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, 2022 |
ITEM 1. REPORTS TO STOCKHOLDERS
The Registrant prepared the following semiannual reports to shareholders for the period ended September 30, 2022:
•Disciplined Value Fund
•Disciplined Value Mid Cap Fund
•Global Shareholder Yield Fund
•International Growth Fund
•U.S. Growth Fund
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Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 1 |
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2 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
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TOP 10 HOLDINGS AS OF 9/30/2022 (% of net assets) | |
Johnson & Johnson | 4.0 |
ConocoPhillips | 3.7 |
JPMorgan Chase & Co. | 3.3 |
Berkshire Hathaway, Inc., Class B | 3.1 |
AutoZone, Inc. | 2.6 |
Alphabet, Inc., Class A | 2.5 |
The Charles Schwab Corp. | 2.3 |
CVS Health Corp. | 2.3 |
Cigna Corp. | 2.3 |
Wells Fargo & Company | 2.1 |
TOTAL | 28.2 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 3 |
COUNTRY COMPOSITION AS OF 9/30/2022 (% of net assets) | |
United States | 89.5 |
Canada | 2.3 |
Ireland | 2.1 |
France | 2.1 |
Switzerland | 1.6 |
Bermuda | 0.8 |
United Kingdom | 0.8 |
Japan | 0.4 |
Netherlands | 0.4 |
TOTAL | 100.0 |
4 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
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SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 5 |
Account value on 4-1-2022 | Ending value on 9-30-2022 | Expenses paid during period ended 9-30-20221 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $842.40 | $4.66 | 1.01% |
Hypothetical example | 1,000.00 | 1,020.00 | 5.11 | 1.01% | |
Class C | Actual expenses/actual returns | 1,000.00 | 839.50 | 8.12 | 1.76% |
Hypothetical example | 1,000.00 | 1,016.20 | 8.90 | 1.76% | |
Class I | Actual expenses/actual returns | 1,000.00 | 843.40 | 3.51 | 0.76% |
Hypothetical example | 1,000.00 | 1,021.30 | 3.85 | 0.76% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 841.90 | 5.26 | 1.14% |
Hypothetical example | 1,000.00 | 1,019.40 | 5.77 | 1.14% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 842.70 | 4.16 | 0.90% |
Hypothetical example | 1,000.00 | 1,020.60 | 4.56 | 0.90% | |
Class R5 | Actual expenses/actual returns | 1,000.00 | 843.40 | 3.23 | 0.70% |
Hypothetical example | 1,000.00 | 1,021.60 | 3.55 | 0.70% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 844.20 | 3.01 | 0.65% |
Hypothetical example | 1,000.00 | 1,021.80 | 3.29 | 0.65% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 844.30 | 2.96 | 0.64% |
Hypothetical example | 1,000.00 | 1,021.90 | 3.24 | 0.64% |
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). |
6 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 97.0% | $10,927,467,443 | ||||
(Cost $9,577,900,107) | |||||
Communication services 5.9% | 663,371,298 | ||||
Entertainment 0.3% | |||||
Activision Blizzard, Inc. | 533,054 | 39,627,234 | |||
Interactive media and services 4.1% | |||||
Alphabet, Inc., Class A (A) | 2,928,895 | 280,148,807 | |||
Meta Platforms, Inc., Class A (A) | 1,300,366 | 176,433,659 | |||
Wireless telecommunication services 1.5% | |||||
T-Mobile US, Inc. (A) | 1,245,894 | 167,161,598 | |||
Consumer discretionary 4.4% | 494,006,323 | ||||
Distributors 0.7% | |||||
LKQ Corp. | 1,753,126 | 82,659,891 | |||
Household durables 1.1% | |||||
Mohawk Industries, Inc. (A) | 767,570 | 69,994,708 | |||
Sony Group Corp., ADR | 793,682 | 50,835,332 | |||
Specialty retail 2.6% | |||||
AutoZone, Inc. (A) | 135,633 | 290,516,392 | |||
Consumer staples 3.3% | 371,699,586 | ||||
Beverages 2.7% | |||||
Coca-Cola Europacific Partners PLC | 2,007,460 | 85,557,945 | |||
Keurig Dr. Pepper, Inc. | 6,177,509 | 221,278,372 | |||
Food and staples retailing 0.6% | |||||
U.S. Foods Holding Corp. (A) | 2,453,225 | 64,863,269 | |||
Energy 12.7% | 1,432,827,726 | ||||
Energy equipment and services 1.2% | |||||
Schlumberger NV | 3,910,504 | 140,387,094 | |||
Oil, gas and consumable fuels 11.5% | |||||
Canadian Natural Resources, Ltd. | 3,050,262 | 142,050,701 | |||
Cenovus Energy, Inc. | 7,443,648 | 114,408,870 | |||
ConocoPhillips | 4,088,143 | 418,380,555 | |||
Devon Energy Corp. | 2,232,380 | 134,233,009 | |||
EOG Resources, Inc. | 871,095 | 97,327,444 | |||
Marathon Petroleum Corp. | 2,032,622 | 201,900,343 | |||
Pioneer Natural Resources Company | 850,412 | 184,139,710 | |||
Financials 18.1% | 2,036,172,404 | ||||
Banks 7.9% | |||||
Bank of America Corp. | 5,543,723 | 167,420,435 | |||
JPMorgan Chase & Co. | 3,578,258 | 373,927,961 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 7 |
Shares | Value | ||||
Financials (continued) | |||||
Banks (continued) | |||||
Truist Financial Corp. | 2,403,816 | $104,662,149 | |||
Wells Fargo & Company | 5,942,217 | 238,995,968 | |||
Capital markets 4.3% | |||||
Intercontinental Exchange, Inc. | 750,860 | 67,840,201 | |||
The Charles Schwab Corp. | 3,705,176 | 266,290,999 | |||
The Goldman Sachs Group, Inc. | 525,085 | 153,876,159 | |||
Consumer finance 0.4% | |||||
Capital One Financial Corp. | 518,400 | 47,780,928 | |||
Diversified financial services 3.1% | |||||
Berkshire Hathaway, Inc., Class B (A) | 1,319,419 | 352,311,261 | |||
Insurance 2.4% | |||||
Chubb, Ltd. | 678,798 | 123,459,780 | |||
Everest Re Group, Ltd. | 336,489 | 88,308,173 | |||
The Allstate Corp. | 411,936 | 51,298,390 | |||
Health care 22.4% | 2,525,283,666 | ||||
Biotechnology 1.8% | |||||
AbbVie, Inc. | 1,508,681 | 202,480,077 | |||
Health care providers and services 10.2% | |||||
AmerisourceBergen Corp. | 924,144 | 125,064,408 | |||
Centene Corp. (A) | 2,864,881 | 222,916,391 | |||
Cigna Corp. | 918,517 | 254,860,912 | |||
CVS Health Corp. | 2,752,439 | 262,500,107 | |||
McKesson Corp. | 178,771 | 60,758,900 | |||
UnitedHealth Group, Inc. | 444,068 | 224,272,103 | |||
Life sciences tools and services 1.7% | |||||
Avantor, Inc. (A) | 5,044,171 | 98,865,752 | |||
ICON PLC (A) | 486,727 | 89,450,688 | |||
Pharmaceuticals 8.7% | |||||
Bristol-Myers Squibb Company | 3,288,764 | 233,798,233 | |||
Johnson & Johnson | 2,774,015 | 453,163,089 | |||
Novartis AG, ADR | 815,628 | 61,995,884 | |||
Sanofi, ADR | 6,185,090 | 235,157,122 | |||
Industrials 12.1% | 1,359,211,766 | ||||
Aerospace and defense 2.1% | |||||
General Dynamics Corp. | 529,442 | 112,331,709 | |||
Howmet Aerospace, Inc. | 4,080,676 | 126,215,309 | |||
Building products 1.2% | |||||
Allegion PLC | 658,686 | 59,070,960 | |||
Masco Corp. | 1,696,038 | 79,188,014 |
8 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Industrials (continued) | |||||
Electrical equipment 1.2% | |||||
Eaton Corp. PLC | 1,023,923 | $136,550,371 | |||
Machinery 4.5% | |||||
Caterpillar, Inc. | 487,587 | 80,003,275 | |||
Deere & Company | 412,828 | 137,839,141 | |||
Dover Corp. | 457,639 | 53,351,555 | |||
Fortive Corp. | 1,176,537 | 68,592,107 | |||
Otis Worldwide Corp. | 1,604,500 | 102,367,100 | |||
Wabtec Corp. | 814,475 | 66,257,541 | |||
Professional services 0.8% | |||||
Leidos Holdings, Inc. | 1,043,308 | 91,258,151 | |||
Road and rail 1.1% | |||||
Union Pacific Corp. | 601,672 | 117,217,739 | |||
Trading companies and distributors 1.2% | |||||
United Rentals, Inc. (A) | 477,450 | 128,968,794 | |||
Information technology 11.8% | 1,330,207,474 | ||||
Communications equipment 1.8% | |||||
Cisco Systems, Inc. | 5,156,326 | 206,253,040 | |||
IT services 4.7% | |||||
Cognizant Technology Solutions Corp., Class A | 1,816,653 | 104,348,548 | |||
Fidelity National Information Services, Inc. | 1,851,459 | 139,914,757 | |||
FleetCor Technologies, Inc. (A) | 536,470 | 94,509,920 | |||
Global Payments, Inc. | 957,769 | 103,486,940 | |||
SS&C Technologies Holdings, Inc. | 1,766,656 | 84,357,824 | |||
Semiconductors and semiconductor equipment 5.3% | |||||
Applied Materials, Inc. | 1,078,049 | 88,324,555 | |||
Lam Research Corp. | 95,458 | 34,937,628 | |||
Microchip Technology, Inc. | 1,625,737 | 99,218,729 | |||
Micron Technology, Inc. | 1,669,558 | 83,644,856 | |||
NXP Semiconductors NV | 279,811 | 41,274,921 | |||
Qorvo, Inc. (A) | 832,002 | 66,069,279 | |||
Qualcomm, Inc. | 1,627,425 | 183,866,477 | |||
Materials 3.7% | 416,636,960 | ||||
Chemicals 2.9% | |||||
Axalta Coating Systems, Ltd. (A) | 4,474,848 | 94,240,299 | |||
DuPont de Nemours, Inc. | 3,318,212 | 167,237,885 | |||
Olin Corp. | 1,484,191 | 63,642,110 | |||
Construction materials 0.8% | |||||
CRH PLC, ADR (B) | 2,839,487 | 91,516,666 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 9 |
Shares | Value | ||||
Utilities 2.6% | $298,050,240 | ||||
Electric utilities 0.6% | |||||
FirstEnergy Corp. | 2,000,353 | 74,013,061 | |||
Multi-utilities 2.0% | |||||
CenterPoint Energy, Inc. | 4,191,474 | 118,115,737 | |||
Dominion Energy, Inc. | 1,532,650 | 105,921,442 | |||
Yield (%) | Shares | Value | |||
Short-term investments 2.9% | $333,438,115 | ||||
(Cost $333,438,175) | |||||
Short-term funds 2.9% | 333,438,115 | ||||
John Hancock Collateral Trust (C) | 3.0556(D) | 559,048 | 5,586,006 | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2.9329(D) | 327,852,109 | 327,852,109 |
Total investments (Cost $9,911,338,282) 99.9% | $11,260,905,558 | ||||
