 | 2,648 | 29,607 | ||||||||
Repurchased | (112,699 | ) | (1,293,630) | (57,893 | ) | (682,047) | ||||||
Net decrease | (73,862 | ) | $(783,253) | (21,152 | ) | $(233,352) | ||||||
Class I shares | ||||||||||||
Sold | 590,392 | $7,410,092 | 674,003 | $7,977,268 | ||||||||
Distributions reinvested | 19,587 | 256,978 | 30,644 | 342,595 | ||||||||
Repurchased | (586,927 | ) | (6,852,005) | (888,371 | ) | (10,704,837) | ||||||
Net increase (decrease) | 23,052 | $815,065 | (183,724 | ) | $(2,384,974) | |||||||
Class R6 shares | ||||||||||||
Sold | 17,168 | $218,752 | 34,126 | $433,072 | ||||||||
Distributions reinvested | 706 | 9,269 | 142 | 1,589 | ||||||||
Repurchased | (154,517 | ) | (1,835,795) | (6,792 | ) | (85,958) | ||||||
Net increase (decrease) | (136,643 | ) | $(1,607,774) | 27,476 | $348,703 | |||||||
Total net decrease | (187,453 | ) | $(1,575,962) | (177,400 | ) | $(2,269,623) |
Affiliates of the fund owned 77% of Class A and Class I shares on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $19,000,092 and $21,448,038, respectively, for the year ended October 31, 2020.
Note 7 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 25 |
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock ESG International Equity Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock ESG International Equity Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statements of changes in net assets for each of the two years in the period ended October 31, 2020, including the related notes, and the financial highlights for each of the three years in the period ended October 31, 2020 and for the period December 14, 2016 (commencement of operations) through October 31, 2017 (collectively referred to as the ”financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2020 and the financial highlights for each of the three years in the period ended October 31, 2020 and for the period December 14, 2016 (commencement of operations) through October 31, 2017 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian and brokers; when replies were not received brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
26 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Income derived from foreign sources was $1,053,543. The fund intends to pass through foreign tax credits of $103,573.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 27 |
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Boston Common Asset Management, LLC (the Subadvisor), for John Hancock ESG International Equity Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent, and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
1On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the ”Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
28 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives; review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications, and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 29 |
Table of Contents
|
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund���s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index for the one- and three-year periods ended December 31, 2019. The Board also noted that the fund underperformed the peer group median for the one- and three-year periods ended December 31, 2019. The Board took into account management’s discussion of the fund’s performance, including favorable performance relative to the benchmark index for the one- and three-year periods. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of the fund’s benchmark index.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees for the fund are lower than the peer group median and net total expenses for the fund are equal to the peer group median.
30 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
The Board took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 31 |
Table of Contents
|
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its
32 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 33 |
Table of Contents
|
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of the fund’s benchmark index; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
34 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the | | | Number of John Hancock funds overseen by Trustee | | ||
Hassell H. McClellan, Born: 1945 | 2012 | 196 |
Trustee and Chairperson of the Board
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 |
Trustee
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959
| 2015 | 196 |
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 |
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 |
Trustee
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 |
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).
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 35 |
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Deborah C. Jackson, Born: 1952 | 2008 | 196 |
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946 | 2012 | 196 |
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994 | 196 |
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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 | 196 |
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
36 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Gregory A. Russo, Born: 1949 | 2009 | 196 | ||||||
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 Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Andrew G. Arnott, Born: 1971 | 2017 | 196 |
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 37 |
Table of Contents
|
Principal officers who are not Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Officer of the Trust since | |||
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
Salvatore Schiavone, Born: 1965 | 2010 |
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 |
Chief Legal Officer and Secretary
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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).
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023. |
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291. |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
38 | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | ANNUAL REPORT |
|
Table of Contents
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
James M. Oates*
Frances G. Rathke1,*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Boston Common Asset Management, LLC
Portfolio Managers
Praveen S. Abichandani, CFA
Corné Biemans
Matt A. Zalosh, CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
* | Member of the Audit Committee |
† | Non-Independent Trustee |
1 | Appointed as Independent Trustee effective as of September 15, 2020 |
2 | Effective July 31, 2020 |
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407 | ||||
| ANNUAL REPORT | JOHN HANCOCK ESG INTERNATIONAL EQUITY FUND | 39 |
Table of Contents
Protect yourself by using eDelivery
|
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
◾ |
Added security: Password protection helps you safely retrieve documents online | |||
◾ |
Save time: Receive instant email notification once statements are available | |||
◾ |
Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling |
SIGN UP FOR EDELIVERY TODAY!
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report
Table of Contents
Get your questions answered by using our shareholder resources
|
ONLINE
◾ |
Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |||
◾ |
Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |||
◾ |
Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |||
◾ |
Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. |
BY PHONE
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00 A.M. to 7:00 P.M., and Friday, 8:00 A.M. to 6:00 P.M., Eastern time. We’re here to help!
Not part of the shareholder report |
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock ESG International Equity Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399331 | 469A 10/20 | |||
12/2020 |
Table of Contents
Table of Contents
Dear shareholders,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. The governments of many nations worked to shore up their economies, and equity markets began to rise from their first-quarter sell-off; this comeback gathered momentum for the remainder of the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain parts of the world have been reinstated and consumer spending remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
John Hancock
Global Thematic Opportunities Fund
Table of contents | ||||||
2 | Your fund at a glance | |||||
4 | Manager’s discussion of fund performance | |||||
6 | A look at performance | |||||
8 | ||||||
10 | ||||||
13 | ||||||
17 | ||||||
22 | ||||||
31 | ||||||
32 | ||||||
33 | Continuation of investment advisory and subadvisory agreements | |||||
40 | ||||||
44 | ||||||
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 1 |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks growth through capital appreciation by investing mainly in equities of companies that may benefit from global long-term market themes.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The MSCI All Country World Index is a free float adjusted market capitalization weighted designed to measure the equity market performance of developed markets and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
2 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Vaccine news and policy efforts boosted stocks | ||||
Positive news about potential vaccines for the coronavirus, as well as relentless central bank efforts and the economic and social reopening of most regions, boosted global equities, with United States and information technology (IT) stocks delivering the best performance. | ||||
The fund’s asset allocation drove relative outperformance | ||||
The fund had a positive absolute return and outperformed the MSCI All Country World Index due primarily to an overweight in the strong-performing IT sector and underweights to the weaker financials and energy sectors. | ||||
Stock selection effects were mixed | ||||
Weak stock selection in the IT sector was offset by positive selection in the industrials, healthcare, and communication services sectors, with companies supporting trends such as automation and healthcare services among the best performers.
|
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
|
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the ”Principal risks” section of the prospectus.
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 3 |
Table of Contents
Manager’s discussion of fund performance
|
What factors affected global equity markets during the 12 months ended October 31, 2020?
The decade-long bull market came to an abrupt end as the COVID-19 pandemic resulted in a quasiglobal lockdown during the first quarter of 2020 and the worst three-month performance on record for the fund’s benchmark, the MSCI All Country World Index. After this dismal start, markets rebounded strongly during the rest of the year. Positive news flow about potential vaccines for the coronavirus helped markets beginning in the third quarter, as did relentless central bank efforts and the economic and social reopening of most regions. Overall, given the paradigm shift in work-from-home availability, countries highly exposed to information technology (IT), such as China, Taiwan, and South Korea, all outperformed the overall market. Utilities, a defensive sector, and energy, where end-market demand has suffered as lockdowns weighed on oil prices, lagged the most. From a regional perspective, the largest returns came from North America, while Europe underperformed over fears of a second COVID-19 wave.
How did the fund respond to these market conditions?
The fund posted a positive return and outperformed its benchmark. Outperformance was the result of sector allocation, with stock selection deterring somewhat. The large positive allocation effect was a result of a significant underweight in financials and a lack of exposure to energy, the two
TOP 10 HOLDINGS | TOP 10 COUNTRIES | |||||||||||||||||||||||
AS OF 10/31/2020 (% of net assets) | AS OF 10/31/2020 (% of net assets) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Thermo Fisher Scientific, Inc. | 3.5 | United States | 61.9 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Alibaba Group Holding, Ltd., ADR | 3.5 | China | 8.7 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
UnitedHealth Group, Inc. | 3.1 | France | 5.8 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Fidelity National Financial, Inc. | 3.0 | United Kingdom | 4.6 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Roche Holding AG | 2.7 | South Korea | 4.0 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Synopsys, Inc. | 2.6 | Ireland | 3.4 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Quest Diagnostics, Inc. | 2.6 | Germany | 2.9 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
KLA Corp. | 2.6 | Switzerland | 2.7 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Applied Materials, Inc. | 2.5 | Sweden | 2.4 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Zebra Technologies Corp., Class A | 2.5 | Hong Kong | 1.0 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
TOTAL | 28.6 | TOTAL | 97.4 | |||||||||||||||||||||
Cash and cash equivalents are not included. | Cash and cash equivalents are not included. | |||||||||||||||||||||||
4 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
worst-performing sectors over the last 12 months, as well as a large overweight in IT, the best-performing sector in the index. Stock selection in the IT sector was the primary detractor, but was partially offset by strong selection in the industrials, healthcare, and communication services sectors. | MANAGED BY
Hans Peter Portner, CFA Gertjan Van Der Geer
| |
From a regional perspective, the portfolio was supported by a large positive stock selection effect, concentrated in European industrials, while the allocation effect was a slight negative due to a small underweight in outperforming North America and an overweight in Europe, which lagged during the reporting period.
What holdings were instrumental?
The largest positive contribution came from Thermo Fisher Scientific, Inc., which offers goods and services for COVID-19 testing and saw strong demand for their products, culminating in their highest-ever quarterly sales and earnings. Synopsys, Inc. was a strong performer as demand improved for semiconductors and design tools for the development of new chipsets used in a wide range of applications such as computers, data centers, 5G, and electric vehicles. Irish insulation materials manufacturer Kingspan Group PLC also rebounded strongly as plans for a green recovery boosted the longer-term outlook for energy-efficiency stocks.
On the negative side, one of the largest detractors was owning Apple, Inc. only for a short time early in the period. Apple was a star performer during the stay-at-home period and an index heavyweight, but we sold it off before its run up. Another underperformer was Fidelity National Financial, Inc., a payment services company that suffered from a multiple contraction after announcing an acquisition that coincided with the March stock market crash.
The views expressed in this report are exclusively those of Hans Peter Portner, CFA, and Gertjan Van Der Geer, Pictet Asset Management, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk. |
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 5 |
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020
| ||||||||||||||
Average annual total returns (%) | Cumulative total returns (%) | |||||||||||||
with maximum sales charge | with maximum sales charge | |||||||||||||
1-year | | Since inception (12-14-18) | | | Since inception (12-14-18) |
| ||||||||
Class A | 2.92 | 12.03 | 23.83 | |||||||||||
Class C | 6.50 | 14.28 | 28.56 | |||||||||||
Class I1 | 8.53 | 15.42 | 31.00 | |||||||||||
Class R61 | 8.70 | 15.52 | 31.21 | |||||||||||
Class NAV1 | 8.62 | 15.53 | 31.22 | |||||||||||
Index† | 4.89 | 10.15 | 19.96 |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R6 | Class NAV | ||||||||
Gross (%) | 1.37 | 2.12 | 1.12 | 1.01 | 1.00 | |||||||
Net (%) | 1.19 | 1.94 | 0.94 | 0.85 | 0.84 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the MSCI All Country World Index. |
See the following page for footnotes.
6 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Global Thematic Opportunities Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI All Country World Index
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||||
Class C2 | 12-14-18 | 12,856 | 12,856 | 11,996 | ||||||||||||
Class I1 | 12-14-18 | 13,100 | 13,100 | 11,996 | ||||||||||||
Class R61 | 12-14-18 | 13,121 | 13,121 | 11,996 | ||||||||||||
Class NAV1 | 12-14-18 | 13,122 | 13,122 | 11,996 |
The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets and emerging markets.
Prior to March 1, 2020, the fund’s primary benchmark was the MSCI World Index. Effective March 1, 2020, the fund’s primary benchmark is the MSCI All Country World Index, which is better aligned with the fund’s investment strategy.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | For certain types of investors, as described in the fund’s prospectuses. |
2 | The contingent deferred sales charge is not applicable. |
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 7 |
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the ”expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
8 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 5-1-2020 | Ending value on 10-31-2020 | Expenses paid during period ended 10-31-20201 | Annualized expense ratio | |||||||||||||||
Class A | Actual expenses/actual returns | $ | 1,000.00 | $ | 1,172.70 | $ | 6.50 | 1.19 | % | |||||||||
Hypothetical example | 1,000.00 | 1,019.20 | 6.04 | 1.19 | % | |||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,168.10 | 10.57 | 1.94 | % | ||||||||||||
Hypothetical example | 1,000.00 | 1,015.40 | 9.83 | 1.94 | % | |||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,174.40 | 5.14 | 0.94 | % | ||||||||||||
Hypothetical example | 1,000.00 | 1,020.40 | 4.77 | 0.94 | % | |||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,174.30 | 4.65 | 0.85 | % | ||||||||||||
Hypothetical example | 1,000.00 | 1,020.90 | 4.32 | 0.85 | % | |||||||||||||
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,174.30 | 4.59 | 0.84 | % | ||||||||||||
Hypothetical example | 1,000.00 | 1,020.90 | 4.27 | 0.84 | % |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 9 |
Table of Contents
|
AS OF 10-31-20
Shares | Value | |||||||
Common stocks 96.0% | $ | 320,047,138 | ||||||
(Cost $270,701,404) | ||||||||
China 8.7% | 28,953,598 | |||||||
Alibaba Group Holding, Ltd., ADR (A) | 37,842 | 11,530,077 | ||||||
China Vanke Company, Ltd., H Shares | 1,467,200 | 4,554,138 | ||||||
NetEase, Inc., ADR | 58,310 | 5,060,725 | ||||||
Tencent Holdings, Ltd. | 102,200 | 7,808,658 | ||||||
France 5.8% | 19,406,725 | |||||||
Kering SA | 13,640 | 8,242,843 | ||||||
Schneider Electric SE | 54,929 | 6,674,208 | ||||||
Worldline SA (A)(B) | 60,617 | 4,489,674 | ||||||
Germany 2.9% | 9,561,586 | |||||||
Siemens AG | 52,334 | 6,139,599 | ||||||
Vonovia SE | 53,583 | 3,421,987 | ||||||
Hong Kong 1.0% | 3,526,836 | |||||||
Guangdong Investment, Ltd. | 2,378,000 | 3,526,836 | ||||||
Ireland 3.4% | 11,348,453 | |||||||
Allegion PLC | 59,093 | 5,820,661 | ||||||
Kingspan Group PLC (A) | 63,342 | 5,527,792 | ||||||
Japan 1.0% | 3,320,420 | |||||||
Horiba, Ltd. | 67,500 | 3,320,420 | ||||||
South Korea 1.6% | 5,448,778 | |||||||
Coway Company, Ltd. (A) | 88,985 | 5,448,778 | ||||||
Sweden 2.4% | 7,897,846 | |||||||
Hexagon AB, B Shares (A) | 107,751 | 7,897,846 | ||||||
Switzerland 2.7% | 9,079,865 | |||||||
Roche Holding AG | 28,257 | 9,079,865 | ||||||
United Kingdom 4.6% | 15,245,964 | |||||||
Bunzl PLC | 184,449 | 5,733,857 | ||||||
Mondi PLC | 159,168 | 3,016,772 | ||||||
Severn Trent PLC | 96,773 | 3,045,668 | ||||||
Unilever NV (C) | 61,193 | 3,449,667 | ||||||
United States 61.9% | 206,257,067 | |||||||
Alphabet, Inc., Class A (A) | 3,588 | 5,798,603 | ||||||
AMETEK, Inc. | 38,874 | 3,817,427 | ||||||
Applied Materials, Inc. | 139,541 | 8,265,013 | ||||||
Blueprint Medicines Corp. (A) | 18,327 | 1,874,486 | ||||||
Boston Scientific Corp. (A) | 218,260 | 7,479,770 |
10 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||
United States (continued) | ||||||||
Cisco Systems, Inc. | 164,097 | $ | 5,891,082 | |||||
Comcast Corp., Class A | 158,664 | 6,701,967 | ||||||
Danaher Corp. | 16,820 | 3,860,863 | ||||||
Dropbox, Inc., Class A (A) | 89,356 | 1,631,641 | ||||||
Edwards Lifesciences Corp. (A) | 68,137 | 4,884,742 | ||||||
Essential Utilities, Inc. | 88,712 | 3,654,934 | ||||||
Exelixis, Inc. (A) | 94,627 | �� | 1,937,961 | |||||
Facebook, Inc., Class A (A) | 17,148 | 4,511,810 | ||||||
Fidelity National Financial, Inc. | 317,134 | 9,923,123 | ||||||
Fidelity National Information Services, Inc. | 58,036 | 7,230,705 | ||||||
Fortune Brands Home & Security, Inc. | 72,679 | 5,877,551 | ||||||
Gilead Sciences, Inc. | 55,375 | 3,220,056 | ||||||
Global Blood Therapeutics, Inc. (A) | 28,249 | 1,493,807 | ||||||
Global Payments, Inc. | 38,075 | 6,005,951 | ||||||
Halozyme Therapeutics, Inc. (A) | 65,254 | 1,827,112 | ||||||
Intuit, Inc. | 7,885 | 2,481,252 | ||||||
KLA Corp. | 43,751 | 8,626,822 | ||||||
MAXIMUS, Inc. | 111,660 | 7,545,983 | ||||||
Microsoft Corp. | 33,273 | 6,736,784 | ||||||
Neurocrine Biosciences, Inc. (A) | 17,104 | 1,687,652 | ||||||
NextEra Energy, Inc. | 51,556 | 3,774,415 | ||||||
PayPal Holdings, Inc. (A) | 23,393 | 4,354,139 | ||||||
Quest Diagnostics, Inc. | 70,656 | 8,629,924 | ||||||
Stanley Black & Decker, Inc. | 24,266 | 4,033,009 | ||||||
Synopsys, Inc. (A) | 40,721 | 8,708,593 | ||||||
The Toro Company | 93,356 | 7,664,528 | ||||||
Thermo Fisher Scientific, Inc. | 24,585 | 11,631,655 | ||||||
Tractor Supply Company | 25,571 | 3,406,313 | ||||||
TransUnion | 44,034 | 3,507,748 | ||||||
Turning Point Therapeutics, Inc. (A) | 24,247 | 2,235,331 | ||||||
UnitedHealth Group, Inc. | 34,095 | 10,403,748 | ||||||
Vertex Pharmaceuticals, Inc. (A) | 6,670 | 1,389,761 | ||||||
Visa, Inc., Class A | 29,158 | 5,298,300 | ||||||
Zebra Technologies Corp., Class A (A) | 29,095 | 8,252,506 | ||||||
Preferred securities 2.4%
|
$
|
7,840,243
|
| |||||
(Cost $5,647,551) | ||||||||
South Korea 2.4% | 7,840,243 | |||||||
Samsung Electronics Company, Ltd. | 176,245 | 7,840,243 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 11 |
Table of Contents
|
Yield | (%) | Shares | Value | |||||||||
Short-term investments 1.1%
|
$
|
3,637,851
|
| |||||||||
(Cost $3,637,887) | ||||||||||||
Short-term funds 1.1% | 3,637,851 | �� | ||||||||||
John Hancock Collateral Trust (D) | 0.2508 | (E) | 363,472 | 3,637,851 | ||||||||
Total investments (Cost $279,986,842) 99.5% | $ | 331,525,232 | ||||||||||
Other assets and liabilities, net 0.5% | 1,709,812 | |||||||||||
Total net assets 100.0% | $ | 333,235,044 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
Security Abbreviations and Legend
ADR | American Depositary Receipt | |
(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. | |
(C) | All or a portion of this security is on loan as of 10-31-20. | |
(D) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. | |
(E) | The rate shown is the annualized seven-day yield as of 10-31-20. |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $280,794,237. Net unrealized appreciation aggregated to $50,730,995, of which $58,724,531 related to gross unrealized appreciation and $7,993,536 related to gross unrealized depreciation.
12 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20 | ||||
Assets | ||||
Unaffiliated investments, at value (Cost $276,348,955) including $3,464,172 of securities loaned | $ | 327,887,381 | ||
Affiliated investments, at value (Cost $3,637,887) | 3,637,851 | |||
Total investments, at value (Cost $279,986,842) | 331,525,232 | |||
Cash | 4,163,804 | |||
Foreign currency, at value (Cost $55,049) | 55,031 | |||
Dividends and interest receivable | 350,328 | |||
Receivable for fund shares sold | 5,740 | |||
Receivable for investments sold | 3,513,862 | |||
Receivable for securities lending income | 108 | |||
Receivable from affiliates | 1,980 | |||
Other assets | 62,856 | |||
Total assets | 339,678,941 | |||
Liabilities | ||||
Payable for investments purchased | 2,569,876 | |||
Payable for fund shares repurchased | 64,123 | |||
Payable upon return of securities loaned | 3,637,889 | |||
Payable to affiliates | ||||
Accounting and legal services fees | 12,904 | |||
Transfer agent fees | 131 | |||
Trustees’ fees | 68 | |||
Other liabilities and accrued expenses | 158,906 | |||
Total liabilities | 6,443,897 | |||
Net assets | $ | 333,235,044 | ||
Net assets consist of | ||||
Paid-in capital | $ | 260,935,439 | ||
Total distributable earnings (loss) | 72,299,605 | |||
Net assets | $ | 333,235,044 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 13 |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES (continued) | ||||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class A ($845,164 ÷ 67,299 shares)1 | $ | 12.56 | ||
Class C ($342,742 ÷ 27,555 shares)1 | $ | 12.44 | ||
Class I ($80,255 ÷ 6,376 shares) | $ | 12.59 | ||
Class R6 ($90,106 ÷ 7,153 shares) | $ | 12.60 | ||
Class NAV ($331,876,777 ÷ 26,334,390 shares) | $ | 12.60 | ||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95%)2 | $ | 13.22 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
14 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20 |
Investment income | ||||
Dividends | $ | 5,739,901 | ||
Interest | 32,294 | |||
Securities lending | 21,303 | |||
Less foreign taxes withheld | (252,607 | ) | ||
Total investment income | 5,540,891 | |||
Expenses | ||||
Investment management fees | 2,846,425 | |||
Distribution and service fees | 3,688 | |||
Accounting and legal services fees | 66,932 | |||
Transfer agent fees | 1,172 | |||
Trustees’ fees | 5,528 | |||
Custodian fees | 116,748 | |||
State registration fees | 76,981 | |||
Printing and postage | 53,821 | |||
Professional fees | 76,226 | |||
Other | 34,487 | |||
Total expenses | 3,282,008 | |||
Less expense reductions | (396,512 | ) | ||
Net expenses | 2,885,496 | |||
Net investment income | 2,655,395 | |||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | 19,125,114 | |||
Affiliated investments | 1,398 | |||
19,126,512 | ||||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 7,706,122 | |||
Affiliated investments | (412 | ) | ||
7,705,710 | ||||
Net realized and unrealized gain | 26,832,222 | |||
Increase in net assets from operations | $ | 29,487,617 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 15 |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS |
| |||||||||||
Year ended 10-31-20 | Period ended 10-31-191 | |||||||||||
Increase (decrease) in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income | $2,655,395 | $2,455,246 | ||||||||||
Net realized gain | 19,126,512 | 11,109,282 | ||||||||||
Change in net unrealized appreciation (depreciation) | 7,705,710 | 43,847,618 | ||||||||||
Increase in net assets resulting from operations | 29,487,617 | 57,412,146 | ||||||||||
Distributions to shareholders | ||||||||||||
From earnings | ||||||||||||
Class A | (16,263 | ) | — | |||||||||
Class C | (2,882 | ) | — | |||||||||
Class I | (3,102 | ) | — | |||||||||
Class R6 | (2,907 | ) | — | |||||||||
Class NAV | (14,600,822 | ) | — | |||||||||
Total distributions | (14,625,976 | ) | — | |||||||||
From fund share transactions | (44,452,602 | ) | 305,413,859 | |||||||||
Total increase (decrease) | (29,590,961 | ) | 362,826,005 | |||||||||
Net assets | ||||||||||||
Beginning of year | 362,826,005 | — | ||||||||||
End of year | $333,235,044 | $362,826,005 |
1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
16 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS A SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $12.04 | $10.00 | ||||||
Net investment income2 | 0.06 | 0.04 | ||||||
Net realized and unrealized gain (loss) on investments | 0.92 | 2.00 | ||||||
Total from investment operations | 0.98 | 2.04 | ||||||
Less distributions | ||||||||
From net investment income | (0.06 | ) | — | |||||
From net realized gain | (0.40 | ) | — | |||||
Total distributions | (0.46 | ) | — | |||||
Net asset value, end of period | $12.56 | $12.04 | ||||||
Total return (%)3,4 | 8.30 | 20.40 | 5 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $1 | $1 | ||||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 1.33 | 1.37 | 6 | |||||
Expenses including reductions | 1.19 | 1.19 | 6 | |||||
Net investment income | 0.48 | 0.39 | 6 | |||||
Portfolio turnover (%) | 58 | 59 |
1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the period. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 17 |
Table of Contents
|
CLASS C SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $11.96 | $10.00 | ||||||
Net investment loss2 | (0.03 | ) | (0.03 | ) | ||||
Net realized and unrealized gain (loss) on investments | 0.91 | 1.99 | ||||||
Total from investment operations | 0.88 | 1.96 | ||||||
Less distributions | ||||||||
From net realized gain | (0.40 | ) | — | |||||
Net asset value, end of period | $12.44 | $11.96 | ||||||
Total return (%)3,4 | 7.50 | 19.60 | 5 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $— | 6 | $— | 6 | ||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 2.08 | 2.12 | 7 | |||||
Expenses including reductions | 1.94 | 1.94 | 7 | |||||
Net investment loss | (0.22 | ) | (0.30 | )7 | ||||
Portfolio turnover (%) | 58 | 59 |
1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the period. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
18 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS I SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $12.07 | $10.00 | ||||||
Net investment income2 | 0.08 | 0.07 | ||||||
Net realized and unrealized gain (loss) on investments | 0.93 | 2.00 | ||||||
Total from investment operations | 1.01 | 2.07 | ||||||
Less distributions | ||||||||
From net investment income | (0.09 | ) | — | |||||
From net realized gain | (0.40 | ) | — | |||||
Total distributions | (0.49 | ) | — | |||||
Net asset value, end of period | $12.59 | $12.07 | ||||||
Total return (%)3 | 8.53 | 20.70 | 4 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $— | 5 | $— | 5 | ||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 1.08 | 1.12 | 6 | |||||
Expenses including reductions | 0.94 | 0.94 | 6 | |||||
Net investment income | 0.69 | 0.73 | 6 | |||||
Portfolio turnover (%) | 58 | 59 |
1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the period. |
4 | Not annualized. |
5 | Less than $500,000. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 19 |
Table of Contents
|
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $12.07 | $10.00 | ||||||
Net investment income2 | 0.09 | 0.08 | ||||||
Net realized and unrealized gain (loss) on investments | 0.94 | 1.99 | ||||||
Total from investment operations | 1.03 | 2.07 | ||||||
Less distributions | ||||||||
From net investment income | (0.10 | ) | — | |||||
From net realized gain | (0.40 | ) | — | |||||
Total distributions | (0.50 | ) | — | |||||
Net asset value, end of period | $12.60 | $12.07 | ||||||
Total return (%)3 | 8.70 | 20.70 | 4 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $— | 5 | $— | 5 | ||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 0.97 | 1.01 | 6 | |||||
Expenses including reductions | 0.85 | 0.85 | 6 | |||||
Net investment income | 0.79 | 0.82 | 6 | |||||
Portfolio turnover (%) | 58 | 59 |
1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the period. |
4 | Not annualized. |
5 | Less than $500,000. |
6 | Annualized. |
20 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS NAV SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $12.08 | $10.00 | ||||||
Net investment income2 | 0.09 | 0.09 | ||||||
Net realized and unrealized gain (loss) on investments | 0.93 | 1.99 | ||||||
Total from investment operations | 1.02 | 2.08 | ||||||
Less distributions | ||||||||
From net investment income | (0.10 | ) | — | |||||
From net realized gain | (0.40 | ) | — | |||||
Total distributions | (0.50 | ) | — | |||||
Net asset value, end of period | $12.60 | $12.08 | ||||||
Total return (%)3 | 8.62 | 20.80 | 4 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $332 | $362 | ||||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 0.96 | 1.00 | 5 | |||||
Expenses including reductions | 0.84 | 0.84 | 5 | |||||
Net investment income | 0.78 | 0.88 | 5 | |||||
Portfolio turnover (%) | 58 | 59 |
1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the period. |
4 | Not annualized. |
5 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 21 |
Table of Contents
|
Note 1 — Organization
John Hancock Global Thematic Opportunities Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek growth through capital appreciation by investing mainly in equities of companies that may benefit from global long-term market themes.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply).
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such
22 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund’s Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2020, by major security category or type:
| Total value at 10-31-20 |
| | Level 1 quoted price |
| | Level 2 significant observable inputs | | | Level 3 significant unobservable inputs | | |||||
Investments in securities: | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | ||||||||||||||||
China | $28,953,598 | $16,590,802 | $12,362,796 | — | ||||||||||||
France | 19,406,725 | — | 19,406,725 | — | ||||||||||||
Germany | 9,561,586 | — | 9,561,586 | — | ||||||||||||
Hong Kong | 3,526,836 | — | 3,526,836 | — | ||||||||||||
Ireland | 11,348,453 | 5,820,661 | 5,527,792 | — | ||||||||||||
Japan | 3,320,420 | — | 3,320,420 | — | ||||||||||||
South Korea | 5,448,778 | — | 5,448,778 | — | ||||||||||||
Sweden | 7,897,846 | — | 7,897,846 | — | ||||||||||||
Switzerland | 9,079,865 | — | 9,079,865 | — | ||||||||||||
United Kingdom | 15,245,964 | — | 15,245,964 | — | ||||||||||||
United States | 206,257,067 | 206,257,067 | — | — | ||||||||||||
Preferred securities | 7,840,243 | — | 7,840,243 | — | ||||||||||||
Short-term investments | 3,637,851 | 3,637,851 | — | — | ||||||||||||
Total investments in securities | $331,525,232 | $232,306,381 | $99,218,851 | — |
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 23 |
Table of Contents
|
ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund will invest its cash collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of October 31, 2020, the fund loaned securities valued at $3,464,172 and received $3,637,889 of cash collateral.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund
24 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $4,591.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the year ended October 31, 2020 and for the period ended October 31, 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||
Ordinary income | $14,625,976 | — |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $8,403,933 of undistributed ordinary income and $13,149,739 of undistributed long-term capital gains.
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 25 |
Table of Contents
|
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals.
Note 3 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.840% of the first $250 million of the fund’s aggregate average daily net assets; (b) 0.815% of the next $250 million of the fund’s aggregate average daily net assets; (c) 0.790% of the next $500 million of the fund’s aggregate average daily net assets; (d) 0.750% of the next $1 billion of the fund’s aggregate average daily net assets and (e) 0.730% of the fund’s aggregate average daily net assets in excess of $2 billion. When aggregate net assets exceed $1 billion, but are less than or equal to $2 billion, the advisory fee rate is 0.750% on all net assets of the fund. When aggregate net assets exceed $2 billion, the advisory fee rate is 0.730% on all net assets of the fund. Aggregate net assets include the net assets of the fund, Manulife Global Thematic Opportunities Fund (a Canadian mutual fund trust), and Manulife Global Thematic Opportunities Class (a class of mutual fund shares of Manulife Investment Exchange Funds Corp.). The Advisor has a subadvisory agreement with Pictet Asset Management SA. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor has contractually agreed to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund exceed 0.84% of average daily net assets, on an annualized basis and expenses of Class A, Class C, and Class I shares exceed 1.19%, 1.94%, and 0.94%, respectively, of average daily net assets attributable to the class. Expenses of the fund means all expenses of the fund excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, borrowing costs, prime brokerage fees, acquired fund fees and expenses paid indirectly, and short dividend expense. Expenses of Class A, Class C, and Class I shares means all expenses of the fund attributable to the
26 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
applicable class plus class-specific expenses. Each agreement expires on February 28, 2021, unless renewed by mutual agreement of the fund and Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $933 | |||
Class C | 293 | |||
Class I | 106 |
Class | Expense reduction | |||
Class R6 | $93 | |||
Class NAV | 395,087 | |||
Total | $396,512 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 0.71% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | |||
Class A | 0.25% | |||
Class C | 1.00% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $1,203 for the year ended October 31, 2020. Of this amount, $206 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $997 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs).Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, CDSCs received by the Distributor amounted to $756 for Class C shares. There were no CDSCs received by the Distributor for Class A shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 27 |
Table of Contents
|
retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $1,646 | $816 | ||||||
Class C | 2,042 | 252 | ||||||
Class I | — | 94 | ||||||
Class R6 | — | 10 | ||||||
Total | $3,688 | $1,172 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5 — Fund share transactions
Transactions in fund shares for the year ended October 31, 2020 and for the period ended October 31, 2019 were as follows:
Year Ended 10-31-20 | Period ended 10-31-191 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares | ||||||||||||||||
Sold | 42,174 | $519,812 | 50,145 | $554,355 | ||||||||||||
Distributions reinvested | 1,343 | 16,263 | — | — | ||||||||||||
Repurchased | (20,600) | (232,873) | (5,763) | (68,429) | ||||||||||||
Net increase | 22,917 | $303,202 | 44,382 | $485,926 | ||||||||||||
Class C shares | ||||||||||||||||
Sold | 31,037 | $366,424 | 7,126 | $74,934 | ||||||||||||
Distributions reinvested | 71 | 860 | — | — | ||||||||||||
Repurchased | (10,679) | (110,665) | — | — | ||||||||||||
Net increase | 20,429 | $256,619 | 7,126 | $74,934 | ||||||||||||
Class I shares | ||||||||||||||||
Sold | — | — | 6,322 | $65,000 | ||||||||||||
Distributions reinvested | 54 | $649 | — | — | ||||||||||||
Net increase | 54 | $649 | 6,322 | $65,000 | ||||||||||||
Class R6 shares | ||||||||||||||||
Sold | 1,357 | $16,000 | 5,763 | $58,500 | ||||||||||||
Distributions reinvested | 33 | 402 | — | — | ||||||||||||
Net increase | 1,390 | $16,402 | 5,763 | $58,500 |
28 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
Year Ended 10-31-20 | Period ended 10-31-191 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class NAV shares | ||||||||||||||||
Sold | 154,062 | $1,450,645 | 34,475,132 | $356,592,069 | ||||||||||||
Distributions reinvested | 1,204,688 | 14,600,822 | — | — | ||||||||||||
Repurchased | (4,997,169) | (61,080,941) | (4,502,323) | (51,862,570) | ||||||||||||
Net increase (decrease) | (3,638,419) | $(45,029,474) | 29,972,809 | $304,729,499 | ||||||||||||
Total net increase (decrease) | (3,593,629) | $(44,452,602) | 30,036,402 | $305,413,859 |
1 | Period from 12-14-18 (commencement of operations) to 10-31-19. |
Affiliates of the fund owned 18%, 78%, 70% and 100% of shares of Class C, Class I, Class R6 and Class NAV, respectively, on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $193,053,703 and $248,003,581, respectively, for the year ended October 31, 2020.
Note 7 — Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors.
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2020, funds within the John Hancock group of funds complex held 99.6% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
Portfolio | Affiliated Concentration | |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 49.9% | |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 26.8% | |
John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 22.9% |
Note 9 — Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 29 |
Table of Contents
|
Dividends and distributions | ||||||||||||||||||||||||||||||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value | |||||||||||||||||||||||||||
John Hancock Collateral Trust* | 363,472 | $9,563,965 | $24,696,393 | $(30,623,493) | $1,398 | $(412) | $21,303 | — | $3,637,851 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
Note 10 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
30 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Global Thematic Opportunities Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock Global Thematic Opportunities Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020 and the statements of changes in net assets and the financial highlights for the year ended October 31, 2020 and for the period December 14, 2018 (commencement of operations) through October 31, 2019, including the related notes (collectively referred to as the ”financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year ended October 31, 2020, and the changes in its net assets and the financial highlights for the year ended October 31, 2020 and for the period December 14, 2018 (commencement of operations) through October 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 31 |
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
32 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Pictet Asset Management SA (the Subadvisor), for John Hancock Global Thematic Opportunities Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25,2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreement, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from
1On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the ”Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 33 |
Table of Contents
|
their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
34 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index and peer group median for the one-year period ended December 31, 2019. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to the benchmark and peer group median for the one-year period. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are lower than the peer group median.
The Board took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 35 |
Table of Contents
|
increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is |
36 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 37 |
Table of Contents
|
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third-party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
38 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 39 |
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years
| since1
| Trustee
| ||
Hassell H. McClellan, Born: 1945 | 2012 | 196 |
Trustee and Chairperson of the Board
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 |
Trustee
Director, Island Commuter Corp. (marine transport).Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015 | 196 |
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 |
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010).Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 |
Trustee
Professor, University of Texas, Austin, Texas (since 1971);former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 |
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).
