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 811-21777
John Hancock Funds III
(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: | March 31 |
Date of reporting period: | September 30, 2021 |
ITEM 1. REPORTS TO STOCKHOLDERS
The Registrant prepared five semi-annual reports to shareholders for the period ended September 30, 2021. The first report applies to John Hancock Disciplined Value Fund, the second report applies to John Hancock Disciplined Value Mid Cap Fund, the third report applies to John Hancock Global Shareholder Yield Fund, the fourth report applies to John Hancock International Growth Fund, and the fifth report applies to John Hancock U.S. Growth Fund of the Registrant.
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 1 |
2 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2021 (% of net assets) | |
JPMorgan Chase & Co. | 3.3 |
Johnson & Johnson | 3.0 |
Berkshire Hathaway, Inc., Class B | 2.8 |
Cisco Systems, Inc. | 2.5 |
ConocoPhillips | 2.4 |
Alphabet, Inc., Class A | 2.4 |
AutoZone, Inc. | 2.2 |
Wells Fargo & Company | 2.1 |
Bank of America Corp. | 1.9 |
Cigna Corp. | 1.9 |
TOTAL | 24.5 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 3 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||||
1-year | 5-year | 10-year | 6-month | 5-year | 10-year | ||
Class A | 34.06 | 10.16 | 12.64 | -1.81 | 62.21 | 228.81 | |
Class C | 39.07 | 10.46 | 12.36 | 1.95 | 64.43 | 220.83 | |
Class I1 | 41.48 | 11.57 | 13.52 | 3.48 | 72.86 | 255.49 | |
Class R21,2 | 40.95 | 11.13 | 13.06 | 3.27 | 69.46 | 241.18 | |
Class R41 | 41.25 | 11.40 | 13.33 | 3.39 | 71.54 | 249.56 | |
Class R51 | 41.57 | 11.63 | 13.58 | 3.51 | 73.32 | 257.43 | |
Class R61 | 41.63 | 11.69 | 13.63 | 3.51 | 73.77 | 258.88 | |
Class NAV1 | 41.68 | 11.70 | 13.66 | 3.55 | 73.88 | 259.72 | |
Index 1† | 35.01 | 10.94 | 13.51 | 4.39 | 68.03 | 255.22 | |
Index 2† | 30.00 | 16.90 | 16.63 | 9.18 | 118.26 | 365.86 |
Class A | Class C | Class I | Class R2 | Class R4 | Class R5 | Class R6 | Class NAV | |
Gross (%) | 1.02 | 1.77 | 0.77 | 1.16 | 1.01 | 0.71 | 0.66 | 0.65 |
Net (%) | 1.02 | 1.77 | 0.77 | 1.15 | 0.90 | 0.70 | 0.66 | 0.65 |
4 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index 1 ($) | Index 2 ($) | |
Class C3 | 9-30-11 | 32,083 | 32,083 | 35,522 | 46,586 |
Class I1 | 9-30-11 | 35,549 | 35,549 | 35,522 | 46,586 |
Class R21,2 | 9-30-11 | 34,118 | 34,118 | 35,522 | 46,586 |
Class R41 | 9-30-11 | 34,956 | 34,956 | 35,522 | 46,586 |
Class R51 | 9-30-11 | 35,743 | 35,743 | 35,522 | 46,586 |
Class R61 | 9-30-11 | 35,888 | 35,888 | 35,522 | 46,586 |
Class NAV1 | 9-30-11 | 35,972 | 35,972 | 35,522 | 46,586 |
1 | For certain types of investors, as described in the fund’s prospectuses. |
2 | Class R2 shares were first offered on 3-1-12. Returns shown prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
3 | The contingent deferred sales charge is not applicable. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 5 |
6 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
Account value on 4-1-2021 | Ending value on 9-30-2021 | Expenses paid during period ended 9-30-20211 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,033.60 | $5.40 | 1.06% |
Hypothetical example | 1,000.00 | 1,019.80 | 5.37 | 1.06% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,029.50 | 9.21 | 1.81% |
Hypothetical example | 1,000.00 | 1,016.00 | 9.15 | 1.81% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,034.80 | 4.13 | 0.81% |
Hypothetical example | 1,000.00 | 1,021.00 | 4.10 | 0.81% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,032.70 | 6.06 | 1.19% |
Hypothetical example | 1,000.00 | 1,019.10 | 6.02 | 1.19% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,033.90 | 4.84 | 0.95% |
Hypothetical example | 1,000.00 | 1,020.30 | 4.81 | 0.95% | |
Class R5 | Actual expenses/actual returns | 1,000.00 | 1,035.10 | 3.83 | 0.75% |
Hypothetical example | 1,000.00 | 1,021.30 | 3.80 | 0.75% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,035.10 | 3.57 | 0.70% |
Hypothetical example | 1,000.00 | 1,021.60 | 3.55 | 0.70% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,035.50 | 3.52 | 0.69% |
Hypothetical example | 1,000.00 | 1,021.60 | 3.50 | 0.69% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 7 |
Shares | Value | ||||
Common stocks 98.4% | $12,133,521,282 | ||||
(Cost $8,804,818,727) | |||||
Communication services 5.9% | 730,598,888 | ||||
Entertainment 0.6% | |||||
Activision Blizzard, Inc. | 933,399 | 72,235,749 | |||
Interactive media and services 3.8% | |||||
Alphabet, Inc., Class A (A) | 108,666 | 290,520,724 | |||
Facebook, Inc., Class A (A) | 518,798 | 176,074,853 | |||
Media 0.8% | |||||
Charter Communications, Inc., Class A (A) | 136,800 | 99,530,208 | |||
Wireless telecommunication services 0.7% | |||||
T-Mobile US, Inc. (A) | 721,958 | 92,237,354 | |||
Consumer discretionary 10.0% | 1,232,790,953 | ||||
Auto components 0.4% | |||||
Lear Corp. | 332,251 | 51,990,636 | |||
Automobiles 0.6% | |||||
Harley-Davidson, Inc. | 1,863,684 | 68,229,471 | |||
Distributors 0.8% | |||||
LKQ Corp. (A) | 2,006,979 | 100,991,183 | |||
Hotels, restaurants and leisure 0.6% | |||||
Las Vegas Sands Corp. (A) | 1,916,035 | 70,126,881 | |||
Household durables 2.7% | |||||
Lennar Corp., A Shares | 758,970 | 71,100,310 | |||
Mohawk Industries, Inc. (A) | 634,164 | 112,500,694 | |||
Sony Group Corp., ADR | 1,314,636 | 145,372,449 | |||
Leisure products 0.4% | |||||
Polaris, Inc. | 390,302 | 46,703,537 | |||
Multiline retail 0.4% | |||||
Kohl’s Corp. | 1,169,066 | 55,051,318 | |||
Specialty retail 3.4% | |||||
AutoZone, Inc. (A) | 158,716 | 269,498,181 | |||
Lowe’s Companies, Inc. | 380,565 | 77,201,416 | |||
The TJX Companies, Inc. | 1,121,266 | 73,981,131 | |||
Textiles, apparel and luxury goods 0.7% | |||||
Tapestry, Inc. | 2,432,300 | 90,043,746 | |||
Consumer staples 1.6% | 196,115,675 | ||||
Beverages 1.0% | |||||
Coca-Cola Europacific Partners PLC | 2,118,257 | 117,118,430 |
8 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Consumer staples (continued) | |||||
Food and staples retailing 0.6% | |||||
U.S. Foods Holding Corp. (A) | 2,279,205 | $78,997,245 | |||
Energy 8.6% | 1,065,722,186 | ||||
Energy equipment and services 0.9% | |||||
Schlumberger NV | 3,915,647 | 116,059,777 | |||
Oil, gas and consumable fuels 7.7% | |||||
Canadian Natural Resources, Ltd. | 3,054,272 | 111,603,099 | |||
ConocoPhillips | 4,405,078 | 298,532,136 | |||
EOG Resources, Inc. | 1,668,797 | 133,954,335 | |||
HollyFrontier Corp. | 1,784,591 | 59,123,500 | |||
Marathon Petroleum Corp. | 3,106,886 | 192,036,624 | |||
Pioneer Natural Resources Company | 927,348 | 154,412,715 | |||
Financials 21.2% | 2,609,578,505 | ||||
Banks 11.1% | |||||
Bank of America Corp. | 5,654,576 | 240,036,751 | |||
Citigroup, Inc. | 2,720,419 | 190,919,005 | |||
Fifth Third Bancorp | 2,295,350 | 97,414,654 | |||
JPMorgan Chase & Co. | 2,517,106 | 412,025,083 | |||
Truist Financial Corp. | 2,913,674 | 170,886,980 | |||
Wells Fargo & Company | 5,564,534 | 258,250,023 | |||
Capital markets 2.7% | |||||
The Charles Schwab Corp. | 2,295,561 | 167,208,663 | |||
The Goldman Sachs Group, Inc. | 447,547 | 169,186,192 | |||
Consumer finance 1.4% | |||||
Capital One Financial Corp. | 1,069,551 | 173,235,175 | |||
Diversified financial services 2.8% | |||||
Berkshire Hathaway, Inc., Class B (A) | 1,257,749 | 343,290,012 | |||
Insurance 3.2% | |||||
American International Group, Inc. | 1,493,477 | 81,976,953 | |||
Chubb, Ltd. | 743,599 | 128,999,555 | |||
Everest Re Group, Ltd. | 336,932 | 84,495,807 | |||
The Progressive Corp. | 1,013,980 | 91,653,652 | |||
Health care 17.2% | 2,119,509,314 | ||||
Biotechnology 1.1% | |||||
AbbVie, Inc. | 1,199,541 | 129,394,488 | |||
Health care providers and services 7.3% | |||||
AmerisourceBergen Corp. | 838,054 | 100,105,550 | |||
Centene Corp. (A) | 2,000,781 | 124,668,664 | |||
Cigna Corp. | 1,155,178 | 231,220,428 | |||
CVS Health Corp. | 1,432,249 | 121,540,650 | |||
McKesson Corp. | 521,640 | 104,004,583 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 9 |
Shares | Value | ||||
Health care (continued) | |||||
Health care providers and services (continued) | |||||
UnitedHealth Group, Inc. | 571,566 | $223,333,699 | |||
Life sciences tools and services 2.0% | |||||
Avantor, Inc. (A) | 3,863,036 | 157,998,172 | |||
ICON PLC (A) | 360,825 | 94,543,367 | |||
Pharmaceuticals 6.8% | |||||
Bristol-Myers Squibb Company | 1,840,062 | 108,876,469 | |||
Johnson & Johnson | 2,297,993 | 371,125,870 | |||
Novartis AG, ADR | 1,127,697 | 92,223,061 | |||
Pfizer, Inc. | 3,748,045 | 161,203,415 | |||
Sanofi, ADR | 2,059,135 | 99,270,898 | |||
Industrials 12.9% | 1,590,972,612 | ||||
Aerospace and defense 2.3% | |||||
General Dynamics Corp. | 886,738 | 173,827,250 | |||
Howmet Aerospace, Inc. | 3,698,593 | 115,396,102 | |||
Building products 0.8% | |||||
Allegion PLC | 304,663 | 40,270,355 | |||
Owens Corning | 713,735 | 61,024,343 | |||
Electrical equipment 1.9% | |||||
Eaton Corp. PLC | 1,211,382 | 180,871,446 | |||
Vertiv Holdings Company | 1,987,798 | 47,886,054 | |||
Machinery 4.8% | |||||
Allison Transmission Holdings, Inc. | 980,690 | 34,637,971 | |||
Caterpillar, Inc. | 583,454 | 112,005,664 | |||
Deere & Company | 480,732 | 161,078,871 | |||
Dover Corp. | 458,241 | 71,256,476 | |||
Otis Worldwide Corp. | 1,440,490 | 118,523,517 | |||
Wabtec Corp. | 1,031,025 | 88,884,665 | |||
Road and rail 1.8% | |||||
Canadian National Railway Company | 1,097,340 | 126,907,371 | |||
Union Pacific Corp. | 485,817 | 95,224,990 | |||
Trading companies and distributors 1.3% | |||||
United Rentals, Inc. (A) | 464,986 | 163,177,537 | |||
Information technology 15.8% | 1,944,655,152 | ||||
Communications equipment 2.5% | |||||
Cisco Systems, Inc. | 5,617,861 | 305,780,174 | |||
IT services 3.3% | |||||
Cognizant Technology Solutions Corp., Class A | 998,645 | 74,109,445 | |||
Fidelity National Information Services, Inc. | 1,317,696 | 160,337,249 | |||
FleetCor Technologies, Inc. (A) | 321,741 | 84,061,271 | |||
Global Payments, Inc. | 593,728 | 93,559,658 |
10 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Information technology (continued) | |||||
Semiconductors and semiconductor equipment 7.4% | |||||
Applied Materials, Inc. | 1,372,572 | $176,691,194 | |||
KLA Corp. | 250,007 | 83,629,842 | |||
Lam Research Corp. | 194,776 | 110,856,760 | |||
Micron Technology, Inc. | 2,629,164 | 186,618,061 | |||
NXP Semiconductors NV | 511,464 | 100,180,454 | |||
Qorvo, Inc. (A) | 532,688 | 89,060,107 | |||
QUALCOMM, Inc. | 1,319,894 | 170,239,928 | |||
Software 2.1% | |||||
NortonLifeLock, Inc. | 3,201,944 | 81,009,183 | |||
Oracle Corp. | 1,018,905 | 88,777,193 | |||
SS&C Technologies Holdings, Inc. | 1,219,163 | 84,609,912 | |||
Technology hardware, storage and peripherals 0.5% | |||||
NetApp, Inc. | 614,246 | 55,134,721 | |||
Materials 3.6% | 441,513,299 | ||||
Chemicals 2.5% | |||||
Axalta Coating Systems, Ltd. (A) | 3,732,352 | 108,947,355 | |||
DuPont de Nemours, Inc. | 2,836,692 | 192,866,689 | |||
Construction materials 0.6% | |||||
CRH PLC, ADR | 1,702,267 | 79,563,960 | |||
Metals and mining 0.5% | |||||
Newmont Corp. | 1,107,464 | 60,135,295 | |||
Utilities 1.6% | 202,064,698 | ||||
Multi-utilities 1.6% | |||||
CenterPoint Energy, Inc. | 4,196,986 | 103,245,856 | |||
Dominion Energy, Inc. | 1,353,312 | 98,818,842 | |||
Yield (%) | Shares | Value | |||
Short-term investments 1.5% | $178,818,519 | ||||
(Cost $178,818,519) | |||||
Short-term funds 1.5% | 178,818,519 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 0.0250(B) | 178,818,519 | 178,818,519 |
Total investments (Cost $8,983,637,246) 99.9% | $12,312,339,801 | ||||
Other assets and liabilities, net 0.1% | 16,621,409 | ||||
Total net assets 100.0% | $12,328,961,210 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 11 |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
(A) | Non-income producing security. |
(B) | The rate shown is the annualized seven-day yield as of 9-30-21. |
12 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $8,983,637,246) | $12,312,339,801 |
Dividends and interest receivable | 8,633,344 |
Receivable for fund shares sold | 24,564,712 |
Receivable for investments sold | 12,441,614 |
Other assets | 491,408 |
Total assets | 12,358,470,879 |
Liabilities | |
Due to custodian | 272,790 |
Payable for investments purchased | 4,716 |
Payable for fund shares repurchased | 26,430,680 |
Payable to affiliates | |
Accounting and legal services fees | 575,768 |
Transfer agent fees | 679,173 |
Distribution and service fees | 15,953 |
Trustees’ fees | 36 |
Other liabilities and accrued expenses | 1,530,553 |
Total liabilities | 29,509,669 |
Net assets | $12,328,961,210 |
Net assets consist of | |
Paid-in capital | $7,451,760,708 |
Total distributable earnings (loss) | 4,877,200,502 |
Net assets | $12,328,961,210 |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($1,084,352,893 ÷ 42,429,364 shares)1 | $25.56 |
Class C ($119,849,622 ÷ 5,050,979 shares)1 | $23.73 |
Class I ($5,685,662,974 ÷ 230,271,905 shares) | $24.69 |
Class R2 ($46,279,716 ÷ 1,880,518 shares) | $24.61 |
Class R4 ($58,065,872 ÷ 2,352,345 shares) | $24.68 |
Class R5 ($36,110,998 ÷ 1,458,878 shares) | $24.75 |
Class R6 ($3,887,262,819 ÷ 157,040,315 shares) | $24.75 |
Class NAV ($1,411,376,316 ÷ 56,990,583 shares) | $24.77 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $26.91 |
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 Disciplined Value Fund | 13 |
Investment income | |
Dividends | $92,596,628 |
Interest | 25,321 |
Less foreign taxes withheld | (551,115) |
Total investment income | 92,070,834 |
Expenses | |
Investment management fees | 41,756,236 |
Distribution and service fees | 2,283,741 |
Accounting and legal services fees | 921,129 |
Transfer agent fees | 4,244,603 |
Trustees’ fees | 118,792 |
Custodian fees | 678,544 |
State registration fees | 126,438 |
Printing and postage | 311,830 |
Professional fees | 103,735 |
Other | 260,210 |
Total expenses | 50,805,258 |
Less expense reductions | (605,068) |
Net expenses | 50,200,190 |
Net investment income | 41,870,644 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 943,461,800 |
943,461,800 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (549,472,621) |
(549,472,621) | |
Net realized and unrealized gain | 393,989,179 |
Increase in net assets from operations | $435,859,823 |
14 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Six months ended 9-30-21 (unaudited) | Year ended 3-31-21 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $41,870,644 | $143,838,337 |
Net realized gain | 943,461,800 | 841,295,970 |
Change in net unrealized appreciation (depreciation) | (549,472,621) | 5,008,519,540 |
Increase in net assets resulting from operations | 435,859,823 | 5,993,653,847 |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (11,834,034) |
Class C | — | (970,155) |
Class I | — | (98,239,369) |
Class R2 | — | (708,389) |
Class R4 | — | (1,066,824) |
Class R5 | — | (700,529) |
Class R6 | — | (62,585,555) |
Class NAV | — | (21,522,877) |
Total distributions | — | (197,627,732) |
From fund share transactions | (384,204,052) | (4,125,193,544) |
Total increase | 51,655,771 | 1,670,832,571 |
Net assets | ||
Beginning of period | 12,277,305,439 | 10,606,472,868 |
End of period | $12,328,961,210 | $12,277,305,439 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 15 |
CLASS A SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.73 | $15.18 | $20.25 | $22.11 | $20.71 | $17.64 |
Net investment income2 | 0.05 | 0.18 | 0.30 | 0.26 | 0.20 | 0.18 |
Net realized and unrealized gain (loss) on investments | 0.78 | 9.65 | (4.20) | (0.28) | 2.39 | 3.08 |
Total from investment operations | 0.83 | 9.83 | (3.90) | (0.02) | 2.59 | 3.26 |
Less distributions | ||||||
From net investment income | — | (0.28) | (0.25) | (0.23) | (0.18) | (0.19) |
From net realized gain | — | — | (0.92) | (1.61) | (1.01) | — |
Total distributions | — | (0.28) | (1.17) | (1.84) | (1.19) | (0.19) |
Net asset value, end of period | $25.56 | $24.73 | $15.18 | $20.25 | $22.11 | $20.71 |
Total return (%)3,4 | 3.365 | 65.19 | (20.99) | 0.45 | 12.42 | 18.50 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,084 | $1,037 | $731 | $1,092 | $1,289 | $1,449 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.066 | 1.07 | 1.07 | 1.06 | 1.06 | 1.07 |
Expenses including reductions | 1.066 | 1.07 | 1.06 | 1.05 | 1.05 | 1.06 |
Net investment income | 0.406 | 0.94 | 1.44 | 1.18 | 0.92 | 0.96 |
Portfolio turnover (%) | 22 | 55 | 88 | 69 | 45 | 65 |
1 | Six months ended 9-30-21. 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. |
16 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.05 | $14.17 | $18.98 | $20.82 | $19.57 | $16.69 |
Net investment income (loss)2 | (0.04) | 0.03 | 0.13 | 0.09 | 0.03 | 0.03 |
Net realized and unrealized gain (loss) on investments | 0.72 | 9.00 | (3.92) | (0.26) | 2.25 | 2.91 |
Total from investment operations | 0.68 | 9.03 | (3.79) | (0.17) | 2.28 | 2.94 |
Less distributions | ||||||
From net investment income | — | (0.15) | (0.10) | (0.06) | (0.02) | (0.06) |
From net realized gain | — | — | (0.92) | (1.61) | (1.01) | — |
Total distributions | — | (0.15) | (1.02) | (1.67) | (1.03) | (0.06) |
Net asset value, end of period | $23.73 | $23.05 | $14.17 | $18.98 | $20.82 | $19.57 |
Total return (%)3,4 | 2.955 | 63.90 | (21.51) | (0.35) | 11.58 | 17.61 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $120 | $135 | $140 | $235 | $275 | $293 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.826 | 1.82 | 1.82 | 1.81 | 1.81 | 1.82 |
Expenses including reductions | 1.816 | 1.82 | 1.81 | 1.80 | 1.80 | 1.81 |
Net investment income (loss) | (0.35)6 | 0.19 | 0.67 | 0.43 | 0.16 | 0.18 |
