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 811-1677 | |
John Hancock Capital Series | |
(Exact name of registrant as specified in charter) | |
601 Congress Street, Boston, Massachusetts 02210 | |
(Address of principal executive offices) (Zip code) | |
Salvatore Schiavone | |
Treasurer | |
601 Congress Street | |
Boston, Massachusetts 02210 | |
(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: | April 30, 2012 |
ITEM 1. SCHEDULE OF INVESTMENTS
A look at performance
Total returns for the period ended April 30, 2012
Average annual total returns (%) | Cumulative total returns (%) | ||||||||
with maximum sales charge | with maximum sales charge | ||||||||
Since | Since | ||||||||
1-year | 5-year | 10-year | inception 1 | 6-months | 1-year | 5-year | 10-year | inception 1 | |
Class A | 6.62 | 4.61 | 3.57 | — | 11.36 | 6.62 | 25.26 | 41.99 | — |
Class B | 6.36 | 4.56 | — | 3.46 | 11.75 | 6.36 | 24.95 | — | 40.30 |
Class C | 10.35 | 4.89 | — | 3.31 | 15.75 | 10.35 | 26.94 | — | 38.25 |
Class I2 | 12.68 | 6.16 | — | 4.54 | 17.42 | 12.68 | 34.81 | — | 55.46 |
Class R62,3 | 12.70 | 6.11 | 4.52 | — | 17.45 | 12.70 | 34.53 | 55.66 | — |
Performance figures assume all dividends have been reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The returns for Class C shares have been adjusted to reflect the elimination of the front-end sales charge effective 7-15-04. The Class B shares’ CDSC declines annually between years 1 to 6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charges are not applicable for Class I and Class R6 shares.
The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers 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. The fee waivers and expense limitations are contractual at least until 2-28-13 for Class R6 shares. Had the fee waivers and expense limitations not been in place gross expenses would apply. For all other classes the net expenses equal the gross expenses. The expense ratios are as follows:
Class A | Class B | Class C | Class I | Class R6* | ||
Net (%) | 1.26 | 2.01 | 2.01 | 0.93 | 0.85 | |
Gross (%) | 1.26 | 2.01 | 2.01 | 0.93 | 0.87 |
* Expenses have been estimated for the Class’s first full year of operations.
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, the Fund’s current performance may be higher or lower than the performance shown. For performance data current to the most recent month end, please call 1-800-225-5291 or visit the Fund’s Web site at www.jhfunds.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 expense reductions, without which the expenses would increase and results would have been less favorable.
6 U.S. Global Leaders Growth Fund | Semiannual report |
Without | With maximum | ||||
Start date | sales charge | sales charge | Index 1 | Index 2 | |
Class B4 | 5-20-02 | $14,030 | $14,030 | $15,600 | $16,356 |
Class C4 | 5-20-02 | 13,825 | 13,825 | 15,600 | 16,356 |
Class I2 | 5-20-02 | 15,546 | 15,546 | 15,600 | 16,356 |
Class R62 | 4-30-02 | 15,566 | 15,566 | 15,839 | 16,539 |
Performance of the classes will vary based on the differences in sales charges paid by the shareholders investing in the different classes and the fee structure of those classes.
The Class C shares investment with maximum sales charge has been adjusted to reflect the elimination of the front-end sales charge effective 7-15-04.
S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.
Russell 1000 Growth Index is an unmanaged index of companies in the Russell 1000 Index (the 1,000 largest U.S. publicly traded companies) with high price-to-book ratios and higher forecasted growth values.
It is not possible to invest directly in an index. Index figures do not reflect sales charges or direct expenses, which would have resulted in lower values if they did.
1 From 5-20-02.
2 For certain types of investors, as described in the Fund’s prospectuses.
3 The inception date of Class R6 is 9-1-11; performance prior to that date is that of Class A that has been recalculated to apply the estimated gross fees and expenses of Class R6 shares. Class R2 shares were first offered on 3-1-12. Because the class has limited operating history, performance is not shown.
4 No contingent deferred sales charge is applicable.
Semiannual report | U.S. Global Leaders Growth Fund 7 |
Your expenses
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 going to present only your ongoing operating expenses here.
Actual expenses/actual returns
This example 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 November 1, 2011 with the same investment held until April 30, 2012.
Account value | Ending value | Expenses paid during | |
on 11-1-11 | on 4-30-12 | period ended 4-30-121 | |
Class A | $1,000.00 | $1,172.20 | $7.02 |
Class B | 1,000.00 | 1,167.50 | 11.05 |
Class C | 1,000.00 | 1,167.50 | 11.05 |
Class I | 1,000.00 | 1,174.20 | 4.87 |
Class R6 | 1,000.00 | 1,174.50 | 4.60 |
For the class noted below, the example assumes an account value of $1,000.00 on March 1, 2012, with the same investment held until April 30, 2012.
Account value | Ending value | Expenses paid during | |
on 3-1-12 | on 4-30-12 | period ended 4-30-122 | |
Class R2 | $1,000.00 | $1,057.70 | $1.94 |
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 April 30, 2012, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
8 U.S. Global Leaders Growth Fund | Semiannual report |
Hypothetical example for comparison purposes
This table 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 Fund’s actual return). It assumes an account value of $1,000.00 on November 1, 2011, with the same investment held until April 30, 2012. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.
Account value | Ending value | Expenses paid during | |
on 11-1-11 | on 4-30-12 | period ended 4-30-123 | |
Class A | $1,000.00 | $1,018.40 | $6.52 |
Class B | 1,000.00 | 1,014.70 | 10.27 |
Class C | 1,000.00 | 1,014.70 | 10.27 |
Class I | 1,000.00 | 1,020.40 | 4.52 |
Class R2 | 1,000.00 | 1,019.20 | 5.67 |
Class R6 | 1,000.00 | 1,020.60 | 4.27 |
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.
1 Expenses are equal to the Fund’s annualized expense ratio of 1.30%, 2.05%, 2.05%, 0.90% and 0.85% for Class A, Class B, Class C, Class I and R6 shares, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
2 Expenses are equal to the Fund’s annualized expense ratio of 1.13% for Class R2 shares, multiplied by the average account value over the period, multiplied by 61/365 (to reflect the period).
3 Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
Semiannual report | U.S. Global Leaders Growth Fund 9 |
Portfolio summary
Top 10 Holdings (42.1% of Net Assets on 4-30-12)1,2 | ||||
Yum! Brands, Inc. | 5.3% | eBay, Inc. | 4.0% | |
Apple, Inc. | 4.7% | Schlumberger, Ltd. | 4.0% | |
Amazon.com, Inc. | 4.1% | Ecolab, Inc. | 4.0% | |
State Street Corp. | 4.1% | Colgate-Palmolive Company | 3.9% | |
The Coca-Cola Company | 4.1% | Monsanto Company | 3.9% | |
Sector Composition1,3 | ||||
Information Technology | 26.1% | Energy | 7.6% | |
Health Care | 17.5% | Financials | 6.2% | |
Consumer Discretionary | 14.2% | Industrials | 1.9% | |
Consumer Staples | 13.2% | Short-Term Investments & Other | 3.6% | |
Materials | 9.7% | |||
1 As a percentage of net assets on 4-30-12.
2 Cash and cash equivalents not included.
3 Sector investing is subject to greater risks than the market as a whole. Because the Fund may focus on particular sectors of the economy, its performance may depend on the performance of those sectors. The Fund is non-diver-sified, which allows it to make larger investments in individual companies. Non-diversified funds tend to be more volatile than diversified funds and the market as a whole.
10 U.S. Global Leaders Growth Fund | Semiannual report |
Fund’s investments
As of 4-30-12 (unaudited)
Shares | Value | |
Common Stocks 96.4% | $538,109,505 | |
(Cost $368,200,220) | ||
Consumer Discretionary 14.2% | 79,397,810 | |
Hotels, Restaurants & Leisure 10.1% | ||
Starbucks Corp. (L) | 182,570 | 10,475,867 |
Starwood Hotels & Resorts Worldwide, Inc. | 276,120 | 16,346,304 |
Yum! Brands, Inc. (L) | 404,420 | 29,413,467 |
Internet & Catalog Retail 4.1% | ||
Amazon.com, Inc. (I) | 99,880 | 23,162,172 |
Consumer Staples 13.2% | 73,723,210 | |
Beverages 6.9% | ||
Companhia de Bebidas das Americas, ADR (L) | 374,990 | 15,742,080 |
The Coca-Cola Company | 299,200 | 22,834,944 |
Food Products 2.4% | ||
Danone SA, ADR (L) | 949,270 | 13,346,736 |
Household Products 3.9% | ||
Colgate-Palmolive Company (L) | 220,330 | 21,799,450 |
Energy 7.6% | 42,565,604 | |
Energy Equipment & Services 7.6% | ||
National Oilwell Varco, Inc. | 270,230 | 20,472,625 |
Schlumberger, Ltd. | 297,990 | 22,092,979 |
Financials 6.2% | 34,744,621 | |
Capital Markets 4.1% | ||
State Street Corp. | 500,370 | 23,127,101 |
Consumer Finance 2.1% | ||
American Express Company | 192,950 | 11,617,520 |
Health Care 17.5% | 97,484,091 | |
Health Care Equipment & Supplies 4.8% | ||
DENTSPLY International, Inc. (L) | 259,280 | 10,646,037 |
Intuitive Surgical, Inc. (I) | 27,740 | 16,039,268 |
Health Care Technology 3.6% | ||
Cerner Corp. (I)(L) | 246,510 | 19,989,496 |
Pharmaceuticals 9.1% | ||
Mylan, Inc. (I) | 786,800 | 17,081,428 |
Novo Nordisk A/S, ADR | 120,600 | 17,730,612 |
Perrigo Company (L) | 152,500 | 15,997,250 |
See notes to financial statements | Semiannual report | U.S. Global Leaders Growth Fund 11 |
Industrials 1.9% | $10,398,236 | ||
Machinery 1.9% | |||
Joy Global, Inc. (L) | 146,930 | 10,398,236 | |
Information Technology 26.1% | 145,524,168 | ||
Communications Equipment 2.0% | |||
QUALCOMM, Inc. | 174,160 | 11,118,374 | |
Computers & Peripherals 4.7% | |||
Apple, Inc. (I) | 45,320 | 26,477,757 | |
Internet Software & Services 7.7% | |||
eBay, Inc. (I) | 547,770 | 22,485,959 | |
Google, Inc., Class A (I) | 33,720 | 20,408,356 | |
IT Services 6.9% | |||
Automatic Data Processing, Inc. | 388,490 | 21,607,814 | |
Visa, Inc., Class A | 135,100 | 16,614,598 | |
Software 4.8% | |||
Red Hat, Inc. (I) | 279,700 | 16,672,917 | |
SAP AG, ADR | 152,940 | 10,138,393 | |
Materials 9.7% | 54,271,765 | ||
Chemicals 9.7% | |||
Ecolab, Inc. (L) | 346,870 | 22,092,147 | |
Monsanto Company | 284,420 | 21,667,116 | |
Praxair, Inc. | 90,860 | 10,512,502 | |
Yield | Shares | Value | |
Securities Lending Collateral 8.3% | $46,082,755 | ||
(Cost $46,075,610) | |||
John Hancock Collateral Investment Trust (W) | 0.3316% (Y) | 4,604,454 | 46,082,755 |
Total investments (Cost $414,275,830)† 104.7% | $584,192,260 | ||
Other assets and liabilities, net (4.7%) | ($25,965,763) | ||
Total net assets 100.0% | $558,226,497 | ||
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the Fund.
ADR American Depositary Receipts
(I) Non-income producing security.
(L) A portion of this security is on loan as of 4-30-12.
(W) Investment is an affiliate of the Fund, the adviser and/or subadviser. Also, it represents the investment of securities lending collateral received.
(Y) The rate shown is the annualized seven-day yield as of 4-30-12.
† At 4-30-12, the aggregate cost of investment securities for federal income tax purposes was $420,611,780. Net unrealized appreciation aggregated $163,580,480, of which $165,635,261 related to appreciated investment securities and $2,054,781 related to depreciated investment securities.