40 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
Independent Trustees (continued) | ||||
Name, year of birth | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years
| since1
| Trustee
| ||
Deborah C. Jackson, Born: 1952 | 2008 | 196 | ||
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
| ||||
James M. Oates,2 Born: 1946 | 2012 | 196 | ||
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
| ||||
Steven R. Pruchansky, Born: 1944 | 1994 | 196 | ||
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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 | 196 | ||
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020). |
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 41 |
Table of Contents
|
Independent Trustees (continued) | ||||
Name, year of birth | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years
| since1
| Trustee
| ||
Gregory A. Russo, Born: 1949 | 2009 | 196 |
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 | Trustee | Number of John | ||
Position(s) held with Trust | of the | Hancock funds | ||
Principal occupation(s) and other | Trust | overseen by | ||
directorships during past 5 years
| since1
| Trustee
| ||
Andrew G. Arnott, Born: 1971 | 2017 | 196 | ||
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
| ||||
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
42 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
|
Principal officers who are not Trustees | ||
Name, year of birth | Trustee | |
Position(s) held with Trust | of the | |
Principal occupation(s) | Trust | |
during past 5 years
| since1
| |
Charles A. Rizzo, Born: 1957 | 2007 | |
Chief Financial Officer |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
Salvatore Schiavone, Born: 1965 | 2010 |
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 | |||
Chief Legal Officer and Secretary |
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015);Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).
Trevor Swanberg, Born: 1979 | 2020 | |||
Chief Compliance Officer |
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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).
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023. |
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291. |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
| ANNUAL REPORT | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | 43 |
Table of Contents
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
James M. Oates*
Frances G. Rathke1,*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
* | Member of the Audit Committee |
† | Non-Independent Trustee |
1 | Appointed as Independent Trustee effective as of September 15, 2020 |
2 | Effective July 31, 2020 |
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Pictet Asset Management SA
Portfolio Managers
Hans Peter Portner, CFA
Gertjan Van Der Geer
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407 | ||||
44 | JOHN HANCOCK GLOBAL THEMATIC OPPORTUNITIES FUND | ANNUAL REPORT |
|
Table of Contents
Protect yourself by using eDelivery
|
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
◾ |
Added security: Password protection helps you safely retrieve documents online | |||
◾ |
Save time: Receive instant email notification once statements are available | |||
◾ |
Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling |
SIGN UP FOR EDELIVERY TODAY!
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report
Table of Contents
Get your questions answered by using our shareholder resources
|
ONLINE
◾ |
Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |||
◾ |
Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |||
◾ |
Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |||
◾ |
Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. |
BY PHONE
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00 A.M. to 7:00 P.M., and Friday, 8:00 A.M. to 6:00 P.M., Eastern time. We’re here to help!
Not part of the shareholder report
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock Global Thematic Opportunities Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399347 | 471A 10/20 | |||
12/2020 |
Table of Contents
Table of Contents
Dear shareholders,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. The governments of many nations worked to shore up their economies, and equity markets began to rise from their first-quarter sell-off; this comeback gathered momentum for the remainder of the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain parts of the world have been reinstated and consumer spending remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
Table of Contents
John Hancock
International Dynamic Growth Fund
Table of contents | ||||||
2 | Your fund at a glance | |||||
4 | Manager’s discussion of fund performance | |||||
6 | A look at performance | |||||
8 | ||||||
10 | ||||||
13 | ||||||
16 | ||||||
21 | ||||||
30 | ||||||
31 | ||||||
32 | Continuation of investment advisory and subadvisory agreements | |||||
39 | ||||||
43 |
|
1 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The MSCI All Country World ex-USA Growth Index is a free float-adjusted market capitalization index that is designed to measure the equity performance of growth-oriented stocks in developed (excluding the U.S.) and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since inception returns for the Morningstar fund category average are not available.
1Class A shares were first offered on 5-3-19. Returns prior to this date are those of Class NAV shares that have not been adjusted for class-specific expenses; otherwise, returns would vary.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 2 |
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
Global stocks recovered from a sharp pandemic-driven decline | ||||
The coronavirus pandemic triggered a sudden downturn in the economy and the stock market, but a massive fiscal and monetary response helped to restore growth, and global stocks generated positive performance overall. | ||||
The fund significantly outpaced its benchmark index due to stock selection | ||||
The fund outperformed its benchmark, the MSCI AC World ex-USA Growth Index, owing in part to contributions from stock selection and allocation effects in the information technology, consumer staples, and consumer discretionary sectors. | ||||
Stock picking in selected sectors hindered relative performance | ||||
Security selection in the healthcare and industrials sectors weighed on relative performance, as did an underweight in the outperforming communication services sector. |
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
|
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
3 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
Manager’s discussion of fund performance
|
What were the main drivers of global equity market performance during the 12 months ended October 31, 2020?
Most global stocks, as measured by the fund’s benchmark, the MSCI AC World ex-USA Growth Index, posted positive returns overall, as they recovered from a sharp decline in February and March that was triggered by the coronavirus pandemic and its impact on the economy. Restrictions imposed to slow the spread of COVID-19 reversed the strong economic growth recorded early in the period. Central banks responded with aggressive monetary policy measures to provide immediate and substantial liquidity to the global economy, and many governments launched massive fiscal stimulus initiatives. Entering the spring, stocks rebounded sharply, and they maintained a largely positive path in subsequent months, driven by policy responses, the gradual reopening of many segments of the global economy, and favorable news on vaccine development.
How did the fund perform?
The fund outperformed its benchmark, thanks primarily to stock selection in the information technology, consumer discretionary, and consumer staples sectors. On the negative side, relative performance was hindered by stock picking in the healthcare and industrials sectors and by the fund’s underweight in communication services, a sector that outperformed.
TOP 10 HOLDINGS | TOP 10 COUNTRIES | |||||||||||||||||||||||
AS OF 10/31/2020 (% of net assets) | AS OF 10/31/2020 (% of net assets) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Alibaba Group Holding, Ltd., ADR | 5.1 | China | 19.4 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 5.0 | United States | 14.4 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Tencent Holdings, Ltd. | 4.7 | Japan | 7.8 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
JD.com, Inc., ADR | 4.3 | France | 7.1 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Sartorius Stedim Biotech | 4.0 | Canada | 6.9 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Techtronic Industries Company, Ltd. | 3.9 | Netherlands | 6.6 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
ASML Holding NV | 3.8 | Sweden | 5.8 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Lonza Group AG | 3.6 | Taiwan | 5.0 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
ServiceNow, Inc. | 3.5 | Switzerland | 3.9 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Adobe, Inc. | 3.4 | Hong Kong | 3.9 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
TOTAL | 41.3 | TOTAL | 80.8 | |||||||||||||||||||||
Cash and cash equivalents are not included. | Cash and cash equivalents are not included. | |||||||||||||||||||||||
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 4 |
Table of Contents
|
What were the key drivers of relative performance?
The top contributor was online payment services provider Adyen NV (Netherlands). Adyen’s payment technology has been adopted by leading global technology platforms and continues to benefit from the shift toward e-commerce and enterprise digital transformation. Other holdings that notably contributed to relative performance were supermarket operator Kobe Bussan Company, Ltd. (Japan), whose unique product assortment and value-bulk food offering were enhanced by consumers’ desire to eat at home during | MANAGED BY
Andrew H. Jacobson, CFA Bradley Amoils
| |||
the pandemic; multinational software company Adobe, Inc. (U.S.); and online casino gaming company Evolution Gaming Group AB (Sweden), which benefited from casino shutdowns as they’re a world leader in online live gaming. |
Airbus SE (France) had the most significant negative effect, as shares of the commercial aviation company were hurt by coronavirus-related travel restrictions affecting airlines. We sold the position prior to period end. Other positions that weighed on relative performance were civil aviation training provider CAE, Inc. (Canada) and e-commerce company Shopify, Inc. (Canada). We sold the fund’s position in CAE during the period. The fund’s underweight in multinational technology company Tencent Holdings, Ltd. (China) also had a negative impact, as the stock outperformed.
The views expressed in this report are exclusively those of Andrew H. Jacobson, Axiom Investors, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
5 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | |||||||||||||||||||||
1-year | Since inception (4-17-19) | Since inception (4-17-19) | ||||||||||||||||||||
Class A1 | 20.08 | 16.04 | 25.79 | |||||||||||||||||||
Class C1 | 24.48 | 19.13 | 31.00 | |||||||||||||||||||
Class I1,2 | 26.64 | 20.29 | 32.97 | |||||||||||||||||||
Class R61,2 | 26.82 | 20.40 | 33.16 | |||||||||||||||||||
Class NAV2 | 26.92 | 20.47 | 33.27 | |||||||||||||||||||
Index† | 11.43 | 10.24 | 16.22 |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual fee waivers and expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R6 | Class NAV | ||||||||
Gross (%) | 1.30 | 2.05 | 1.05 | 0.94 | 0.93 | |||||||
Net (%) | 1.20 | 1.95 | 0.95 | 0.84 | 0.83 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the MSCI All Country World ex-USA Growth Index. |
See the following page for footnotes.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 6 |
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock International Dynamic Growth Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the MSCI All Country World ex-USA Growth Index
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||||
Class C1,3 | 4-17-19 | 13,100 | 13,100 | 11,622 | ||||||||||||
Class I1,2 | 4-17-19 | 13,297 | 13,297 | 11,622 | ||||||||||||
Class R61,2 | 4-17-19 | 13,316 | 13,316 | 11,622 | ||||||||||||
Class NAV2 | 4-17-19 | 13,327 | 13,327 | 11,622 |
The MSCI All Country World ex-USA Growth Index is a free float-adjusted market capitalization index that is designed to measure the equity performance of growth-oriented stocks in developed (excluding the U.S.) and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | Class A, Class C, Class I, and Class R6 shares were first offered on 5-3-19. Returns prior to this date are those of Class NAV shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
2 | For certain types of investors, as described in the fund’s prospectuses. |
3 | The contingent deferred sales charge is not applicable. |
7 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 8 |
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 5-1-2020 | Ending value on 10-31-2020 | Expenses paid during period ended 10-31-20201 | Annualized expense ratio | |||||||||||||||
Class A |
Actual expenses/actual returns |
|
$1,000.00 |
|
|
$1,295.50 |
|
|
$ 6.92 |
|
|
1.20% |
| |||||
Hypothetical example | 1,000.00 | 1,019.10 | 6.09 | 1.20% | ||||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,291.90 | 11.29 | 1.96% | |||||||||||||
Hypothetical example | 1,000.00 | 1,015.30 | 9.93 | 1.96% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,297.20 | 5.49 | 0.95% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.40 | 4.82 | 0.95% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,298.10 | 4.85 | 0.84% | |||||||||||||
Hypothetical example | 1,000.00 | 1,020.90 | 4.27 | 0.84% | ||||||||||||||
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,299.10 | 4.80 | 0.83% | |||||||||||||
Hypothetical example | 1,000.00 | 1,021.00 | 4.22 | 0.83% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
9 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
AS OF 10-31-20
Shares | Value | |||||||
Common stocks 97.6% | $ | 241,333,558 | ||||||
(Cost $176,286,868) | ||||||||
Argentina 2.0% | 4,875,625 | |||||||
MercadoLibre, Inc. (A) | 4,016 | 4,875,625 | ||||||
Australia 1.1% | 2,728,669 | |||||||
Atlassian Corp. PLC, Class A (A) | 14,240 | 2,728,669 | ||||||
Belgium 1.0% | 2,348,385 | |||||||
UCB SA | 23,776 | 2,348,385 | ||||||
Brazil 2.2% | 5,430,838 | |||||||
Magazine Luiza SA | 1,265,200 | 5,430,838 | ||||||
Canada 6.9% | 17,173,098 | |||||||
Kinaxis, Inc. (A) | 25,000 | 3,816,333 | ||||||
Lululemon Athletica, Inc. (A) | 17,034 | 5,438,786 | ||||||
Shopify, Inc., Class A (A) | 8,556 | 7,917,979 | ||||||
China 19.4% | 48,088,769 | |||||||
Alibaba Group Holding, Ltd., ADR (A) | 41,582 | 12,669,617 | ||||||
Contemporary Amperex Technology Company, Ltd., Class A | 70,714 | 2,597,048 | ||||||
JD.com, Inc., ADR (A) | 129,780 | 10,579,666 | ||||||
Kweichow Moutai Company, Ltd., Class A | 9,900 | 2,473,486 | ||||||
Li Ning Company, Ltd. | 510,000 | 2,658,090 | ||||||
Meituan, Class B (A) | 149,100 | 5,558,327 | ||||||
Tencent Holdings, Ltd. | 151,200 | 11,552,535 | ||||||
France 7.1% | 17,518,326 | |||||||
Ingenico Group SA (A)(B) | 19,468 | 2,799,011 | ||||||
Sartorius Stedim Biotech | 26,010 | 9,867,172 | ||||||
Teleperformance | 16,164 | 4,852,143 | ||||||
Germany 2.8% | 6,982,287 | |||||||
Deutsche Boerse AG | 20,730 | 3,054,629 | ||||||
TeamViewer AG (A)(B)(C) | 25,056 | 1,104,416 | ||||||
Zalando SE (A)(C) | 30,317 | 2,823,242 | ||||||
Hong Kong 3.9% | 9,543,029 | |||||||
Techtronic Industries Company, Ltd. | 708,500 | 9,543,029 | ||||||
Ireland 1.2% | 3,012,819 | |||||||
Experian PLC | 82,241 | 3,012,819 | ||||||
Israel 1.7% | 4,108,680 | |||||||
Nice, Ltd., ADR (A) | 18,000 | 4,108,680 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 10 |
Table of Contents
|
Shares | Value | |||||||
Italy 0.9% | $ | 2,210,185 | ||||||
Nexi SpA (A)(C) | 143,574 | 2,210,185 | ||||||
Japan 7.8% | 19,337,201 | |||||||
Anritsu Corp. | 190,200 | 4,163,947 | ||||||
Keyence Corp. | 7,800 | 3,539,815 | ||||||
Kobe Bussan Company, Ltd. (B) | 85,600 | 2,408,361 | ||||||
Lasertec Corp. | 39,900 | 3,456,170 | ||||||
M3, Inc. | 31,600 | 2,134,129 | ||||||
Sony Corp. | 43,600 | 3,634,779 | ||||||
Netherlands 6.6% | 16,298,372 | |||||||
Adyen NV (A)(C) | 4,161 | 6,993,552 | ||||||
ASML Holding NV | 25,718 | 9,304,820 | ||||||
New Zealand 1.8% | 4,485,968 | |||||||
Xero, Ltd. (A) | 57,825 | 4,485,968 | ||||||
Singapore 3.3% | 8,023,776 | |||||||
Sea, Ltd., ADR (A) | 50,880 | 8,023,776 | ||||||
Sweden 5.8% | 14,401,570 | |||||||
Atlas Copco AB, A Shares | 137,949 | 6,089,234 | ||||||
Evolution Gaming Group AB (C) | 112,071 | 8,312,336 | ||||||
Switzerland 3.9% | 9,645,128 | |||||||
Lonza Group AG | 14,538 | 8,808,723 | ||||||
Zur Rose Group AG (A) | 3,006 | 836,405 | ||||||
Taiwan 5.0% | 12,446,308 | |||||||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 148,400 | 12,446,308 | ||||||
United Kingdom 1.0% | 2,391,567 | |||||||
AstraZeneca PLC | 23,819 | 2,391,567 | ||||||
United States 12.2% | 30,282,958 | |||||||
Adobe, Inc. (A) | 18,948 | 8,471,651 | ||||||
Microsoft Corp. | 35,373 | 7,161,971 | ||||||
NVIDIA Corp. | 7,029 | 3,524,059 | ||||||
ServiceNow, Inc. (A) | 17,600 | 8,757,232 | ||||||
Visa, Inc., Class A | 13,032 | 2,368,045 | ||||||
Exchange-traded funds 2.2%
| $ | 5,430,210 | ||||||
(Cost $5,679,394) iShares Core MSCI Total International Stock ETF | 95,100 | 5,430,210 |
11 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
Yield | (%) | Shares | Value | |||||||||
Short-term investments 2.1% | $ | 5,197,077 | ||||||||||
(Cost $5,197,407) | ||||||||||||
Short-term funds 2.1% | 5,197,077 | |||||||||||
John Hancock Collateral Trust (D)
|
| 0.2508
| (E)
|
| 519,261
|
|
| 5,197,077
|
| |||
Total investments (Cost $187,163,669) 101.9% | $ | 251,960,845 | ||||||||||
Other assets and liabilities, net (1.9%) | (4,599,978 | ) | ||||||||||
Total net assets 100.0% | $ | 247,360,867 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
Security Abbreviations and Legend
ADR | American Depositary Receipt |
(A) | Non-income producing security. |
(B) | All or a portion of this security is on loan as of 10-31-20. |
(C) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(D) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(E) | The rate shown is the annualized seven-day yield as of 10-31-20. |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $189,483,164. Net unrealized appreciation aggregated to $62,477,681, of which $63,329,982 related to gross unrealized appreciation and $852,301 related to gross unrealized depreciation.
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 12 |
Table of Contents
|
STATEMENT OF ASSETS AND LIABILITIES 10-31-20
Assets | ||||
Unaffiliated investments, at value (Cost $181,966,262) including $4,544,019 of securities loaned | $246,763,768 | |||
Affiliated investments, at value (Cost $5,197,407) | 5,197,077 | |||
Total investments, at value (Cost $187,163,669) | 251,960,845 | |||
Cash | 2,368,294 | |||
Dividends and interest receivable | 195,752 | |||
Receivable for fund shares sold | 85,281 | |||
Receivable for investments sold | 2,435,080 | |||
Receivable for securities lending income | 3,953 | |||
Other assets | 41,332 | |||
Total assets | 257,090,537 | |||
Liabilities | ||||
Payable for investments purchased | 4,368,643 | |||
Payable for fund shares repurchased | 40,245 | |||
Payable upon return of securities loaned | 5,199,068 | |||
Payable to affiliates | ||||
Investment management fees | 13,431 | |||
Accounting and legal services fees | 9,304 | |||
Transfer agent fees | 1,441 | |||
Trustees’ fees | 60 | |||
Other liabilities and accrued expenses | 97,478 | |||
Total liabilities | 9,729,670 | |||
Net assets | $247,360,867 | |||
Net assets consist of | ||||
Paid-in capital | $169,962,331 | |||
Total distributable earnings (loss) | 77,398,536 | |||
Net assets | $247,360,867 | |||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class A ($5,847,155 ÷ 441,674 shares)1 | $13.24 | |||
Class C ($150,964 ÷ 11,526 shares)1 | $13.10 | |||
Class I ($9,334,187 ÷ 703,286 shares) | $13.27 | |||
Class R6 ($66,059 ÷ 4,974 shares) | $13.28 | |||
Class NAV ($231,962,502 ÷ 17,460,884 shares) | $13.28 | |||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95%)2 | $13.94 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
13 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
STATEMENT OF OPERATIONS For the year ended 10-31-20
Investment income | ||||
Dividends | $2,202,818 | |||
Securities lending | 189,317 | |||
Interest | 153,226 | |||
Less foreign taxes withheld | (215,499) | |||
Total investment income | 2,329,862 | |||
Expenses | ||||
Investment management fees | 2,344,015 | |||
Distribution and service fees | 6,466 | |||
Accounting and legal services fees | 57,356 | |||
Transfer agent fees | 11,621 | |||
Trustees’ fees | 4,873 | |||
Custodian fees | 124,756 | |||
State registration fees | 87,507 | |||
Printing and postage | 18,829 | |||
Professional fees | 82,022 | |||
Other | 35,120 | |||
Total expenses | 2,772,565 | |||
Less expense reductions | (350,779) | |||
Net expenses | 2,421,786 | |||
Net investment loss | (91,924) | |||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | 20,041,772 | |||
Affiliated investments | 10,039 | |||
20,051,811 | ||||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 43,464,581 | |||
Affiliated investments | (37) | |||
43,464,544 | ||||
Net realized and unrealized gain | 63,516,355 | |||
Increase in net assets from operations | $63,424,431 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 14 |
Table of Contents
|
STATEMENTS OF CHANGES IN NET ASSETS
Year ended 10-31-20 | Period ended 10-31-191 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income (loss) | $(91,924 | ) | $934,951 | |||||
Net realized gain (loss) | 20,051,811 | (7,397,617 | ) | |||||
Change in net unrealized appreciation (depreciation) | 43,464,544 | 21,339,178 | ||||||
Increase in net assets resulting from operations | 63,424,431 | 14,876,512 | ||||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (303 | ) | — | |||||
Class I | (272 | ) | — | |||||
Class R6 | (148 | ) | — | |||||
Class NAV | (948,844 | ) | — | |||||
Total distributions | (949,567 | ) | — | |||||
From fund share transactions | (153,083,187 | ) | 323,092,678 | |||||
Total increase (decrease) | (90,608,323 | ) | 337,969,190 | |||||
Net assets | ||||||||
Beginning of year | 337,969,190 | — | ||||||
End of year | $247,360,867 | $337,969,190 |
1 | Period from 4-17-19 (commencement of operations) to 10-31-19. |
15 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS A SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.48 | $10.09 | ||||||
Net investment loss2 | (0.06 | ) | (0.02 | ) | ||||
Net realized and unrealized gain (loss) on investments | 2.82 | 0.41 | ||||||
Total from investment operations | 2.76 | 0.39 | ||||||
Less distributions | ||||||||
From net investment income | — | 3 | — | |||||
Net asset value, end of period | $13.24 | $10.48 | ||||||
Total return (%)4,5 | 26.39 | 3.87 | 6 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $6 | $1 | ||||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 1.32 | 1.33 | 7 | |||||
Expenses including reductions | 1.20 | 1.20 | 7 | |||||
Net investment loss | (0.50 | ) | (0.31 | )7 | ||||
Portfolio turnover (%) | 135 | 48 |
1 | The inception date for Class A shares is 5-3-19. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Does not reflect the effect of sales charges, if any. |
6 | Not annualized. |
7 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 16 |
Table of Contents
|
CLASS C SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.44 | $10.09 | ||||||
Net investment loss2 | (0.14 | ) | (0.04 | ) | ||||
Net realized and unrealized gain (loss) on investments | 2.80 | 0.39 | ||||||
Total from investment operations | 2.66 | 0.35 | ||||||
Net asset value, end of period | $13.10 | $10.44 | ||||||
Total return (%)3,4 | 25.48 | 3.47 | 5 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $— | 6 | $— | 6 | ||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 2.07 | 2.08 | 7 | |||||
Expenses including reductions | 1.95 | 1.95 | 7 | |||||
Net investment loss | (1.21 | ) | (0.75 | )7 | ||||
Portfolio turnover (%) | 135 | 48 |
1 | The inception date for Class C shares is 5-3-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
17 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS I SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.50 | $10.09 | ||||||
Net investment income2 | — | 3 | 0.02 | |||||
Net realized and unrealized gain (loss) on investments | 2.79 | 0.38 | ||||||
Total from investment operations | 2.79 | 0.40 | ||||||
Less distributions | ||||||||
From net investment income | (0.02 | ) | — | |||||
Net asset value, end of period | $13.27 | $10.50 | ||||||
Total return (%)4 | 26.64 | 4.06 | 5 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $9 | $— | 6 | |||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 1.08 | 1.08 | 7 | |||||
Expenses including reductions | 0.95 | 0.95 | 7 | |||||
Net investment income | 0.01 | 0.31 | 7 | |||||
Portfolio turnover (%) | 135 | 48 |
1 | The inception date for Class I shares is 5-3-19. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 18 |
Table of Contents
|
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.50 | $10.09 | ||||||
Net investment income (loss)2 | (0.01 | ) | 0.02 | |||||
Net realized and unrealized gain (loss) on investments | 2.82 | 0.39 | ||||||
Total from investment operations | 2.81 | 0.41 | ||||||
Less distributions | ||||||||
From net investment income | (0.03 | ) | — | |||||
Net asset value, end of period | $13.28 | $10.50 | ||||||
Total return (%)3 | 26.82 | 4.06 | 4 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $— | 5 | $— | 5 | ||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 0.96 | 0.98 | 6 | |||||
Expenses including reductions | 0.84 | 0.84 | 6 | |||||
Net investment income (loss) | (0.07 | ) | 0.45 | 6 | ||||
Portfolio turnover (%) | 135 | 48 |
1 | The inception date for Class R6 shares is 5-3-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Less than $500,000. |
6 | Annualized. |
19 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
|
CLASS NAV SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.50 | $10.00 | ||||||
Net investment income2 | — | 3 | 0.03 | |||||
Net realized and unrealized gain (loss) on investments | 2.81 | 0.47 | ||||||
Total from investment operations | 2.81 | 0.50 | ||||||
Less distributions | ||||||||
From net investment income | (0.03 | ) | — | |||||
Net asset value, end of period | $13.28 | $10.50 | ||||||
Total return (%)4 | 26.92 | 5.00 | 5 | |||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $232 | $337 | ||||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 0.95 | 0.96 | 6 | |||||
Expenses including reductions | 0.83 | 0.83 | 6 | |||||
Net investment income (loss) | (0.03 | ) | 0.62 | 6 | ||||
Portfolio turnover (%) | 135 | 48 |
1 | Period from 4-17-19 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 20 |
Table of Contents
|
Note 1 — Organization
John Hancock International Dynamic Growth Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply).
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE.
21 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund’s Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund’s investments as of October 31, 2020, by major security category or type:
Total value at 10-31-20 | Level 1 quoted price | Level 2 significant observable inputs | | Level 3 significant unobservable inputs |
| |||||
Investments in securities: | ||||||||||
Assets | ||||||||||
Common stocks | ||||||||||
Argentina | $4,875,625 | $4,875,625 | — | — | ||||||
Australia | 2,728,669 | 2,728,669 | — | — | ||||||
Belgium | 2,348,385 | — | $2,348,385 | — | ||||||
Brazil | 5,430,838 | 5,430,838 | — | — | ||||||
Canada | 17,173,098 | 17,173,098 | — | — | ||||||
China | 48,088,769 | 23,249,283 | 24,839,486 | — | ||||||
France | 17,518,326 | — | 17,518,326 | — | ||||||
Germany | 6,982,287 | — | 6,982,287 | — | ||||||
Hong Kong | 9,543,029 | — | 9,543,029 | — | ||||||
Ireland | 3,012,819 | — | 3,012,819 | — | ||||||
Israel | 4,108,680 | 4,108,680 | — | — | ||||||
Italy | 2,210,185 | — | 2,210,185 | — | ||||||
Japan | 19,337,201 | — | 19,337,201 | — | ||||||
Netherlands | 16,298,372 | — | 16,298,372 | — | ||||||
New Zealand | 4,485,968 | — | 4,485,968 | — | ||||||
Singapore | 8,023,776 | 8,023,776 | — | — | ||||||
Sweden | 14,401,570 | — | 14,401,570 | — | ||||||
Switzerland | 9,645,128 | — | 9,645,128 | — | ||||||
Taiwan | 12,446,308 | 12,446,308 | — | — |
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 22 |
Table of Contents
|
Total value at 10-31-20 | Level 1 quoted price | Level 2 significant observable inputs | | Level 3 significant unobservable inputs |
| |||||
United Kingdom | $2,391,567 | — | $2,391,567 | — | ||||||
United States | 30,282,958 | $30,282,958 | — | — | ||||||
Exchange-traded funds | 5,430,210 | 5,430,210 | — | — | ||||||
Short-term investments | 5,197,077 | 5,197,077 | — | — | ||||||
Total investments in securities | $251,960,845 | $118,946,522 | $133,014,323 | — |
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex-date, except for dividends of certain foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives collateral from the borrower in an amount not less than the market value of the loaned securities. The fund will invest its cash collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission (SEC) as an investment company. JHCT invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of loss on securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of October 31, 2020, the fund loaned securities valued at $4,544,019 and received $5,199,068 of cash collateral.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
23 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $4,412.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
Qualified late year ordinary losses of $181,628 are treated as occurring on November 1, 2020, the first day of the fund’s next taxable year.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 24 |
Table of Contents
|
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the year ended October 31, 2020 and for the period ended October 31, 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||
Ordinary income | $799,540 | — | ||||
Long-term capital gains | 150,027 | — | ||||
Total | $949,567 | — |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $15,095,937 of undistributed long-term capital gains.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s financial statements as a return of capital.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals.
Note 3 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Investment Management LLC (the Advisor) serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 0.810% of the first $1 billion of the fund’s average daily net assets; and (b) 0.750% of the fund’s average daily net assets in excess of $1 billion. When aggregate net assets exceed $1 billion on any day, the annual rate of advisory fee for that day is
0.750% on all assets. The Advisor has a subadvisory agreement with Axiom International Investors, LLC. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
25 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
The Advisor has contractually agreed to reduce its management fee for the fund, or if necessary, make payment to the fund, in an amount equal to the amount by which the fund’s expenses exceed 0.83% of average daily net assets, on an annualized basis. Expenses means all the expenses of the fund, excluding taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business, class-specific expenses, acquired fund fees and expenses paid indirectly, borrowing costs, prime brokerage fees, and short dividend expense. This current limitation expires on February 28, 2021, unless renewed by mutual agreement of the fund and Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $2,859 | |||
Class C | 125 | |||
Class I | 9,429 |
Class | Expense reduction | |||
Class R6 | $71 | |||
Class NAV | 338,295 | |||
Total | $350,779 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 0.69% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | |||
Class A | 0.25% | |||
Class C | 1.00% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $8,485 for the year ended October 31, 2020. Of this amount, $996 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $7,489 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, there were no CDSCs received by the Distributor for Class A and Class C shares.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 26 |
Table of Contents
|
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $5,475 | $2,678 | ||||||
Class C | 991 | 123 | ||||||
Class I | — | 8,813 | ||||||
Class R6 | — | 7 | ||||||
Total | $6,466 | $11,621 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the fund to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. Interest expense is included in Other expenses on the Statement of operations. The fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) | ||||||||||||
Borrower | $5,063,378 | 11 | 0.592 | % | $(916) | |||||||||||
Lender | 3,951,522 | 2 | 1.350 | % | 296 |
27 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
Note 5 — Fund share transactions
Transactions in fund shares for the year ended October 31, 2020 and for the period ended October 31, 2019 were as follows:
Year Ended 10-31-20 | Period ended 10-31-191 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares2 | ||||||||||||||||
Sold | 439,562 | $5,392,087 | 65,429 | $661,130 | ||||||||||||
Distributions reinvested | 28 | 303 | — | — | ||||||||||||
Repurchased | (54,001) | (612,898) | (9,344) | (96,269) | ||||||||||||
Net increase | 385,589 | $4,779,492 | 56,085 | $564,861 | ||||||||||||
Class C shares2 | ||||||||||||||||
Sold | 5,280 | $65,251 | 7,184 | $72,084 | ||||||||||||
Repurchased | (938) | (11,789) | — | — | ||||||||||||
Net increase | 4,342 | $53,462 | 7,184 | $72,084 | ||||||||||||
Class I shares2 | ||||||||||||||||
Sold | 1,239,004 | $14,415,431 | 7,286 | $74,050 | ||||||||||||
Distributions reinvested | 15 | 161 | — | — | ||||||||||||
Repurchased | (543,019) | (6,022,992) | — | — | ||||||||||||
Net increase | 696,000 | $8,392,600 | 7,286 | $74,050 | ||||||||||||
Class R6 shares2 | ||||||||||||||||
Sold | 19 | $250 | 4,955 | $50,000 | ||||||||||||
Net increase | 19 | $250 | 4,955 | $50,000 | ||||||||||||
Class NAV shares | ||||||||||||||||
Sold | 553,146 | $5,507,296 | 34,497,810 | $346,799,399 | ||||||||||||
Distributions reinvested | 86,494 | 948,844 | — | — | ||||||||||||
Repurchased | (15,282,773) | (172,765,131) | (2,393,793) | (24,467,716) | ||||||||||||
Net increase | (14,643,133) | $(166,308,991) | 32,104,017 | $322,331,683 | ||||||||||||
Total net increase (decrease) | (13,557,183) | $(153,083,187) | 32,179,527 | $323,092,678 |
1 | Period from 4-17-19 (commencement of operations) to 10-31-19. |
2 | The inception date for Class A, Class C, Class I and Class R6 shares is 5-3-19. |
Affiliates of the fund owned 43%, 100% and 100% of shares of Class C, Class R6 and Class NAV, respectively, on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $389,778,523 and $544,525,636, respectively, for the year ended October 31, 2020.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 28 |
Table of Contents
|
Note 7 — Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund’s assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund’s NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors.
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2020, funds within the John Hancock group of funds complex held 93.8% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
Portfolio | Affiliated Concentration | |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 31.3% | |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 26.6% | |
John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 15.5% | |
John Hancock Funds II Multimanager Lifestyle Moderate Portfolio | 5.6% |
Note 9 — Investment in affiliated underlying funds
The fund may invest in affiliated underlying funds that are managed by the Advisor and its affiliates. Information regarding the fund’s fiscal year to date purchases and sales of the affiliated underlying funds as well as income and capital gains earned by the fund, if any, is as follows:
Dividends and distributions | ||||||||||||||||||||||||||||||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value | |||||||||||||||||||||||||||
John Hancock Collateral Trust* | 519,261 | $10,468,469 | $109,129,136 | $(114,410,530) | $10,039 | $(37) | $189,317 | — | $5,197,077 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
Note 10 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
29 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock International Dynamic Growth Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s investments, of John Hancock International Dynamic Growth Fund (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related statement of operations for the year ended October 31, 2020, the statements of changes in net assets for the year ended October 31, 2020 and for the period April 17, 2019 (commencement of operations) through October 31, 2019, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year ended October 31, 2020, the changes in its net assets for the year ended October 31, 2020 and for the period April 17, 2019 (commencement of operations) through October 31, 2019 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 30 |
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
Income derived from foreign sources was $1,677,151. The fund intends to pass through foreign tax credits of $209,128.
The fund paid $150,027 in long term capital gain dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
31 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Axiom International Investors (the Subadvisor), for John Hancock International Dynamic Growth Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic1 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from
1On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the “Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 32 |
Table of Contents
|
their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
33 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index and peer group median for the period from April 30, 2019 through December 31, 2019. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to the benchmark and peer group median for the period from April 30, 2019 through December 31, 2019. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are lower than the peer group median.
The Board took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 34 |
Table of Contents
|
increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is |
35 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 36 |
Table of Contents
|
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third-party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
37 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 38 |
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since |
1 | | Number of John Hancock funds overseen by Trustee |
| ||
Hassell H. McClellan, Born: 1945 | 2012 | 196 |
Trustee and Chairperson of the Board
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 |
Trustee
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015 | 196 |
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 |
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 |
Trustee
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 |
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).
39 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since |
1 | | Number of John Hancock funds overseen by Trustee |
| ||
Deborah C. Jackson, Born: 1952 | 2008 | 196 |
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946 | 2012 | 196 |
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994 | 196 |
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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 | 196 |
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 40 |
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since |
1 | | Number of John Hancock funds overseen by Trustee |
| ||
Gregory A. Russo, Born: 1949 | 2009 | 196 |
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 Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since |
1 | | Number of John Hancock funds overseen by Trustee |
| ||
Andrew G. Arnott, Born: 1971 | 2017 | 196 |
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
41 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
|
Principal officers who are not Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years
| Officer of the Trust since
| |||
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
Salvatore Schiavone, Born: 1965 | 2010 |
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 |
Chief Legal Officer and Secretary
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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).
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023. |
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291. |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
| ANNUAL REPORT | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | 42 |
Table of Contents
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
James M. Oates*
Frances G. Rathke1,*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Axiom International Investors LLC
Portfolio Managers
Bradley Amoils
Andrew Jacobson, CFA
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
* | Member of the Audit Committee |
† | Non-Independent Trustee |
1 | Appointed as Independent Trustee effective as of September 15, 2020 |
2 | Effective July 31, 2020 |
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407 | ||||
43 | JOHN HANCOCK INTERNATIONAL DYNAMIC GROWTH FUND | ANNUAL REPORT |
|
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock International Dynamic Growth Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399352 | 474A 10/20 | |||
12/2020 |
Table of Contents
Table of Contents
Dear shareholders,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. The governments of many nations worked to shore up their economies, and equity markets began to rise from their first-quarter sell-off; this comeback gathered momentum for the remainder of the period.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain parts of the world have been reinstated and consumer spending remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
|
John Hancock
Diversified Macro Fund
1 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/2020 (%)
The ICE Bank of America 0–3 Month U.S. Treasury Bill Index tracks the performance of U.S. dollar-denominated U.S. Treasury bills publicly issued in the U.S. domestic market with a remaining term to final maturity of less than three months.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The fund’s Morningstar category average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on their historical portfolio holdings. Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 2 |
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE LAST TWELVE MONTHS
COVID-19 pandemic affected markets | ||||
Business closures and quarantine measures, coupled with general fear, triggered a major drop-off in economic activity and pushed investors to safety. | ||||
The fund posted a loss and underperformed its benchmark, the ICE Bank of America 0–3 Month U.S. Treasury Bill Index | ||||
The short-term volatility challenged the fund’s intermediate- to long-term directional strategies, particularly long positions in European equity indexes. | ||||
Commodity strategy helped fund mitigate its loss | ||||
The fund’s strategy in commodities, primarily from positions in energy and metals, performed positively. |
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
3 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
Manager’s discussion of fund performance
|
How would you describe the investment backdrop during the 12 months ended October 31, 2020?