Other assets and liabilities, net 0.1% | 7,839,189 | ||||
Total net assets 100.0% | $11,268,744,747 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
(A) | Non-income producing security. |
(B) | All or a portion of this security is on loan as of 9-30-22. |
(C) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(D) | The rate shown is the annualized seven-day yield as of 9-30-22. |
10 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $9,905,752,216) including $5,451,120 of securities loaned | $11,255,319,552 |
Affiliated investments, at value (Cost $5,586,066) | 5,586,006 |
Total investments, at value (Cost $9,911,338,282) | 11,260,905,558 |
Dividends and interest receivable | 15,835,087 |
Receivable for fund shares sold | 12,413,926 |
Receivable for investments sold | 22,837,214 |
Receivable for securities lending income | 8,756 |
Other assets | 406,498 |
Total assets | 11,312,407,039 |
Liabilities | |
Payable for investments purchased | 23,767,957 |
Payable for fund shares repurchased | 11,400,122 |
Payable upon return of securities loaned | 5,590,403 |
Payable to affiliates | |
Accounting and legal services fees | 429,012 |
Transfer agent fees | 671,443 |
Distribution and service fees | 13,006 |
Trustees’ fees | 3,389 |
Other liabilities and accrued expenses | 1,786,960 |
Total liabilities | 43,662,292 |
Net assets | $11,268,744,747 |
Net assets consist of | |
Paid-in capital | $9,044,734,659 |
Total distributable earnings (loss) | 2,224,010,088 |
Net assets | $11,268,744,747 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 11 |
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 ($1,047,853,067 ÷ 50,660,777 shares)1 | $20.68 |
Class C ($84,401,428 ÷ 4,445,390 shares)1 | $18.99 |
Class I ($5,317,733,003 ÷ 267,476,938 shares) | $19.88 |
Class R2 ($45,051,980 ÷ 2,274,435 shares) | $19.81 |
Class R4 ($45,263,968 ÷ 2,277,747 shares) | $19.87 |
Class R5 ($51,453,863 ÷ 2,581,189 shares) | $19.93 |
Class R6 ($3,581,081,154 ÷ 179,622,111 shares) | $19.94 |
Class NAV ($1,095,906,284 ÷ 54,941,289 shares) | $19.95 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $21.77 |
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 Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $134,399,726 |
Interest | 3,277,083 |
Securities lending | 20,469 |
Less foreign taxes withheld | (2,721,556) |
Total investment income | 134,975,722 |
Expenses | |
Investment management fees | 37,544,848 |
Distribution and service fees | 2,178,275 |
Accounting and legal services fees | 820,775 |
Transfer agent fees | 4,235,378 |
Trustees’ fees | 114,626 |
Custodian fees | 675,948 |
State registration fees | 165,090 |
Printing and postage | 333,493 |
Professional fees | 183,361 |
Other | 200,051 |
Total expenses | 46,451,845 |
Less expense reductions | (496,852) |
Net expenses | 45,954,993 |
Net investment income | 89,020,729 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 210,159,959 |
Affiliated investments | (5,110) |
210,154,849 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (2,355,822,185) |
Affiliated investments | (60) |
(2,355,822,245) | |
Net realized and unrealized loss | (2,145,667,396) |
Decrease in net assets from operations | $(2,056,646,667) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 13 |
Six months ended 9-30-22 (unaudited) | Year ended 3-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $89,020,729 | $109,334,518 |
Net realized gain | 210,154,849 | 1,709,466,375 |
Change in net unrealized appreciation (depreciation) | (2,355,822,245) | (172,873,157) |
Increase (decrease) in net assets resulting from operations | (2,056,646,667) | 1,645,927,736 |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (142,634,076) |
Class C | — | (15,439,022) |
Class I | — | (794,647,089) |
Class R2 | — | (5,966,347) |
Class R4 | — | (7,303,391) |
Class R5 | — | (7,360,008) |
Class R6 | — | (547,655,424) |
Class NAV | — | (188,506,983) |
Total distributions | — | (1,709,512,340) |
From fund share transactions | 408,078,726 | 703,591,853 |
Total increase (decrease) | (1,648,567,941) | 640,007,249 |
Net assets | ||
Beginning of period | 12,917,312,688 | 12,277,305,439 |
End of period | $11,268,744,747 | $12,917,312,688 |
14 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.55 | $24.73 | $15.18 | $20.25 | $22.11 | $20.71 |
Net investment income2 | 0.14 | 0.15 | 0.18 | 0.30 | 0.26 | 0.20 |
Net realized and unrealized gain (loss) on investments | (4.01) | 3.04 | 9.65 | (4.20) | (0.28) | 2.39 |
Total from investment operations | (3.87) | 3.19 | 9.83 | (3.90) | (0.02) | 2.59 |
Less distributions | ||||||
From net investment income | — | (0.16) | (0.28) | (0.25) | (0.23) | (0.18) |
From net realized gain | — | (3.21) | — | (0.92) | (1.61) | (1.01) |
Total distributions | — | (3.37) | (0.28) | (1.17) | (1.84) | (1.19) |
Net asset value, end of period | $20.68 | $24.55 | $24.73 | $15.18 | $20.25 | $22.11 |
Total return (%)3,4 | (15.76)5 | 13.42 | 65.19 | (20.99) | 0.45 | 12.42 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,048 | $1,204 | $1,037 | $731 | $1,092 | $1,289 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.026 | 1.04 | 1.07 | 1.07 | 1.06 | 1.06 |
Expenses including reductions | 1.016 | 1.03 | 1.07 | 1.06 | 1.05 | 1.05 |
Net investment income | 1.196 | 0.60 | 0.94 | 1.44 | 1.18 | 0.92 |
Portfolio turnover (%) | 17 | 38 | 55 | 88 | 69 | 45 |
1 | Six months ended 9-30-22. 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 | 15 |
CLASS C SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $22.62 | $23.05 | $14.17 | $18.98 | $20.82 | $19.57 |
Net investment income (loss)2 | 0.04 | (0.04) | 0.03 | 0.13 | 0.09 | 0.03 |
Net realized and unrealized gain (loss) on investments | (3.67) | 2.82 | 9.00 | (3.92) | (0.26) | 2.25 |
Total from investment operations | (3.63) | 2.78 | 9.03 | (3.79) | (0.17) | 2.28 |
Less distributions | ||||||
From net investment income | — | — | (0.15) | (0.10) | (0.06) | (0.02) |
From net realized gain | — | (3.21) | — | (0.92) | (1.61) | (1.01) |
Total distributions | — | (3.21) | (0.15) | (1.02) | (1.67) | (1.03) |
Net asset value, end of period | $18.99 | $22.62 | $23.05 | $14.17 | $18.98 | $20.82 |
Total return (%)3,4 | (16.05)5 | 12.56 | 63.90 | (21.51) | (0.35) | 11.58 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $84 | $116 | $135 | $140 | $235 | $275 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.776 | 1.79 | 1.82 | 1.82 | 1.81 | 1.81 |
Expenses including reductions | 1.766 | 1.78 | 1.82 | 1.81 | 1.80 | 1.80 |
Net investment income (loss) | 0.426 | (0.17) | 0.19 | 0.67 | 0.43 | 0.16 |
Portfolio turnover (%) | 17 | 38 | 55 | 88 | 69 | 45 |
1 | Six months ended 9-30-22. 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 I SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.57 | $23.86 | $14.65 | $19.58 | $21.45 | $20.12 |
Net investment income2 | 0.16 | 0.21 | 0.22 | 0.34 | 0.30 | 0.25 |
Net realized and unrealized gain (loss) on investments | (3.85) | 2.93 | 9.32 | (4.05) | (0.27) | 2.32 |
Total from investment operations | (3.69) | 3.14 | 9.54 | (3.71) | 0.03 | 2.57 |
Less distributions | ||||||
From net investment income | — | (0.22) | (0.33) | (0.30) | (0.29) | (0.23) |
From net realized gain | — | (3.21) | — | (0.92) | (1.61) | (1.01) |
Total distributions | — | (3.43) | (0.33) | (1.22) | (1.90) | (1.24) |
Net asset value, end of period | $19.88 | $23.57 | $23.86 | $14.65 | $19.58 | $21.45 |
Total return (%)3 | (15.66)4 | 13.73 | 65.58 | (20.77) | 0.64 | 12.71 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $5,318 | $6,039 | $5,618 | $5,250 | $7,399 | $6,988 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.775 | 0.79 | 0.82 | 0.82 | 0.82 | 0.81 |
Expenses including reductions | 0.765 | 0.78 | 0.82 | 0.81 | 0.81 | 0.80 |
Net investment income | 1.445 | 0.84 | 1.18 | 1.69 | 1.43 | 1.17 |
Portfolio turnover (%) | 17 | 38 | 55 | 88 | 69 | 45 |
1 | Six months ended 9-30-22. 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 | 17 |
CLASS R2 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.53 | $23.83 | $14.63 | $19.57 | $21.43 | $20.10 |
Net investment income2 | 0.12 | 0.11 | 0.15 | 0.23 | 0.22 | 0.16 |
Net realized and unrealized gain (loss) on investments | (3.84) | 2.93 | 9.31 | (4.03) | (0.27) | 2.33 |
Total from investment operations | (3.72) | 3.04 | 9.46 | (3.80) | (0.05) | 2.49 |
Less distributions | ||||||
From net investment income | — | (0.13) | (0.26) | (0.22) | (0.20) | (0.15) |
From net realized gain | — | (3.21) | — | (0.92) | (1.61) | (1.01) |
Total distributions | — | (3.34) | (0.26) | (1.14) | (1.81) | (1.16) |
Net asset value, end of period | $19.81 | $23.53 | $23.83 | $14.63 | $19.57 | $21.43 |
Total return (%)3 | (15.81)4 | 13.28 | 64.94 | (21.08) | 0.24 | 12.30 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $45 | $55 | $55 | $42 | $102 | $135 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.145 | 1.18 | 1.21 | 1.21 | 1.21 | 1.21 |
Expenses including reductions | 1.145 | 1.17 | 1.20 | 1.20 | 1.20 | 1.20 |
Net investment income | 1.055 | 0.43 | 0.80 | 1.17 | 1.02 | 0.76 |
Portfolio turnover (%) | 17 | 38 | 55 | 88 | 69 | 45 |
