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- 03999
John Hancock Investment Trust II
(Exact name of registrant as specified in charter)
200 Berkeley Street, Boston, Massachusetts 02116 (Address of principal executive offices) (Zip code)
Salvatore Schiavone
Treasurer
200 Berkeley Street
Boston, Massachusetts 02116
(Name and address of agent for service) Registrant's telephone number, including area code: 617-543-9634
Date of fiscal year end: | October 31 |
Date of reporting period: | April 30, 2023 |
ITEM 1. REPORTS TO STOCKHOLDERS
The Registrant prepared the following semi-annual reports to shareholders for the period ended April 30, 2023:
• John Hancock Financial Industries Fund
• John Hancock Regional Bank Fund
Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | 1 |
2 | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 4/30/2023 (% of net assets) | |
Markel Corp. | 3.4 |
Wells Fargo & Company | 3.2 |
Regions Financial Corp. | 2.9 |
Ameriprise Financial, Inc. | 2.9 |
Morgan Stanley | 2.9 |
Arch Capital Group, Ltd. | 2.5 |
Ares Management Corp., Class A | 2.3 |
Sumitomo Mitsui Financial Group, Inc. | 2.2 |
S&P Global, Inc. | 2.2 |
JPMorgan Chase & Co. | 2.2 |
TOTAL | 26.7 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | 3 |
COUNTRY COMPOSITION AS OF 4/30/2023 (% of net assets) | |
United States | 80.2 |
Bermuda | 5.6 |
Canada | 3.3 |
France | 2.7 |
Switzerland | 2.5 |
Japan | 2.2 |
Netherlands | 2.1 |
Puerto Rico | 1.4 |
TOTAL | 100.0 |
4 | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | 5 |
Account value on 11-1-2022 | Ending value on 4-30-2023 | Expenses paid during period ended 4-30-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $883.90 | $5.56 | 1.19% |
Hypothetical example | 1,000.00 | 1,018.90 | 5.96 | 1.19% | |
Class C | Actual expenses/actual returns | 1,000.00 | 880.00 | 9.14 | 1.96% |
Hypothetical example | 1,000.00 | 1,015.10 | 9.79 | 1.96% | |
Class I | Actual expenses/actual returns | 1,000.00 | 884.30 | 4.49 | 0.96% |
Hypothetical example | 1,000.00 | 1,020.00 | 4.81 | 0.96% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 885.40 | 4.02 | 0.86% |
Hypothetical example | 1,000.00 | 1,020.50 | 4.31 | 0.86% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 884.90 | 3.97 | 0.85% |
Hypothetical example | 1,000.00 | 1,020.60 | 4.26 | 0.85% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
6 | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 96.5% | $469,896,796 | ||||
(Cost $442,270,776) | |||||
Financials 93.6% | 455,736,409 | ||||
Banks 45.0% | |||||
1st Source Corp. | 88,867 | 3,703,977 | |||
American Business Bank (A) | 115,423 | 3,832,044 | |||
Atlantic Union Bankshares Corp. | 168,426 | 4,820,352 | |||
Bank of America Corp. | 358,191 | 10,487,832 | |||
Bank of Marin Bancorp | 149,340 | 2,632,864 | |||
BayCom Corp. | 137,866 | 2,299,605 | |||
BNP Paribas SA | 164,838 | 10,650,746 | |||
Business First Bancshares, Inc. | 139,827 | 2,156,132 | |||
California BanCorp (A) | 115,306 | 2,036,304 | |||
Cambridge Bancorp | 81,140 | 4,190,881 | |||
Central Valley Community Bancorp | 33,289 | 486,019 | |||
Citizens Community Bancorp, Inc. | 75,841 | 764,477 | |||
Citizens Financial Group, Inc. | 338,027 | 10,458,555 | |||
Coastal Financial Corp. (A) | 127,761 | 4,631,336 | |||
Comerica, Inc. | 140,720 | 6,103,026 | |||
Enterprise Bancorp, Inc. | 55,873 | 1,611,377 | |||
ESSA Bancorp, Inc. | 73,966 | 1,190,113 | |||
Evans Bancorp, Inc. | 69,113 | 2,132,136 | |||
Fifth Third Bancorp | 368,011 | 9,641,888 | |||
First Citizens BancShares, Inc., Class A | 1,484 | 1,494,655 | |||
First Merchants Corp. | 171,863 | 5,014,962 | |||
German American Bancorp, Inc. | 76,252 | 2,216,646 | |||
HBT Financial, Inc. | 181,584 | 3,203,142 | |||
Independent Bank Corp. (Massachusetts) | 81,164 | 4,545,184 | |||
ING Groep NV | 820,321 | 10,173,857 | |||
JPMorgan Chase & Co. | 77,869 | 10,764,611 | |||
Landmark Bancorp, Inc. | 54,189 | 1,097,327 | |||
M&T Bank Corp. | 59,031 | 7,426,100 | |||
Mid Penn Bancorp, Inc. | 28,884 | 653,356 | |||
Nicolet Bankshares, Inc. (A) | 86,985 | 4,985,110 | |||
Pinnacle Financial Partners, Inc. | 49,140 | 2,664,862 | |||
Popular, Inc. | 117,970 | 7,079,380 | |||
Premier Financial Corp. | 179,901 | 2,988,156 | |||
Regions Financial Corp. | 783,836 | 14,312,845 | |||
Southern First Bancshares, Inc. (A) | 52,180 | 1,439,124 | |||
Stock Yards Bancorp, Inc. | 136,741 | 6,645,613 | |||
Sumitomo Mitsui Financial Group, Inc. | 266,800 | 10,905,082 | |||
The First Bancshares, Inc. | 78,506 | 1,970,501 | |||
Timberland Bancorp, Inc. | 39,253 | 1,010,765 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | 7 |
Shares | Value | ||||
Financials (continued) | |||||
Banks (continued) | |||||
TriCo Bancshares | 174,876 | $6,262,310 | |||
U.S. Bancorp | 273,329 | 9,369,718 | |||
Webster Financial Corp. | 65,210 | 2,432,333 | |||
Wells Fargo & Company | 393,463 | 15,640,153 | |||
Westamerica BanCorp | 26,536 | 1,074,973 | |||
Capital markets 22.0% | |||||
AllianceBernstein Holding LP | 209,503 | 7,324,225 | |||
Ameriprise Financial, Inc. | 46,488 | 14,184,419 | |||
Ares Management Corp., Class A | 128,728 | 11,275,286 | |||
Brookfield Asset Management, Ltd., Class A | 91,219 | 3,060,397 | |||
Brookfield Corp. | 212,076 | 6,883,987 | |||
Federated Hermes, Inc. | 143,227 | 5,928,166 | |||
KKR & Company, Inc. | 104,093 | 5,524,216 | |||
Morgan Stanley | 155,692 | 14,007,609 | |||
Nasdaq, Inc. | 80,410 | 4,452,302 | |||
Onex Corp. | 130,957 | 6,030,488 | |||
S&P Global, Inc. | 29,965 | 10,864,710 | |||
Stifel Financial Corp. (B) | 74,359 | 4,459,309 | |||
The Charles Schwab Corp. | 145,718 | 7,612,308 | |||
Tradeweb Markets, Inc., Class A | 75,340 | 5,304,689 | |||