The most notable part of this period was in the first quarter of 2020, when the threat of coronavirus escalated and concerns around health, safety, and the potential economic impact drove macro markets and ultimately culminated in a severe shift in risk appetite and an equity reversal that was unparalleled since the global financial crisis. These extreme market moves happened at a frenetic pace, and the rush to liquidity exacerbated the already unprecedented market volatility.
Equities were at the forefront of market volatility amidst panic over the short- and long-term implications of the coronavirus (COVID-19) in the first quarter of 2020. The broad-based S&P 500 Index fell into a bear market with a more than 20% drop from peak in late February into early March in just 16 trading days. In comparison, during the 2008/2009 global financial crisis, it took nearly a year for equities to drop 20% from their peak.
Business closures and quarantine measures, coupled with general fear, triggered a major drop-off in economic activity and pushed investors to safety in bonds despite days in which bonds sold off sharply as liquidation took hold in markets. Currencies also experienced more volatility.
How did the fund perform in this environment?
The fund recorded a loss during the period, primarily due to performance during the first quarter of 2020. The type of short-term volatility that occurred during this time was difficult for intermediate- to long-term directional strategies, such as the one we employ for the fund. Despite heading into the crisis as a well-diversified portfolio—with a long equity position diversified by long U.S. dollar exposure, long bond positions, and short energy exposure—the speed and magnitude of the initial equity decline challenged the strategy. The unprecedented shock, including increased volatility in stocks and fixed income, coupled with traditional safe-haven assets, such as fixed income and gold, failing to provide enough protection led to losses for the strategy during the first quarter of 2020.
For the remainder of the period, the strategy recorded gains, recovering a material portion of its earlier losses as markets returned to more normal levels of volatility.
From a sector perspective, the strategy experienced losses primarily from long positions in global equity indexes, notably European benchmark indexes and, to a
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 4 |
Table of Contents
|
lesser extent, U.S. and Asian benchmark indexes. The strategy experienced modest losses in currencies, including positions in the British pound sterling, Canadian dollar, and the New Zealand dollar versus the U.S. dollar.
The strategy recorded profits in commodities, primarily from positions in energy and metals. In fixed income, the strategy recorded gains on the long end of the yield curve in the United States with smaller gains in U.S. short rates. |
MANAGED BY
Kenneth G. Tropin
Pablo E. Calderini
| |
The views expressed in this report are exclusively those of Graham Capital Management, L.P., and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
5 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020 | ||||||||||||
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | |||||||||||
1-year | Since inception (7-29-19) | Since inception (7-29-19) | ||||||||||
Class A | -10.24 | -6.62 | -8.28 | |||||||||
Class C | -7.12 | -3.46 | -4.34 | |||||||||
Class I1 | -5.18 | -2.39 | -3.00 | |||||||||
Class R61 | -5.09 | -2.31 | -2.90 | |||||||||
Class NAV1 | -5.09 | -2.31 | -2.90 | |||||||||
Index† | 0.80 | 1.07 | 1.35 |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Consolidated financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until February 28, 2021 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R6 | Class NAV | ||||||||
Gross (%) | 1.76 | 2.51 | 1.51 | 1.40 | 1.39 | |||||||
Net (%) | 1.70 | 2.45 | 1.45 | 1.34 | 1.33 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the ICE Bank of America 0-3 Month U.S. Treasury Bill Index. |
See the following page for footnotes.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 6 |
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Diversified Macro Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the ICE Bank of America 0-3 Month U.S. Treasury Bill Index
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||||
Class C2 | 7-29-19 | 9,566 | 9,566 | 10,135 | ||||||||||||
Class I1 | 7-29-19 | 9,700 | 9,700 | 10,135 | ||||||||||||
Class R61 | 7-29-19 | 9,710 | 9,710 | 10,135 | ||||||||||||
Class NAV1 | 7-29-19 | 9,710 | 9,710 | 10,135 |
The ICE Bank of America 0–3 Month U.S. Treasury Bill Index tracks the performance of U.S. dollar-denominated U.S. Treasury bills publicly issued in the U.S. domestic market with a remaining term to final maturity of less than three months.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | For certain types of investors, as described in the fund’s prospectuses. |
2 | The contingent deferred sales charge is not applicable. |
7 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 8 |
Table of Contents
|
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 5-1-2020 | Ending value on 10-31-2020 | Expenses paid during period ended 10-31-20201 | Annualized expense ratio | |||||||||||||||
Class A | Actual expenses/actual returns | $1,000.00 | $1,032.20 | $ 8.74 | 1.71% | |||||||||||||
Hypothetical example | 1,000.00 | 1,016.50 | 8.67 | 1.71% | ||||||||||||||
Class C | Actual expenses/actual returns | 1,000.00 | 1,029.00 | 12.55 | 2.46% | |||||||||||||
Hypothetical example | 1,000.00 | 1,012.80 | 12.45 | 2.46% | ||||||||||||||
Class I | Actual expenses/actual returns | 1,000.00 | 1,034.30 | 7.41 | 1.45% | |||||||||||||
Hypothetical example | 1,000.00 | 1,017.80 | 7.35 | 1.45% | ||||||||||||||
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,034.30 | 6.90 | 1.35% | |||||||||||||
Hypothetical example | 1,000.00 | 1,018.30 | 6.85 | 1.35% | ||||||||||||||
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,035.40 | 6.80 | 1.33% | |||||||||||||
Hypothetical example | 1,000.00 | 1,018.50 | 6.75 | 1.33% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
9 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
Consolidated Fund’s investments
|
AS OF 10-31-20
Par value^ | Value | |||||||
Short-term investments 40.9% | $101,000,000 | |||||||
(Cost $101,000,000) | ||||||||
Repurchase agreement 40.9% | 101,000,000 | |||||||
Nomura Securities International, Inc. Tri-Party Repurchase Agreement | 101,000,000 | 101,000,000 | ||||||
Total investments (Cost $101,000,000) 40.9%
|
|
$101,000,000
|
| |||||
Other assets and liabilities, net 59.1%
|
|
|
145,805,018
|
| ||||
Total net assets 100.0%
|
|
$246,805,018
|
|
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
^All par values are denominated in U.S. dollars unless otherwise indicated.
Security Abbreviations and Legend
STRIPS | Separate Trading of Registered Interest and Principal Securities |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 10 |
Table of Contents
|
DERIVATIVES
FUTURES
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) | ||||||||||||
10-Year Japan Government Bond Futures | 25 | Long | Dec 2020 | $36,314,509 | $36,243,374 | $(71,135 | ) | |||||||||||
2-Year U.S. Treasury Note Futures | 261 | Long | Jan 2021 | 57,656,667 | 57,638,180 | (18,487 | ) | |||||||||||
30-Year U.S. Treasury Bond Futures | 59 | Long | Dec 2020 | 10,256,781 | 10,149,844 | (106,937 | ) | |||||||||||
90-Day Pound Sterling Futures | 821 | Long | Dec 2021 | 132,879,320 | 132,977,750 | 98,430 | ||||||||||||
Australian 10-Year Bond Futures | 271 | Long | Dec 2020 | 28,213,130 | 28,434,100 | 220,970 | ||||||||||||
CAC40 Index Futures | 123 | Long | Nov 2020 | 7,059,919 | 6,592,432 | (467,487 | ) | |||||||||||
Canadian 10-Year Bond Futures | 89 | Long | Dec 2020 | 10,118,340 | 10,077,047 | (41,293 | ) | |||||||||||
Dow Jones Industrial Average Index E-Mini Futures | 92 | Long | Dec 2020 | 12,763,933 | 12,142,160 | (621,773 | ) | |||||||||||
Electrolytic Copper Futures | 36 | Long | Dec 2020 | 5,802,367 | 6,043,275 | 240,908 | ||||||||||||
Electrolytic Copper Futures | 17 | Long | Mar 2021 | 2,857,773 | 2,857,700 | (73 | ) | |||||||||||
Euro-Bund Futures | 145 | Long | Dec 2020 | 29,400,083 | 29,743,720 | 343,637 | ||||||||||||
Euro-EURIBOR Interest Rate Futures | 483 | Long | Dec 2021 | 141,300,843 | 141,446,665 | 145,822 | ||||||||||||
Euro-Schatz Futures | 402 | Long | Dec 2020 | 52,576,433 | 52,657,070 | 80,637 | ||||||||||||
German Stock Index Futures | 54 | Long | Dec 2020 | 19,863,476 | 18,195,119 | (1,668,357 | ) | |||||||||||
Gold 100 Oz Futures | 16 | Long | Dec 2020 | 3,019,638 | 3,003,680 | (15,958 | ) | |||||||||||
Hang Seng Index Futures | 41 | Long | Nov 2020 | 6,528,557 | 6,417,410 | (111,147 | ) | |||||||||||
Long Gilt Futures | 41 | Long | Dec 2020 | 7,196,536 | 7,201,425 | 4,889 | ||||||||||||
NASDAQ 100 Index E-Mini Futures | 74 | Long | Dec 2020 | 16,707,034 | 16,361,770 | (345,264 | ) | |||||||||||
Nikkei 225 Index Futures | 74 | Long | Dec 2020 | 16,459,254 | 16,355,700 | (103,554 | ) | |||||||||||
Russell 2000 Index Mini Futures | 235 | Long | Dec 2020 | 17,972,367 | 18,066,800 | 94,433 | ||||||||||||
S&P 500 E-Mini Index Futures | 143 | Long | Dec 2020 | 24,026,773 | 23,346,538 | (680,235 | ) | |||||||||||
SGX Japanese Government Bond Futures | 9 | Long | Dec 2020 | 1,305,750 | 1,305,105 | (645 | ) | |||||||||||
Silver Futures | 82 | Long | Dec 2020 | 10,265,041 | 9,717,000 | (548,041 | ) | |||||||||||
Soybean Futures | 102 | Long | Mar 2021 | 5,302,174 | 5,343,525 | 41,351 | ||||||||||||
Soybean Meal Futures | 49 | Long | Dec 2020 | 1,859,448 | 1,857,100 | (2,348 | ) | |||||||||||
Tokyo Price Index Futures | 123 | Long | Dec 2020 | 19,113,269 | 18,732,843 | (380,426 | ) | |||||||||||
U.S. Dollar Index Futures | 48 | Long | Dec 2020 | 4,467,054 | 4,514,160 | 47,106 | ||||||||||||
Wheat Futures | 87 | Long | Dec 2020 | 2,570,916 | 2,603,475 | 32,559 | ||||||||||||
Zinc Futures | 38 | Long | Dec 2020 | 2,428,996 | 2,391,625 | (37,371 | ) | |||||||||||
10-Year U.S. Treasury Note Futures | 440 | Short | Dec 2020 | (61,276,967 | ) | (60,775,000 | ) | 501,967 | ||||||||||
5-Year U.S. Treasury Note Futures | 969 | Short | Jan 2021 | (122,003,108 | ) | (121,692,773 | ) | 310,335 | ||||||||||
90-Day Eurodollar Futures | 227 | Short | Dec 2021 | (56,631,348 | ) | (56,616,638 | ) | 14,710 | ||||||||||
Brent Crude Futures | 246 | Short | Dec 2020 | (10,567,306 | ) | (9,298,800 | ) | 1,268,506 | ||||||||||
Cocoa Futures | 26 | Short | Dec 2020 | (580,594 | ) | (539,267 | ) | 41,327 | ||||||||||
Coffee ’C’ Futures | 43 | Short | Mar 2021 | (1,726,154 | ) | (1,720,538 | ) | 5,616 | ||||||||||
Corn Futures | 200 | Short | Dec 2020 | (3,440,698 | ) | (3,975,000 | ) | (534,302 | ) | |||||||||
Cotton No. 2 Futures | 38 | Short | Mar 2021 | (1,340,734 | ) | (1,325,440 | ) | 15,294 | ||||||||||
Euro STOXX 50 Index Futures | 25 | Short | Dec 2020 | (877,837 | ) | (861,547 | ) | 16,290 | ||||||||||
Euro-BOBL Futures | 263 | Short | Dec 2020 | (41,390,278 | ) | (41,620,302 | ) | (230,024 | ) |
11 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
FUTURES (continued)
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) | ||||||||||||||||||
FTSE 100 Index Futures | 222 | Short | Dec 2020 | (17,011,241 | ) | (15,999,300 | ) | $1,011,941 | ||||||||||||||||
Gas Oil Futures | 145 | Short | Dec 2020 | (4,998,081 | ) | (4,451,500 | ) | 546,581 | ||||||||||||||||
Gasoline RBOB Futures | 118 | Short | Dec 2020 | (5,554,845 | ) | (5,098,733 | ) | 456,112 | ||||||||||||||||
Hard Red Winter Wheat Futures | 79 | Short | Dec 2020 | (1,713,689 | ) | (2,138,925 | ) | (425,236 | ) | |||||||||||||||
Natural Gas Futures | 117 | Short | Nov 2020 | (3,763,257 | ) | (3,935,880 | ) | (172,623 | ) | |||||||||||||||
NY Harbor ULSD Futures | 145 | Short | Dec 2020 | (7,204,292 | ) | (6,574,155 | ) | 630,137 | ||||||||||||||||
Primary Aluminum Futures | 64 | Short | Mar 2021 | (2,946,561 | ) | (2,962,400 | ) | (15,839 | ) | |||||||||||||||
Soybean Oil Futures | 43 | Short | Dec 2020 | (764,617 | ) | (869,202 | ) | (104,585 | ) | |||||||||||||||
Sugar No. 11 (World) Futures | 10 | Short | Mar 2021 | (155,633 | ) | (161,504 | ) | (5,871 | ) | |||||||||||||||
WTI Crude Futures | 246 | Short | Nov 2020 | (9,876,699 | ) | (8,769,900 | ) | 1,106,799 | ||||||||||||||||
$567,346 |
^ Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.
FORWARD FOREIGN CURRENCY CONTRACTS
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | |||||||||
AUD | 33,128,000 | USD | 24,054,614 | BOA | 12/18/2020 | — | $(763,090) | |||||||
CAD | 43,231,000 | USD | 32,767,526 | BOA | 12/18/2020 | — | (311,454) | |||||||
CHF | 26,095,000 | USD | 28,609,073 | BOA | 12/18/2020 | — | (109,716) | |||||||
EUR | 35,785,000 | USD | 42,373,867 | BOA | 12/18/2020 | — | (650,352) | |||||||
GBP | 4,772,000 | USD | 6,174,822 | BOA | 12/18/2020 | $9,529 | — | |||||||
JPY | 9,263,378,000 | USD | 87,682,328 | BOA | 12/18/2020 | 855,696 | — | |||||||
MXN | 214,558,000 | USD | 9,840,900 | BOA | 12/18/2020 | 222,825 | — | |||||||
NZD | 22,160,000 | USD | 14,802,470 | BOA | 12/18/2020 | — | (149,729) | |||||||
USD | 58,613,430 | AUD | 82,397,000 | BOA | 12/18/2020 | 682,021 | — | |||||||
USD | 6,460,014 | CAD | 8,581,000 | BOA | 12/18/2020 | 17,749 | — | |||||||
USD | 18,242,489 | CHF | 16,795,000 | BOA | 12/18/2020 | — | (99,979) | |||||||
USD | 109,241,124 | EUR | 92,906,000 | BOA | 12/18/2020 | 917,387 | — | |||||||
USD | 13,966,683 | GBP | 10,834,000 | BOA | 12/18/2020 | — | (73,817) | |||||||
USD | 14,860,226 | JPY | 1,565,114,000 | BOA | 12/18/2020 | — | (98,907) | |||||||
USD | 417,948 | MXN | 9,272,000 | BOA | 12/18/2020 | — | (16,950) | |||||||
USD | 9,524,076 | NZD | 14,447,000 | BOA | 12/18/2020 | — | (28,638) | |||||||
$2,705,207 | $(2,302,632) |
Derivatives Currency Abbreviations | ||
AUD | Australian Dollar | |
CAD | Canadian Dollar | |
CHF | Swiss Franc | |
EUR | Euro | |
GBP | Pound Sterling | |
JPY | Japanese Yen | |
MXN | Mexican Peso |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 12 |
Table of Contents
|
NZD | New Zealand Dollar | |
USD | U.S. Dollar | |
Derivatives Abbreviations | ||
BOA | Bank of America, N.A. | |
EURIBOR | Euro Interbank Offered Rate | |
OTC | Over-the-counter | |
RBOB | Reformulated Blendstock for Oxygenate Blending | |
WTI | West Texas Intermediate |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $102,721,708. Net unrealized depreciation aggregated to $751,787, of which $969,921 related to gross unrealized appreciation and $1,721,708 related to gross unrealized depreciation.
See Notes to Consolidated financial statements regarding investment transactions and other derivatives information.
13 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
Consolidated financial statements
|
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES 10-31-20
Assets | ||||
Repurchase agreements, at value (Cost $101,000,000) | $101,000,000 | |||
Unrealized appreciation on forward foreign currency contracts | 2,705,207 | |||
Cash | 121,113,840 | |||
Foreign currency, at value (Cost $156,919) | 152,476 | |||
Collateral held at broker for futures contracts | 24,921,116 | |||
Collateral segregated at custodian for OTC derivative contracts | 1,940,000 | |||
Interest receivable | 12,781 | |||
Receivable for fund shares sold | 472,232 | |||
Receivable from affiliates | 482 | |||
Other assets | 57,883 | |||
Total assets | 252,376,017 | |||
Liabilities | ||||
Unrealized depreciation on forward foreign currency contracts | 2,302,632 | |||
Payable for futures variation margin | 2,139,321 | |||
Payable for fund shares repurchased | 1,001,163 | |||
Payable to affiliates | ||||
Accounting and legal services fees | 9,210 | |||
Transfer agent fees | 2,576 | |||
Trustees’ fees | 64 | |||
Other liabilities and accrued expenses | 116,033 | |||
Total liabilities | 5,570,999 | |||
Net assets | $246,805,018 | |||
Net assets consist of | ||||
Paid-in capital | $258,831,613 | |||
Total distributable earnings (loss) | (12,026,595 | ) | ||
Net assets | $246,805,018 | |||
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class A ($70,575 ÷ 7,579 shares)1 | $9.31 | |||
Class C ($53,649 ÷ 5,816 shares)1 | $9.22 | |||
Class I ($22,717,334 ÷ 2,430,671 shares) | $9.35 | |||
Class R6 ($29,418,795 ÷ 3,143,348 shares) | $9.36 | |||
Class NAV ($194,544,665 ÷ 20,791,427 shares) | $9.36 | |||
Maximum offering price per share | ||||
Class A (net asset value per share ÷ 95%)2 | $9.80 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 14 |
Table of Contents
|
CONSOLIDATED STATEMENT OF OPERATIONS For the year ended 10-31-20
Investment income | ||||
Interest | $1,222,759 | |||
Expenses | ||||
Investment management fees | 2,760,017 | |||
Distribution and service fees | 719 | |||
Accounting and legal services fees | 46,184 | |||
Transfer agent fees | 26,988 | |||
Trustees’ fees | 3,578 | |||
Custodian fees | 57,337 | |||
State registration fees | 95,411 | |||
Printing and postage | 21,857 | |||
Professional fees | 339,009 | |||
Other | 43,801 | |||
Total expenses | 3,394,901 | |||
Less expense reductions | (301,252 | ) | ||
Net expenses | 3,093,649 | |||
Net investment loss | (1,870,890 | ) | ||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | (31,695 | ) | ||
Futures contracts | (4,976,504 | ) | ||
Forward foreign currency contracts | (6,843,641 | ) | ||
(11,851,840 | ) | |||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 11,178 | |||
Futures contracts | (2,901,974 | ) | ||
Forward foreign currency contracts | 2,321,222 | |||
(569,574 | ) | |||
Net realized and unrealized loss | (12,421,414 | ) | ||
Decrease in net assets from operations | $(14,292,304 | ) |
15 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Year ended | Period ended | |||||||
10-31-20 | 10-31-191 | |||||||
Increase (decrease) in net assets | ||||||||
From operations | ||||||||
Net investment income (loss) | $(1,870,890 | ) | $328,359 | |||||
Net realized gain (loss) | (11,851,840 | ) | 3,185,340 | |||||
Change in net unrealized appreciation (depreciation) | (569,574 | ) | 1,548,879 | |||||
Increase (decrease) in net assets resulting from operations | (14,292,304 | ) | 5,062,578 | |||||
Distributions to shareholders | ||||||||
From earnings | ||||||||
Class A | (2,477 | ) | — | |||||
Class C | (1,853 | ) | — | |||||
Class I | (135,553 | ) | — | |||||
Class R6 | (1,853 | ) | — | |||||
Class NAV | (7,675,564 | ) | — | |||||
Total distributions | (7,817,300 | ) | — | |||||
From fund share transactions | 54,188,224 | 209,663,820 | ||||||
Total increase | 32,078,620 | 214,726,398 | ||||||
Net assets | ||||||||
Beginning of year | 214,726,398 | — | ||||||
End of year | $246,805,018 | $214,726,398 |
1 | Period from 7-29-19 (commencement of operations) to 10-31-19. |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 16 |
Table of Contents
|
CONSOLIDATED FINANCIAL HIGHLIGHTS
CLASS A SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.22 | $10.00 | ||||||
Net investment income (loss)2 | (0.12 | ) | 0.01 | |||||
Net realized and unrealized gain (loss) on investments | (0.42 | ) | 0.21 | |||||
Total from investment operations | (0.54 | ) | 0.22 | |||||
Less distributions | ||||||||
From net realized gain | (0.37 | ) | — | |||||
Net asset value, end of period | $9.31 | $10.22 | ||||||
Total return (%)3,4 | (5.49 | ) | 2.20 | 5 | ||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $— | 6 | $— | 6 | ||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 1.84 | 1.84 | 7 | |||||
Expenses including reductions | 1.71 | 1.70 | 7 | |||||
Net investment income (loss) | (1.29 | ) | 0.23 | 7 | ||||
Portfolio turnover (%) | 0 | 8 | 0 | 8 |
1 | Period from 7-29-19 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
8 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
17 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
CLASS C SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.20 | $10.00 | ||||||
Net investment loss2 | (0.18 | ) | (0.01 | ) | ||||
Net realized and unrealized gain (loss) on investments | (0.43 | ) | 0.21 | |||||
Total from investment operations | (0.61 | ) | 0.20 | |||||
Less distributions | ||||||||
From net realized gain | (0.37 | ) | — | |||||
Net asset value, end of period | $9.22 | $10.20 | ||||||
Total return (%)3,4 | (6.22 | ) | 2.00 | 5 | ||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $— | 6 | $— | 6 | ||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 2.59 | 2.59 | 7 | |||||
Expenses including reductions | 2.46 | 2.45 | 7 | |||||
Net investment loss | (1.93 | ) | (0.52 | )7 | ||||
Portfolio turnover (%) | 0 | 8 | 0 | 8 |
1 | Period from 7-29-19 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
8 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 18 |
Table of Contents
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued) | ||||||||
CLASS I SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.23 | $10.00 | ||||||
Net investment income (loss)2 | (0.10 | ) | 0.01 | |||||
Net realized and unrealized gain (loss) on investments | (0.41 | ) | 0.22 | |||||
Total from investment operations | (0.51 | ) | 0.23 | |||||
Less distributions | ||||||||
From net realized gain | (0.37 | ) | — | |||||
Net asset value, end of period | $9.35 | $10.23 | ||||||
Total return (%)3 | (5.18 | ) | 2.30 | 4 | ||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $23 | $2 | ||||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 1.59 | 1.59 | 5 | |||||
Expenses including reductions | 1.46 | 1.45 | 5 | |||||
Net investment income (loss) | (1.09 | ) | 0.30 | 5 | ||||
Portfolio turnover (%) | 0 | 6 | 0 | 6 |
1 | Period from 7-29-19 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
6 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
19 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued) | ||||||||
CLASS R6 SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.23 | $10.00 | ||||||
Net investment income (loss)2 | (0.10 | ) | 0.02 | |||||
Net realized and unrealized gain (loss) on investments | (0.40 | ) | 0.21 | |||||
Total from investment operations | (0.50 | ) | 0.23 | |||||
Less distributions | ||||||||
From net realized gain | (0.37 | ) | — | |||||
Net asset value, end of period | $9.36 | $10.23 | ||||||
Total return (%)3 | (5.09 | ) | 2.30 | 4 | ||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $29 | $— | 5 | |||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 1.48 | 1.48 | 6 | |||||
Expenses including reductions | 1.34 | 1.34 | 6 | |||||
Net investment income (loss) | (1.09 | ) | 0.59 | 6 | ||||
Portfolio turnover (%) | 0 | 7 | 0 | 7 |
1 | Period from 7-29-19 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Less than $500,000. |
6 | Annualized. |
7 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 20 |
Table of Contents
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued) | ||||||||
CLASS NAV SHARES Period ended | 10-31-20 | 10-31-191 | ||||||
Per share operating performance | ||||||||
Net asset value, beginning of period | $10.23 | $10.00 | ||||||
Net investment income (loss)2 | (0.07 | ) | 0.02 | |||||
Net realized and unrealized gain (loss) on investments | (0.43 | ) | 0.21 | |||||
Total from investment operations | (0.50 | ) | 0.23 | |||||
Less distributions | ||||||||
From net realized gain | (0.37 | ) | — | |||||
Net asset value, end of period | $9.36 | $10.23 | ||||||
Total return (%)3 | (5.09 | ) | 2.30 | 4 | ||||
Ratios and supplemental data | ||||||||
Net assets, end of period (in millions) | $195 | $213 | ||||||
Ratios (as a percentage of average net assets): | ||||||||
Expenses before reductions | 1.46 | 1.47 | 5 | |||||
Expenses including reductions | 1.33 | 1.33 | 5 | |||||
Net investment income (loss) | (0.76 | ) | 0.60 | 5 | ||||
Portfolio turnover (%) | 0 | 6 | 0 | 6 |
1 | Period from 7-29-19 (commencement of operations) to 10-31-19. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
6 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
21 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
Notes to consolidated financial statements
|
Note 1 — Organization
John Hancock Diversified Macro Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Consolidated statement of assets and liabilities. Class A and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Class C shares convert to Class A shares ten years after purchase (certain exclusions may apply). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Effective November 1, 2020, Class C shares convert to Class A shares eight years after purchase (certain exclusions may apply).
Basis of consolidation. The accompanying consolidated financial statements include the accounts of John Hancock Diversified Macro Offshore Subsidiary Fund, Ltd. (the subsidiary), a Cayman Islands exempted company which was incorporated on January 4, 2019, a wholly-owned subsidiary of the fund. The fund and its subsidiary are advised by Graham Capital Management, L.P., (the subadvisor), under the supervision of John Hancock Investment Management LLC (the Advisor). The fund may gain exposure to the commodities markets by investing up to 25% of its total assets in the subsidiary. The subsidiary acts as an investment vehicle for the fund to enable the fund to obtain its commodity exposure by investing in commodity-linked derivative instruments. As of October 31, 2020, the net assets of the subsidiary were $27,014,928 representing 10.9% of the fund’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated. The Consolidated Fund’s investments includes positions of the fund and the subsidiary.
The subsidiary primarily obtains its commodity exposure by investing in commodity-linked derivative instruments, which may include but are not limited to total return swaps, commodity (U.S. or foreign) futures and commodity-linked notes. Neither the fund nor the subsidiary intends to invest directly in physical commodities. The subsidiary may also invest in other instruments, including fixed-income securities, either as investments or to serve as margin or collateral for its swap positions, and foreign currency transactions (including forward contracts).
Note 2 — Significant accounting policies
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the consolidated financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the consolidated financial statements were issued have been evaluated in the preparation of the consolidated financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 22 |
Table of Contents
|
In order to value the securities, the fund uses the following valuation techniques: Debt obligations are typically valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Futures contracts are typically valued at the last traded price on the exchange on which they trade. Forward foreign currency contracts are valued at the prevailing forward rates which are based on foreign currency exchange spot rates and forward points supplied by an independent pricing vendor. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the Consolidated Fund’s investments as of October 31, 2020, by major security category or type:
| Total value at 10-31-20 |
| | Level 1 quoted price |
| | Level 2 significant observable inputs | | | Level 3 significant unobservable inputs | | |||||
Investments in securities: | ||||||||||||||||
Assets | ||||||||||||||||
Short-term investments | $101,000,000 | — | $101,000,000 | — | ||||||||||||
Total investments in securities | $101,000,000 | — | $101,000,000 | — | ||||||||||||
Derivatives: | ||||||||||||||||
Assets | ||||||||||||||||
Futures | $7,276,357 | $7,276,357 | — | — | ||||||||||||
Forward foreign currency contracts | 2,705,207 | — | $2,705,207 | — | ||||||||||||
Liabilities | ||||||||||||||||
Futures | (6,709,011 | ) | (6,597,864 | ) | (111,147 | ) | — | |||||||||
Forward foreign currency contracts | (2,302,632 | ) | — | (2,302,632 | ) | — |
23 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
Repurchase agreements. The fund and its subsidiary may enter into repurchase agreements. When the fund or subsidiary enter into a repurchase agreement, it receives collateral that is held in a segregated account by the fund or subsidiary’s custodian, or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund or subsidiary. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Consolidated Fund’s investments as part of the caption related to the repurchase agreement.
Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset in the Consolidated statement of assets and liabilities. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay claims resulting from close-out of the transactions.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Consolidated statement of operations. For the year ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the year ended October 31, 2020 were $3,575.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 24 |
Table of Contents
|
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2020, the fund has a short-term capital loss carryforward of $8,908,559 and a long-term capital loss carryforward of $8,003,660 available to offset future net realized capital gains. This carryforward does not expire.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the year ended October 31, 2020 and for the period ended October 31, 2019 was as follows:
October 31, 2020 | October 31, 2019 | |||||||
Ordinary income | $2,774,074 | — | ||||||
Long-term capital gains | 5,043,226 | — | ||||||
Total | $7,817,300 | — |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, the components of distributable earnings on a tax basis consisted of $5,638,875 of undistributed ordinary income.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s consolidated financial statements as a return of capital.
Capital accounts within the consolidated financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to controlled foreign corporation, foreign currency transactions and derivative transactions.
Net income and realized gains from investments held by the subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the subsidiary in any taxable year, the loss will generally not be available to offset the fund’s ordinary income and/or capital gains for that year.
25 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
Note 3—Derivative instruments
The fund or its subsidiary may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Derivatives which are typically traded through the OTC market are regulated by the Commodity Futures Trading Commission (the CFTC). Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has the right to close out all transactions and to net amounts owed.
As defined by the ISDA, the fund or its subsidiary may have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund, if any, is held in a segregated account by a third-party agent or held by the custodian bank for the benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund, if any, for OTC transactions is held in a segregated account at the fund’s custodian and is noted in the accompanying Consolidated Fund’s investments, or if cash is posted, on the Consolidated statement of assets and liabilities. The fund’s risk of loss due to counterparty risk is equal to the asset value of outstanding contracts offset by collateral received.
Certain derivatives are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.
Futures. A futures contract is a contractual agreement to buy or sell a particular commodity, currency or financial instrument at a pre-determined price in the future. Futures are traded on an exchange and cleared through a central clearinghouse. Risks related to the use of futures contracts include possible illiquidity of the futures markets and contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument and potential losses in excess of the amounts recognized on the Consolidated statement of assets and liabilities. Use of long futures contracts subjects the fund to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the fund to unlimited risk of loss.
Upon entering into a futures contract, the fund or the subsidiary is required to deposit initial margin with the broker in the form of cash or securities. The amount of required margin is set by the broker and is generally based on a percentage of the contract value. The margin deposit must then be maintained at the established level over the life of the contract. Cash that has been pledged by the fund or the subsidiary is detailed in the Consolidated statement of assets and liabilities as Collateral held at broker for futures contracts. Securities pledged by the fund, if any, are identified in the Consolidated Fund’s investments. Subsequent payments, referred to as variation margin, are made or received by the fund periodically and are based on changes in the market value of open futures contracts. Futures contracts are marked-to-market daily and unrealized gain or loss is recorded by the fund.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 26 |
Table of Contents
|
Payable for futures variation margin is included on the Consolidated statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
During the year ended October 31, 2020, the fund or the subsidiary used futures contracts to implement its investment strategy. The fund and its subsidiary held futures contracts with USD notional values ranging from $0.9 billion to $1.2 billion, as measured at each quarter end.
Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls for delivery of the currencies on a future date that is specified in the contract. Forwards are typically traded OTC. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral if applicable, and the risk that currency movements will not favor the fund thereby reducing the fund’s total return, and the potential for losses in excess of the amounts recognized on the Consolidated statement of assets and liabilities.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency or settlement with the counterparty.
During the year ended October 31, 2020, the fund used forward foreign currency contracts to implement its investment strategy. The fund held forward foreign currency contracts with USD notional values ranging from $351.4 million to $507.6 million, as measured at each quarter end.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the fund and its subsidiary at October 31, 2020 by risk category:
Risk | Consolidated statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value | ||||||||
Interest rate | Receivable/payable for futures variation margin | Futures1 | $1,721,397 | $ | (468,521) | |||||||
Currency | Receivable/payable for futures variation margin | Futures1 | 47,106 | — | ||||||||
Commodity | Receivable/payable for futures variation margin | Futures1 | 4,385,190 | (1,862,247 | ) | |||||||
Equity | Receivable/payable for futures variation margin | Futures1 | 1,122,664 | (4,378,243 | ) | |||||||
Currency | Unrealized appreciation / depreciation on forward foreign currency contracts | Forward foreign currency contracts | 2,705,207 | (2,302,632 | ) | |||||||
$9,981,564 | $ | (9,011,643) |
1 | Reflects cumulative appreciation/depreciation on futures as disclosed in Consolidated Fund’s investments. Only the year end variation margin is separately disclosed on the Consolidated statement of assets and liabilities. |
For financial reporting purposes, the fund and its subsidiary do not offset OTC derivative assets or liabilities that are subject to master netting arrangements, as defined by the ISDAs, in the Consolidated statement of assets and liabilities. In the event of default by the counterparty or a termination of the agreement, the ISDA allows an offset of amounts across the various transactions between the fund and the applicable counterparty. The tables below reflect the fund’s exposure to OTC derivative transactions and exposure to counterparties subject to an ISDA:
27 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
OTC Financial Instruments | Asset | Liability | ||||||
Forward foreign currency contracts | $2,705,207 | $(2,302,632) | ||||||
Totals | $2,705,207 | $(2,302,632) |
Counterparty | Total Market Value of OTC Derivatives | Collateral Posted by Counterparty 1 | Collateral Posted by | Net Exposure | ||||||||||||
Bank of America, N.A. | $402,575 | — | — | $402,575 |
1Reflects collateral posted by the counterparty or posted by the fund, excluding any excess collateral amounts.
Effect of derivative instruments on the Consolidated statement of operations
The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended October 31, 2020:
Consolidated statement of operations location - Net realized gain (loss) on: | ||||||||||||
Risk | Futures contracts | Forward foreign currency contracts | Total | |||||||||
Interest rate | $5,801,929 | — | $5,801,929 | |||||||||
Currency | (233,983 | ) | $ | (6,843,641) | (7,077,624 | ) | ||||||
Commodity | 8,779,722 | — | 8,779,722 | |||||||||
Equity | (19,324,172 | ) | — | (19,324,172 | ) | |||||||
Total | $ | (4,976,504) | $ | (6,843,641) | $ | (11,820,145) |
The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the year ended October 31, 2020:
Consolidated statement of operations location - Change in net unrealized appreciation (depreciation) of: | ||||||||||||
Risk | Futures contracts | Forward foreign currency contracts | Total | |||||||||
Interest rate | $2,804,874 | — | $2,804,874 | |||||||||
Currency | 89,829 | $2,321,222 | 2,411,051 | |||||||||
Commodity | 3,108,943 | — | 3,108,943 | |||||||||
Equity | (8,905,620 | ) | — | (8,905,620 | ) | |||||||
Total | $ | (2,901,974) | $2,321,222 | $ | (580,752) |
Note 4 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5 — Fees and transactions with affiliates
The Advisor serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 28 |
Table of Contents
|
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 1.200% of the first $1 billion of the fund’s average daily net assets and (b) 1.150% of the fund’s average daily net assets in excess of $1 billion. The Advisor has a subadvisory agreement with the subadvisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor provides investment management and other services to the subsidiary. The Advisor does not receive separate compensation from the subsidiary for providing investment management or administrative services. However, the fund pays the Advisor based on the fund’s net assets, which include the assets of the subsidiary.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the year ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
The Advisor contractually agrees to reduce its management fee or, if necessary, make payment to the fund in an amount equal to the amount by which expenses of the fund and its subsidiary exceed 1.33% of average daily net assets of the fund. For purposes of this agreement, “expenses of the fund” means all fund expenses, excluding taxes; brokerage commissions; interest expense; litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund’s business; class-specific expenses; borrowing costs; prime brokerage fees; acquired fund fees and expenses paid indirectly; and short dividend expense. This agreement expires on February 28, 2021, unless renewed by mutual agreement of the fund and the advisor based upon a determination that this is appropriate under the circumstances at that time.