1 | Six months ended 9-30-22. 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 R4 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.58 | $23.87 | $14.65 | $19.59 | $21.45 | $20.12 |
Net investment income2 | 0.14 | 0.17 | 0.20 | 0.30 | 0.27 | 0.22 |
Net realized and unrealized gain (loss) on investments | (3.85) | 2.94 | 9.32 | (4.05) | (0.27) | 2.32 |
Total from investment operations | (3.71) | 3.11 | 9.52 | (3.75) | — | 2.54 |
Less distributions | ||||||
From net investment income | — | (0.19) | (0.30) | (0.27) | (0.25) | (0.20) |
From net realized gain | — | (3.21) | — | (0.92) | (1.61) | (1.01) |
Total distributions | — | (3.40) | (0.30) | (1.19) | (1.86) | (1.21) |
Net asset value, end of period | $19.87 | $23.58 | $23.87 | $14.65 | $19.59 | $21.45 |
Total return (%)3 | (15.73)4 | 13.58 | 65.34 | (20.87) | 0.52 | 12.54 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $45 | $62 | $62 | $74 | $143 | $231 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.015 | 1.03 | 1.06 | 1.06 | 1.06 | 1.06 |
Expenses including reductions | 0.905 | 0.92 | 0.95 | 0.95 | 0.95 | 0.95 |
Net investment income | 1.285 | 0.70 | 1.06 | 1.50 | 1.26 | 1.02 |
Portfolio turnover (%) | 17 | 38 | 55 | 88 | 69 | 45 |
1 | Six months ended 9-30-22. 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 R5 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.63 | $23.91 | $14.67 | $19.62 | $21.48 | $20.15 |
Net investment income2 | 0.16 | 0.23 | 0.23 | 0.34 | 0.31 | 0.26 |
Net realized and unrealized gain (loss) on investments | (3.86) | 2.94 | 9.35 | (4.06) | (0.26) | 2.32 |
Total from investment operations | (3.70) | 3.17 | 9.58 | (3.72) | 0.05 | 2.58 |
Less distributions | ||||||
From net investment income | — | (0.24) | (0.34) | (0.31) | (0.30) | (0.24) |
From net realized gain | — | (3.21) | — | (0.92) | (1.61) | (1.01) |
Total distributions | — | (3.45) | (0.34) | (1.23) | (1.91) | (1.25) |
Net asset value, end of period | $19.93 | $23.63 | $23.91 | $14.67 | $19.62 | $21.48 |
Total return (%)3 | (15.66)4 | 13.82 | 65.67 | (20.74) | 0.75 | 12.73 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $51 | $60 | $40 | $61 | $166 | $198 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.715 | 0.73 | 0.76 | 0.76 | 0.76 | 0.76 |
Expenses including reductions | 0.705 | 0.72 | 0.75 | 0.75 | 0.75 | 0.75 |
Net investment income | 1.495 | 0.93 | 1.24 | 1.70 | 1.48 | 1.22 |
Portfolio turnover (%) | 17 | 38 | 55 | 88 | 69 | 45 |
1 | Six months ended 9-30-22. 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 R6 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.62 | $23.91 | $14.67 | $19.61 | $21.48 | $20.14 |
Net investment income2 | 0.17 | 0.24 | 0.24 | 0.36 | 0.32 | 0.27 |
Net realized and unrealized gain (loss) on investments | (3.85) | 2.93 | 9.35 | (4.06) | (0.27) | 2.33 |
Total from investment operations | (3.68) | 3.17 | 9.59 | (3.70) | 0.05 | 2.60 |
Less distributions | ||||||
From net investment income | — | (0.25) | (0.35) | (0.32) | (0.31) | (0.25) |
From net realized gain | — | (3.21) | — | (0.92) | (1.61) | (1.01) |
Total distributions | — | (3.46) | (0.35) | (1.24) | (1.92) | (1.26) |
Net asset value, end of period | $19.94 | $23.62 | $23.91 | $14.67 | $19.61 | $21.48 |
Total return (%)3 | (15.58)4 | 13.82 | 65.74 | (20.66) | 0.76 | 12.84 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $3,581 | $4,009 | $3,844 | $3,369 | $4,584 | $4,564 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.665 | 0.68 | 0.71 | 0.71 | 0.71 | 0.71 |
Expenses including reductions | 0.655 | 0.68 | 0.71 | 0.70 | 0.70 | 0.70 |
Net investment income | 1.555 | 0.95 | 1.30 | 1.81 | 1.54 | 1.25 |
Portfolio turnover (%) | 17 | 38 | 55 | 88 | 69 | 45 |
1 | Six months ended 9-30-22. 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 NAV SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.63 | $23.92 | $14.68 | $19.62 | $21.49 | $20.15 |
Net investment income2 | 0.17 | 0.24 | 0.25 | 0.36 | 0.33 | 0.27 |
Net realized and unrealized gain (loss) on investments | (3.85) | 2.93 | 9.34 | (4.06) | (0.28) | 2.34 |
Total from investment operations | (3.68) | 3.17 | 9.59 | (3.70) | 0.05 | 2.61 |
Less distributions | ||||||
From net investment income | — | (0.25) | (0.35) | (0.32) | (0.31) | (0.26) |
From net realized gain | — | (3.21) | — | (0.92) | (1.61) | (1.01) |
Total distributions | — | (3.46) | (0.35) | (1.24) | (1.92) | (1.27) |
Net asset value, end of period | $19.95 | $23.63 | $23.92 | $14.68 | $19.62 | $21.49 |
Total return (%)3 | (15.57)4 | 13.83 | 65.71 | (20.64) | 0.77 | 12.85 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,096 | $1,372 | $1,486 | $887 | $1,105 | $1,219 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.655 | 0.68 | 0.70 | 0.70 | 0.70 | 0.70 |
Expenses including reductions | 0.645 | 0.67 | 0.70 | 0.69 | 0.69 | 0.69 |
Net investment income | 1.545 | 0.95 | 1.31 | 1.83 | 1.54 | 1.28 |
Portfolio turnover (%) | 17 | 38 | 55 | 88 | 69 | 45 |
1 | Six months ended 9-30-22. 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 |
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 | $43,937 |
Class C | 3,897 |
Class I | 220,449 |
Class R2 | 1,946 |
Class R4 | 2,086 |
Class | Expense reduction |
Class R5 | $2,183 |
Class R6 | 147,898 |
Class NAV | 47,168 |
Total | $469,564 |
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% |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 27 |
Class | Distribution and service fees | Transfer agent fees |
Class A | $1,437,520 | $662,880 |
Class C | 509,608 | 58,809 |
Class I | — | 3,322,687 |
Class R2 | 122,784 | 2,407 |
Class R4 | 94,368 | 2,587 |
Class R5 | 13,995 | 2,702 |
Class R6 | — | 183,306 |
Total | $2,178,275 | $4,235,378 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $7,025,000 | 4 | 2.027% | $1,582 |
28 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 5,743,574 | $131,830,837 | 9,714,749 | $247,593,735 |
Distributions reinvested | — | — | 5,703,557 | 134,832,091 |
Repurchased | (4,118,644) | (94,117,795) | (8,331,972) | (213,497,612) |
Net increase | 1,624,930 | $37,713,042 | 7,086,334 | $168,928,214 |
Class C shares | ||||
Sold | 251,819 | $5,323,095 | 582,924 | $13,606,830 |
Distributions reinvested | — | — | 677,543 | 14,790,755 |
Repurchased | (939,958) | (19,707,242) | (1,972,814) | (46,783,606) |
Net decrease | (688,139) | $(14,384,147) | (712,347) | $(18,386,021) |
Class I shares | ||||
Sold | 47,070,061 | $1,023,757,962 | 65,886,934 | $1,617,962,179 |
Distributions reinvested | — | — | 27,751,495 | 629,403,911 |
Repurchased | (35,836,773) | (776,567,748) | (72,828,360) | (1,783,032,506) |
Net increase | 11,233,288 | $247,190,214 | 20,810,069 | $464,333,584 |
Class R2 shares | ||||
Sold | 172,526 | $3,744,754 | 712,517 | $17,103,250 |
Distributions reinvested | — | — | 213,199 | 4,831,085 |
Repurchased | (223,224) | (4,876,226) | (914,343) | (22,767,623) |
Net increase (decrease) | (50,698) | $(1,131,472) | 11,373 | $(833,288) |
Class R4 shares | ||||
Sold | 157,500 | $3,456,159 | 1,047,552 | $25,667,362 |
Distributions reinvested | — | — | 321,877 | 7,303,391 |
Repurchased | (491,409) | (10,903,589) | (1,343,465) | (32,808,860) |
Net increase (decrease) | (333,909) | $(7,447,430) | 25,964 | $161,893 |
Class R5 shares | ||||
Sold | 256,162 | $5,712,914 | 1,123,572 | $28,566,813 |
Distributions reinvested | — | — | 323,802 | 7,360,008 |
Repurchased | (221,911) | (4,882,460) | (577,470) | (14,368,896) |
Net increase | 34,251 | $830,454 | 869,904 | $21,557,925 |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 29 |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class R6 shares | ||||
Sold | 23,569,604 | $521,746,716 | 40,338,709 | $1,001,352,142 |
Distributions reinvested | — | — | 22,054,696 | 501,082,696 |
Repurchased | (13,659,577) | (301,927,858) | (53,460,780) | (1,316,599,662) |
Net increase | 9,910,027 | $219,818,858 | 8,932,625 | $185,835,176 |
Class NAV shares | ||||
Sold | 2,231,764 | $47,350,251 | 2,095,577 | $52,158,633 |
Distributions reinvested | — | — | 8,293,312 | 188,506,983 |
Repurchased | (5,362,414) | (121,861,044) | (14,445,593) | (358,671,246) |
Net decrease | (3,130,650) | $(74,510,793) | (4,056,704) | $(118,005,630) |
Total net increase | 18,599,100 | $408,078,726 | 32,967,218 | $703,591,853 |
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* | 559,048 | — | $159,017,549 | $(153,426,373) | $(5,110) | $(60) | $20,469 | — | $5,586,006 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
30 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT |
Total votes for the nominee | Total votes withheld from the nominee | |
Independent Trustees | ||
James R. Boyle | 1,409,775,493.514 | 15,295,731.365 |
Frances G. Rathke | 1,409,882,732.809 | 15,188,492.070 |
Noni L. Ellison | 1,411,065,236.157 | 14,005,988.722 |
Dean Garfield | 1,409,601,084.314 | 15,470,140.565 |
Patricia Lizarraga | 1,410,809,328.457 | 14,261,896.422 |
Non-Independent Trustees | ||
Andrew G. Arnott | 1,410,004,927.170 | 15,066,297.709 |
Marianne Harrison | 1,410,636,974.305 | 14,434,250.574 |
Paul Lorentz | 1,409,775,645.079 | 15,295,579.800 |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 31 |