12 U.S. Global Leaders Growth Fund | Semiannual report | See notes to financial statements |
F I N A N C I A L S T A T E M E N T S
Financial statements
Statement of assets and liabilities 4-30-12 (unaudited)
This Statement of assets and liabilities is the Fund’s balance sheet. It shows the value of what the Fund owns, is due and owes. You’ll also find the net asset value and the maximum offering price per share.
Assets | |
Investments in unaffiliated issuers, at value (Cost $368,200,220) including | |
$44,988,997 of securities loaned) | $538,109,505 |
Investments in affiliated issuers, at value (Cost $46,075,610) | 46,082,755 |
Total investments, at value (Cost $414,275,830) | 584,192,260 |
Cash | 17,204,328 |
Receivable for fund shares sold | 3,781,549 |
Dividends and interest receivable | 348,978 |
Receivable for securities lending income | 9,523 |
Other receivables and prepaid expenses | 165,398 |
Total assets | 605,702,036 |
Liabilities | |
Payable for fund shares repurchased | 722,049 |
Payable upon return of securities loaned | 46,039,808 |
Payable to affiliates | |
Accounting and legal services fees | 10,303 |
Transfer agent fees | 80,913 |
Distribution and service fees | 152,199 |
Trustees’ fees | 47,132 |
Management fees | 322,741 |
Other liabilities and accrued expenses | 100,394 |
Total liabilities | 47,475,539 |
Net assets | |
Paid-in capital | $377,039,328 |
Accumulated net investment loss | (444,058) |
Accumulated net realized gain on investments | 11,714,797 |
Net unrealized appreciation (depreciation) on investments | 169,916,430 |
Net assets | $558,226,497 |
See notes to financial statements | Semiannual report | U.S. Global Leaders Growth Fund 13 |
F I N A N C I A L S T A T E M E N T S
Statement of assets and liabilities (continued)
Net asset value per share | |
Based on net asset values and shares outstanding — the Fund has an | |
unlimited number of shares authorized with no par value | |
Class A ($361,874,651 ÷ 10,305,326 shares) | $35.12 |
Class B ($29,210,738 ÷ 897,342 shares)1 | $32.55 |
Class C ($69,999,518 ÷ 2,149,887 shares)1 | $32.56 |
Class I ($96,917,445 ÷ 2,658,336 shares) | $36.46 |
Class R2 ($105,784 ÷ 2,902 shares) | $36.45 |
Class R6 ($118,361 ÷ 3,245.7 shares) | $36.47 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $36.97 |
1 Redemption price 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 U.S. Global Leaders Growth Fund | Semiannual report | See notes to financial statements |
F I N A N C I A L S T A T E M E N T S
Statement of operations For the six-month period ended 4-30-12 (unaudited)
This Statement of operations summarizes the Fund’s investment income earned and expenses incurred in operating the Fund. It also shows net gains (losses) for the period stated.
Investment income | |
Dividends | $2,791,143 |
Securities lending | 124,252 |
Less foreign taxes withheld | (58,507) |
Total investment income | 2,856,888 |
Expenses | |
Investment management fees | 1,769,330 |
Distribution and service fees | 837,084 |
Accounting and legal services fees | 54,307 |
Transfer agent fees | 453,007 |
Trustees’ fees | 15,943 |
State registration fees | 39,233 |
Printing and postage | 29,964 |
Professional fees | 29,866 |
Custodian fees | 27,558 |
Registration and filing fees | 38,025 |
Other | 11,140 |
Total expenses | 3,305,457 |
Less expense reductions | (42,097) |
Net expenses | 3,263,360 |
Net investment loss | (406,472) |
Realized and unrealized gain | |
Net realized gain on | |
Investments in unaffiliated issuers | 18,034,377 |
Investments in affiliated issuers | 14,805 |
Capital gain distributions received from affiliated underlying funds | 2,583 |
18,051,765 | |
Change in net unrealized appreciation (depreciation) of | |
Investments in unaffiliated issuers | 60,022,978 |
Investments in affiliated issuers | (3,354) |
60,019,624 | |
Net realized and unrealized gain | 78,071,389 |
Increase in net assets from operations | $77,664,917 |
See notes to financial statements | Semiannual report | U.S. Global Leaders Growth Fund 15 |
F I N A N C I A L S T A T E M E N T S
Statements of changes in net assets
These Statements of changes in net assets show how the value of the Fund’s net assets has changed during the last two periods. The difference reflects earnings less expenses, any investment gains and losses, distributions, if any, paid to shareholders and the net of Fund share transactions.
Six months | ||
ended | Year | |
4-30-12 | ended | |
(Unaudited) | 10-31-11 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment loss | ($406,472) | ($524,202) |
Net realized gain | 18,051,765 | 52,197,115 |
Change in net unrealized appreciation (depreciation) | 60,019,624 | (8,589,051) |
Increase in net assets resulting from operations | 77,664,917 | 43,083,862 |
Distributions to shareholders | ||
From net realized gain | ||
Class A | (9,343,569) | — |
Class B | (894,644) | — |
Class C | (1,973,172) | — |
Class I | (1,730,469) | — |
Class R6 | (3,185) | — |
Total distributions | (13,945,039) | — |
From Fund share transactions | 72,423,608 | (21,884,218) |
Total increase | 136,143,486 | 21,199,644 |
Net assets | ||
Beginning of period | 422,083,011 | 400,883,367 |
End of period | $558,226,497 | $422,083,011 |
Accumulated net investment loss | ($444,058) | ($37,586) |
16 U.S. Global Leaders Growth Fund | Semiannual report | See notes to financial statements |
Financial highlights
The Financial highlights show how the Fund’s net asset value for a share has changed during the period.
CLASS A SHARES | |||||||
Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-09 | 10-31-082 | 12-31-07 | 12-31-06 |
Per share operating performance | |||||||
Net asset value, beginning | |||||||
of period | $30.97 | $27.83 | $23.89 | $20.87 | $28.80 | $28.85 | $28.44 |
Net investment income (loss)3 | (0.01) | —4 | —5 | 0.02 | 0.03 | 0.03 | —5 |
Net realized and unrealized | |||||||
gain (loss) on investments | 5.14 | 3.14 | 3.96 | 3.30 | (7.96) | 1.04 | 0.41 |
Total from | |||||||
investment operations | 5.13 | 3.14 | 3.96 | 3.32 | (7.93) | 1.07 | 0.41 |
Less distributions | |||||||
From net investment income | — | — | (0.02) | (0.01) | — | — | — |
From net realized gain | (0.98) | — | — | (0.29) | — | (1.12) | — |
Total distributions | (0.98) | — | (0.02) | (0.30) | — | (1.12) | — |
Net asset value, end | |||||||
of period | $35.12 | $30.97 | $27.83 | $23.89 | $20.87 | $28.80 | $28.85 |
Total return (%)6,7 | 17.228 | 11.28 | 16.58 | 16.36 | (27.53)8 | 3.67 | 1.44 |
Ratios and supplemental data | |||||||
Net assets, end of period | |||||||
(in millions) | $362 | $282 | $264 | $480 | $552 | $1,022 | $1,263 |
Ratios (as a percentage of | |||||||
average net assets): | |||||||
Expenses before reductions | 1.319 | 1.26 | 1.50 | 1.8110 | 1.389 | 1.32 | 1.32 |
Expenses net of fee waivers | 1.309 | 1.26 | 1.30 | 1.3410 | 1.309 | 1.27 | 1.28 |
Expenses net of fee waivers | |||||||
and credits | 1.309 | 1.26 | 1.30 | 1.3310 | 1.309 | 1.27 | 1.28 |
Net investment income (loss) | (0.09)9 | (0.01) | 0.01 | 0.10 | 0.139 | 0.10 | —11 |
Portfolio turnover (%) | 22 | 50 | 33 | 37 | 58 | 27 | 34 |
1 Six months ended 4-30-12. Unaudited.
2 For the ten-month period ended 10-31-08. The Fund changed its fiscal year end from December 31 to October 31.
3 Based on the average daily shares outstanding.
4 Less than ($0.005) per share.
5 Less than $0.005 per share.
6 Does not reflect the effect of sales charges, if any.
7 Total returns would have been lower had certain expenses not been reduced during the periods shown.
8 Not annualized.
9 Annualized.
10 Includes the impact of proxy expenses, which amounted to 0.03% of average net assets.
11 Less than 0.005%.
See notes to financial statements | Semiannual report | U.S. Global Leaders Growth Fund 17 |
CLASS B SHARES | |||||||
Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-09 | 10-31-082 | 12-31-07 | 12-31-06 |
Per share operating performance | |||||||
Net asset value, beginning | |||||||
of period | $28.89 | $26.16 | $22.60 | $19.90 | $27.64 | $27.94 | $27.75 |
Net investment loss3 | (0.12) | (0.21) | (0.19) | (0.13) | (0.13) | (0.18) | (0.20) |
Net realized and unrealized | |||||||
gain (loss) on investments | 4.76 | 2.94 | 3.75 | 3.12 | (7.61) | 1.00 | 0.39 |
Total from | |||||||
investment operations | 4.64 | 2.73 | 3.56 | 2.99 | (7.74) | 0.82 | 0.19 |
Less distributions | |||||||
From net realized gain | (0.98) | — | — | (0.29) | — | (1.12) | — |
Net asset value, end | |||||||
of period | $32.55 | $28.89 | $26.16 | $22.60 | $19.90 | $27.64 | $27.94 |
Total return (%)4,5 | 16.756 | 10.44 | 15.75 | 15.47 | (28.00)6 | 2.90 | 0.68 |
Ratios and supplemental data | |||||||
Net assets, end of period | |||||||
(in millions) | $29 | $27 | $39 | $47 | $56 | $107 | $151 |
Ratios (as a percentage of | |||||||
average net assets): | |||||||
Expenses before reductions | 2.067 | 2.01 | 2.24 | 2.508 | 2.137 | 2.07 | 2.07 |
Expenses net of fee waivers | 2.057 | 2.00 | 2.05 | 2.088 | 2.057 | 2.02 | 2.03 |
Expenses net of fee waivers | |||||||
and credits | 2.057 | 2.00 | 2.05 | 2.078 | 2.057 | 2.02 | 2.03 |
Net investment loss | (0.84)7 | (0.75) | (0.75) | (0.65) | (0.63)7 | (0.65) | (0.75) |
Portfolio turnover (%) | 22 | 50 | 33 | 37 | 58 | 27 | 34 |
1 Six months ended 4-30-12. Unaudited.
2 For the ten-month period ended 10-31-08. The Fund changed its fiscal year end from December 31 to October 31.
3 Based on the average daily shares outstanding.
4 Does not reflect the effect of sales charges, if any.
5 Total returns would have been lower had certain expenses not been reduced during the periods shown.
6 Not annualized.
7 Annualized.
8 Includes the impact of proxy expenses, which amounted to 0.03% of average net assets.
18 U.S. Global Leaders Growth Fund | Semiannual report | See notes to financial statements |
CLASS C SHARES | |||||||
Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-09 | 10-31-082 | 12-31-07 | 12-31-06 |
Per share operating performance | |||||||
Net asset value, beginning | |||||||
of period | $28.90 | $26.16 | $22.61 | $19.90 | $27.64 | $27.94 | $27.75 |
Net investment loss3 | (0.12) | (0.21) | (0.19) | (0.12) | (0.13) | (0.18) | (0.20) |
Net realized and unrealized | |||||||
gain (loss) on investments | 4.76 | 2.95 | 3.74 | 3.12 | (7.61) | 1.00 | 0.39 |
Total from | |||||||
investment operations | 4.64 | 2.74 | 3.55 | 3.00 | (7.74) | 0.82 | 0.19 |
Less distributions | |||||||
From net realized gain | (0.98) | — | — | (0.29) | — | (1.12) | — |
Net asset value, end | |||||||
of period | $32.56 | $28.90 | $26.16 | $22.61 | $19.90 | $27.64 | $27.94 |
Total return (%)4,5 | 16.756 | 10.47 | 15.70 | 15.53 | (28.00)6 | 2.90 | 0.68 |
Ratios and supplemental data | |||||||
Net assets, end of period | |||||||
(in millions) | $70 | $58 | $60 | $60 | $62 | $114 | $186 |
Ratios (as a percentage of | |||||||
average net assets): | |||||||
Expenses before reductions | 2.067 | 2.01 | 2.23 | 2.518 | 2.137 | 2.07 | 2.07 |
Expenses net of fee waivers | 2.057 | 2.01 | 2.05 | 2.088 | 2.057 | 2.02 | 2.03 |
Expenses net of fee waivers | |||||||
and credits | 2.057 | 2.01 | 2.05 | 2.078 | 2.057 | 2.02 | 2.03 |
Net investment loss | (0.84)7 | (0.75) | (0.76) | (0.66) | (0.63)7 | (0.65) | (0.75) |