For the year ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class A | $126 | |||
Class C | 69 | |||
Class I | 28,592 |
Class | Expense reduction | |||
Class R6 | $16,978 | |||
Class NAV | 255,487 | |||
Total | $301,252 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the year ended October 31, 2020, were equivalent to a net annual effective rate of 1.07% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the year ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
29 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans for certain classes as detailed below pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund’s shares:
Class | Rule 12b-1 Fee | |||
Class A | 0.25 | % | ||
Class C | 1.00 | % |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $90 for the year ended October 31, 2020. Of this amount, $13 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $77 was paid as sales commissions to broker-dealers.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the year ended October 31, 2020, there were no CDSCs received by the Distributor for Class A and Class C shares.
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the year ended October 31, 2020 were as follows:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $201 | $100 | ||||||
Class C | 518 | 65 | ||||||
Class I | — | 24,999 | ||||||
Class R6 | — | 1,824 | ||||||
Total | $719 | $26,988 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 30 |
Table of Contents
|
Note 6 — Fund share transactions
Transactions in fund shares for the year ended October 31, 2020 and for the period ended October 31, 2019 were as follows:
Year Ended 10-31-20 | Period ended 10-31-191 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A shares | ||||||||||||||||
Sold | 11,358 | $105,287 | 5,330 | $53,352 | ||||||||||||
Distributions reinvested | 63 | 623 | — | — | ||||||||||||
Repurchased | (9,172 | ) | (85,184 | ) | — | — | ||||||||||
Net increase | 2,249 | $20,726 | 5,330 | $53,352 | ||||||||||||
Class C shares | ||||||||||||||||
Sold | 816 | $7,685 | 5,000 | $50,000 | ||||||||||||
Net increase | 816 | $7,685 | 5,000 | $50,000 | ||||||||||||
Class I shares | ||||||||||||||||
Sold | 3,287,305 | $31,965,858 | 178,142 | $1,814,500 | ||||||||||||
Distributions reinvested | 13,679 | 135,553 | — | — | ||||||||||||
Repurchased | (1,043,325 | ) | (9,476,220 | ) | (5,130 | ) | (52,214 | ) | ||||||||
Net increase | 2,257,659 | $22,625,191 | 173,012 | $1,762,286 | ||||||||||||
Class R6 shares | ||||||||||||||||
Sold | 3,482,862 | $33,233,641 | 5,000 | $50,000 | ||||||||||||
Repurchased | (344,514 | ) | (3,140,768 | ) | — | — | ||||||||||
Net increase | 3,138,348 | $30,092,873 | 5,000 | $50,000 | ||||||||||||
Class NAV shares | ||||||||||||||||
Sold | 2,704,228 | $24,971,639 | 22,445,196 | $224,465,959 | ||||||||||||
Distributions reinvested | 773,746 | 7,675,564 | — | — | ||||||||||||
Repurchased | (3,482,783 | ) | (31,205,454 | ) | (1,648,960 | ) | (16,717,777 | ) | ||||||||
Net increase | (4,809 | ) | $1,441,749 | 20,796,236 | $207,748,182 | |||||||||||
Total net increase | 5,394,263 | $54,188,224 | 20,984,578 | $209,663,820 |
1 | Period from 7-29-19 (commencement of operations) to 10-31-19. |
Affiliates of the fund owned 66%, 86% and 100% of shares of Class A, Class C and Class NAV, respectively, on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 7 — Purchase and sale of securities
There were no purchases and sales of securities, other than short-term investments, for the year ended October 31, 2020.
31 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2020, funds within the John Hancock group of funds complex held 78.9% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
Fund | Affiliated Concentration | |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 30.4% | |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 19.9% | |
John Hancock Funds II Alternative Asset Allocation | 14.8% | |
John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 13.7% |
Note 9 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 32 |
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Diversified Macro Fund
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated fund’s investments, of John Hancock Diversified Macro Fund and its subsidiary (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2020, the related consolidated statement of operations for the year ended October 31, 2020 and the consolidated statements of changes in net assets and the consolidated financial highlights for the year ended October 31, 2020 and for the period July 29, 2019 (commencement of operations) through October 31, 2019, including the related notes (collectively referred to as the ”consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, the results of its operations for the year ended October 31, 2020, and the changes in its net assets and the financial highlights for the year ended October 31, 2020 and for the period July 29, 2019 (commencement of operations) through October 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
33 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund paid $5,043,226 in long term capital gain dividends.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 34 |
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section1 describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Graham Capital Management, L.P. (the Subadvisor), for John Hancock Diversified Macro Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic2 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance, fee and expense information for a peer group of similar funds prepared by an independent third-party provider of fund data, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
1The fund invests in a wholly owned subsidiary of the fund organized as a company under the laws of the Cayman Islands, Diversified Macro Offshore Subsidiary Fund, Ltd. (the” Cayman Subsidiary”). The Cayman Subsidiary has separate, equivalent agreements with the Advisor and Subadvisor. Neither the Advisor or the Subadvisor is entitled to additional compensation under its separate agreements with the Cayman Subsidiary.
2On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the” Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
35 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 36 |
Table of Contents
|
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that while it found the data provided by the independent third-party generally useful it recognized its limitations, including in particular that the data may vary depending on the end date selected and the results of the performance comparisons may vary depending on the selection of the peer group. The Board noted that the fund outperformed its benchmark index for the period from July 31, 2019 through December 31, 2019. The Board also noted that the fund underperformed its peer group median for the period from July 31, 2019 through December 31, 2019. The Board took into account management’s discussion of the fund’s performance, including the favorable performance relative to the benchmark index for the period from July 31, 2019 through December 31, 2019. The Board also noted the fund’s relatively limited performance history. The Board concluded that the fund’s performance has generally been in line with or outperformed the historical performance of the fund’s benchmark index.
Fees and expenses. The Board reviewed comparative information prepared by an independent third-party provider of fund data, including, among other data, the fund’s contractual and net management fees (and subadvisory fees, to the extent available) and total expenses as compared to similarly situated investment companies deemed to be comparable to the fund in light of the nature, extent and quality of the management and advisory and subadvisory services provided by the Advisor and the Subadvisor. The Board considered the fund’s ranking within a smaller group of peer funds chosen by the independent third-party provider, as well as the fund’s ranking within a broader group of funds. In comparing the fund’s contractual and net management fees to those of comparable funds, the Board noted that such fees include both advisory and administrative costs. The Board noted that net management fees and net total expenses for the fund are higher than the peer group median.
37 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
The Board took into account management’s discussion of the fund’s expenses, including that the fund’s peer group recently changed and that the fund’s expenses compare more favorably to its new peer group. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted actions taken over the past several years to reduce the fund’s operating expenses. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 38 |
Table of Contents
|
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its
39 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. As noted above, the Board also considered the fund’s subadvisory fees as compared to similarly situated investment companies deemed to be comparable to the fund as included in the report prepared by the independent third-party provider of fund data, to the extent available. The Board noted that the limited size of the Lipper peer group was not sufficient for comparative purposes. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 40 |
Table of Contents
|
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of the fund’s benchmark index; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
41 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years
|
| Trustee of the Trust since
| 1
|
| Number of John Hancock funds overseen by Trustee
|
| ||
Hassell H. McClellan, Born: 1945 | 2012 | 196 |
Trustee and Chairperson of the Board
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 |
Trustee
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015 | 196 |
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 |
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 |
Trustee
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 |
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).
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 42 |
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years
|
| Trustee of the Trust since
| 1
|
| Number of John Hancock funds overseen by Trustee
|
| ||
Deborah C. Jackson, Born: 1952 | 2008 | 196 |
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946 | 2012 | 196 |
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994 | 196 |
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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 | 196 |
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
43 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years
|
| Trustee of the Trust since
| 1
|
| Number of John Hancock funds overseen by Trustee
|
| ||
Gregory A. Russo, Born: 1949 | 2009 | 196 | ||||||
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 Trust Principal occupation(s) and other directorships during past 5 years
|
| Trustee of the Trust since
| 1
|
| Number of John Hancock funds overseen by Trustee
|
| ||
Andrew G. Arnott, Born: 1971 | 2017 | 196 |
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 44 |
Table of Contents
|
Principal officers who are not Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years
|
| Officer of the Trust since
|
| |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007).
Salvatore Schiavone, Born: 1965 | 2010 |
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 | |||
Chief Legal Officer and Secretary |
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009).
Trevor Swanberg, Born: 1979 | 2020 | |||
Chief Compliance Officer |
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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).
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023. |
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291. |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
45 | JOHN HANCOCK DIVERSIFIED MACRO FUND | ANNUAL REPORT |
|
Table of Contents
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
James M. Oates*
Frances G. Rathke1,*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Graham Capital Management, L.P.
Portfolio Managers
Pablo E. Calderini
Kenneth G. Tropin
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
* | Member of the Audit Committee |
† | Non-Independent Trustee |
1 | Appointed as Independent Trustee effective as of September 15, 2020 |
2 | Effective July 31, 2020 |
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407 | ||||
| ANNUAL REPORT | JOHN HANCOCK DIVERSIFIED MACRO FUND | 46 |
Table of Contents
Protect yourself by using eDelivery |
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
◾ |
Added security: Password protection helps you safely retrieve documents online | |||
◾ |
Save time: Receive instant email notification once statements are available | |||
◾ |
Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling | jhinvestments.com/login |
SIGN UP FOR EDELIVERY TODAY!
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report
Table of Contents
Get your questions answered by using our shareholder resources
|
ONLINE
◾ |
Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |
◾ |
Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |
◾ |
Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |
◾ |
Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. |
BY PHONE
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00A.M. to 7:00P.M., and Friday, 8:00A.M. to 6:00P.M., Eastern time. We’re here to help!
Not part of the shareholder report |
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock Diversified Macro Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399314 | 473A 10/20 | |||
12/2020 |
Table of Contents
Table of Contents
Dear shareholders,
Despite heightened fears over the coronavirus (COVID-19), which sent markets tumbling in the first quarter of the calendar year, global financial markets delivered positive returns for the 12 months ended October 31, 2020. The governments of many nations worked to shore up their economies, equity markets began to rise, and credit spreads rebounded off their highs as liquidity concerns eased.
Of course, it would be a mistake to consider this market turnaround a trustworthy signal of assured or swift economic recovery. Economic growth has slowed as the ongoing spread of COVID-19 continues to create uncertainty among businesses and investors. Lockdowns and curfews in certain areas have been reinstated, affecting the level of unemployment and the pace of hiring. Consumer spending also remains far below prepandemic levels.
From an investment perspective, we continue to think that maintaining a focus on long-term objectives while pursuing a risk-aware strategy is a prudent way forward. Above all, we believe the counsel of a trusted financial professional continues to matter now more than ever. Periods of heightened uncertainty are precisely the time to review your financial goals and follow a plan that helps you make the most of what continues to be a challenging situation.
On behalf of everyone at John Hancock Investment Management, I’d like to take this opportunity to welcome new shareholders and thank existing shareholders for the continued trust you’ve placed in us.
Sincerely,
Andrew G. Arnott
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
This commentary reflects the CEO’s views as of this report’s period end and are subject to change at any time. Diversification does not guarantee investment returns and does not eliminate risk of loss. All investments entail risks, including the possible loss of principal. For more up-to-date information, you can visit our website at jhinvestments.com.
Table of Contents
|
John Hancock
Alternative Risk Premia Fund
Table of contents | ||||||
2 | Your fund at a glance | |||||
5 | Manager’s discussion of fund performance | |||||
7 | A look at performance | |||||
9 | ||||||
11 | ||||||
50 | ||||||
53 | ||||||
55 | ||||||
67 | ||||||
68 | ||||||
69 | Continuation of investment advisory and subadvisory agreements | |||||
75 | ||||||
79 |
|
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 1 |
Table of Contents
|
INVESTMENT OBJECTIVE
The fund seeks long-term positive absolute returns.
TOTAL RETURNS AS OF 10/31/2020 (%)
Cumulative Since inception
(12-18-19)
The ICE Bank of America 0–3 Month U.S. Treasury Bill Index tracks the performance of U.S. dollar-denominated U.S. Treasury bills publicly issued in the U.S. domestic market with a remaining term to final maturity of less than three months.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund’s objectives, risks, and strategy, see the fund’s prospectus.
2 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
PERFORMANCE HIGHLIGHTS OVER THE PERIOD
The financial markets experienced elevated volatility in the abbreviated reporting period | ||||
The emergence of COVID-19 sparked a large, broad-based sell-off across the spectrum of higher-risk assets in the first calendar quarter of 2020. | ||||
The fund underperformed its cash benchmark, the ICE Bank of America 03 Month U.S. Treasury Bill Index, by a wide margin | ||||
The portfolio’s positioning in the equity value factor strategy, together with its carry (or higher yields) strategies in equities, fixed income, and currencies, was the primary driver of the shortfall. | ||||
The bulk of the fund’s underperformance occurred in the first half of 2020 | ||||
The fund wasn’t positioned to capture either the sell-off of February and March 2020 or the subsequent recovery. |
PORTFOLIO COMPOSITION AS OF 10/31/2020 (% of net assets)
|
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 3 |
Table of Contents
|
SECTOR COMPOSITION AS OF 10/31/2020 (% of net assets)
|
A note about risks
The fund may be subject to various risks as described in the fund’s prospectus. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. For more information, please refer to the “Principal risks” section of the prospectus.
4 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
Manager’s discussion of fund performance
|
What was the nature of market conditions from the fund’s inception on December 18, 2019, through October 31, 2020?
Financial assets delivered mixed results in this timeframe, with solid gains for growth stocks and higher-quality bonds, but weaker performance for higher-risk debt, value style, and the U.S. dollar. The primary driver of returns was, of course, the emergence of COVID-19 in the first quarter of 2020. The pandemic, together with governments’ efforts to contain the virus by shutting down large segments of their economies, led to a sharp sell-off in riskier assets in February and March 2020. Conversely, safe havens—such as U.S. Treasuries and the U.S. dollar—rallied. These performance trends reversed in dramatic fashion in the second calendar quarter, with higher-risk categories recovering sharply and the U.S. dollar declining, but with Treasuries holding on to most of their prior gains. Market conditions subsequently calmed in the summer and autumn, as concerns about the U.S. elections and resurgent COVID-19 cases were largely offset by an improving growth outlook and continued support from world central banks.
Why did the fund underperform?
The first quarter of 2020 was a very unusual time—higher-risk investments experienced nearly perfect correlations in the falling market, and the subsequent quarter was equally unique in terms of the strength and breadth of the ensuing rebound. While we strive to manage an all-weather portfolio, there will also be
TOP 10 HOLDINGS | TOP 10 COUNTRIES | |||||||||||||||||||||||
AS OF 10/31/2020 (% of net assets) | AS OF 10/31/2020 (% of net assets) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Magellan Financial Group, Ltd. | 0.3 | United States | 6.5 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Steel Dynamics, Inc. | 0.2 | Japan | 2.2 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Kinnevik AB, B Shares | 0.2 | Canada | 1.2 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Host Hotels & Resorts, Inc. | 0.2 | Australia | 1.1 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Ralph Lauren Corp. | 0.2 | United Kingdom | 0.9 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
A. O. Smith Corp. | 0.2 | Sweden | 0.8 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Nexon Company, Ltd. | 0.2 | Ireland | 0.3 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Magna International, Inc. | 0.2 | Israel | 0.1 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Waters Corp. | 0.2 | Norway | 0.1 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
AerCap Holdings NV | 0.2 | Denmark | 0.1 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
TOTAL | 2.1 | TOTAL | 13.3 | |||||||||||||||||||||
Cash and cash equivalents are not included. | Cash and cash equivalents are not included. | |||||||||||||||||||||||
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 5 |
Table of Contents
|
times in which our strategy is out of step with the markets, and that was clearly the case in the first half of 2020.
What specific elements of the fund’s positioning helped and hurt absolute performance?
The fund invests in equities by balancing five factors: value, momentum, quality, size, | MANAGED BY
Jérôme Teiletche, Ph.D. Olivier Blin Joan Lee, CFA
| |
and low volatility. The value factor underperformed in the first calendar quarter and was a modest detractor thereafter. Value stocks, in general, lagged growth by a wide margin throughout the period as investors gravitated to companies seen as being in the best position to deliver sustained earnings amid slow economic conditions. The quality and low-volatility factors also played a role in the fund’s underperformance, primarily in the market rally that occurred from April onward; on the positive side, the momentum and size factors contributed. |
The second-quarter recovery occurred too quickly to be captured by our trend-following models, which were positioned very defensively in the wake of the March sell-off. The alternative income strategy, which incorporates seven substrategies, was an additional detractor. Here, we strive to maintain a net neutral overall exposure and capture relative performance across the financial markets. We emphasize carry, or higher yields, in bonds, equities, and currencies. This approach can translate to above-average risk exposure, which was a sizable headwind in the first quarter. The fund’s risk control overlay, which systematically takes hedge positions when portfolio beta (risk exposure) in equities and bonds moves outside set limits, added to performance during times of market weakness in the first quarter.
The views expressed in this report are exclusively those of Jérôme Teiletche, Ph.D., Unigestion, and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future.
6 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2020
Cumulative total returns (%) | ||||
with maximum sales charge | ||||
| Since inception (12-18-19) |
| ||
Class R61 | -16.77 | |||
Class NAV1 | -16.67 | |||
Index† | 0.59 |
Performance figures assume all distributions have been reinvested. Sales charges are not applicable to Class R6 and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Consolidated financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until July 31, 2022 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class R6 | Class NAV | |||||||||||
Gross (%) | 1.27 | 1.26 | ||||||||||
Net (%) | 1.26 | 1.25 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility and other factors, the fund’s current performance may be higher or lower than the performance shown. For current to the most recent month-end performance data, please call 800–225–5291 or visit the fund’s website at jhinvestments.com.
The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The fund’s performance results reflect any applicable fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the ICE Bank of America 0-3 Month US Treasury Bill Index. |
See the following page for footnotes.
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 7 |
Table of Contents
|
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Alternative Risk Premia Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we’ve shown the same investment in the ICE Bank of America 0-3 Month U.S. Treasury Bill Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |||||||||||||
Class NAV1 | 12-18-19 | 8,333 | 8,333 | 10,059 |
The ICE Bank of America 0–3 Month U.S. Treasury Bill Index tracks the performance of U.S. dollar-denominated U.S. Treasury bills publicly issued in the U.S. domestic market with a remaining term to final maturity of less than three months.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | For certain types of investors, as described in the fund’s prospectuses. |
8 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
Understanding fund expenses
As a shareholder of the fund, you incur two types of costs:
∎ | Transaction costs, which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc. |
∎ | Ongoing operating expenses, including management fees, distribution and service fees (if applicable), and other fund expenses. |
We are presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund’s actual ongoing operating expenses, and is based on the fund’s actual return. It assumes an account value of $1,000.00 on May 1, 2020, with the same investment held until October 31, 2020.
Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at October 31, 2020, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund’s ongoing operating expenses with those of any other fund. It provides an example of the fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the class’s actual return). It assumes an account value of $1,000.00 on May 1, 2020, with the same
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 9 |
Table of Contents
|
investment held until October 31, 2020. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
Account
|
Ending
|
Expenses
|
Annualized
| |||||||||||||||
Class R6 | Actual expenses/actual returns | $ | 1,000.00 | $ | 967.40 | $ | 7.37 | 1.49 | % | |||||||||
Hypothetical example | 1,000.00 | 1,017.60 | 7.56 | 1.49 | % | |||||||||||||
Class NAV | Actual expenses/actual returns | 1,000.00 | 968.60 | 7.32 | 1.48 | % | ||||||||||||
Hypothetical example | 1,000.00 | 1,017.70 | 7.51 | 1.48 | % |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). |
10 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
Consolidated Fund’s investments
|
AS OF 10-31-20 | ||||||||||||||
Shares | Value | |||||||||||||
Common stocks 13.5% | $16,799,981 | |||||||||||||
(Cost $15,310,019) | ||||||||||||||
Australia 1.1% | 1,399,597 | |||||||||||||
Ampol, Ltd. | 4,268 | 77,823 | ||||||||||||
Brambles, Ltd. | 23,892 | 161,135 | ||||||||||||
CSL, Ltd. | 684 | 138,481 | ||||||||||||
Fortescue Metals Group, Ltd. | 13,977 | 170,987 | ||||||||||||
Goodman Group | 12,172 | 157,544 | ||||||||||||
Magellan Financial Group, Ltd. | 8,422 | 326,424 | ||||||||||||
Medibank Pvt., Ltd. | 101,992 | 191,456 | ||||||||||||
Qantas Airways, Ltd. (A) | 33,551 | 98,705 | ||||||||||||
Woolworths Group, Ltd. | 2,864 | 77,042 | ||||||||||||
Canada 1.2% | 1,526,696 | |||||||||||||
B2Gold Corp. | 7,875 | 50,656 | ||||||||||||
Canadian Pacific Railway, Ltd. | 144 | 43,032 | ||||||||||||
Canadian Tire Corp., Ltd., Class A | 703 | 78,505 | ||||||||||||
Canopy Growth Corp. (A) | 2,343 | 44,018 | ||||||||||||
CI Financial Corp. | 6,555 | 76,409 | ||||||||||||
Franco-Nevada Corp. | 691 | 94,182 | ||||||||||||
Great-West Lifeco, Inc. | 3,495 | 71,222 | ||||||||||||
Imperial Oil, Ltd. | 8,869 | 117,960 | ||||||||||||
Intact Financial Corp. | 445 | 45,966 | ||||||||||||
Keyera Corp. | 8,895 | 126,251 | ||||||||||||
Lululemon Athletica, Inc. (A) | 254 | 81,100 | ||||||||||||
Lundin Mining Corp. | 28,898 | 174,607 | ||||||||||||
Magna International, Inc. | 4,033 | 205,933 | ||||||||||||
Metro, Inc. | 1,678 | 78,276 | ||||||||||||
Ritchie Bros Auctioneers, Inc. | 909 | 55,101 | ||||||||||||
Shopify, Inc., Class A (A) | 48 | 44,251 | ||||||||||||
SmartCentres Real Estate Investment Trust | 4,701 | 74,310 | ||||||||||||
Thomson Reuters Corp. | 835 | 64,917 | ||||||||||||
Chile 0.1% | 95,100 | |||||||||||||
Antofagasta PLC | 7,132 | 95,100 | ||||||||||||
China 0.0% | 64,585 | |||||||||||||
Yangzijiang Shipbuilding Holdings, Ltd. | 95,930 | 64,585 | ||||||||||||
Denmark 0.1% | 122,326 | |||||||||||||
Pandora A/S | 1,542 | 122,326 | ||||||||||||
Ireland 0.3% | 331,772 | |||||||||||||
AerCap Holdings NV (A) | 8,154 | 202,464 | ||||||||||||
Allegion PLC | 514 | 50,629 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 11 |
Table of Contents
|
Shares | Value | |||||||||||||
Ireland (continued) | ||||||||||||||
Jazz Pharmaceuticals PLC (A) | 546 | $78,679 | ||||||||||||
Israel 0.1% | 147,287 | |||||||||||||
Check Point Software Technologies, Ltd. (A) | 1,297 | 147,287 | ||||||||||||
Japan 2.2% | 2,779,065 | |||||||||||||
Alps Alpine Company, Ltd. | 90 | 1,298 | ||||||||||||
Amada Company, Ltd. | 6,266 | 54,537 | ||||||||||||
Bridgestone Corp. | 5,970 | 194,592 | ||||||||||||
Calbee, Inc. | 2,305 | 70,710 | ||||||||||||
Daicel Corp. | 7,170 | 51,170 | ||||||||||||
Hirose Electric Company, Ltd. | 627 | 87,519 | ||||||||||||
Hisamitsu Pharmaceutical Company, Inc. | 1,234 | 59,027 | ||||||||||||
Hoya Corp. | 1,522 | 171,768 | ||||||||||||
Japan Prime Realty Investment Corp. | 20 | 54,051 | ||||||||||||
JGC Holdings Corp. | 16,680 | 137,149 | ||||||||||||
Kajima Corp. | 8,418 | 89,950 | ||||||||||||
Kose Corp. | 1,055 | 134,487 | ||||||||||||
Kurita Water Industries, Ltd. | 2,287 | 68,047 | ||||||||||||
Maruichi Steel Tube, Ltd. | 2,596 | 59,556 | ||||||||||||
MonotaRO Company, Ltd. | 1,537 | 85,014 | ||||||||||||
Nexon Company, Ltd. | 7,415 | 206,663 | ||||||||||||
Nikon Corp. | 22,416 | 136,611 | ||||||||||||
Nissan Chemical Corp. | 1,245 | 66,073 | ||||||||||||
Nomura Research Institute, Ltd. | 5,727 | 168,818 | ||||||||||||
NTT DOCOMO, Inc. | 3,422 | 127,419 | ||||||||||||
ORIX Corp. | 12,019 | 140,565 | ||||||||||||
Park24 Company, Ltd. (A) | 5,544 | 74,888 | ||||||||||||
Sega Sammy Holdings, Inc. | 5,526 | 69,250 | ||||||||||||
Shimamura Company, Ltd. | 1,081 | 115,246 | ||||||||||||
Shimano, Inc. | 472 | 107,954 | ||||||||||||
SMC Corp. | 354 | 188,295 | ||||||||||||
Taisei Corp. | 1,877 | 58,408 | ||||||||||||
Norway 0.1% | 134,939 | |||||||||||||
Orkla ASA | 6,367 | 60,103 | ||||||||||||
Schibsted ASA, B Shares (A) | 2,074 | 74,836 | ||||||||||||
Singapore 0.1% | 107,620 | |||||||||||||
Mapletree Commercial Trust | 38,486 | 48,526 | ||||||||||||
Venture Corp., Ltd. | 4,192 | 59,094 | ||||||||||||
Sweden 0.8% | 946,059 | |||||||||||||
Atlas Copco AB, A Shares | 2,359 | 104,129 | ||||||||||||
Boliden AB | 4,207 | 114,721 | ||||||||||||
Epiroc AB, B Shares | 7,223 | 103,402 | ||||||||||||
Husqvarna AB, B Shares | 8,965 | 92,444 |
12 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||||||||
Sweden (continued) | ||||||||||||||
Industrivarden AB, C Shares (A) | 4,052 | $103,464 | ||||||||||||
Investor AB, B Shares | 3,046 | 182,574 | ||||||||||||
Kinnevik AB, B Shares | 5,991 | 245,325 | ||||||||||||
United Kingdom 0.9% | 1,110,291 | |||||||||||||
Ashtead Group PLC | 3,474 | 125,542 | ||||||||||||
Auto Trader Group PLC (B) | 23,363 | 175,654 | ||||||||||||
Berkeley Group Holdings PLC | 2,446 | 128,607 | ||||||||||||
BT Group PLC | 55,520 | 72,918 | ||||||||||||
Burberry Group PLC | 2,529 | 44,417 | ||||||||||||
Direct Line Insurance Group PLC | 19,856 | 67,856 | ||||||||||||
Hargreaves Lansdown PLC | 4,340 | 76,194 | ||||||||||||
Liberty Global PLC, Series C (A) | 7,873 | 146,910 | ||||||||||||
Persimmon PLC | 3,313 | 100,306 | ||||||||||||
Standard Life Aberdeen PLC | 17,798 | 51,860 | ||||||||||||
The British Land Company PLC | 13,782 | 62,239 | ||||||||||||
Wm Morrison Supermarkets PLC | 27,376 | 57,788 | ||||||||||||
United States 6.5% | 8,034,644 | |||||||||||||
A. O. Smith Corp. | 4,072 | 210,482 | ||||||||||||
ABIOMED, Inc. (A) | 411 | 103,523 | ||||||||||||
Alleghany Corp. | 118 | 64,538 | ||||||||||||
American Express Company | 1,136 | 103,649 | ||||||||||||
AmerisourceBergen Corp. | 990 | 95,109 | ||||||||||||
Amgen, Inc. | 561 | 121,703 | ||||||||||||
Arrow Electronics, Inc. (A) | 1,399 | 108,968 | ||||||||||||
Axalta Coating Systems, Ltd. (A) | 2,601 | 65,311 | ||||||||||||
Best Buy Company, Inc. | 663 | 73,958 | ||||||||||||
Biogen, Inc. (A) | 726 | 183,003 | ||||||||||||
Booking Holdings, Inc. (A) | 81 | 131,423 | ||||||||||||
Cabot Oil & Gas Corp. | 3,445 | 61,287 | ||||||||||||
Camden Property Trust | 669 | 61,709 | ||||||||||||
Cardinal Health, Inc. | 2,887 | 132,196 | ||||||||||||
CBRE Group, Inc., Class A (A) | 2,007 | 101,153 | ||||||||||||
Celanese Corp. | 875 | 99,321 | ||||||||||||
CenturyLink, Inc. | 10,650 | 91,803 | ||||||||||||
Cerner Corp. | 1,766 | 123,779 | ||||||||||||
Citrix Systems, Inc. | 1,291 | 146,227 | ||||||||||||
Cognizant Technology Solutions Corp., Class A | 1,083 | 77,348 | ||||||||||||
Colgate-Palmolive Company | 1,568 | 123,700 | ||||||||||||
ConocoPhillips | 4,010 | 114,766 | ||||||||||||
Discover Financial Services | 1,661 | 107,982 | ||||||||||||
Dollar General Corp. | 341 | 71,170 | ||||||||||||
Dropbox, Inc., Class A (A) | 4,124 | 75,304 | ||||||||||||
eBay, Inc. | 1,921 | 91,497 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 13 |
Table of Contents
|
Shares | Value | |||||||||||||
United States (continued) | ||||||||||||||
Equitable Holdings, Inc. | 4,700 | $101,003 | ||||||||||||
Erie Indemnity Company, Class A | 358 | 83,367 | ||||||||||||
Exelon Corp. | 595 | 23,735 | ||||||||||||
F5 Networks, Inc. (A) | 434 | 57,696 | ||||||||||||
Fidelity National Financial, Inc. | 2,175 | 68,056 | ||||||||||||
FLIR Systems, Inc. | 1,159 | 40,206 | ||||||||||||
Globe Life, Inc. | 623 | 50,519 | ||||||||||||
HEICO Corp. | 858 | 90,133 | ||||||||||||
HollyFrontier Corp. | 7,684 | 142,231 | ||||||||||||
Hologic, Inc. (A) | 1,437 | 98,894 | ||||||||||||
Host Hotels & Resorts, Inc. | 21,337 | 223,612 | ||||||||||||
Ingredion, Inc. | 1,042 | 73,867 | ||||||||||||
Intel Corp. | 2,111 | 93,475 | ||||||||||||
IPG Photonics Corp. (A) | 409 | 76,058 | ||||||||||||
Juniper Networks, Inc. | 4,841 | 95,465 | ||||||||||||
Kansas City Southern | 510 | 89,831 | ||||||||||||
KLA Corp. | 506 | 99,773 | ||||||||||||
Lamb Weston Holdings, Inc. | 825 | 52,346 | ||||||||||||
LyondellBasell Industries NV, Class A | 2,883 | 197,341 | ||||||||||||
MarketAxess Holdings, Inc. | 124 | 66,817 | ||||||||||||
Masco Corp. | 1,789 | 95,890 | ||||||||||||
McKesson Corp. | 758 | 111,797 | ||||||||||||
Monster Beverage Corp. (A) | 1,709 | 130,858 | ||||||||||||
Mylan NV (A) | 5,928 | 86,193 | ||||||||||||
National Retail Properties, Inc. | 2,506 | 80,217 | ||||||||||||
NetApp, Inc. | 2,026 | 88,921 | ||||||||||||
Neurocrine Biosciences, Inc. (A) | 1,272 | 125,508 | ||||||||||||
NextEra Energy, Inc. | 832 | 60,911 | ||||||||||||
Omega Healthcare Investors, Inc. | 3,427 | 98,732 | ||||||||||||
Phillips 66 | 1,395 | 65,091 | ||||||||||||
Public Storage | 628 | 143,856 | ||||||||||||
Qorvo, Inc. (A) | 451 | 57,439 | ||||||||||||
QUALCOMM, Inc. | 1,095 | 135,079 | ||||||||||||
Ralph Lauren Corp. | 3,196 | 213,653 | ||||||||||||
Robert Half International, Inc. | 1,565 | 79,330 | ||||||||||||
Seagate Technology PLC | 1,627 | 77,803 | ||||||||||||
SEI Investments Company | 3,896 | 191,488 | ||||||||||||
Sirius XM Holdings, Inc. | 27,385 | 156,916 | ||||||||||||
Snap-on, Inc. | 307 | 48,362 | ||||||||||||
Starbucks Corp. | 1,668 | 145,049 | ||||||||||||
Steel Dynamics, Inc. | 8,493 | 267,360 | ||||||||||||
Synchrony Financial | 4,506 | 112,740 | ||||||||||||
Take-Two Interactive Software, Inc. (A) | 627 | 97,135 | ||||||||||||
The Allstate Corp. | 1,509 | 133,924 |
14 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Shares | Value | |||||||||||||
United States (continued) | ||||||||||||||
The Kroger Company | 1,579 | $50,860 | ||||||||||||
The Procter & Gamble Company | 277 | 37,977 | ||||||||||||
Ulta Beauty, Inc. (A) | 460 | 95,114 | ||||||||||||
Union Pacific Corp. | 205 | 36,324 | ||||||||||||
United Rentals, Inc. (A) | 719 | 128,191 | ||||||||||||
Vornado Realty Trust | 1,570 | 48,246 | ||||||||||||
Walgreens Boots Alliance, Inc. | 1,920 | 65,357 | ||||||||||||
Waters Corp. (A) | 911 | 202,989 | ||||||||||||
Preferred securities 0.1% | $87,552 | |||||||||||||
(Cost $66,355) | ||||||||||||||
Germany 0.1% | 87,552 | |||||||||||||
FUCHS PETROLUB SE | 1,701 | 87,552 | ||||||||||||
Yield | * (%) | Maturity date | Par value^ | Value | ||||||||||
Short-term investments 12.1% | $14,992,868 | |||||||||||||
(Cost $14,993,406) | ||||||||||||||
U.S. Government 12.1% | 14,992,868 | |||||||||||||
U.S. Treasury Bill | 0.092 | 03-25-21 | 5,000,000 | 4,997,915 | ||||||||||
U.S. Treasury Bill | 0.100 | 04-22-21 | 10,000,000 | 9,994,953 | ||||||||||
Total investments (Cost $30,369,780) 25.7% | $31,880,401 | |||||||||||||
Other assets and liabilities, net 74.3% | 92,348,041 | |||||||||||||
Total net assets 100.0% | $124,228,442 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund.
^All par values are denominated in U.S. dollars unless otherwise indicated.
Security Abbreviations and Legend
(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. |
* Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end.