Consumer finance 1.3% | |||||
American Express Company | 39,431 | 6,361,798 | |||
Financial services 3.8% | |||||
Berkshire Hathaway, Inc., Class B (A) | 16,092 | 5,287,027 | |||
Corebridge Financial, Inc. | 361,691 | 6,098,110 | |||
Visa, Inc., Class A | 31,151 | 7,249,772 | |||
Insurance 21.5% | |||||
Arch Capital Group, Ltd. (A) | 164,472 | 12,346,913 | |||
Arthur J. Gallagher & Company | 39,322 | 8,181,335 | |||
Chubb, Ltd. | 31,416 | 6,332,209 | |||
James River Group Holdings, Ltd. | 292,861 | 5,702,004 | |||
Markel Corp. (A) | 12,190 | 16,682,381 | |||
Reinsurance Group of America, Inc. | 69,112 | 9,836,020 | |||
RenaissanceRe Holdings, Ltd. | 42,855 | 9,231,396 | |||
Skyward Specialty Insurance Group, Inc. (A)(B) | 214,964 | 4,595,930 | |||
Swiss Re AG | 58,334 | 5,874,462 | |||
The Allstate Corp. | 66,408 | 7,687,390 | |||
The Travelers Companies, Inc. | 44,305 | 8,025,408 | |||
Unum Group | 240,088 | 10,131,714 |
8 | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Real estate 2.9% | $14,160,387 | ||||
Industrial REITs 2.9% | |||||
Prologis, Inc. | 62,156 | 7,785,039 | |||
Rexford Industrial Realty, Inc. | 114,315 | 6,375,348 | |||
Rate (%) | Maturity date | Par value^ | Value | ||
Convertible bonds 0.6% | $2,541,545 | ||||
(Cost $2,743,628) | |||||
Financials 0.6% | 2,541,545 | ||||
Mortgage real estate investment trusts 0.6% | |||||
Redwood Trust, Inc. (C) | 7.750 | 06-15-27 | 3,076,000 | 2,541,545 | |
Corporate bonds 0.5% | $2,540,121 | ||||
(Cost $2,484,052) | |||||
Financials 0.5% | 2,540,121 | ||||
Banks 0.5% | |||||
BNP Paribas SA (7.750% to 8-16-29, then 5 Year CMT + 4.899%) (C)(D) | 7.750 | 08-16-29 | 2,102,000 | 2,007,410 | |
BNP Paribas SA (9.250% to 11-17-27, then 5 Year CMT + 4.969%) (C)(D) | 9.250 | 11-17-27 | 518,000 | 532,711 | |
Yield (%) | Shares | Value | |||
Short-term investments 1.1% | $5,267,177 | ||||
(Cost $5,267,062) | |||||
Short-term funds 1.1% | 5,267,177 | ||||
John Hancock Collateral Trust (E) | 4.9058(F) | 526,871 | 5,267,177 |
Total investments (Cost $452,765,518) 98.7% | $480,245,639 | ||||
Other assets and liabilities, net 1.3% | 6,534,676 | ||||
Total net assets 100.0% | $486,780,315 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
CMT | Constant Maturity Treasury |
(A) | Non-income producing security. |
(B) | All or a portion of this security is on loan as of 4-30-23. |
(C) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(D) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(E) | Investment is an affiliate of the fund, the advisor and/or subadvisor. A portion of this security represents the investment of cash collateral received for securities lending. Market value of this investment amounted to $2,301,031. |
(F) | The rate shown is the annualized seven-day yield as of 4-30-23. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | 9 |
Assets | |
Unaffiliated investments, at value (Cost $447,498,456) including $2,230,646 of securities loaned | $474,978,462 |
Affiliated investments, at value (Cost $5,267,062) | 5,267,177 |
Total investments, at value (Cost $452,765,518) | 480,245,639 |
Cash | 77,524 |
Foreign currency, at value (Cost $535) | 538 |
Dividends and interest receivable | 1,091,885 |
Receivable for fund shares sold | 80,076 |
Receivable for investments sold | 8,730,478 |
Receivable for securities lending income | 45,164 |
Other assets | 97,255 |
Total assets | 490,368,559 |
Liabilities | |
Payable for investments purchased | 748,748 |
Payable for fund shares repurchased | 367,485 |
Payable upon return of securities loaned | 2,300,876 |
Payable to affiliates | |
Accounting and legal services fees | 30,634 |
Transfer agent fees | 22,234 |
Distribution and service fees | 49,409 |
Trustees’ fees | 603 |
Other liabilities and accrued expenses | 68,255 |
Total liabilities | 3,588,244 |
Net assets | $486,780,315 |
Net assets consist of | |
Paid-in capital | $443,371,693 |
Total distributable earnings (loss) | 43,408,622 |
Net assets | $486,780,315 |
10 | JOHN HANCOCK Financial Industries Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($209,373,516 ÷ 15,404,781 shares)1 | $13.59 |
Class C ($7,501,685 ÷ 648,916 shares)1 | $11.56 |
Class I ($26,615,064 ÷ 1,962,356 shares) | $13.56 |
Class R6 ($1,848,738 ÷ 136,255 shares) | $13.57 |
Class NAV ($241,441,312 ÷ 17,803,626 shares) | $13.56 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $14.31 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Financial Industries Fund | 11 |
Investment income | |
Dividends | $7,614,706 |
Interest | 288,885 |
Dividends from affiliated investments | 154,795 |
Securities lending | 102,062 |
Less foreign taxes withheld | (163,476) |
Total investment income | 7,996,972 |
Expenses | |
Investment management fees | 2,159,140 |
Distribution and service fees | 310,844 |
Accounting and legal services fees | 52,348 |
Transfer agent fees | 161,155 |
Trustees’ fees | 7,119 |
Custodian fees | 38,328 |
State registration fees | 35,719 |
Printing and postage | 20,892 |
Professional fees | 35,238 |
Other | 27,340 |
Total expenses | 2,848,123 |
Less expense reductions | (21,503) |
Net expenses | 2,826,620 |
Net investment income | 5,170,352 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 15,162,371 |
Affiliated investments | 11,398 |
15,173,769 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (87,366,168) |
Affiliated investments | (115) |
(87,366,283) | |
Net realized and unrealized loss | (72,192,514) |
Decrease in net assets from operations | $(67,022,162) |
12 | JOHN HANCOCK Financial Industries Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Six months ended 4-30-23 (unaudited) | Year ended 10-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $5,170,352 | $8,175,471 |