32 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
(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; |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 33 |
(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. |
34 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
(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 |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 35 |
(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. |
36 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 37 |
(2) | the performance of the fund has generally been in line with or outperformed the historical performance of comparable funds and the fund’s benchmark index; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
38 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Mark E. Donovan, CFA
Stephanie T. McGirr
David J. Pyle, CFA
Joshua White, CFA
You can also contact us: | ||
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jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 39 |
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Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 1 |
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2 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
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TOP 10 HOLDINGS AS OF 9/30/2022 (% of net assets) | |
Ameriprise Financial, Inc. | 2.3 |
AutoZone, Inc. | 2.1 |
CenterPoint Energy, Inc. | 1.8 |
Huntington Bancshares, Inc. | 1.6 |
Fifth Third Bancorp | 1.6 |
East West Bancorp, Inc. | 1.5 |
Schlumberger NV | 1.5 |
KeyCorp | 1.5 |
Dover Corp. | 1.5 |
Eaton Corp. PLC | 1.5 |
TOTAL | 16.9 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 3 |
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4 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
Account value on 4-1-2022 | Ending value on 9-30-2022 | Expenses paid during period ended 9-30-20221 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $823.20 | $5.03 | 1.10% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.57 | 1.10% | |
Class C | Actual expenses/actual returns | 1,000.00 | 819.80 | 8.44 | 1.85% |
Hypothetical example | 1,000.00 | 1,015.80 | 9.35 | 1.85% | |
Class I | Actual expenses/actual returns | 1,000.00 | 824.00 | 3.89 | 0.85% |
Hypothetical example | 1,000.00 | 1,020.80 | 4.31 | 0.85% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 822.70 | 5.71 | 1.25% |
Hypothetical example | 1,000.00 | 1,018.80 | 6.33 | 1.25% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 823.30 | 4.57 | 1.00% |
Hypothetical example | 1,000.00 | 1,020.10 | 5.06 | 1.00% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 824.60 | 3.43 | 0.75% |
Hypothetical example | 1,000.00 | 1,021.30 | 3.80 | 0.75% |
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 | 5 |
Shares | Value | ||||
Common stocks 97.4% | $17,000,304,043 | ||||
(Cost $14,842,803,681) | |||||
Communication services 1.0% | 176,847,537 | ||||
Entertainment 1.0% | |||||
Live Nation Entertainment, Inc. (A) | 1,204,422 | 91,584,249 | |||
Take-Two Interactive Software, Inc. (A) | 782,232 | 85,263,288 | |||
Consumer discretionary 14.2% | 2,472,176,107 | ||||
Auto components 0.8% | |||||
Gentex Corp. | 3,233,706 | 77,091,551 | |||
Lear Corp. | 548,013 | 65,591,676 | |||
Automobiles 1.0% | |||||
Harley-Davidson, Inc. | 5,071,316 | 176,887,502 | |||
Distributors 0.8% | |||||
LKQ Corp. | 2,994,094 | 141,171,532 | |||
Diversified consumer services 0.3% | |||||
frontdoor, Inc. (A) | 2,468,060 | 50,323,743 | |||
Hotels, restaurants and leisure 3.7% | |||||
Darden Restaurants, Inc. | 717,583 | 90,645,085 | |||
Domino’s Pizza, Inc. | 175,589 | 54,467,708 | |||
Expedia Group, Inc. (A) | 1,065,879 | 99,862,204 | |||
International Game Technology PLC | 3,089,476 | 48,813,721 | |||
Las Vegas Sands Corp. (A) | 2,411,502 | 90,479,555 | |||
Marriott International, Inc., Class A | 985,970 | 138,173,836 | |||
Wyndham Hotels & Resorts, Inc. | 1,911,867 | 117,293,040 | |||
Household durables 2.7% | |||||
Garmin, Ltd. | 1,513,097 | 121,516,820 | |||
Mohawk Industries, Inc. (A) | 967,996 | 88,271,555 | |||
Tempur Sealy International, Inc. | 4,692,357 | 113,273,498 | |||
Whirlpool Corp. | 1,051,172 | 141,708,497 | |||
Leisure products 1.9% | |||||
Hasbro, Inc. | 2,319,422 | 156,375,431 | |||
Polaris, Inc. | 1,439,267 | 137,665,889 | |||
Topgolf Callaway Brands Corp. (A) | 2,286,221 | 44,032,616 | |||
Specialty retail 3.0% | |||||
AutoZone, Inc. (A) | 173,517 | 371,661,268 | |||
Ross Stores, Inc. | 1,742,843 | 146,869,380 | |||
Consumer staples 1.9% | 329,274,744 | ||||
Beverages 1.1% | |||||
Coca-Cola Europacific Partners PLC | 1,812,282 | 77,239,459 | |||
Keurig Dr. Pepper, Inc. | 3,186,883 | 114,154,149 |
6 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Consumer staples (continued) | |||||
Food and staples retailing 0.8% | |||||
U.S. Foods Holding Corp. (A) | 5,214,869 | $137,881,136 | |||
Energy 7.9% | 1,386,164,150 | ||||
Energy equipment and services 2.2% | |||||
Halliburton Company | 5,466,164 | 134,576,958 | |||
Schlumberger NV | 7,272,660 | 261,088,494 | |||
Oil, gas and consumable fuels 5.7% | |||||
ConocoPhillips | 1,587,723 | 162,487,572 | |||
Devon Energy Corp. | 3,064,517 | 184,269,407 | |||
Diamondback Energy, Inc. | 1,307,531 | 157,505,184 | |||
Marathon Petroleum Corp. | 1,910,496 | 189,769,568 | |||
Pioneer Natural Resources Company | 962,630 | 208,438,274 | |||
Valero Energy Corp. | 823,853 | 88,028,693 | |||
Financials 16.4% | 2,871,107,530 | ||||
Banks 7.1% | |||||
East West Bancorp, Inc. | 3,998,028 | 268,427,600 | |||
Fifth Third Bancorp | 8,436,768 | 269,639,105 | |||
First Republic Bank | 453,170 | 59,161,344 | |||
Huntington Bancshares, Inc. | 21,152,228 | 278,786,365 | |||
KeyCorp | 16,287,844 | 260,931,261 | |||
SVB Financial Group (A) | 123,620 | 41,509,124 | |||
Truist Financial Corp. | 1,335,790 | 58,160,297 | |||
Capital markets 2.6% | |||||
Ameriprise Financial, Inc. | 1,620,178 | 408,203,842 | |||
State Street Corp. | 864,638 | 52,578,637 | |||
Consumer finance 1.3% | |||||
Discover Financial Services | 2,050,989 | 186,475,920 | |||
SLM Corp. | 3,644,260 | 50,983,197 | |||
Diversified financial services 0.4% | |||||
Voya Financial, Inc. | 1,136,881 | 68,781,301 | |||
Insurance 5.0% | |||||
Aflac, Inc. | 1,272,968 | 71,540,802 | |||
Alleghany Corp. (A) | 85,652 | 71,893,719 | |||
Aon PLC, Class A | 634,287 | 169,906,459 | |||
Arch Capital Group, Ltd. (A) | 1,026,151 | 46,730,917 | |||
Everest Re Group, Ltd. | 782,189 | 205,277,681 | |||
Globe Life, Inc. | 1,263,647 | 125,985,606 | |||
RenaissanceRe Holdings, Ltd. | 248,852 | 34,936,332 | |||
The Allstate Corp. | 733,719 | 91,370,027 | |||
The Travelers Companies, Inc. | 325,248 | 49,827,994 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 7 |
Shares | Value | ||||
Health care 8.3% | $1,451,038,098 | ||||
Health care equipment and supplies 1.3% | |||||
Envista Holdings Corp. (A) | 2,856,797 | 93,731,510 | |||
Zimmer Biomet Holdings, Inc. | 1,253,133 | 131,015,055 | |||
Health care providers and services 4.9% | |||||
AmerisourceBergen Corp. | 1,682,295 | 227,664,982 | |||
Centene Corp. (A) | 1,351,526 | 105,162,238 | |||
Cigna Corp. | 312,211 | 86,629,186 | |||
HCA Healthcare, Inc. | 846,302 | 155,541,845 | |||
Humana, Inc. | 443,549 | 215,205,539 | |||
Laboratory Corp. of America Holdings | 304,511 | 62,366,898 | |||
Life sciences tools and services 2.1% | |||||
Avantor, Inc. (A) | 3,607,428 | 70,705,589 | |||
ICON PLC (A) | 1,239,817 | 227,853,568 | |||
IQVIA Holdings, Inc. (A) | 414,937 | 75,161,688 | |||
Industrials 21.8% | 3,800,077,608 | ||||
Aerospace and defense 5.4% | |||||
BWX Technologies, Inc. | 2,395,648 | 120,668,790 | |||
Curtiss-Wright Corp. | 825,711 | 114,905,943 | |||
Hexcel Corp. | 2,517,280 | 130,193,722 | |||
Howmet Aerospace, Inc. | 6,724,354 | 207,984,269 | |||
L3Harris Technologies, Inc. | 539,591 | 112,143,198 | |||
Maxar Technologies, Inc. | 2,287,129 | 42,815,055 | |||
Textron, Inc. | 3,578,620 | 208,490,401 | |||
Air freight and logistics 0.9% | |||||
Expeditors International of Washington, Inc. | 1,273,915 | 112,499,434 | |||
FedEx Corp. | 339,509 | 50,406,901 | |||
Airlines 0.6% | |||||
Alaska Air Group, Inc. (A) | 2,422,323 | 94,833,945 | |||
Building products 2.6% | |||||
Advanced Drainage Systems, Inc. | 1,032,180 | 128,372,227 | |||
Allegion PLC | 1,495,143 | 134,084,424 | |||
Masco Corp. | 2,603,036 | 121,535,751 | |||
Resideo Technologies, Inc. (A) | 3,878,340 | 73,921,160 | |||
Commercial services and supplies 0.8% | |||||
Copart, Inc. (A) | 1,277,003 | 135,873,119 | |||
Electrical equipment 3.3% | |||||
AMETEK, Inc. | 2,224,844 | 252,319,558 | |||
Eaton Corp. PLC | 1,897,452 | 253,044,199 | |||
nVent Electric PLC | 2,260,066 | 71,440,686 | |||
Machinery 3.9% | |||||
Altra Industrial Motion Corp. | 1,441,440 | 48,461,213 | |||
Dover Corp. | 2,228,561 | 259,805,641 |
8 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Industrials (continued) | |||||
Machinery (continued) | |||||
ITT, Inc. | 988,593 | $64,594,667 | |||
Otis Worldwide Corp. | 1,833,439 | 116,973,408 | |||