Portfolio turnover (%) | 22 | 55 | 88 | 69 | 45 | 65 |
1 | Six months ended 9-30-21. 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 Disciplined Value Fund | 17 |
CLASS I SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.86 | $14.65 | $19.58 | $21.45 | $20.12 | $17.14 |
Net investment income2 | 0.08 | 0.22 | 0.34 | 0.30 | 0.25 | 0.22 |
Net realized and unrealized gain (loss) on investments | 0.75 | 9.32 | (4.05) | (0.27) | 2.32 | 3.00 |
Total from investment operations | 0.83 | 9.54 | (3.71) | 0.03 | 2.57 | 3.22 |
Less distributions | ||||||
From net investment income | — | (0.33) | (0.30) | (0.29) | (0.23) | (0.24) |
From net realized gain | — | — | (0.92) | (1.61) | (1.01) | — |
Total distributions | — | (0.33) | (1.22) | (1.90) | (1.24) | (0.24) |
Net asset value, end of period | $24.69 | $23.86 | $14.65 | $19.58 | $21.45 | $20.12 |
Total return (%)3 | 3.484 | 65.58 | (20.77) | 0.64 | 12.71 | 18.80 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $5,686 | $5,618 | $5,250 | $7,399 | $6,988 | $7,540 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.815 | 0.82 | 0.82 | 0.82 | 0.81 | 0.81 |
Expenses including reductions | 0.815 | 0.82 | 0.81 | 0.81 | 0.80 | 0.80 |
Net investment income | 0.655 | 1.18 | 1.69 | 1.43 | 1.17 | 1.18 |
Portfolio turnover (%) | 22 | 55 | 88 | 69 | 45 | 65 |
1 | Six months ended 9-30-21. 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 Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R2 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.83 | $14.63 | $19.57 | $21.43 | $20.10 | $17.13 |
Net investment income2 | 0.03 | 0.15 | 0.23 | 0.22 | 0.16 | 0.14 |
Net realized and unrealized gain (loss) on investments | 0.75 | 9.31 | (4.03) | (0.27) | 2.33 | 2.99 |
Total from investment operations | 0.78 | 9.46 | (3.80) | (0.05) | 2.49 | 3.13 |
Less distributions | ||||||
From net investment income | — | (0.26) | (0.22) | (0.20) | (0.15) | (0.16) |
From net realized gain | — | — | (0.92) | (1.61) | (1.01) | — |
Total distributions | — | (0.26) | (1.14) | (1.81) | (1.16) | (0.16) |
Net asset value, end of period | $24.61 | $23.83 | $14.63 | $19.57 | $21.43 | $20.10 |
Total return (%)3 | 3.274 | 64.94 | (21.08) | 0.24 | 12.30 | 18.32 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $46 | $55 | $42 | $102 | $135 | $135 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.205 | 1.21 | 1.21 | 1.21 | 1.21 | 1.21 |
Expenses including reductions | 1.195 | 1.20 | 1.20 | 1.20 | 1.20 | 1.21 |
Net investment income | 0.265 | 0.80 | 1.17 | 1.02 | 0.76 | 0.78 |
Portfolio turnover (%) | 22 | 55 | 88 | 69 | 45 | 65 |
1 | Six months ended 9-30-21. 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 Disciplined Value Fund | 19 |
CLASS R4 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.87 | $14.65 | $19.59 | $21.45 | $20.12 | $17.14 |
Net investment income2 | 0.06 | 0.20 | 0.30 | 0.27 | 0.22 | 0.19 |
Net realized and unrealized gain (loss) on investments | 0.75 | 9.32 | (4.05) | (0.27) | 2.32 | 3.00 |
Total from investment operations | 0.81 | 9.52 | (3.75) | — | 2.54 | 3.19 |
Less distributions | ||||||
From net investment income | — | (0.30) | (0.27) | (0.25) | (0.20) | (0.21) |
From net realized gain | — | — | (0.92) | (1.61) | (1.01) | — |
Total distributions | — | (0.30) | (1.19) | (1.86) | (1.21) | (0.21) |
Net asset value, end of period | $24.68 | $23.87 | $14.65 | $19.59 | $21.45 | $20.12 |
Total return (%)3 | 3.394 | 65.34 | (20.87) | 0.52 | 12.54 | 18.63 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $58 | $62 | $74 | $143 | $231 | $286 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.065 | 1.06 | 1.06 | 1.06 | 1.06 | 1.07 |
Expenses including reductions | 0.955 | 0.95 | 0.95 | 0.95 | 0.95 | 0.96 |
Net investment income | 0.515 | 1.06 | 1.50 | 1.26 | 1.02 | 1.03 |
Portfolio turnover (%) | 22 | 55 | 88 | 69 | 45 | 65 |
1 | Six months ended 9-30-21. 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. |
20 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R5 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.91 | $14.67 | $19.62 | $21.48 | $20.15 | $17.16 |
Net investment income2 | 0.09 | 0.23 | 0.34 | 0.31 | 0.26 | 0.23 |
Net realized and unrealized gain (loss) on investments | 0.75 | 9.35 | (4.06) | (0.26) | 2.32 | 3.00 |
Total from investment operations | 0.84 | 9.58 | (3.72) | 0.05 | 2.58 | 3.23 |
Less distributions | ||||||
From net investment income | — | (0.34) | (0.31) | (0.30) | (0.24) | (0.24) |
From net realized gain | — | — | (0.92) | (1.61) | (1.01) | — |
Total distributions | — | (0.34) | (1.23) | (1.91) | (1.25) | (0.24) |
Net asset value, end of period | $24.75 | $23.91 | $14.67 | $19.62 | $21.48 | $20.15 |
Total return (%)3 | 3.514 | 65.67 | (20.74) | 0.75 | 12.73 | 18.88 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $36 | $40 | $61 | $166 | $198 | $200 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.765 | 0.76 | 0.76 | 0.76 | 0.76 | 0.76 |
Expenses including reductions | 0.755 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 |
Net investment income | 0.715 | 1.24 | 1.70 | 1.48 | 1.22 | 1.27 |
Portfolio turnover (%) | 22 | 55 | 88 | 69 | 45 | 65 |
1 | Six months ended 9-30-21. 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 Disciplined Value Fund | 21 |
CLASS R6 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.91 | $14.67 | $19.61 | $21.48 | $20.14 | $17.16 |
Net investment income2 | 0.10 | 0.24 | 0.36 | 0.32 | 0.27 | 0.24 |
Net realized and unrealized gain (loss) on investments | 0.74 | 9.35 | (4.06) | (0.27) | 2.33 | 3.00 |
Total from investment operations | 0.84 | 9.59 | (3.70) | 0.05 | 2.60 | 3.24 |
Less distributions | ||||||
From net investment income | — | (0.35) | (0.32) | (0.31) | (0.25) | (0.26) |
From net realized gain | — | — | (0.92) | (1.61) | (1.01) | — |
Total distributions | — | (0.35) | (1.24) | (1.92) | (1.26) | (0.26) |
Net asset value, end of period | $24.75 | $23.91 | $14.67 | $19.61 | $21.48 | $20.14 |
Total return (%)3 | 3.514 | 65.74 | (20.66) | 0.76 | 12.84 | 18.97 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $3,887 | $3,844 | $3,369 | $4,584 | $4,564 | $3,077 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.715 | 0.71 | 0.71 | 0.71 | 0.71 | 0.72 |
Expenses including reductions | 0.705 | 0.71 | 0.70 | 0.70 | 0.70 | 0.69 |
Net investment income | 0.765 | 1.30 | 1.81 | 1.54 | 1.25 | 1.27 |
Portfolio turnover (%) | 22 | 55 | 88 | 69 | 45 | 65 |
1 | Six months ended 9-30-21. 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. |
22 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS NAV SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.92 | $14.68 | $19.62 | $21.49 | $20.15 | $17.16 |
Net investment income2 | 0.10 | 0.25 | 0.36 | 0.33 | 0.27 | 0.24 |
Net realized and unrealized gain (loss) on investments | 0.75 | 9.34 | (4.06) | (0.28) | 2.34 | 3.01 |
Total from investment operations | 0.85 | 9.59 | (3.70) | 0.05 | 2.61 | 3.25 |
Less distributions | ||||||
From net investment income | — | (0.35) | (0.32) | (0.31) | (0.26) | (0.26) |
From net realized gain | — | — | (0.92) | (1.61) | (1.01) | — |
Total distributions | — | (0.35) | (1.24) | (1.92) | (1.27) | (0.26) |
Net asset value, end of period | $24.77 | $23.92 | $14.68 | $19.62 | $21.49 | $20.15 |
Total return (%)3 | 3.554 | 65.71 | (20.64) | 0.77 | 12.85 | 18.95 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,411 | $1,486 | $887 | $1,105 | $1,219 | $1,245 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.705 | 0.70 | 0.70 | 0.70 | 0.70 | 0.70 |
Expenses including reductions | 0.695 | 0.70 | 0.69 | 0.69 | 0.69 | 0.69 |
Net investment income | 0.765 | 1.31 | 1.83 | 1.54 | 1.28 | 1.27 |
Portfolio turnover (%) | 22 | 55 | 88 | 69 | 45 | 65 |
1 | Six months ended 9-30-21. 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 Disciplined Value Fund | 23 |
24 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 25 |
26 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT |
Class | Expense reduction |
Class A | $50,002 |
Class C | 5,992 |
Class I | 265,333 |
Class R2 | 2,419 |
Class R4 | 2,822 |
Class | Expense reduction |
Class R5 | $1,808 |
Class R6 | 178,193 |
Class NAV | 67,396 |
Total | $573,965 |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 27 |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.30% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
Class R4 | 0.25% | 0.10% |
Class R5 | — | 0.05% |
28 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class A | $1,375,821 | $629,828 |
Class C | 660,610 | 75,668 |
Class I | — | 3,342,844 |
Class R2 | 129,366 | 2,579 |
Class R4 | 108,704 | 3,012 |
Class R5 | 9,240 | 1,917 |
Class R6 | — | 188,755 |
Total | $2,283,741 | $4,244,603 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Borrower | $55,500,000 | 1 | 0.655% | ($1,010) |
Lender | 7,700,000 | 1 | 0.550% | 118 |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 4,543,104 | $118,273,962 | 8,187,313 | $161,642,817 |
Distributions reinvested | — | — | 531,956 | 11,256,191 |
Repurchased | (4,063,253) | (105,844,007) | (14,936,801) | (282,828,069) |
Net increase (decrease) | 479,851 | $12,429,955 | (6,217,532) | $(109,929,061) |
Class B shares | ||||
Sold | — | — | 1,216 | $19,172 |
Repurchased | — | — | (137,308) | (2,339,634) |
Net decrease | — | — | (136,092) | $(2,320,462) |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 29 |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class C shares | ||||
Sold | 227,411 | $5,493,557 | 389,798 | $7,302,308 |
Distributions reinvested | — | — | 47,041 | 930,006 |
Repurchased | (1,022,308) | (24,708,039) | (4,468,957) | (80,885,979) |
Net decrease | (794,897) | $(19,214,482) | (4,032,118) | $(72,653,665) |
Class I shares | ||||
Sold | 28,286,598 | $709,395,191 | 86,165,736 | $1,596,450,463 |
Distributions reinvested | — | — | 4,033,819 | 82,330,246 |
Repurchased | (33,448,274) | (840,104,804) | (213,208,859) | (4,149,349,799) |
Net decrease | (5,161,676) | $(130,709,613) | (123,009,304) | $(2,470,569,090) |
Class I2 shares | ||||
Sold | — | — | 181,930 | $3,209,025 |
Repurchased | — | — | (2,362,340) | (43,819,297) |
Net decrease | — | — | (2,180,410) | $(40,610,272) |
Class R1 shares | ||||
Sold | — | — | 74,561 | $1,236,411 |
Repurchased | — | — | (777,154) | (14,048,114) |
Net decrease | — | — | (702,593) | $(12,811,703) |
Class R2 shares | ||||
Sold | 202,606 | $5,056,649 | 1,531,138 | $28,452,059 |
Distributions reinvested | — | — | 26,559 | 541,803 |
Repurchased | (635,848) | (15,968,855) | (2,137,192) | (41,125,478) |
Net decrease | (433,242) | $(10,912,206) | (579,495) | $(12,131,616) |
Class R3 shares | ||||
Sold | — | — | 46,238 | $797,795 |
Repurchased | — | — | (687,654) | (12,230,909) |
Net decrease | — | — | (641,416) | $(11,433,114) |
Class R4 shares | ||||
Sold | 225,578 | $5,680,284 | 611,151 | $11,317,565 |
Distributions reinvested | — | — | 52,244 | 1,066,824 |
Repurchased | (458,925) | (11,448,364) | (3,097,478) | (60,354,806) |
Net decrease | (233,347) | $(5,768,080) | (2,434,083) | $(47,970,417) |
30 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class R5 shares | ||||
Sold | 143,526 | $3,595,481 | 600,026 | $11,197,894 |
Distributions reinvested | — | — | 34,186 | 699,102 |
Repurchased | (361,682) | (9,080,918) | (3,134,822) | (58,126,506) |
Net decrease | (218,156) | $(5,485,437) | (2,500,610) | $(46,229,510) |
Class R6 shares | ||||
Sold | 19,560,980 | $492,009,240 | 36,332,826 | $691,270,101 |
Distributions reinvested | — | — | 2,865,844 | 58,577,852 |
Repurchased | (23,300,124) | (586,635,340) | (108,023,355) | (2,062,163,285) |
Net decrease | (3,739,144) | $(94,626,100) | (68,824,685) | $(1,312,315,332) |
Class NAV shares | ||||
Sold | 1,284,580 | $32,317,140 | 8,778,856 | $155,844,779 |
Distributions reinvested | — | — | 1,052,463 | 21,522,877 |
Repurchased | (6,422,640) | (162,235,229) | (8,105,073) | (163,586,958) |
Net increase (decrease) | (5,138,060) | $(129,918,089) | 1,726,246 | $13,780,698 |
Total net decrease | (15,238,671) | $(384,204,052) | (209,532,092) | $(4,125,193,544) |
Redesignation | Effective date | Amount | |||||
Class B shares as Class A shares | October 14, 2020 | $1,186,076 | |||||
Class I2 shares as Class I shares | October 9, 2020 | $42,807,288 | |||||
Class R1 shares as Class R2 shares | October 23, 2020 | $10,501,493 | |||||
Class R3 shares as Class R2 shares | October 9, 2020 | $8,937,799 |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 31 |
32 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 33 |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
34 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 35 |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
36 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 37 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
38 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
(2) | the performance of the fund is being monitored and reasonably addressed, where appropriate; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 39 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Mark E. Donovan, CFA
Stephanie T. McGirr
David J. Pyle, CFA
Joshua White, 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 |
40 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF1860906 | 340SA 9/21 |
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 1 |
2 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2021 (% of net assets) | |
Fifth Third Bancorp | 2.3 |
Ameriprise Financial, Inc. | 2.1 |
Huntington Bancshares, Inc. | 1.8 |
AutoZone, Inc. | 1.7 |
KeyCorp | 1.6 |
Dover Corp. | 1.6 |
Eaton Corp. PLC | 1.4 |
Discover Financial Services | 1.4 |
TE Connectivity, Ltd. | 1.3 |
East West Bancorp, Inc. | 1.3 |
TOTAL | 16.5 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 3 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||||
1-year | 5-year | 10-year | 6-month | 5-year | 10-year | ||
Class A | 36.01 | 9.64 | 14.04 | -1.54 | 58.46 | 272.07 | |
Class C | 41.10 | 9.95 | 13.76 | 2.28 | 60.65 | 263.10 | |
Class I1 | 43.54 | 11.04 | 14.94 | 3.78 | 68.84 | 302.28 | |
Class R21,2 | 42.97 | 10.62 | 14.48 | 3.60 | 65.62 | 286.71 | |
Class R41,2 | 43.34 | 10.88 | 14.72 | 3.70 | 67.63 | 294.73 | |
Class R61 | 43.65 | 11.16 | 15.04 | 3.85 | 69.73 | 305.96 | |
Index† | 42.40 | 10.59 | 13.93 | 4.59 | 65.44 | 268.57 |
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | |
Gross (%) | 1.12 | 1.87 | 0.87 | 1.26 | 1.11 | 0.76 |
Net (%) | 1.11 | 1.86 | 0.86 | 1.25 | 1.00 | 0.75 |
4 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class C3 | 9-30-11 | 36,310 | 36,310 | 36,857 |
Class I1 | 9-30-11 | 40,228 | 40,228 | 36,857 |
Class R21,2 | 9-30-11 | 38,671 | 38,671 | 36,857 |
Class R41,2 | 9-30-11 | 39,473 | 39,473 | 36,857 |
Class R61 | 9-30-11 | 40,596 | 40,596 | 36,857 |
1 | For certain types of investors, as described in the fund’s prospectus. |
2 | Class R2 and Class R4 shares were first offered on 3-1-12 and 7-2-13, respectively; Returns shown prior to these dates are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
3 | The contingent deferred sales charge is not applicable. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 5 |
6 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
Account value on 4-1-2021 | Ending value on 9-30-2021 | Expenses paid during period ended 9-30-20211 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,036.30 | $5.62 | 1.10% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.57 | 1.10% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,032.80 | 9.43 | 1.85% |
Hypothetical example | 1,000.00 | 1,015.80 | 9.35 | 1.85% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,037.80 | 4.34 | 0.85% |
Hypothetical example | 1,000.00 | 1,020.80 | 4.31 | 0.85% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,036.00 | 6.33 | 1.24% |
Hypothetical example | 1,000.00 | 1,018.90 | 6.28 | 1.24% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,037.00 | 5.06 | 0.99% |
Hypothetical example | 1,000.00 | 1,020.10 | 5.01 | 0.99% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,038.50 | 3.78 | 0.74% |
Hypothetical example | 1,000.00 | 1,021.40 | 3.75 | 0.74% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 7 |
Shares | Value | ||||
Common stocks 97.8% | $18,766,101,174 | ||||
(Cost $13,306,997,242) | |||||
Communication services 1.9% | 360,521,220 | ||||
Entertainment 1.0% | |||||
Activision Blizzard, Inc. | 1,112,039 | 86,060,698 | |||
Live Nation Entertainment, Inc. (A) | 1,045,229 | 95,251,719 | |||
Interactive media and services 0.3% | |||||
Yelp, Inc. (A) | 1,707,326 | 63,580,820 | |||
Media 0.6% | |||||
TEGNA, Inc. | 5,863,488 | 115,627,983 | |||
Consumer discretionary 13.4% | 2,576,900,413 | ||||
Auto components 1.0% | |||||
Gentex Corp. | 2,806,295 | 92,551,609 | |||
Lear Corp. | 628,065 | 98,279,611 | |||
Automobiles 0.8% | |||||
Harley-Davidson, Inc. | 4,401,020 | 161,121,342 | |||
Distributors 0.6% | |||||
LKQ Corp. (A) | 2,107,217 | 106,035,159 | |||
Hotels, restaurants and leisure 3.7% | |||||
Carnival Corp. (A) | 1,081,595 | 27,050,691 | |||
Darden Restaurants, Inc. | 622,739 | 94,326,276 | |||
Expedia Group, Inc. (A) | 647,810 | 106,176,059 | |||
International Game Technology PLC (A) | 1,907,527 | 50,206,111 | |||
Las Vegas Sands Corp. (A) | 2,092,766 | 76,595,236 | |||
Marriott International, Inc., Class A (A) | 740,119 | 109,604,223 | |||
Norwegian Cruise Line Holdings, Ltd. (A) | 982,010 | 26,229,487 | |||
Royal Caribbean Cruises, Ltd. (A) | 319,774 | 28,443,897 | |||
Travel + Leisure Company | 1,307,982 | 71,324,258 | |||
Wyndham Hotels & Resorts, Inc. | 1,659,171 | 128,071,409 | |||
Household durables 2.0% | |||||
Mohawk Industries, Inc. (A) | 840,053 | 149,025,402 | |||
Tempur Sealy International, Inc. | 1,678,626 | 77,905,033 | |||
Whirlpool Corp. | 815,092 | 166,164,655 | |||