Net realized gain | 15,173,769 | 60,867,068 |
Change in net unrealized appreciation (depreciation) | (87,366,283) | (162,751,482) |
Decrease in net assets resulting from operations | (67,022,162) | (93,708,943) |
Distributions to shareholders | ||
From earnings | ||
Class A | (24,496,676) | (58,215,171) |
Class C | (978,548) | (3,003,682) |
Class I | (4,170,159) | (9,168,264) |
Class R6 | (201,037) | (348,610) |
Class NAV | (29,117,821) | (77,443,777) |
Total distributions | (58,964,241) | (148,179,504) |
From fund share transactions | 21,119,061 | 36,820,640 |
Total decrease | (104,867,342) | (205,067,807) |
Net assets | ||
Beginning of period | 591,647,657 | 796,715,464 |
End of period | $486,780,315 | $591,647,657 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Financial Industries Fund | 13 |
CLASS A SHARES Period ended | 4-30-231 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $17.14 | $24.22 | $16.15 | $19.34 | $18.97 | $21.12 |
Net investment income2 | 0.13 | 0.18 | 0.15 | 0.15 | 0.22 | 0.19 |
Net realized and unrealized gain (loss) on investments | (2.01) | (2.80) | 8.92 | (1.89) | 1.37 | (0.69) |
Total from investment operations | (1.88) | (2.62) | 9.07 | (1.74) | 1.59 | (0.50) |
Less distributions | ||||||
From net investment income | (0.13) | (0.43) | (0.23) | (0.24) | (0.14) | (0.43) |
From net realized gain | (1.54) | (4.03) | (0.77) | (1.21) | (1.08) | (1.22) |
Total distributions | (1.67) | (4.46) | (1.00) | (1.45) | (1.22) | (1.65) |
Net asset value, end of period | $13.59 | $17.14 | $24.22 | $16.15 | $19.34 | $18.97 |
Total return (%)3,4 | (11.61)5 | (12.33) | 58.18 | (10.06) | 9.55 | (2.78) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $209 | $256 | $318 | $211 | $261 | $278 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.206 | 1.21 | 1.21 | 1.23 | 1.21 | 1.22 |
Expenses including reductions | 1.196 | 1.20 | 1.20 | 1.22 | 1.21 | 1.21 |
Net investment income | 1.696 | 1.01 | 0.70 | 0.90 | 1.20 | 0.92 |
Portfolio turnover (%) | 39 | 45 | 64 | 40 | 28 | 23 |
1 | Six months ended 4-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
14 | JOHN HANCOCK Financial Industries Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 4-30-231 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $14.77 | $21.45 | $14.39 | $17.39 | $17.17 | $19.26 |
Net investment income (loss)2 | 0.06 | 0.04 | (0.01) | 0.02 | 0.08 | 0.04 |
Net realized and unrealized gain (loss) on investments | (1.73) | (2.44) | 7.95 | (1.70) | 1.22 | (0.62) |
Total from investment operations | (1.67) | (2.40) | 7.94 | (1.68) | 1.30 | (0.58) |
Less distributions | ||||||
From net investment income | —3 | (0.25) | (0.11) | (0.11) | — | (0.29) |
From net realized gain | (1.54) | (4.03) | (0.77) | (1.21) | (1.08) | (1.22) |
Total distributions | (1.54) | (4.28) | (0.88) | (1.32) | (1.08) | (1.51) |
Net asset value, end of period | $11.56 | $14.77 | $21.45 | $14.39 | $17.39 | $17.17 |
Total return (%)4,5 | (12.00)6 | (12.88) | 57.01 | (10.82) | 8.75 | (3.46) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $8 | $10 | $15 | $14 | $23 | $30 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.977 | 1.95 | 1.95 | 1.98 | 1.96 | 1.95 |
Expenses including reductions | 1.967 | 1.94 | 1.94 | 1.97 | 1.95 | 1.94 |
Net investment income (loss) | 0.927 | 0.26 | (0.04) | 0.16 | 0.47 | 0.21 |
Portfolio turnover (%) | 39 | 45 | 64 | 40 | 28 | 23 |
1 | Six months ended 4-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Does not reflect the effect of sales charges, if any. |
6 | Not annualized. |
7 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Financial Industries Fund | 15 |
CLASS I SHARES Period ended | 4-30-231 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $17.15 | $24.21 | $16.13 | $19.33 | $18.98 | $21.14 |
Net investment income2 | 0.14 | 0.23 | 0.21 | 0.20 | 0.27 | 0.24 |
Net realized and unrealized gain (loss) on investments | (2.01) | (2.79) | 8.91 | (1.90) | 1.34 | (0.69) |
Total from investment operations | (1.87) | (2.56) | 9.12 | (1.70) | 1.61 | (0.45) |
Less distributions | ||||||
From net investment income | (0.18) | (0.47) | (0.27) | (0.29) | (0.18) | (0.49) |
From net realized gain | (1.54) | (4.03) | (0.77) | (1.21) | (1.08) | (1.22) |
Total distributions | (1.72) | (4.50) | (1.04) | (1.50) | (1.26) | (1.71) |
Net asset value, end of period | $13.56 | $17.15 | $24.21 | $16.13 | $19.33 | $18.98 |
Total return (%)3 | (11.57)4 | (12.05) | 58.63 | (9.92) | 9.87 | (2.57) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $27 | $36 | $47 | $21 | $44 | $41 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.975 | 0.95 | 0.95 | 0.98 | 0.96 | 0.96 |
Expenses including reductions | 0.965 | 0.94 | 0.94 | 0.97 | 0.96 | 0.95 |
Net investment income | 1.885 | 1.27 | 0.97 | 1.18 | 1.46 | 1.18 |
Portfolio turnover (%) | 39 | 45 | 64 | 40 | 28 | 23 |
1 | Six months ended 4-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
16 | JOHN HANCOCK Financial Industries Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 4-30-231 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $17.16 | $24.24 | $16.15 | $19.34 | $18.99 | $21.14 |
Net investment income2 | 0.15 | 0.25 | 0.23 | 0.20 | 0.28 | 0.29 |
Net realized and unrealized gain (loss) on investments | (2.00) | (2.80) | 8.92 | (1.87) | 1.35 | (0.71) |
Total from investment operations | (1.85) | (2.55) | 9.15 | (1.67) | 1.63 | (0.42) |
Less distributions | ||||||
From net investment income | (0.20) | (0.50) | (0.29) | (0.31) | (0.20) | (0.51) |
From net realized gain | (1.54) | (4.03) | (0.77) | (1.21) | (1.08) | (1.22) |
Total distributions | (1.74) | (4.53) | (1.06) | (1.52) | (1.28) | (1.73) |