Parker-Hannifin Corp. | 806,203 | 195,351,049 | |||
Professional services 2.3% | |||||
ASGN, Inc. (A) | 1,131,790 | 102,279,862 | |||
Leidos Holdings, Inc. | 830,321 | 72,628,178 | |||
Robert Half International, Inc. | 773,227 | 59,151,866 | |||
Science Applications International Corp. | 1,157,326 | 102,342,338 | |||
TransUnion | 959,481 | 57,079,525 | |||
Road and rail 1.5% | |||||
Landstar System, Inc. | 801,252 | 115,676,751 | |||
Norfolk Southern Corp. | 720,618 | 151,077,564 | |||
Trading companies and distributors 0.5% | |||||
Ferguson PLC | 865,858 | 89,122,764 | |||
Information technology 9.5% | 1,653,699,010 | ||||
Electronic equipment, instruments and components 1.7% | |||||
Flex, Ltd. (A) | 3,235,011 | 53,895,283 | |||
TE Connectivity, Ltd. | 2,143,489 | 236,555,446 | |||
IT services 2.3% | |||||
Cognizant Technology Solutions Corp., Class A | 2,604,185 | 149,584,386 | |||
EVERTEC, Inc. | 1,490,608 | 46,730,561 | |||
Global Payments, Inc. | 1,059,155 | 114,441,698 | |||
SS&C Technologies Holdings, Inc. | 1,913,499 | 91,369,577 | |||
Semiconductors and semiconductor equipment 2.3% | |||||
KLA Corp. | 183,817 | 55,628,539 | |||
Microchip Technology, Inc. | 2,252,752 | 137,485,455 | |||
NXP Semiconductors NV | 503,566 | 74,281,021 | |||
Qorvo, Inc. (A) | 1,563,281 | 124,140,144 | |||
Software 2.2% | |||||
Check Point Software Technologies, Ltd. (A) | 1,341,281 | 150,250,298 | |||
Fair Isaac Corp. (A) | 240,725 | 99,181,107 | |||
NortonLifeLock, Inc. | 6,986,559 | 140,709,298 | |||
Technology hardware, storage and peripherals 1.0% | |||||
NetApp, Inc. | 1,564,313 | 96,752,759 | |||
Western Digital Corp. (A) | 2,540,505 | 82,693,438 | |||
Materials 5.0% | 866,996,166 | ||||
Chemicals 4.1% | |||||
Axalta Coating Systems, Ltd. (A) | 3,720,328 | 78,350,108 | |||
Corteva, Inc. | 3,697,945 | 211,337,557 | |||
DuPont de Nemours, Inc. | 2,569,541 | 129,504,866 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 9 |
Shares | Value | ||||
Materials (continued) | |||||
Chemicals (continued) | |||||
FMC Corp. | 1,234,965 | $130,535,801 | |||
PPG Industries, Inc. | 1,442,302 | 159,648,408 | |||
Containers and packaging 0.9% | |||||
Avery Dennison Corp. | 644,872 | 104,920,674 | |||
Crown Holdings, Inc. | 650,361 | 52,698,752 | |||
Real estate 6.1% | 1,074,469,742 | ||||
Equity real estate investment trusts 6.1% | |||||
American Homes 4 Rent, Class A | 2,526,774 | 82,903,455 | |||
Cousins Properties, Inc. | 2,643,231 | 61,719,444 | |||
Duke Realty Corp. | 2,074,382 | 99,985,212 | |||
Equity Residential | 1,876,367 | 126,129,390 | |||
Essex Property Trust, Inc. | 667,212 | 161,618,763 | |||
Healthpeak Properties, Inc. | 3,398,807 | 77,900,656 | |||
Kilroy Realty Corp. | 1,198,116 | 50,452,665 | |||
Lamar Advertising Company, Class A | 1,148,576 | 94,746,034 | |||
Regency Centers Corp. | 2,828,454 | 152,312,248 | |||
Welltower, Inc. | 2,591,758 | 166,701,875 | |||
Utilities 5.3% | 918,453,351 | ||||
Electric utilities 2.6% | |||||
American Electric Power Company, Inc. | 1,515,023 | 130,973,738 | |||
Entergy Corp. | 1,942,276 | 195,451,234 | |||
FirstEnergy Corp. | 3,124,602 | 115,610,274 | |||
Multi-utilities 2.7% | |||||
CenterPoint Energy, Inc. | 11,065,596 | 311,828,495 | |||
DTE Energy Company | 1,430,592 | 164,589,610 | |||
Yield (%) | Shares | Value | |||
Short-term investments 2.5% | $438,046,413 | ||||
(Cost $438,046,413) | |||||
Short-term funds 2.5% | 438,046,413 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2.9329(B) | 438,046,413 | 438,046,413 |
Total investments (Cost $15,280,850,094) 99.9% | $17,438,350,456 | ||||
Other assets and liabilities, net 0.1% | 17,625,385 | ||||
Total net assets 100.0% | $17,455,975,841 |
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 9-30-22. |
10 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 11 |
Assets | |
Unaffiliated investments, at value (Cost $15,280,850,094) | $17,438,350,456 |
Dividends and interest receivable | 21,827,821 |
Receivable for fund shares sold | 28,870,117 |
Receivable for investments sold | 33,705,293 |
Other assets | 662,508 |
Total assets | 17,523,416,195 |
Liabilities | |
Payable for investments purchased | 44,931,179 |
Payable for fund shares repurchased | 17,791,091 |
Payable to affiliates | |
Accounting and legal services fees | 676,730 |
Transfer agent fees | 1,346,850 |
Distribution and service fees | 27,540 |
Trustees’ fees | 4,545 |
Other liabilities and accrued expenses | 2,662,419 |
Total liabilities | 67,440,354 |
Net assets | $17,455,975,841 |
Net assets consist of | |
Paid-in capital | $14,496,051,986 |
Total distributable earnings (loss) | 2,959,923,855 |
Net assets | $17,455,975,841 |
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 ($1,220,422,116 ÷ 56,478,479 shares)1 | $21.61 |
Class C ($47,255,512 ÷ 2,204,679 shares)1 | $21.43 |
Class I ($11,998,088,932 ÷ 528,538,324 shares) | $22.70 |
Class R2 ($79,562,708 ÷ 3,528,739 shares) | $22.55 |
Class R4 ($111,077,120 ÷ 4,903,233 shares) | $22.65 |
Class R6 ($3,999,569,453 ÷ 176,137,832 shares) | $22.71 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $22.75 |
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 Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $193,503,083 |
Interest | 3,634,792 |
Securities lending | 7,614 |
Less foreign taxes withheld | (137,345) |
Total investment income | 197,008,144 |
Expenses | |
Investment management fees | 69,440,915 |
Distribution and service fees | 2,442,082 |
Accounting and legal services fees | 1,314,798 |
Transfer agent fees | 8,840,653 |
Trustees’ fees | 178,383 |
Custodian fees | 1,089,552 |
State registration fees | 254,752 |
Printing and postage | 445,682 |
Professional fees | 260,528 |
Other | 264,489 |
Total expenses | 84,531,834 |
Less expense reductions | (814,535) |
Net expenses | 83,717,299 |
Net investment income | 113,290,845 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | 277,935,055 |
Affiliated investments | (105) |
277,934,950 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (4,129,289,046) |
Affiliated investments | (1,998) |
(4,129,291,044) | |
Net realized and unrealized loss | (3,851,356,094) |
Decrease in net assets from operations | $(3,738,065,249) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 13 |
Six months ended 9-30-22 (unaudited) | Year ended 3-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $113,290,845 | $115,090,424 |
Net realized gain | 277,934,950 | 1,065,699,470 |
Change in net unrealized appreciation (depreciation) | (4,129,291,044) | 836,671,267 |
Increase (decrease) in net assets resulting from operations | (3,738,065,249) | 2,017,461,161 |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (93,487,984) |
Class C | — | (4,250,422) |
Class I | — | (907,220,543) |
Class R2 | — | (6,373,136) |
Class R4 | — | (8,561,772) |
Class R6 | — | (291,253,364) |
Total distributions | — | (1,311,147,221) |
From fund share transactions | (211,485,050) | 3,456,435,841 |
Total increase (decrease) | (3,949,550,299) | 4,162,749,781 |
Net assets | ||
Beginning of period | 21,405,526,140 | 17,242,776,359 |
End of period | $17,455,975,841 | $21,405,526,140 |
14 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $26.25 | $25.33 | $14.91 | $19.08 | $22.35 | $21.61 |
Net investment income2 | 0.11 | 0.09 | 0.10 | 0.14 | 0.12 | 0.07 |
Net realized and unrealized gain (loss) on investments | (4.75) | 2.60 | 10.54 | (3.83) | (1.01) | 2.11 |
Total from investment operations | (4.64) | 2.69 | 10.64 | (3.69) | (0.89) | 2.18 |
Less distributions | ||||||
From net investment income | — | (0.07) | (0.14) | (0.14) | (0.13) | (0.06) |
From net realized gain | — | (1.70) | (0.08) | (0.34) | (2.25) | (1.38) |
Total distributions | — | (1.77) | (0.22) | (0.48) | (2.38) | (1.44) |
Net asset value, end of period | $21.61 | $26.25 | $25.33 | $14.91 | $19.08 | $22.35 |
Total return (%)3,4 | (17.68)5 | 10.91 | 71.55 | (20.06) | (2.98) | 10.15 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,220 | $1,486 | $1,204 | $782 | $1,184 | $1,547 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.116 | 1.11 | 1.12 | 1.12 | 1.11 | 1.11 |
Expenses including reductions | 1.106 | 1.10 | 1.11 | 1.12 | 1.10 | 1.10 |
Net investment income | 0.906 | 0.34 | 0.52 | 0.70 | 0.58 | 0.30 |
Portfolio turnover (%) | 21 | 26 | 527 | 54 | 53 | 53 |
1 | Six months ended 9-30-22. 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 | 15 |
CLASS C SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $26.14 | $25.34 | $14.94 | $19.13 | $22.42 | $21.77 |
Net investment income (loss)2 | 0.02 | (0.12) | (0.05) | (0.01) | (0.04) | (0.10) |
Net realized and unrealized gain (loss) on investments | (4.73) | 2.62 | 10.53 | (3.84) | (1.00) | 2.13 |
Total from investment operations | (4.71) | 2.50 | 10.48 | (3.85) | (1.04) | 2.03 |
Less distributions | ||||||
From net realized gain | — | (1.70) | (0.08) | (0.34) | (2.25) | (1.38) |
Net asset value, end of period | $21.43 | $26.14 | $25.34 | $14.94 | $19.13 | $22.42 |
Total return (%)3,4 | (18.02)5 | 10.12 | 70.20 | (20.63) | (3.72) | 9.35 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $47 | $62 | $92 | $107 | $182 | $278 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.866 | 1.86 | 1.87 | 1.87 | 1.86 | 1.86 |