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 15 |
Table of Contents
|
DERIVATIVES
FUTURES
Open contracts | Number of contracts | Position | Expiration date | Notional basis^ | Notional value^ | Unrealized appreciation (depreciation) | ||||||||||||||||||
10-Year U.S. Treasury Note Futures | 132 | Long | Dec 2020 | $18,385,000 | $18,232,500 | $(152,500 | ) | |||||||||||||||||
ASX SPI 200 Index Futures | 29 | Long | Dec 2020 | 3,023,941 | 3,028,053 | 4,112 | ||||||||||||||||||
Australian 10-Year Bond Futures | 329 | Long | Dec 2020 | 34,442,597 | 34,519,627 | 77,030 | ||||||||||||||||||
Canadian 10-Year Bond Futures | 13 | Long | Dec 2020 | 1,480,846 | 1,471,928 | (8,918 | ) | |||||||||||||||||
Canadian Dollar Futures | 125 | Long | Dec 2020 | 9,467,437 | 9,384,375 | (83,062 | ) | |||||||||||||||||
Euro Currency Futures | 68 | Long | Dec 2020 | 10,021,912 | 9,908,450 | (113,462 | ) | |||||||||||||||||
Euro-BTP Italian Government Bond Futures | 51 | Long | Dec 2020 | 8,726,549 | 8,875,686 | 149,137 | ||||||||||||||||||
Euro-Buxl 30-Year Bond Futures | 9 | Long | Dec 2020 | 2,332,780 | 2,394,046 | 61,266 | ||||||||||||||||||
Euro-OAT Futures | 88 | Long | Dec 2020 | 17,280,660 | 17,436,428 | 155,768 | ||||||||||||||||||
FTSE 100 Index Futures | 23 | Long | Dec 2020 | 1,777,626 | 1,657,585 | (120,041 | ) | |||||||||||||||||
Hang Seng Index Futures | 1 | Long | Nov 2020 | 159,803 | 156,522 | (3,281 | ) | |||||||||||||||||
Japanese Yen Futures | 3 | Long | Dec 2020 | 355,767 | 358,350 | 2,583 | ||||||||||||||||||
Mini MSCI Emerging Markets Index Futures | 58 | Long | Dec 2020 | 3,207,214 | 3,196,090 | (11,124 | ) | |||||||||||||||||
NASDAQ 100 Index E-Mini Futures | 9 | Long | Dec 2020 | 2,032,393 | 1,989,945 | (42,448 | ) | |||||||||||||||||
New Zealand Dollar Futures | 158 | Long | Dec 2020 | 10,511,736 | 10,445,380 | (66,356 | ) | |||||||||||||||||
Pound Sterling Futures | 78 | Long | Dec 2020 | 6,312,708 | 6,316,538 | 3,830 | ||||||||||||||||||
Russell 2000 Index Mini Futures | 34 | Long | Dec 2020 | 2,602,830 | 2,613,920 | 11,090 | ||||||||||||||||||
S&P 500 E-Mini Index Futures | 21 | Long | Dec 2020 | 3,559,443 | 3,428,513 | (130,930 | ) | |||||||||||||||||
S&P TSX 60 Index Futures | 34 | Long | Dec 2020 | 4,907,960 | 4,726,773 | (181,187 | ) | |||||||||||||||||
Tokyo Price Index Futures | 2 | Long | Dec 2020 | 305,946 | 304,599 | (1,347 | ) | |||||||||||||||||
10-Year Japan Government Bond Futures | 6 | Short | Dec 2020 | (8,716,825 | ) | (8,698,410 | ) | 18,415 | ||||||||||||||||
30-Year U.S. Treasury Bond Futures | 2 | Short | Dec 2020 | (348,184 | ) | (344,063 | ) | 4,121 | ||||||||||||||||
Amsterdam Exchanges Index Futures | 35 | Short | Nov 2020 | (4,573,325 | ) | (4,344,887 | ) | 228,438 | ||||||||||||||||
Australian Dollar Futures | 90 | Short | Dec 2020 | (6,408,970 | ) | (6,327,000 | ) | 81,970 | ||||||||||||||||
CAC40 Index Futures | 16 | Short | Nov 2020 | (920,982 | ) | (857,552 | ) | 63,430 | ||||||||||||||||
Euro STOXX 50 Index Futures | 159 | Short | Dec 2020 | (5,993,611 | ) | (5,479,438 | ) | 514,173 | ||||||||||||||||
Euro-Bund Futures | 159 | Short | Dec 2020 | (32,402,617 | ) | (32,615,527 | ) | (212,910 | ) | |||||||||||||||
FTSE MIB Index Futures | 45 | Short | Dec 2020 | (5,035,827 | ) | (4,691,922 | ) | 343,905 | ||||||||||||||||
FTSE/JSE Top 40 Index Futures | 55 | Short | Dec 2020 | (1,640,690 | ) | (1,608,050 | ) | 32,640 | ||||||||||||||||
Hang Seng China Enterprises Index Futures | 2 | Short | Nov 2020 | (127,686 | ) | (126,698 | ) | 988 | ||||||||||||||||
IBEX 35 Index Futures | 43 | Short | Nov 2020 | (3,399,276 | ) | (3,229,407 | ) | 169,869 | ||||||||||||||||
Long Gilt Futures | 28 | Short | Dec 2020 | (4,929,572 | ) | (4,918,046 | ) | 11,526 | ||||||||||||||||
Swiss Franc Futures | 112 | Short | Dec 2020 | (15,349,275 | ) | (15,285,200 | ) | 64,075 | ||||||||||||||||
$870,800 |
^ Notional basis refers to the contractual amount agreed upon at inception of open contracts; notional value represents the current value of the open contract.
16 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
FORWARD FOREIGN CURRENCY CONTRACTS
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | |||||||||||||||||
AUD | 496,675 | USD | 349,925 | BNP | 12/15/2020 | — | $(731 | ) | ||||||||||||||
AUD | 86,085 | USD | 60,400 | JPM | 12/15/2020 | $123 | — | |||||||||||||||
BRL | 7,400,000 | USD | 1,319,766 | BNP | 12/17/2020 | — | (32,438 | ) | ||||||||||||||
CAD | 43,120 | USD | 32,861 | JPM | 12/15/2020 | — | (489 | ) | ||||||||||||||
CAD | 406,719 | USD | 303,761 | UBS | 12/15/2020 | 1,578 | — | |||||||||||||||
CHF | 1,155 | USD | 1,245 | JPM | 12/15/2020 | 15 | — | |||||||||||||||
CNY | 15,152,000 | USD | 2,202,037 | BNP | 12/17/2020 | 53,342 | — | |||||||||||||||
CNY | 12,700,000 | USD | 1,884,880 | UBS | 12/17/2020 | 5,518 | — | |||||||||||||||
DKK | 332,265 | USD | 52,059 | JPM | 12/15/2020 | — | (22 | ) | ||||||||||||||
EUR | 14,943 | USD | 17,433 | BNP | 12/15/2020 | — | (11 | ) | ||||||||||||||
EUR | 60,532 | USD | 70,437 | JPM | 12/15/2020 | 133 | — | |||||||||||||||
GBP | 103,267 | USD | 134,987 | JPM | 12/15/2020 | — | (1,161 | ) | ||||||||||||||
GBP | 224,218 | USD | 286,357 | UBS | 12/15/2020 | 4,211 | — | |||||||||||||||
INR | 913,095,000 | USD | 12,253,069 | BNP | 12/17/2020 | — | (55,533 | ) | ||||||||||||||
INR | 175,100,000 | USD | 2,359,250 | UBS | 12/17/2020 | — | (20,185 | ) | ||||||||||||||
JPY | 117,584,146 | USD | 1,116,453 | BNP | 12/15/2020 | 7,328 | — | |||||||||||||||
KRW | 482,000,000 | USD | 422,940 | BNP | 12/17/2020 | 994 | — | |||||||||||||||
MXN | 89,894,000 | USD | 4,101,504 | BNP | 12/17/2020 | 115,406 | — | |||||||||||||||
MXN | 19,300,000 | USD | 907,265 | JPM | 12/17/2020 | — | (1,906 | ) | ||||||||||||||
NOK | 323,667 | USD | 33,883 | BNP | 12/15/2020 | 15 | — | |||||||||||||||
NOK | 1,067,187 | USD | 118,826 | UBS | 12/15/2020 | — | (7,057 | ) | ||||||||||||||
NOK | 29,000,000 | USD | 3,137,079 | JPM | 12/17/2020 | — | (99,849 | ) | ||||||||||||||
NOK | 15,100,000 | USD | 1,606,437 | UBS | 12/17/2020 | — | (24,982 | ) | ||||||||||||||
NZD | 38,793 | USD | 25,851 | UBS | 12/15/2020 | — | (200 | ) | ||||||||||||||
PLN | 1,700,000 | USD | 452,353 | BNP | 12/17/2020 | — | (22,861 | ) | ||||||||||||||
PLN | 2,700,000 | USD | 695,584 | JPM | 12/17/2020 | — | (13,450 | ) | ||||||||||||||
PLN | 1,500,000 | USD | 390,735 | UBS | 12/17/2020 | — | (11,772 | ) | ||||||||||||||
RUB | 96,640,000 | USD | 1,251,169 | BNP | 12/17/2020 | — | (40,991 | ) | ||||||||||||||
RUB | 72,800,000 | USD | 932,045 | UBS | 12/17/2020 | — | (20,404 | ) | ||||||||||||||
SEK | 2,739,141 | USD | 301,970 | JPM | 12/15/2020 | 6,025 | — | |||||||||||||||
SEK | 13,494 | USD | 1,480 | UBS | 12/15/2020 | 38 | — | |||||||||||||||
SEK | 15,000,000 | USD | 1,699,493 | JPM | 12/17/2020 | — | (12,798 | ) | ||||||||||||||
SEK | 8,500,000 | USD | 955,987 | UBS | 12/17/2020 | — | (193 | ) | ||||||||||||||
SGD | 5,100,000 | USD | 3,754,624 | UBS | 12/17/2020 | — | (20,904 | ) | ||||||||||||||
TWD | 113,300,000 | USD | 3,937,447 | UBS | 12/17/2020 | 70,267 | — | |||||||||||||||
USD | 50,744 | AUD | 71,016 | JPM | 12/15/2020 | 815 | — | |||||||||||||||
USD | 3,104,482 | AUD | 4,275,445 | UBS | 12/15/2020 | 98,571 | — | |||||||||||||||
USD | 2,959,264 | BRL | 16,484,000 | BNP | 12/17/2020 | 91,655 | — | |||||||||||||||
USD | 743,834 | BRL | 4,100,000 | UBS | 12/17/2020 | 30,585 | — | |||||||||||||||
USD | 2,956 | CAD | 3,964 | BNP | 12/15/2020 | — | (19 | ) | ||||||||||||||
USD | 2,409,525 | CAD | 3,166,175 | UBS | 12/15/2020 | 32,555 | — | |||||||||||||||
USD | 476,349 | CHF | 436,191 | UBS | 12/15/2020 | 25 | — |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 17 |
Table of Contents
|
FORWARD FOREIGN CURRENCY CONTRACTS (continued)
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | |||||||||||||||||
USD | 559,094 | CNY | 3,800,000 | JPM | 12/17/2020 | — | $(6,537 | ) | ||||||||||||||
USD | 250,473 | CNY | 1,700,000 | UBS | 12/17/2020 | — | (2,572 | ) | ||||||||||||||
USD | 268,215 | DKK | 1,686,595 | BNP | 12/15/2020 | $4,076 | — | |||||||||||||||
USD | 2,555,167 | EUR | 2,158,851 | UBS | 12/15/2020 | 38,284 | — | |||||||||||||||
USD | 45,978 | GBP | 36,208 | JPM | 12/15/2020 | — | (945 | ) | ||||||||||||||
USD | 1,438,460 | GBP | 1,098,851 | UBS | 12/15/2020 | 14,436 | — | |||||||||||||||
USD | 5,996,161 | INR | 442,600,000 | BNP | 12/17/2020 | 83,710 | — | |||||||||||||||
USD | 5,823 | JPY | 609,623 | JPM | 12/15/2020 | — | (3 | ) | ||||||||||||||
USD | 4,474,440 | JPY | 474,951,724 | UBS | 12/15/2020 | — | (64,793 | ) | ||||||||||||||
USD | 1,396,295 | KRW | 1,647,913,000 | UBS | 12/17/2020 | — | (53,097 | ) | ||||||||||||||
USD | 1,101,186 | MXN | 23,400,000 | JPM | 12/17/2020 | 3,497 | — | |||||||||||||||
USD | 841,852 | MXN | 19,000,000 | UBS | 12/17/2020 | — | (49,434 | ) | ||||||||||||||
USD | 14,736 | NOK | 138,337 | JPM | 12/15/2020 | 248 | — | |||||||||||||||
USD | 5,323,670 | NOK | 48,582,000 | UBS | 12/17/2020 | 235,577 | — | |||||||||||||||
USD | 3,014 | NZD | 4,612 | UBS | 12/15/2020 | — | (35 | ) | ||||||||||||||
USD | 4,461,540 | PLN | 17,154,000 | UBS | 12/17/2020 | 127,716 | — | |||||||||||||||
USD | 252,662 | RUB | 19,700,000 | UBS | 12/17/2020 | 5,968 | — | |||||||||||||||
USD | 1,391,132 | SEK | 12,213,849 | UBS | 12/15/2020 | 17,783 | — | |||||||||||||||
USD | 829,919 | SEK | 7,300,000 | JPM | 12/17/2020 | 9,061 | — | |||||||||||||||
USD | 6,857,644 | SEK | 60,251,000 | UBS | 12/17/2020 | 82,641 | — | |||||||||||||||
USD | 2,264,933 | SGD | 3,101,000 | BNP | 12/17/2020 | — | (5,315 | ) | ||||||||||||||
USD | 1,752,517 | SGD | 2,400,000 | UBS | 12/17/2020 | — | (4,528 | ) | ||||||||||||||
USD | 2,892,444 | TWD | 83,661,000 | BNP | 12/17/2020 | — | (66,862 | ) | ||||||||||||||
USD | 995,459 | ZAR | 16,500,000 | JPM | 12/17/2020 | — | (13,120 | ) | ||||||||||||||
USD | 643,104 | ZAR | 10,700,000 | UBS | 12/17/2020 | — | (10,944 | ) | ||||||||||||||
ZAR | 75,536,000 | USD | 4,439,860 | BNP | 12/17/2020 | 177,351 | — | |||||||||||||||
ZAR | 6,500,000 | USD | 379,455 | UBS | 12/17/2020 | 17,864 | — | |||||||||||||||
$1,337,411 | $(666,141 | ) |
SWAPS
Credit default swaps - Buyer
Counterparty (OTC)/ Centrally cleared | Reference obligation | Notional amount | Currency | USD notional amount | Pay fixed rate | Fixed payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||||
JPM | CDX.EM.33 | 760,000 | USD | $ | 760,000 | 1.000% | Quarterly | Jun 2025 | $ | 76,883 | $ | (54,324 | ) | $ | 22,559 | |||||||||||||||
JPM | CDX.NA.IG.34 | 1,400,000 | USD | 1,400,000 | 1.000% | Quarterly | Jun 2025 | 6,791 | (14,421 | ) | (7,630 | ) | ||||||||||||||||||
JPM | CDX.NA.IG.34 | 3,600,000 | USD | 3,600,000 | 1.000% | Quarterly | Jun 2025 | (35,907 | ) | 16,287 | (19,620 | ) | ||||||||||||||||||
JPM | CDX.NA.IG.34 | 5,900,000 | USD | 5,900,000 | 1.000% | Quarterly | Jun 2025 | (52,645 | ) | 20,490 | (32,155 | ) | ||||||||||||||||||
JPM | iTraxx Europe Series 33 Version 1 | 1,400,000 | EUR | 1,526,634 | 1.000% | Quarterly | Jun 2025 | (2,239 | ) | (23,565 | ) | (25,804 | ) |
18 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Credit default swaps - Buyer (continued)
Unamortized | ||||||||||||||||||||||||||||||||||||||
Counterparty | upfront | |||||||||||||||||||||||||||||||||||||
(OTC)/ | USD | Pay | Fixed | payment | Unrealized | |||||||||||||||||||||||||||||||||
Centrally | Reference | Notional | notional | fixed | payment | Maturity | paid | appreciation | ||||||||||||||||||||||||||||||
cleared | obligation | amount | Currency | amount | rate | frequency | date | (received) | (depreciation) | Value | ||||||||||||||||||||||||||||
JPM | iTraxx Europe Series 33 Version 1 | 4,300,000 | EUR | $5,036,131 | 1.000% | Quarterly | Jun 2025 | $(90,920 | ) | $11,665 | $(79,255 | ) | ||||||||||||||||||||||||||
JPM | iTraxx Europe Series 33 Version 1 | 7,200,000 | EUR | 8,514,362 | 1.000% | Quarterly | Jun 2025 | (168,272 | ) | 35,566 | (132,706 | ) | ||||||||||||||||||||||||||
JPM | CDX.NA.HY.35 | 1,000,000 | USD | 1,000,000 | 5.000% | Quarterly | Dec 2025 | (34,180 | ) | (6,764 | ) | (40,944 | ) | |||||||||||||||||||||||||
JPM | CDX.NA.IG.35 | 4,100,000 | USD | 4,100,000 | 1.000% | Quarterly | Dec 2025 | (71,198 | ) | (4,042 | ) | (75,240 | ) | |||||||||||||||||||||||||
JPM | iTraxx Europe Series 34 Version 1 | 2,400,000 | EUR | 2,834,166 | 1.000% | Quarterly | Dec 2025 | (59,511 | ) | 6,770 | (52,741 | ) | ||||||||||||||||||||||||||
JPM | iTraxx Europe Series 34 Version 1 | 4,800,000 | EUR | 5,603,745 | 1.000% | Quarterly | Dec 2025 | (99,415 | ) | (6,068 | ) | (105,483 | ) | |||||||||||||||||||||||||
$40,275,038 | $(530,613 | ) | $(18,406 | ) | $(549,019 | ) |
Credit default swaps - Seller
Counterparty (OTC)/ Centrally cleared | Reference obligation | Implied credit spread | Notional amount | Currency | USD notional amount | Received fixed rate | Fixed payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | |||||||||||||||||||||||||||||||
JPM | CDX.EM.33 | 1.876% | 722,000 | USD | $722,000 | 1.000% | Quarterly | Jun 2025 | $(23,207 | ) | $1,776 | $(21,431 | ) | |||||||||||||||||||||||||||||
JPM | CDX.EM.33 | 1.876% | 38,000 | USD | 38,000 | 1.000% | Quarterly | Jun 2025 | (1,175 | ) | 47 | (1,128 | ) | |||||||||||||||||||||||||||||
JPM | CDX.NA.IG.34 | 0.851% | 1,100,000 | USD | 1,100,000 | 1.000% | Quarterly | Jun 2025 | 6,034 | (39 | ) | 5,995 | ||||||||||||||||||||||||||||||
JPM | CDX.NA.IG.34 | 0.851% | 1,100,000 | USD | 1,100,000 | 1.000% | Quarterly | Jun 2025 | 9,470 | (3,475 | ) | 5,995 | ||||||||||||||||||||||||||||||
JPM | CDX.NA.IG.34 | 0.851% | 300,000 | USD | 300,000 | 1.000% | Quarterly | Jun 2025 | 2,583 | (948 | ) | 1,635 | ||||||||||||||||||||||||||||||
JPM | CDX.NA.IG.34 | 0.851% | 1,800,000 | USD | 1,800,000 | 1.000% | Quarterly | Jun 2025 | 25,116 | (15,306 | ) | 9,810 | ||||||||||||||||||||||||||||||
JPM | CDX.NA.IG.34 | 0.851% | 2,900,000 | USD | 2,900,000 | 1.000% | Quarterly | Jun 2025 | 45,350 | (29,545 | ) | 15,805 | ||||||||||||||||||||||||||||||
JPM | CDX.NA.IG.34 | 0.851% | 3,700,000 | USD | 3,700,000 | 1.000% | Quarterly | Jun 2025 | 53,713 | (33,548 | ) | 20,165 | ||||||||||||||||||||||||||||||
JPM | iTraxx Europe Series 33 Version 1 | 0.628% | 1,400,000 | EUR | 1,554,071 | 1.000% | Quarterly | Jun 2025 | 19,723 | 6,081 | 25,804 | |||||||||||||||||||||||||||||||
JPM | iTraxx Europe Series 33 Version 1 | 0.628% | 1,300,000 | EUR | 1,443,066 | 1.000% | Quarterly | Jun 2025 | 18,314 | 5,647 | 23,961 | |||||||||||||||||||||||||||||||
JPM | iTraxx Europe Series 33 Version 1 | 0.628% | 1,900,000 | EUR | 2,189,470 | 1.000% | Quarterly | Jun 2025 | 42,976 | (7,956 | ) | 35,020 | ||||||||||||||||||||||||||||||
JPM | iTraxx Europe Series 33 Version 1 | 0.628% | 3,400,000 | EUR | 4,014,879 | 1.000% | Quarterly | Jun 2025 | 87,312 | (24,645 | ) | 62,667 | ||||||||||||||||||||||||||||||
JPM | iTraxx Europe Series 33 Version 1 | 0.628% | 4,900,000 | EUR | 5,804,518 | 1.000% | Quarterly | Jun 2025 | 125,393 | (35,079 | ) | 90,314 | ||||||||||||||||||||||||||||||
JPM | CDX.EM.34 | 2.171% | 1,100,000 | USD | 1,100,000 | 1.000% | Quarterly | Dec 2025 | (54,923 | ) | (5,697 | ) | (60,620 | ) | ||||||||||||||||||||||||||||
JPM | CDX.NA.HY.35 | 4.226% | 1,000,000 | USD | 1,000,000 | 5.000% | Quarterly | Dec 2025 | 58,525 | (17,581 | ) | 40,944 | ||||||||||||||||||||||||||||||
JPM | iTraxx Europe Series 34 Version 1 | 0.651% | 7,200,000 | EUR | 8,514,362 | 1.000% | Quarterly | Dec 2025 | 199,194 | (40,995 | ) | 158,199 | ||||||||||||||||||||||||||||||
$37,280,366 | $614,398 | $(201,263 | ) | $413,135 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 19 |
Table of Contents
|
Total return swaps
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | ABB, Ltd. | 1-Month CHF LIBOR - 0.30% | Monthly | CHF | 47,780 | Feb 2021 | BNP | — | $4,133 | $4,133 | ||||||||||||||||||
Pay | Abbott Laboratories | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 43,572 | Feb 2021 | BNP | — | 856 | 856 | ||||||||||||||||||
Pay | Air Liquide SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 21,284 | Feb 2021 | BNP | — | 1,212 | 1,212 | ||||||||||||||||||
Pay | Amcor PLC | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 108,586 | Feb 2021 | BNP | — | 9,837 | 9,837 | ||||||||||||||||||
Pay | American Water Works Company, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 113,622 | Feb 2021 | BNP | — | 3,891 | 3,891 | ||||||||||||||||||
Pay | Anheuser-Busch InBev SA/NV | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 206,231 | Feb 2021 | BNP | — | 11,282 | 11,282 | ||||||||||||||||||
Pay | Apollo Global Management, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 36,713 | Feb 2021 | BNP | — | 5,269 | 5,269 | ||||||||||||||||||
Pay | Aroundtown SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 71,315 | Feb 2021 | BNP | — | 7,440 | 7,440 | ||||||||||||||||||
Pay | ASML Holding NV | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 64,504 | Feb 2021 | BNP | — | 3,874 | 3,874 | ||||||||||||||||||
Pay | Avalara, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 123,515 | Feb 2021 | BNP | — | 7,097 | 7,097 | ||||||||||||||||||
Pay | Banco Bilbao Vizcaya Argentaria SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 46,205 | Feb 2021 | BNP | — | (4,909 | ) | (4,909 | ) | ||||||||||||||||
Pay | Bayerische Motoren Werke AG | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 56,948 | Feb 2021 | BNP | — | 3,698 | 3,698 | ||||||||||||||||||
Pay | Beiersdorf AG | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 43,787 | Feb 2021 | BNP | — | 4,489 | 4,489 | ||||||||||||||||||
Pay | Carrefour SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 67,348 | Feb 2021 | BNP | — | 3,689 | 3,689 | ||||||||||||||||||
Pay | Catalent, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 184,031 | Feb 2021 | BNP | — | 8,828 | 8,828 |
20 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized (depreciation) | Value | ||||||||||||||||||
Pay | Cellnex Telecom SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 118,557 | Feb 2021 | BNP | — | $(7,443 | ) | $(7,443 | ) | ||||||||||||||||
Pay | Chevron Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 63,513 | Feb 2021 | BNP | — | 3,405 | 3,405 | ||||||||||||||||||
Pay | Chr. Hansen Holding A/S | 1-Month DKK CIBOR - 0.30% | Monthly | DKK | 441,214 | Feb 2021 | BNP | — | 619 | 619 | ||||||||||||||||||
Pay | Coca-Cola Company | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 72,386 | Feb 2021 | BNP | — | 2,726 | 2,726 | ||||||||||||||||||
Pay | Coca-Cola European Partners PLC | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 47,037 | Feb 2021 | BNP | — | 3,359 | 3,359 | ||||||||||||||||||
Pay | Compass Group PLC | 1-Month GBP LIBOR - 0.30% | Monthly | GBP | 84,947 | Feb 2021 | BNP | — | 10,973 | 10,973 | ||||||||||||||||||
Pay | Continental AG | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 42,906 | Feb 2021 | BNP | — | 3,388 | 3,388 | ||||||||||||||||||
Pay | Coupa Software, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 110,160 | Feb 2021 | BNP | — | 13,779 | 13,779 | ||||||||||||||||||
Pay | Crown Holdings, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 134,229 | Feb 2021 | BNP | — | (5,465 | ) | (5,465 | ) | ||||||||||||||||
Pay | Daimler AG | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 150,247 | Feb 2021 | BNP | — | 9,031 | 9,031 | ||||||||||||||||||
Pay | Danone SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 53,930 | Feb 2021 | BNP | — | 8,851 | 8,851 | ||||||||||||||||||
Pay | Davide Campari-Milano NV | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 45,367 | Feb 2021 | BNP | — | 2,339 | 2,339 | ||||||||||||||||||
Pay | Delivery Hero SE | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 202,599 | Feb 2021 | BNP | — | 5,893 | 5,893 | ||||||||||||||||||
Pay | Delta Air Lines, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 153,127 | Feb 2021 | BNP | — | 3,408 | 3,408 | ||||||||||||||||||
Pay | DENTSPLY SIRONA, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 92,298 | Feb 2021 | BNP | — | (3,646 | ) | (3,646 | ) |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 21 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | DSV PANALPINA A/S | 1-Month DKK CIBOR - 0.30% | Monthly | DKK | 1,459,027 | Feb 2021 | BNP | — | $4,583 | $4,583 | ||||||||||||||||||
Pay | Eiffage SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 105,340 | Feb 2021 | BNP | — | 12,532 | 12,532 | ||||||||||||||||||
Pay | Eurofins Scientific SE | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 114,774 | Feb 2021 | BNP | — | 2,216 | 2,216 | ||||||||||||||||||
Pay | Eversource Energy | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 36,499 | Feb 2021 | BNP | — | 1,501 | 1,501 | ||||||||||||||||||
Pay | Experian PLC | 1-Month GBP LIBOR - 0.30% | Monthly | GBP | 48,025 | Feb 2021 | BNP | — | 3,198 | 3,198 | ||||||||||||||||||
Pay | Fiat Chrysler Automobiles NV | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 47,158 | Feb 2021 | BNP | — | (1,073 | ) | (1,073 | ) | ||||||||||||||||
Pay | Fidelity National Information Services, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 76,688 | Feb 2021 | BNP | — | 10,275 | 10,275 | ||||||||||||||||||
Pay | Fiserv, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 89,287 | Feb 2021 | BNP | — | 5,553 | 5,553 | ||||||||||||||||||
Pay | Ford Motor Company | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 245,318 | Feb 2021 | BNP | — | (3,561 | ) | (3,561 | ) | ||||||||||||||||
Pay | General Motors Company | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 58,304 | Feb 2021 | BNP | — | (3,475 | ) | (3,475 | ) | ||||||||||||||||
Pay | Global Payments, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 109,484 | Feb 2021 | BNP | — | 11,361 | 11,361 | ||||||||||||||||||
Pay | Hasbro, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 51,565 | Feb 2021 | BNP | — | 2,425 | 2,425 | ||||||||||||||||||
Pay | Healthpeak Properties, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 139,039 | Feb 2021 | BNP | — | 3,261 | 3,261 | ||||||||||||||||||
Pay | Henry Schein, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 38,902 | Feb 2021 | BNP | — | (1,411 | ) | (1,411 | ) |
22 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Home Depot, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 43,994 | Feb 2021 | BNP | — | $3,145 | $3,145 | ||||||||||||||||||
Pay | Ingersoll Rand, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 176,861 | Feb 2021 | BNP | — | 10,148 | 10,148 | ||||||||||||||||||
Pay | Interpublic Group of Companies, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 44,864 | Feb 2021 | BNP | — | (328 | ) | (328 | ) | ||||||||||||||||
Pay | Invitation Homes, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 93,316 | Feb 2021 | BNP | — | 3,896 | 3,896 | ||||||||||||||||||
Pay | Just Eat Takeaway.com NV | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 149,778 | Feb 2021 | BNP | — | 17,179 | 17,179 | ||||||||||||||||||
Pay | Kellogg Company | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 152,139 | Feb 2021 | BNP | — | 9,618 | 9,618 | ||||||||||||||||||
Pay | Live Nation Entertainment, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 77,912 | Feb 2021 | BNP | — | 7,976 | 7,976 | ||||||||||||||||||
Pay | McDonald’s Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 55,573 | Feb 2021 | BNP | — | 3,974 | 3,974 | ||||||||||||||||||
Pay | Melrose Industries PLC | 1-Month GBP LIBOR - 0.30% | Monthly | GBP | 102,902 | Feb 2021 | BNP | — | 6,199 | 6,199 | ||||||||||||||||||
Pay | Merck & Company, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 51,441 | Feb 2021 | BNP | — | 2,501 | 2,501 | ||||||||||||||||||
Pay | Moderna, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 251,379 | Feb 2021 | BNP | — | 26,954 | 26,954 | ||||||||||||||||||
Pay | Molson Coors Beverage Company | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 59,615 | Feb 2021 | BNP | — | 515 | 515 | ||||||||||||||||||
Pay | Neste OYJ | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 77,826 | Feb 2021 | BNP | — | 5,525 | 5,525 | ||||||||||||||||||
Pay | Nestle SA | 1-Month CHF LIBOR - 0.30% | Monthly | CHF | 56,924 | Feb 2021 | BNP | — | 2,231 | 2,231 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 23 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Newell Brands, Inc. | 1-Day USD OBFR - 0.25% | Monthly | USD | 99,443 | Feb 2021 | BNP | — | $2,570 | $2,570 | ||||||||||||||||||
Pay | Nexi SpA | 1-Month EUR EURIBOR -0.30% | Monthly | EUR | 85,428 | Feb 2021 | BNP | — | 13,598 | 13,598 | ||||||||||||||||||
Pay | Nordea Bank Abp | 1-Month SEK STIBOR - 0.30% | Monthly | SEK | 725,662 | Feb 2021 | BNP | — | 2,921 | 2,921 | ||||||||||||||||||
Pay | Ocado Group PLC | 1-Month GBP LIBOR - 0.30% | Monthly | GBP | 60,508 | Feb 2021 | BNP | — | 4,134 | 4,134 | ||||||||||||||||||
Pay | Occidental Petroleum Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 90,906 | Feb 2021 | BNP | — | 12,673 | 12,673 | ||||||||||||||||||
Pay | Omnicom Group, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 51,893 | Feb 2021 | BNP | — | 5,491 | 5,491 | ||||||||||||||||||
Pay | ONEOK, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 50,396 | Feb 2021 | BNP | — | 1,382 | 1,382 | ||||||||||||||||||
Pay | Orange SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 42,266 | Feb 2021 | BNP | — | (142 | ) | (142 | ) | ||||||||||||||||
Pay | Pfizer, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 135,783 | Feb 2021 | BNP | — | 3,964 | 3,964 | ||||||||||||||||||
Pay | Principal Financial Group, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 126,426 | Feb 2021 | BNP | — | 7,108 | 7,108 | ||||||||||||||||||
Pay | Prysmian SpA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 84,915 | Feb 2021 | BNP | — | 9,943 | 9,943 | ||||||||||||||||||
Pay | RingCentral, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 22,662 | Feb 2021 | BNP | — | 1,476 | 1,476 | ||||||||||||||||||
Pay | Roku, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 322,040 | Feb 2021 | BNP | — | 34,202 | 34,202 | ||||||||||||||||||
Pay | Royal Caribbean Cruises, Ltd. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 82,004 | Feb 2021 | BNP | — | 4,081 | 4,081 |
24 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Sanofi | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 49,532 | Feb 2021 | BNP | — | $4,952 | $4,952 | ||||||||||||||||||
Pay | SAP SE | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 38,907 | Feb 2021 | BNP | — | 13,408 | 13,408 | ||||||||||||||||||
Pay | Securitas AB | 1-Month SEK STIBOR - 0.30% | Monthly | SEK | 205,991 | Feb 2021 | BNP | — | 1,305 | 1,305 | ||||||||||||||||||
Pay | Segro PLC | 1-Month GBP LIBOR - 0.30% | Monthly | GBP | 57,775 | Feb 2021 | BNP | — | 2,260 | 2,260 | ||||||||||||||||||
Pay | Siemens AG | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 63,745 | Feb 2021 | BNP | — | 5,838 | 5,838 | ||||||||||||||||||
Pay | Societe Generale SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 109,864 | Feb 2021 | BNP | — | 1,963 | 1,963 | ||||||||||||||||||
Pay | Spirax-Sarco Engineering PLC | 1-Month GBP LIBOR - 0.30% | Monthly | GBP | 67,110 | Feb 2021 | BNP | — | (165 | ) | (165 | ) | ||||||||||||||||
Pay | Straumann Holding AG | 1-Month CHF LIBOR - 0.30% | Monthly | CHF | 142,788 | Feb 2021 | BNP | — | 3,283 | 3,283 | ||||||||||||||||||
Pay | Teladoc Health, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 104,547 | Feb 2021 | BNP | — | 12,988 | 12,988 | ||||||||||||||||||
Pay | The Clorox Company | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 27,733 | Feb 2021 | BNP | — | 1,410 | 1,410 | ||||||||||||||||||
Pay | The Travelers Companies, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 64,655 | Feb 2021 | BNP | — | (4,637 | ) | (4,637 | ) | ||||||||||||||||
Pay | T-Mobile US, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 78,058 | Feb 2021 | BNP | — | 3,873 | 3,873 | ||||||||||||||||||
Pay | Trade Desk, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 111,002 | Feb 2021 | BNP | — | 6,200 | 6,200 | ||||||||||||||||||
Pay | Truist Financial Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 257,250 | Feb 2021 | BNP | — | (82 | ) | (82 | ) | ||||||||||||||||
Pay | Ubisoft Entertainment SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 87,227 | Feb 2021 | BNP | — | 8,347 | 8,347 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 25 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | UDR, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 102,681 | Feb 2021 | BNP | — | $7,797 | $7,797 | ||||||||||||||||||
Pay | UniCredit SpA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 74,769 | Feb 2021 | BNP | — | 5,340 | 5,340 | ||||||||||||||||||
Pay | Verizon Communications, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 38,967 | Feb 2021 | BNP | — | 781 | 781 | ||||||||||||||||||
Pay | Vinci SA | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 67,458 | Feb 2021 | BNP | — | 4,366 | 4,366 | ||||||||||||||||||
Pay | Vonovia SE | 1-Month EUR EURIBOR - 0.30% | Monthly | EUR | 89,905 | Feb 2021 | BNP | — | 7,047 | 7,047 | ||||||||||||||||||
Pay | XPO Logistics, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 80,972 | Feb 2021 | BNP | — | 6,535 | 6,535 | ||||||||||||||||||
Pay | Alnylam Pharmaceuticals, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 100,326 | Feb 2021 | BNP | — | 14,608 | 14,608 | ||||||||||||||||||
Pay | Amazon.com, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 43,402 | Feb 2021 | BNP | — | 3,929 | 3,929 | ||||||||||||||||||
Pay | American International Group, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 35,173 | Feb 2021 | BNP | — | (1,799 | ) | (1,799 | ) | ||||||||||||||||
Pay | American Tower Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 132,259 | Feb 2021 | BNP | — | 5,482 | 5,482 | ||||||||||||||||||
Pay | Ball Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 95,532 | Feb 2021 | BNP | — | 1,897 | 1,897 | ||||||||||||||||||
Pay | Carnival Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 76,731 | Feb 2021 | BNP | — | 1,625 | 1,625 | ||||||||||||||||||
Pay | Cheniere Energy, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 77,963 | Feb 2021 | BNP | — | 4,621 | 4,621 |
26 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Citigroup, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 59,353 | Feb 2021 | BNP | — | $2,976 | $2,976 | ||||||||||||||||||
Pay | Corning, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 90,651 | Feb 2021 | BNP | — | 7,746 | 7,746 | ||||||||||||||||||
Pay | CoStar Group, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 35,563 | Feb 2021 | BNP | — | 1,792 | 1,792 | ||||||||||||||||||
Pay | Crown Castle International Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 56,663 | Feb 2021 | BNP | — | 4,019 | 4,019 | ||||||||||||||||||
Pay | DISH Network Corp. | 1-Day USD OBFR - 0.25% | Monthly | USD | 69,515 | Feb 2021 | BNP | — | 5,402 | 5,402 | ||||||||||||||||||
Pay | DocuSign, Inc. | 1-Day USD OBFR - 0.25% | Monthly | USD | 145,713 | Feb 2021 | BNP | — | 23,138 | 23,138 | ||||||||||||||||||
Pay | DuPont de Nemours, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 115,418 | Feb 2021 | BNP | — | 4,664 | 4,664 | ||||||||||||||||||
Pay | Equinix, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 94,520 | Feb 2021 | BNP | — | 9,689 | 9,689 | ||||||||||||||||||
Pay | Exact Sciences Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 99,747 | Feb 2021 | BNP | — | (20,624 | ) | (20,624 | ) | ||||||||||||||||
Pay | Fortive Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 64,386 | Feb 2021 | BNP | — | 5,553 | 5,553 | ||||||||||||||||||
Pay | Liberty Broadband Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 64,903 | Feb 2021 | BNP | — | 3,057 | 3,057 | ||||||||||||||||||
Pay | Linde PLC | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 83,115 | Feb 2021 | BNP | — | 3,346 | 3,346 | ||||||||||||||||||
Pay | McCormick & Company, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 100,372 | Feb 2021 | BNP | — | 9,301 | 9,301 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 27 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | MercadoLibre, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 64,152 | Feb 2021 | BNP | — | $2,231 | $2,231 | ||||||||||||||||||
Pay | Microsoft Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 43,493 | Feb 2021 | BNP | — | 3,400 | 3,400 | ||||||||||||||||||
Pay | Mondelez International, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 109,329 | Feb 2021 | BNP | — | 9,774 | 9,774 | ||||||||||||||||||
Pay | MongoDB, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 256,107 | Feb 2021 | BNP | — | 39,051 | 39,051 | ||||||||||||||||||
Pay | Mosaic Company | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 86,672 | Feb 2021 | BNP | — | 4,322 | 4,322 | ||||||||||||||||||
Pay | Nielsen Holdings PLC | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 65,206 | Feb 2021 | BNP | — | 1,961 | 1,961 | ||||||||||||||||||
Pay | Okta, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 205,176 | Feb 2021 | BNP | — | 30,372 | 30,372 | ||||||||||||||||||
Pay | Rollins, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 81,890 | Feb 2021 | BNP | — | 2,224 | 2,224 | ||||||||||||||||||
Pay | Sarepta Therapeutics, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 139,030 | Feb 2021 | BNP | — | 7,186 | 7,186 | ||||||||||||||||||
Pay | Seattle Genetics, Inc. | 1-Day USD OBFR - 0.25% | Monthly | USD | 152,345 | Feb 2021 | BNP | — | 28,067 | 28,067 | ||||||||||||||||||
Pay | Square, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 126,739 | Feb 2021 | BNP | — | 22,650 | 22,650 | ||||||||||||||||||
Pay | The Goldman Sachs Group, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 68,421 | Feb 2021 | BNP | — | 6,410 | 6,410 | ||||||||||||||||||
Pay | TransDigmGroup,Inc | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 103,669 | Feb 2021 | BNP | — | 2,927 | 2,927 |
28 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Twilio, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 350,343 | Feb 2021 | BNP | — | $50,422 | $50,422 | ||||||||||||||||||
Pay | UnitedHealth Group, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 80,493 | Feb 2021 | BNP | — | 4,812 | 4,812 | ||||||||||||||||||
Pay | Westinghouse Air Brake Technologies Corp. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 95,710 | Feb 2021 | BNP | — | 6,337 | 6,337 | ||||||||||||||||||
Pay | Xylem, Inc. | 1-Day USD SOFR Compounded OIS - 0.25% | Monthly | USD | 45,212 | Feb 2021 | BNP | — | 1,862 | 1,862 | ||||||||||||||||||
Pay | Canon, Inc. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 8,453,120 | Dec 2021 | UBS | — | (7,225 | ) | (7,225 | ) | ||||||||||||||||
Pay | Cie Financiere Richemont SA | 1-Day CHF LIBOR -0.48% | Monthly | CHF | 36,841 | Dec 2021 | UBS | — | 2,469 | 2,469 | ||||||||||||||||||
Pay | Daiichi Sankyo Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 13,757,952 | Dec 2021 | UBS | — | 346 | 346 | ||||||||||||||||||
Pay | Daikin Industries, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 5,333,085 | Dec 2021 | UBS | — | (986 | ) | (986 | ) | ||||||||||||||||
Pay | East Japan Railway Company | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 11,822,010 | Dec 2021 | UBS | — | 15,002 | 15,002 | ||||||||||||||||||
Pay | Hitachi, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 7,514,595 | Dec 2021 | UBS | — | 1,011 | 1,011 | ||||||||||||||||||
Pay | Japan Airlines Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 15,093,090 | Dec 2021 | UBS | — | 13,804 | 13,804 | ||||||||||||||||||
Pay | Kakaku.com, Inc. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 11,636,060 | Dec 2021 | UBS | — | 9,134 | 9,134 | ||||||||||||||||||
Pay | Kao Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 4,845,920 | Dec 2021 | UBS | — | 2,333 | 2,333 | ||||||||||||||||||
Pay | Kubota Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 14,926,626 | Dec 2021 | UBS | — | 8,997 | 8,997 | ||||||||||||||||||
Pay | Kyocera Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 6,175,834 | Dec 2021 | UBS | — | 3,905 | 3,905 | ||||||||||||||||||
Pay | Lasertec Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 2,588,050 | Dec 2021 | UBS | — | 1,314 | 1,314 | ||||||||||||||||||
Pay | Mazda Motor Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 4,629,290 | Dec 2021 | UBS | — | 4,627 | 4,627 | ||||||||||||||||||
Pay | Mitsubishi Chemical Holdings Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 4,358,379 | Dec 2021 | UBS | — | 2,195 | 2,195 | ||||||||||||||||||
Pay | SBI Holdings, Inc. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 10,542,609 | Dec 2021 | UBS | — | 5,838 | 5,838 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 29 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Sumitomo Chemical Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 5,785,780 | Dec 2021 | UBS | — | $3,629 | $3,629 | ||||||||||||||||||