Net asset value, end of period | $13.57 | $17.16 | $24.24 | $16.15 | $19.34 | $18.99 |
Total return (%)3 | (11.46)4 | (11.97) | 58.71 | (9.77) | 9.99 | (2.42) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $2 | $2 | $2 | $1 | $1 | $—5 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.876 | 0.84 | 0.84 | 0.86 | 0.85 | 0.85 |
Expenses including reductions | 0.866 | 0.84 | 0.84 | 0.85 | 0.85 | 0.84 |
Net investment income | 2.026 | 1.39 | 1.09 | 1.26 | 1.54 | 1.44 |
Portfolio turnover (%) | 39 | 45 | 64 | 40 | 28 | 23 |
1 | Six months ended 4-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Less than $500,000. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Financial Industries Fund | 17 |
CLASS NAV SHARES Period ended | 4-30-231 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $17.16 | $24.23 | $16.14 | $19.34 | $18.98 | $21.14 |
Net investment income2 | 0.15 | 0.25 | 0.23 | 0.21 | 0.29 | 0.27 |
Net realized and unrealized gain (loss) on investments | (2.01) | (2.79) | 8.92 | (1.89) | 1.36 | (0.70) |
Total from investment operations | (1.86) | (2.54) | 9.15 | (1.68) | 1.65 | (0.43) |
Less distributions | ||||||
From net investment income | (0.20) | (0.50) | (0.29) | (0.31) | (0.21) | (0.51) |
From net realized gain | (1.54) | (4.03) | (0.77) | (1.21) | (1.08) | (1.22) |
Total distributions | (1.74) | (4.53) | (1.06) | (1.52) | (1.29) | (1.73) |
Net asset value, end of period | $13.56 | $17.16 | $24.23 | $16.14 | $19.34 | $18.98 |
Total return (%)3 | (11.51)4 | (11.95) | 58.83 | (9.81) | 10.02 | (2.41) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $241 | $288 | $414 | $330 | $422 | $463 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.865 | 0.84 | 0.83 | 0.85 | 0.84 | 0.84 |
Expenses including reductions | 0.855 | 0.83 | 0.83 | 0.84 | 0.83 | 0.83 |
Net investment income | 2.035 | 1.38 | 1.08 | 1.27 | 1.59 | 1.30 |
Portfolio turnover (%) | 39 | 45 | 64 | 40 | 28 | 23 |
1 | Six months ended 4-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
18 | JOHN HANCOCK Financial Industries Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
SEMIANNUAL REPORT | JOHN HANCOCK Financial Industries Fund | 19 |
Total value at 4-30-23 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Financials | ||||
Banks | $219,200,429 | $187,470,744 | $31,729,685 | — |
Capital markets | 106,912,111 | 106,912,111 | — | — |
Consumer finance | 6,361,798 | 6,361,798 | — | — |
Financial services | 18,634,909 | 18,634,909 | — | — |
Insurance | 104,627,162 | 98,752,700 | 5,874,462 | — |
Real estate | ||||
Industrial REITs | 14,160,387 | 14,160,387 | — | — |
Convertible bonds | 2,541,545 | — | 2,541,545 | — |
Corporate bonds | 2,540,121 | — | 2,540,121 | — |
Short-term investments | 5,267,177 | 5,267,177 | — | — |
Total investments in securities | $480,245,639 | $437,559,826 | $42,685,813 | — |
20 | JOHN HANCOCK Financial Industries Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Financial Industries Fund | 21 |
22 | JOHN HANCOCK Financial Industries Fund | SEMIANNUAL REPORT |
Class | Expense reduction |
Class A | $9,094 |
Class C | 337 |
Class I | 1,418 |
Class | Expense reduction |
Class R6 | $74 |
Class NAV | 10,580 |
Total | $21,503 |
SEMIANNUAL REPORT | JOHN HANCOCK Financial Industries Fund | 23 |
Class | Rule 12b-1 Fee |
Class A | 0.30% |
Class C | 1.00% |
Class | Distribution and service fees | Transfer agent fees |
Class A | $267,440 | $135,099 |
Class C | 43,404 | 4,989 |
24 | JOHN HANCOCK Financial Industries Fund | SEMIANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class I | — | $20,970 |
Class R6 | — | 97 |
Total | $310,844 | $161,155 |
Six Months Ended 4-30-23 | Year Ended 10-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 276,406 | $4,127,728 | 971,753 | $18,124,322 |
Distributions reinvested | 1,492,404 | 21,714,474 | 2,760,934 | 51,546,629 |
Repurchased | (1,273,561) | (19,105,898) | (1,950,068) | (35,201,865) |
Net increase | 495,249 | $6,736,304 | 1,782,619 | $34,469,086 |
Class C shares | ||||
Sold | 36,758 | $464,856 | 107,119 | $1,773,612 |
Distributions reinvested | 72,242 | 896,521 | 170,601 | 2,760,320 |
Repurchased | (118,347) | (1,538,057) | (334,424) | (5,313,119) |
Net decrease | (9,347) | $(176,680) | (56,704) | $(779,187) |
Class I shares | ||||
Sold | 894,796 | $14,501,167 | 712,987 | $13,644,239 |
Distributions reinvested | 213,549 | 3,098,601 | 446,118 | 8,311,174 |
Repurchased | (1,274,438) | (19,308,407) | (981,012) | (17,355,587) |
Net increase (decrease) | (166,093) | $(1,708,639) | 178,093 | $4,599,826 |
Class R6 shares | ||||
Sold | 43,467 | $665,487 | 61,250 | $1,140,112 |
Distributions reinvested | 13,855 | 201,037 | 18,712 | 348,610 |
Repurchased | (36,827) | (567,441) | (40,558) | (812,789) |
Net increase | 20,495 | $299,083 | 39,404 | $675,933 |
Class NAV shares | ||||
Sold | 784,775 | $11,402,820 | 554,703 | $10,730,578 |
Distributions reinvested | 2,008,126 | 29,117,821 | 4,159,172 | 77,443,777 |
Repurchased | (1,766,413) | (24,551,648) | (5,040,874) | (90,319,373) |
Net increase (decrease) | 1,026,488 | $15,968,993 | (326,999) | $(2,145,018) |
Total net increase | 1,366,792 | $21,119,061 | 1,616,413 | $36,820,640 |
SEMIANNUAL REPORT | JOHN HANCOCK Financial Industries Fund | 25 |
Fund | Affiliated Concentration |
JHF II Multimanager Lifestyle Growth Portfolio | 16.9% |
JHF II Multimanager Lifestyle Balanced Portfolio | 12.1% |
JHF II Multimanager Lifestyle Aggressive Portfolio | 7.3% |
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
John Hancock Collateral Trust* | 526,871 | $9,842,353 | $129,577,362 | $(134,163,821) | $11,398 | $(115) | $256,857 | — | $5,267,177 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