Portfolio turnover (%) | 22 | 50 | 33 | 37 | 58 | 27 | 34 |
1 Six months ended 4-30-12. Unaudited.
2 For the ten-month period ended 10-31-08. The Fund changed its fiscal year end from December 31 to October 31.
3 Based on the average daily shares outstanding.
4 Does not reflect the effect of sales charges, if any.
5 Total returns would have been lower had certain expenses not been reduced during the periods shown.
6 Not annualized.
7 Annualized.
8 Includes the impact of proxy expenses, which amounted to 0.03% of average net assets.
See notes to financial statements | Semiannual report | U.S. Global Leaders Growth Fund 19 |
CLASS I SHARES | |||||||
Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-09 | 10-31-082 | 12-31-07 | 12-31-06 |
Per share operating performance | |||||||
Net asset value, beginning | |||||||
of period | $32.06 | $28.69 | $24.55 | $21.37 | $29.38 | $29.28 | $28.74 |
Net investment income3 | 0.05 | 0.12 | 0.11 | 0.13 | 0.13 | 0.16 | 0.12 |
Net realized and unrealized gain | |||||||
(loss) on investments | 5.33 | 3.25 | 4.10 | 3.38 | (8.14) | 1.06 | 0.42 |
Total from | |||||||
investment operations | 5.38 | 3.37 | 4.21 | 3.51 | (8.01) | 1.22 | 0.54 |
Less distributions | |||||||
From net investment income | — | — | (0.07) | (0.04) | — | — | — |
From net realized gain | (0.98) | — | — | (0.29) | — | (1.12) | — |
Total distributions | (0.98) | — | (0.07) | (0.33) | — | (1.12) | — |
Net asset value, end | |||||||
of period | $36.46 | $32.06 | $28.69 | $24.55 | $21.37 | $29.38 | $29.28 |
Total return (%)4 | 17.425 | 11.75 | 17.15 | 16.94 | (27.26)5 | 4.13 | 1.88 |
Ratios and supplemental data | |||||||
Net assets, end of period | |||||||
(in millions) | $97 | $55 | $37 | $26 | $51 | $7 | $18 |
Ratios (as a percentage of | |||||||
average net assets): | |||||||
Expenses before reductions | 0.966 | 0.90 | 0.93 | 0.967 | 0.896 | 0.88 | 0.87 |
Expenses net of fee waivers | |||||||
and credits | 0.906 | 0.85 | 0.85 | 0.847 | 0.856 | 0.84 | 0.84 |
Net investment income | 0.326 | 0.39 | 0.43 | 0.60 | 0.606 | 0.54 | 0.43 |
Portfolio turnover (%) | 22 | 50 | 33 | 37 | 58 | 27 | 34 |
1 Six months ended 4-30-12. Unaudited.
2 For the ten-month period ended 10-31-08. The Fund changed its fiscal year end from December 31 to October 31.
3 Based on the average daily shares outstanding.
4 Total returns would have been lower had certain expenses not been reduced during the periods shown.
5 Not annualized.
6 Annualized.
7 Includes the impact of proxy expenses, which amounted to 0.03% of average net assets.
CLASS R2 SHARES Period ended | 4-30-121 | ||||||
Per share operating performance | |||||||
Net asset value, beginning of period | $34.46 | ||||||
Net investment income2 | 0.03 | ||||||
Net realized and unrealized gain on investments | 1.96 | ||||||
Total from investment operations | 1.99 | ||||||
Net asset value, end of period | $36.45 | ||||||
Total return (%) | 5.773 | ||||||
Ratios and supplemental data | |||||||
Net assets, end of period ended (in millions) | —4 | ||||||
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.135 | ||||||
Expenses net of fee waivers and credits | 1.135 | ||||||
Net investment income | 0.555 | ||||||
Portfolio turnover (%) | 226 | ||||||
1 Period from 3-1-12 (inception date) to 4-30-12. Unaudited.
2 Based on the average daily shares outstanding.
3 Not annualized.
4 Less than $500,000.
5 Annualized.
6 Portfolio turnover is shown for the period from 11-1-11 to 4-30-12.
20 U.S. Global Leaders Growth Fund | Semiannual report | See notes to financial statements |
CLASS R6 SHARES Period ended | 4-30-121 | 10-31-112 |
Per share operating performance | ||
Net asset value, beginning of period | $32.06 | $30.81 |
Net investment income3 | 0.06 | 0.03 |
Net realized and unrealized gain on investments | 5.33 | 1.22 |
Total from investment operations | 5.39 | 1.25 |
Less distributions | ||
From net realized gain | (0.98) | — |
Net asset value, end of period | $36.47 | $32.06 |
Total return (%)4 | 17.455 | 4.065 |
Ratios and supplemental data | ||
Net assets, end of period (in millions) | —6 | —6 |
Ratios (as a percentage of average net assets): | ||
Expenses before reductions | 0.897 | 0.887 |
Expenses net of fee waivers and credits | 0.857 | 0.857 |
Net investment income | 0.367 | 0.667 |
Portfolio turnover (%) | 22 | 508 |
1 Six months ended 4-30-12. Unaudited.
2 Period from 9-1-11 (inception date) to 10-31-11.
3 Based on the average daily shares outstanding.
4 Total returns would have been lower had certain expenses not been reduced during the periods shown.
5 Not annualized.
6 Less than $500,000.
7 Annualized.
8 Portfolio turnover is shown for the period from 11-1-10 to 10-31-11.
See notes to financial statements | Semiannual report | U.S. Global Leaders Growth Fund 21 |
Notes to financial statements
(unaudited)
Note 1 — Organization
John Hancock U.S. Global Leaders Growth Fund (the Fund) is a series of John Hancock Capital Series (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 growth of capital.
The Fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of assets and liabilities. Class A, Class B and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R2 shares are available only to certain retirement plans. Class R6 shares are available only 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. Class B shares convert to Class A shares eight years after purchase. Certain class I shares may be exchanged for Class R6 shares within one year after the commencement of operations of Class R6 shares.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. 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 close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. 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. Level 2 includes securities valued using 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, 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.
As of April 30, 2012, all investments are categorized as Level 1 under the hierarchy described above. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. During the six months ended April 30, 2012 there were no significant transfers into or out of Level 1, Level 2 or Level 3.
In order to value the securities, the Fund uses the following valuation techniques. Equity securities held by the Fund are valued at the last sale price or official closing price on the principal securities exchange on which they trade. In the event there were no sales during the day or closing prices are not available, then securities are valued using the last quoted bid or evaluated price. Investments by the Fund in open-end mutual funds, including John Hancock Collateral Investment Trust (JHCIT),
22 U.S. Global Leaders Growth Fund | Semiannual report |
are valued at their respective net asset values each business day. Certain securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Certain short-term securities are valued at amortized cost. Other portfolio securities and assets, where 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.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily net asset value 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 foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income is recorded when the Fund becomes aware of the dividends. 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. It receives cash collateral from the borrower in an amount not less than the market value of the loaned securities. The Fund will invest its collateral in JHCIT, an affiliate of the Fund, and as a result, the Fund will receive the benefit of any gains and bear any losses generated by JHCIT. Although risk of the loss of the securities lent is mitigated by holding the collateral, the Fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities or if collateral investments decline in value. The Fund may receive 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. Net income received from JHCIT is a component of securities lending income as recorded on the Statement of operations.
Line of credit. The Fund may borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the 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 maximum extent permitted by law, to the extent of any overdraft.
In addition, the Fund and other affiliated funds have entered into an agreement with Citibank N.A. which enables them to participate in a $100 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 on a pro rata basis and is reflected in other expenses on the Statement of operations. For the six months ended April 30, 2012, the Fund had no borrowings under the line of credit.
Expenses. Within the John Hancock 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, are calculated daily for each class, based on the net asset value of the class and the applicable specific expense rates.
Semiannual report | U.S. Global Leaders Growth Fund 23 |
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, 2011, 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 and capital gain distributions, if any, annually.
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.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America.
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 sales loss deferrals and net operating losses.
New accounting pronouncement. In May 2011, Accounting Standards Update 2011-04 (ASU 2011-04), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, was issued and is effective during interim and annual periods beginning after December 15, 2011. ASU 2011-04 may result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
Note 3 — Guarantees and indemnifications
Under the Fund’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to 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 Advisers, LLC (the Adviser) serves as investment adviser for the Fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Adviser, serves as principal underwriter of the Fund. The Adviser and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The Fund has an investment management agreement with the Adviser under which the Fund pays a monthly management fee to the Adviser equivalent, on an annual basis, to the sum of: (a) 0.75% of the first $2,000,000,000 of the Fund’s average daily net assets; (b) 0.70% of the next $3,000,000,000 of the Fund’s average daily net assets; and (c) 0.65% of the Fund’s average daily net assets in excess of $5,000,000,000. The Adviser has a subadvisory agreement with Sustainable Growth Advisers, LP. The Fund is not responsible for payment of the subadvisory fees.
24 U.S. Global Leaders Growth Fund | Semiannual report |
The Adviser has contractually agreed to waive all or a portion of its management fee and/or reimburse or pay operating expenses of the Fund to the extent necessary to maintain the Fund’s total operating expenses at 1.30%, 2.05%, 2.05%, 0.99%, 1.40% and 0.85% for Class A, Class B, Class C, Class I, Class R2 and Class R6 shares, respectively, excluding certain expenses such as taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses. These expense limitations shall remain in effect until February 28, 2013 for all classes. Prior to March 1, 2012, the contractual waiver was 0.85% for Class I. For the six months ended April 30, 2012, the expense reductions related to the above agreements amounted to:
CLASS | EXPENSE REDUCTIONS | ||
Class A | $16,864 | ||
Class B | 1,281 | ||
Class C | 3,138 | ||
Class I | 20,794 | ||
Class R2 | — | ||
Class R6 | 20 | ||
Total | $42,097 |
The investment management fees, including the impact of the waivers and reimbursements described above, incurred for the six months ended April 30, 2012 were equivalent to a net annual effective rate of 0.73% of the Fund’s average daily net assets.
Accounting and legal services. Pursuant to the Accounting and Legal Services Agreement the Fund reimburses the Adviser for all expenses associated with providing the administrative, financial, legal, 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 six months ended April 30, 2012 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 with respect to Class A, Class B, Class C and Class R2 shares 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 Class R2, 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 | 12b–1 FEES | SERVICE FEES | ||
Class A | 0.25% | — | ||
Class B | 1.00% | — | ||
Class C | 1.00% | — | ||
Class R2 | 0.25% | 0.25% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $221,583 for the six months ended April 30, 2012. Of this amount, $35,770 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $174,957 was paid as sales commissions to broker-dealers and $10,856 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Adviser.
Semiannual report | U.S. Global Leaders Growth Fund 25 |
Class B and Class C shares are subject to contingent deferred sales charges (CDSCs). Class B shares that are redeemed within six years of purchase are subject to CDSCs, at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC on 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 six months ended April 30, 2012, CDSCs received by the Distributor amounted to $39,710 and $5,283 for Class B and Class C shares, respectively.
Transfer agent fees. The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Adviser. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. The Signature Services Cost includes a component of allocated John Hancock corporate overhead for providing transfer agent services to the Fund and to all other John Hancock affiliated funds. It also includes out-of-pocket expenses that are comprised of 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 four categories of share classes: Institutional Share Classes, Retirement Share Classes, Municipal Bond Classes and all other Retail 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 six months ended April 30, 2012 were:
DISTRIBUTION AND | TRANSFER | |||
CLASS | SERVICE FEES | AGENT FEES | ||
Class A | $391,409 | $323,621 | ||
Class B | 137,066 | 28,323 | ||
Class C | 308,567 | 63,778 | ||
Class I | — | 37,261 | ||
Class R2 | 42 | 6 | ||
Class R6 | — | 18 | ||
Total | $837,084 | $453,007 |
Trustee expenses. The Fund compensates each Trustee who is not an employee of the Adviser or its affiliates. These Trustees may, for tax purposes, elect to defer receipt of this compensation under the John Hancock Group of Funds Deferred Compensation Plan (the Plan). Deferred amounts are invested in various John Hancock funds and remain in the funds until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting liability are included within Other receivables and prepaid expenses and Payable to affiliates — Trustees’ fees, respectively, in the accompanying Statement of assets and liabilities.