Expenses including reductions | 1.856 | 1.85 | 1.86 | 1.87 | 1.85 | 1.85 |
Net investment income (loss) | 0.146 | (0.46) | (0.23) | (0.07) | (0.19) | (0.43) |
Portfolio turnover (%) | 21 | 26 | 527 | 54 | 53 | 53 |
1 | Six months ended 9-30-22. 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. |
16 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $27.55 | $26.49 | $15.58 | $19.91 | $23.22 | $22.39 |
Net investment income2 | 0.15 | 0.16 | 0.16 | 0.20 | 0.18 | 0.14 |
Net realized and unrealized gain (loss) on investments | (5.00) | 2.74 | 11.02 | (4.00) | (1.06) | 2.19 |
Total from investment operations | (4.85) | 2.90 | 11.18 | (3.80) | (0.88) | 2.33 |
Less distributions | ||||||
From net investment income | — | (0.14) | (0.19) | (0.19) | (0.18) | (0.12) |
From net realized gain | — | (1.70) | (0.08) | (0.34) | (2.25) | (1.38) |
Total distributions | — | (1.84) | (0.27) | (0.53) | (2.43) | (1.50) |
Net asset value, end of period | $22.70 | $27.55 | $26.49 | $15.58 | $19.91 | $23.22 |
Total return (%)3 | (17.60)4 | 11.23 | 71.97 | (19.84) | (2.79) | 10.46 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $11,998 | $14,847 | $11,932 | $6,349 | $7,784 | $9,799 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.865 | 0.86 | 0.87 | 0.87 | 0.88 | 0.86 |
Expenses including reductions | 0.855 | 0.85 | 0.86 | 0.87 | 0.87 | 0.85 |
Net investment income | 1.155 | 0.59 | 0.78 | 0.97 | 0.82 | 0.58 |
Portfolio turnover (%) | 21 | 26 | 526 | 54 | 53 | 53 |
1 | Six months ended 9-30-22. 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 | 17 |
CLASS R2 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $27.41 | $26.37 | $15.53 | $19.85 | $23.14 | $22.32 |
Net investment income2 | 0.10 | 0.05 | 0.08 | 0.11 | 0.09 | 0.04 |
Net realized and unrealized gain (loss) on investments | (4.96) | 2.73 | 10.96 | (3.98) | (1.04) | 2.19 |
Total from investment operations | (4.86) | 2.78 | 11.04 | (3.87) | (0.95) | 2.23 |
Less distributions | ||||||
From net investment income | — | (0.04) | (0.12) | (0.11) | (0.09) | (0.03) |
From net realized gain | — | (1.70) | (0.08) | (0.34) | (2.25) | (1.38) |
Total distributions | — | (1.74) | (0.20) | (0.45) | (2.34) | (1.41) |
Net asset value, end of period | $22.55 | $27.41 | $26.37 | $15.53 | $19.85 | $23.14 |
Total return (%)3 | (17.73)4 | 10.78 | 71.23 | (20.14) | (3.14) | 10.03 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $80 | $103 | $106 | $77 | $131 | $188 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.255 | 1.25 | 1.25 | 1.26 | 1.27 | 1.26 |
Expenses including reductions | 1.255 | 1.24 | 1.24 | 1.25 | 1.26 | 1.25 |
Net investment income | 0.755 | 0.18 | 0.39 | 0.54 | 0.41 | 0.17 |
Portfolio turnover (%) | 21 | 26 | 526 | 54 | 53 | 53 |
1 | Six months ended 9-30-22. 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. |
18 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R4 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $27.51 | $26.46 | $15.57 | $19.90 | $23.20 | $22.38 |
Net investment income2 | 0.13 | 0.12 | 0.14 | 0.17 | 0.15 | 0.09 |
Net realized and unrealized gain (loss) on investments | (4.99) | 2.73 | 10.99 | (4.00) | (1.05) | 2.20 |
Total from investment operations | (4.86) | 2.85 | 11.13 | (3.83) | (0.90) | 2.29 |
Less distributions | ||||||
From net investment income | — | (0.10) | (0.16) | (0.16) | (0.15) | (0.09) |
From net realized gain | — | (1.70) | (0.08) | (0.34) | (2.25) | (1.38) |
Total distributions | — | (1.80) | (0.24) | (0.50) | (2.40) | (1.47) |
Net asset value, end of period | $22.65 | $27.51 | $26.46 | $15.57 | $19.90 | $23.20 |
Total return (%)3 | (17.67)4 | 11.06 | 71.69 | (19.96) | (2.90) | 10.26 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $111 | $141 | $130 | $55 | $74 | $97 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.115 | 1.10 | 1.11 | 1.11 | 1.12 | 1.12 |
Expenses including reductions | 1.005 | 0.99 | 1.00 | 1.00 | 1.01 | 1.01 |
Net investment income | 1.005 | 0.43 | 0.65 | 0.81 | 0.68 | 0.42 |
Portfolio turnover (%) | 21 | 26 | 526 | 54 | 53 | 53 |
1 | Six months ended 9-30-22. 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 R6 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $27.54 | $26.48 | $15.58 | $19.90 | $23.21 | $22.38 |
Net investment income2 | 0.16 | 0.19 | 0.18 | 0.23 | 0.21 | 0.17 |
Net realized and unrealized gain (loss) on investments | (4.99) | 2.74 | 11.01 | (4.00) | (1.07) | 2.18 |
Total from investment operations | (4.83) | 2.93 | 11.19 | (3.77) | (0.86) | 2.35 |
Less distributions | ||||||
From net investment income | — | (0.17) | (0.21) | (0.21) | (0.20) | (0.14) |
From net realized gain | — | (1.70) | (0.08) | (0.34) | (2.25) | (1.38) |
Total distributions | — | (1.87) | (0.29) | (0.55) | (2.45) | (1.52) |
Net asset value, end of period | $22.71 | $27.54 | $26.48 | $15.58 | $19.90 | $23.21 |
Total return (%)3 | (17.54)4 | 11.36 | 72.06 | (19.72) | (2.66) | 10.56 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $4,000 | $4,768 | $3,778 | $2,546 | $2,994 | $2,748 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.765 | 0.75 | 0.76 | 0.76 | 0.77 | 0.77 |
Expenses including reductions | 0.755 | 0.75 | 0.75 | 0.76 | 0.76 | 0.76 |
Net investment income | 1.265 | 0.69 | 0.88 | 1.08 | 0.96 | 0.71 |
Portfolio turnover (%) | 21 | 26 | 526 | 54 | 53 | 53 |
1 | Six months ended 9-30-22. 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 |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 21 |
22 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 23 |
Class | Expense reduction |
Class A | $52,453 |
Class C | 2,109 |
Class I | 517,333 |
Class R2 | 3,535 |
Class | Expense reduction |
Class R4 | $4,843 |
Class R6 | 170,984 |
Total | $751,257 |
24 | 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 | 25 |
Class | Distribution and service fees | Transfer agent fees |
Class A | $1,714,449 | $790,359 |
Class C | 275,662 | 31,786 |
Class I | — | 7,796,716 |
Class R2 | 230,497 | 4,374 |
Class R4 | 221,474 | 5,988 |
Class R6 | — | 211,430 |
Total | $2,442,082 | $8,840,653 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $61,400,000 | 3 | 0.889% | $4,550 |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 7,691,689 | $183,236,022 | 17,271,449 | $459,849,087 |
Distributions reinvested | — | — | 3,233,445 | 81,870,828 |
Repurchased | (7,801,351) | (186,358,003) | (11,461,015) | (303,540,324) |
Net increase (decrease) | (109,662) | $(3,121,981) | 9,043,879 | $238,179,591 |
Class C shares | ||||
Sold | 225,160 | $5,415,096 | 670,446 | $17,752,159 |
Distributions reinvested | — | — | 165,026 | 4,168,561 |
Repurchased | (374,153) | (8,979,956) | (2,123,525) | (57,000,431) |
Net decrease | (148,993) | $(3,564,860) | (1,288,053) | $(35,079,711) |
26 | JOHN HANCOCK Disciplined Value Mid Cap Fund���| SEMIANNUAL REPORT |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class I shares | ||||
Sold | 59,431,941 | $1,507,947,596 | 158,975,602 | $4,421,157,908 |
Distributions reinvested | — | — | 30,847,582 | 819,003,301 |
Repurchased | (69,862,088) | (1,781,433,750) | (101,293,916) | (2,817,335,655) |
Net increase (decrease) | (10,430,147) | $(273,486,154) | 88,529,268 | $2,422,825,554 |
Class R2 shares | ||||
Sold | 291,879 | $7,265,018 | 738,603 | $20,534,775 |
Distributions reinvested | — | — | 216,500 | 5,726,413 |
Repurchased | (509,881) | (12,745,875) | (1,225,374) | (34,017,394) |
Net decrease | (218,002) | $(5,480,857) | (270,271) | $(7,756,206) |
Class R4 shares | ||||
Sold | 380,028 | $9,624,399 | 1,442,449 | $40,248,996 |
Distributions reinvested | — | — | 322,842 | 8,561,772 |
Repurchased | (585,931) | (14,838,253) | (1,581,351) | (43,886,059) |
Net increase (decrease) | (205,903) | $(5,213,854) | 183,940 | $4,924,709 |
Class R6 shares | ||||
Sold | 24,541,732 | $635,543,432 | 50,998,138 | $1,417,851,144 |
Distributions reinvested | — | — | 10,321,964 | 273,841,708 |
Repurchased | (21,554,522) | (556,160,776) | (30,824,404) | (858,350,948) |
Net increase | 2,987,210 | $79,382,656 | 30,495,698 | $833,341,904 |
Total net increase (decrease) | (8,125,497) | $(211,485,050) | 126,694,461 | $3,456,435,841 |
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* | — | $33,247,148 | $81,993,703 | $(115,238,748) | $(105) | $(1,998) | $7,614 | — | — |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 27 |
28 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT |
Total votes for the nominee | Total votes withheld from the nominee | |
Independent Trustees | ||
James R. Boyle | 1,409,775,493.514 | 15,295,731.365 |
Frances G. Rathke | 1,409,882,732.809 | 15,188,492.070 |
Noni L. Ellison | 1,411,065,236.157 | 14,005,988.722 |
Dean Garfield | 1,409,601,084.314 | 15,470,140.565 |
Patricia Lizarraga | 1,410,809,328.457 | 14,261,896.422 |
Non-Independent Trustees | ||
Andrew G. Arnott | 1,410,004,927.170 | 15,066,297.709 |
Marianne Harrison | 1,410,636,974.305 | 14,434,250.574 |
Paul Lorentz | 1,409,775,645.079 | 15,295,579.800 |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 29 |