26 | JOHN HANCOCK Financial Industries Fund | SEMIANNUAL REPORT |
• | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
• | The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund; |
SEMIANNUAL REPORT | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | 27 |
• | The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, that would require reporting to the Securities and Exchange Commission; |
• | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
• | The Chief Compliance Officer’s office, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to be operating effectively and in compliance with the Board approved procedures. |
28 | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | SEMIANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†,#
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Ryan P. Lentell, CFA
You can also contact us: | ||
800-225-5291 | Regular mail: | Express mail: |
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
SEMIANNUAL REPORT | JOHN HANCOCK FINANCIAL INDUSTRIES FUND | 29 |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF2879779 | 70SA 4/23 |
Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK REGIONAL BANK FUND | 1 |
2 | JOHN HANCOCK REGIONAL BANK FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 4/30/2023 (% of net assets) | |
M&T Bank Corp. | 3.3 |
Regions Financial Corp. | 3.0 |
Huntington Bancshares, Inc. | 3.0 |
JPMorgan Chase & Co. | 3.0 |
Citizens Financial Group, Inc. | 3.0 |
U.S. Bancorp | 2.5 |
Bank of America Corp. | 2.5 |
Fifth Third Bancorp | 2.4 |
The PNC Financial Services Group, Inc. | 2.3 |
Pinnacle Financial Partners, Inc. | 2.3 |
TOTAL | 27.3 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK REGIONAL BANK FUND | 3 |
4 | JOHN HANCOCK REGIONAL BANK FUND | SEMIANNUAL REPORT |
Account value on 11-1-2022 | Ending value on 4-30-2023 | Expenses paid during period ended 4-30-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $732.30 | $4.98 | 1.16% |
Hypothetical example | 1,000.00 | 1,019.00 | 5.81 | 1.16% | |
Class C | Actual expenses/actual returns | 1,000.00 | 729.60 | 8.32 | 1.94% |
Hypothetical example | 1,000.00 | 1,015.20 | 9.69 | 1.94% | |
Class I | Actual expenses/actual returns | 1,000.00 | 733.00 | 4.04 | 0.94% |
Hypothetical example | 1,000.00 | 1,020.10 | 4.71 | 0.94% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 733.50 | 3.61 | 0.84% |
Hypothetical example | 1,000.00 | 1,020.60 | 4.21 | 0.84% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
SEMIANNUAL REPORT | JOHN HANCOCK REGIONAL BANK FUND | 5 |
Shares | Value | ||||
Common stocks 99.5% | $806,112,780 | ||||
(Cost $584,109,780) | |||||
Financials 99.5% | 806,112,780 | ||||
Banks 99.5% | |||||
1st Source Corp. | 165,043 | 6,878,992 | |||
American Business Bank (A) | 152,505 | 5,063,166 | |||
Ameris Bancorp | 313,167 | 10,491,095 | |||
Atlantic Union Bankshares Corp. | 330,395 | 9,455,905 | |||
Bank of America Corp. | 692,297 | 20,270,456 | |||
Bank of Marin Bancorp | 268,527 | 4,734,131 | |||
Bank7 Corp. | 167,300 | 4,011,854 | |||
Banner Corp. | 115,745 | 5,777,990 | |||
Bar Harbor Bankshares | 209,627 | 5,198,750 | |||
BayCom Corp. | 243,432 | 4,060,446 | |||
Business First Bancshares, Inc. | 260,503 | 4,016,956 | |||
C&F Financial Corp. | 56,827 | 3,026,038 | |||
Cadence Bank | 364,349 | 7,367,137 | |||
California BanCorp (A) | 178,346 | 3,149,590 | |||
Cambridge Bancorp | 138,232 | 7,139,683 | |||
Camden National Corp. | 125,512 | 4,010,108 | |||
CB Financial Services, Inc. | 83,013 | 1,786,855 | |||
Central Pacific Financial Corp. | 210,615 | 3,344,566 | |||
Central Valley Community Bancorp | 187,033 | 2,730,682 | |||
Citizens Community Bancorp, Inc. | 298,088 | 3,004,727 | |||
Citizens Financial Group, Inc. | 773,149 | 23,921,230 | |||
Civista Bancshares, Inc. | 275,596 | 4,373,709 | |||
Coastal Financial Corp. (A) | 263,521 | 9,552,636 | |||
Codorus Valley Bancorp, Inc. | 148,328 | 2,916,128 | |||
Colony Bankcorp, Inc. | 134,132 | 1,325,224 | |||
Columbia Banking System, Inc. | 507,212 | 10,834,048 | |||
Comerica, Inc. | 360,571 | 15,637,964 | |||
ConnectOne Bancorp, Inc. | 233,619 | 3,686,508 | |||
Cullen/Frost Bankers, Inc. | 136,563 | 15,056,071 | |||
CVB Financial Corp. | 263,253 | 3,940,897 | |||
Eagle Bancorp Montana, Inc. | 186,235 | 2,611,015 | |||
East West Bancorp, Inc. | 218,923 | 11,316,130 | |||
Enterprise Bancorp, Inc. | 105,261 | 3,035,727 | |||
Equity Bancshares, Inc., Class A | 215,951 | 5,085,646 | |||
ESSA Bancorp, Inc. | 142,467 | 2,292,294 | |||
Evans Bancorp, Inc. | 115,760 | 3,571,196 | |||
Farmers & Merchants Bancorp, Inc. | 161,463 | 3,681,356 | |||
Farmers National Banc Corp. | 239,808 | 2,803,356 | |||
Fifth Third Bancorp | 728,757 | 19,093,433 |
6 | JOHN HANCOCK REGIONAL BANK FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Banks (continued) | |||||
First Business Financial Services, Inc. | 177,893 | $5,103,750 | |||
First Citizens BancShares, Inc., Class A | 2,534 | 2,552,194 | |||
First Community Corp. | 205,886 | 4,370,960 | |||
First Financial Bancorp | 482,029 | 9,978,000 | |||
First Interstate BancSystem, Inc., Class A | 398,207 | 10,190,117 | |||
First Merchants Corp. | 386,820 | 11,287,408 | |||
First Mid Bancshares, Inc. | 119,963 | 3,162,225 | |||
First Northwest Bancorp | 95,585 | 1,179,519 | |||
Flushing Financial Corp. | 91,888 | 1,105,413 | |||
German American Bancorp, Inc. | 202,918 | 5,898,826 | |||
Great Southern Bancorp, Inc. | 77,143 | 3,925,036 | |||
Hancock Whitney Corp. | 422,253 | 15,420,680 | |||
HBT Financial, Inc. | 337,779 | 5,958,422 | |||
Heritage Commerce Corp. | 953,737 | 8,106,765 | |||
Heritage Financial Corp. | 91,078 | 1,603,884 | |||
Horizon Bancorp, Inc. | 581,331 | 6,121,415 | |||