26 U.S. Global Leaders Growth Fund | Semiannual report |
Note 5 — Fund share transactions
Transactions in Fund shares for the six months ended April 30, 2012 and for the year ended October 31, 2011 were as follows:
Six months ended 4-30-12 | Year ended 10-31-11 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,829,012 | $58,570,786 | 1,898,310 | $57,679,238 |
Distributions reinvested | 292,135 | 8,504,056 | — | — |
Repurchased | (906,053) | (29,117,584) | (2,309,415) | (70,508,445) |
Net increase (decrease) | 1,215,094 | $37,957,258 | (411,105) | ($12,829,207) |
Class B shares | ||||
Sold | 129,150 | $3,880,026 | 128,128 | $3,660,030 |
Distributions reinvested | 29,481 | 797,768 | — | — |
Repurchased | (200,977) | (6,015,507) | (692,566) | (19,730,295) |
Net decrease | (42,346) | ($1,337,713) | (564,438) | ($16,070,265) |
Class C shares | ||||
Sold | 297,739 | $8,874,015 | 226,787 | $6,402,274 |
Distributions reinvested | 51,562 | 1,395,797 | — | — |
Repurchased | (211,834) | (6,289,955) | (502,501) | (14,261,292) |
Net increase (decrease) | 137,467 | $3,979,857 | (275,714) | ($7,859,018) |
Class I shares | ||||
Sold | 1,237,167 | $41,923,220 | 1,330,217 | $42,412,603 |
Distributions reinvested | 45,980 | 1,387,666 | — | — |
Repurchased | (344,147) | (11,586,680) | (908,501) | (27,638,331) |
Net increase | 939,000 | $31,724,206 | 421,716 | $14,774,272 |
Class R2 shares1 | ||||
Sold | 2,902 | $100,000 | — | — |
Net increase | 2,902 | $100,000 | — | — |
Class R6 shares2 | ||||
Sold | — | — | 3,246 | $100,000 |
Net increase | — | — | 3,246 | $100,000 |
Net increase (decrease) | 2,252,117 | $72,423,608 | (826,295) | ($21,884,218) |
1 Period from 3-1-12 (inception date) to 4-30-12.
2 Period from 9-1-11 (inception date) to 10-31-11.
Affiliates of the Fund owned 100% of shares of beneficial interest of Class R2 and Class R6 on April 30, 2012.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term securities, aggregated $158,606,814 and $102,132,727, respectively, for the six months ended April 30, 2012.
Semiannual report | U.S. Global Leaders Growth Fund 27 |
More information
Trustees | Investment adviser |
Steven R. Pruchansky, Chairman | John Hancock Advisers, LLC |
William H. Cunningham | |
Deborah C. Jackson | Subadviser |
Stanley Martin* | Sustainable Growth Advisers, LP |
Hugh McHaffie† | |
Dr. John A. Moore,* Vice Chairman | Principal distributor |
Patti McGill Peterson* | John Hancock Funds, LLC |
Gregory A. Russo | |
John G. Vrysen† | Custodian |
State Street Bank and Trust Company | |
Officers | |
Keith F. Hartstein | Transfer agent |
President and Chief Executive Officer | John Hancock Signature Services, Inc. |
Andrew G. Arnott | Legal counsel |
Senior Vice President and Chief Operating Officer | K&L Gates LLP |
Thomas M. Kinzler | |
Secretary and Chief Legal Officer | |
Francis V. Knox, Jr. | |
Chief Compliance Officer | |
Charles A. Rizzo | |
Chief Financial Officer | |
Salvatore Schiavone | |
Treasurer | |
*Member of the Audit Committee | |
†Non-Independent Trustee |
The Fund’s proxy voting policies and procedures, as well as the Fund’s proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) Web site at www.sec.gov or on our Web site.
The Fund’s complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form N-Q. The Fund’s Form N-Q is available on our Web site and the SEC’s Web site, www.sec.gov, and can be reviewed and copied (for a fee) at the SEC’s Public Reference Room in Washington, DC. Call 1-202-551-8090 to receive information on the operation of the SEC’s Public Reference Room.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our Web site at www.jhfunds.com or by calling 1-800-225-5291.
You can also contact us: | ||
1-800-225-5291 | Regular mail: | Express mail: |
jhfunds.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. |
P.O. Box 55913 | Mutual Fund Image Operations | |
Boston, MA 02205-5913 | 30 Dan Road | |
Canton, MA 02021 |
28 U.S. Global Leaders Growth Fund | Semiannual report |
1-800-225-5291
1-800-554-6713 TDD
1-800-338-8080 EASI-Line
www.jhfunds.com
Now available: electronic delivery
www.jhfunds.com/edelivery
This report is for the information of the shareholders of John Hancock U.S. Global Leaders Growth Fund. | 26SA 4/12 |
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | 6/12 |
A look at performance
Total returns for the period ended April 30, 2012
Average annual total returns (%) | Cumulative total returns (%) | ||||||||
with maximum sales charge | with maximum sales charge | ||||||||
Since | Since | ||||||||
1-year | 5-year | 10-year | inception1 | 6-months | 1-year | 5-year | 10-year | inception1 | |
Class A2 | –7.55 | –7.16 | 2.09 | — | 5.35 | –7.55 | –31.04 | 22.95 | — |
Class B | –8.25 | –7.23 | — | 4.49 | 5.45 | –8.25 | –31.30 | — | 51.54 |
Class C | –4.40 | –6.92 | — | 4.36 | 9.39 | –4.40 | –30.12 | — | 49.81 |
Class I3 | –2.36 | –5.86 | — | 5.56 | 11.01 | –2.36 | –26.05 | — | 66.91 |
Class R13,4 | –3.03 | –6.51 | 2.28 | — | 10.66 | –3.03 | –28.58 | 25.29 | — |
Class R33,4 | –2.85 | –6.49 | 2.28 | — | 10.76 | –2.85 | –28.50 | 25.24 | — |
Class R43,4 | –2.56 | –6.20 | 2.59 | — | 10.99 | –2.56 | –27.38 | 29.11 | — |
Class R53,4 | –2.34 | –5.94 | 2.88 | — | 11.01 | –2.34 | –26.37 | 32.88 | — |
Class R63,4 | –2.30 | –5.82 | 3.02 | — | 11.10 | –2.30 | –25.90 | 34.59 | — |
Performance figures assume all dividends have been reinvested. Figures reflect maximum sales charges on Class A shares of 5% and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The returns for Class C shares have been adjusted to reflect the elimination of the front-end sales charge effective 7-15-04. The Class B shares’ CDSC declines annually between years 1 to 6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charges are not applicable for Class I, Class R1, Class R3, Class R4, Class R5 and Class R6 shares.
The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers 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. For all classes the net expenses equal the gross expenses. The expense ratios are as follows:
Class A | Class B | Class C | Class I | Class R1 | Class R3 | Class R4 | Class R5 | Class R6* | |
Net/Gross (%) | 1.30 | 2.05 | 2.05 | 0.97 | 1.64 | 1.48 | 1.15 | 0.90 | 0.91 |
* Expenses have been estimated for the class’s first full year of operations.
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, the Fund’s current performance may be higher or lower than the performance shown. For performance data current to the most recent month end, please call 1-800-225-5291 or visit the Fund’s Web site at www.jhfunds.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 expense reductions, without which the expenses would increase and results would have been less favorable.
6 Classic Value Fund | Semiannual report |
Without | With maximum | |||
Start date | sales charge | sales charge | Index | |
Class B5 | 11-11-02 | $15,154 | $15,154 | $19,661 |
Class C5 | 11-11-02 | 14,981 | 14,981 | 19,661 |
Class I3 | 11-11-02 | 16,691 | 16,691 | 19,661 |
Class R13,4 | 4-30-02 | 12,529 | 12,529 | 16,032 |
Class R33,4 | 4-30-02 | 12,524 | 12,524 | 16,032 |
Class R43,4 | 4-30-02 | 12,911 | 12,911 | 16,032 |
Class R53,4 | 4-30-02 | 13,288 | 13,288 | 16,032 |
Class R63,4 | 4-30-02 | 13,459 | 13,459 | 16,032 |
Performance of the classes will vary based on the differences in sales charges paid by the shareholders investing in the different classes and the fee structure of those classes.
The Class C shares investment with a maximum sales charge has been adjusted to reflect the elimination of the front-end sales charge effective 7-15-04.
Class R2 shares were first offered on 3-1-12. Because the class has limited operating history, performance is not shown.
Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation.
It is not possible to invest directly in an index. Index figures do not reflect sales charges or direct expenses, which would have resulted in lower values if they did.
1 From 11-11-02.
2 Effective 11-8-02, shareholders of the former Pzena Focused Value Fund became owners of that number of full and fractional shares of John Hancock Classic Value Fund. Additionally, the accounting and performance history of the former Pzena Focused Value Fund was redesignated as that of Class A of John Hancock Classic Value Fund. The performance of the former Pzena Focused Value Fund reflects stocks selected from the largest 1,000 publicly traded U.S. companies, whereas the Fund invests in stocks selected from the 500 largest such companies.
3 For certain types of investors, as described in the Fund’s prospectuses.
4 6-24-96 is the inception date for the oldest class of shares, Class A shares. The inception date for Class R1 shares is 8-5-03 and the inception date for Class R3, Class R4 and Class R5 shares is 5-22-09. The inception date for Class R6 shares is 9-1-11. The returns prior to these dates are those of Class A shares that have been recalculated to apply the gross fees and expenses of Class R1, Class R3, Class R4 and Class R5 shares, respectively, and the estimated gross fees and expenses of Class R6 shares.
5 No contingent deferred sales charge is applicable.
Semiannual report | Classic Value Fund 7 |
Your expenses
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 going to present only your ongoing operating expenses here.
Actual expenses/actual returns
This example 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 November 1, 2011 with the same investment held until April 30, 2012.
Account value | Ending value | Expenses paid during | |
on 11-1-11 | on 4-30-12 | period ended 4-30-121 | |
Class A | $1,000.00 | $1,108.70 | $6.87 |
Class B | 1,000.00 | 1,104.50 | 10.78 |
Class C | 1,000.00 | 1,103.90 | 10.78 |
Class I | 1,000.00 | 1,110.10 | 4.93 |
Class R1 | 1,000.00 | 1,106.60 | 8.59 |
Class R3 | 1,000.00 | 1,107.60 | 7.65 |
Class R4 | 1,000.00 | 1,109.90 | 5.93 |
Class R5 | 1,000.00 | 1,110.10 | 4.67 |
Class R6 | 1,000.00 | 1,111.00 | 4.67 |
For the class noted below, the example assumes an account value of $1,000.00 on March 1, 2012, with the same investment held until April 30, 2012.
Account value | Ending value | Expenses paid during | |
on 3-1-12 | on 4-30-12 | period ended 4-30-122 | |
Class R2 | $1,000.00 | $1,019.90 | $1.89 |
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 April 30, 2012, by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
8 Classic Value Fund | Semiannual report |
Hypothetical example for comparison purposes
This table 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 Fund’s actual return). It assumes an account value of $1,000.00 on November 1, 2011, with the same investment held until April 30, 2012. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.
Account value | Ending value | Expenses paid during | |
on 11-1-11 | on 4-30-12 | period ended 4-30-123 | |
Class A | $1,000.00 | $1,018.30 | $6.57 |
Class B | 1,000.00 | 1,014.60 | 10.32 |
Class C | 1,000.00 | 1,014.60 | 10.32 |
Class I | 1,000.00 | 1,020.20 | 4.72 |
Class R1 | 1,000.00 | 1,016.70 | 8.22 |
Class R2 | 1,000.00 | 1,019.30 | 5.62 |
Class R3 | 1,000.00 | 1,017.60 | 7.32 |
Class R4 | 1,000.00 | 1,019.20 | 5.67 |
Class R5 | 1,000.00 | 1,020.40 | 4.47 |
Class R6 | 1,000.00 | 1,020.40 | 4.47 |
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.