Pay | Sumitomo Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 13,416,955 | Dec 2021 | UBS | — | 10,263 | 10,263 | ||||||||||||||||||
Pay | Sumitomo Mitsui Financial Group, Inc. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 6,274,754 | Dec 2021 | UBS | — | 1,524 | 1,524 | ||||||||||||||||||
Pay | Suzuki Motor Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 8,851,771 | Dec 2021 | UBS | — | 4,023 | 4,023 | ||||||||||||||||||
Pay | AbbVie, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 61,110 | Dec 2021 | UBS | — | 85 | 85 | ||||||||||||||||||
Pay | Afterpay, Ltd. | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 220,400 | Dec 2021 | UBS | — | (2,779 | ) | (2,779 | ) | ||||||||||||||||
Pay | AIA Group, Ltd. | 1-Day HKD HIBOR - 0.45% | Monthly | HKD | 496,974 | Dec 2021 | UBS | — | 4,326 | 4,326 | ||||||||||||||||||
Pay | Altice Europe NV | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 62,165 | Dec 2021 | UBS | — | 324 | 324 | ||||||||||||||||||
Pay | Aptiv PLC | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 174,066 | Dec 2021 | UBS | — | 2,098 | 2,098 | ||||||||||||||||||
Pay | Athene Holding, Ltd. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 135,093 | Dec 2021 | UBS | — | 13,749 | 13,749 | ||||||||||||||||||
Pay | Becton Dickinson and Company | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 131,606 | Dec 2021 | UBS | — | 2,156 | 2,156 | ||||||||||||||||||
Pay | BOC Hong Kong Holdings, Ltd. | 1-Day HKD HIBOR - 0.45% | Monthly | HKD | 451,976 | Dec 2021 | UBS | — | (974 | ) | (974 | ) | ||||||||||||||||
Pay | Boston Properties, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 48,654 | Dec 2021 | UBS | — | 4,333 | 4,333 | ||||||||||||||||||
Pay | CarMax, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 69,747 | Dec 2021 | UBS | — | 4,994 | 4,994 | ||||||||||||||||||
Pay | Centene Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 97,605 | Dec 2021 | UBS | — | 10,006 | 10,006 |
30 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Cincinnati Financial Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 59,903 | Dec 2021 | UBS | — | $6,133 | $6,133 | ||||||||||||||||||
Pay | Cisco Systems, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 36,533 | Dec 2021 | UBS | — | 3,715 | 3,715 | ||||||||||||||||||
Pay | Comerica, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 106,639 | Dec 2021 | UBS | — | (9,562 | ) | (9,562 | ) | ||||||||||||||||
Pay | Commerzbank AG | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 102,752 | Dec 2021 | UBS | — | 8,920 | 8,920 | ||||||||||||||||||
Pay | CSX Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 55,262 | Dec 2021 | UBS | — | 1,418 | 1,418 | ||||||||||||||||||
Pay | E.ON SE | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 94,784 | Dec 2021 | UBS | — | 7,164 | 7,164 | ||||||||||||||||||
Pay | Galapagos NV | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 174,196 | Dec 2021 | UBS | — | 28,002 | 28,002 | ||||||||||||||||||
Pay | Huntington Bancshares, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 62,645 | Dec 2021 | UBS | — | (5,066 | ) | (5,066 | ) | ||||||||||||||||
Pay | Insulet Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 82,210 | Dec 2021 | UBS | — | 9,301 | 9,301 | ||||||||||||||||||
Pay | Jardine Matheson Holdings, Ltd. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 64,361 | Dec 2021 | UBS | — | (3,963 | ) | (3,963 | ) | ||||||||||||||||
Pay | Lendlease Corp, Ltd. | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 43,112 | Dec 2021 | UBS | — | 1,094 | 1,094 | ||||||||||||||||||
Pay | Loews Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 34,749 | Dec 2021 | UBS | — | 932 | 932 | ||||||||||||||||||
Pay | L’Oreal SA | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 68,328 | Dec 2021 | UBS | — | 1,920 | 1,920 | ||||||||||||||||||
Pay | M&T Bank Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 58,188 | Dec 2021 | UBS | — | (1,482 | ) | (1,482 | ) | ||||||||||||||||
Pay | Melco Resorts & Entertainment, Ltd. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 101,645 | Dec 2021 | UBS | — | (7,968 | ) | (7,968 | ) |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 31 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Moody’s Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 81,334 | Dec 2021 | UBS | — | $7,712 | $7,712 | ||||||||||||||||||
Pay | MTR Corp, Ltd. | 1-Day HKD HIBOR - 0.45% | Monthly | HKD | 403,795 | Dec 2021 | UBS | — | 794 | 794 | ||||||||||||||||||
Pay | New World Development Company, Ltd. | 1-Day HKD HIBOR -0.45% | Monthly | HKD | 342,900 | Dec 2021 | UBS | — | 1,386 | 1,386 | ||||||||||||||||||
Pay | Newcrest Mining, Ltd. | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 150,284 | Dec 2021 | UBS | — | 7,439 | 7,439 | ||||||||||||||||||
Pay | Oracle Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 38,430 | Dec 2021 | UBS | — | 2,795 | 2,795 | ||||||||||||||||||
Pay | PayPal Holdings, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 53,629 | Dec 2021 | UBS | — | 4,484 | 4,484 | ||||||||||||||||||
Pay | QBE Insurance Group, Ltd. | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 139,382 | Dec 2021 | UBS | — | 9,622 | 9,622 | ||||||||||||||||||
Pay | RenaissanceRe Holdings, Ltd. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 101,290 | Dec 2021 | UBS | — | 6,509 | 6,509 | ||||||||||||||||||
Pay | Roper Technologies, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 55,959 | Dec 2021 | UBS | — | 7,677 | 7,677 | ||||||||||||||||||
Pay | Sage Group PLC | 1-Day GBP LIBOR - 0.48% | Monthly | GBP | 42,246 | Dec 2021 | UBS | — | 5,268 | 5,268 | ||||||||||||||||||
Pay | Schlumberger, Ltd. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 43,924 | Dec 2021 | UBS | — | 3,953 | 3,953 | ||||||||||||||||||
Pay | Southwest Airlines Company | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 95,875 | Dec 2021 | UBS | — | (1,816 | ) | (1,816 | ) | ||||||||||||||||
Pay | Standard Chartered PLC | 1-Day GBP LIBOR - 0.48% | Monthly | GBP | 57,788 | Dec 2021 | UBS | — | 1,796 | 1,796 | ||||||||||||||||||
Pay | Stanley Black & Decker, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 170,114 | Dec 2021 | UBS | — | 10,042 | 10,042 | ||||||||||||||||||
Pay | Sydney Airport | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 77,581 | Dec 2021 | UBS | — | 4,658 | 4,658 |
32 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | TE Connectivity, Ltd. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 47,244 | Dec 2021 | UBS | — | $4,514 | $4,514 | ||||||||||||||||||
Pay | Tyson Foods, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 88,013 | Dec 2021 | UBS | — | 4,732 | 4,732 | ||||||||||||||||||
Pay | United Overseas Bank, Ltd. | 1-Day SGD SORA - 0.45% | Monthly | SGD | 80,195 | Dec 2021 | UBS | — | 1,408 | 1,408 | ||||||||||||||||||
Pay | VF Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 91,578 | Dec 2021 | UBS | — | 12,404 | 12,404 | ||||||||||||||||||
Pay | Visa, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 39,910 | Dec 2021 | UBS | — | 3,563 | 3,563 | ||||||||||||||||||
Pay | Vulcan Materials Company | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 77,727 | Dec 2021 | UBS | — | 518 | 518 | ||||||||||||||||||
Pay | Xilinx, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 72,948 | Dec 2021 | UBS | — | (293 | ) | (293 | ) | ||||||||||||||||
Pay | Air Canada | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 145,872 | Dec 2021 | UBS | — | 5,562 | 5,562 | ||||||||||||||||||
Pay | Canadian Apartment Properties REIT | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 131,646 | Dec 2021 | UBS | — | 3,484 | 3,484 | ||||||||||||||||||
Pay | Fortis, Inc. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 151,996 | Dec 2021 | UBS | — | 3,781 | 3,781 | ||||||||||||||||||
Pay | Power Corp of Canada | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 26,560 | Dec 2021 | UBS | — | 1,139 | 1,139 | ||||||||||||||||||
Pay | Royal Bank of Canada | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 51,156 | Dec 2021 | UBS | — | 1,543 | 1,543 | ||||||||||||||||||
Pay | TC Energy Corp. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 54,245 | Dec 2021 | UBS | — | 3,791 | 3,791 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 33 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Banco Santander SA | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 109,881 | Jan 2022 | UBS | — | $(8,903 | ) | $(8,903 | ) | ||||||||||||||||
Pay | Bank of America Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 63,297 | Jan 2022 | UBS | — | 1,172 | 1,172 | ||||||||||||||||||
Pay | BASF SE | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 108,886 | Jan 2022 | UBS | — | 12,950 | 12,950 | ||||||||||||||||||
Pay | Bayer AG | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 26,201 | Jan 2022 | UBS | — | 2,580 | 2,580 | ||||||||||||||||||
Pay | BeiGene, Ltd. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 144,129 | Jan 2022 | UBS | — | 3,561 | 3,561 | ||||||||||||||||||
Pay | Credit Agricole SA | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 75,299 | Jan 2022 | UBS | — | 5,598 | 5,598 | ||||||||||||||||||
Pay | Deere & Company | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 183,445 | Jan 2022 | UBS | — | 9,472 | 9,472 | ||||||||||||||||||
Pay | Deutsche Bank AG | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 182,240 | Jan 2022 | UBS | — | (7,262 | ) | (7,262 | ) | ||||||||||||||||
Pay | Deutsche Telekom AG | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 49,112 | Jan 2022 | UBS | — | 3,618 | 3,618 | ||||||||||||||||||
Pay | Ecolab, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 65,669 | Jan 2022 | UBS | — | 5,811 | 5,811 | ||||||||||||||||||
Pay | Elanco Animal Health, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 191,648 | Jan 2022 | UBS | — | 4,914 | 4,914 | ||||||||||||||||||
Pay | Electricite de France SA | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 86,504 | Jan 2022 | UBS | — | 1,663 | 1,663 | ||||||||||||||||||
Pay | Exxon Mobil Corp. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 120,954 | Jan 2022 | UBS | — | 6,410 | 6,410 | ||||||||||||||||||
Pay | Facebook, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 62,679 | Jan 2022 | UBS | — | 841 | 841 | ||||||||||||||||||
Pay | Hang Seng Bank, Ltd. | 1-Day HKD HIBOR -0.45% | Monthly | HKD | 507,320 | Jan 2022 | UBS | — | (3,116 | ) | (3,116 | ) | ||||||||||||||||
Pay | Industria de Diseno Textil SA | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 24,761 | Jan 2022 | UBS | — | 2,788 | 2,788 | ||||||||||||||||||
Pay | Link REIT | 1-Day HKD HIBOR -0.45% | Monthly | HKD | 324,421 | Jan 2022 | UBS | — | 1,439 | 1,439 |
34 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Lowe’s Companies, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 52,493 | Jan 2022 | UBS | — | $5,372 | $5,372 | ||||||||||||||||||
Pay | LVMH Moet Hennessy Louis Vuitton SE | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 56,017 | Jan 2022 | UBS | — | 84 | 84 | ||||||||||||||||||
Pay | Mastercard, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 37,581 | Jan 2022 | UBS | — | 5,538 | 5,538 | ||||||||||||||||||
Pay | MGM Resorts International | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 64,453 | Jan 2022 | UBS | — | 1,707 | 1,707 | ||||||||||||||||||
Pay | Motorola Solutions, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 50,791 | Jan 2022 | UBS | — | 3,999 | 3,999 | ||||||||||||||||||
Pay | Novartis AG | 1-Day CHF LIBOR - 0.48% | Monthly | CHF | 73,653 | Jan 2022 | UBS | — | 6,604 | 6,604 | ||||||||||||||||||
Pay | People’s United Financial, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 150,730 | Jan 2022 | UBS | — | (728 | ) | (728 | ) | ||||||||||||||||
Pay | Prologis, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 61,518 | Jan 2022 | UBS | — | 3,380 | 3,380 | ||||||||||||||||||
Pay | Schneider Electric SE | 1-Day EUR LIBOR - 0.40% | Monthly | EUR | 39,169 | Jan 2022 | UBS | — | 1,787 | 1,787 | ||||||||||||||||||
Pay | Sun Hung Kai Properties, Ltd. | 1-Day HKDHIBOR - 0.45% | Monthly | HKD | 742,967 | Jan 2022 | UBS | — | (894 | ) | (894 | ) | ||||||||||||||||
Pay | US Bancorp | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 64,581 | Jan 2022 | UBS | — | 306 | 306 | ||||||||||||||||||
Pay | VEREIT, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 114,622 | Jan 2022 | UBS | — | 9,326 | 9,326 | ||||||||||||||||||
Pay | Walmart, Inc. | 1-Day USD SOFR Compounded OIS - 0.35% | Monthly | USD | 62,871 | Jan 2022 | UBS | — | 2,507 | 2,507 | ||||||||||||||||||
Pay | Wayfair, Inc. | 1-Day USD OBFR - 0.35% | Monthly | USD | 196,382 | Jan 2022 | UBS | — | 32,906 | 32,906 | ||||||||||||||||||
Pay | Aeon Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 24,521,640 | Jan 2022 | UBS | — | 15,878 | 15,878 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 35 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ fixed rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Barclays PLC | 1-Day GBP LIBOR - 0.48% | Monthly | GBP | 43,633 | Jan 2022 | UBS | — | $(3,644 | ) | $(3,644 | ) | ||||||||||||||||
Pay | BP PLC | 1-Day GBP LIBOR - 0.48% | Monthly | GBP | 95,198 | Jan 2022 | UBS | — | 5,867 | 5,867 | ||||||||||||||||||
Pay | Central Japan Railway Company | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 4,026,000 | Jan 2022 | UBS | — | 5,388 | 5,388 | ||||||||||||||||||
Pay | Commonwealth Bank of Australia | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 50,089 | Jan 2022 | UBS | — | 127 | 127 | ||||||||||||||||||
Pay | Daiwa House Industry Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 8,854,170 | Jan 2022 | UBS | — | 3,786 | 3,786 | ||||||||||||||||||
Pay | Denso Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 5,208,147 | Jan 2022 | UBS | — | (425 | ) | (425 | ) | ||||||||||||||||
Pay | Glencore PLC | 1-Day GBP LIBOR - 0.48% | Monthly | GBP | 204,144 | Jan 2022 | UBS | — | 11,048 | 11,048 | ||||||||||||||||||
Pay | Honda Motor Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 6,346,553 | Jan 2022 | UBS | — | 2,203 | 2,203 | ||||||||||||||||||
Pay | HSBC Holdings PLC | 1-Day GBP LIBOR - 0.48% | Monthly | GBP | 110,612 | Jan 2022 | UBS | — | (12,135 | ) | (12,135 | ) | ||||||||||||||||
Pay | Japan Post Holdings Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 12,799,530 | Jan 2022 | UBS | — | 4,099 | 4,099 | ||||||||||||||||||
Pay | Keyence Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 11,056,340 | Jan 2022 | UBS | — | 4,935 | 4,935 | ||||||||||||||||||
Pay | Mercari, Inc. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 30,275,250 | Jan 2022 | UBS | — | 59,843 | 59,843 | ||||||||||||||||||
Pay | Mitsubishi Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 10,960,920 | Jan 2022 | UBS | — | 7,222 | 7,222 | ||||||||||||||||||
Pay | Mitsubishi Estate Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 4,381,000 | Jan 2022 | UBS | — | 1,817 | 1,817 | ||||||||||||||||||
Pay | Mitsubishi UFJ Financial Group, Inc. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 8,027,460 | Jan 2022 | UBS | — | 1,769 | 1,769 | ||||||||||||||||||
Pay | Mitsui Fudosan Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 9,569,018 | Jan 2022 | UBS | — | 6,036 | 6,036 | ||||||||||||||||||
Pay | Mondi PLC | 1-Day GBP LIBOR - 0.48% | Monthly | GBP | 77,482 | Jan 2022 | UBS | — | 8,062 | 8,062 | ||||||||||||||||||
National Pay | Australia Bank, Ltd. | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 162,840 | Jan 2022 | UBS | — | 3,733 | 3,733 | ||||||||||||||||||
Pay | NEC Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 10,798,920 | Jan 2022 | UBS | — | 11,955 | 11,955 | ||||||||||||||||||
Pay | Nippon Steel Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 19,125,580 | Jan 2022 | UBS | — | 9,172 | 9,172 |
36 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Nippon Yusen KK | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 10,643,076 | Jan 2022 | UBS | — | $554 | $554 | ||||||||||||||||||
Pay | Nissan Motor Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 13,379,845 | Jan 2022 | UBS | — | 3,564 | 3,564 | ||||||||||||||||||
Pay | Oil Search, Ltd. | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 158,868 | Jan 2022 | UBS | — | 13,704 | 13,704 | ||||||||||||||||||
Pay | Rakuten, Inc. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 13,224,360 | Jan 2022 | UBS | — | 15,280 | 15,280 | ||||||||||||||||||
Pay | Sharp Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 5,435,444 | Jan 2022 | UBS | — | 3,683 | 3,683 | ||||||||||||||||||
Pay | Shiseido Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 7,511,790 | Jan 2022 | UBS | — | 3,492 | 3,492 | ||||||||||||||||||
Pay | SoftBank Group Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 19,076,504 | Jan 2022 | UBS | — | 5,744 | 5,744 | ||||||||||||||||||
Pay | Sony Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 1,365,232 | Jan 2022 | UBS | — | (1,574 | ) | (1,574 | ) | ||||||||||||||||
Pay | Takeda Pharmaceutical Company, Ltd. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 20,496,118 | Jan 2022 | UBS | — | 18,942 | 18,942 | ||||||||||||||||||
Pay | Toyota Motor Corp. | 1-Day JPY LIBOR - 0.58% | Monthly | JPY | 8,719,815 | Jan 2022 | UBS | — | 1,327 | 1,327 | ||||||||||||||||||
Pay | Transurban Group | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 110,936 | Jan 2022 | UBS | — | 3,422 | 3,422 | ||||||||||||||||||
Pay | Treasury Wine Estates, Ltd. | 1-Day AUD IBOC - 0.45% | Monthly | AUD | 153,258 | Jan 2022 | UBS | — | 1,718 | 1,718 | ||||||||||||||||||
Pay | Vodafone Group PLC | 1-Day GBP LIBOR - 0.48% | Monthly | GBP | 46,859 | Jan 2022 | UBS | — | 3,280 | 3,280 | ||||||||||||||||||
Pay | Bank of Nova Scotia | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 72,114 | Jan 2022 | UBS | — | 680 | 680 | ||||||||||||||||||
Pay | BCE, Inc. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 103,838 | Jan 2022 | UBS | — | 4,309 | 4,309 | ||||||||||||||||||
Pay | Canadian National Railway Company | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 93,633 | Jan 2022 | UBS | — | 6,992 | 6,992 | ||||||||||||||||||
Pay | Cenovus Energy, Inc. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 91,873 | Jan 2022 | UBS | — | 9,577 | 9,577 | ||||||||||||||||||
Pay | CGI, Inc. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 127,591 | Jan 2022 | UBS | — | 9,383 | 9,383 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 37 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Pay | Enbridge, Inc. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 58,447 | Jan 2022 | UBS | — | $2,176 | $2,176 | ||||||||||||||||||
Pay | Inter Pipeline, Ltd. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 135,667 | Jan 2022 | UBS | — | 8,126 | 8,126 | ||||||||||||||||||
Pay | Nutrien, Ltd. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 164,703 | Jan 2022 | UBS | — | (2,410 | ) | (2,410 | ) | ||||||||||||||||
Pay | Restaurant Brands International, Inc. | 1-Day CAD CORRA OIS - 0.45% | Monthly | CAD | 195,558 | Jan 2022 | UBS | — | 15,664 | 15,664 | ||||||||||||||||||
Pay | Teck Resources, Ltd. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 75,187 | Jan 2022 | UBS | — | 1,834 | 1,834 | ||||||||||||||||||
Pay | The Toronto-Dominion Bank | 1-Day CAD CORRA OIS - 0.45% | Monthly | CAD | 75,094 | Jan 2022 | UBS | — | 1,651 | 1,651 | ||||||||||||||||||
Pay | Wheaton Precious Metals Corp. | 1-Day CAD CORRA Compounded OIS - 0.45% | Monthly | CAD | 21,757 | Jan 2022 | UBS | — | 1,369 | 1,369 | ||||||||||||||||||
Receive | ABN AMRO Bank NV | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 20,699 | Feb 2021 | BNP | — | (643 | ) | (643 | ) | ||||||||||||||||
Receive | Accor SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 95,364 | Feb 2021 | BNP | — | (4,380 | ) | (4,380 | ) | ||||||||||||||||
Receive | Advanced Micro Devices, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 43,810 | Feb 2021 | BNP | — | (4,142 | ) | (4,142 | ) | ||||||||||||||||
Receive | Adyen NV | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 166,095 | Feb 2021 | BNP | — | (23,062 | ) | (23,062 | ) | ||||||||||||||||
Receive | AGNC Investment Corp. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 30,005 | Feb 2021 | BNP | — | (451 | ) | (451 | ) | ||||||||||||||||
Receive | Akzo Nobel NV | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 132,237 | Feb 2021 | BNP | — | (12,602 | ) | (12,602 | ) | ||||||||||||||||
Receive | Alphabet, Inc., Class A | 1-Month USD LIBOR + 0.35% | Monthly | USD | 88,662 | Feb 2021 | BNP | — | 3,436 | 3,436 |
38 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Aon PLC | 1-Month USD LIBOR + 0.35% | Monthly | USD | 107,454 | Feb 2021 | BNP | — | $(14,554 | ) | $(14,554 | ) | ||||||||||||||||
Receive | Apple, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 34,161 | Feb 2021 | BNP | — | (3,361 | ) | (3,361 | ) | ||||||||||||||||
Receive | Atos SE | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 75,016 | Feb 2021 | BNP | — | (11,398 | ) | (11,398 | ) | ||||||||||||||||
Receive | Aviva PLC | 1-Month GBP LIBOR + 0.35% | Monthly | GBP | 42,543 | Feb 2021 | BNP | — | (4,239 | ) | (4,239 | ) | ||||||||||||||||
Receive | Barratt Developments PLC | 1-Month GBP LIBOR + 0.35% | Monthly | GBP | 66,633 | Feb 2021 | BNP | — | (10,610 | ) | (10,610 | ) | ||||||||||||||||
Receive | Bouygues SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 63,802 | Feb 2021 | BNP | — | (5,885 | ) | (5,885 | ) | ||||||||||||||||
Receive | Campbell Soup Company | 1-Month USD LIBOR + 0.35% | Monthly | USD | 67,792 | Feb 2021 | BNP | — | (3,450 | ) | (3,450 | ) | ||||||||||||||||
Receive | Capgemini SE | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 16,895 | Feb 2021 | BNP | — | (1,778 | ) | (1,778 | ) | ||||||||||||||||
Receive | Carlsberg AS | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 740,419 | Feb 2021 | BNP | — | (8,762 | ) | (8,762 | ) | ||||||||||||||||
Receive | Cboe Global Markets, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 60,384 | Feb 2021 | BNP | — | (1,788 | ) | (1,788 | ) | ||||||||||||||||
Receive | Citizens Financial Group, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 70,810 | Feb 2021 | BNP | — | (1,666 | ) | (1,666 | ) | ||||||||||||||||
Receive | Clariant AG | 1-Month CHF LIBOR + 0.30% | Monthly | CHF | 69,687 | Feb 2021 | BNP | — | (8,023 | ) | (8,023 | ) | ||||||||||||||||
Receive | Coloplast A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 295,173 | Feb 2021 | BNP | — | (2,563 | ) | (2,563 | ) | ||||||||||||||||
Receive | Colruyt SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 64,680 | Feb 2021 | BNP | — | (3,172 | ) | (3,172 | ) | ||||||||||||||||
Receive | DaVita, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 48,812 | Feb 2021 | BNP | — | (1,472 | ) | (1,472 | ) | ||||||||||||||||
Receive | Demant A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 404,013 | Feb 2021 | BNP | — | (1,292 | ) | (1,292 | ) |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 39 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Diamondback Energy, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 77,953 | Feb 2021 | BNP | — | $(11,904 | ) | $(11,904 | ) | ||||||||||||||||
Receive | Duke Realty Corp. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 64,835 | Feb 2021 | BNP | — | (1,597 | ) | (1,597 | ) | ||||||||||||||||
Receive | Fair Isaac Corp. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 55,500 | Feb 2021 | BNP | — | (5,799 | ) | (5,799 | ) | ||||||||||||||||
Receive | Fastenal Company | 1-Month USD LIBOR + 0.35% | Monthly | USD | 44,129 | Feb 2021 | BNP | — | (1,385 | ) | (1,385 | ) | ||||||||||||||||
Receive | Fresenius SE & Company KGaA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 37,080 | Feb 2021 | BNP | — | (5,468 | ) | (5,468 | ) | ||||||||||||||||
Receive | Geberit AG | 1-Month CHF LIBOR + 0.30% | Monthly | CHF | 112,403 | Feb 2021 | BNP | — | (4,145 | ) | (4,145 | ) | ||||||||||||||||
Receive | Gecina SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 114,742 | Feb 2021 | BNP | — | (5,744 | ) | (5,744 | ) | ||||||||||||||||
Receive | HCA Healthcare, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 22,598 | Feb 2021 | BNP | — | (2,277 | ) | (2,277 | ) | ||||||||||||||||
Receive | HD Supply Holdings, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 69,091 | Feb 2021 | BNP | — | (3,816 | ) | (3,816 | ) | ||||||||||||||||
Receive | Hermes International | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 125,064 | Feb 2021 | BNP | — | 5,109 | 5,109 | ||||||||||||||||||
Receive | Hochtief AG | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 21,783 | Feb 2021 | BNP | — | (1,960 | ) | (1,960 | ) | ||||||||||||||||
Receive | Iliad SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 39,102 | Feb 2021 | BNP | — | (1,262 | ) | (1,262 | ) | ||||||||||||||||
Receive | Ionis Pharmaceuticals, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 34,769 | Feb 2021 | BNP | — | (973 | ) | (973 | ) | ||||||||||||||||
Receive | ITV PLC | 1-Month GBP LIBOR + 0.35% | Monthly | GBP | 49,910 | Feb 2021 | BNP | — | (1,807 | ) | (1,807 | ) | ||||||||||||||||
Receive | Kingfisher PLC | 1-Month GBP LIBOR + 0.35% | Monthly | GBP | 97,430 | Feb 2021 | BNP | — | (8,588 | ) | (8,588 | ) | ||||||||||||||||
Receive | Koninklijke Vopak NV | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 115,454 | Feb 2021 | BNP | — | (8,402 | ) | (8,402 | ) |
40 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Liberty Broadband Corp. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 88,512 | Feb 2021 | BNP | — | $(4,203 | ) | $(4,203 | ) | ||||||||||||||||
Receive | Liberty Media Corp-Liberty Formula One | 1-Month USD LIBOR + 0.35% | Monthly | USD | 57,157 | Feb 2021 | BNP | — | (266 | ) | (266 | ) | ||||||||||||||||
Receive | Logitech International SA | 1-Month CHF LIBOR + 0.30% | Monthly | CHF | 106,919 | Feb 2021 | BNP | — | 7,861 | 7,861 | ||||||||||||||||||
Receive | Masimo Corp. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 67,730 | Feb 2021 | BNP | — | (2,615 | ) | (2,615 | ) | ||||||||||||||||
Receive | Merck KGaA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 71,484 | Feb 2021 | BNP | — | 2,262 | 2,262 | ||||||||||||||||||
Receive | Mettler-Toledo International, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 103,890 | Feb 2021 | BNP | — | (2,128 | ) | (2,128 | ) | ||||||||||||||||
Receive | Molina Healthcare, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 135,671 | Feb 2021 | BNP | — | (13,192 | ) | (13,192 | ) | ||||||||||||||||
Receive | Naturgy Energy Group SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 21,396 | Feb 2021 | BNP | — | (2,067 | ) | (2,067 | ) | ||||||||||||||||
Receive | NN Group NV | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 75,980 | Feb 2021 | BNP | — | (6,845 | ) | (6,845 | ) | ||||||||||||||||
Receive | Novo Nordisk A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 837,512 | Feb 2021 | BNP | — | (10,725 | ) | (10,725 | ) | ||||||||||||||||
Receive | Pearson PLC | 1-Month GBP LIBOR + 0.35% | Monthly | GBP | 79,040 | Feb 2021 | BNP | — | (5,708 | ) | (5,708 | ) | ||||||||||||||||
Receive | Peugeot SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 77,738 | Feb 2021 | BNP | — | 1,319 | 1,319 | ||||||||||||||||||
Receive | PTC, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 50,655 | Feb 2021 | BNP | — | (2,268 | ) | (2,268 | ) | ||||||||||||||||
Receive | Reckitt Benckiser Group PLC | 1-Month GBP LIBOR + 0.35% | Monthly | GBP | 39,317 | Feb 2021 | BNP | — | (3,197 | ) | (3,197 | ) | ||||||||||||||||
Receive | Red Electrica Corp SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 110,931 | Feb 2021 | BNP | — | (7,090 | ) | (7,090 | ) | ||||||||||||||||
Receive | Roche Holding AG | 1-Month CHF LIBOR + 0.30% | Monthly | CHF | 41,326 | Feb 2021 | BNP | — | (1,984 | ) | (1,984 | ) |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 41 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Sonova Holding AG | 1-Month CHF LIBOR + 0.30% | Monthly | CHF | 242 | Feb 2021 | BNP | — | $(27 | ) | $(27 | ) | ||||||||||||||||
Receive | Telefonica SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 24,022 | Feb 2021 | BNP | — | (2,252 | ) | (2,252 | ) | ||||||||||||||||
Receive | The Blackstone Group, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 63,101 | Feb 2021 | BNP | — | (5,687 | ) | (5,687 | ) | ||||||||||||||||
Receive | Tyler Technologies, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 78,547 | Feb 2021 | BNP | — | (2,458 | ) | (2,458 | ) | ||||||||||||||||
Receive | Umicore SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 43,316 | Feb 2021 | BNP | — | (5,075 | ) | (5,075 | ) | ||||||||||||||||
Receive | Unilever NV | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 36,896 | Feb 2021 | BNP | — | (3,046 | ) | (3,046 | ) | ||||||||||||||||
Receive | Vail Resorts, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 82,779 | Feb 2021 | BNP | — | (888 | ) | (888 | ) | ||||||||||||||||
Receive | Vestas Wind Systems A/S | 1-Month DKK CIBOR + 0.30% | Monthly | DKK | 325,440 | Feb 2021 | �� | BNP | — | (1,758 | ) | (1,758 | ) | |||||||||||||||
Receive | Vivendi SA | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 83,117 | Feb 2021 | BNP | — | (649 | ) | (649 | ) | ||||||||||||||||
Receive | VMware, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 79,960 | Feb 2021 | BNP | — | (12,782 | ) | (12,782 | ) | ||||||||||||||||
Receive | Wendel SE | 1-Month EUR EURIBOR + 0.30% | Monthly | EUR | 58,274 | Feb 2021 | BNP | — | (5,213 | ) | (5,213 | ) | ||||||||||||||||
Receive | Whirlpool Corp. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 140,390 | Feb 2021 | BNP | — | (11,876 | ) | (11,876 | ) | ||||||||||||||||
Receive | WW Grainger, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 141,534 | Feb 2021 | BNP | — | (13,110 | ) | (13,110 | ) | ||||||||||||||||
Receive | Bunge, Ltd. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 69,389 | Feb 2021 | BNP | — | 3,209 | 3,209 | ||||||||||||||||||
Receive | Copart, Inc. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 57,997 | Feb 2021 | BNP | — | (3,603 | ) | (3,603 | ) | ||||||||||||||||
Receive | Lincoln National Corp. | 1-Month USD LIBOR + 0.35% | Monthly | USD | 92,051 | Feb 2021 | BNP | — | 2,873 | 2,873 |
42 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | ABC-Mart, Inc. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 4,957,590 | Dec 2021 | UBS | — | $(1,059 | ) | $(1,059 | ) | ||||||||||||||||
Receive | Bank of Kyoto, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 5,723,250 | Dec 2021 | UBS | — | (3,154 | ) | (3,154 | ) | ||||||||||||||||
Receive | Daiwa Securities Group, Inc. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 4,702,436 | Dec 2021 | UBS | — | (2,990 | ) | (2,990 | ) | ||||||||||||||||
Receive | Fujitsu, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 5,244,750 | Dec 2021 | UBS | — | (6,899 | ) | (6,899 | ) | ||||||||||||||||
Receive | GN Store Nord A/S | 1-Month DKK CIBOR + 0.40% | Monthly | DKK | 334,045 | Dec 2021 | UBS | — | (4,653 | ) | (4,653 | ) | ||||||||||||||||
Receive | Hamamatsu Photonics KK | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 5,225,040 | Dec 2021 | UBS | — | (671 | ) | (671 | ) | ||||||||||||||||
Receive | Ito En, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 6,059,120 | Dec 2021 | UBS | — | (4,160 | ) | (4,160 | ) | ||||||||||||||||
Receive | Kobe Bussan Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 2,555,640 | Dec 2021 | UBS | — | 1,352 | 1,352 | ||||||||||||||||||
Receive | Miura Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 6,337,500 | Dec 2021 | UBS | — | (2,105 | ) | (2,105 | ) | ||||||||||||||||
Receive | NGK Spark Plug Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 5,508,405 | Dec 2021 | UBS | — | (1,307 | ) | (1,307 | ) | ||||||||||||||||
Receive | Nippon Prologis REIT, Inc. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 8,996,000 | Dec 2021 | UBS | — | (519 | ) | (519 | ) | ||||||||||||||||
Receive | Nitori Holdings Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 7,017,600 | Dec 2021 | UBS | — | (1,179 | ) | (1,179 | ) | ||||||||||||||||
Receive | Nomura Holdings, Inc. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 7,281,994 | Dec 2021 | UBS | — | (2,751 | ) | (2,751 | ) | ||||||||||||||||
Receive | Ono Pharmaceutical Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 6,115,767 | Dec 2021 | UBS | — | (4,863 | ) | (4,863 | ) | ||||||||||||||||
Receive | Otsuka Holdings Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 6,879,586 | Dec 2021 | UBS | — | (3,610 | ) | (3,610 | ) | ||||||||||||||||
Receive | Panasonic Corp. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 9,341,240 | Dec 2021 | UBS | — | 9,572 | 9,572 |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 43 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Partners Group Holding AG | 1-Month CHF LIBOR + 0.40% | Monthly | CHF | 140,237 | Dec 2021 | UBS | — | $(3,266 | ) | $(3,266 | ) | ||||||||||||||||
Receive | Recruit Holdings Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 10,480,395 | Dec 2021 | UBS | — | (7,027 | ) | (7,027 | ) | ||||||||||||||||
Receive | Ryohin Keikaku Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 7,460,964 | Dec 2021 | UBS | — | 6,936 | 6,936 | ||||||||||||||||||
Receive | SCSK Corp. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 6,229,140 | Dec 2021 | UBS | — | (7,264 | ) | (7,264 | ) | ||||||||||||||||
Receive | Seiko Epson Corp. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 5,937,222 | Dec 2021 | UBS | — | 5,859 | 5,859 | ||||||||||||||||||
Receive | Seven Bank, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 7,432,863 | Dec 2021 | UBS | — | (3,412 | ) | (3,412 | ) | ||||||||||||||||
Receive | Shimizu Corp. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 8,031,024 | Dec 2021 | UBS | — | (4,975 | ) | (4,975 | ) | ||||||||||||||||
Receive | Skanska AB | 1-Month SEK STIBOR + 0.40% | Monthly | SEK | 523,539 | Dec 2021 | UBS | — | (5,881 | ) | (5,881 | ) | ||||||||||||||||
Receive | Sohgo Security Services Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 5,263,360 | Dec 2021 | UBS | — | (2,615 | ) | (2,615 | ) | ||||||||||||||||
Receive | Tokio Marine Holdings, Inc. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 3,343,050 | Dec 2021 | UBS | — | (1,234 | ) | (1,234 | ) | ||||||||||||||||
Receive | Trend Micro, Inc. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 10,676,000 | Dec 2021 | UBS | — | (7,008 | ) | (7,008 | ) | ||||||||||||||||
Receive | Yakult Honsha Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 9,170,960 | Dec 2021 | UBS | — | (4,925 | ) | (4,925 | ) | ||||||||||||||||
Receive | Yamazaki Baking Company, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 5,029,856 | Dec 2021 | UBS | — | (2,457 | ) | (2,457 | ) | ||||||||||||||||
Receive | Yara International ASA | 1-Month NOK NIBOR + 0.40% | Monthly | NOK | 899,959 | Dec 2021 | UBS | — | (2,596 | ) | (2,596 | ) | ||||||||||||||||
Receive | Aegon NV | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 25,542 | Dec 2021 | UBS | — | (540 | ) | (540 | ) | ||||||||||||||||
Receive | Ageas SA/NV | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 58,398 | Dec 2021 | UBS | — | (1,534 | ) | (1,534 | ) |
44 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | American Financial Group, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 66,403 | Dec 2021 | UBS | — | $2,974 | $2,974 | ||||||||||||||||||
Receive | Annaly Capital Management, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 53,385 | Dec 2021 | UBS | — | (1,621 | ) | (1,621 | ) | ||||||||||||||||
Receive | Aurizon Holdings, Ltd. | 1-Month AUD BBSW + 0.45% | Monthly | AUD | 97,128 | Dec 2021 | UBS | — | (5,665 | ) | (5,665 | ) | ||||||||||||||||
Receive | Autoliv, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 76,758 | Dec 2021 | UBS | — | (6,056 | ) | (6,056 | ) | ||||||||||||||||
Receive | AVEVA Group PLC | 1-Month GBP LIBOR + 0.40% | Monthly | GBP | 39,332 | Dec 2021 | UBS | — | (2,280 | ) | (2,280 | ) | ||||||||||||||||
Receive | AXA SA | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 52,900 | Dec 2021 | UBS | — | (5,626 | ) | (5,626 | ) | ||||||||||||||||
Receive | Brown-Forman Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 53,611 | Dec 2021 | UBS | — | (4,619 | ) | (4,619 | ) | ||||||||||||||||
Receive | Cable One, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 53,311 | Dec 2021 | UBS | — | (3,101 | ) | (3,101 | ) | ||||||||||||||||
Receive | Cognex Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 75,342 | Dec 2021 | UBS | — | (1,488 | ) | (1,488 | ) | ||||||||||||||||
Receive | CVS Health Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 24,855 | Dec 2021 | UBS | — | (1,360 | ) | (1,360 | ) | ||||||||||||||||