Leisure products 1.7% | |||||
Callaway Golf Company (A) | 1,984,040 | 54,819,025 | |||
Hasbro, Inc. | 1,583,191 | 141,252,301 | |||
Polaris, Inc. | 1,079,502 | 129,173,209 | |||
Specialty retail 3.6% | |||||
AutoZone, Inc. (A) | 189,593 | 321,927,018 | |||
Best Buy Company, Inc. | 503,653 | 53,241,159 | |||
Foot Locker, Inc. | 1,685,908 | 76,978,559 |
8 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Consumer discretionary (continued) | |||||
Specialty retail (continued) | |||||
Ross Stores, Inc. | 1,072,176 | $116,706,358 | |||
Ulta Beauty, Inc. (A) | 315,007 | 113,692,326 | |||
Consumer staples 1.8% | 345,637,445 | ||||
Beverages 0.8% | |||||
Coca-Cola Europacific Partners PLC | 2,784,231 | 153,940,132 | |||
Food and staples retailing 0.6% | |||||
U.S. Foods Holding Corp. (A) | 3,424,852 | 118,705,370 | |||
Food products 0.4% | |||||
Nomad Foods, Ltd. (A) | 2,648,474 | 72,991,943 | |||
Energy 7.2% | 1,374,265,379 | ||||
Energy equipment and services 2.6% | |||||
ChampionX Corp. (A) | 4,741,277 | 106,014,954 | |||
Halliburton Company | 5,209,501 | 112,629,412 | |||
Helmerich & Payne, Inc. | 2,768,296 | 75,878,993 | |||
Schlumberger NV | 7,019,374 | 208,054,245 | |||
Oil, gas and consumable fuels 4.6% | |||||
ConocoPhillips | 3,279,570 | 222,256,459 | |||
Diamondback Energy, Inc. | 1,582,204 | 149,787,253 | |||
HollyFrontier Corp. | 2,851,006 | 94,453,829 | |||
Marathon Petroleum Corp. | 2,751,152 | 170,048,705 | |||
Pioneer Natural Resources Company | 922,471 | 153,600,646 | |||
Valero Energy Corp. | 1,155,461 | 81,540,883 | |||
Financials 18.7% | 3,590,568,989 | ||||
Banks 8.3% | |||||
East West Bancorp, Inc. | 3,230,766 | 250,513,596 | |||
Fifth Third Bancorp | 10,370,130 | 440,108,319 | |||
Huntington Bancshares, Inc. | 22,652,896 | 350,213,772 | |||
KeyCorp | 14,135,030 | 305,599,349 | |||
Truist Financial Corp. | 4,235,075 | 248,387,149 | |||
Capital markets 2.6% | |||||
Ameriprise Financial, Inc. | 1,526,935 | 403,294,072 | |||
State Street Corp. | 1,171,356 | 99,237,280 | |||
Consumer finance 2.7% | |||||
Capital One Financial Corp. | 614,883 | 99,592,600 | |||
Discover Financial Services | 2,116,696 | 260,036,104 | |||
SLM Corp. | 3,822,939 | 67,283,726 | |||
Synchrony Financial | 1,912,405 | 93,478,356 | |||
Insurance 4.8% | |||||
Aflac, Inc. | 1,429,698 | 74,530,157 | |||
Alleghany Corp. (A) | 256,501 | 160,161,789 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 9 |
Shares | Value | ||||
Financials (continued) | |||||
Insurance (continued) | |||||
American International Group, Inc. | 2,946,133 | $161,713,240 | |||
Aon PLC, Class A | 483,060 | 138,044,056 | |||
Everest Re Group, Ltd. | 617,724 | 154,912,825 | |||
Globe Life, Inc. | 1,096,628 | 97,632,791 | |||
RenaissanceRe Holdings, Ltd. | 426,685 | 59,479,889 | |||
The Travelers Companies, Inc. | 502,940 | 76,451,909 | |||
Thrifts and mortgage finance 0.3% | |||||
Essent Group, Ltd. | 1,133,788 | 49,898,010 | |||
Health care 9.2% | 1,761,744,318 | ||||
Health care equipment and supplies 1.3% | |||||
Boston Scientific Corp. (A) | 1,654,620 | 71,793,962 | |||
Zimmer Biomet Holdings, Inc. | 1,241,976 | 181,775,607 | |||
Health care providers and services 5.4% | |||||
AmerisourceBergen Corp. | 1,452,889 | 173,547,591 | |||
Centene Corp. (A) | 1,963,785 | 122,363,443 | |||
Cigna Corp. | 333,262 | 66,705,722 | |||
HCA Healthcare, Inc. | 573,364 | 139,166,910 | |||
Humana, Inc. | 418,112 | 162,708,285 | |||
Laboratory Corp. of America Holdings (A) | 264,264 | 74,374,460 | |||
Molina Healthcare, Inc. (A) | 396,847 | 107,668,560 | |||
Universal Health Services, Inc., Class B | 1,327,401 | 183,672,476 | |||
Life sciences tools and services 2.2% | |||||
Avantor, Inc. (A) | 4,712,269 | 192,731,802 | |||
ICON PLC (A) | 908,182 | 237,961,848 | |||
Pharmaceuticals 0.3% | |||||
Jazz Pharmaceuticals PLC (A) | 363,057 | 47,273,652 | |||
Industrials 20.5% | 3,932,188,638 | ||||
Aerospace and defense 6.2% | |||||
BWX Technologies, Inc. | 2,079,006 | 111,975,263 | |||
Curtiss-Wright Corp. | 716,574 | 90,417,307 | |||
General Dynamics Corp. | 686,190 | 134,513,826 | |||
Hexcel Corp. (A) | 2,184,564 | 129,741,256 | |||
Howmet Aerospace, Inc. | 5,835,576 | 182,069,971 | |||
Huntington Ingalls Industries, Inc. | 509,425 | 98,349,591 | |||
L3Harris Technologies, Inc. | 696,384 | 153,371,612 | |||
Maxar Technologies, Inc. | 1,998,674 | 56,602,448 | |||
Textron, Inc. | 3,378,043 | 235,821,182 | |||
Air freight and logistics 0.5% | |||||
Expeditors International of Washington, Inc. | 751,368 | 89,510,470 |
10 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Industrials (continued) | |||||
Airlines 0.9% | |||||
Alaska Air Group, Inc. (A) | 2,102,156 | $123,186,342 | |||
Southwest Airlines Company (A) | 1,174,286 | 60,393,529 | |||
Building products 1.4% | |||||
Advanced Drainage Systems, Inc. | 379,106 | 41,007,896 | |||
Masco Corp. | 1,548,290 | 86,007,510 | |||
Owens Corning | 945,981 | 80,881,376 | |||
Resideo Technologies, Inc. (A) | 2,698,782 | 66,902,806 | |||
Electrical equipment 3.5% | |||||
AMETEK, Inc. | 1,930,780 | 239,436,028 | |||
Eaton Corp. PLC | 1,823,783 | 272,309,040 | |||
Sensata Technologies Holding PLC (A) | 1,206,804 | 66,036,315 | |||
Vertiv Holdings Company | 3,750,532 | 90,350,316 | |||
Machinery 4.7% | |||||
Allison Transmission Holdings, Inc. | 1,187,250 | 41,933,670 | |||
Altra Industrial Motion Corp. | 1,690,918 | 93,592,311 | |||
Dover Corp. | 1,934,008 | 300,738,244 | |||
ITT, Inc. | 1,641,161 | 140,877,260 | |||
Oshkosh Corp. | 1,363,317 | 139,562,761 | |||
Parker-Hannifin Corp. | 633,632 | 177,176,180 | |||
Professional services 2.8% | |||||
ASGN, Inc. (A) | 1,357,475 | 153,584,722 | |||
Leidos Holdings, Inc. | 1,300,369 | 125,004,472 | |||
Robert Half International, Inc. | 1,682,506 | 168,805,827 | |||
Science Applications International Corp. | 1,005,147 | 86,000,377 | |||
Road and rail 0.5% | |||||
Norfolk Southern Corp. | 401,374 | 96,028,730 | |||
Information technology 9.0% | 1,735,189,873 | ||||
Communications equipment 0.3% | |||||
CommScope Holding Company, Inc. (A) | 3,612,470 | 49,093,467 | |||
Electronic equipment, instruments and components 1.8% | |||||
Flex, Ltd. (A) | 4,821,580 | 85,245,534 | |||
TE Connectivity, Ltd. | 1,860,177 | 255,253,488 | |||
IT services 1.5% | |||||
Cognizant Technology Solutions Corp., Class A | 1,062,482 | 78,846,789 | |||
EVERTEC, Inc. | 2,584,322 | 118,155,202 | |||
Global Payments, Inc. | 562,468 | 88,633,707 | |||
Semiconductors and semiconductor equipment 2.7% | |||||
KLA Corp. | 229,461 | 76,756,999 | |||
NXP Semiconductors NV | 1,135,675 | 222,444,662 | |||
Qorvo, Inc. (A) | 1,357,152 | 226,902,243 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 11 |
Shares | Value | ||||
Information technology (continued) | |||||
Software 1.1% | |||||
NortonLifeLock, Inc. | 4,951,672 | $125,277,302 | |||
SS&C Technologies Holdings, Inc. | 1,383,467 | 96,012,610 | |||
Technology hardware, storage and peripherals 1.6% | |||||
NetApp, Inc. | 1,473,550 | 132,265,848 | |||
Western Digital Corp. (A) | 2,166,478 | 122,276,018 | |||
Xerox Holdings Corp. | 2,876,847 | 58,026,004 | |||
Materials 4.9% | 942,694,807 | ||||
Chemicals 3.9% | |||||
Axalta Coating Systems, Ltd. (A) | 2,647,290 | 77,274,395 | |||
Corteva, Inc. | 3,260,190 | 137,188,795 | |||
DuPont de Nemours, Inc. | 2,229,918 | 151,612,125 | |||
FMC Corp. | 1,879,203 | 172,059,827 | |||
Ingevity Corp. (A) | 772,616 | 55,141,604 | |||
PPG Industries, Inc. | 610,892 | 87,363,665 | |||
The Mosaic Company | 2,155,267 | 76,986,137 | |||
Containers and packaging 1.0% | |||||
Avery Dennison Corp. | 356,333 | 73,835,761 | |||
Crown Holdings, Inc. | 1,103,716 | 111,232,498 | |||
Real estate 7.5% | 1,436,225,431 | ||||
Equity real estate investment trusts 7.5% | |||||
American Homes 4 Rent, Class A | 2,917,100 | 111,199,852 | |||
Cousins Properties, Inc. | 2,907,576 | 108,423,509 | |||
CyrusOne, Inc. | 1,227,548 | 95,024,491 | |||
Duke Realty Corp. | 3,559,941 | 170,414,376 | |||
Equity Residential | 2,227,798 | 180,273,414 | |||
Essex Property Trust, Inc. | 418,599 | 133,842,844 | |||
Healthpeak Properties, Inc. | 2,949,574 | 98,751,738 | |||
Kilroy Realty Corp. | 1,423,056 | 94,220,538 | |||
Lamar Advertising Company, Class A | 823,903 | 93,471,795 | |||
Regency Centers Corp. | 2,454,611 | 165,268,959 | |||
Welltower, Inc. | 2,249,198 | 185,333,915 | |||
Utilities 3.7% | 710,164,661 | ||||
Electric utilities 1.9% | |||||
American Electric Power Company, Inc. | 892,490 | 72,452,338 | |||
Edison International | 2,298,107 | 127,475,995 | |||
Entergy Corp. | 1,685,559 | 167,392,864 | |||
Multi-utilities 1.8% | |||||
CenterPoint Energy, Inc. | 9,603,023 | 236,234,366 | |||
DTE Energy Company | 954,338 | 106,609,098 | |||
12 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Yield (%) | Shares | Value | |||
Short-term investments 2.2% | $414,050,261 | ||||
(Cost $414,050,261) | |||||
Short-term funds 2.2% | 414,050,261 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 0.0250(B) | 414,050,261 | 414,050,261 |
Total investments (Cost $13,721,047,503) 100.0% | $19,180,151,435 | ||||
Other assets and liabilities, net 0.0% | 7,697,156 | ||||
Total net assets 100.0% | $19,187,848,591 |
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) | The rate shown is the annualized seven-day yield as of 9-30-21. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 13 |
Assets | |
Unaffiliated investments, at value (Cost $13,721,047,503) | $19,180,151,435 |
Dividends and interest receivable | 20,147,085 |
Receivable for fund shares sold | 34,922,907 |
Receivable for securities lending income | 296 |
Other assets | 661,983 |
Total assets | 19,235,883,706 |
Liabilities | |
Payable for investments purchased | 30,553,476 |
Payable for fund shares repurchased | 13,429,284 |
Payable to affiliates | |
Accounting and legal services fees | 862,537 |
Transfer agent fees | 1,377,360 |
Distribution and service fees | 31,698 |
Trustees’ fees | 73 |
Other liabilities and accrued expenses | 1,780,687 |
Total liabilities | 48,035,115 |
Net assets | $19,187,848,591 |
Net assets consist of | |
Paid-in capital | $12,517,896,731 |
Total distributable earnings (loss) | 6,669,951,860 |
Net assets | $19,187,848,591 |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($1,334,869,475 ÷ 50,851,306 shares)1 | $26.25 |
Class C ($74,462,792 ÷ 2,845,560 shares)1 | $26.17 |
Class I ($13,336,337,027 ÷ 485,130,395 shares) | $27.49 |
Class R2 ($101,685,070 ÷ 3,722,485 shares) | $27.32 |
Class R4 ($131,609,952 ÷ 4,796,581 shares) | $27.44 |
Class R6 ($4,208,884,275 ÷ 153,053,786 shares) | $27.50 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $27.63 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
14 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $136,003,721 |
Securities lending | 137,366 |
Interest | 55,721 |
Less foreign taxes withheld | (183,375) |
Total investment income | 136,013,433 |
Expenses | |
Investment management fees | 66,072,936 |
Distribution and service fees | 2,594,736 |
Accounting and legal services fees | 1,363,876 |
Transfer agent fees | 8,363,339 |
Trustees’ fees | 149,323 |
Custodian fees | 1,002,958 |
State registration fees | 180,769 |
Printing and postage | 329,042 |
Professional fees | 158,591 |
Other | 226,291 |
Total expenses | 80,441,861 |
Less expense reductions | (916,204) |
Net expenses | 79,525,657 |
Net investment income | 56,487,776 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | 571,953,092 |
Affiliated investments | 4,745 |
571,957,837 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | 8,983,769 |
Affiliated investments | 24 |
8,983,793 | |
Net realized and unrealized gain | 580,941,630 |
Increase in net assets from operations | $637,429,406 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 15 |
Six months ended 9-30-21 (unaudited) | Year ended 3-31-21 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $56,487,776 | $99,313,813 |
Net realized gain | 571,957,837 | 951,300,181 |
Change in net unrealized appreciation (depreciation) | 8,983,793 | 5,855,231,940 |
Increase in net assets resulting from operations | 637,429,406 | 6,905,845,934 |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (10,011,633) |
Class C | — | (337,541) |
Class I | — | (105,682,902) |
Class R2 | — | (827,271) |
Class R4 | — | (1,268,379) |
Class R6 | — | (39,590,248) |
Total distributions | — | (157,717,974) |
From fund share transactions | 1,307,642,826 | 578,280,006 |
Total increase | 1,945,072,232 | 7,326,407,966 |
Net assets | ||
Beginning of period | 17,242,776,359 | 9,916,368,393 |
End of period | $19,187,848,591 | $17,242,776,359 |
16 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $25.33 | $14.91 | $19.08 | $22.35 | $21.61 | $18.49 |
Net investment income2 | 0.05 | 0.10 | 0.14 | 0.12 | 0.07 | 0.10 |
Net realized and unrealized gain (loss) on investments | 0.87 | 10.54 | (3.83) | (1.01) | 2.11 | 3.57 |
Total from investment operations | 0.92 | 10.64 | (3.69) | (0.89) | 2.18 | 3.67 |
Less distributions | ||||||
From net investment income | — | (0.14) | (0.14) | (0.13) | (0.06) | (0.14) |
From net realized gain | — | (0.08) | (0.34) | (2.25) | (1.38) | (0.41) |
Total distributions | — | (0.22) | (0.48) | (2.38) | (1.44) | (0.55) |
Net asset value, end of period | $26.25 | $25.33 | $14.91 | $19.08 | $22.35 | $21.61 |
Total return (%)3,4 | 3.635 | 71.55 | (20.06) | (2.98) | 10.15 | 19.96 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,335 | $1,204 | $782 | $1,184 | $1,547 | $2,088 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.116 | 1.12 | 1.12 | 1.11 | 1.11 | 1.12 |
Expenses including reductions | 1.106 | 1.11 | 1.12 | 1.10 | 1.10 | 1.12 |
Net investment income | 0.366 | 0.52 | 0.70 | 0.58 | 0.30 | 0.48 |
Portfolio turnover (%) | 11 | 527 | 54 | 53 | 53 | 50 |
1 | Six months ended 9-30-21. 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. |
7 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 17 |
CLASS C SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $25.34 | $14.94 | $19.13 | $22.42 | $21.77 | $18.65 |
Net investment loss2 | (0.06) | (0.05) | (0.01) | (0.04) | (0.10) | (0.05) |
Net realized and unrealized gain (loss) on investments | 0.89 | 10.53 | (3.84) | (1.00) | 2.13 | 3.58 |
Total from investment operations | 0.83 | 10.48 | (3.85) | (1.04) | 2.03 | 3.53 |
Less distributions | ||||||
From net realized gain | — | (0.08) | (0.34) | (2.25) | (1.38) | (0.41) |
Net asset value, end of period | $26.17 | $25.34 | $14.94 | $19.13 | $22.42 | $21.77 |
Total return (%)3,4 | 3.285 | 70.20 | (20.63) | (3.72) | 9.35 | 18.99 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $74 | $92 | $107 | $182 | $278 | $319 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.866 | 1.87 | 1.87 | 1.86 | 1.86 | 1.87 |
Expenses including reductions | 1.856 | 1.86 | 1.87 | 1.85 | 1.85 | 1.87 |
Net investment loss | (0.42)6 | (0.23) | (0.07) | (0.19) | (0.43) | (0.27) |
Portfolio turnover (%) | 11 | 527 | 54 | 53 | 53 | 50 |
1 | Six months ended 9-30-21. 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. |
7 | Excludes in-kind transactions. |
18 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $26.49 | $15.58 | $19.91 | $23.22 | $22.39 | $19.14 |
Net investment income2 | 0.08 | 0.16 | 0.20 | 0.18 | 0.14 | 0.16 |
Net realized and unrealized gain (loss) on investments | 0.92 | 11.02 | (4.00) | (1.06) | 2.19 | 3.69 |
Total from investment operations | 1.00 | 11.18 | (3.80) | (0.88) | 2.33 | 3.85 |
Less distributions | ||||||
From net investment income | — | (0.19) | (0.19) | (0.18) | (0.12) | (0.19) |
From net realized gain | — | (0.08) | (0.34) | (2.25) | (1.38) | (0.41) |
Total distributions | — | (0.27) | (0.53) | (2.43) | (1.50) | (0.60) |
Net asset value, end of period | $27.49 | $26.49 | $15.58 | $19.91 | $23.22 | $22.39 |
Total return (%)3 | 3.784 | 71.97 | (19.84) | (2.79) | 10.46 | 20.25 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $13,336 | $11,932 | $6,349 | $7,784 | $9,799 | $9,512 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.865 | 0.87 | 0.87 | 0.88 | 0.86 | 0.86 |
Expenses including reductions | 0.855 | 0.86 | 0.87 | 0.87 | 0.85 | 0.86 |
Net investment income | 0.615 | 0.78 | 0.97 | 0.82 | 0.58 | 0.75 |
Portfolio turnover (%) | 11 | 526 | 54 | 53 | 53 | 50 |
1 | Six months ended 9-30-21. 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. |
6 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 19 |
CLASS R2 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $26.37 | $15.53 | $19.85 | $23.14 | $22.32 | $19.09 |
Net investment income2 | 0.03 | 0.08 | 0.11 | 0.09 | 0.04 | 0.07 |
Net realized and unrealized gain (loss) on investments | 0.92 | 10.96 | (3.98) | (1.04) | 2.19 | 3.68 |
Total from investment operations | 0.95 | 11.04 | (3.87) | (0.95) | 2.23 | 3.75 |
Less distributions | ||||||
From net investment income | — | (0.12) | (0.11) | (0.09) | (0.03) | (0.11) |
From net realized gain | — | (0.08) | (0.34) | (2.25) | (1.38) | (0.41) |
Total distributions | — | (0.20) | (0.45) | (2.34) | (1.41) | (0.52) |
Net asset value, end of period | $27.32 | $26.37 | $15.53 | $19.85 | $23.14 | $22.32 |
Total return (%)3 | 3.604 | 71.23 | (20.14) | (3.14) | 10.03 | 19.76 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $102 | $106 | $77 | $131 | $188 | $216 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.255 | 1.25 | 1.26 | 1.27 | 1.26 | 1.27 |
Expenses including reductions | 1.245 | 1.24 | 1.25 | 1.26 | 1.25 | 1.26 |
Net investment income | 0.205 | 0.39 | 0.54 | 0.41 | 0.17 | 0.35 |
Portfolio turnover (%) | 11 | 526 | 54 | 53 | 53 | 50 |
1 | Six months ended 9-30-21. 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. |
6 | Excludes in-kind transactions. |