1 Expenses are equal to the Fund’s annualized expense ratio of 1.31%, 2.06%, 2.06%, 0.94%, 1.64%, 1.46%, 1.13%, 0.89% and 0.89% for Class A, Class B, Class C, Class I, Class R1, Class R3, Class R4, Class R5 and Class R6 shares, respectively, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
2 Expenses are equal to the Fund’s annualized expense ratio of 1.12% for Class R2 shares, respectively, multiplied by the average account value over the period, multiplied by 61/365 (to reflect the period).
3 Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182/366 (to reflect the period).
Semiannual report | Classic Value Fund 9 |
Portfolio summary
Top 10 Holdings (38.9% of Net Assets on 4-30-12)1,2 | ||||
Hewlett-Packard Company | 5.2% | BP PLC, ADR | 3.5% | |
Staples, Inc. | 4.7% | Northrop Grumman Corp. | 3.3% | |
Royal Dutch Shell PLC, ADR | 4.5% | Exxon Mobil Corp. | 3.3% | |
The Allstate Corp. | 4.4% | Entergy Corp. | 3.3% | |
TE Connectivity, Ltd. | 3.5% | Omnicom Group, Inc. | 3.2% | |
Sector Composition1,3 | ||||
Financials | 36.2% | Consumer Staples | 3.8% | |
Information Technology | 19.5% | Health Care | 3.3% | |
Energy | 11.3% | Utilities | 3.3% | |
Industrials | 9.9% | Materials | 2.6% | |
Consumer Discretionary | 9.7% | Short-Term Investments & Other | 0.4% | |
1 As a percentage of net assets on 4-30-12.
2 Cash and cash equivalents not included.
3 Sector investing is subject to greater risks than the market as a whole. Because the Fund may focus on particular sectors of the economy, its performance may depend on the performance of those sectors. International investing involves special risks such as political, economic and currency risks and differences in accounting standards and financial reporting. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if the creditor is unable or unwilling to make principal or interest payments.
10 Classic Value Fund | Semiannual report |
Fund’s investments
As of 4-30-12 (unaudited)
Shares | Value | |
Common Stocks 99.6% | $1,678,568,491 | |
(Cost $1,641,908,079) | ||
Consumer Discretionary 9.7% | 164,057,572 | |
Diversified Consumer Services 1.9% | ||
Apollo Group, Inc., Class A (I)(L) | 918,600 | 32,353,092 |
Media 3.1% | ||
Omnicom Group, Inc. (L) | 1,035,775 | 53,145,615 |
Specialty Retail 4.7% | ||
Staples, Inc. (L) | 5,101,225 | 78,558,865 |
Consumer Staples 3.8% | 64,751,971 | |
Beverages 1.9% | ||
Molson Coors Brewing Company, Class B | 794,287 | 33,026,453 |
Personal Products 1.9% | ||
Avon Products, Inc. | 1,468,774 | 31,725,518 |
Energy 11.3% | 189,716,869 | |
Oil, Gas & Consumable Fuels 11.3% | ||
BP PLC, ADR | 1,352,198 | 58,698,915 |
Exxon Mobil Corp. | 643,248 | 55,538,032 |
Royal Dutch Shell PLC, ADR | 1,055,073 | 75,479,922 |
Financials 36.2% | 610,409,601 | |
Capital Markets 12.8% | ||
Franklin Resources, Inc. (L) | 286,050 | 35,902,136 |
Invesco, Ltd. | 1,374,750 | 34,148,790 |
Morgan Stanley (L) | 1,417,075 | 24,487,056 |
State Street Corp. | 1,020,485 | 47,166,817 |
The Goldman Sachs Group, Inc. | 291,200 | 33,531,680 |
UBS AG (I)(L) | 3,199,304 | 39,575,390 |
Commercial Banks 2.2% | ||
PNC Financial Services Group, Inc. | 566,753 | 37,587,059 |
Diversified Financial Services 7.3% | ||
Bank of America Corp. | 3,775,625 | 30,620,319 |
Citigroup, Inc. | 1,367,467 | 45,181,110 |
JPMorgan Chase & Company | 1,107,500 | 47,600,350 |
See notes to financial statements | Semiannual report | Classic Value Fund 11 |
Shares | Value | ||
Insurance 13.9% | |||
American International Group, Inc. (I) | 1,443,034 | $49,106,447 | |
Axis Capital Holdings, Ltd. | 1,448,485 | 49,277,460 | |
Fidelity National Financial, Inc., Class A (L) | 1,325,958 | 25,551,211 | |
MetLife, Inc. | 999,225 | 36,002,077 | |
The Allstate Corp. | 2,240,375 | 74,671,699 | |
Health Care 3.3% | 56,180,897 | ||
Health Care Equipment & Supplies 0.8% | |||
Becton, Dickinson and Company (L) | 175,625 | 13,777,781 | |
Pharmaceuticals 2.5% | |||
Abbott Laboratories | 683,260 | 42,403,116 | |
Industrials 9.9% | 167,120,842 | ||
Aerospace & Defense 6.8% | |||
Huntington Ingalls Industries, Inc. (I) | 186,753 | 7,367,406 | |
L-3 Communications Holdings, Inc. (L) | 699,748 | 51,459,468 | |
Northrop Grumman Corp. (L) | 891,607 | 56,420,891 | |
Building Products 3.1% | |||
Fortune Brands Home & Security, Inc. (I) | 484,169 | 11,010,003 | |
Masco Corp. (L) | 3,100,385 | 40,863,074 | |
Information Technology 19.5% | 328,232,382 | ||
Computers & Peripherals 7.3% | |||
Dell, Inc. (I) | 2,106,585 | 34,484,796 | |
Hewlett-Packard Company (L) | 3,560,929 | 88,168,601 | |
Electronic Equipment, Instruments & Components 3.6% | |||
TE Connectivity, Ltd. | 1,641,086 | 59,833,996 | |
Internet Software & Services 1.6% | |||
Google, Inc., Class A (I) | 43,925 | 26,584,728 | |
IT Services 2.6% | |||
Computer Sciences Corp. (L) | 1,578,300 | 44,287,098 | |
Software 4.4% | |||
CA, Inc. | 1,245,350 | 32,902,147 | |
Microsoft Corp. | 1,310,775 | 41,971,016 | |
Materials 2.6% | 42,872,776 | ||
Chemicals 2.6% | |||
PPG Industries, Inc. (L) | 407,381 | 42,872,776 | |
Utilities 3.3% | 55,225,581 | ||
Electric Utilities 3.3% | |||
Entergy Corp. | 842,367 | 55,225,581 | |
Yield (%) | Shares | Value | |
Securities Lending Collateral 7.2% | $121,260,771 | ||
(Cost $121,237,765) | |||
John Hancock Collateral Investment Trust (W) | 0.3316 (Y) | 12,116,021 | 121,260,771 |
12 Classic Value Fund | Semiannual report | See notes to financial statements |
Par value | Value | |
Short-Term Investments 0.6% | $10,449,000 | |
(Cost $10,449,000) | ||
Repurchase Agreement 0.6% | 10,449,000 | |
Repurchase Agreement with State Street Corp. dated 4-30-12 at 0.010% to | ||
be repurchased at $10,449,003 on 5-1-12, collateralized by $10,660,000 | ||
Federal Home Loan Bank, 0.700% due 4-24-15 (valued at $10,660,000) | $10,449,000 | 10,449,000 |
Total investments (Cost $1,773,594,844)† 107.4% | $1,810,278,262 | |
Other assets and liabilities, net (7.4%) | ($124,544,305) | |
Total net assets 100.0% | $1,685,733,957 | |
The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund.
ADR American Depositary Receipts
(I) Non-income producing security.
(L) All or a portion of this security is on loan as of 4-30-12.
(W) Investment is an affiliate of the Fund, the adviser and/or subadviser. Also, it represents the investment of securities lending collateral received.
(Y) The rate shown is the annualized seven-day yield as of 4-30-12.
† At 4-30-12, the aggregate cost of investment securities for federal income tax purposes was $1,841,676,679. Net unrealized depreciation aggregated $31,398,417, of which $227,651,903 related to appreciated investment securities and $259,050,320 related to depreciated investment securities.
The Fund had the following country concentration as a percentage of total net assets on 4-30-12:
United States | 83.2% | |
Switzerland | 5.9% | |
Netherlands | 4.5% | |
United Kingdom | 3.5% | |
Bermuda | 2.9% |
See notes to financial statements | Semiannual report | Classic Value Fund 13 |
F I N A N C I A L S T A T E M E N T S
Financial statements
Statement of assets and liabilities 4-30-12 (unaudited)
This Statement of assets and liabilities is the Fund’s balance sheet. It shows the value of what the Fund owns, is due and owes. You’ll also find the net asset value and the maximum offering price per share.
Assets | |
Investments in unaffiliated issuers, at value (Cost $1,652,357,079) | |
including $118,326,860 of securities loaned) | $1,689,017,491 |
Investments in affiliated issuers, at value (Cost $121,237,765) | 121,260,771 |
Total investments, at value (Cost $1,773,594,844) | 1,810,278,262 |
Cash | 481 |
Receivable for investments sold | 432,565 |
Receivable for fund shares sold | 2,631,105 |
Dividends and interest receivable | 924,679 |
Receivable for securities lending income | 18,982 |
Other receivables and prepaid expenses | 325,057 |
Total assets | 1,814,611,131 |
Liabilities | |
Payable for investments purchased | 3,290,689 |
Payable for fund shares repurchased | 2,407,492 |
Payable upon return of securities loaned | 121,233,725 |
Payable to affiliates | |
Accounting and legal services fees | 30,571 |
Transfer agent fees | 196,022 |
Distribution and service fees | 213,912 |
Trustees’ fees | 152,376 |
Management fees | 1,086,630 |
Other liabilities and accrued expenses | 265,757 |
Total liabilities | 128,877,174 |
Net assets | |
Paid-in capital | $3,856,947,343 |
Undistributed net investment income | 6,033,078 |
Accumulated net realized loss on investments | (2,213,929,882) |
Net unrealized appreciation (depreciation) on investments | 36,683,418 |
Net assets | $1,685,733,957 |
14 Classic Value Fund | Semiannual report | See notes to financial statements |
F I N A N C I A L S T A T E M E N T S
Statement of assets and liabilities (continued)
Net asset value per share | |
Based on net asset values and shares outstanding — the Fund has an | |
unlimited number of shares authorized with no par value | |
Class A ($497,057,413 ÷ 28,569,620 shares) | $17.40 |
Class B ($34,385,353 ÷ 2,003,106 shares)1 | $17.17 |
Class C ($96,289,117 ÷ 5,611,403 shares)1 | $17.16 |
Class I ($1,052,979,815 ÷ 60,445,798 shares) | $17.42 |
Class R1 ($4,640,353 ÷ 266,029 shares) | $17.44 |
Class R2 ($101,974 ÷ 5,855 shares) | $17.42 |
Class R3 ($88,108 ÷ 5,067 shares) | $17.39 |
Class R4 ($38,760 ÷ 2,224 shares) | $17.43 |
Class R5 ($39,742 ÷ 2,280 shares) | $17.43 |
Class R6 ($113,322 ÷ 6,502 shares) | $17.43 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $18.32 |
1 Redemption price 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 | Semiannual report | Classic Value Fund 15 |
F I N A N C I A L S T A T E M E N T S
Statement of operations For the six-month period ended 4-30-12
(unaudited)
This Statement of operations summarizes the Fund’s investment income earned and expenses incurred in operating the Fund. It also shows net gains (losses) for the period stated.