Huntington Bancshares, Inc. | 2,152,241 | 24,105,099 | |||
Independent Bank Corp. (Massachusetts) | 147,319 | 8,249,864 | |||
Independent Bank Corp. (Michigan) | 245,689 | 4,378,178 | |||
JPMorgan Chase & Co. | 173,492 | 23,983,534 | |||
KeyCorp | 1,607,452 | 18,099,910 | |||
Landmark Bancorp, Inc. | 93,548 | 1,894,347 | |||
Live Oak Bancshares, Inc. | 209,461 | 4,934,901 | |||
M&T Bank Corp. | 214,030 | 26,924,973 | |||
Metrocity Bankshares, Inc. | 117,616 | 1,923,022 | |||
Mid Penn Bancorp, Inc. | 105,133 | 2,378,108 | |||
MidWestOne Financial Group, Inc. | 228,357 | 4,726,990 | |||
NBT Bancorp, Inc. | 135,947 | 4,382,931 | |||
New York Community Bancorp, Inc. | 236,344 | 2,526,517 | |||
Nicolet Bankshares, Inc. (A) | 175,391 | 10,051,658 | |||
Northrim BanCorp, Inc. | 130,437 | 4,506,598 | |||
Ohio Valley Banc Corp. | 87,410 | 2,010,430 | |||
Old National Bancorp | 567,601 | 7,611,529 | |||
Old Second Bancorp, Inc. | 556,833 | 6,843,478 | |||
OP Bancorp | 369,610 | 3,359,755 | |||
Orange County Bancorp, Inc. | 65,010 | 2,360,513 | |||
Pinnacle Financial Partners, Inc. | 337,806 | 18,319,219 | |||
Plumas Bancorp | 93,252 | 3,572,484 | |||
Popular, Inc. | 226,154 | 13,571,502 | |||
Premier Financial Corp. | 488,124 | 8,107,740 | |||
Provident Financial Holdings, Inc. | 168,339 | 2,296,144 | |||
QCR Holdings, Inc. | 188,322 | 7,796,531 | |||
Red River Bancshares, Inc. | 84,368 | 3,880,928 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK REGIONAL BANK FUND | 7 |
Shares | Value | ||||
Financials (continued) | |||||
Banks (continued) | |||||
Regions Financial Corp. | 1,352,451 | $24,695,755 | |||
Renasant Corp. | 265,304 | 7,460,348 | |||
Riverview Bancorp, Inc. | 508,106 | 2,604,043 | |||
SB Financial Group, Inc. | 194,301 | 2,759,074 | |||
Shore Bancshares, Inc. | 275,682 | 3,661,057 | |||
Sierra Bancorp | 232,828 | 3,816,051 | |||
Southern First Bancshares, Inc. (A) | 145,803 | 4,021,247 | |||
Southern Missouri Bancorp, Inc. | 181,010 | 6,567,043 | |||
SouthState Corp. | 135,688 | 9,359,758 | |||
Stock Yards Bancorp, Inc. | 152,275 | 7,400,565 | |||
Synovus Financial Corp. | 422,102 | 13,000,742 | |||
The Community Financial Corp. | 129,586 | 3,952,373 | |||
The First Bancorp, Inc. | 133,155 | 3,288,929 | |||
The First Bancshares, Inc. | 201,147 | 5,048,790 | |||
The PNC Financial Services Group, Inc. | 144,897 | 18,872,834 | |||
Timberland Bancorp, Inc. | 191,606 | 4,933,855 | |||
TriCo Bancshares | 321,485 | 11,512,378 | |||
Truist Financial Corp. | 507,412 | 16,531,483 | |||
U.S. Bancorp | 595,505 | 20,413,911 | |||
Univest Financial Corp. | 198,571 | 3,995,249 | |||
Virginia National Bankshares Corp. | 116,681 | 3,818,969 | |||
Washington Trust Bancorp, Inc. | 18,153 | 510,281 | |||
Webster Financial Corp. | 235,074 | 8,768,260 | |||
Westamerica BanCorp | 150,652 | 6,102,913 | |||
Western Alliance Bancorp | 80,327 | 2,981,738 | |||
WSFS Financial Corp. | 478,884 | 16,842,350 | |||
Zions Bancorp NA | 508,887 | 14,177,592 | |||
Yield (%) | Shares | Value | |||
Short-term investments 0.5% | $4,048,275 | ||||
(Cost $4,048,102) | |||||
Short-term funds 0.5% | 4,048,275 | ||||
John Hancock Collateral Trust (B) | 4.9058(C) | 404,945 | 4,048,275 |
Total investments (Cost $588,157,882) 100.0% | $810,161,055 | ||||
Other assets and liabilities, net 0.0% | 112,439 | ||||
Total net assets 100.0% | $810,273,494 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
Security Abbreviations and Legend | |
(A) | Non-income producing security. |
(B) | Investment is an affiliate of the fund, the advisor and/or subadvisor. |
8 | JOHN HANCOCK REGIONAL BANK FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
(C) | The rate shown is the annualized seven-day yield as of 4-30-23. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK REGIONAL BANK FUND | 9 |
Assets | |
Unaffiliated investments, at value (Cost $584,109,780) | $806,112,780 |
Affiliated investments, at value (Cost $4,048,102) | 4,048,275 |
Total investments, at value (Cost $588,157,882) | 810,161,055 |
Dividends and interest receivable | 680,178 |
Receivable for fund shares sold | 656,334 |
Receivable for investments sold | 299,063 |
Other assets | 159,019 |
Total assets | 811,955,649 |
Liabilities | |
Payable for investments purchased | 17,342 |
Payable for fund shares repurchased | 1,276,666 |
Payable to affiliates | |
Accounting and legal services fees | 52,442 |
Transfer agent fees | 74,950 |
Distribution and service fees | 159,166 |
Trustees’ fees | 1,062 |
Other liabilities and accrued expenses | 100,527 |
Total liabilities | 1,682,155 |
Net assets | $810,273,494 |
Net assets consist of | |
Paid-in capital | $577,911,840 |
Total distributable earnings (loss) | 232,361,654 |
Net assets | $810,273,494 |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($492,617,248 ÷ 23,865,859 shares)1 | $20.64 |
Class C ($69,765,648 ÷ 3,583,795 shares)1 | $19.47 |
Class I ($243,562,528 ÷ 11,811,993 shares) | $20.62 |
Class R6 ($4,328,070 ÷ 209,897 shares) | $20.62 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $21.73 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
10 | JOHN HANCOCK Regional Bank Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $16,472,133 |
Dividends from affiliated investments | 209,435 |
Less foreign taxes withheld | (25,358) |
Total investment income | 16,656,210 |
Expenses | |
Investment management fees | 4,062,658 |
Distribution and service fees | 1,161,280 |
Accounting and legal services fees | 95,524 |
Transfer agent fees | 601,714 |
Trustees’ fees | 14,023 |
Custodian fees | 67,379 |
State registration fees | 46,910 |
Printing and postage | 38,742 |
Professional fees | 41,689 |
Other | 23,703 |