Receive | Enagas SA | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 54,044 | Dec 2021 | UBS | — | (2,144 | ) | (2,144 | ) | ||||||||||||||||
Receive | Essential Utilities, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 55,528 | Dec 2021 | UBS | — | (376 | ) | (376 | ) | ||||||||||||||||
Receive | FedEx Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 33,853 | Dec 2021 | UBS | — | (2,726 | ) | (2,726 | ) | ||||||||||||||||
Receive | Ferguson PLC | 1-Month GBP LIBOR + 0.40% | Monthly | GBP | 41,811 | Dec 2021 | UBS | — | (1,657 | ) | (1,657 | ) | ||||||||||||||||
Receive | GEA Group AG | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 47,999 | Dec 2021 | UBS | — | (2,925 | ) | (2,925 | ) | ||||||||||||||||
Receive | Hikma Pharmaceuticals PLC | 1-Month GBP LIBOR + 0.40% | Monthly | GBP | 56,903 | Dec 2021 | UBS | — | (4,537 | ) | (4,537 | ) |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 45 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | J Sainsbury PLC | 1-Month GBP LIBOR + 0.40% | Monthly | GBP | 59,335 | Dec 2021 | UBS | — | $715 | $715 | ||||||||||||||||||
Receive | JB Hunt Transport Services, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 65,388 | Dec 2021 | UBS | — | (9,283 | ) | (9,283 | ) | ||||||||||||||||
Receive | Klepierre SA | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 69,301 | Dec 2021 | UBS | — | (11,374 | ) | (11,374 | ) | ||||||||||||||||
Receive | Lear Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 58,159 | Dec 2021 | UBS | — | (3,930 | ) | (3,930 | ) | ||||||||||||||||
Receive | Lennar Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 94,842 | Dec 2021 | UBS | — | (16,209 | ) | (16,209 | ) | ||||||||||||||||
Receive | Nemetschek SE | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 61,976 | Dec 2021 | UBS | — | (1,586 | ) | (1,586 | ) | ||||||||||||||||
Receive | Newmont Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 60,921 | Dec 2021 | UBS | — | (171 | ) | (171 | ) | ||||||||||||||||
Receive | NVR, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 62,253 | Dec 2021 | UBS | — | (6,926 | ) | (6,926 | ) | ||||||||||||||||
Receive | Pentair PLC | 1-Month USD LIBOR + 0.40% | Monthly | USD | 184,385 | Dec 2021 | UBS | — | (122 | ) | (122 | ) | ||||||||||||||||
Receive | PulteGroup, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 85,575 | Dec 2021 | UBS | — | (14,267 | ) | (14,267 | ) | ||||||||||||||||
Receive | Repsol SA | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 66,465 | Dec 2021 | UBS | — | (7,554 | ) | (7,554 | ) | ||||||||||||||||
Receive | Sealed Air Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 36,806 | Dec 2021 | UBS | — | (2,055 | ) | (2,055 | ) | ||||||||||||||||
Receive | Sherwin-Williams Company | 1-Month USD LIBOR + 0.40% | Monthly | USD | 44,720 | Dec 2021 | UBS | — | (13 | ) | (13 | ) | ||||||||||||||||
Receive | Singapore Exchange, Ltd. | 1-Month SGD SIBOR + 0.45% | Monthly | SGD | 80,557 | Dec 2021 | UBS | — | (2,990 | ) | (2,990 | ) | ||||||||||||||||
Receive | Sofina SA | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 46,431 | Dec 2021 | UBS | — | (1,869 | ) | (1,869 | ) | ||||||||||||||||
Receive | Spark New Zealand, Ltd. | 1-Month NZD BBR + 0.45% | Monthly | NZD | 81,045 | Dec 2021 | UBS | — | (2,358 | ) | (2,358 | ) |
46 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | State Street Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 56,037 | Dec 2021 | UBS | — | $(6,752 | ) | $(6,752 | ) | ||||||||||||||||
Receive | Universal Health Services, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 33,137 | Dec 2021 | UBS | — | (938 | ) | (938 | ) | ||||||||||||||||
Receive | Ventas, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 68,563 | Dec 2021 | UBS | — | (6,455 | ) | (6,455 | ) | ||||||||||||||||
Receive | Western Digital Corp. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 86,678 | Dec 2021 | UBS | — | (638 | ) | (638 | ) | ||||||||||||||||
Receive | Woodside Petroleum, Ltd. | 1-Month AUD BBSW + 0.45% | Monthly | AUD | 133,690 | Dec 2021 | UBS | — | (5,241 | ) | (5,241 | ) | ||||||||||||||||
Receive | Allianz SE | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 45,427 | Jan 2022 | UBS | — | (3,642 | ) | (3,642 | ) | ||||||||||||||||
Receive | ANDRITZ AG | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 66,554 | Jan 2022 | UBS | — | (1,495 | ) | (1,495 | ) | ||||||||||||||||
Receive | Charter Communications, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 57,957 | Jan 2022 | UBS | — | (3,020 | ) | (3,020 | ) | ||||||||||||||||
Receive | Deutsche Wohnen SE | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 72,711 | Jan 2022 | UBS | — | (2,571 | ) | (2,571 | ) | ||||||||||||||||
Receive | Essity AB | 1-Month SEK STIBOR + 0.40% | Monthly | SEK | 387,232 | Jan 2022 | UBS | — | (5,977 | ) | (5,977 | ) | ||||||||||||||||
Receive | Koninklijke Ahold Delhaize NV | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 171,467 | Jan 2022 | UBS | — | (8,959 | ) | (8,959 | ) | ||||||||||||||||
Receive | MetLife, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 79,160 | Jan 2022 | UBS | — | (2,774 | ) | (2,774 | ) | ||||||||||||||||
Receive | Micron Technology, Inc. | 1-Month USD LIBOR + 0.40% | Monthly | USD | 114,060 | Jan 2022 | UBS | — | (3,535 | ) | (3,535 | ) | ||||||||||||||||
Receive | Neles OYJ | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 21,220 | Jan 2022 | UBS | — | (909 | ) | (909 | ) | ||||||||||||||||
Receive | Novozymes A/S | 1-Month DKK CIBOR + 0.40% | Monthly | DKK | 1,038,940 | Jan 2022 | UBS | — | (10,276 | ) | (10,276 | ) | ||||||||||||||||
Receive | Orion OYJ | 1-Month EUR LIBOR + 0.40% | Monthly | EUR | 72,816 | Jan 2022 | UBS | — | (4,204 | ) | (4,204 | ) |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 47 |
Table of Contents
|
Total return swaps (continued)
Pay/ receive total return* | Reference entity | Floating/ rate | Payment frequency | Currency | Notional amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value | ||||||||||||||||||
Receive | Swatch Group AG | 1-Month CHF LIBOR + 0.40% | Monthly | CHF | 175,978 | Jan 2022 | UBS | — | $(13,785 | ) | $(13,785 | ) | ||||||||||||||||
Receive | Sekisui House, Ltd. | 1-Month JPY LIBOR + 0.45% | Monthly | JPY | 6,618,438 | Jan 2022 | UBS | — | (2,524 | ) | (2,524 | ) | ||||||||||||||||
| —
|
|
|
$876,766
|
|
| $876,766
|
|
* Fund will pay or receive the total return of the reference asset depending on whether the return is positive or negative. For contracts where the fund has elected to receive the total return of the reference asset if positive, it will be responsible for paying the floating rate and the total return of the reference asset if negative. If the fund has elected to pay the total return of the reference asset if positive, it will receive the floating rate and the total return of the reference asset if negative.
Derivatives Currency Abbreviations | ||
AUD | Australian Dollar | |
BRL | Brazilian Real | |
CAD | Canadian Dollar | |
CHF | Swiss Franc | |
CNY | Chinese Yuan Renminbi | |
DKK | Danish Krone | |
EUR | Euro | |
GBP | Pound Sterling | |
HKD | Hong Kong Dollar | |
INR | Indian Rupee | |
JPY | Japanese Yen | |
KRW | Korean Won | |
MXN | Mexican Peso | |
NOK | Norwegian Krone | |
NZD | New Zealand Dollar | |
PLN | Polish Zloty | |
RUB | Russian Ruble | |
SEK | Swedish Krona | |
SGD | Singapore Dollar | |
TWD | New Taiwan Dollar | |
USD | U.S. Dollar | |
ZAR | South African Rand | |
Derivatives Abbreviations | ||
BBR | Bank Bill Rate | |
BBSW | Bank Bill Swap Rate | |
BNP | BNP Paribas | |
CIBOR | Copenhagen Interbank Offered Rate | |
CORRA | Canadian Overnight Repo Rate Average | |
EURIBOR | Euro Interbank Offered Rate |
48 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
HIBOR | Hong Kong Interbank Offered Rate | |
IBOC | Interbank Overnight Cash Rate | |
JPM | JPMorgan Chase Bank, N.A. | |
LIBOR | London Interbank Offered Rate | |
NIBOR | Norwegian Interbank Offered Rate | |
OBFR | Overnight Bank Funding Rate | |
OIS | Overnight Index Swap | |
OTC | Over-the-counter | |
SIBOR | Singapore Interbank Offered Rate | |
SOFR | Secured Overnight Financing Rate | |
SORA | Singapore Overnight Rate Average | |
STIBOR | Stockholm Interbank Offered Rate | |
UBS | UBS AG |
At 10-31-20, the aggregate cost of investments for federal income tax purposes was $34,191,591. Net unrealized depreciation aggregated to $28,238, of which $686,653 related to gross unrealized appreciation and $714,891 related to gross unrealized depreciation.
See Notes to financial statements regarding investment transactions and other derivatives information.
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 49 |
Table of Contents
Consolidated financial statements
|
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES 10-31-20 | ||||
Assets | ||||
Unaffiliated investments, at value (Cost $30,369,780) | $31,880,401 | |||
Swap contracts, at value (net unamortized upfront payment of $770,586) | 2,167,973 | |||
Unrealized appreciation on forward foreign currency contracts | 1,337,411 | |||
Receivable for futures variation margin | 889,382 | |||
Cash | 77,862,402 | |||
Collateral held at broker for futures contracts | 6,916,839 | |||
Collateral segregated at custodian for OTC derivative contracts | 5,861,822 | |||
Dividends and interest receivable | 32,850 | |||
Receivable for investments sold | 1,048,769 | |||
Other assets | 33,885 | |||
Total assets | 128,031,734 | |||
Liabilities | ||||
Unrealized depreciation on forward foreign currency contracts | 666,141 | |||
Swap contracts, at value (net unamortized upfront payment of $(686,801)) | 1,427,091 | |||
Payable for collateral on OTC derivatives | 469,341 | |||
Foreign currency overdraft, at value (cost $(5,411)) | 5,411 | |||
Payable for investments purchased | 1,037,473 | |||
Payable for fund shares repurchased | 41,880 | |||
Payable to affiliates | ||||
Accounting and legal services fees | 4,517 | |||
Trustees’ fees | 75 | |||
Other liabilities and accrued expenses | 151,363 | |||
Total liabilities | 3,803,292 | |||
Net assets | $124,228,442 | |||
Net assets consist of | ||||
Paid-in capital | $144,519,271 | |||
Total distributable earnings (loss) | (20,290,829 | ) | ||
Net assets
|
| $124,228,442
|
| |
Net asset value per share | ||||
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | ||||
Class R6 ($41,618 ÷ 5,000 shares) | $8.32 | |||
Class NAV ($124,186,824 ÷ 14,918,536 shares) | $8.32 |
50 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
CONSOLIDATED STATEMENT OF OPERATIONS For the period ended 10-31-201 | ||||
Investment income | ||||
Dividends | $667,269 | |||
Interest | 340,093 | |||
Less foreign taxes withheld | (30,329 | ) | ||
Total investment income | 977,033 | |||
Expenses | ||||
Investment management fees | 1,148,168 | |||
Accounting and legal services fees | 23,028 | |||
Transfer agent fees | 5 | |||
Trustees’ fees | 2,231 | |||
Custodian fees | 87,848 | |||
State registration fees | 29,280 | |||
Printing and postage | 19,676 | |||
Professional fees | 292,970 | |||
Other | 29,885 | |||
Total expenses | 1,633,091 | |||
Less expense reductions | (8,044 | ) | ||
Net expenses | 1,625,047 | |||
Net investment loss | (648,014 | ) | ||
Realized and unrealized gain (loss) | ||||
Net realized gain (loss) on | ||||
Unaffiliated investments and foreign currency transactions | (17,652,165 | ) | ||
Futures contracts | (15,802,779 | ) | ||
Forward foreign currency contracts | (353,428 | ) | ||
Swap contracts | 5,396,568 | |||
(28,411,804 | ) | |||
Change in net unrealized appreciation (depreciation) of | ||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 1,477,960 | |||
Futures contracts | 870,800 | |||
Forward foreign currency contracts | 671,270 | |||
Swap contracts | 657,097 | |||
3,677,127 | ||||
Net realized and unrealized loss | (24,734,677 | ) | ||
Decrease in net assets from operations | $(25,382,691 | ) |
1 | Period from 12-18-19 (commencement of operations) to 10-31-20. |
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 51 |
Table of Contents
|
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS | ||||
Period ended 10-31-201 | ||||
Increase (decrease) in net assets | ||||
From operations | ||||
Net investment loss | $(648,014 | ) | ||
Net realized loss | (28,411,804 | ) | ||
Change in net unrealized appreciation (depreciation) | 3,677,127 | |||
Decrease in net assets resulting from operations | (25,382,691 | ) | ||
Distributions to shareholders | ||||
From earnings | ||||
Class R6 | (18 | ) | ||
Class NAV | (55,989 | ) | ||
Total distributions | (56,007 | ) | ||
From fund share transactions | 149,667,140 | |||
Total increase | 124,228,442 | |||
Net assets | ||||
Beginning of period | — | |||
End of period | $124,228,442 |
1 | Period from 12-18-19 (commencement of operations) to 10-31-20. |
52 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
Table of Contents
|
1 | Period from 12-18-19 (commencement of operations) to 10-31-20. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the period. |
5 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 53 |
Table of Contents
|
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued) | ||||
CLASS NAV SHARES | Period ended 10-31-201 | |||
Per share operating performance | ||||
Net asset value, beginning of period | $10.00 | |||
Net investment loss2 | (0.04 | ) | ||
Net realized and unrealized gain (loss) on investments | (1.64 | ) | ||
Total from investment operations | (1.68 | ) | ||
Less distributions | ||||
From net investment income | — | 3 | ||
Net asset value, end of period | $8.32 | |||
Total return (%)4 | (16.67 | )5 | ||
Ratios and supplemental data | ||||
Net assets, end of period (in millions) | $124 | |||
Ratios (as a percentage of average net assets): | ||||
Expenses before reductions | 1.43 | 6 | ||
Expenses including reductions | 1.42 | 6 | ||
Net investment loss | (0.57 | )6 | ||
Portfolio turnover (%) | 318 |
1 | Period from 12-18-19 (commencement of operations) to 10-31-20. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the period. |
5 | Not annualized. |
6 | Annualized. |
54 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Table of Contents
Notes to consolidated financial statements
|
Note 1 — Organization
John Hancock Alternative Risk Premia Fund (the fund) is a series of John Hancock Investment Trust (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term positive absolute returns.
The fund may offer multiple classes of shares. The shares currently outstanding are detailed in the Consolidated statement of assets and liabilities. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
The fund commenced operations on December 18, 2019.
Basis of consolidation. The accompanying consolidated financial statements include the accounts of John Hancock Alternative Risk Premia Offshore Subsidiary Fund, Ltd. (the subsidiary), a Cayman Islands exempted company which was incorporated on January 4, 2019, a wholly-owned subsidiary of the fund. The fund and its subsidiary are advised by Unigestion (UK) Limited, (the subadvisor), under the supervision of John Hancock Investment Management LLC (the Advisor). The fund may gain exposure to the commodities markets by investing up to 25% of its total assets in the subsidiary. The subsidiary acts as an investment vehicle for the fund to enable the fund to obtain its commodity exposure by investing in commodity-linked derivative instruments. As of October 31, 2020, the net assets of the subsidiary were $28,038,708 representing 22.6% of the fund’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated. The Consolidated Fund’s investments includes positions of the fund and the subsidiary.
The subsidiary primarily obtains its commodity exposure by investing in commodity-linked derivative instruments, which may include but are not limited to total return swaps, commodity (U.S. or foreign) futures and commodity-linked notes. Neither the fund nor the subsidiary intends to invest directly in physical commodities. The subsidiary may also invest in other instruments, including fixed-income securities, either as investments or to serve as margin or collateral for its swap positions, and foreign currency transactions (including forward contracts).
Note 2 — Significant accounting policies
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the consolidated financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the consolidated financial statements were issued have been evaluated in the preparation of the consolidated financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund’s Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities, including exchange-traded or closed-end funds, are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Debt obligations are typically
ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 55 |
Table of Contents
|
valued based on evaluated prices provided by an independent pricing vendor. Independent pricing vendors utilize matrix pricing, which takes into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data, as well as broker supplied prices. Futures contracts are typically valued at the last traded price on the exchange on which they trade. Foreign equity index futures that trade in the electronic trading market subsequent to the close of regular trading may be valued at the last traded price in the electronic trading market as of 4:00 P.M. ET, or may be fair valued based on fair value adjustment factors provided by an independent pricing vendor in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE. Swaps are generally valued using evaluated prices obtained from an independent pricing vendor. Forward foreign currency contracts are valued at the prevailing forward rates which are based on foreign currency exchange spot rates and forward points supplied by an independent pricing vendor. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund’s Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund’s Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities, including registered investment companies. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
56 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
Table of Contents
|
The following is a summary of the values by input classification of the Consolidated Fund’s investments as of October 31, 2020, by major security category or type:
| Total value at 10-31-20 |
| | Level 1 quoted price |
| | Level 2 significant observable inputs |
| | Level 3 significant unobservable inputs |
| |||||
Investments in securities: | ||||||||||||||||
Assets | ||||||||||||||||
Common stocks | ||||||||||||||||
Australia | $ | 1,399,597 | — | $ | 1,399,597 | — | ||||||||||
Canada | 1,526,696 | $ | 1,526,696 | — | — | |||||||||||
Chile | 95,100 | — | 95,100 | — | ||||||||||||
China | 64,585 | — | 64,585 | — | ||||||||||||
Denmark | 122,326 | — | 122,326 | — | ||||||||||||
Ireland | 331,772 | 331,772 | — | — | ||||||||||||
Israel | 147,287 | 147,287 | — | — | ||||||||||||
Japan | 2,779,065 | — | 2,779,065 | — | ||||||||||||
Norway | 134,939 | — | 134,939 | — | ||||||||||||
Singapore | 107,620 | — | 107,620 | — | ||||||||||||
Sweden | 946,059 | — | 946,059 | — | ||||||||||||
United Kingdom | 1,110,291 | 146,910 | 963,381 | — | ||||||||||||
United States | 8,034,644 | 8,034,644 | — | — | ||||||||||||
Preferred securities | 87,552 | — | 87,552 | — | ||||||||||||
Short-term investments | 14,992,868 | — | 14,992,868 | — | ||||||||||||
Total investments in securities | $ | 31,880,401 | $ | 10,187,309 | $ | 21,693,092 | — | |||||||||
Derivatives: | ||||||||||||||||
Assets | ||||||||||||||||
Futures | $ | 1,998,366 | $ | 1,827,509 | $ | 170,857 | — | |||||||||
Forward foreign currency contracts | 1,337,411 | — | 1,337,411 | — | ||||||||||||
Swap contracts | 2,167,973 | — | 2,167,973 | — | ||||||||||||
Liabilities | ||||||||||||||||
Futures | (1,127,566 | ) | (1,124,285 | ) | (3,281 | ) | — | |||||||||
Forward foreign currency contracts | (666,141 | ) | — | (666,141 | ) | — | ||||||||||
Swap contracts | (1,427,091 | ) | — | (1,427,091 | ) | — |
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of the fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of certain foreign securities where the dividend may not be known
ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 57 |
Table of Contents
|
until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments, and liabilities denominated in foreign currencies are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income, capital gains or repatriations imposed by certain countries, a portion of which may be recoverable. Foreign taxes are accrued based upon the fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests. Taxes are accrued based on gains realized by the fund as a result of certain foreign security sales. In certain circumstances, estimated taxes are accrued based on unrealized appreciation of such securities. Investment income is recorded net of foreign withholding taxes.
Overdraft. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund’s custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
Line of credit. Effective June 25, 2020, the fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $1 billion unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $850 million, subject to asset coverage and other limitations as specified in the agreement. Each participating fund paid an upfront fee in connection with this line of credit agreement, which is charged based on a combination of fixed and asset-based allocations and amortized over 365 days. Prior to June 25, 2020, the fund and other affiliated funds had a similar agreement that enabled them to participate in a $750 million unsecured committed line of credit. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset-based allocations and is reflected in Other expenses on the Consolidated statement of operations. For the period ended October 31, 2020, the fund had no borrowings under the line of credit. Commitment fees, including upfront fees, for the period ended October 31, 2020 were $2,875.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
58 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
Table of Contents
|
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of October 31, 2020, the fund has a short-term capital loss carryforward of $13,812,675 and a long-term capital loss carryforward of $6,429,135 available to offset future net realized capital gains. This carryforward does not expire.
As of October 31, 2020, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund’s federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends annually. Capital gain distributions, if any, are typically distributed annually.
The tax character of distributions for the period ended October 31, 2020 was as follows:
October 31, 2020 | ||
Ordinary income | $56,007 |
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class. As of October 31, 2020, there were no distributable earnings on a tax basis.
Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in the fund’s consolidated financial statements as a return of capital.
Capital accounts within the consolidated financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals, net operating losses, foreign currency transactions, derivative transactions and investments in passive foreign investment companies.
Net income and realized gains from investments held by the subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the subsidiary in any taxable year, the loss will generally not be available to offset the fund’s ordinary income and/or capital gains for that year.
Note 3 — Derivative instruments
The fund or its subsidiary may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 59 |
Table of Contents
|
Derivatives which are typically traded through the OTC market are regulated by the Commodity Futures Trading Commission (the CFTC). Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has the right to close out all transactions and to net amounts owed.
As defined by the ISDA, the fund or its subsidiary may have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund, if any, is held in a segregated account by a third-party agent or held by the custodian bank for the benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund, if any, for OTC transactions is held in a segregated account at the fund’s custodian and is noted in the accompanying Consolidated Fund’s investments, or if cash is posted, on the Consolidated statement of assets and liabilities. The fund’s risk of loss due to counterparty risk is equal to the asset value of outstanding contracts offset by collateral received.
Certain derivatives are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.
Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Futures are traded on an exchange and cleared through a central clearinghouse. Risks related to the use of futures contracts include possible illiquidity of the futures markets and contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument and potential losses in excess of the amounts recognized on the Consolidated statement of assets and liabilities. Use of long futures contracts subjects the fund to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the fund to unlimited risk of loss.
Upon entering into a futures contract, the fund or the subsidiary is required to deposit initial margin with the broker in the form of cash or securities. The amount of required margin is set by the broker and is generally based on a percentage of the contract value. The margin deposit must then be maintained at the established level over the life of the contract. Cash that has been pledged by the fund or the subsidiary is detailed in the Consolidated statement of assets and liabilities as Collateral held at broker for futures contracts. Securities pledged by the fund, if any, are identified in the Consolidated Fund’s investments. Subsequent payments, referred to as variation margin, are made or received by the fund periodically and are based on changes in the market value of open futures contracts. Futures contracts are marked-to-market daily and unrealized gain or loss is recorded by the fund. Receivable for futures variation margin is included on the Consolidated statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
During the period ended October 31, 2020, the fund or the subsidiary used futures contracts to gain exposure to treasuries market, foreign bond market, foreign currency and certain securities markets. The fund and its subsidiary held futures contracts with USD notional values ranging from $145.6 million to $249.0 million, as measured at each quarter end.
Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls for delivery of the currencies on a future date that is specified in the contract. Forwards are typically traded
60 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
Table of Contents
|
OTC. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral if applicable, and the risk that currency movements will not favor the fund thereby reducing the fund’s total return, and the potential for losses in excess of the amounts recognized on the Consolidated statement of assets and liabilities.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency or settlement with the counterparty.
During the period ended October 31, 2020, the fund used forward foreign currency contracts to gain exposure to currencies. The fund held forward foreign currency contracts with USD notional values ranging from $104.8 million to $337.6 million, as measured at each quarter end.
Swaps. Swap agreements are agreements between the fund and a counterparty to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals. Swap agreements are privately negotiated in the OTC market (OTC swaps) or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as a component of unrealized appreciation/depreciation of swap contracts. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.
Upfront payments made/received by the fund, if any, are amortized/accreted for financial reporting purposes, with the unamortized/unaccreted portion included in the Consolidated statement of assets and liabilities. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund.
Entering into swap agreements involves, to varying degrees, elements of credit, market and documentation risk that may provide outcomes that are in excess of the amounts recognized on the Consolidated statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for the swap, or that a counterparty may default on its obligation or delay payment under the swap terms. The counterparty may disagree or contest the terms of the swap. In addition to interest rate risk, market risks may also impact the swap. The fund may also suffer losses if it is unable to terminate or assign outstanding swaps or reduce its exposure through offsetting transactions.
Credit default swaps. Credit default swaps (CDS) involve the exchange of a fixed rate premium (paid by the Buyer), for protection against the loss in value of an underlying debt instrument, referenced entity or index, in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor” (the Seller), receiving the premium and agreeing to contingent payments that are specified within the credit default agreement. The fund may enter into CDS in which it may act as either Buyer or Seller. By acting as the Seller, the fund may incur economic leverage since it would be obligated to pay the Buyer the notional amount of the contract in the event of a default. The amount of loss in such case could be significant, but would typically be reduced by any recovery value on the underlying credit.
Credit default swaps — Buyer
During the period ended October 31, 2020, the fund used credit default swap contracts as a buyer to gain exposure to a security or credit index. The fund held credit default swaps with total USD notional amounts ranging from $3.7 million to $64.1 million, as measured at each quarter end.
Credit default swaps — Seller
Implied credit spreads are utilized in determining the market value of CDS agreements in which the fund is the Seller at period end. The implied credit spread generally represents the yield of the instrument above a credit-risk free rate, such as the U.S. Treasury Bond Yield, and may include upfront payments required to be made to enter
ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 61 |
Table of Contents
|
into the agreement. It also serves as an indicator of the current status of the payment/performance risk and represents the likelihood or risk of default for the credit derivative. Wider credit spreads represent a deterioration of the referenced entity’s creditworthiness and an increased risk of default or other credit event occurring as defined under the terms of the agreement.
For CDS agreements where implied credit spreads are not reported or available, the average credit rating on the underlying index is shown. A deterioration of the referenced entity’s creditworthiness would indicate a greater likelihood of a credit event occurring and result in increasing market values, in absolute terms when compared to the notional amount of the swap. The maximum potential amount of future payments (undiscounted) that the fund as the Seller could be required to make under any CDS agreement equals the notional amount of the agreement.
During the period ended October 31, 2020, the fund used credit default swap contracts as a seller to gain exposure to a security or credit index. The fund held credit default swaps with total USD notional amounts ranging from $9.5 million to $61.6 million, as measured at each quarter end.
Total Return Swaps. The fund may enter into total return swap contracts to obtain synthetic exposure to a specific reference asset or index without owning, taking physical custody of, or short selling the underlying assets. Total return swaps are commitments where one party pays a fixed or variable rate premium (the Buyer) in exchange for a market-linked return (the Seller). The Seller pays the total return of a specific reference asset or index and in return receives interest payments from the Buyer. To the extent the total return of the underlying asset or index exceeds or falls short of the offsetting interest rate obligation, the Buyer will receive or make a payment to the Seller. A fund may enter into total return swaps in which it may act as either the Buyer or the Seller. Total return swap contracts are subject to the risk associated with the investment in the underlying reference asset or index. The risk in the case of short total return swap contracts is unlimited based on the potential for unlimited increases in the market value of the underlying reference asset or index.
During the period ended October 31, 2020, the fund used total return swaps to gain exposure to an underlying asset. The fund held total return swaps with total USD notional amounts ranging from $36.6 million to $64.3 million, as measured at each quarter end.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the fund and its subsidiary at October 31, 2020 by risk category:
Risk | Consolidated statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value | ||||
Interest rate | Receivable/payable for futures variation margin | Futures | $477,263 | $(374,328) | ||||
Currency | Receivable/payable for futures variation margin | Futures | 152,458 | (262,880) | ||||
Equity | Receivable/payable for futures variation margin | Futures | 1,368,645 | (490,358) | ||||
Forward foreign | ||||||||
Unrealized appreciation / depreciation on forward | currency | |||||||
Currency | foreign currency contracts | contracts | 1,337,411 | (666,141) | ||||
Credit default | ||||||||
Credit | Swap contracts, at value | swaps | 518,873 | (654,757) | ||||
Total return | ||||||||
Equity | Swap contracts, at value | swaps | 1,649,100 | (772,334) | ||||
$5,503,750 | $(3,220,798) |
62 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
Table of Contents
|
For financial reporting purposes, the fund and its subsidiary do not offset OTC derivative assets or liabilities that are subject to master netting arrangements, as defined by the ISDAs, in the Consolidated statement of assets and liabilities. In the event of default by the counterparty or a termination of the agreement, the ISDA allows an offset of amounts across the various transactions between the fund and the applicable counterparty. The tables below reflect the fund’s exposure to OTC derivative transactions and exposure to counterparties subject to an ISDA:
OTC Financial Instruments | Asset | Liability | ||||||
Forward foreign currency contracts | $1,337,411 | $(666,141 | ) | |||||
Swap contracts | 2,167,973 | (1,427,091 | ) | |||||
Totals | $3,505,384 | $(2,093,232 | ) |
Counterparty | Total Market Value of OTC Derivatives | Collateral Posted by Counterparty 1 | Collateral Posted by Fund 1 | Net Exposure | ||||||||||||
BNP Paribas | $789,514 | — | — | $789,514 | ||||||||||||
JPMorgan Chase Bank, N.A. | (266,247 | ) | — | $266,247 | — | |||||||||||
UBS AG | 888,885 | — | — | 888,885 | ||||||||||||
Totals | $1,412,152 | — | $266,247 | $1,678,399 |
1 Reflects collateral posted by the counterparty or posted by the fund, excluding any excess collateral amounts.
Effect of derivative instruments on the Consolidated statement of operations
The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the period ended October 31, 2020:
Consolidated statement of operations location - Net realized gain (loss) on: | ||||||||||||||||
Risk | Futures contracts | Forward foreign currency contracts | Swap contracts | Total | ||||||||||||
Interest rate | $(5,416,861 | ) | — | — | $(5,416,861 | ) | ||||||||||
Currency | (1,470,210 | ) | $(353,428 | ) | — | (1,823,638 | ) | |||||||||
Credit | — | — | $(373,461 | ) | (373,461 | ) | ||||||||||
Equity | (8,915,708 | ) | — | 5,770,029 | (3,145,679 | ) | ||||||||||
Total | $(15,802,779 | ) | $(353,428 | ) | $5,396,568 | $(10,759,639 | ) |
The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the period ended October 31, 2020:
Consolidated statement of operations location - Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Risk | Futures contracts | Forward foreign currency contracts | Swap contracts | Total | ||||||||||||
Interest rate | $102,935 | — | — | $102,935 | ||||||||||||
Currency | (110,422 | ) | $671,270 | — | 560,848 | |||||||||||
Credit | — | — | $(219,669 | ) | (219,669 | ) | ||||||||||
Equity | 878,287 | — | 876,766 | 1,755,053 | ||||||||||||
Total | $870,800 | $671,270 | $657,097 | $2,199,167 |
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 63 |
Table of Contents
|
Note 4 — Guarantees and indemnifications
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5 — Fees and transactions with affiliates
The Advisor serves as investment advisor for the fund. John Hancock Investment Management Distributors LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, principally owned subsidiaries of Manulife Financial Corporation.