Investment income | |
Dividends | $20,383,622 |
Securities lending | 180,227 |
Interest | 952 |
Total investment income | 20,564,801 |
Expenses | |
Investment management fees | 6,434,428 |
Distribution and service fees | 1,328,396 |
Accounting and legal services fees | 160,949 |
Transfer agent fees | 1,190,765 |
Trustees’ fees | 57,210 |
State registration fees | 100,032 |
Printing and postage | 1,869 |
Professional fees | 53,333 |
Custodian fees | 75,707 |
Registration and filing fees | 42,304 |
Other | 31,860 |
Total expenses | 9,476,853 |
Less expense reductions | (89,863) |
Net expenses | 9,386,990 |
Net investment income | 11,177,811 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Investments in unaffiliated issuers | 37,210,641 |
Investments in affiliated issuers | 48,100 |
Capital gain distributions received from affiliated underlying funds | 5,221 |
37,263,962 | |
Change in net unrealized appreciation (depreciation) of | |
Investments in unaffiliated issuers | 120,880,253 |
Investments in affiliated issuers | (14,736) |
120,865,517 | |
Net realized and unrealized gain | 158,129,479 |
Increase in net assets from operations | $169,307,290 |
16 Classic Value Fund | Semiannual report | See notes to financial statements |
F I N A N C I A L S T A T E M E N T S
Statements of changes in net assets
These Statements of changes in net assets show how the value of the Fund’s net assets has changed during the last two periods. The difference reflects earnings less expenses, any investment gains and losses, distributions, if any, paid to shareholders and the net of Fund share transactions.
Six months | ||
ended | Year | |
4-30-12 | ended | |
(unaudited) | 10-31-11 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $11,177,811 | $13,911,051 |
Net realized gain | 37,263,962 | 242,299,243 |
Change in net unrealized appreciation (depreciation) | 120,865,517 | (197,296,502) |
Increase in net assets resulting from operations | 169,307,290 | 58,913,792 |
Distributions to shareholders | ||
From net investment income | ||
Class A | (5,161,307) | (1,563,501) |
Class B | (82,021) | — |
Class C | (203,907) | — |
Class I | (13,454,101) | (5,452,507) |
Class R1 | (34,000) | — |
Class R3 | (632) | — |
Class R4 | (413) | (37) |
Class R5 | (599) | (134) |
Class R6 | (1,489) | — |
Total distributions | (18,938,469) | (7,016,179) |
From Fund share transactions | (17,973,753) | (621,226,839) |
Total increase (decrease) | 132,395,068 | (569,329,226) |
Net assets | ||
Beginning of period | 1,553,338,889 | 2,122,668,115 |
End of period | $1,685,733,957 | $1,553,338,889 |
Undistributed net investment income | $6,033,078 | $13,793,736 |
See notes to financial statements | Semiannual report | Classic Value Fund 17 |
Financial highlights
The Financial highlights show how the Fund’s net asset value for a share has changed during the period.
CLASS A SHARES | |||||||
Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-09 | 10-31-082 | 12-31-07 | 12-31-06 |
Per share operating performance | |||||||
Net asset value, beginning | |||||||
of period | $15.86 | $15.64 | $13.77 | $12.38 | $21.53 | $27.67 | $24.64 |
Net investment income3 | 0.10 | 0.10 | 0.07 | 0.14 | 0.25 | 0.34 | 0.23 |
Net realized and unrealized | |||||||
gain (loss) on investments | 1.60 | 0.15 | 1.91 | 2.02 | (9.40) | (4.24) | 3.84 |
Total from | |||||||
investment operations | 1.70 | 0.25 | 1.98 | 2.16 | (9.15) | (3.90) | 4.07 |
Less distributions | |||||||
From net investment income | (0.16) | (0.03) | (0.11) | (0.34) | — | (0.41) | (0.19) |
From net realized gain | — | — | — | (0.43) | — | (1.83) | (0.85) |
Total distributions | (0.16) | (0.03) | (0.11) | (0.77) | — | (2.24) | (1.04) |
Net asset value, end | |||||||
of period | $17.40 | $15.86 | $15.64 | $13.77 | $12.38 | $21.53 | $27.67 |
Total return (%)4 | 10.875 | 1.59 | 14.486 | 19.846 | (42.50)5,6 | (14.20) | 16.54 |
Ratios and supplemental data | |||||||
Net assets, end of period | |||||||
(in millions) | $497 | $557 | $931 | $1,544 | $1,711 | $4,000 | $5,987 |
Ratios (as a percentage of | |||||||
average net assets): | |||||||
Expenses before reductions | 1.317 | 1.30 | 1.41 | 1.608 | 1.387 | 1.28 | 1.30 |
Expenses net of fee waivers | |||||||
and credits | 1.317 | 1.30 | 1.33 | 1.338 | 1.327 | 1.28 | 1.30 |
Net investment income | 1.257 | 0.59 | 0.47 | 1.27 | 1.617 | 1.22 | 0.89 |
Portfolio turnover (%) | 18 | 37 | 55 | 47 | 30 | 35 | 20 |
1 Six months ended 4-30-12. Unaudited.
2 For the ten-month period ended 10-31-08. The Fund changed its fiscal year end from December 31 to October 31.
3 Based on the average daily shares outstanding.
4 Does not reflect the effect of sales charges, if any.
5 Not annualized.
6 Total returns would have been lower had certain expenses not been reduced during the periods shown.
7 Annualized.
8 Includes the impact of proxy expenses, which amounted to 0.03% of average net assets.
18 Classic Value Fund | Semiannual report | See notes to financial statements |
CLASS B SHARES | |||||||
Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-09 | 10-31-082 | 12-31-07 | 12-31-06 |
Per share operating performance | |||||||
Net asset value, beginning | |||||||
of period | $15.58 | $15.45 | $13.62 | $12.19 | $21.34 | $27.40 | $24.42 |
Net investment income (loss)3 | 0.04 | (0.03) | (0.04) | 0.06 | 0.13 | 0.13 | 0.04 |
Net realized and unrealized | |||||||
gain (loss) on investments | 1.58 | 0.16 | 1.89 | 2.01 | (9.28) | (4.16) | 3.79 |
Total from | |||||||
investment operations | 1.62 | 0.13 | 1.85 | 2.07 | (9.15) | (4.03) | 3.83 |
Less distributions | |||||||
From net investment income | (0.03) | — | (0.02) | (0.21) | — | (0.20) | — |
From net realized gain | — | — | — | (0.43) | — | (1.83) | (0.85) |
Total distributions | (0.03) | — | (0.02) | (0.64) | — | (2.03) | (0.85) |
Net asset value, end | |||||||
of period | $17.17 | $15.58 | $15.45 | $13.62 | $12.19 | $21.34 | $27.40 |
Total return (%)4 | 10.455 | 0.84 | 13.636 | 18.946 | (42.88)5,6 | (14.80) | 15.68 |
Ratios and supplemental data | |||||||
Net assets, end of period | |||||||
(in millions) | $34 | $41 | $57 | $66 | $79 | $208 | $332 |
Ratios (as a percentage of | |||||||
average net assets): | |||||||
Expenses before reductions | 2.067 | 2.05 | 2.16 | 2.358 | 2.137 | 2.03 | 2.01 |
Expenses net of fee waivers | 2.067 | 2.05 | 2.08 | 2.088 | 2.077 | 2.03 | 2.01 |
Expenses net of fee waivers | |||||||
and credits | 2.067 | 2.05 | 2.08 | 2.088 | 2.067 | 2.03 | 2.01 |
Net investment income (loss) | 0.507 | (0.16) | (0.29) | 0.54 | 0.867 | 0.46 | 0.17 |
Portfolio turnover (%) | 18 | 37 | 55 | 47 | 30 | 35 | 20 |
1 Six months ended 4-30-12. Unaudited.
2 For the ten-month period ended 10-31-08. The Fund changed its fiscal year end from December 31 to October 31.
3 Based on the average daily shares outstanding.
4 Does not reflect the effect of sales charges, if any.
5 Not annualized.
6 Total returns would have been lower had certain expenses not been reduced during the periods shown.
7 Annualized.
8 Includes the impact of proxy expenses, which amounted to 0.03% of average net assets.
See notes to financial statements | Semiannual report | Classic Value Fund 19 |
CLASS C SHARES | |||||||
Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-09 | 10-31-082 | 12-31-07 | 12-31-06 |
Per share operating performance | |||||||
Net asset value, beginning | |||||||
of period | $15.58 | $15.44 | $13.61 | $12.18 | $21.33 | $27.39 | $24.42 |
Net investment income (loss)3 | 0.04 | (0.03) | (0.04) | 0.06 | 0.13 | 0.13 | 0.03 |
Net realized and unrealized | |||||||
gain (loss) on investments | 1.57 | 0.17 | 1.89 | 2.01 | (9.28) | (4.16) | 3.79 |
Total from | |||||||
investment operations | 1.61 | 0.14 | 1.85 | 2.07 | (9.15) | (4.03) | 3.82 |
Less distributions | |||||||
From net investment income | (0.03) | — | (0.02) | (0.21) | — | (0.20) | — |
From net realized gain | — | — | — | (0.43) | — | (1.83) | (0.85) |
Total distributions | (0.03) | — | (0.02) | (0.64) | — | (2.03) | (0.85) |
Net asset value, end | |||||||
of period | $17.16 | $15.58 | $15.44 | $13.61 | $12.18 | $21.33 | $27.39 |
Total return (%)4 | 10.395 | 0.91 | 13.646 | 18.956 | (42.90)5,6 | (14.80) | 15.64 |
Ratios and supplemental data | |||||||
Net assets, end of period | |||||||
(in millions) | $96 | $101 | $132 | $155 | $202 | $612 | $1,132 |
Ratios (as a percentage of | |||||||
average net assets): | |||||||
Expenses before reductions | 2.067 | 2.05 | 2.16 | 2.348 | 2.137 | 2.03 | 2.05 |
Expenses net of fee waivers | |||||||
and credits | 2.067 | 2.05 | 2.08 | 2.088 | 2.077 | 2.03 | 2.05 |
Net investment income (loss) | 0.487 | (0.16) | (0.29) | 0.57 | 0.857 | 0.46 | 0.13 |
Portfolio turnover (%) | 18 | 37 | 55 | 47 | 30 | 35 | 20 |
1 Six months ended 4-30-12. Unaudited.
2 For the ten-month period ended 10-31-08. The Fund changed its fiscal year end from December 31 to October 31.
3 Based on the average daily shares outstanding.
4 Does not reflect the effect of sales charges, if any.
5 Not annualized.
6 Total returns would have been lower had certain expenses not been reduced during the periods shown.
7 Annualized.
8 Includes the impact of proxy expenses, which amounted to 0.03% of average net assets.
20 Classic Value Fund | Semiannual report | See notes to financial statements |
CLASS I SHARES | |||||||
Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-09 | 10-31-082 | 12-31-07 | 12-31-06 |
Per share operating performance | |||||||
Net asset value, beginning | |||||||
of period | $15.93 | $15.70 | $13.81 | $12.44 | $21.57 | $27.73 | $24.69 |
Net investment income3 | 0.13 | 0.16 | 0.12 | 0.19 | 0.30 | 0.45 | 0.34 |
Net realized and unrealized | |||||||
gain (loss) on investments | 1.59 | 0.15 | 1.93 | 2.02 | (9.43) | (4.26) | 3.86 |
Total from | |||||||
investment operations | 1.72 | 0.31 | 2.05 | 2.21 | (9.13) | (3.81) | 4.20 |
Less distributions | |||||||
From net investment income | (0.23) | (0.08) | (0.16) | (0.41) | — | (0.52) | (0.31) |
From net realized gain | — | — | — | (0.43) | — | (1.83) | (0.85) |
Total distributions | (0.23) | (0.08) | (0.16) | (0.84) | — | (2.35) | (1.16) |
Net asset value, end | |||||||
of period | $17.42 | $15.93 | $15.70 | $13.81 | $12.44 | $21.57 | $27.73 |
Total return (%) | 11.014,5 | 1.98 | 14.95 | 20.325 | (42.33)4,5 | (13.86)5 | 17.015 |