Total expenses | 6,153,622 |
Less expense reductions | (39,981) |
Net expenses | 6,113,641 |
Net investment income | 10,542,569 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | 12,474,853 |
Affiliated investments | 11,950 |
12,486,803 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (327,401,270) |
Affiliated investments | (351) |
(327,401,621) | |
Net realized and unrealized loss | (314,914,818) |
Decrease in net assets from operations | $(304,372,249) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Regional Bank Fund | 11 |
Six months ended 4-30-23 (unaudited) | Year ended 10-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $10,542,569 | $17,560,264 |
Net realized gain | 12,486,803 | 46,728,975 |
Change in net unrealized appreciation (depreciation) | (327,401,621) | (178,670,456) |
Decrease in net assets resulting from operations | (304,372,249) | (114,381,217) |
Distributions to shareholders | ||
From earnings | ||
Class A | (33,113,464) | (43,104,397) |
Class C | (4,864,720) | (5,866,896) |
Class I | (16,846,550) | (19,630,913) |
Class R6 | (325,223) | (1,132,941) |
Total distributions | (55,149,957) | (69,735,147) |
From fund share transactions | (28,533,848) | 54,876,189 |
Total decrease | (388,056,054) | (129,240,175) |
Net assets | ||
Beginning of period | 1,198,329,548 | 1,327,569,723 |
End of period | $810,273,494 | $1,198,329,548 |
12 | JOHN HANCOCK Regional Bank Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 4-30-231 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $29.71 | $34.06 | $19.47 | $26.12 | $26.12 | $27.34 |
Net investment income2 | 0.26 | 0.42 | 0.42 | 0.49 | 0.40 | 0.22 |
Net realized and unrealized gain (loss) on investments | (7.95) | (3.02) | 14.66 | (6.58) | 0.18 | (0.85) |
Total from investment operations | (7.69) | (2.60) | 15.08 | (6.09) | 0.58 | (0.63) |
Less distributions | ||||||
From net investment income | (0.26) | (0.44) | (0.41) | (0.49) | (0.39) | (0.21) |
From net realized gain | (1.12) | (1.31) | (0.08) | (0.07) | (0.19) | (0.38) |
Total distributions | (1.38) | (1.75) | (0.49) | (0.56) | (0.58) | (0.59) |
Net asset value, end of period | $20.64 | $29.71 | $34.06 | $19.47 | $26.12 | $26.12 |
Total return (%)3,4 | (26.77)5 | (7.79) | 78.08 | (23.24) | 2.47 | (2.46) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $493 | $724 | $839 | $515 | $845 | $1,066 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.176 | 1.23 | 1.22 | 1.24 | 1.24 | 1.22 |
Expenses including reductions | 1.166 | 1.22 | 1.21 | 1.23 | 1.23 | 1.21 |
Net investment income | 2.016 | 1.36 | 1.41 | 2.30 | 1.58 | 0.76 |
Portfolio turnover (%) | 3 | 11 | 10 | 1 | 4 | 3 |
1 | Six months ended 4-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Regional Bank Fund | 13 |
CLASS C SHARES Period ended | 4-30-231 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $28.09 | $32.28 | $18.46 | $24.79 | $24.79 | $25.98 |
Net investment income2 | 0.15 | 0.19 | 0.20 | 0.32 | 0.21 | 0.02 |
Net realized and unrealized gain (loss) on investments | (7.49) | (2.86) | 13.91 | (6.24) | 0.19 | (0.81) |
Total from investment operations | (7.34) | (2.67) | 14.11 | (5.92) | 0.40 | (0.79) |
Less distributions | ||||||
From net investment income | (0.16) | (0.21) | (0.21) | (0.34) | (0.21) | (0.02) |
From net realized gain | (1.12) | (1.31) | (0.08) | (0.07) | (0.19) | (0.38) |
Total distributions | (1.28) | (1.52) | (0.29) | (0.41) | (0.40) | (0.40) |
Net asset value, end of period | $19.47 | $28.09 | $32.28 | $18.46 | $24.79 | $24.79 |
Total return (%)3,4 | (27.04)5 | (8.46) | 76.91 | (23.85) | 1.81 | (3.14) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $70 | $108 | $123 | $84 | $191 | $283 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.956 | 1.94 | 1.93 | 1.96 | 1.94 | 1.92 |
Expenses including reductions | 1.946 | 1.93 | 1.92 | 1.95 | 1.93 | 1.91 |
Net investment income | 1.236 | 0.66 | 0.70 | 1.54 | 0.88 | 0.06 |
Portfolio turnover (%) | 3 | 11 | 10 | 1 | 4 | 3 |
1 | Six months ended 4-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
14 | JOHN HANCOCK Regional Bank Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 4-30-231 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $29.70 | $34.05 | $19.45 | $26.12 | $26.12 | $27.34 |
Net investment income2 | 0.29 | 0.51 | 0.50 | 0.55 | 0.48 | 0.30 |
Net realized and unrealized gain (loss) on investments | (7.95) | (3.02) | 14.67 | (6.59) | 0.17 | (0.85) |
Total from investment operations | (7.66) | (2.51) | 15.17 | (6.04) | 0.65 | (0.55) |
Less distributions | ||||||
From net investment income | (0.30) | (0.53) | (0.49) | (0.56) | (0.46) | (0.29) |
From net realized gain | (1.12) | (1.31) | (0.08) | (0.07) | (0.19) | (0.38) |
Total distributions | (1.42) | (1.84) | (0.57) | (0.63) | (0.65) | (0.67) |
Net asset value, end of period | $20.62 | $29.70 | $34.05 | $19.45 | $26.12 | $26.12 |
Total return (%)3 | (26.70)4 | (7.52) | 78.68 | (23.06) | 2.78 | (2.18) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $244 | $360 | $345 | $196 | $591 | $1,120 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.955 | 0.94 | 0.93 | 0.96 | 0.95 | 0.93 |
Expenses including reductions | 0.945 | 0.93 | 0.92 | 0.95 | 0.94 | 0.92 |
Net investment income | 2.225 | 1.66 | 1.68 | 2.49 | 1.88 | 1.05 |
Portfolio turnover (%) | 3 | 11 | 10 | 1 | 4 | 3 |
1 | Six months ended 4-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Regional Bank Fund | 15 |
CLASS R6 SHARES Period ended | 4-30-231 | 10-31-22 | 10-31-21 | 10-31-20 | 10-31-19 | 10-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $29.70 | $34.05 | $19.45 | $26.13 | $26.13 | $27.34 |
Net investment income2 | 0.31 | 0.57 | 0.51 | 0.57 | 0.50 | 0.32 |