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 1.000% of the first $500 million of the fund’s average daily net assets; (b) 0.950% of the next $500 million of the fund’s average daily net assets; (c) 0.900% of the next $500 million of the fund’s average daily net assets and (d) when average net assets exceed $1.5 billion on any day, the annual rate of advisory fee for that day is 0.900% on all net assets. The Advisor has a subadvisory agreement with the subadvisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor provides investment management and other services to the subsidiary. The Advisor does not receive separate compensation from the subsidiary for providing investment management or administrative services. However, the fund pays the Advisor based on the fund’s net assets, which include the assets of the subsidiary.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the period ended October 31, 2020, this waiver amounted to 0.01% of the fund’s average daily net assets, on an annualized basis. This arrangement expires on July 31, 2022, unless renewed by mutual agreement of the fund and the Advisor based upon a determination that this is appropriate under the circumstances at that time.
For the period ended October 31, 2020, the expense reductions described above amounted to the following:
Class | Expense reduction | |||
Class R6 | $3 | |||
Class NAV | 8,041 | |||
Total | $8,044 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the period ended October 31, 2020, were equivalent to a net annual effective rate of 0.99% of the fund’s average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, compliance, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred, for the period ended October 31, 2020, amounted to an annual rate of 0.02% of the fund’s average daily net assets.
64 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
Transfer agent fees. The John Hancock group of funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the period ended October 31, 2020 were as follows:
Class | Transfer agent fees | |||
Class R6 | $5 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 6 — Fund share transactions
Transactions in fund shares for the period ended October 31, 2020 were as follows:
Period ended 10-31-201 | ||||||||
Shares | Amount | |||||||
Class R6 shares | ||||||||
Sold | 5,000 | $50,000 | ||||||
Net increase | 5,000 | $50,000 | ||||||
Class NAV shares | ||||||||
Sold | 15,925,769 | $158,503,058 | ||||||
Distributions reinvested | 5,627 | 55,989 | ||||||
Repurchased | (1,012,860 | ) | (8,941,907 | ) | ||||
Net increase | 14,918,536 | $149,617,140 | ||||||
Total net increase | 14,923,536 | $149,667,140 |
1 Period from 12-18-19 (commencement of operations) to 10-31-20.
Affiliates of the fund owned 100% and 100% of shares of Class R6 and Class NAV, respectively, on October 31, 2020. Such concentration of shareholders’ capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 7 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $119,086,780 and $88,372,684, respectively, for the period ended October 31, 2020.
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 65 |
Table of Contents
|
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund’s net assets. At October 31, 2020, funds within the John Hancock group of funds complex held 100.0% of the fund’s net assets. The following fund(s) had an affiliate ownership of 5% or more of the fund’s net assets:
Fund | Affiliated Concentration | |||
John Hancock Funds II Multimanager Lifestyle Conservative Portfolio | 21.3% | |||
John Hancock Funds II Alternative Asset Allocation | 21.2% | |||
John Hancock Funds II Multimanager Lifestyle Moderate Portfolio | 20.5% | |||
John Hancock Funds II Multimanager 2025 Lifetime Portfolio | 6.9% | |||
John Hancock Funds II Multimanager 2030 Lifetime Portfolio | 6.8% | |||
John Hancock Funds II Multimanager 2035 Lifetime Portfolio | 5.2% |
Note 9 — LIBOR discontinuation risk
LIBOR (London Interbank Offered Rate) is a measure of the average interest rate at which major global banks can borrow from one another. Following allegations of rate manipulation and concerns regarding its thin liquidity, in July 2017, the U.K. Financial Conduct Authority, which regulates LIBOR, announced that it will stop encouraging banks to provide the quotations needed to sustain LIBOR after 2021. This event will likely cause LIBOR to cease to be published. Before then, it is expected that market participants will transition to the use of different reference or benchmark rates. However, although regulators have suggested alternative rates, there is currently no definitive information regarding the future utilization of LIBOR or of any replacement rate.
It is uncertain what impact the discontinuation of LIBOR will have on the use of LIBOR as a reference rate for securities in which the fund invests. It is expected that market participants will amend financial instruments referencing LIBOR to include fallback provisions and other measures that contemplate the discontinuation of LIBOR or other similar market disruption events, but neither the effect of the transition process nor the viability of such measures is known. In addition, there are obstacles to converting certain longer term securities and transactions to a new benchmark or benchmarks and the effectiveness of one alternative reference rate versus multiple alternative reference rates in new or existing financial instruments and products has not been determined. As market participants transition away from LIBOR, LIBOR’s usefulness may deteriorate, which could occur prior to the end of 2021. The transition process may lead to increased volatility and illiquidity in markets that currently rely on LIBOR to determine interest rates. LIBOR’s deterioration may adversely affect the liquidity and/or market value of securities that use LIBOR as a benchmark interest rate.
Note 10 — Coronavirus (COVID-19) pandemic
The novel COVID-19 disease has resulted in significant disruptions to global business activity. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect fund performance.
Note 11 — New accounting pronouncement
In March 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the LIBOR and other IBOR-based reference rates as of the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the potential impact of ASU 2020-04 to the financial statements.
66 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of John Hancock Investment Trust and Shareholders of John Hancock Alternative Risk Premia Fund
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated fund’s investments, of John Hancock Alternative Risk Premia Fund and its subsidiary (one of the funds constituting John Hancock Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2020, and the related consolidated statements of operations and changes in net assets, including the related notes, and the consolidated financial highlights for the period December 18, 2019 (commencement of operations) through October 31, 2020 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2020, and the results of its operations, changes in its net assets, and the financial highlights for the period December 18, 2019 (commencement of operations) through October 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of October 31, 2020 by correspondence with the custodian and brokers. We believe that our audit provides a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
December 16, 2020
We have served as the auditor of one or more investment companies in the John Hancock group of funds since 1988.
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 67 |
Table of Contents
|
For federal income tax purposes, the following information is furnished with respect to the distributions of the fund, if any, paid during its taxable year ended October 31, 2020.
The fund reports the maximum amount allowable of its net taxable income as eligible for the corporate dividends-received deduction.
The fund reports the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The fund reports the maximum amount allowable of its Section 199A dividends as defined in Proposed Treasury Regulation §1.199A-3(d).
Eligible shareholders will be mailed a 2020 Form 1099-DIV in early 2021. This will reflect the tax character of all distributions paid in calendar year 2020.
Please consult a tax advisor regarding the tax consequences of your investment in the fund.
68 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
Continuation of Investment Advisory and Subadvisory Agreements
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees
This section1 describes the evaluation by the Board of Trustees (the Board) of John Hancock Investment Trust (the Trust) of the Advisory Agreement (the Advisory Agreement) with John Hancock Investment Management LLC (the Advisor) and the Subadvisory Agreement (the Subadvisory Agreement) with Unigestion (UK) Limited (the Subadvisor), for John Hancock Alternative Risk Premia Fund (the fund). The Advisory Agreement and Subadvisory Agreement are collectively referred to as the Agreements. Prior to the June 23-25, 2020 telephonic2 meeting at which the Agreements were approved, the Board also discussed and considered information regarding the proposed continuation of the Agreements at a telephonic meeting held on May 26-27, 2020.
Approval of Advisory and Subadvisory Agreements
At a telephonic meeting held on June 23-25, 2020, the Board, including the Trustees who are not parties to any Agreement or considered to be interested persons of the Trust under the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Trustees), reapproved for an annual period the continuation of the Advisory Agreement between the Trust and the Advisor and the Subadvisory Agreement between the Advisor and the Subadvisor with respect to the fund.
In considering the Advisory Agreement and the Subadvisory Agreement, the Board received in advance of the meetings a variety of materials relating to the fund, the Advisor and the Subadvisor, including comparative performance information for a peer group of similar funds, performance information for an applicable benchmark index; and, with respect to the Subadvisor, comparative performance information for comparably managed accounts, as applicable, and other information provided by the Advisor and the Subadvisor regarding the nature, extent and quality of services provided by the Advisor and the Subadvisor under their respective Agreements, as well as information regarding the Advisor’s revenues and costs of providing services to the fund and any compensation paid to affiliates of the Advisor. The Board considered certain of this information when it initially considered the fund’s Agreements at its June 24-26, 2019 meeting. At the meetings at which the renewal of the Advisory Agreement and Subadvisory Agreement are considered, particular focus is given to information concerning fund performance, comparability of fees and total expenses, and profitability. However, the Board noted that the evaluation process with respect to the Advisor and the Subadvisor is an ongoing one. In this regard, the Board also took into account discussions with management and information provided to the Board (including its various committees) at prior meetings with respect to the services provided by the Advisor and the Subadvisor to the fund, including quarterly performance reports prepared by management containing reviews of investment results and prior presentations from the Subadvisor with respect to the fund. The information received and considered by the Board in connection with the May and June meetings and throughout the year was both written and oral. The Board also considered the nature, quality, and extent of non-advisory services, if any, to be provided to the fund by the Advisor’s affiliates, including distribution services. The Board considered the Advisory Agreement and the Subadvisory Agreement separately in the course of its review. In doing so, the Board noted the respective roles of the Advisor and Subadvisor in providing services to the fund.
1The fund invests in a wholly owned subsidiary of the fund organized as a company under the laws of the Cayman Islands, John Hancock Alternative Risk Premia Offshore Subsidiary Fund Ltd. (the “Cayman Subsidiary”). The Cayman Subsidiary has separate, equivalent agreements with the Advisor and Subadvisor. Neither the Advisor or the Subadvisor is entitled to additional compensation under its separate agreements with the Cayman Subsidiary.
2On March 25, 2020, as a result of health and safety measures put in place to combat the global COVID-19 pandemic, the Securities and Exchange Commission issued an exemptive order (the “Order”) pursuant to Sections 6(c) and 38(a) of the Investment Company Act of 1940, as amended (the “1940 Act”), that temporarily exempts registered investment management companies from the in-person voting requirements under the 1940 Act, subject to certain requirements, including that votes taken pursuant to the Order are ratified at the next in-person meeting. The Board determined that reliance on the Order was necessary or appropriate due to the circumstances related to current or potential effects of COVID-19 and therefore, the Board’s May and June meetings were held telephonically in reliance on the Order.
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 69 |
Table of Contents
|
Throughout the process, the Board asked questions of and requested additional information from management. The Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel throughout the process. The Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed continuation of the Agreements and discussed the proposed continuation of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.
Approval of Advisory Agreement
In approving the Advisory Agreement with respect to the fund, the Board, including the Independent Trustees, considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board’s conclusions may be based in part on its consideration of the advisory and subadvisory arrangements in prior years and on the Board’s ongoing regular review of fund performance and operations throughout the year.
Nature, extent, and quality of services. Among the information received by the Board from the Advisor relating to the nature, extent, and quality of services provided to the fund, the Board reviewed information provided by the Advisor relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Advisor’s compliance and regulatory history, including its Form ADV. The Board also noted that on a regular basis it receives and reviews information from the Trust’s Chief Compliance Officer (CCO) regarding the fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act. The Board observed that the scope of services provided by the Advisor, and of the undertakings required of the Advisor in connection with those services, including maintaining and monitoring its own and the fund’s compliance programs, risk management programs, liquidity management programs and cybersecurity programs, had expanded over time as a result of regulatory, market and other developments. The Board considered that the Advisor is responsible for the management of the day-to-day operations of the fund, including, but not limited to, general supervision of and coordination of the services provided by the Subadvisor, and is also responsible for monitoring and reviewing the activities of the Subadvisor and other third-party service providers. The Board also considered the significant risks assumed by the Advisor in connection with the services provided to the fund including entrepreneurial risk in sponsoring new funds and ongoing risks including investment, operational, enterprise, litigation, regulatory and compliance risks with respect to all funds.
In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees also took into account their knowledge of the Advisor’s management and the quality of the performance of the Advisor’s duties, through Board meetings, discussions and reports during the preceding year and through each Trustee’s experience as a Trustee of the Trust and of the other trusts in the John Hancock group of funds complex (the John Hancock Fund Complex).
In the course of their deliberations regarding the Advisory Agreement, the Board considered, among other things:
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
70 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
The Board concluded that the Advisor may reasonably be expected to continue to provide a high quality of services under the Advisory Agreement with respect to the fund.
Investment performance. In considering the fund’s performance, the Board noted that it reviews at its regularly scheduled meetings information about the fund’s performance results. In connection with the consideration of the Advisory Agreement, the Board:
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
The Board noted that because the fund recently commenced investment operations, it was not practicable to make meaningful performance comparisons to other funds. Nevertheless, the Board reviewed data provided by management and noted the fund’s performance since January 1, 2020, as well as the performance of the fund’s benchmark and peer group. The Board concluded that the fund’s performance is being monitored and reasonably addressed, where appropriate. The Board noted the relatively recent inception period of the fund.
Fees and expenses. The Board took into account management’s discussion of the fund’s expenses. The Board also took into account management’s discussion with respect to the overall management fee and the fees of the Subadvisor, including the amount of the advisory fee retained by the Advisor after payment of the subadvisory fee, in each case in light of the services rendered for those amounts and the risks undertaken by the Advisor. The Board also noted that the Advisor pays the subadvisory fee, and that such fees are negotiated at arm’s length with respect to the Subadvisor. In addition, the Board took into account that management had agreed to implement an overall fee waiver across the complex, including the fund, which is discussed further below. The Board also noted that, in addition, the Advisor is currently waiving fees and/or reimbursing expenses with respect to the fund and that the fund has breakpoints in its contractual management fee schedule that reduce management fees as assets increase. The Board reviewed information provided by the Advisor concerning the investment advisory fee charged by the Advisor or one of its advisory affiliates to other clients (including other funds in the John Hancock Fund Complex) having similar investment mandates, if any. The Board considered any differences between the Advisor’s and Subadvisor’s services to the fund and the services they provide to other comparable clients or funds. The Board concluded that the advisory fee paid with respect to the fund is reasonable in light of the nature, extent and quality of the services provided to the fund under the Advisory Agreement.
Profitability/Fall out benefits. In considering the costs of the services to be provided and the profits to be realized by the Advisor and its affiliates from the Advisor’s relationship with the Trust, the Board:
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 71 |
Table of Contents
|
(a) | reviewed financial information of the Advisor; |
(b) | received and reviewed profitability information with respect to the John Hancock Fund Complex; |
(c) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(d) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(e) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(f) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(g) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(h) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(i) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(j) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
Based upon its review, the Board concluded that the level of profitability, if any, of the Advisor and its affiliates from their relationship with the fund was reasonable and not excessive.
Economies of scale. In considering the extent to which economies of scale would be realized as the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders, the Board:
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
72 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
Approval of Subadvisory Agreement
In making its determination with respect to approval of the Subadvisory Agreement, the Board reviewed:
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third-party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
Nature, extent, and quality of services. With respect to the services provided by the Subadvisor, the Board received information provided to the Board by the Subadvisor, including the Subadvisor’s Form ADV, as well as took into account information presented throughout the past year. The Board considered the Subadvisor’s current level of staffing and its overall resources, as well as received information relating to the Subadvisor’s compensation program. The Board reviewed the Subadvisor’s history and investment experience, as well as information regarding the qualifications, background, and responsibilities of the Subadvisor’s investment and compliance personnel who provide services to the fund. The Board also considered, among other things, the Subadvisor’s compliance program and any disciplinary history. The Board also considered the Subadvisor’s risk assessment and monitoring process. The Board reviewed the Subadvisor’s regulatory history, including whether it was involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board noted that the Advisor conducts regular, periodic reviews of the Subadvisor and its operations, including regarding investment processes and organizational and staffing matters. The Board also noted that the Trust’s CCO and his staff conduct regular, periodic compliance reviews with the Subadvisor and present reports to the Independent Trustees regarding the same, which includes evaluating the regulatory compliance systems of the Subadvisor and procedures reasonably designed to assure compliance with the federal securities laws. The Board also took into account the financial condition of the Subadvisor.
The Board considered the Subadvisor’s investment process and philosophy. The Board took into account that the Subadvisor’s responsibilities include the development and maintenance of an investment program for the fund that is consistent with the fund’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also received information with respect to the Subadvisor’s brokerage policies and practices, including with respect to best execution and soft dollars.
Subadvisor compensation. In considering the cost of services to be provided by the Subadvisor and the profitability to the Subadvisor of its relationship with the fund, the Board noted that the fees under the Subadvisory Agreement are paid by the Advisor and not the fund.
The Board also relied on the ability of the Advisor to negotiate the Subadvisory Agreement with the Subadvisor, which is not affiliated with the Advisor, and the fees thereunder at arm’s length. As a result, the costs of the services to be provided and the profits to be realized by the Subadvisor from its relationship with the Trust were not a material factor in the Board’s consideration of the Subadvisory Agreement.
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 73 |
Table of Contents
|
The Board also received information regarding the nature and scope (including their significance to the Advisor and its affiliates and to the Subadvisor) of any material relationships with respect to the Subadvisor, which include arrangements in which the Subadvisor or its affiliates provide advisory, distribution, or management services in connection with financial products sponsored by the Advisor or its affiliates, and may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans. The Board also received information and took into account any other potential conflicts of interest the Advisor might have in connection with the Subadvisory Agreement.
In addition, the Board considered other potential indirect benefits that the Subadvisor and its affiliates may receive from the Subadvisor’s relationship with the fund, such as the opportunity to provide advisory services to additional funds in the John Hancock Fund Complex and reputational benefits.
Subadvisory fees. The Board considered that the fund pays an advisory fee to the Advisor and that, in turn, the Advisor pays a subadvisory fee to the Subadvisor. The Board also took into account the subadvisory fees paid by the Advisor to the Subadvisor with respect to the fund and compared them to fees charged by the Subadvisor to manage other subadvised portfolios and portfolios not subject to regulation under the 1940 Act, as applicable.
Subadvisor performance. As noted above, the Board considered the fund’s performance as compared to the fund’s peer group and the benchmark index and noted that the Board reviews information about the fund’s performance results at its regularly scheduled meetings. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Subadvisor. The Board was mindful of the Advisor’s focus on the Subadvisor’s performance. The Board also noted the Subadvisor’s long-term performance record for similar accounts, as applicable.
The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund is being monitored and reasonably addressed, where appropriate, and that the fund has a very limited performance history; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
* * *
Based on the Board’s evaluation of all factors that the Board deemed to be material, including those factors described above, the Board, including the Independent Trustees, concluded that renewal of the Advisory Agreement and the Subadvisory Agreement would be in the best interest of the fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Advisory Agreement and Subadvisory Agreement for an additional one-year period.
74 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the fund and execute policies formulated by the Trustees.
Independent Trustees
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Hassell H. McClellan, Born: 1945 | 2012 | 196 |
Trustee and Chairperson of the Board
Director/Trustee, Virtus Funds (since 2008); Director, The Barnes Group (since 2010); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex.
Charles L. Bardelis,2 Born: 1941 | 2012 | 196 |
Trustee
Director, Island Commuter Corp. (marine transport). Trustee, John Hancock Collateral Trust (since 2014), Trustee of various trusts within the John Hancock Fund Complex (since 1988).
James R. Boyle, Born: 1959 | 2015 | 196 |
Trustee
Chief Executive Officer, Foresters Financial (since 2018); Chairman and Chief Executive Officer, Zillion Group, Inc. (formerly HealthFleet, Inc.) (healthcare) (2014-2018); Executive Vice President and Chief Executive Officer, U.S. Life Insurance Division of Genworth Financial, Inc. (insurance) (January 2014–July 2014); Senior Executive Vice President, Manulife Financial, President and Chief Executive Officer, John Hancock (1999–2012); Chairman and Director, John Hancock Investment Management LLC, John Hancock Investment Management Distributors LLC, and John Hancock Variable Trust Advisers LLC (2005–2010). Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015).
Peter S. Burgess,2 Born: 1942 | 2012 | 196 |
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 (since 2004); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005).
William H. Cunningham, Born: 1944 | 1986 | 196 |
Trustee
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman (since 2009) and Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000); former Director, LIN Television (2009–2014). Trustee of various trusts within the John Hancock Fund Complex (since 1986).
Grace K. Fey, Born: 1946 | 2012 | 196 |
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).
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 75 |
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Deborah C. Jackson, Born: 1952 | 2008 | 196 |
Trustee
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Massachusetts Women’s Forum (since 2018); Board of Directors, National Association of Corporate Directors/New England (since 2015); 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).
James M. Oates,2 Born: 1946 | 2012 | 196 |
Trustee
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman and Director, Emerson Investment Management, Inc. (2000-2015); Independent Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2011); Director, Stifel Financial (since 1996); Director, Investor Financial Services Corporation (1995–2007); Director, Connecticut River Bancorp (1998-2014); Director/Trustee, Virtus Funds (since 1988). Trustee (since 2004) and Chairperson of the Board (2005-2016) of various trusts within the John Hancock Fund Complex.
Steven R. Pruchansky, Born: 1944 | 1994 | 196 |
Trustee and Vice Chairperson of the Board
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2014); Director and President, Greenscapes of Southwest Florida, Inc. (2000-2014); 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 | 196 |
Trustee
Director, Northern New England Energy Corporation (since 2017); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director, Audit Committee Chair and Compensation Committee Member, Planet Fitness (since 2016); Director, Citizen Cider, Inc. (high-end hard cider and hard seltzer company) (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015); Independent Financial Consultant, Frances Rathke Consulting (strategic and financial consulting services) (2001-2003); Chief Financial Officer and Secretary, Ben & Jerry’s Homemade, Inc. (1989-2000, including prior positions); Senior Manager, Coopers & Lybrand, LLC (independent public accounting firm) (1982-1989). Trustee of various trusts within the John Hancock Fund Complex (since 2020).
76 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
Independent Trustees (continued)
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Gregory A. Russo, Born: 1949 | 2009 | 196 |
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 Trust Principal occupation(s) and other directorships during past 5 years | | Trustee of the Trust since | 1 | | Number of John Hancock funds overseen by Trustee | | ||
Andrew G. Arnott, Born: 1971 | 2017 | 196 |
President and Non-Independent Trustee
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Executive Vice President, John Hancock Financial Services (since 2009, including prior positions); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017).
Marianne Harrison, Born: 1963 | 2018 | 196 |
Non-Independent Trustee
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); 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).
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 77 |
Table of Contents
|
Principal officers who are not Trustees | ||||
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years
| Officer
| |||
Charles A. Rizzo, Born: 1957 | 2007 | |||
Chief Financial Officer | ||||
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). |
| |||
Salvatore Schiavone, Born: 1965 | 2010 | |||
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 | |||
Chief Legal Officer and Secretary | ||||
Vice President and Deputy Chief Counsel, John Hancock Investments (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investments; Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2018); Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009). |
| |||
Trevor Swanberg, Born: 1979 | 2020 | |||
Chief Compliance Officer | ||||
Chief Compliance Officer, various trusts within the John Hancock Fund Complex, John Hancock Investment Management LLC, and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2018–2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, various trusts within the John Hancock Fund Complex (2016–2018); 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). |
|
The business address for all Trustees and Officers is 200 Berkeley Street, Boston, Massachusetts 02116-5023. |
The Statement of Additional Information of the fund includes additional information about members of the Board of Trustees of the Trust and is available without charge, upon request, by calling 800-225-5291. |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
* | Appointed as Independent Trustee effective as of September 15, 2020. |
78 | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | ANNUAL REPORT |
|
Table of Contents
|
Trustees
Hassell H. McClellan, Chairperson
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
James M. Oates*
Frances G. Rathke1,*
Gregory A. Russo
Officers
Andrew G. Arnott
President
Charles A. Rizzo
Chief Financial Officer
Salvatore Schiavone
Treasurer
Christopher (Kit) Sechler
Secretary and Chief Legal Officer
Trevor Swanberg2
Chief Compliance Officer
Investment advisor
John Hancock Investment Management LLC
Subadvisor
Unigestion (UK) Limited
Portfolio Managers
Olivier Blin
Joan Lee, CFA
Jérôme Teiletche
Principal distributor
John Hancock Investment Management Distributors LLC
Custodian
Citibank, N.A.
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP
* | Member of the Audit Committee |
† | Non-Independent Trustee |
1 | Appointed as Independent Trustee effective as of September 15, 2020 |
2 | Effective July 31, 2020 |
The fund’s proxy voting policies and procedures, as well as the fund proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) website at sec.gov or on our website.
All of the fund’s holdings as of the end of the third month of every fiscal quarter are filed with the SEC on Form N-PORT within 60 days of the end of the fiscal quarter. The fund’s Form N-PORT filings are available on our website and the SEC’s website, sec.gov.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | ||||
800-225-5291 | Regular mail: | Express mail: | ||
jhinvestments.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. | ||
P.O. Box 219909 | 430 W 7th Street | |||
Kansas City, MO 64121-9909 | Suite 219909 | |||
Kansas City, MO 64105-1407 | ||||
| ANNUAL REPORT | JOHN HANCOCK ALTERNATIVE RISK PREMIA FUND | 79 |
Table of Contents
Protect yourself by using eDelivery
|
Signing up for the electronic delivery of your statements and other financial publications is a great way to help protect your privacy. eDelivery provides you with secure, instant access to all of your statements in one convenient location.
BENEFITS OF EDELIVERY
◾ |
Added security: Password protection helps you safely retrieve documents online | |||
◾ |
Save time: Receive instant email notification once statements are available | |||
◾ |
Reduce clutter: View documents online to reduce the amount of paper for filing, shredding, or recycling | jhinvestments.com/login |
SIGN UP FOR EDELIVERY TODAY!
Direct shareholders
If you receive statements directly through John Hancock Investment Management and would like to participate in eDelivery, go to jhinvestments.com/login. To log in to your account, click on the “Log in” button on the page’s top right corner. In the “Access your investments account” area, go to the “Individual retirement or mutual fund account” section and select the option that applies to you. Please be aware that you may be required to provide your account number and certain personal account information.
You may revoke your consent at any time by simply visiting jhinvestments.com/login and following the instructions above. You may also revoke consent by calling 800-225-5291 or by writing to us at the following address: John Hancock Signature Services, P.O. Box 219909, Kansas City, MO 64121-9909. We reserve the right to deliver documents to you on paper at any time should the need arise.
Brokerage account shareholders
If you receive statements directly from your bank or broker and would like to participate in eDelivery, go to icsdelivery/live or contact your financial representative.
Not part of the shareholder report |
Table of Contents
Get your questions answered by using our shareholder resources
|
ONLINE
◾ |
Visit jhinvestments.com to access a range of resources for individual investors, from account details and fund information to forms and our latest insight on the markets and economy. | |
◾ |
Use our Fund Compare tool to compare thousands of funds and ETFs across dozens of risk and performance metrics—all powered by Morningstar. | |
◾ |
Visit our online Tax Center, where you’ll find helpful taxpayer resources all year long, including tax forms, planning guides, and other fund-specific information. | |
◾ |
Follow us on Facebook, Twitter, and LinkedIn to get the latest updates on the markets and what’s trending now. |
BY PHONE
Call our customer service representatives at 800-225-5291, Monday to Thursday, 8:00A.M. to 7:00P.M., and Friday, 8:00A.M. to 6:00P.M., Eastern time. We’re here to help!
Not part of the shareholder report |
Table of Contents
John Hancock family of funds
|
DOMESTIC EQUITY FUNDS
Blue Chip Growth
Classic Value
Disciplined Value
Disciplined Value Mid Cap
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Core
New Opportunities
Regional Bank
Small Cap Core
Small Cap Growth
Small Cap Value
U.S. Global Leaders Growth
U.S. Growth
GLOBAL AND INTERNATIONAL EQUITY FUNDS
Disciplined Value International
Emerging Markets
Emerging Markets Equity
Fundamental Global Franchise
Global Equity
Global Shareholder Yield
Global Thematic Opportunities
International Dynamic Growth
International Growth
International Small Company
INCOME FUNDS
Bond
California Tax-Free Income
Emerging Markets Debt
Floating Rate Income
Government Income
High Yield
High Yield Municipal Bond
Income
Investment Grade Bond
Money Market
Short Duration Bond
Short Duration Credit Opportunities
Strategic Income Opportunities
Tax-Free Bond
ALTERNATIVE AND SPECIALTY FUNDS
Absolute Return Currency
Alternative Asset Allocation
Alternative Risk Premia
Diversified Macro
Infrastructure
Multi-Asset Absolute Return
Real Estate Securities
Seaport Long/Short
A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investment Management at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
Table of Contents
|
ASSET ALLOCATION
Balanced
Multi-Asset High Income
Multi-Index Lifetime Portfolios
Multi-Index Preservation Portfolios
Multimanager Lifestyle Portfolios
Multimanager Lifetime Portfolios
Retirement Income 2040
EXCHANGE-TRADED FUNDS
John Hancock Multifactor Consumer Discretionary ETF
John Hancock Multifactor Consumer Staples ETF
John Hancock Multifactor Developed International ETF
John Hancock Multifactor Emerging Markets ETF
John Hancock Multifactor Energy ETF
John Hancock Multifactor Financials ETF
John Hancock Multifactor Healthcare ETF
John Hancock Multifactor Industrials ETF
John Hancock Multifactor Large Cap ETF
John Hancock Multifactor Materials ETF
John Hancock Multifactor Media and Communications ETF
John Hancock Multifactor Mid Cap ETF
John Hancock Multifactor Small Cap ETF
John Hancock Multifactor Technology ETF
John Hancock Multifactor Utilities ETF
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS
ESG All Cap Core
ESG Core Bond
ESG International Equity
ESG Large Cap Core
CLOSED-END FUNDS
Financial Opportunities
Hedged Equity & Income
Income Securities Trust
Investors Trust
Preferred Income
Preferred Income II
Preferred Income III
Premium Dividend
Tax-Advantaged Dividend Income
Tax-Advantaged Global Shareholder Yield
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP. Foreside is not affiliated with John Hancock Investment Management Distributors LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no representation as to the advisability of investing in, John Hancock Multifactor ETFs.
Table of Contents
John Hancock Investment Management
A trusted brand
John Hancock Investment Management is a premier asset manager with a heritage of financial stewardship dating back to 1862. Helping our shareholders pursue their financial goals is at the core of everything we do. It’s why we support the role of professional financial advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach: We search the world to find proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set of investments backed by some of the world’s best managers, along with strong risk-adjusted returns across asset classes.
|
John Hancock Investment Management Distributors LLC ∎ Member FINRA, SIPC
200 Berkeley Street ∎ Boston, MA 02116-5010 ∎ 800-225-5291 ∎ jhinvestments.com
This report is for the information of the shareholders of John Hancock Alternative Risk Premia Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.
MF1399305 | 47A 10/20 | |||
12/2020 |
Table of Contents
ITEM 2. | CODE OF ETHICS. |
As of the end of the period, October 31, 2020, 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 “Senior Financial Officers”). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Peter S. Burgess is the audit committee financial expert and is “independent”, pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
(a) Audit Fees
The aggregate fees billed for professional services rendered by the principal accountant for the audits of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to the following for the fiscal years ended October 31, 2020 and 2019. These fees were billed to the registrant and were approved by the registrant’s audit committee.
Fund | October 31, 2020 | October 31, 2019 | ||||||
John Hancock Seaport Long/Short Fund | $ | 110,407 | $ | 100,525 | ||||
John Hancock Balanced Fund | $ | 45,536 | $ | 41,751 | ||||
John Hancock Global Thematic Opportunities Fund | $ | 45,393 | $ | 46,285 | ||||
John Hancock Diversified Macro Fund | $ | 65,385 | $ | 56,028 | ||||
John Hancock Alternative Risk Premia Fund | $ | 133,414 | N/A | |||||
John Hancock Fundamental Large Cap Core Fund | $ | 40,115 | $ | 40,088 | ||||
John Hancock Disciplined Value International Fund | $ | 53,926 | $ | 54,376 | ||||
John Hancock ESG Large Cap Core Fund | $ | 42,972 | $ | 37,765 | ||||
John Hancock International Dynamic Growth Fund | $ | 45,393 | $ | 42,725 | ||||
John Hancock ESG International Equity Fund | $ | 53,696 | $ | 53,296 | ||||
John Hancock ESG All Cap Core Fund | $ | 35,963 | $ | 29,962 | ||||
John Hancock Emerging Markets Equity Fund | $ | 42,972 | $ | 40,876 |
(b) Audit-Related Services
Audit-related service fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser (“control affiliates”) that provides ongoing services to the registrant. The nature of the services provided was affiliated service provider internal controls reviews and merger related fees.
Fund | October 31, 2020 | October 31, 2019 | ||||||
John Hancock Seaport Long/Short Fund | $ | 604 | $ | 616 | ||||
John Hancock Balanced Fund | $ | 604 | $ | 616 | ||||
John Hancock Global Thematic Opportunities Fund | $ | 604 | $ | 616 | ||||
John Hancock Diversified Macro Fund | $ | 604 | $ | 612 | ||||
John Hancock Alternative Risk Premia Fund | $ | 604 | $ | 616 | ||||
John Hancock Fundamental Large Cap Core Fund | $ | 604 | $ | 616 | ||||
John Hancock Disciplined Value International Fund | $ | 10,334 | $ | 616 |
Table of Contents
John Hancock ESG Large Cap Core Fund | $ | 604 | $ | 616 | ||||
John Hancock International Dynamic Growth Fund | $ | 604 | $ | 616 | ||||
John Hancock ESG International Equity Fund | $ | 604 | $ | 616 | ||||
John Hancock ESG All Cap Core Fund | $ | 604 | $ | 616 | ||||
John Hancock Emerging Markets Equity Fund | $ | 604 | $ | 616 |
In addition, amounts billed to control affiliates for service provider internal controls reviews were $116,000 and $116,467 for the fiscal years ended October 31, 2020 and 2019, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning (“tax fees”) amounted to the following for the fiscal years ended October 31, 2020 and 2019. The nature of the services comprising the tax fees was the review of the registrant’s tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant’s audit committee.
Fund | October 31, 2020 | October 31, 2019 | ||||||
John Hancock Seaport Long/Short Fund | $ | 3,914 | $ | 3,914 | ||||
John Hancock Balanced Fund | $ | 3,837 | $ | 5,337 | ||||
John Hancock Global Thematic Opportunities Fund | $ | 4,403 | $ | 4,403 | ||||
John Hancock Diversified Macro Fund | $ | 8,837 | $ | 3,837 | ||||
John Hancock Alternative Risk Premia Fund | $ | 8,914 | N/A | |||||
John Hancock Fundamental Large Cap Core Fund | $ | 3,837 | $ | 5,337 | ||||
John Hancock Disciplined Value International Fund | $ | 5,653 | $ | 5,903 | ||||
John Hancock ESG Large Cap Core Fund | $ | 5,087 | $ | 3,837 | ||||
John Hancock International Dynamic Growth Fund | $ | 4,403 | $ | 4,403 | ||||
John Hancock ESG International Equity Fund | $ | 4,403 | $ | 4,403 | ||||
John Hancock ESG All Cap Core Fund | $ | 3,837 | $ | 3,837 | ||||
John Hancock Emerging Markets Equity Fund | $ | 3,837 | $ | 3,837 |
(d) All Other Fees
Other fees billed for professional services rendered by the principal accountant to the registrant or to the control affiliates for the fiscal years ended October 31, 2020 and 2019 amounted to the following:
Fund | October 31, 2020 | October 31, 2019 | ||||||
John Hancock Seaport Long/Short Fund | $ | 89 | $ | 84 | ||||
John Hancock Balanced Fund | $ | 89 | $ | 84 | ||||
John Hancock Global Thematic Opportunities Fund | $ | 89 | $ | 84 | ||||
John Hancock Diversified Macro Fund | $ | 89 | — | |||||
John Hancock Alternative Risk Premia Fund | $ | 89 | N/A | |||||
John Hancock Fundamental Large Cap Core Fund | $ | 89 | $ | 84 | ||||
John Hancock Disciplined Value International Fund | $ | 89 | $ | 84 | ||||
John Hancock ESG Large Cap Core Fund | $ | 89 | $ | 84 | ||||
John Hancock International Dynamic Growth Fund | $ | 89 | $ | 84 | ||||
John Hancock ESG International Equity Fund | $ | 89 | $ | 84 | ||||
John Hancock ESG All Cap Core Fund | $ | 89 | $ | 84 | ||||
John Hancock Emerging Markets Equity Fund | $ | 89 | $ | 84 |
Table of Contents
(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 October 31, 2020, 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 for non- audit services rendered to the registrant and rendered to the registrant’s control affiliates for the fiscal years ended October 31, 2020 and 2019 amounted to the following:
Trust | October 31, 2020 | October 31, 2019 | ||||||
John Hancock Investment Trust | $ | 1,179,805 | $ | 1,011,093 |
(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
Charles L. Bardelis
James M. Oates
Frances G. Rathke
Table of Contents
ITEM 6. | SCHEDULE OF INVESTMENTS. |
(a) | Not applicable. |
(b) | Not applicable. |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There were no material changes to previously disclosed John Hancock Funds – Nominating and Governance Committee Charter.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) Based upon their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant’s principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 13. | EXHIBITS. |
(a)(1) Code of Ethics for Senior Financial Officers is attached.
Table of Contents
Table of Contents
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 Investment Trust | ||
By: | /s/ Andrew Arnott | |
Andrew Arnott | ||
President | ||
Date: | December 17, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Andrew Arnott | |
Andrew Arnott | ||
President | ||
Date: | December 17, 2020 |
By: | /s/ Charles A. Rizzo | |
Charles A. Rizzo | ||
Chief Financial Officer | ||
Date: | December 17, 2020 |