20 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R4 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $26.46 | $15.57 | $19.90 | $23.20 | $22.38 | $19.13 |
Net investment income2 | 0.06 | 0.14 | 0.17 | 0.15 | 0.09 | 0.12 |
Net realized and unrealized gain (loss) on investments | 0.92 | 10.99 | (4.00) | (1.05) | 2.20 | 3.70 |
Total from investment operations | 0.98 | 11.13 | (3.83) | (0.90) | 2.29 | 3.82 |
Less distributions | ||||||
From net investment income | — | (0.16) | (0.16) | (0.15) | (0.09) | (0.16) |
From net realized gain | — | (0.08) | (0.34) | (2.25) | (1.38) | (0.41) |
Total distributions | — | (0.24) | (0.50) | (2.40) | (1.47) | (0.57) |
Net asset value, end of period | $27.44 | $26.46 | $15.57 | $19.90 | $23.20 | $22.38 |
Total return (%)3 | 3.704 | 71.69 | (19.96) | (2.90) | 10.26 | 20.09 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $132 | $130 | $55 | $74 | $97 | $95 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.105 | 1.11 | 1.11 | 1.12 | 1.12 | 1.11 |
Expenses including reductions | 0.995 | 1.00 | 1.00 | 1.01 | 1.01 | 1.00 |
Net investment income | 0.465 | 0.65 | 0.81 | 0.68 | 0.42 | 0.60 |
Portfolio turnover (%) | 11 | 526 | 54 | 53 | 53 | 50 |
1 | Six months ended 9-30-21. 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. |
6 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 21 |
CLASS R6 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $26.48 | $15.58 | $19.90 | $23.21 | $22.38 | $19.13 |
Net investment income2 | 0.10 | 0.18 | 0.23 | 0.21 | 0.17 | 0.18 |
Net realized and unrealized gain (loss) on investments | 0.92 | 11.01 | (4.00) | (1.07) | 2.18 | 3.69 |
Total from investment operations | 1.02 | 11.19 | (3.77) | (0.86) | 2.35 | 3.87 |
Less distributions | ||||||
From net investment income | — | (0.21) | (0.21) | (0.20) | (0.14) | (0.21) |
From net realized gain | — | (0.08) | (0.34) | (2.25) | (1.38) | (0.41) |
Total distributions | — | (0.29) | (0.55) | (2.45) | (1.52) | (0.62) |
Net asset value, end of period | $27.50 | $26.48 | $15.58 | $19.90 | $23.21 | $22.38 |
Total return (%)3 | 3.854 | 72.06 | (19.72) | (2.66) | 10.56 | 20.35 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $4,209 | $3,778 | $2,546 | $2,994 | $2,748 | $1,774 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.755 | 0.76 | 0.76 | 0.77 | 0.77 | 0.77 |
Expenses including reductions | 0.745 | 0.75 | 0.76 | 0.76 | 0.76 | 0.76 |
Net investment income | 0.715 | 0.88 | 1.08 | 0.96 | 0.71 | 0.86 |
Portfolio turnover (%) | 11 | 526 | 54 | 53 | 53 | 50 |
1 | Six months ended 9-30-21. 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. |
6 | Excludes in-kind transactions. |
22 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 23 |
24 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 25 |
Class | Expense reduction |
Class A | $60,084 |
Class C | 3,962 |
Class I | 582,968 |
Class R2 | 4,886 |
Class | Expense reduction |
Class R4 | $6,149 |
Class R6 | 190,357 |
Total | $848,406 |
26 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.30% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
Class R4 | 0.25% | 0.10% |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 27 |
Class | Distribution and service fees | Transfer agent fees |
Class A | $1,654,081 | $757,085 |
Class C | 437,760 | 50,178 |
Class I | — | 7,343,969 |
Class R2 | 267,849 | 5,192 |
Class R4 | 235,046 | 6,519 |
Class R6 | — | 200,396 |
Total | $2,594,736 | $8,363,339 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $55,500,000 | 1 | 0.655% | $1,010 |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 7,699,133 | $205,733,406 | 13,472,994 | $275,798,014 |
Distributions reinvested | — | — | 392,018 | 8,620,473 |
Repurchased | (4,392,089) | (117,065,376) | (18,748,352) | (357,054,624) |
Net increase (decrease) | 3,307,044 | $88,668,030 | (4,883,340) | $(72,636,137) |
Class C shares | ||||
Sold | 316,258 | $8,412,579 | 600,150 | $12,511,177 |
Distributions reinvested | — | — | 15,155 | 334,157 |
Repurchased | (1,112,423) | (29,678,295) | (4,152,547) | (83,165,788) |
Net decrease | (796,165) | $(21,265,716) | (3,537,242) | $(70,320,454) |
28 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class I shares | ||||
Sold | 83,180,926 | $2,316,274,650 | 165,501,257 | $3,618,428,209 |
Distributions reinvested | — | — | 3,982,496 | 91,517,750 |
Repurchased | (48,489,734) | (1,352,596,217) | (126,485,840) | (2,572,453,814) |
Net increase | 34,691,192 | $963,678,433 | 42,997,913 | $1,137,492,145 |
Class R2 shares | ||||
Sold | 373,341 | $10,402,109 | 888,114 | $18,487,562 |
Distributions reinvested | — | — | 32,130 | 736,103 |
Repurchased | (667,868) | (18,604,361) | (1,852,216) | (38,500,430) |
Net decrease | (294,527) | $(8,202,252) | (931,972) | $(19,276,765) |
Class R4 shares | ||||
Sold | 574,129 | $15,992,251 | 4,035,160 | $73,620,175 |
Distributions reinvested | — | — | 55,244 | 1,268,379 |
Repurchased | (702,744) | (19,693,730) | (2,704,605) | (56,524,560) |
Net increase (decrease) | (128,615) | $(3,701,479) | 1,385,799 | $18,363,994 |
Class R6 shares | ||||
Sold | 24,436,029 | $680,525,354 | 38,945,260 | $804,385,733 |
Distributions reinvested | — | — | 1,631,198 | 37,468,623 |
Repurchased | (14,037,167) | (392,059,544) | (61,377,815) | (1,256,581,892) |
Net increase (decrease) | 10,398,862 | $288,465,810 | (20,801,357) | $(414,727,536) |
Class ADV shares | ||||
Sold | — | — | 2,365 | $40,000 |
Repurchased | — | — | (33,632) | (655,241) |
Net decrease | — | — | (31,267) | $(615,241) |
Total net increase | 47,177,791 | $1,307,642,826 | 14,198,534 | $578,280,006 |
Redesignation | Effective date | Amount | |||||
Class ADV shares as Class A shares | October 9, 2020 | $610,733 |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 29 |
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* | — | $1,229,904 | $117,468,589 | $(118,703,262) | $4,745 | $24 | $137,366 | — | — |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
30 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 31 |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
32 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 33 |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
34 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 35 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
36 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
(3) | subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 37 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Steven L. Pollack, 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 |
38 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF1860913 | 363SA 9/21 |
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 1 |
2 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2021 (% of net assets) | |
Microsoft Corp. | 2.0 |
Nutrien, Ltd. (New York Stock Exchange) | 1.9 |
Analog Devices, Inc. | 1.7 |
Broadcom, Inc. | 1.7 |
AbbVie, Inc. | 1.7 |
IBM Corp. | 1.5 |
Iron Mountain, Inc. | 1.5 |
MetLife, Inc. | 1.5 |
Allianz SE | 1.5 |
Restaurant Brands International, Inc. | 1.5 |
TOTAL | 16.5 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 3 |
TOP 10 COUNTRIES AS OF 9/30/2021 (% of net assets) | |
United States | 55.5 |
Canada | 8.5 |
Germany | 8.0 |
United Kingdom | 7.5 |
France | 5.0 |
Italy | 2.8 |
Japan | 2.3 |
Switzerland | 2.0 |
Norway | 1.4 |
South Korea | 1.4 |
TOTAL | 94.4 |
Cash and cash equivalents are not included. |
4 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | SEC 30-day yield (%) subsidized | SEC 30-day yield (%) unsubsidized† | ||||||
1-year | 5-year | 10-year | 6-month | 5-year | 10-year | as of 9-30-21 | as of 9-30-21 | ||
Class A | 16.43 | 5.28 | 7.45 | -2.42 | 29.36 | 105.12 | 2.15 | 1.96 | |
Class C | 20.55 | 5.55 | 7.21 | 1.24 | 31.01 | 100.68 | 1.49 | 1.35 | |
Class I1 | 22.82 | 6.61 | 8.32 | 2.75 | 37.70 | 122.36 | 2.53 | 2.38 | |
Class R21,2 | 22.31 | 6.19 | 7.87 | 2.54 | 35.05 | 113.27 | 2.15 | 2.01 | |
Class R61 | 22.98 | 6.73 | 8.41 | 2.81 | 38.48 | 124.30 | 2.63 | 2.48 | |
Class NAV1 | 22.96 | 6.72 | 8.43 | 2.80 | 38.44 | 124.72 | 2.64 | 2.50 | |
Index†† | 28.82 | 13.74 | 12.68 | 7.74 | 90.37 | 229.96 | — | — |
Class A | Class C | Class I | Class R2 | Class R6 | Class NAV | |
Gross (%) | 1.29 | 1.99 | 0.99 | 1.38 | 0.88 | 0.87 |
Net (%) | 1.09 | 1.84 | 0.84 | 1.24 | 0.74 | 0.86 |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 5 |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class C3 | 9-30-11 | 20,068 | 20,068 | 32,996 |
Class I1 | 9-30-11 | 22,236 | 22,236 | 32,996 |
Class R21,2 | 9-30-11 | 21,327 | 21,327 | 32,996 |
Class R61 | 9-30-11 | 22,430 | 22,430 | 32,996 |
Class NAV1 | 9-30-11 | 22,472 | 22,472 | 32,996 |
1 | For certain types of investors, as described in the fund’s prospectuses. |
2 | Class R2 shares were first offered on 3-1-12. The returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
3 | The contingent deferred sales charge is not applicable. |
6 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 7 |
Account value on 4-1-2021 | Ending value on 9-30-2021 | Expenses paid during period ended 9-30-20211 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,027.20 | $5.54 | 1.09% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.52 | 1.09% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,022.40 | 9.33 | 1.84% |
Hypothetical example | 1,000.00 | 1,015.80 | 9.30 | 1.84% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,027.50 | 4.27 | 0.84% |
Hypothetical example | 1,000.00 | 1,020.90 | 4.26 | 0.84% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,025.40 | 6.14 | 1.21% |
Hypothetical example | 1,000.00 | 1,019.00 | 6.12 | 1.21% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,028.10 | 3.76 | 0.74% |
Hypothetical example | 1,000.00 | 1,021.40 | 3.75 | 0.74% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,028.00 | 3.76 | 0.74% |
Hypothetical example | 1,000.00 | 1,021.40 | 3.75 | 0.74% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
8 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 97.7% | $1,065,464,263 | ||||
(Cost $761,044,769) | |||||
Canada 8.5% | 92,477,968 | ||||
BCE, Inc. | 186,478 | 9,341,567 | |||
Fortis, Inc. | 136,088 | 6,037,253 | |||
Great-West Lifeco, Inc. | 316,047 | 9,616,652 | |||
Nutrien, Ltd. (New York Stock Exchange) | 326,194 | 21,147,157 | |||
Restaurant Brands International, Inc. | 267,127 | 16,345,501 | |||
Rogers Communications, Inc., Class B | 122,360 | 5,714,191 | |||
Royal Bank of Canada | 140,863 | 14,016,236 | |||
TELUS Corp. | 466,759 | 10,259,411 | |||
France 5.0% | 54,990,988 | ||||
AXA SA | 425,276 | 11,785,738 | |||
Danone SA | 82,966 | 5,656,432 | |||
Orange SA | 844,284 | 9,130,785 | |||
Sanofi | 132,208 | 12,726,832 | |||
TotalEnergies SE | 328,283 | 15,691,201 | |||
Germany 8.0% | 87,221,458 | ||||
Allianz SE | 74,013 | 16,582,237 | |||
BASF SE | 158,173 | 11,991,097 | |||
Bayer AG | 98,485 | 5,345,304 | |||
Deutsche Post AG | 213,682 | 13,399,911 | |||
Deutsche Telekom AG | 725,725 | 14,553,781 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 59,091 | 16,124,064 | |||
Siemens AG | 56,405 | 9,225,064 | |||
Ireland 1.0% | 10,894,169 | ||||
Medtronic PLC | 86,910 | 10,894,169 | |||
Italy 2.8% | 30,334,210 | ||||
Assicurazioni Generali SpA | 521,671 | 11,048,532 | |||
Snam SpA | 2,421,539 | 13,395,641 | |||
Terna - Rete Elettrica Nazionale | 829,959 | 5,890,037 | |||
Japan 2.3% | 25,449,796 | ||||
Takeda Pharmaceutical Company, Ltd. | 335,000 | 11,049,231 | |||
Tokio Marine Holdings, Inc. | 143,500 | 7,692,319 | |||
Toyota Motor Corp. | 376,500 | 6,708,246 | |||
Norway 1.4% | 15,514,788 | ||||
Orkla ASA | 628,613 | 5,769,532 | |||
Telenor ASA | 578,972 | 9,745,256 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 9 |
Shares | Value | ||||
Singapore 0.5% | $5,737,367 | ||||
Singapore Exchange, Ltd. | 783,700 | 5,737,367 | |||
South Korea 1.4% | 15,277,404 | ||||
Samsung Electronics Company, Ltd., GDR (A) | 9,848 | 15,277,404 | |||
Spain 0.6% | 6,182,436 | ||||
Industria de Diseno Textil SA | 168,021 | 6,182,436 | |||
Switzerland 2.0% | 21,265,384 | ||||
Nestle SA | 54,558 | 6,573,697 | |||
Novartis AG | 107,438 | 8,809,831 | |||
Roche Holding AG | 16,116 | 5,881,856 | |||
Taiwan 1.2% | 13,494,912 | ||||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 120,868 | 13,494,912 | |||
United Kingdom 7.5% | 82,010,471 | ||||
AstraZeneca PLC, ADR | 185,939 | 11,167,496 | |||
BAE Systems PLC | 1,972,128 | 14,937,011 | |||
British American Tobacco PLC | 359,022 | 12,549,448 | |||
British American Tobacco PLC, ADR | 104,155 | 3,674,588 | |||
Coca-Cola Europacific Partners PLC | 136,550 | 7,549,850 | |||
GlaxoSmithKline PLC | 434,527 | 8,200,903 | |||
Linde PLC | 20,294 | 5,953,854 | |||
National Grid PLC | 499,885 | 5,956,490 | |||
Unilever PLC | 222,039 | 12,020,831 | |||
United States 55.5% | 604,612,912 | ||||
AbbVie, Inc. | 166,529 | 17,963,483 | |||
Altria Group, Inc. | 226,515 | 10,310,963 | |||
Ameren Corp. | 74,013 | 5,995,053 | |||
American Electric Power Company, Inc. | 134,525 | 10,920,740 | |||
American Tower Corp. | 22,681 | 6,019,764 | |||
Amgen, Inc. | 26,561 | 5,648,197 | |||
Analog Devices, Inc. | 112,241 | 18,798,123 | |||
Apple, Inc. | 78,788 | 11,148,502 | |||
AT&T, Inc. | 249,495 | 6,738,860 | |||
BlackRock, Inc. | 9,550 | 8,009,203 | |||
Broadcom, Inc. | 38,499 | 18,669,320 | |||
Chevron Corp. | 88,338 | 8,961,890 | |||
Cisco Systems, Inc. | 283,816 | 15,448,105 | |||
Cummins, Inc. | 35,514 | 7,975,024 | |||
Dominion Energy, Inc. | 121,166 | 8,847,541 | |||
Dow, Inc. | 138,774 | 7,987,831 | |||
Duke Energy Corp. | 59,091 | 5,766,691 | |||
Eaton Corp. PLC | 48,049 | 7,174,196 | |||
Emerson Electric Company | 140,266 | 13,213,057 |
10 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
United States (continued) | |||||
Entergy Corp. | 96,097 | $9,543,393 | |||
Enterprise Products Partners LP | 501,378 | 10,849,820 | |||
Evergy, Inc. | 148,623 | 9,244,351 | |||
Hanesbrands, Inc. | 359,619 | 6,171,062 | |||
Hasbro, Inc. | 104,752 | 9,345,973 | |||
IBM Corp. | 120,868 | 16,792,191 | |||
Intel Corp. | 235,480 | 12,546,374 | |||
Iron Mountain, Inc. | 385,583 | 16,753,581 | |||
Johnson & Johnson | 49,242 | 7,952,583 | |||
JPMorgan Chase & Co. | 70,432 | 11,529,014 | |||
Kimberly-Clark Corp. | 61,180 | 8,102,679 | |||
KLA Corp. | 36,617 | 12,248,753 | |||
Lazard, Ltd., Class A | 310,513 | 14,221,495 | |||
Leggett & Platt, Inc. | 148,324 | 6,650,848 | |||
Lockheed Martin Corp. | 19,100 | 6,591,410 | |||
LyondellBasell Industries NV, Class A | 83,861 | 7,870,355 | |||
Magellan Midstream Partners LP | 185,331 | 8,447,387 | |||
McDonald’s Corp. | 29,247 | 7,051,744 | |||
Merck & Company, Inc. | 148,324 | 11,140,616 | |||
MetLife, Inc. | 270,709 | 16,710,867 | |||
Microsoft Corp. | 77,594 | 21,875,300 | |||
MSC Industrial Direct Company, Inc., Class A | 104,624 | 8,389,799 | |||
NextEra Energy, Inc. | 82,966 | 6,514,490 | |||
NiSource, Inc. | 109,198 | 2,645,868 | |||
Omnicom Group, Inc. | 75,505 | 5,471,092 | |||
PepsiCo, Inc. | 44,169 | 6,643,459 | |||
Pfizer, Inc. | 270,684 | 11,642,119 | |||
Philip Morris International, Inc. | 155,745 | 14,763,069 | |||
Phillips 66 | 87,144 | 6,102,694 | |||
Raytheon Technologies Corp. | 74,013 | 6,362,157 | |||
T. Rowe Price Group, Inc. | 32,530 | 6,398,651 | |||
Target Corp. | 28,650 | 6,554,261 | |||
Texas Instruments, Inc. | 56,405 | 10,841,605 | |||
The Coca-Cola Company | 166,519 | 8,737,252 | |||
The Home Depot, Inc. | 20,592 | 6,759,530 | |||
The PNC Financial Services Group, Inc. | 37,305 | 7,298,350 | |||
The Procter & Gamble Company | 44,766 | 6,258,287 | |||
Truist Financial Corp. | 157,277 | 9,224,296 | |||
United Parcel Service, Inc., Class B | 34,320 | 6,249,672 | |||
Vail Resorts, Inc. (B) | 17,608 | 5,881,952 | |||
Verizon Communications, Inc. | 214,279 | 11,573,209 | |||
Watsco, Inc. | 21,786 | 5,765,011 | |||
WEC Energy Group, Inc. | 64,761 | 5,711,920 | |||
Welltower, Inc. | 68,939 | 5,680,574 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 11 |
Shares | Value | ||||
United States (continued) | |||||
WP Carey, Inc. | 80,877 | $5,907,256 |
Total investments (Cost $761,044,769) 97.7% | $1,065,464,263 | ||||
Other assets and liabilities, net 2.3% | 24,856,801 | ||||
Total net assets 100.0% | $1,090,321,064 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
(A) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(B) | Non-income producing security. |
12 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $761,044,769) | $1,065,464,263 |
Cash | 12,618,392 |
Foreign currency, at value (Cost $278,719) | 276,371 |
Dividends and interest receivable | 6,393,505 |
Receivable for fund shares sold | 1,060,679 |
Receivable for investments sold | 30,506,127 |
Receivable for securities lending income | 4,183 |
Receivable from affiliates | 2,775 |
Other assets | 111,348 |
Total assets | 1,116,437,643 |
Liabilities | |
Payable for investments purchased | 24,942,789 |
Payable for fund shares repurchased | 856,576 |
Payable to affiliates | |
Accounting and legal services fees | 56,713 |
Transfer agent fees | 69,716 |
Distribution and service fees | 115 |
Trustees’ fees | 39 |
Other liabilities and accrued expenses | 190,631 |
Total liabilities | 26,116,579 |
Net assets | $1,090,321,064 |
Net assets consist of | |
Paid-in capital | $700,979,608 |
Total distributable earnings (loss) | 389,341,456 |
Net assets | $1,090,321,064 |
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 ($315,055,528 ÷ 26,440,293 shares)1 | $11.92 |
Class C ($24,402,324 ÷ 2,043,405 shares)1 | $11.94 |
Class I ($368,890,422 ÷ 30,837,213 shares) | $11.96 |
Class R2 ($644,526 ÷ 53,796 shares) | $11.98 |
Class R6 ($267,295,151 ÷ 22,382,439 shares) | $11.94 |
Class NAV ($114,033,113 ÷ 9,541,363 shares) | $11.95 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $12.55 |