Ratios and supplemental data | |||||||
Net assets, end of period | |||||||
(in millions) | $1,053 | $849 | $994 | $636 | $664 | $1,155 | $1,567 |
Ratios (as a percentage of | |||||||
average net assets): | |||||||
Expenses before | |||||||
reductions | 0.966 | 0.94 | 0.92 | 1.037 | 0.966 | 0.92 | 0.94 |
Expenses net of fee | |||||||
waivers and credits | 0.946 | 0.94 | 0.92 | 0.957 | 0.946 | 0.88 | 0.89 |
Net investment income | 1.566 | 0.95 | 0.83 | 1.65 | 1.996 | 1.61 | 1.30 |
Portfolio turnover (%) | 18 | 37 | 55 | 47 | 30 | 35 | 20 |
1 Six months ended 4-30-12. Unaudited.
2 For the ten-month period ended 10-31-08. The Fund changed its fiscal year end from December 31 to October 31.
3 Based on the average daily shares outstanding.
4 Not annualized.
5 Total returns would have been lower had certain expenses not been reduced during the periods shown.
6 Annualized.
7 Includes the impact of proxy expenses, which amounted to 0.03% of average net assets.
See notes to financial statements | Semiannual report | Classic Value Fund 21 |
CLASS R1 SHARES | |||||||
Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-09 | 10-31-082 | 12-31-07 | 12-31-06 |
Per share operating performance | |||||||
Net asset value, beginning | |||||||
of period | $15.87 | $15.68 | $13.77 | $12.35 | $21.55 | $27.67 | $24.63 |
Net investment income3 | 0.08 | 0.04 | 0.05 | 0.11 | 0.19 | 0.23 | 0.13 |
Net realized and unrealized | |||||||
gain (loss) on investments | 1.59 | 0.15 | 1.92 | 2.02 | (9.39) | (4.21) | 3.85 |
Total from | |||||||
investment operations | 1.67 | 0.19 | 1.97 | 2.13 | (9.20) | (3.98) | 3.98 |
Less distributions | |||||||
From net investment income | (0.10) | — | (0.06) | (0.28) | — | (0.31) | (0.09) |
From net realized gain | — | — | — | (0.43) | — | (1.83) | (0.85) |
Total distributions | (0.10) | — | (0.06) | (0.71) | — | (2.14) | (0.94) |
Net asset value, end | |||||||
of period | $17.44 | $15.87 | $15.68 | $13.77 | $12.35 | $21.55 | $27.67 |
Total return (%) | 10.664 | 1.21 | 14.08 | 19.405 | (42.69)4,5 | (14.49) | 16.15 |
Ratios and supplemental data | |||||||
Net assets, end of period | |||||||
(in millions) | $5 | $5 | $7 | $7 | $9 | $22 | $29 |
Ratios (as a percentage of | |||||||
average net assets): | |||||||
Expenses before reductions | 1.646 | 1.64 | 1.487 | 1.758 | 1.686 | 1.64 | 1.68 |
Expenses net of fee waivers | |||||||
and credits | 1.646 | 1.64 | 1.487 | 1.678 | 1.666 | 1.64 | 1.68 |
Net investment income | 0.936 | 0.24 | 0.30 | 1.01 | 1.266 | 0.85 | 0.51 |
Portfolio turnover (%) | 18 | 37 | 55 | 47 | 30 | 35 | 20 |
1 Six months ended 4-30-12. Unaudited.
2 For the ten-month period ended 10-31-08. The Fund changed its fiscal year end from December 31 to October 31.
3 Based on the average daily shares outstanding.
4 Not annualized.
5 Total returns would have been lower had certain expenses not been reduced during the periods shown.
6 Annualized.
7 Includes the impact of a revision of 0.25% related to certain expense accruals. Without this adjustment, net investment income and total return for the year ended 10-31-10 would have been lower.
8 Includes the impact of proxy expenses, which amounted to 0.03% of average net assets.
CLASS R2 SHARES Period ended | 4-30-121 | ||||||
Per share operating performance | |||||||
Net asset value, beginning of period | $17.08 | ||||||
Net investment income2 | 0.02 | ||||||
Net realized and unrealized gain on investments | 0.32 | ||||||
Total from investment operations | 0.34 | ||||||
Net asset value, end of period | $17.42 | ||||||
Total return (%) | 1.993 | ||||||
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | —4 | ||||||
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.125 | ||||||
Expenses net of all fee waivers and credits | 1.125 | ||||||
Net investment income | 0.635 | ||||||
Portfolio turnover (%) | 186 | ||||||
1 Period from 3-1-12 (inception date) to 3-31-12. Unaudited.
2 Based on the average daily shares outstanding.
3 Not annualized.
4 Less than $500,000.
5 Annualized.
6 Portfolio turnover is shown for the period from 11-1-11 to 4-30-12.
22 Classic Value Fund | Semiannual report | See notes to financial statements |
CLASS R3 SHARES Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-092 | |||
Per share operating performance | |||||||
Net asset value, beginning of period | $15.84 | $15.62 | $13.76 | $11.24 | |||
Net investment income3 | 0.08 | 0.07 | —4 | —5 | |||
Net realized and unrealized gain on investments | 1.60 | 0.15 | 1.93 | 2.52 | |||
Total from investment operations | 1.68 | 0.22 | 1.93 | 2.52 | |||
Less distributions | |||||||
From net investment income | (0.13) | — | (0.07) | — | |||
Net asset value, end of period | $17.39 | $15.84 | $15.62 | $13.76 | |||
Total return (%) | 10.766 | 1.41 | 14.047 | 22.426,7 | |||
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | —8 | —8 | —8 | —8 | |||
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.469 | 1.48 | 2.76 | 3.339 | |||
Expenses net of fee waivers and credits | 1.469 | 1.48 | 1.73 | 1.739 | |||
Net investment income (loss) | 1.049 | 0.44 | 0.02 | (0.04)9 | |||
Portfolio turnover (%) | 18 | 37 | 55 | 47 |
1 Six months ended 4-30-12. Unaudited.
2 Period from 5-22-09 (inception date) to 10-31-09.
3 Based on the average daily shares outstanding.
4 Less than $0.005 per share.
5 Less than ($0.005) per share.
6 Not annualized.
7 Total returns would have been lower had certain expenses not been reduced during the periods shown.
8 Less than $500,000.
9 Annualized.
CLASS R4 SHARES Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-092 | |||
Per share operating performance | |||||||
Net asset value, beginning of period | $15.90 | $15.64 | $13.77 | $11.24 | |||
Net investment income3 | 0.11 | 0.13 | 0.05 | 0.02 | |||
Net realized and unrealized gain on investments | 1.61 | 0.15 | 1.92 | 2.51 | |||
Total from investment operations | 1.72 | 0.28 | 1.97 | 2.53 | |||
Less distributions | |||||||
From net investment income | (0.19) | (0.02) | (0.10) | — | |||
Net asset value, end of period | $17.43 | $15.90 | $15.64 | $13.77 | |||
Total return (%) | 10.994 | 1.77 | 14.385 | 22.514,5 | |||
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | —6 | —6 | —6 | —6 | |||
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.137 | 1.15 | 2.87 | 3.087 | |||
Expenses net of fee waivers and credits | 1.137 | 1.15 | 1.43 | 1.437 | |||
Net investment income | 1.397 | 0.76 | 0.34 | 0.267 | |||
Portfolio turnover (%) | 18 | 37 | 55 | 47 | |||
1 Six months ended 4-30-12. Unaudited.
2 Period from 5-22-09 (inception date) to 10-31-09.
3 Based on the average daily shares outstanding.
4 Not annualized.
5 Total returns would have been lower had certain expenses not been reduced during the periods shown.
6 Less than $500,000.
7 Annualized.
See notes to financial statements | Semiannual report | Classic Value Fund 23 |
CLASS R5 SHARES Period ended | 4-30-121 | 10-31-11 | 10-31-10 | 10-31-092 | |||
Per share operating performance | |||||||
Net asset value, beginning of period | $15.94 | $15.67 | $13.79 | $11.24 | |||
Net investment income3 | 0.14 | 0.17 | 0.09 | 0.03 | |||
Net realized and unrealized gain on investments | 1.58 | 0.15 | 1.93 | 2.52 | |||
Total from investment operations | 1.72 | 0.32 | 2.02 | 2.55 | |||
Less distributions | |||||||
From net investment income | (0.23) | (0.05) | (0.14) | — | |||
Net asset value, end of period | $17.43 | $15.94 | $15.67 | $13.79 | |||
Total return (%) | 11.014 | 2.07 | 14.725 | 22.694,5 | |||
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | —6 | —6 | —6 | —6 | |||
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.897 | 0.90 | 2.64 | 2.847 | |||
Expenses net of fee waivers and credits | 0.897 | 0.90 | 1.13 | 1.137 | |||
Net investment income | 1.657 | 1.02 | 0.63 | 0.567 | |||
Portfolio turnover (%) | 18 | 37 | 55 | 47 | |||
1 Six months ended 4-30-12. Unaudited.
2 Period from 5-22-09 (inception date) to 10-31-09.
3 Based on the average daily shares outstanding.
4 Not annualized
5 Total returns would have been lower had certain expenses not been reduced during the periods shown.
6 Less than $500,000.
7 Annualized.
CLASS R6 SHARES Period ended | 4-30-121 | 10-31-112 | |||||||
Per share operating performance | |||||||||
Net asset value, beginning of period | $15.93 | $15.38 | |||||||
Net investment income3 | 0.13 | 0.02 | |||||||
Net realized and unrealized gain on investments | 1.60 | 0.53 | |||||||
Total from investment operations | 1.73 | 0.55 | |||||||
Less distributions | |||||||||
From net investment income | (0.23) | — | |||||||
Net asset value, end of period | $17.43 | $15.93 | |||||||
Total return (%) | 11.104 | 3.584 | |||||||
Ratios and supplemental data | |||||||||
Net assets, end of period (in millions) | —5 | —5 | |||||||
Ratios (as a percentage of average net assets): | |||||||||
Expenses before reductions | 0.896 | 0.876 | |||||||
Expenses net of fee waivers and credits | 0.896 | 0.876 | |||||||
Net investment income | 1.636 | 0.906 | |||||||
Portfolio turnover (%) | 18 | 377 | |||||||
1 Six months ended 4-30-12. Unaudited.
2 Period from 9-1-11 (inception date) to 10-31-11.
3 Based on the average daily shares outstanding.
4 Not annualized.
5 Less than $500,000.
6 Annualized.
7 Portfolio turnover is shown for the period from 11-1-10 to 10-31-11.
24 Classic Value Fund | Semiannual report | See notes to financial statements |
Notes to financial statements
(unaudited)
Note 1 — Organization
John Hancock Classic Value Fund (the Fund) is a series of John Hancock Capital Series (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 growth of capital.
The Fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of assets and liabilities. Class A, Class B and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R1, Class R2, Class R3, Class R4 and Class R5 shares are available only to certain retirement plans. Class R6 shares are available only 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. Class B shares convert to Class A shares eight years after purchase. Certain Class I shares may be exchanged for Class R6 shares within one year after the commencement of operations of Class R6 shares.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. 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 close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. 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. Level 2 includes securities valued using 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, 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.
As of April 30, 2012, all investments are categorized as Level 1 under the hierarchy described above, except repurchase agreements, which are Level 2. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. During the six months ended April 30, 2012, there were no significant transfers into or out of Level 1, Level 2 or Level 3.
In order to value the securities, the Fund uses the following valuation techniques. Equity securities held by the Fund are valued at the last sale price or official closing price on the principal securities exchange on which they trade. In the event there were no sales during the day or closing prices are not available, then securities are valued using the last quoted bid or evaluated price. Investments by
Semiannual report | Classic Value Fund 25 |
the Fund in open-end mutual funds, including John Hancock Collateral Investment Trust (JHCIT), are valued at their respective net asset values each business day. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. Certain securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Certain short-term securities are valued at amortized cost. Other portfolio securities and assets, where 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.
Repurchase agreements. The Fund may enter into repurchase agreements. When the Fund enters into a repurchase agreement, it receives collateral which is held in a segregated account by the Fund’s custodian. 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. 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.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily net asset value 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 foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income is recorded when the Fund becomes aware of the dividends. 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. It receives and maintains cash collateral received from the borrower in an amount not less than the market value of the loaned securities. The Fund will invest its collateral in JHCIT, an affiliate of the Fund, and as a result, the Fund will receive the benefit of any gains and bear any losses generated by JHCIT. Although risk of the loss of the securities lent is mitigated by holding the collateral, the Fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities or if collateral investments decline in value. The Fund may receive 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. Net income received from JHCIT is a component of securities lending income as recorded on the Statement of operations.
Line of credit. The Fund may borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the 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 maximum extent permitted by law, to the extent of any overdraft.
In addition, the Fund and other affiliated funds have entered into an agreement with Citibank N.A. which enables them to participate in a $100 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 on a pro rata basis and is reflected in other expenses on the Statement of operations. For the six months ended April 30, 2012, the Fund had no borrowings under the line of credit.