Net realized and unrealized gain (loss) on investments | (7.95) | (3.05) | 14.69 | (6.60) | 0.18 | (0.83) |
Total from investment operations | (7.64) | (2.48) | 15.20 | (6.03) | 0.68 | (0.51) |
Less distributions | ||||||
From net investment income | (0.32) | (0.56) | (0.52) | (0.58) | (0.49) | (0.32) |
From net realized gain | (1.12) | (1.31) | (0.08) | (0.07) | (0.19) | (0.38) |
Total distributions | (1.44) | (1.87) | (0.60) | (0.65) | (0.68) | (0.70) |
Net asset value, end of period | $20.62 | $29.70 | $34.05 | $19.45 | $26.13 | $26.13 |
Total return (%)3 | (26.65)4 | (7.43) | 78.86 | (22.99) | 2.89 | (2.05) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $4 | $7 | $20 | $4 | $4 | $5 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.845 | 0.83 | 0.83 | 0.85 | 0.83 | 0.82 |
Expenses including reductions | 0.845 | 0.82 | 0.82 | 0.84 | 0.82 | 0.81 |
Net investment income | 2.335 | 1.85 | 1.69 | 2.75 | 2.00 | 1.14 |
Portfolio turnover (%) | 3 | 11 | 10 | 1 | 4 | 3 |
1 | Six months ended 4-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
16 | JOHN HANCOCK Regional Bank Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
SEMIANNUAL REPORT | JOHN HANCOCK Regional Bank Fund | 17 |
18 | JOHN HANCOCK Regional Bank Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Regional Bank Fund | 19 |
Class | Expense reduction |
Class A | $24,226 |
Class C | 3,556 |
Class I | 11,973 |
Class | Expense reduction |
Class R6 | $226 |
Total | $39,981 |
Class | Rule 12b-1 Fee |
Class A | 0.30% |
Class C | 1.00% |
20 | JOHN HANCOCK Regional Bank Fund | SEMIANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class A | $693,460 | $366,619 |
Class C | 467,820 | 53,776 |
Class I | — | 181,019 |
Class R6 | — | 300 |
Total | $1,161,280 | $601,714 |
Six Months Ended 4-30-23 | Year Ended 10-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 913,222 | $22,350,397 | 1,625,104 | $52,174,765 |
Distributions reinvested | 1,176,931 | 30,260,070 | 1,273,595 | 39,415,468 |
Repurchased | (2,576,323) | (64,871,733) | (3,183,343) | (97,906,066) |
Net decrease | (486,170) | $(12,261,266) | (284,644) | $(6,315,833) |
Class C shares | ||||
Sold | 258,782 | $6,060,073 | 615,970 | $19,170,753 |
Distributions reinvested | 190,925 | 4,669,471 | 189,111 | 5,571,591 |
Repurchased | (715,477) | (17,034,340) | (773,486) | (22,212,980) |
Net increase (decrease) | (265,770) | $(6,304,796) | 31,595 | $2,529,364 |
Class I shares | ||||
Sold | 2,851,084 | $72,756,634 | 5,264,728 | $167,184,108 |
Distributions reinvested | 544,003 | 13,958,954 | 551,786 | 17,003,449 |
Repurchased | (3,701,692) | (96,235,893) | (3,823,690) | (114,859,869) |
Net increase (decrease) | (306,605) | $(9,520,305) | 1,992,824 | $69,327,688 |
SEMIANNUAL REPORT | JOHN HANCOCK Regional Bank Fund | 21 |
Six Months Ended 4-30-23 | Year Ended 10-31-22 | |||
Shares | Amount | Shares | Amount | |
Class R6 shares | ||||
Sold | 38,847 | $1,031,821 | 381,649 | $12,663,390 |
Distributions reinvested | 12,680 | 325,223 | 36,249 | 1,119,803 |
Repurchased | (69,324) | (1,804,525) | (788,719) | (24,448,223) |
Net decrease | (17,797) | $(447,481) | (370,821) | $(10,665,030) |
Total net increase (decrease) | (1,076,342) | $(28,533,848) | 1,368,954 | $54,876,189 |
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
John Hancock Collateral Trust | 404,945 | $26,304,320 | $65,551,106 | $(87,818,750) | $11,950 | $(351) | $209,435 | — | $4,048,275 |
22 | JOHN HANCOCK Regional Bank Fund | SEMIANNUAL REPORT |
• | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
• | The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund; |
SEMIANNUAL REPORT | JOHN HANCOCK REGIONAL BANK FUND | 23 |
• | The Fund did not experience any breaches of the 15% limit on illiquid investments, or any applicable HLIM, that would require reporting to the Securities and Exchange Commission; |
• | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
• | The Chief Compliance Officer’s office, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to be operating effectively and in compliance with the Board approved procedures. |
24 | JOHN HANCOCK REGIONAL BANK FUND | SEMIANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†,#
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Ryan P. Lentell, CFA
You can also contact us: | ||
800-225-5291 | Regular mail: | Express mail: |
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
SEMIANNUAL REPORT | JOHN HANCOCK REGIONAL BANK FUND | 25 |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF2879840 | 01SA 4/23 |
ITEM 2. CODE OF ETHICS.
Not Applicable
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not Applicable
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Applicable
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Applicable
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)Not Applicable
(b)Not Applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED- END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not Applicable
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not Applicable
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds – Nominating, Governance and Administration Committee Charter."
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not Applicable
ITEM 13. EXHIBITS.
(a)(1) Not Applicable
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Investment Trust II
By: | /s/ Andrew Arnott |
| ------------------------------ |
| Andrew Arnott |
| President |
Date: | June 1, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Andrew Arnott |
| ------------------------------- |
| Andrew Arnott |
| President |
Date: | June 1, 2023 |
By: | /s/ Charles A. Rizzo |
| --------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | June 1, 2023 |