30 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
(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; |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 31 |
(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. |
32 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
(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 |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 33 |
(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. |
34 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 35 |
(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. |
36 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
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 |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 37 |
GOVERNANCE FUNDS
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MF2459781 | 363SA 9/22 |
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Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 1 |
![](https://capedge.com/proxy/N-CSRS/0001683863-22-007137/img3286decd6.gif)
2 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
![](https://capedge.com/proxy/N-CSRS/0001683863-22-007137/img94debe927.gif)
TOP 10 HOLDINGS AS OF 9/30/2022 (% of net assets) | |
AbbVie, Inc. | 2.2 |
IBM Corp. | 2.0 |
Broadcom, Inc. | 1.9 |
Microsoft Corp. | 1.8 |
Philip Morris International, Inc. | 1.8 |
Analog Devices, Inc. | 1.7 |
TotalEnergies SE | 1.7 |
Novartis AG | 1.6 |
AstraZeneca PLC, ADR | 1.6 |
Iron Mountain, Inc. | 1.6 |
TOTAL | 17.9 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 3 |
TOP 10 COUNTRIES AS OF 9/30/2022 (% of net assets) | |
United States | 58.8 |
United Kingdom | 8.1 |
Canada | 7.5 |
Germany | 6.5 |
France | 5.6 |
Switzerland | 2.8 |
Japan | 2.4 |
South Korea | 1.4 |
Ireland | 1.0 |
Taiwan | 0.9 |
TOTAL | 95.0 |
Cash and cash equivalents are not included. |
4 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
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SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 5 |
Account value on 4-1-2022 | Ending value on 9-30-2022 | Expenses paid during period ended 9-30-20221 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $826.60 | $4.99 | 1.09% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.52 | 1.09% | |
Class C | Actual expenses/actual returns | 1,000.00 | 823.60 | 8.41 | 1.84% |
Hypothetical example | 1,000.00 | 1,015.80 | 9.30 | 1.84% | |
Class I | Actual expenses/actual returns | 1,000.00 | 828.40 | 3.85 | 0.84% |
Hypothetical example | 1,000.00 | 1,020.90 | 4.26 | 0.84% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 826.90 | 5.50 | 1.20% |
Hypothetical example | 1,000.00 | 1,019.10 | 6.07 | 1.20% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 828.60 | 3.39 | 0.74% |
Hypothetical example | 1,000.00 | 1,021.40 | 3.75 | 0.74% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 827.90 | 3.39 | 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). |
6 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 97.2% | $883,488,461 | ||||
(Cost $786,614,753) | |||||
Canada 7.5% | 68,605,819 | ||||
BCE, Inc. (A) | 206,692 | 8,666,595 | |||
Enbridge, Inc. | 202,197 | 7,497,398 | |||
Fortis, Inc. | 119,702 | 4,547,697 | |||
Great-West Lifeco, Inc. | 292,698 | 6,318,641 | |||
Nutrien, Ltd. (New York Stock Exchange) | 115,862 | 9,660,574 | |||
Restaurant Brands International, Inc. | 261,447 | 13,903,746 | |||
Royal Bank of Canada | 103,798 | 9,345,464 | |||
TELUS Corp. (A) | 436,397 | 8,665,704 | |||
France 5.6% | 50,636,257 | ||||
AXA SA | 575,910 | 12,573,747 | |||
Danone SA | 77,569 | 3,667,862 | |||
Orange SA | 904,323 | 8,179,153 | |||
Sanofi | 140,908 | 10,729,613 | |||
TotalEnergies SE (A) | 330,088 | 15,485,882 | |||
Germany 6.5% | 58,835,840 | ||||
Allianz SE | 57,758 | 9,098,836 | |||
BASF SE | 147,884 | 5,675,530 | |||
Bayer AG | 131,142 | 6,042,285 | |||
Deutsche Post AG | 283,254 | 8,537,146 | |||
Deutsche Telekom AG | 813,639 | 13,849,445 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 43,528 | 10,478,049 | |||
Siemens AG | 52,736 | 5,154,549 | |||
Hong Kong 0.5% | 4,908,143 | ||||
China Resources Gas Group, Ltd. | 1,548,000 | 4,908,143 | |||
Ireland 1.0% | 9,372,976 | ||||
Medtronic PLC | 116,074 | 9,372,976 | |||
Italy 0.9% | 7,927,309 | ||||
Snam SpA | 1,961,274 | 7,927,309 | |||
Japan 2.4% | 21,984,328 | ||||
Bridgestone Corp. | 171,600 | 5,549,701 | |||
Koei Tecmo Holdings Company, Ltd. | 399,800 | 6,581,038 | |||
Tokio Marine Holdings, Inc. | 297,900 | 5,294,615 | |||
Toyota Motor Corp. | 348,800 | 4,558,974 | |||
Norway 0.8% | 7,125,511 | ||||
Orkla ASA | 980,218 | 7,125,511 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 7 |
Shares | Value | ||||
South Korea 1.4% | $13,018,643 | ||||
Samsung Electronics Company, Ltd., GDR (B) | 9,208 | 8,371,485 | |||
SK Telecom Company, Ltd. | 131,634 | 4,647,158 | |||
Switzerland 2.8% | 25,571,956 | ||||
Nestle SA | 56,240 | 6,082,768 | |||
Novartis AG | 191,299 | 14,584,060 | |||
Roche Holding AG | 15,068 | 4,905,128 | |||
Taiwan 0.9% | 8,130,256 | ||||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 118,586 | 8,130,256 | |||
United Kingdom 8.1% | 73,563,179 | ||||
AstraZeneca PLC, ADR | 262,843 | 14,414,310 | |||
B&M European Value Retail SA | 1,309,231 | 4,452,984 | |||
BAE Systems PLC | 647,922 | 5,692,892 | |||
British American Tobacco PLC | 373,616 | 13,396,888 | |||
Coca-Cola Europacific Partners PLC | 288,889 | 12,312,449 | |||
GSK PLC | 325,009 | 4,693,989 | |||
Linde PLC | 17,299 | 4,663,637 | |||
National Grid PLC | 378,359 | 3,894,852 | |||
Unilever PLC | 228,522 | 10,041,178 | |||
United States 58.8% | 533,808,244 | ||||
AbbVie, Inc. | 148,773 | 19,966,824 | |||
Air Products & Chemicals, Inc. | 24,833 | 5,779,384 | |||
Altria Group, Inc. | 211,781 | 8,551,717 | |||
Ameren Corp. | 62,781 | 5,057,010 | |||
American Electric Power Company, Inc. | 125,840 | 10,878,868 | |||
Amgen, Inc. | 24,555 | 5,534,697 | |||
Analog Devices, Inc. | 111,346 | 15,514,952 | |||
Apple, Inc. | 55,513 | 7,671,897 | |||
AT&T, Inc. | 421,887 | 6,471,747 | |||
Broadcom, Inc. | 39,286 | 17,443,377 | |||
Chevron Corp. | 38,356 | 5,510,607 | |||
Cisco Systems, Inc. | 343,202 | 13,728,080 | |||
Columbia Banking System, Inc. | 279,146 | 8,064,528 | |||
Cummins, Inc. | 54,107 | 11,011,316 | |||
Dow, Inc. | 190,575 | 8,371,960 | |||
Duke Energy Corp. | 55,247 | 5,139,076 | |||
Eaton Corp. PLC | 44,124 | 5,884,377 | |||
Emerson Electric Company | 92,078 | 6,741,951 | |||
Entergy Corp. | 74,779 | 7,525,011 | |||
Enterprise Products Partners LP | 578,700 | 13,761,486 | |||
Evergy, Inc. | 156,919 | 9,320,989 | |||
Hasbro, Inc. | 105,472 | 7,110,922 | |||
Hubbell, Inc. | 24,142 | 5,383,666 |
8 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
United States (continued) | |||||
IBM Corp. | 155,487 | $18,473,410 | |||
Intel Corp. | 116,353 | 2,998,417 | |||
Iron Mountain, Inc. | 321,718 | 14,145,940 | |||
Johnson & Johnson | 35,716 | 5,834,566 | |||
JPMorgan Chase & Co. | 87,335 | 9,126,508 | |||
KeyCorp | 736,606 | 11,800,428 | |||
Kimberly-Clark Corp. | 42,133 | 4,741,648 | |||
KLA Corp. | 24,555 | 7,431,080 | |||
Lazard, Ltd., Class A (A) | 340,412 | 10,835,314 | |||
Leggett & Platt, Inc. | 197,393 | 6,557,395 | |||
Lockheed Martin Corp. | 13,672 | 5,281,357 | |||
LyondellBasell Industries NV, Class A | 117,749 | 8,864,145 | |||
Magellan Midstream Partners LP | 115,321 | 5,478,901 | |||
Merck & Company, Inc. | 117,420 | 10,112,210 | |||
MetLife, Inc. | 220,709 | 13,414,693 | |||
Microsoft Corp. | 70,823 | 16,494,677 | |||
MPLX LP | 179,134 | 5,375,811 | |||
MSC Industrial Direct Company, Inc., Class A | 152,628 | 11,112,845 | |||
NextEra Energy, Inc. | 126,673 | 9,932,430 | |||
NiSource, Inc. | 198,667 | 5,004,422 | |||
Omnicom Group, Inc. | 111,889 | 7,059,077 | |||
Pfizer, Inc. | 180,529 | 7,899,949 | |||
Philip Morris International, Inc. | 191,312 | 15,880,809 | |||
Raytheon Technologies Corp. | 69,199 | 5,664,630 | |||
Realty Income Corp. | 179,135 | 10,425,657 | |||
Texas Instruments, Inc. | 62,502 | 9,674,060 | |||
The Coca-Cola Company | 101,844 | 5,705,301 | |||
The Home Depot, Inc. | 19,253 | 5,312,673 | |||
The PNC Financial Services Group, Inc. | 39,760 | 5,940,939 | |||
The Procter & Gamble Company | 37,111 | 4,685,264 | |||
Truist Financial Corp. | 220,696 | 9,609,104 | |||
U.S. Bancorp | 188,082 | 7,583,466 | |||
United Parcel Service, Inc., Class B | 42,939 | 6,936,366 | |||
Vail Resorts, Inc. | 25,225 | 5,439,519 | |||
Verizon Communications, Inc. | 184,714 | 7,013,591 | |||
Walmart, Inc. | 55,345 | 7,178,247 | |||
WEC Energy Group, Inc. | 58,317 | 5,215,289 | |||
Welltower, Inc. | 64,455 | 4,145,746 | |||
WP Carey, Inc. | 128,910 | 8,997,918 | |||
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 9 |
Yield (%) | Shares | Value | |||
Short-term investments 3.5% | $31,557,993 | ||||
(Cost $31,557,969) | |||||
Short-term funds 3.5% | 31,557,993 | ||||
John Hancock Collateral Trust (C) | 3.0556(D) | 3,158,326 | 31,557,993 |
Total investments (Cost $818,172,722) 100.7% | $915,046,454 | ||||
Other assets and liabilities, net (0.7%) | (6,705,683) | ||||
Total net assets 100.0% | $908,340,771 |