Expenses. Within the John Hancock Funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a
26 Classic Value Fund | Semiannual report |
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, are calculated daily for each class, based on the net asset value of the class and the applicable specific expense rates.
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.
Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
For federal income tax purposes, the Fund has a capital loss carryforward of $2,183,112,009 available to offset future net realized capital gains as of October 31, 2011. The loss carryforward expires as follows: October 31, 2016 — $703,900,347 and October 31, 2017 — $1,479,211,662.
As of October 31, 2011, 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 and capital gain distributions, if any, annually.
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.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America.
Capital accounts within 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 sales loss deferrals.
New accounting pronouncement. In May 2011, Accounting Standards Update 2011-04 (ASU 2011-04), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, was issued and is effective during interim and annual periods beginning after December 15, 2011. ASU 2011-04 may result in additional disclosure for transfers between levels as well as expanded disclosure for securities categorized as Level 3 under the fair value hierarchy.
Semiannual report | Classic Value Fund 27 |
Note 3 — Guarantees and indemnifications
Under the Fund’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to 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 Advisers, LLC (the Adviser) serves as investment adviser for the Fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Adviser, serves as principal underwriter of the Fund. The Adviser and the Distributor are indirect wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The Fund has an investment management agreement with the Adviser under which the Fund pays a monthly management fee to the Adviser equivalent, on an annual basis, to the sum of: (a) 0.79% of the first $2,500,000,000 of the Fund’s average daily net assets; (b) 0.78% of the next $2,500,000,000; and (c) 0.77% of the Fund’s average daily net assets in excess of $5,000,000,000. The Adviser has a subadvisory agreement with Pzena Investment Management, LLC. The Fund is not responsible for payment of the subadvisory fees.
The Adviser has contractually agreed to waive fees and/or reimburse certain expenses for each share class of the Fund. This agreement excludes certain expenses such as taxes, portfolio brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business. The fee waivers and/or reimbursements are such that these expenses will not exceed 1.33%, 2.08%, 2.08%, 1.02%, 1.68%, 1.43%, 1.58%, 1.28%, 0.98% and 0.92% for Class A, Class B, Class C, Class I, Class R1, Class R2, Class R3, Class R4, Class R5 and Class R6 shares, respectively. The fee waivers and/or reimbursements will continue in effect until February 28, 2013, unless renewed by mutual agreement of the fund and the adviser based upon a determination that this is appropriate under the circumstances at the time. Prior to March 1, 2012, the fee waivers and/or reimbursements were such that the above expenses would not exceed 0.94%, 1.83%, 1.73%, 1.43%, and 1.13% for Class I, Class R1, Class R3, Class R4 and Class R5, respectively, and the fee waivers and/or reimbursements for the remainder of the share classes above were unchanged.
Accordingly, the fee waivers and/or expense reimbursements amounted to $89,863 for Class I, for the six months ended April 30, 2012.
The investment management fees, including the impact of the waivers and expense reimbursements describe above, incurred for the six months ended April 30, 2012, 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 the Accounting and Legal Services Agreement, the Fund reimburses the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of 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 six months ended April 30, 2012, 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 with respect to Class A, Class B, Class C, Class R1, Class R2, Class R3 and Class R4 shares pursuant to Rule 12b-1 under the 1940 Act, to
28 Classic Value Fund | Semiannual report |
pay the Distributor for services provided as the distributor of shares of the Fund. In addition, under a service plan for Class R1, Class R2, Class R3, Class R4 and Class R5 shares, 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 | 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% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $93,411 for the six months ended April 30, 2012. Of this amount, $13,649 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $76,171 was paid as sales commissions to broker-dealers and $3,591 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Adviser.
Class B and Class C shares are subject to contingent deferred sales charges (CDSCs). Class B shares that are redeemed within six years of purchase are subject to CDSCs, at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC on 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 six months ended April 30, 2012, CDSCs received by the Distributor amounted to $77,003 and $6,517 for Class B and Class C shares, respectively.
Transfer agent fees. The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Adviser. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. The Signature Services Cost includes a component of allocated John Hancock corporate overhead for providing transfer agent services to the Fund and to all other John Hancock affiliated funds. It also includes out-of-pocket expenses that are comprised of 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 four categories of share classes: Institutional Share Classes, Retirement Share Classes, Municipal Bond Classes and all other Retail 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.
Semiannual report | Classic Value Fund 29 |
Class level expenses. Class level expenses for the six months ended April 30, 2012 were:
DISTRIBUTION AND | TRANSFER | |||
CLASS | SERVICE FEES | AGENT FEES | ||
Class A | $635,386 | $524,956 | ||
Class B | 189,057 | 39,165 | ||
Class C | 484,588 | 100,277 | ||
Class I | — | 525,468 | ||
Class R1 | 19,047 | 849 | ||
Class R2 | 42 | 6 | ||
Class R3 | 229 | 13 | ||
Class R4 | 45 | 6 | ||
Class R5 | 2 | 7 | ||
Class R6 | — | 18 | ||
Total | $1,328,396 | $1,190,765 |
Trustee expenses. The Fund compensates each Trustee who is not an employee of the Adviser or its affiliates. These Trustees may, for tax purposes, elect to defer receipt of this compensation under the John Hancock Group of Funds Deferred Compensation Plan (the Plan). Deferred amounts are invested in various John Hancock funds and remain in the funds until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting liability are included within Other receivables and prepaid expenses and Payable to affiliates — Trustees’ fees, respectively, in the accompanying Statement of assets and liabilities.
Note 5 — Fund share transactions
Transactions in Fund shares for the six months ended April 30, 2012 and for the year ended October 31, 2011 were as follows:
Six months ended 4-30-12 | Year ended 10-31-11 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,185,288 | $19,493,057 | 4,400,968 | $74,009,887 |
Distributions reinvested | 284,364 | 4,242,716 | 79,819 | 1,321,803 |
Repurchased | (8,001,554) | (129,438,770) | (28,926,457) | (468,803,434) |
Net decrease | (6,531,902) | ($105,702,997) | (24,445,670) | ($393,471,744) |
Class B shares | ||||
Sold | 33,874 | $550,063 | 97,396 | $1,612,210 |
Distributions reinvested | 4,487 | 66,232 | — | — |
Repurchased | (695,600) | (11,351,800) | (1,141,744) | (18,651,870) |
Net decrease | (657,239) | ($10,735,505) | (1,044,348) | ($17,039,660) |
Class C shares | ||||
Sold | 109,140 | $1,774,007 | 398,354 | $6,583,166 |
Distributions reinvested | 10,268 | 151,554 | — | — |
Repurchased | (969,997) | (15,684,278) | (2,494,280) | (40,909,335) |
Net decrease | (850,589) | ($13,758,717) | (2,095,926) | ($34,326,169) |
Class I shares | ||||
Sold | 14,029,624 | $226,746,821 | 31,023,421 | $495,570,608 |
Distributions reinvested | 776,085 | 11,579,180 | 272,964 | 4,523,018 |
Repurchased | (7,652,401) | (124,946,722) | (41,356,231) | (674,551,315) |
Net increase (decrease) | 7,153,308 | $113,379,279 | (10,059,846) | ($174,457,689) |
30 Classic Value Fund | Semiannual report |
Six months ended 4-30-12 | Year ended 10-31-11 | |||
Shares | Amount | Shares | Amount | |
Class R1 shares | ||||
Sold | 26,643 | $437,683 | 118,890 | $1,974,324 |
Distributions reinvested | 1,937 | 29,016 | — | — |
Repurchased | (102,158) | (1,723,687) | (239,488) | (4,024,331) |
Net decrease | (73,578) | ($1,256,988) | (120,598) | ($2,050,007) |
Class R2 shares1 | ||||
Sold | 5,855 | $100,000 | — | — |
Net increase | 5,855 | $100,000 | — | — |
Class R3 shares | ||||
Sold | 461 | $7,605 | 885 | $14,574 |
Distributions reinvested | 23 | 337 | — | — |
Repurchased | (73) | (1,252) | — | — |
Net increase | 411 | $6,690 | 885 | $14,574 |
Class R5 shares | ||||
Sold | 77 | $1,283 | 256 | $4,365 |
Distributions reinvested | 6 | 93 | — | — |
Repurchased | (405) | (6,891) | (34) | (509) |
Net increase (decrease) | (322) | ($5,515) | 222 | $3,856 |
Class R6 shares2 | ||||
Sold | — | — | 6,502 | $100,000 |
Net increase | — | — | 6,502 | $100,000 |
Net decrease | (954,056) | ($17,973,753) | (37,758,779) | ($621,226,839) |
1 Period from 3-1-12 (inception date) to 4-30-12.
2 Period from 9-1-11 (inception date) to 10-31-11.
Class R4 had no Fund share transactions for the six months ended April 30, 2012 and the year ended October 31, 2011.
Affiliates of the Fund owned 100%, 44%, 100%, 98% and 100% of shares of beneficial interest of Class R2, Class R3, Class R4, Class R5 and Class R6, respectively, on April 30, 2012.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term securities, aggregated $292,709,015 and $316,786,373, respectively, for the six months ended April 30, 2012.
Semiannual report | Classic Value Fund 31 |
More information
Trustees | Investment adviser |
Steven R. Pruchansky, Chairman | John Hancock Advisers, LLC |
William H. Cunningham | |
Deborah C. Jackson | Subadviser |
Stanley Martin* | Pzena Investment Management, LLC |
Hugh McHaffie† | |
Dr. John A. Moore,* Vice Chairman | Principal distributor |
Patti McGill Peterson* | John Hancock Funds, LLC |
Gregory A. Russo | |
John G. Vrysen† | Custodian |
State Street Bank and Trust Company | |
Officers | |
Keith F. Hartstein | Transfer agent |
President and Chief Executive Officer | John Hancock Signature Services, Inc. |
Andrew G. Arnott | Legal counsel |
Senior Vice President and Chief Operating Officer | K&L Gates LLP |
Thomas M. Kinzler | |
Secretary and Chief Legal Officer | |
Francis V. Knox, Jr. | |
Chief Compliance Officer | |
Charles A. Rizzo | |
Chief Financial Officer | |
Salvatore Schiavone | |
Treasurer | |
*Member of the Audit Committee | |
†Non-Independent Trustee |
The Fund’s proxy voting policies and procedures, as well as the Fund’s proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) Web site at www.sec.gov or on our Web site.
The Fund’s complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form N-Q. The Fund’s Form N-Q is available on our Web site and the SEC’s Web site, www.sec.gov, and can be reviewed and copied (for a fee) at the SEC’s Public Reference Room in Washington, DC. Call 1-202-551-8090 to receive information on the operation of the SEC’s Public Reference Room.
We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our Web site at www.jhfunds.com or by calling 1-800-225-5291.
You can also contact us: | ||
1-800-225-5291 | Regular mail: | Express mail: |
jhfunds.com | John Hancock Signature Services, Inc. | John Hancock Signature Services, Inc. |
P.O. Box 55913 | Mutual Fund Image Operations | |
Boston, MA 02205-5913 | 30 Dan Road | |
Canton, MA 02021 |
32 Classic Value Fund | Semiannual report |
1-800-225-5291
1-800-554-6713 TDD
1-800-338-8080 EASI-Line
www.jhfunds.com
Now available: electronic delivery
www.jhfunds.com/edelivery
This report is for the information of the shareholders of John Hancock Classic Value Fund. | 38SA 4/12 |
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | 6/12 |
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) Not applicable.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached “John Hancock Funds – Nominating, Governance and Administration Committee Charter.”
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(b) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.
(c)(1) Submission of Matters to a Vote of Security Holders is attached. See attached “John Hancock Funds – Nominating, Governance and Administration Committee Charter.”
(c)(2) Contact person at the registrant.
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 Capital Series | |
By: | /s/ Keith F. Hartstein |
------------------------------ | |
Keith F. Hartstein | |
President and Chief Executive Officer | |
Date: | June 26, 2012 |
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: | Keith F. Hartstein |
------------------------------- | |
Keith F. Hartstein | |
President and Chief Executive Officer | |
Date: | June 26, 2012 |
By: | /s/ Charles A. Rizzo |
----------------------------- | |
Charles A. Rizzo | |
Chief Financial Officer | |
Date: | June 26, 2012 |