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 Global Shareholder Yield Fund | 13 |
Investment income | |
Dividends | $24,054,893 |
Securities lending | 122,232 |
Interest | 6,426 |
Less foreign taxes withheld | (1,482,805) |
Total investment income | 22,700,746 |
Expenses | |
Investment management fees | 4,617,327 |
Distribution and service fees | 633,018 |
Accounting and legal services fees | 81,385 |
Transfer agent fees | 444,805 |
Trustees’ fees | 14,486 |
Custodian fees | 133,582 |
State registration fees | 64,918 |
Printing and postage | 61,895 |
Professional fees | 47,233 |
Other | 41,781 |
Total expenses | 6,140,430 |
Less expense reductions | (940,361) |
Net expenses | 5,200,069 |
Net investment income | 17,500,677 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 48,117,721 |
Affiliated investments | 5,177 |
48,122,898 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (32,522,792) |
Affiliated investments | (6,201) |
(32,528,993) | |
Net realized and unrealized gain | 15,593,905 |
Increase in net assets from operations | $33,094,582 |
14 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Six months ended 9-30-21 (unaudited) | Year ended 3-31-21 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $17,500,677 | $44,096,658 |
Net realized gain | 48,122,898 | 126,471,147 |
Change in net unrealized appreciation (depreciation) | (32,528,993) | 367,816,897 |
Increase in net assets resulting from operations | 33,094,582 | 538,384,702 |
Distributions to shareholders | ||
From earnings | ||
Class A | (4,324,149) | (8,005,340) |
Class B1 | — | (5,944) |
Class C | (260,596) | (722,643) |
Class I | (5,689,901) | (17,667,353) |
Class R2 | (8,132) | (15,041) |
Class R6 | (4,152,887) | (8,126,137) |
Class NAV | (1,770,334) | (9,486,100) |
Total distributions | (16,205,999) | (44,028,558) |
From fund share transactions | (64,576,611) | (833,898,075) |
Total decrease | (47,688,028) | (339,541,931) |
Net assets | ||
Beginning of period | 1,138,009,092 | 1,477,551,023 |
End of period | $1,090,321,064 | $1,138,009,092 |
1 | Share class was redesignated during the period. Refer to Note 5 for further details. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 15 |
CLASS A SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.76 | $8.62 | $11.03 | $11.14 | $11.31 | $10.78 | $9.89 |
Net investment income3 | 0.17 | 0.27 | 0.33 | 0.35 | 0.04 | 0.32 | 0.27 |
Net realized and unrealized gain (loss) on investments | 0.15 | 3.16 | (2.21) | 0.16 | (0.16) | 0.53 | 0.92 |
Total from investment operations | 0.32 | 3.43 | (1.88) | 0.51 | (0.12) | 0.85 | 1.19 |
Less distributions | |||||||
From net investment income | (0.16) | (0.29) | (0.33) | (0.35) | (0.05) | (0.32) | (0.30) |
From net realized gain | — | — | (0.20) | (0.27) | — | — | — |
Total distributions | (0.16) | (0.29) | (0.53) | (0.62) | (0.05) | (0.32) | (0.30) |
Net asset value, end of period | $11.92 | $11.76 | $8.62 | $11.03 | $11.14 | $11.31 | $10.78 |
Total return (%)4,5 | 2.726 | 40.22 | (17.96) | 4.86 | (1.03)6 | 7.87 | 12.21 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $315 | $318 | $257 | $334 | $348 | $355 | $381 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.297 | 1.29 | 1.29 | 1.28 | 1.307 | 1.27 | 1.29 |
Expenses including reductions | 1.097 | 1.09 | 1.09 | 1.09 | 1.097 | 1.09 | 1.26 |
Net investment income | 2.837 | 2.58 | 2.96 | 3.18 | 3.787 | 2.85 | 2.62 |
Portfolio turnover (%) | 10 | 30 | 33 | 16 | 2 | 19 | 25 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
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. |
16 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.79 | $8.64 | $11.05 | $11.16 | $11.31 | $10.78 | $9.90 |
Net investment income3 | 0.13 | 0.19 | 0.25 | 0.27 | 0.03 | 0.24 | 0.20 |
Net realized and unrealized gain (loss) on investments | 0.14 | 3.17 | (2.21) | 0.16 | (0.15) | 0.52 | 0.91 |
Total from investment operations | 0.27 | 3.36 | (1.96) | 0.43 | (0.12) | 0.76 | 1.11 |
Less distributions | |||||||
From net investment income | (0.12) | (0.21) | (0.25) | (0.27) | (0.03) | (0.23) | (0.23) |
From net realized gain | — | — | (0.20) | (0.27) | — | — | — |
Total distributions | (0.12) | (0.21) | (0.45) | (0.54) | (0.03) | (0.23) | (0.23) |
Net asset value, end of period | $11.94 | $11.79 | $8.64 | $11.05 | $11.16 | $11.31 | $10.78 |
Total return (%)4,5 | 2.246 | 39.22 | (18.59) | 4.06 | (1.05)6 | 6.98 | 11.41 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $24 | $29 | $44 | $75 | $107 | $110 | $126 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.997 | 1.99 | 1.99 | 1.97 | 2.007 | 1.97 | 1.99 |
Expenses including reductions | 1.847 | 1.84 | 1.84 | 1.84 | 1.847 | 1.84 | 1.97 |
Net investment income | 2.137 | 1.89 | 2.27 | 2.49 | 3.037 | 2.11 | 1.92 |
Portfolio turnover (%) | 10 | 30 | 33 | 16 | 2 | 19 | 25 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
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 Global Shareholder Yield Fund | 17 |
CLASS I SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.81 | $8.65 | $11.07 | $11.18 | $11.35 | $10.82 | $9.93 |
Net investment income3 | 0.19 | 0.29 | 0.36 | 0.38 | 0.04 | 0.36 | 0.31 |
Net realized and unrealized gain (loss) on investments | 0.14 | 3.18 | (2.22) | 0.16 | (0.15) | 0.51 | 0.91 |
Total from investment operations | 0.33 | 3.47 | (1.86) | 0.54 | (0.11) | 0.87 | 1.22 |
Less distributions | |||||||
From net investment income | (0.18) | (0.31) | (0.36) | (0.38) | (0.06) | (0.34) | (0.33) |
From net realized gain | — | — | (0.20) | (0.27) | — | — | — |
Total distributions | (0.18) | (0.31) | (0.56) | (0.65) | (0.06) | (0.34) | (0.33) |
Net asset value, end of period | $11.96 | $11.81 | $8.65 | $11.07 | $11.18 | $11.35 | $10.82 |
Total return (%)4 | 2.755 | 40.65 | (17.77) | 5.10 | (0.96)5 | 8.10 | 12.51 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $369 | $396 | $605 | $815 | $881 | $894 | $1,245 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.996 | 0.99 | 0.99 | 0.99 | 1.006 | 0.97 | 0.97 |
Expenses including reductions | 0.846 | 0.84 | 0.84 | 0.84 | 0.846 | 0.84 | 0.95 |
Net investment income | 3.106 | 2.78 | 3.22 | 3.44 | 4.036 | 3.12 | 2.91 |
Portfolio turnover (%) | 10 | 30 | 33 | 16 | 2 | 19 | 25 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
18 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R2 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.83 | $8.66 | $11.08 | $11.19 | $11.35 | $10.82 | $9.93 |
Net investment income3 | 0.17 | 0.25 | 0.32 | 0.33 | 0.03 | 0.30 | 0.26 |
Net realized and unrealized gain (loss) on investments | 0.13 | 3.19 | (2.22) | 0.16 | (0.14) | 0.53 | 0.92 |
Total from investment operations | 0.30 | 3.44 | (1.90) | 0.49 | (0.11) | 0.83 | 1.18 |
Less distributions | |||||||
From net investment income | (0.15) | (0.27) | (0.32) | (0.33) | (0.05) | (0.30) | (0.29) |
From net realized gain | — | — | (0.20) | (0.27) | — | — | — |
Total distributions | (0.15) | (0.27) | (0.52) | (0.60) | (0.05) | (0.30) | (0.29) |
Net asset value, end of period | $11.98 | $11.83 | $8.66 | $11.08 | $11.19 | $11.35 | $10.82 |
Total return (%)4 | 2.545 | 40.19 | (18.10) | 4.68 | (0.98)5 | 7.68 | 12.04 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $1 | $1 | $1 | $1 | $1 | $1 | $1 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.346 | 1.35 | 1.34 | 1.36 | 1.386 | 1.37 | 1.36 |
Expenses including reductions | 1.216 | 1.23 | 1.22 | 1.22 | 1.246 | 1.24 | 1.34 |
Net investment income | 2.726 | 2.45 | 2.86 | 3.02 | 3.626 | 2.62 | 2.50 |
Portfolio turnover (%) | 10 | 30 | 33 | 16 | 2 | 19 | 25 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 19 |
CLASS R6 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.79 | $8.64 | $11.06 | $11.16 | $11.34 | $10.81 | $9.92 |
Net investment income3 | 0.20 | 0.30 | 0.37 | 0.39 | 0.04 | 0.31 | 0.30 |
Net realized and unrealized gain (loss) on investments | 0.14 | 3.17 | (2.22) | 0.17 | (0.16) | 0.57 | 0.93 |
Total from investment operations | 0.34 | 3.47 | (1.85) | 0.56 | (0.12) | 0.88 | 1.23 |
Less distributions | |||||||
From net investment income | (0.19) | (0.32) | (0.37) | (0.39) | (0.06) | (0.35) | (0.34) |
From net realized gain | — | — | (0.20) | (0.27) | — | — | — |
Total distributions | (0.19) | (0.32) | (0.57) | (0.66) | (0.06) | (0.35) | (0.34) |
Net asset value, end of period | $11.94 | $11.79 | $8.64 | $11.06 | $11.16 | $11.34 | $10.81 |
Total return (%)4 | 2.815 | 40.72 | (17.69) | 5.31 | (1.03)5 | 8.22 | 12.66 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $267 | $275 | $245 | $351 | $477 | $483 | $2 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.896 | 0.88 | 0.88 | 0.88 | 0.896 | 0.87 | 0.87 |
Expenses including reductions | 0.746 | 0.74 | 0.74 | 0.74 | 0.746 | 0.74 | 0.85 |
Net investment income | 3.196 | 2.94 | 3.34 | 3.57 | 4.136 | 2.61 | 2.85 |
Portfolio turnover (%) | 10 | 30 | 33 | 16 | 2 | 19 | 25 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
20 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS NAV SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.80 | $8.64 | $11.06 | $11.17 | $11.34 | $10.81 | $9.92 |
Net investment income3 | 0.20 | 0.29 | 0.37 | 0.39 | 0.04 | 0.36 | 0.32 |
Net realized and unrealized gain (loss) on investments | 0.14 | 3.19 | (2.22) | 0.16 | (0.15) | 0.52 | 0.91 |
Total from investment operations | 0.34 | 3.48 | (1.85) | 0.55 | (0.11) | 0.88 | 1.23 |
Less distributions | |||||||
From net investment income | (0.19) | (0.32) | (0.37) | (0.39) | (0.06) | (0.35) | (0.34) |
From net realized gain | — | — | (0.20) | (0.27) | — | — | — |
Total distributions | (0.19) | (0.32) | (0.57) | (0.66) | (0.06) | (0.35) | (0.34) |
Net asset value, end of period | $11.95 | $11.80 | $8.64 | $11.06 | $11.17 | $11.34 | $10.81 |
Total return (%)4 | 2.805 | 40.83 | (17.77) | 5.30 | (0.94)5 | 8.11 | 12.76 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $114 | $120 | $325 | $458 | $511 | $514 | $535 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.876 | 0.87 | 0.87 | 0.87 | 0.886 | 0.86 | 0.86 |
Expenses including reductions | 0.746 | 0.74 | 0.74 | 0.74 | 0.746 | 0.74 | 0.85 |
Net investment income | 3.206 | 2.87 | 3.32 | 3.54 | 4.136 | 3.19 | 3.03 |
Portfolio turnover (%) | 10 | 30 | 33 | 16 | 2 | 19 | 25 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 21 |
22 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT |
Total value at 9-30-21 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Canada | $92,477,968 | $92,477,968 | — | — |
France | 54,990,988 | — | $54,990,988 | — |
Germany | 87,221,458 | — | 87,221,458 | — |
Ireland | 10,894,169 | 10,894,169 | — | — |
Italy | 30,334,210 | — | 30,334,210 | — |
Japan | 25,449,796 | — | 25,449,796 | — |
Norway | 15,514,788 | — | 15,514,788 | — |
Singapore | 5,737,367 | — | 5,737,367 | — |
South Korea | 15,277,404 | — | 15,277,404 | — |
Spain | 6,182,436 | — | 6,182,436 | — |
Switzerland | 21,265,384 | — | 21,265,384 | — |
Taiwan | 13,494,912 | 13,494,912 | — | — |
United Kingdom | 82,010,471 | 28,345,788 | 53,664,683 | — |
United States | 604,612,912 | 604,612,912 | — | — |
Total investments in securities | $1,065,464,263 | $749,825,749 | $315,638,514 | — |
SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 23 |
24 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 25 |
26 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT |
Class | Expense reduction |
Class A | $330,239 |
Class C | 20,871 |
Class I | 301,419 |
Class R2 | 451 |
Class | Expense reduction |
Class R6 | $205,520 |
Class NAV | 81,861 |
Total | $940,361 |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.30% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 27 |
Class | Distribution and service fees | Transfer agent fees |
Class A | $491,738 | $187,362 |
Class C | 139,776 | 15,831 |
Class I | — | 228,161 |
Class R2 | 1,504 | 32 |
Class R6 | — | 13,419 |
Total | $633,018 | $444,805 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Borrower | $5,900,000 | 1 | 0.550% | ($90) |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,554,037 | $19,116,865 | 4,201,152 | $43,177,068 |
Distributions reinvested | 344,507 | 4,211,290 | 751,659 | 7,812,460 |
Repurchased | (2,453,686) | (30,125,608) | (7,791,441) | (80,038,962) |
Net decrease | (555,142) | $(6,797,453) | (2,838,630) | $(29,049,434) |
28 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class B shares | ||||
Sold | — | — | 10 | $85 |
Distributions reinvested | — | — | 587 | 5,650 |
Repurchased | — | — | (97,457) | (974,795) |
Net decrease | — | — | (96,860) | $(969,060) |
Class C shares | ||||
Sold | 62,298 | $765,114 | 65,566 | $667,126 |
Distributions reinvested | 21,197 | 259,789 | 69,731 | 713,734 |
Repurchased | (516,801) | (6,368,331) | (2,755,813) | (28,402,815) |
Net decrease | (433,306) | $(5,343,428) | (2,620,516) | $(27,021,955) |
Class I shares | ||||
Sold | 1,691,201 | $20,876,995 | 10,347,471 | $106,008,666 |
Distributions reinvested | 457,964 | 5,619,638 | 1,702,358 | 17,544,070 |
Repurchased | (4,866,130) | (60,203,799) | (48,411,827) | (533,916,191) |
Net decrease | (2,716,965) | $(33,707,166) | (36,361,998) | $(410,363,455) |
Class R2 shares | ||||
Sold | 1,943 | $24,088 | 6,371 | $65,071 |
Distributions reinvested | 654 | 8,041 | 1,425 | 14,882 |
Repurchased | (1,858) | (23,449) | (18,289) | (184,126) |
Net increase (decrease) | 739 | $8,680 | (10,493) | $(104,173) |
Class R6 shares | ||||
Sold | 1,510,917 | $18,593,827 | 4,503,509 | $46,050,096 |
Distributions reinvested | 338,923 | 4,151,973 | 781,802 | 8,123,971 |
Repurchased | (2,760,961) | (33,957,721) | (10,376,583) | (106,946,272) |
Net decrease | (911,121) | $(11,211,921) | (5,091,272) | $(52,772,205) |
Class NAV shares | ||||
Sold | 154,280 | $1,899,935 | 954,449 | $9,185,908 |
Distributions reinvested | 144,393 | 1,770,334 | 931,068 | 9,486,100 |
Repurchased | (906,286) | (11,195,592) | (29,323,493) | (332,289,801) |
Net decrease | (607,613) | $(7,525,323) | (27,437,976) | $(313,617,793) |
Total net decrease | (5,223,408) | $(64,576,611) | (74,457,745) | $(833,898,075) |
SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 29 |
Redesignation | Effective date | Amount | |||||
Class B shares as Class A shares | October 14, 2020 | $465,619 |
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* | — | $7,654,844 | $165,857,209 | $(173,511,029) | $5,177 | $(6,201) | $122,232 | — | — |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
30 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 31 |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
32 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 33 |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
34 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | the Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 35 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund is being monitored and reasonably addressed, where appropriate; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund. |
36 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 37 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
John M. Tobin, Ph.D., CFA
Kera Van Valen, CFA
Michael A.Welhoelter, 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 |
38 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF1860920 | 320SA 9/21 |
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 1 |
2 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2021 (% of net assets) | |
Taiwan Semiconductor Manufacturing Company, Ltd. | 5.6 |
Nestle SA | 4.0 |
Tencent Holdings, Ltd. | 3.7 |
ASML Holding NV | 3.4 |
AstraZeneca PLC | 3.1 |
Recruit Holdings Company, Ltd. | 3.1 |
Novo Nordisk A/S, B Shares | 3.0 |
Sony Group Corp. | 2.7 |
Hoya Corp. | 2.5 |
Cellnex Telecom SA | 2.3 |
TOTAL | 33.4 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 3 |
TOP 10 COUNTRIES AS OF 9/30/2021 (% of net assets) | |
China | 11.8 |
France | 10.3 |
Japan | 10.0 |
United Kingdom | 9.1 |
Switzerland | 8.7 |
Taiwan | 7.9 |
Netherlands | 6.3 |
Denmark | 5.2 |
India | 5.1 |
Ireland | 4.9 |
TOTAL | 79.3 |
Cash and cash equivalents are not included. |
4 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||||
1-year | 5-year | 10-year | 6-month | 5-year | 10-year | ||
Class A | 14.33 | 11.51 | 11.59 | -1.35 | 72.38 | 199.44 | |
Class C | 18.50 | 11.86 | 11.37 | 2.45 | 75.17 | 193.47 | |
Class I1 | 20.72 | 12.98 | 12.52 | 3.97 | 84.12 | 225.28 | |
Class R21,2 | 20.24 | 12.55 | 12.09 | 3.77 | 80.62 | 213.07 | |
Class R41,2 | 20.57 | 12.83 | 12.27 | 3.90 | 82.87 | 218.29 | |
Class R61,2 | 20.86 | 13.11 | 12.47 | 4.02 | 85.16 | 223.91 | |
Class 11 | 20.82 | 13.06 | 12.61 | 4.03 | 84.75 | 227.95 | |
Class NAV1,2 | 20.86 | 13.12 | 12.46 | 4.03 | 85.24 | 223.57 | |
Index 1† | 16.95 | 11.22 | 9.32 | 2.74 | 70.15 | 143.69 | |
Index 2† | 25.73 | 8.81 | 8.10 | 4.70 | 52.54 | 117.85 |
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | Class 1 | Class NAV | |
Gross (%) | 1.29 | 1.99 | 0.99 | 1.38 | 1.23 | 0.88 | 0.92 | 0.87 |
Net (%) | 1.28 | 1.98 | 0.98 | 1.37 | 1.12 | 0.88 | 0.91 | 0.86 |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 5 |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index 1 ($) | Index 2 ($) | |
Class C3 | 9-30-11 | 29,347 | 29,347 | 24,369 | 21,785 |
Class I1 | 9-30-11 | 32,528 | 32,528 | 24,369 | 21,785 |
Class R21,2 | 9-30-11 | 31,307 | 31,307 | 24,369 | 21,785 |
Class R41,2 | 9-30-11 | 31,829 | 31,829 | 24,369 | 21,785 |
Class R61,2 | 9-30-11 | 32,391 | 32,391 | 24,369 | 21,785 |
Class 11 | 9-30-11 | 32,795 | 32,795 | 24,369 | 21,785 |
Class NAV1,2 | 9-30-11 | 32,357 | 32,357 | 24,369 | 21,785 |
1 | For certain types of investors, as described in the fund’s prospectuses. |
2 | Class R2, Class R4, and Class R6 shares were first offered on 3-27-15. Class NAV shares were first offered on 6-2-15. The returns prior to these dates are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
3 | The contingent deferred sales charge is not applicable. |
6 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 7 |
Account value on 4-1-2021 | Ending value on 9-30-2021 | Expenses paid during period ended 9-30-20211 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,038.30 | $6.49 | 1.27% |
Hypothetical example | 1,000.00 | 1,018.70 | 6.43 | 1.27% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,034.50 | 10.05 | 1.97% |
Hypothetical example | 1,000.00 | 1,015.20 | 9.95 | 1.97% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,039.70 | 4.96 | 0.97% |
Hypothetical example | 1,000.00 | 1,020.20 | 4.91 | 0.97% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,037.70 | 7.00 | 1.37% |
Hypothetical example | 1,000.00 | 1,018.20 | 6.93 | 1.37% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,039.00 | 5.57 | 1.09% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.52 | 1.09% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,040.20 | 4.45 | 0.87% |
Hypothetical example | 1,000.00 | 1,020.70 | 4.41 | 0.87% | |
Class 1 | Actual expenses/actual returns | 1,000.00 | 1,040.30 | 4.65 | 0.91% |
Hypothetical example | 1,000.00 | 1,020.50 | 4.61 | 0.91% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,040.30 | 4.40 | 0.86% |
Hypothetical example | 1,000.00 | 1,020.80 | 4.36 | 0.86% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
8 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 98.8% | $13,353,359,536 | ||||
(Cost $9,826,333,532) | |||||
Australia 2.0% | 264,036,700 | ||||
Goodman Group | 17,159,613 | 264,036,700 | |||
Austria 1.4% | 189,381,747 | ||||
Erste Group Bank AG | 4,313,045 | 189,381,747 | |||
Canada 1.1% | 155,142,556 | ||||
Nuvei Corp. (A)(B) | 1,354,263 | 155,142,556 | |||
China 11.8% | 1,588,625,580 | ||||
ANTA Sports Products, Ltd. | 13,278,759 | 250,749,196 | |||
China Resources Mixc Lifestyle Services, Ltd. (A) | 15,215,600 | 83,705,734 | |||
ENN Energy Holdings, Ltd. | 9,812,199 | 161,837,339 | |||
Li Ning Company, Ltd. | 15,367,696 | 177,124,086 | |||
Longfor Group Holdings, Ltd. (A) | 8,919,933 | 40,755,963 | |||
Shenzhen Mindray Bio-Medical Electronics Company, Ltd., Class A | 3,410,490 | 203,583,184 | |||
Shenzhou International Group Holdings, Ltd. | 8,008,000 | 169,957,558 | |||
Tencent Holdings, Ltd. | 8,390,669 | 500,912,520 | |||
Denmark 5.2% | 704,500,442 | ||||
DSV A/S | 1,223,638 | 292,894,791 | |||
Novo Nordisk A/S, B Shares | 4,270,230 | 411,605,651 | |||
France 10.3% | 1,390,453,469 | ||||
Airbus SE (B) | 2,072,301 | 274,736,247 | |||
Bureau Veritas SA | 4,498,280 | 138,822,113 | |||
Capgemini SE | 799,478 | 165,792,600 | |||
Edenred | 4,351,665 | 234,259,977 | |||
Safran SA | 1,856,271 | 234,781,509 | |||
Schneider Electric SE | 1,165,200 | 194,068,069 | |||
Worldline SA (A)(B) | 1,941,508 | 147,992,954 | |||
Germany 2.6% | 357,257,104 | ||||
Brenntag SE | 2,288,470 | 212,585,926 | |||
Siemens AG | 884,566 | 144,671,178 | |||
Hong Kong 2.1% | 283,870,638 | ||||
Hong Kong Exchanges & Clearing, Ltd. | 4,619,500 | 283,870,638 | |||
India 5.1% | 693,507,076 | ||||
Bharti Airtel, Ltd. (B) | 15,101,757 | 139,641,633 | |||
Eicher Motors, Ltd. | 2,253,374 | 84,251,147 | |||
Housing Development Finance Corp., Ltd. | 5,402,788 | 198,943,483 | |||
Infosys, Ltd. | 12,041,706 | 270,670,813 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 9 |
Shares | Value | ||||
Ireland 4.9% | $656,896,921 | ||||
Accenture PLC, Class A | 703,759 | 225,146,579 | |||
Flutter Entertainment PLC (B) | 882,051 | 173,496,355 | |||
ICON PLC (B) | 985,627 | 258,253,987 | |||
Italy 2.3% | 307,791,851 | ||||
Moncler SpA | 2,347,890 | 143,198,734 | |||
Nexi SpA (A)(B) | 8,826,500 | 164,593,117 | |||
Japan 10.0% | 1,356,976,566 | ||||
Food & Life Companies, Ltd. | 4,909,300 | 225,743,896 | |||
Hoya Corp. | 2,211,600 | 345,051,214 | |||
Recruit Holdings Company, Ltd. | 6,774,400 | 414,091,006 | |||
Sony Group Corp. | 3,351,600 | 372,090,450 | |||
Netherlands 6.3% | 848,890,046 | ||||
ASML Holding NV | 610,200 | 455,853,456 | |||
NXP Semiconductors NV | 1,060,676 | 207,754,608 | |||
Wolters Kluwer NV | 1,748,007 | 185,281,982 | |||
Spain 2.3% | 304,031,144 | ||||
Cellnex Telecom SA (A)(B) | 4,928,925 | 304,031,144 | |||
Sweden 4.2% | 571,503,860 | ||||
Sandvik AB | 7,413,973 | 169,381,909 | |||
Swedish Match AB | 25,802,817 | 225,841,559 | |||
Volvo AB, B Shares | 7,895,572 | 176,280,392 | |||
Switzerland 8.7% | 1,172,395,182 | ||||
Julius Baer Group, Ltd. | 2,929,335 | 194,624,178 | |||
Kuehne + Nagel International AG | 455,496 | 155,506,909 | |||
Nestle SA | 4,435,488 | 534,432,249 | |||
Partners Group Holding AG | 184,432 | 287,831,846 | |||
Taiwan 7.9% | 1,067,787,940 | ||||
Accton Technology Corp. | 8,313,000 | 78,346,418 | |||
MediaTek, Inc. | 7,175,364 | 230,956,969 | |||
Taiwan Semiconductor Manufacturing Company, Ltd. | 36,673,501 | 758,484,553 | |||
United Kingdom 9.1% | 1,232,968,862 | ||||
Allfunds Group PLC (B) | 6,265,557 | 121,812,063 | |||
Anglo American PLC | 3,824,372 | 134,039,111 | |||
AstraZeneca PLC | 3,436,273 | 414,131,909 | |||
B&M European Value Retail SA | 23,238,387 | 184,359,798 | |||
IHS Markit, Ltd. | 1,959,978 | 228,572,634 | |||
Intermediate Capital Group PLC | 5,479,867 | 150,053,347 | |||
United States 1.5% | 207,341,852 | ||||
Aon PLC, Class A | 725,555 | 207,341,852 |
10 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Rights 0.0% | $2,227,801 | ||||
(Cost $0) | |||||
Bharti Airtel, Ltd. (Expiration Date: 10-22-21; Strike Price: INR 535.00) (B) | 1,078,696 | 2,227,801 | |||
Par value^ | Value | ||||
Short-term investments 1.0% | $130,400,000 | ||||
(Cost $130,400,000) | |||||
Repurchase agreement 1.0% | 130,400,000 | ||||
Bank of America Corp. Tri-Party Repurchase Agreement dated 9-30-21 at 0.050% to be repurchased at $53,500,074 on 10-1-21, collateralized by $52,012,200 U.S. Treasury Notes, 0.500% - 3.125% due 8-31-27 to 11-15-28 (valued at $54,570,070) | 53,500,000 | 53,500,000 | |||
Societe Generale SA Tri-Party Repurchase Agreement dated 9-30-21 at 0.045% to be repurchased at $76,900,096 on 10-1-21, collateralized by $7,282,692 Federal Home Loan Mortgage Corp., 2.000% - 5.559% due 6-1-30 to 2-1-51 (valued at $7,302,877), $58,677 Federal National Mortgage Association, 1.556% - 1.832% due 11-1-26 to 8-1-51 (valued at $60,248), $15,732,485 Government National Mortgage Association, 2.500% - 3.000% due 11-20-50 to 6-20-51 (valued at $16,256,497), $800 U.S. Treasury Bills, 0.000% due 10-7-21 to 11-4-21 (valued at $800), $6,069,700 U.S. Treasury Bonds, 1.750% - 7.625% due 2-15-25 to 2-15-50 (valued at $6,017,368) and $48,456,400 U.S. Treasury Notes, 0.125% - 3.000% due 10-31-21 to 5-15-30 (valued at $48,800,263) | 76,900,000 | 76,900,000 |
Total investments (Cost $9,956,733,532) 99.8% | $13,485,987,337 | ||||
Other assets and liabilities, net 0.2% | 27,695,382 | ||||
Total net assets 100.0% | $13,513,682,719 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Currency Abbreviations | |
INR | Indian Rupee |
Security Abbreviations and Legend | |
(A) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(B) | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 11 |
Assets | |
Unaffiliated investments, at value (Cost $9,956,733,532) | $13,485,987,337 |
Cash | 36,034 |
Foreign currency, at value (Cost $1,296,930) | 1,314,567 |
Dividends and interest receivable | 25,352,770 |
Receivable for fund shares sold | 28,303,504 |
Receivable for investments sold | 20,030,435 |
Receivable for securities lending income | 34 |
Other assets | 492,495 |
Total assets | 13,561,517,176 |
Liabilities | |
Foreign capital gains tax payable | 19,726,254 |
Payable for fund shares repurchased | 24,933,788 |
Payable to affiliates | |
Accounting and legal services fees | 655,325 |
Transfer agent fees | 963,192 |
Distribution and service fees | 13,788 |
Trustees’ fees | 1,866 |
Other liabilities and accrued expenses | 1,540,244 |
Total liabilities | 47,834,457 |
Net assets | $13,513,682,719 |
Net assets consist of | |
Paid-in capital | $8,518,734,005 |
Total distributable earnings (loss) | 4,994,948,714 |
Net assets | $13,513,682,719 |
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 ($730,722,360 ÷ 18,581,217 shares)1 | $39.33 |
Class C ($216,542,654 ÷ 5,690,426 shares)1 | $38.05 |
Class I ($8,779,365,545 ÷ 222,209,424 shares) | $39.51 |
Class R2 ($47,336,160 ÷ 1,203,917 shares) | $39.32 |
Class R4 ($50,375,520 ÷ 1,276,597 shares) | $39.46 |
Class R6 ($2,635,609,260 ÷ 66,607,815 shares) | $39.57 |
Class 1 ($83,387,457 ÷ 2,110,767 shares) | $39.51 |
Class NAV ($970,343,763 ÷ 24,554,411 shares) | $39.52 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $41.40 |
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. |
12 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $141,925,776 |
Securities lending | 1,243,730 |
Interest | 23,509 |
Less foreign taxes withheld | (16,034,687) |
Total investment income | 127,158,328 |
Expenses | |
Investment management fees | 55,269,900 |
Distribution and service fees | 2,482,788 |
Accounting and legal services fees | 985,047 |
Transfer agent fees | 5,782,598 |
Trustees’ fees | 110,696 |
Custodian fees | 2,405,590 |
State registration fees | 127,514 |
Printing and postage | 215,711 |
Professional fees | 150,639 |
Other | 205,579 |
Total expenses | 67,736,062 |
Less expense reductions | (649,181) |
Net expenses | 67,086,881 |
Net investment income | 60,071,447 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 711,561,765 |
Affiliated investments | (4,560) |
711,557,205 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (269,293,199)1 |
Affiliated investments | 676 |
(269,292,523) | |
Net realized and unrealized gain | 442,264,682 |
Increase in net assets from operations | $502,336,129 |
1 | Net of $11,363,988 increase in deferred India withholding taxes. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 13 |
Six months ended 9-30-21 (unaudited) | Year ended 3-31-21 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $60,071,447 | $15,010,934 |
Net realized gain | 711,557,205 | 1,176,128,200 |
Change in net unrealized appreciation (depreciation) | (269,292,523) | 3,083,964,837 |
Increase in net assets resulting from operations | 502,336,129 | 4,275,103,971 |
Distributions to shareholders | ||
From earnings | ||
Class I | — | (16,083,934) |
Class R4 | — | (13,891) |
Class R6 | — | (6,627,242) |
Class 1 | — | (221,773) |
Class NAV | — | (3,455,885) |
Total distributions | — | (26,402,725) |
From fund share transactions | 262,359,108 | 801,844,792 |
Total increase | 764,695,237 | 5,050,546,038 |
Net assets | ||
Beginning of period | 12,748,987,482 | 7,698,441,444 |
End of period | $13,513,682,719 | $12,748,987,482 |
14 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $37.88 | $24.58 | $26.79 | $28.52 | $28.43 | $21.69 | $19.90 |
Net investment income (loss)3 | 0.124 | (0.04) | 0.13 | 0.19 | 0.02 | 0.11 | 0.17 |
Net realized and unrealized gain (loss) on investments | 1.33 | 13.34 | (2.22) | (1.31) | 0.07 | 6.69 | 1.75 |
Total from investment operations | 1.45 | 13.30 | (2.09) | (1.12) | 0.09 | 6.80 | 1.92 |
Less distributions | |||||||
From net investment income | — | — | (0.12) | (0.15) | — | (0.06) | (0.13) |
From net realized gain | — | — | — | (0.46) | — | — | — |
Total distributions | — | — | (0.12) | (0.61) | — | (0.06) | (0.13) |
Net asset value, end of period | $39.33 | $37.88 | $24.58 | $26.79 | $28.52 | $28.43 | $21.69 |
Total return (%)5,6 | 3.837 | 54.11 | (7.87) | (3.69) | 0.327 | 31.38 | 9.62 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $731 | $670 | $456 | $609 | $827 | $803 | $427 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.288 | 1.29 | 1.30 | 1.28 | 1.298 | 1.29 | 1.32 |
Expenses including reductions | 1.278 | 1.28 | 1.29 | 1.28 | 1.288 | 1.28 | 1.32 |
Net investment income (loss) | 0.584,8 | (0.14) | 0.45 | 0.72 | 0.698 | 0.41 | 0.79 |
Portfolio turnover (%) | 34 | 78 | 80 | 98 | 4 | 65 | 94 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Does not reflect the effect of sales charges, if any. |
7 | Not annualized. |
8 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 15 |
CLASS C SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $36.78 | $24.03 | $26.27 | $28.00 | $27.93 | $21.40 | $19.66 |
Net investment income (loss)3 | (0.02)4 | (0.26) | (0.06) | —5 | —5 | (0.09) | 0.01 |
Net realized and unrealized gain (loss) on investments | 1.29 | 13.01 | (2.18) | (1.27) | 0.07 | 6.62 | 1.73 |
Total from investment operations | 1.27 | 12.75 | (2.24) | (1.27) | 0.07 | 6.53 | 1.74 |
Less distributions | |||||||
From net investment income | — | — | — | — | — | — | — |
From net realized gain | — | — | — | (0.46) | — | — | — |
Total distributions | — | — | — | (0.46) | — | — | — |
Net asset value, end of period | $38.05 | $36.78 | $24.03 | $26.27 | $28.00 | $27.93 | $21.40 |
Total return (%)6,7 | 3.458 | 53.06 | (8.53) | (4.37) | 0.258 | 30.51 | 8.85 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $217 | $224 | $181 | $263 | $349 | $333 | $145 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.989 | 1.99 | 2.00 | 1.98 | 1.999 | 1.99 | 2.03 |
Expenses including reductions | 1.979 | 1.98 | 1.99 | 1.98 | 1.989 | 1.98 | 2.02 |
Net investment income (loss) | (0.10)4,9 | (0.81) | (0.24) | (0.01) | (0.01)9 | (0.33) | 0.03 |
Portfolio turnover (%) | 34 | 78 | 80 | 98 | 4 | 65 | 94 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
5 | Less than $0.005 per share. |
6 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
7 | Does not reflect the effect of sales charges, if any. |
8 | Not annualized. |
9 | Annualized. |
16 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $38.00 | $24.63 | $26.84 | $28.59 | $28.49 | $21.72 | $19.94 |
Net investment income3 | 0.184 | 0.05 | 0.21 | 0.24 | 0.02 | 0.18 | 0.20 |
Net realized and unrealized gain (loss) on investments | 1.33 | 13.40 | (2.22) | (1.30) | 0.08 | 6.72 | 1.77 |
Total from investment operations | 1.51 | 13.45 | (2.01) | (1.06) | 0.10 | 6.90 | 1.97 |
Less distributions | |||||||
From net investment income | — | (0.08) | (0.20) | (0.23) | — | (0.13) | (0.19) |
From net realized gain | — | — | — | (0.46) | — | — | — |
Total distributions | — | (0.08) | (0.20) | (0.69) | — | (0.13) | (0.19) |
Net asset value, end of period | $39.51 | $38.00 | $24.63 | $26.84 | $28.59 | $28.49 | $21.72 |
Total return (%)5 | 3.976 | 54.62 | (7.61) | (3.45) | 0.356 | 31.82 | 9.96 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $8,779 | $8,176 | $4,677 | $5,576 | $5,631 | $5,424 | $2,380 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.987 | 0.99 | 1.00 | 1.00 | 1.007 | 0.99 | 1.02 |
Expenses including reductions | 0.977 | 0.98 | 0.99 | 0.99 | 0.997 | 0.98 | 1.01 |
Net investment income | 0.884,7 | 0.14 | 0.74 | 0.89 | 0.987 | 0.70 | 0.94 |
Portfolio turnover (%) | 34 | 78 | 80 | 98 | 4 | 65 | 94 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Not annualized. |
7 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 17 |
CLASS R2 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $37.89 | $24.60 | $26.82 | $28.55 | $28.45 | $21.71 | $19.92 |
Net investment income (loss)3 | 0.104 | (0.08) | 0.12 | 0.15 | 0.02 | 0.13 | (0.02) |
Net realized and unrealized gain (loss) on investments | 1.33 | 13.37 | (2.25) | (1.30) | 0.08 | 6.65 | 1.91 |
Total from investment operations | 1.43 | 13.29 | (2.13) | (1.15) | 0.10 | 6.78 | 1.89 |
Less distributions | |||||||
From net investment income | — | — | (0.09) | (0.12) | — | (0.04) | (0.10) |
From net realized gain | — | — | — | (0.46) | — | — | — |
Total distributions | — | — | (0.09) | (0.58) | — | (0.04) | (0.10) |
Net asset value, end of period | $39.32 | $37.89 | $24.60 | $26.82 | $28.55 | $28.45 | $21.71 |
Total return (%)5 | 3.776 | 54.02 | (7.98) | (3.81) | 0.356 | 31.23 | 9.54 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $47 | $50 | $30 | $43 | $43 | $37 | $12 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.387 | 1.38 | 1.39 | 1.38 | 1.327 | 1.40 | 1.42 |
Expenses including reductions | 1.377 | 1.37 | 1.38 | 1.37 | 1.317 | 1.39 | 1.42 |
Net investment income (loss) | 0.514,7 | (0.23) | 0.41 | 0.54 | 0.717 | 0.49 | (0.08) |
Portfolio turnover (%) | 34 | 78 | 80 | 98 | 4 | 65 | 94 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Not annualized. |
7 | Annualized. |
18 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R4 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $37.98 | $24.62 | $26.84 | $28.57 | $28.48 | $21.72 | $19.94 |
Net investment income (loss)3 | 0.154 | (0.05) | 0.16 | 0.22 | 0.02 | 0.17 | 0.19 |
Net realized and unrealized gain (loss) on investments | 1.33 | 13.46 | (2.22) | (1.30) | 0.07 | 6.69 | 1.75 |
Total from investment operations | 1.48 | 13.41 | (2.06) | (1.08) | 0.09 | 6.86 | 1.94 |
Less distributions | |||||||
From net investment income | — | (0.05) | (0.16) | (0.19) | — | (0.10) | (0.16) |
From net realized gain | — | — | — | (0.46) | — | — | — |
Total distributions | — | (0.05) | (0.16) | (0.65) | — | (0.10) | (0.16) |
Net asset value, end of period | $39.46 | $37.98 | $24.62 | $26.84 | $28.57 | $28.48 | $21.72 |
Total return (%)5 | 3.906 | 54.46 | (7.77) | (3.53) | 0.326 | 31.60 | 9.81 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $50 | $49 | $7 | $8 | $8 | $9 | $5 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.207 | 1.21 | 1.24 | 1.24 | 1.257 | 1.24 | 1.25 |
Expenses including reductions | 1.097 | 1.10 | 1.13 | 1.13 | 1.147 | 1.13 | 1.14 |
Net investment income (loss) | 0.774,7 | (0.13) | 0.58 | 0.80 | 0.837 | 0.64 | 0.88 |
Portfolio turnover (%) | 34 | 78 | 80 | 98 | 4 | 65 | 94 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Not annualized. |
7 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 19 |
CLASS R6 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $38.04 | $24.65 | $26.86 | $28.61 | $28.50 | $21.73 | $19.95 |
Net investment income3 | 0.204 | 0.08 | 0.24 | 0.27 | 0.03 | 0.05 | 0.20 |
Net realized and unrealized gain (loss) on investments | 1.33 | 13.42 | (2.22) | (1.30) | 0.08 | 6.88 | 1.79 |
Total from investment operations | 1.53 | 13.50 | (1.98) | (1.03) | 0.11 | 6.93 | 1.99 |
Less distributions | |||||||
From net investment income | — | (0.11) | (0.23) | (0.26) | — | (0.16) | (0.21) |
From net realized gain | — | — | — | (0.46) | — | — | — |
Total distributions | — | (0.11) | (0.23) | (0.72) | — | (0.16) | (0.21) |
Net asset value, end of period | $39.57 | $38.04 | $24.65 | $26.86 | $28.61 | $28.50 | $21.73 |
Total return (%)5 | 4.026 | 54.79 | (7.52) | (3.32) | 0.396 | 31.91 | 10.08 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $2,636 | $2,441 | $1,434 | $1,836 | $1,795 | $1,702 | $18 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.887 | 0.88 | 0.89 | 0.89 | 0.897 | 0.90 | 0.93 |
Expenses including reductions | 0.877 | 0.88 | 0.88 | 0.88 | 0.887 | 0.89 | 0.90 |
Net investment income | 0.984,7 | 0.25 | 0.85 | 1.01 | 1.097 | 0.16 | 0.95 |
Portfolio turnover (%) | 34 | 78 | 80 | 98 | 4 | 65 | 94 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Not annualized. |
7 | Annualized. |
20 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS 1 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $37.98 | $24.62 | $26.83 | $28.57 | $28.47 | $21.71 | $19.93 |
Net investment income3 | 0.194 | 0.08 | 0.23 | 0.28 | 0.03 | 0.21 | 0.23 |
Net realized and unrealized gain (loss) on investments | 1.34 | 13.38 | (2.22) | (1.30) | 0.07 | 6.70 | 1.76 |
Total from investment operations | 1.53 | 13.46 | (1.99) | (1.02) | 0.10 | 6.91 | 1.99 |
Less distributions | |||||||
From net investment income | — | (0.10) | (0.22) | (0.26) | — | (0.15) | (0.21) |
From net realized gain | — | — | — | (0.46) | — | — | — |
Total distributions | — | (0.10) | (0.22) | (0.72) | — | (0.15) | (0.21) |
Net asset value, end of period | $39.51 | $37.98 | $24.62 | $26.83 | $28.57 | $28.47 | $21.71 |
Total return (%)5 | 4.036 | 54.68 | (7.55) | (3.32) | 0.356 | 31.86 | 10.04 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $83 | $83 | $59 | $78 | $93 | $91 | $50 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.927 | 0.92 | 0.93 | 0.92 | 0.927 | 0.93 | 0.95 |
Expenses including reductions | 0.917 | 0.91 | 0.92 | 0.92 | 0.927 | 0.92 | 0.94 |
Net investment income | 0.964,7 | 0.23 | 0.82 | 1.05 | 1.067 | 0.79 | 1.09 |
Portfolio turnover (%) | 34 | 78 | 80 | 98 | 4 | 65 | 94 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Not annualized. |
7 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 21 |
CLASS NAV SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 | 2-28-17 |
Per share operating performance | |||||||
Net asset value, beginning of period | $37.99 | $24.62 | $26.82 | $28.57 | $28.47 | $21.71 | $19.93 |
Net investment income3 | 0.214 | 0.10 | 0.24 | 0.29 | 0.03 | 0.23 | 0.19 |
Net realized and unrealized gain (loss) on investments | 1.32 | 13.38 | (2.21) | (1.31) | 0.07 | 6.69 | 1.81 |
Total from investment operations | 1.53 | 13.48 | (1.97) | (1.02) | 0.10 | 6.92 | 2.00 |
Less distributions | |||||||
From net investment income | — | (0.11) | (0.23) | (0.27) | — | (0.16) | (0.22) |
From net realized gain | — | — | — | (0.46) | — | — | — |
Total distributions | — | (0.11) | (0.23) | (0.73) | — | (0.16) | (0.22) |
Net asset value, end of period | $39.52 | $37.99 | $24.62 | $26.82 | $28.57 | $28.47 | $21.71 |
Total return (%)5 | 4.036 | 54.78 | (7.51) | (3.27) | 0.356 | 31.91 | 10.10 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $970 | $1,057 | $854 | $1,028 | $1,136 | $1,151 | $864 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.877 | 0.87 | 0.88 | 0.87 | 0.877 | 0.88 | 0.91 |
Expenses including reductions | 0.867 | 0.86 | 0.87 | 0.87 | 0.877 | 0.87 | 0.90 |
Net investment income | 1.034,7 | 0.30 | 0.87 | 1.06 | 1.107 | 0.89 | 0.91 |
Portfolio turnover (%) | 34 | 78 | 80 | 98 | 4 | 65 | 94 |
1 | Six months ended 9-30-21. Unaudited. |
2 | For the one-month period ended 3-31-18. The fund changed its fiscal year end from February 28 to March 31. |
3 | Based on average daily shares outstanding. |
4 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
6 | Not annualized. |
7 | Annualized. |
22 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 23 |
Total value at 9-30-21 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Australia | $264,036,700 | — | $264,036,700 | — |
Austria | 189,381,747 | — | 189,381,747 | — |
Canada | 155,142,556 | $155,142,556 | — | — |
China | 1,588,625,580 | — | 1,588,625,580 | — |
Denmark | 704,500,442 | — | 704,500,442 | — |
France | 1,390,453,469 | — | 1,390,453,469 | — |
Germany | 357,257,104 | — | 357,257,104 | — |
Hong Kong | 283,870,638 | — | 283,870,638 | — |
India | 693,507,076 | — | 693,507,076 | — |
Ireland | 656,896,921 | 483,400,566 | 173,496,355 | — |
Italy | 307,791,851 | — | 307,791,851 | — |
Japan | 1,356,976,566 | — | 1,356,976,566 | — |
Netherlands | 848,890,046 | 207,754,608 | 641,135,438 | — |
Spain | 304,031,144 | — | 304,031,144 | — |
Sweden | 571,503,860 | — | 571,503,860 | — |
Switzerland | 1,172,395,182 | — | 1,172,395,182 | — |
Taiwan | 1,067,787,940 | — | 1,067,787,940 | — |
United Kingdom | 1,232,968,862 | 228,572,634 | 1,004,396,228 | — |
24 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
Total value at 9-30-21 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
United States | $207,341,852 | $207,341,852 | — | — |
Rights | 2,227,801 | — | $2,227,801 | — |
Short-term investments | 130,400,000 | — | 130,400,000 | — |
Total investments in securities | $13,485,987,337 | $1,282,212,216 | $12,203,775,121 | — |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 25 |
26 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 27 |
Class | Expense reduction |
Class A | $33,183 |
Class C | 10,463 |
Class I | 403,348 |
Class R2 | 2,331 |
Class R4 | 2,348 |
Class | Expense reduction |
Class R6 | $120,406 |
Class 1 | 3,945 |
Class NAV | 47,301 |
Total | $623,325 |
28 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.30% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
Class R4 | 0.25% | 0.10% |
Class 1 | 0.05% | — |
Class | Distribution and service fees | Transfer agent fees |
Class A | $1,095,471 | $419,656 |
Class C | 1,152,885 | 132,161 |
Class I | — | 5,098,278 |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 29 |
Class | Distribution and service fees | Transfer agent fees |
Class R2 | $128,138 | $2,487 |
Class R4 | 84,571 | 2,481 |
Class R6 | — | 127,535 |
Class 1 | 21,723 | — |
Total | $2,482,788 | $5,782,598 |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 2,376,157 | $95,546,643 | 4,314,116 | $148,515,449 |
Repurchased | (1,480,594) | (59,463,314) | (5,187,207) | (167,089,240) |
Net increase (decrease) | 895,563 | $36,083,329 | (873,091) | $(18,573,791) |
Class B shares | ||||
Repurchased | — | — | (15,305) | $(474,248) |
Net decrease | — | — | (15,305) | $(474,248) |
Class C shares | ||||
Sold | 164,397 | $6,398,234 | 286,774 | $9,643,678 |
Repurchased | (562,981) | (21,928,382) | (1,714,528) | (53,564,881) |
Net decrease | (398,584) | $(15,530,148) | (1,427,754) | $(43,921,203) |
Class I shares | ||||
Sold | 25,270,259 | $1,017,146,163 | 76,472,105 | $2,482,696,311 |
Distributions reinvested | — | — | 384,989 | 13,909,646 |
Repurchased | (18,218,618) | (733,951,418) | (51,587,007) | (1,660,981,670) |
Net increase | 7,051,641 | $283,194,745 | 25,270,087 | $835,624,287 |
Class R2 shares | ||||
Sold | 71,945 | $2,880,831 | 539,490 | $19,250,334 |
Repurchased | (186,810) | (7,539,694) | (425,995) | (13,201,543) |
Net increase (decrease) | (114,865) | $(4,658,863) | 113,495 | $6,048,791 |
30 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class R4 shares | ||||
Sold | 67,623 | $2,732,118 | 1,089,847 | $40,514,513 |
Distributions reinvested | — | — | 385 | 13,891 |
Repurchased | (69,834) | (2,828,719) | (104,147) | (3,567,009) |
Net increase (decrease) | (2,211) | $(96,601) | 986,085 | $36,961,395 |
Class R6 shares | ||||
Sold | 7,405,273 | $298,829,768 | 19,710,307 | $683,359,061 |
Distributions reinvested | — | — | 182,317 | 6,592,599 |
Repurchased | (4,979,294) | (201,051,384) | (13,883,531) | (463,039,348) |
Net increase | 2,425,979 | $97,778,384 | 6,009,093 | $226,912,312 |
Class 1 shares | ||||
Sold | 103,769 | $4,192,643 | 288,940 | $9,867,603 |
Distributions reinvested | — | — | 6,142 | 221,773 |
Repurchased | (165,352) | (6,617,035) | (514,071) | (17,179,225) |
Net decrease | (61,583) | $(2,424,392) | (218,989) | $(7,089,849) |
Class NAV shares | ||||
Sold | 369,840 | $14,876,769 | 4,051,520 | $120,286,768 |
Distributions reinvested | — | — | 95,704 | 3,455,885 |
Repurchased | (3,641,076) | (146,864,115) | (11,021,377) | (357,385,555) |
Net decrease | (3,271,236) | $(131,987,346) | (6,874,153) | $(233,642,902) |
Total net increase | 6,524,704 | $262,359,108 | 22,969,468 | $801,844,792 |
Redesignation | Effective date | Amount | |||||
Class B shares as Class A shares | October 14, 2020 | $195,520 |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 31 |
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* | — | $190,573,255 | $1,027,228,178 | $(1,217,797,549) | $(4,560) | $676 | $1,243,730 | — | — |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
32 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 33 |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
34 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 35 |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
36 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 37 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
38 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 39 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Alvaro Llavero
Zhaohuan (Terry) Tian, 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 |
40 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF1860924 | 87SA 9/21 |
President and CEO,
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
2 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2021 (% of net assets) | |
Microsoft Corp. | 11.8 |
Apple, Inc. | 8.5 |
Alphabet, Inc., Class A | 8.0 |
Amazon.com, Inc. | 7.9 |
Facebook, Inc., Class A | 5.3 |
Visa, Inc., Class A | 2.8 |
PayPal Holdings, Inc. | 2.7 |
Adobe, Inc. | 2.6 |
Mastercard, Inc., Class A | 2.5 |
Eli Lilly & Company | 2.2 |
TOTAL | 54.3 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 3 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||||
1-year | 5-year | Since inception (12-20-11) | 6-month | 5-year | Since inception (12-20-11) | ||
Class A | 15.74 | 18.85 | 16.67 | 4.76 | 137.12 | 351.63 | |
Class C1 | 19.97 | 19.17 | 16.65 | 8.84 | 140.33 | 351.07 | |
Class I2 | 22.10 | 20.36 | 17.63 | 10.36 | 152.55 | 389.36 | |
Class R21,2 | 21.65 | 19.91 | 17.19 | 10.14 | 147.91 | 371.73 | |
Class R41,2 | 22.10 | 20.23 | 17.39 | 10.39 | 151.21 | 379.74 | |
Class R61,2 | 22.27 | 20.51 | 17.58 | 10.45 | 154.13 | 387.46 | |
Class NAV2 | 22.29 | 20.51 | 17.80 | 10.46 | 154.18 | 396.35 | |
Index† | 27.32 | 22.84 | 19.37 | 13.23 | 179.66 | 465.10 |
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | Class NAV | |
Gross (%) | 1.01 | 1.76 | 0.76 | 1.15 | 1.00 | 0.65 | 0.64 |
Net (%) | 1.00 | 1.75 | 0.75 | 1.14 | 0.89 | 0.64 | 0.63 |
4 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class C1,3 | 12-20-11 | 45,107 | 45,107 | 56,510 |
Class I2 | 12-20-11 | 48,936 | 48,936 | 56,510 |
Class R21,2 | 12-20-11 | 47,173 | 47,173 | 56,510 |
Class R41,2 | 12-20-11 | 47,974 | 47,974 | 56,510 |
Class R61,2 | 12-20-11 | 48,746 | 48,746 | 56,510 |
Class NAV2 | 12-20-11 | 49,635 | 49,635 | 56,510 |
1 | Class C shares were first offered on 8-28-14; Class R2, Class R4, and Class R6 shares were first offered on 3-27-15. Returns prior to these dates are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
2 | For certain types of investors, as described in the fund’s prospectuses. |
3 | The contingent deferred sales charge is not applicable. |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 5 |
6 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
Account value on 4-1-2021 | Ending value on 9-30-2021 | Expenses paid during period ended 9-30-20211 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,102.70 | $5.06 | 0.96% |
Hypothetical example | 1,000.00 | 1,020.30 | 4.86 | 0.96% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,098.40 | 9.00 | 1.71% |
Hypothetical example | 1,000.00 | 1,016.50 | 8.64 | 1.71% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,103.60 | 3.74 | 0.71% |
Hypothetical example | 1,000.00 | 1,021.50 | 3.60 | 0.71% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,101.40 | 5.79 | 1.10% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.57 | 1.10% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,103.90 | 4.11 | 0.78% |
Hypothetical example | 1,000.00 | 1,021.20 | 3.95 | 0.78% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,104.50 | 3.22 | 0.61% |
Hypothetical example | 1,000.00 | 1,022.00 | 3.09 | 0.61% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,104.60 | 3.17 | 0.60% |
Hypothetical example | 1,000.00 | 1,022.10 | 3.04 | 0.60% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 7 |
Shares | Value | ||||
Common stocks 100.0% | $1,351,595,306 | ||||
(Cost $783,224,490) | |||||
Communication services 15.0% | 202,343,228 | ||||
Interactive media and services 13.3% | |||||
Alphabet, Inc., Class A (A) | 40,307 | 107,761,571 | |||
Facebook, Inc., Class A (A) | 213,199 | 72,357,609 | |||
Media 1.7% | |||||
Charter Communications, Inc., Class A (A) | 30,546 | 22,224,048 | |||
Consumer discretionary 10.0% | 135,871,366 | ||||
Household durables 1.0% | |||||
Lennar Corp., A Shares | 145,854 | 13,663,603 | |||
Internet and direct marketing retail 9.0% | |||||
Amazon.com, Inc. (A) | 32,470 | 106,665,249 | |||
Etsy, Inc. (A) | 74,738 | 15,542,514 | |||
Financials 8.7% | 117,187,629 | ||||
Capital markets 7.3% | |||||
Ares Management Corp., Class A | 291,726 | 21,538,131 | |||
Morgan Stanley | 138,839 | 13,510,423 | |||
MSCI, Inc. | 34,104 | 20,746,827 | |||
S&P Global, Inc. | 54,341 | 23,088,947 | |||
The Blackstone Group, Inc. | 165,915 | 19,302,551 | |||
Consumer finance 1.4% | |||||
American Express Company | 113,417 | 19,000,750 | |||
Health care 11.0% | 148,909,607 | ||||
Health care equipment and supplies 4.1% | |||||
Align Technology, Inc. (A) | 32,490 | 21,619,821 | |||
Boston Scientific Corp. (A) | 321,196 | 13,936,694 | |||
Danaher Corp. | 64,602 | 19,667,433 | |||
Health care providers and services 2.2% | |||||
Anthem, Inc. | 39,738 | 14,814,326 | |||
UnitedHealth Group, Inc. | 39,484 | 15,427,978 | |||
Life sciences tools and services 1.1% | |||||
Medpace Holdings, Inc. (A) | 76,463 | 14,472,917 | |||
Pharmaceuticals 3.6% | |||||
Eli Lilly & Company | 127,871 | 29,544,595 | |||
Zoetis, Inc. | 100,061 | 19,425,843 | |||
Industrials 3.8% | 51,617,083 | ||||
Building products 1.2% | |||||
Johnson Controls International PLC | 240,266 | 16,357,309 |
8 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Industrials (continued) | |||||
Professional services 2.6% | |||||
IHS Markit, Ltd. | 157,402 | $18,356,221 | |||
TransUnion | 150,508 | 16,903,553 | |||
Information technology 50.2% | 678,444,577 | ||||
Electronic equipment, instruments and components 1.3% | |||||
CDW Corp. | 95,083 | 17,307,008 | |||
IT services 12.7% | |||||
Accenture PLC, Class A | 87,557 | 28,011,235 | |||
Gartner, Inc. (A) | 73,545 | 22,348,855 | |||
Mastercard, Inc., Class A | 96,823 | 33,663,421 | |||
PayPal Holdings, Inc. (A) | 143,124 | 37,242,296 | |||
Shift4 Payments, Inc., Class A (A) | 173,309 | 13,434,914 | |||
Visa, Inc., Class A | 167,635 | 37,340,696 | |||
Semiconductors and semiconductor equipment 7.1% | |||||
Analog Devices, Inc. | 113,705 | 19,043,313 | |||
KLA Corp. | 64,503 | 21,576,899 | |||
Marvell Technology, Inc. | 298,451 | 17,999,580 | |||
Skyworks Solutions, Inc. | 100,870 | 16,621,359 | |||
Texas Instruments, Inc. | 110,819 | 21,300,520 | |||
Software 20.6% | |||||
Adobe, Inc. (A) | 61,509 | 35,411,961 | |||
Digital Turbine, Inc. (A) | 257,601 | 17,710,069 | |||
Intuit, Inc. | 49,739 | 26,834,688 | |||
Microsoft Corp. | 564,649 | 159,185,845 | |||
Palo Alto Networks, Inc. (A) | 37,141 | 17,790,539 | |||
salesforce.com, Inc. (A) | 77,489 | 21,016,567 | |||
Technology hardware, storage and peripherals 8.5% | |||||
Apple, Inc. | 809,928 | 114,604,812 | |||
Real estate 1.3% | 17,221,816 | ||||
Real estate management and development 1.3% | |||||
CBRE Group, Inc., Class A (A) | 176,888 | 17,221,816 | |||
Yield (%) | Shares | Value | |||
Short-term investments 0.0% | $82 | ||||
(Cost $82) | |||||
Short-term funds 0.0% | 82 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 0.0250(B) | 82 | 82 |
Total investments (Cost $783,224,572) 100.0% | $1,351,595,388 | ||||
Other assets and liabilities, net 0.0% | 547,218 | ||||
Total net assets 100.0% | $1,352,142,606 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 9 |
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) | The rate shown is the annualized seven-day yield as of 9-30-21. |
10 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $783,224,572) | $1,351,595,388 |
Dividends and interest receivable | 80,486 |
Receivable for fund shares sold | 461,668 |
Receivable for investments sold | 1,984,486 |
Other assets | 109,917 |
Total assets | 1,354,231,945 |
Liabilities | |
Due to custodian | 457,602 |
Payable for investments purchased | 82 |
Payable for fund shares repurchased | 1,183,338 |
Payable to affiliates | |
Accounting and legal services fees | 65,922 |
Transfer agent fees | 113,180 |
Distribution and service fees | 320 |
Trustees’ fees | 500 |
Other liabilities and accrued expenses | 268,395 |
Total liabilities | 2,089,339 |
Net assets | $1,352,142,606 |
Net assets consist of | |
Paid-in capital | $659,553,591 |
Total distributable earnings (loss) | 692,589,015 |
Net assets | $1,352,142,606 |
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 ($697,290,467 ÷ 26,394,380 shares)1 | $26.42 |
Class C ($34,779,185 ÷ 1,372,148 shares)1 | $25.35 |
Class I ($413,434,570 ÷ 15,458,471 shares) | $26.74 |
Class R2 ($1,552,005 ÷ 58,346 shares) | $26.60 |
Class R4 ($4,171 ÷ 156 shares) | $26.772 |
Class R6 ($148,866,467 ÷ 5,547,354 shares) | $26.84 |
Class NAV ($56,215,741 ÷ 2,095,530 shares) | $26.83 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)3 | $27.81 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | Net asset value, offering price and redemption price per share of $26.77 is calculated using Net assets of $4,171.38 and Shares outstanding of 155.85 |
3 | 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 U.S. Growth Fund | 11 |
Investment income | |
Dividends | $3,694,584 |
Interest | 542 |
Total investment income | 3,695,126 |
Expenses | |
Investment management fees | 3,825,700 |
Distribution and service fees | 1,067,313 |
Accounting and legal services fees | 100,078 |
Transfer agent fees | 679,122 |
Trustees’ fees | 11,090 |
Custodian fees | 82,636 |
State registration fees | 67,916 |
Printing and postage | 31,507 |
Professional fees | 52,472 |
Other | 32,626 |
Total expenses | 5,950,460 |
Less expense reductions | (62,965) |
Net expenses | 5,887,495 |
Net investment loss | (2,192,369) |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | 12,579,256 |
Affiliated investments | 3,301 |
12,582,557 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | 122,650,859 |
122,650,859 | |
Net realized and unrealized gain | 135,233,416 |
Increase in net assets from operations | $133,041,047 |
12 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Six months ended 9-30-21 (unaudited) | Year ended 3-31-21 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment loss | $(2,192,369) | $(2,422,096) |
Net realized gain | 12,582,557 | 167,447,798 |
Change in net unrealized appreciation (depreciation) | 122,650,859 | 325,304,779 |
Increase in net assets resulting from operations | 133,041,047 | 490,330,481 |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (16,665,951) |
Class C | — | (947,029) |
Class I | — | (11,856,315) |
Class R2 | — | (31,262) |
Class R4 | — | (94) |
Class R6 | — | (3,925,261) |
Class NAV | — | (1,492,547) |
Total distributions | — | (34,918,459) |
From fund share transactions | (78,800,463) | (100,337,593) |
Total increase | 54,240,584 | 355,074,429 |
Net assets | ||
Beginning of period | 1,297,902,022 | 942,827,593 |
End of period | $1,352,142,606 | $1,297,902,022 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 13 |
CLASS A SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.96 | $16.24 | $16.23 | $17.94 | $16.89 | $15.33 |
Net investment income (loss)2 | (0.06) | (0.07) | 0.01 | (0.01) | 0.01 | 0.04 |
Net realized and unrealized gain (loss) on investments | 2.52 | 8.40 | —3 | 2.22 | 3.62 | 2.12 |
Total from investment operations | 2.46 | 8.33 | 0.01 | 2.21 | 3.63 | 2.16 |
Less distributions | ||||||
From net investment income | — | — | — | (0.03) | (0.03) | (0.04) |
From net realized gain | — | (0.61) | — | (3.89) | (2.55) | (0.56) |
Total distributions | — | (0.61) | — | (3.92) | (2.58) | (0.60) |
Net asset value, end of period | $26.42 | $23.96 | $16.24 | $16.23 | $17.94 | $16.89 |
Total return (%)4,5 | 10.276 | 51.37 | 0.06 | 12.22 | 21.91 | 14.34 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $697 | $653 | $458 | $404 | $379 | $343 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.977 | 1.01 | 1.01 | 1.10 | 1.10 | 1.11 |
Expenses including reductions | 0.967 | 1.00 | 1.00 | 1.09 | 1.09 | 1.10 |
Net investment income (loss) | (0.43)7 | (0.31) | 0.03 | (0.07) | 0.03 | 0.27 |
Portfolio turnover (%) | 35 | 101 | 918 | 889 | 83 | 94 |
1 | Six months ended 9-30-21. 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. |
8 | Excludes in-kind transactions and merger activity. |
9 | Excludes in-kind transactions. |
14 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.08 | $15.77 | $15.88 | $17.71 | $16.80 | $15.32 |
Net investment loss2 | (0.15) | (0.23) | (0.12) | (0.14) | (0.13) | (0.08) |
Net realized and unrealized gain (loss) on investments | 2.42 | 8.15 | 0.01 | 2.20 | 3.59 | 2.12 |
Total from investment operations | 2.27 | 7.92 | (0.11) | 2.06 | 3.46 | 2.04 |
Less distributions | ||||||
From net realized gain | — | (0.61) | — | (3.89) | (2.55) | (0.56) |
Net asset value, end of period | $25.35 | $23.08 | $15.77 | $15.88 | $17.71 | $16.80 |
Total return (%)3,4 | 9.845 | 50.29 | (0.69) | 11.44 | 20.95 | 13.53 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $35 | $35 | $23 | $12 | $18 | $17 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.726 | 1.76 | 1.76 | 1.85 | 1.85 | 1.86 |
Expenses including reductions | 1.716 | 1.75 | 1.75 | 1.84 | 1.84 | 1.85 |
Net investment loss | (1.18)6 | (1.07) | (0.72) | (0.85) | (0.72) | (0.48) |
Portfolio turnover (%) | 35 | 101 | 917 | 888 | 83 | 94 |
1 | Six months ended 9-30-21. 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. |
7 | Excludes in-kind transactions and merger activity. |
8 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 15 |
CLASS I SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.23 | $16.38 | $16.36 | $18.05 | $16.98 | $15.41 |
Net investment income (loss)2 | (0.02) | (0.01) | 0.05 | 0.04 | 0.06 | 0.08 |
Net realized and unrealized gain (loss) on investments | 2.53 | 8.49 | (0.01) | 2.23 | 3.64 | 2.13 |
Total from investment operations | 2.51 | 8.48 | 0.04 | 2.27 | 3.70 | 2.21 |
Less distributions | ||||||
From net investment income | — | (0.02) | (0.02) | (0.07) | (0.08) | (0.08) |
From net realized gain | — | (0.61) | — | (3.89) | (2.55) | (0.56) |
Total distributions | — | (0.63) | (0.02) | (3.96) | (2.63) | (0.64) |
Net asset value, end of period | $26.74 | $24.23 | $16.38 | $16.36 | $18.05 | $16.98 |
Total return (%)3 | 10.364 | 51.84 | 0.26 | 12.55 | 22.12 | 14.70 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $413 | $408 | $321 | $115 | $20 | $17 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.725 | 0.76 | 0.76 | 0.87 | 0.84 | 0.85 |
Expenses including reductions | 0.715 | 0.75 | 0.75 | 0.86 | 0.83 | 0.84 |
Net investment income (loss) | (0.18)5 | (0.06) | 0.28 | 0.25 | 0.31 | 0.47 |
Portfolio turnover (%) | 35 | 101 | 916 | 887 | 83 | 94 |
1 | Six months ended 9-30-21. 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. |
6 | Excludes in-kind transactions and merger activity. |
7 | Excludes in-kind transactions. |
16 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R2 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.15 | $16.38 | $16.40 | $18.08 | $17.02 | $15.44 |
Net investment income (loss)2 | (0.07) | (0.10) | (0.02) | (0.04) | (0.02) | 0.03 |
Net realized and unrealized gain (loss) on investments | 2.52 | 8.48 | —3 | 2.25 | 3.64 | 2.14 |
Total from investment operations | 2.45 | 8.38 | (0.02) | 2.21 | 3.62 | 2.17 |
Less distributions | ||||||
From net investment income | — | — | — | —3 | (0.01) | (0.03) |
From net realized gain | — | (0.61) | — | (3.89) | (2.55) | (0.56) |
Total distributions | — | (0.61) | — | (3.89) | (2.56) | (0.59) |
Net asset value, end of period | $26.60 | $24.15 | $16.38 | $16.40 | $18.08 | $17.02 |
Total return (%)4 | 10.145 | 51.24 | (0.12) | 12.13 | 21.68 | 14.30 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $2 | $1 | $1 | $1 | $1 | $1 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.116 | 1.14 | 1.15 | 1.25 | 1.22 | 1.18 |
Expenses including reductions | 1.106 | 1.13 | 1.14 | 1.25 | 1.21 | 1.17 |
Net investment income (loss) | (0.56)6 | (0.45) | (0.11) | (0.22) | (0.11) | 0.19 |
Portfolio turnover (%) | 35 | 101 | 917 | 888 | 83 | 94 |
1 | Six months ended 9-30-21. 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 | Not annualized. |
6 | Annualized. |
7 | Excludes in-kind transactions and merger activity. |
8 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 17 |
CLASS R4 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.25 | $16.41 | $16.39 | $18.08 | $17.01 | $15.43 |
Net investment income (loss)2 | (0.03) | (0.03) | 0.03 | 0.01 | 0.03 | 0.07 |
Net realized and unrealized gain (loss) on investments | 2.55 | 8.48 | —3 | 2.24 | 3.65 | 2.14 |
Total from investment operations | 2.52 | 8.45 | 0.03 | 2.25 | 3.68 | 2.21 |
Less distributions | ||||||
From net investment income | — | —3 | (0.01) | (0.05) | (0.06) | (0.07) |
From net realized gain | — | (0.61) | — | (3.89) | (2.55) | (0.56) |
Total distributions | — | (0.61) | (0.01) | (3.94) | (2.61) | (0.63) |
Net asset value, end of period | $26.77 | $24.25 | $16.41 | $16.39 | $18.08 | $17.01 |
Total return (%)4 | 10.395 | 51.59 | 0.17 | 12.36 | 22.05 | 14.60 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $—6 | $—6 | $1 | $1 | $1 | $—6 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.877 | 1.00 | 1.00 | 1.10 | 1.06 | 1.02 |
Expenses including reductions | 0.787 | 0.89 | 0.89 | 1.00 | 0.95 | 0.91 |
Net investment income (loss) | (0.26)7 | (0.14) | 0.15 | 0.03 | 0.18 | 0.44 |
Portfolio turnover (%) | 35 | 101 | 918 | 889 | 83 | 94 |
1 | Six months ended 9-30-21. 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 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
8 | Excludes in-kind transactions and merger activity. |
9 | Excludes in-kind transactions. |
18 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.30 | $16.42 | $16.39 | $18.08 | $17.01 | $15.42 |
Net investment income (loss)2 | (0.01) | 0.01 | 0.07 | 0.05 | 0.05 | 0.09 |
Net realized and unrealized gain (loss) on investments | 2.55 | 8.51 | —3 | 2.24 | 3.67 | 2.16 |
Total from investment operations | 2.54 | 8.52 | 0.07 | 2.29 | 3.72 | 2.25 |
Less distributions | ||||||
From net investment income | — | (0.03) | (0.04) | (0.09) | (0.10) | (0.10) |
From net realized gain | — | (0.61) | — | (3.89) | (2.55) | (0.56) |
Total distributions | — | (0.64) | (0.04) | (3.98) | (2.65) | (0.66) |
Net asset value, end of period | $26.84 | $24.30 | $16.42 | $16.39 | $18.08 | $17.01 |
Total return (%)4 | 10.455 | 51.96 | 0.38 | 12.68 | 22.26 | 14.87 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $149 | $147 | $99 | $15 | $9 | $1 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.626 | 0.65 | 0.65 | 0.75 | 0.75 | 0.75 |
Expenses including reductions | 0.616 | 0.64 | 0.64 | 0.74 | 0.74 | 0.73 |
Net investment income (loss) | (0.08)6 | 0.04 | 0.37 | 0.29 | 0.25 | 0.50 |
Portfolio turnover (%) | 35 | 101 | 917 | 888 | 83 | 94 |
1 | Six months ended 9-30-21. 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 | Not annualized. |
6 | Annualized. |
7 | Excludes in-kind transactions and merger activity. |
8 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 19 |
CLASS NAV SHARES Period ended | 9-30-211 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 | 3-31-17 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.29 | $16.41 | $16.38 | $18.07 | $17.00 | $15.42 |
Net investment income (loss)2 | (0.01) | 0.01 | 0.07 | 0.03 | 0.07 | 0.10 |
Net realized and unrealized gain (loss) on investments | 2.55 | 8.51 | —3 | 2.26 | 3.65 | 2.14 |
Total from investment operations | 2.54 | 8.52 | 0.07 | 2.29 | 3.72 | 2.24 |
Less distributions | ||||||
From net investment income | — | (0.03) | (0.04) | (0.09) | (0.10) | (0.10) |
From net realized gain | — | (0.61) | — | (3.89) | (2.55) | (0.56) |
Total distributions | — | (0.64) | (0.04) | (3.98) | (2.65) | (0.66) |
Net asset value, end of period | $26.83 | $24.29 | $16.41 | $16.38 | $18.07 | $17.00 |
Total return (%)4 | 10.465 | 52.01 | 0.39 | 12.69 | 22.30 | 14.81 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $56 | $54 | $40 | $—6 | $1,410 | $1,592 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.617 | 0.64 | 0.64 | 0.74 | 0.73 | 0.73 |
Expenses including reductions | 0.607 | 0.63 | 0.63 | 0.73 | 0.73 | 0.73 |
Net investment income (loss) | (0.06)7 | 0.06 | 0.41 | 0.18 | 0.40 | 0.61 |
Portfolio turnover (%) | 35 | 101 | 918 | 889 | 83 | 94 |
1 | Six months ended 9-30-21. 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 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
8 | Excludes in-kind transactions and merger activity. |
9 | Excludes in-kind transactions. |
20 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 21 |
22 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 23 |
Class | Expense reduction |
Class A | $32,057 |
Class C | 1,649 |
Class I | 19,646 |
Class R2 | 69 |
Class | Expense reduction |
Class R6 | $6,920 |
Class NAV | 2,622 |
Total | $62,963 |
24 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.25% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
Class R4 | 0.25% | 0.10% |
Class | Distribution and service fees | Transfer agent fees |
Class A | $881,973 | $403,466 |
Class C | 181,593 | 20,777 |
Class I | — | 247,494 |
Class R2 | 3,741 | 73 |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 25 |
Class | Distribution and service fees | Transfer agent fees |
Class R4 | $6 | — |
Class R6 | — | $7,312 |
Total | $1,067,313 | $679,122 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $1,900,000 | 1 | 0.655% | $35 |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 502,279 | $13,171,430 | 2,212,511 | $47,574,705 |
Distributions reinvested | — | — | 692,595 | 16,324,223 |
Repurchased | (1,358,119) | (35,489,648) | (3,884,352) | (85,211,938) |
Net decrease | (855,840) | $(22,318,218) | (979,246) | $(21,313,010) |
Class C shares | ||||
Sold | 43,195 | $1,087,461 | 392,124 | $7,922,544 |
Distributions reinvested | — | — | 41,456 | 943,128 |
Repurchased | (175,266) | (4,401,908) | (362,390) | (7,878,623) |
Net increase (decrease) | (132,071) | $(3,314,447) | 71,190 | $987,049 |
Class I shares | ||||
Sold | 970,784 | $25,512,920 | 7,526,188 | $159,212,084 |
Distributions reinvested | — | — | 495,297 | 11,797,972 |
Repurchased | (2,362,378) | (62,901,086) | (10,754,373) | (243,094,825) |
Net decrease | (1,391,594) | $(37,388,166) | (2,732,888) | $(72,084,769) |
26 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-21 | Year Ended 3-31-21 | |||
Shares | Amount | Shares | Amount | |
Class R2 shares | ||||
Sold | 3,402 | $86,332 | 9,840 | $225,661 |
Distributions reinvested | — | — | 1,316 | 31,262 |
Repurchased | (681) | (17,219) | (5,147) | (111,672) |
Net increase | 2,721 | $69,113 | 6,009 | $145,251 |
Class R4 shares | ||||
Sold | 5 | $135 | 2,222 | $44,990 |
Distributions reinvested | — | — | 4 | 94 |
Repurchased | (12) | (317) | (55,073) | (1,313,665) |
Net decrease | (7) | $(182) | (52,847) | $(1,268,581) |
Class R6 shares | ||||
Sold | 336,864 | $9,031,709 | 1,438,705 | $30,977,228 |
Distributions reinvested | — | — | 164,374 | 3,925,261 |
Repurchased | (829,815) | (21,839,650) | (1,606,061) | (36,295,520) |
Net decrease | (492,951) | $(12,807,941) | (2,982) | $(1,393,031) |
Class NAV shares | ||||
Sold | 111,333 | $2,947,447 | 629,873 | $13,321,104 |
Distributions reinvested | — | — | 62,528 | 1,492,547 |
Repurchased | (227,535) | (5,988,069) | (926,057) | (20,224,153) |
Net decrease | (116,202) | $(3,040,622) | (233,656) | $(5,410,502) |
Total net decrease | (2,985,944) | $(78,800,463) | (3,924,420) | $(100,337,593) |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 27 |
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* | — | — | $16,660,457 | $(16,663,758) | $3,301 | — | — | — | — |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
28 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 29 |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
30 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 31 |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
32 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; and |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data. |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 33 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
34 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
(2) | the performance of the fund is being monitored and reasonably addressed, where appropriate; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 35 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
Charles L. Bardelis*
James R. Boyle
Peter S. Burgess*
William H. Cunningham
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
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 |
36 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF1860931 | 393SA 9/21 |
ITEM 2. CODE OF ETHICS.
(a)Not Applicable
(b)Not Applicable
(c)Not Applicable
(d)Not Applicable
(e)Not Applicable
(f)Not Applicable
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not Applicable
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a)Not Applicable
(b)Not Applicable
(c)Not Applicable
(d)Not Applicable
(e)Not Applicable
(f)Not Applicable
(g)Not Applicable
(h)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.
(a)The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N- CSR. See attached "John Hancock Funds – Nominating and Governance Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the registrant's disclosure controls and procedures as
conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive
officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
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 Funds III
By: | /s/ Andrew Arnott |
| ------------------------------ |
| Andrew Arnott |
| President |
Date: | November 4, 2021 |
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: | November 4, 2021 |
By: | /s/ Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | November 4, 2021 |