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) | All or a portion of this security is on loan as of 9-30-22. |
(B) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(C) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(D) | The rate shown is the annualized seven-day yield as of 9-30-22. |
10 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $786,614,753) including $30,299,418 of securities loaned | $883,488,461 |
Affiliated investments, at value (Cost $31,557,969) | 31,557,993 |
Total investments, at value (Cost $818,172,722) | 915,046,454 |
Cash | 19,224,487 |
Foreign currency, at value (Cost $251,388) | 242,578 |
Dividends and interest receivable | 4,748,631 |
Receivable for fund shares sold | 1,800,779 |
Receivable for investments sold | 648 |
Receivable for securities lending income | 22,658 |
Other assets | 92,167 |
Total assets | 941,178,402 |
Liabilities | |
Payable for fund shares repurchased | 986,857 |
Payable upon return of securities loaned | 31,580,234 |
Payable to affiliates | |
Investment management fees | 7,244 |
Accounting and legal services fees | 37,477 |
Transfer agent fees | 59,873 |
Distribution and service fees | 97 |
Trustees’ fees | 489 |
Other liabilities and accrued expenses | 165,360 |
Total liabilities | 32,837,631 |
Net assets | $908,340,771 |
Net assets consist of | |
Paid-in capital | $755,149,493 |
Total distributable earnings (loss) | 153,191,278 |
Net assets | $908,340,771 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 11 |
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 ($267,512,994 ÷ 28,385,171 shares)1 | $9.42 |
Class C ($13,145,355 ÷ 1,390,940 shares)1 | $9.45 |
Class I ($305,137,699 ÷ 32,238,097 shares) | $9.47 |
Class R2 ($455,405 ÷ 48,005 shares) | $9.49 |
Class R6 ($238,492,260 ÷ 25,245,681 shares) | $9.45 |
Class NAV ($83,597,058 ÷ 8,841,636 shares) | $9.45 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $9.92 |
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 Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $23,800,031 |
Interest | 28,196 |
Securities lending | 223,486 |
Less foreign taxes withheld | (1,591,437) |
Total investment income | 22,460,276 |
Expenses | |
Investment management fees | 4,161,208 |
Distribution and service fees | 549,144 |
Accounting and legal services fees | 70,039 |
Transfer agent fees | 401,785 |
Trustees’ fees | 10,306 |
Custodian fees | 127,344 |
State registration fees | 61,714 |
Printing and postage | 41,005 |
Professional fees | 38,147 |
Other | 33,755 |
Total expenses | 5,494,447 |
Less expense reductions | (835,521) |
Net expenses | 4,658,926 |
Net investment income | 17,801,350 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 19,291,961 |
Affiliated investments | (17,499) |
19,274,462 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (226,285,275) |
Affiliated investments | (560) |
(226,285,835) | |
Net realized and unrealized loss | (207,011,373) |
Decrease in net assets from operations | $(189,210,023) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 13 |
Six months ended 9-30-22 (unaudited) | Year ended 3-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $17,801,350 | $28,504,415 |
Net realized gain | 19,274,462 | 96,539,107 |
Change in net unrealized appreciation (depreciation) | (226,285,835) | (14,131,070) |
Increase (decrease) in net assets resulting from operations | (189,210,023) | 110,912,452 |
Distributions to shareholders | ||
From earnings | ||
Class A | (6,090,332) | (33,035,751) |
Class C | (270,242) | (2,168,246) |
Class I | (7,329,865) | (39,553,873) |
Class R2 | (10,042) | (66,434) |
Class R6 | (5,742,128) | (28,804,562) |
Class NAV | (2,067,844) | (12,045,777) |
Total distributions | (21,510,453) | (115,674,643) |
From fund share transactions | 6,960,606 | (21,146,260) |
Total decrease | (203,759,870) | (25,908,451) |
Net assets | ||
Beginning of period | 1,112,100,641 | 1,138,009,092 |
End of period | $908,340,771 | $1,112,100,641 |
14 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.64 | $11.76 | $8.62 | $11.03 | $11.14 | $11.31 | $10.78 |
Net investment income3 | 0.18 | 0.28 | 0.27 | 0.33 | 0.35 | 0.04 | 0.32 |
Net realized and unrealized gain (loss) on investments | (2.18) | 0.86 | 3.16 | (2.21) | 0.16 | (0.16) | 0.53 |
Total from investment operations | (2.00) | 1.14 | 3.43 | (1.88) | 0.51 | (0.12) | 0.85 |
Less distributions | |||||||
From net investment income | (0.22) | (0.28) | (0.29) | (0.33) | (0.35) | (0.05) | (0.32) |
From net realized gain | — | (0.98) | — | (0.20) | (0.27) | — | — |
Total distributions | (0.22) | (1.26) | (0.29) | (0.53) | (0.62) | (0.05) | (0.32) |
Net asset value, end of period | $9.42 | $11.64 | $11.76 | $8.62 | $11.03 | $11.14 | $11.31 |
Total return (%)4,5 | (17.34)6 | 10.05 | 40.22 | (17.96) | 4.86 | (1.03)6 | 7.87 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $268 | $327 | $318 | $257 | $334 | $348 | $355 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.297 | 1.28 | 1.29 | 1.29 | 1.28 | 1.307 | 1.27 |
Expenses including reductions | 1.097 | 1.09 | 1.09 | 1.09 | 1.09 | 1.097 | 1.09 |
Net investment income | 3.237 | 2.32 | 2.58 | 2.96 | 3.18 | 3.787 | 2.85 |
Portfolio turnover (%) | 12 | 24 | 30 | 33 | 16 | 2 | 19 |
1 | Six months ended 9-30-22. 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 | 15 |
CLASS C SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.67 | $11.79 | $8.64 | $11.05 | $11.16 | $11.31 | $10.78 |
Net investment income3 | 0.14 | 0.20 | 0.19 | 0.25 | 0.27 | 0.03 | 0.24 |
Net realized and unrealized gain (loss) on investments | (2.18) | 0.85 | 3.17 | (2.21) | 0.16 | (0.15) | 0.52 |
Total from investment operations | (2.04) | 1.05 | 3.36 | (1.96) | 0.43 | (0.12) | 0.76 |
Less distributions | |||||||
From net investment income | (0.18) | (0.19) | (0.21) | (0.25) | (0.27) | (0.03) | (0.23) |
From net realized gain | — | (0.98) | — | (0.20) | (0.27) | — | — |
Total distributions | (0.18) | (1.17) | (0.21) | (0.45) | (0.54) | (0.03) | (0.23) |
Net asset value, end of period | $9.45 | $11.67 | $11.79 | $8.64 | $11.05 | $11.16 | $11.31 |
Total return (%)4,5 | (17.64)6 | 9.19 | 39.22 | (18.59) | 4.06 | (1.05)6 | 6.98 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $13 | $20 | $29 | $44 | $75 | $107 | $110 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.997 | 1.98 | 1.99 | 1.99 | 1.97 | 2.007 | 1.97 |
Expenses including reductions | 1.847 | 1.84 | 1.84 | 1.84 | 1.84 | 1.847 | 1.84 |
Net investment income | 2.557 | 1.63 | 1.89 | 2.27 | 2.49 | 3.037 | 2.11 |
Portfolio turnover (%) | 12 | 24 | 30 | 33 | 16 | 2 | 19 |
1 | Six months ended 9-30-22. 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 I SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.69 | $11.81 | $8.65 | $11.07 | $11.18 | $11.35 | $10.82 |
Net investment income3 | 0.19 | 0.31 | 0.29 | 0.36 | 0.38 | 0.04 | 0.36 |
Net realized and unrealized gain (loss) on investments | (2.18) | 0.86 | 3.18 | (2.22) | 0.16 | (0.15) | 0.51 |
Total from investment operations | (1.99) | 1.17 | 3.47 | (1.86) | 0.54 | (0.11) | 0.87 |
Less distributions | |||||||
From net investment income | (0.23) | (0.31) | (0.31) | (0.36) | (0.38) | (0.06) | (0.34) |
From net realized gain | — | (0.98) | — | (0.20) | (0.27) | — | — |
Total distributions | (0.23) | (1.29) | (0.31) | (0.56) | (0.65) | (0.06) | (0.34) |
Net asset value, end of period | $9.47 | $11.69 | $11.81 | $8.65 | $11.07 | $11.18 | $11.35 |
Total return (%)4 | (17.16)5 | 10.28 | 40.65 | (17.77) | 5.10 | (0.96)5 | 8.10 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $305 | $377 | $396 | $605 | $815 | $881 | $894 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.996 | 0.98 | 0.99 | 0.99 | 0.99 | 1.006 | 0.97 |
Expenses including reductions | 0.846 | 0.84 | 0.84 | 0.84 | 0.84 | 0.846 | 0.84 |
Net investment income | 3.496 | 2.59 | 2.78 | 3.22 | 3.44 | 4.036 | 3.12 |
Portfolio turnover (%) | 12 | 24 | 30 | 33 | 16 | 2 | 19 |
1 | Six months ended 9-30-22. 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 | 17 |
CLASS R2 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.71 | $11.83 | $8.66 | $11.08 | $11.19 | $11.35 | $10.82 |
Net investment income3 | 0.17 | 0.27 | 0.25 | 0.32 | 0.33 | 0.03 | 0.30 |
Net realized and unrealized gain (loss) on investments | (2.18) | 0.85 | 3.19 | (2.22) | 0.16 | (0.14) | 0.53 |
Total from investment operations | (2.01) | 1.12 | 3.44 | (1.90) | 0.49 | (0.11) | 0.83 |
Less distributions | |||||||
From net investment income | (0.21) | (0.26) | (0.27) | (0.32) | (0.33) | (0.05) | (0.30) |
From net realized gain | — | (0.98) | — | (0.20) | (0.27) | — | — |
Total distributions | (0.21) | (1.24) | (0.27) | (0.52) | (0.60) | (0.05) | (0.30) |
Net asset value, end of period | $9.49 | $11.71 | $11.83 | $8.66 | $11.08 | $11.19 | $11.35 |
Total return (%)4 | (17.31)5 | 9.82 | 40.19 | (18.10) | 4.68 | (0.98)5 | 7.68 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $—6 | $1 | $1 | $1 | $1 | $1 | $1 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.337 | 1.34 | 1.35 | 1.34 | 1.36 | 1.387 | 1.37 |
Expenses including reductions | 1.207 | 1.21 | 1.23 | 1.22 | 1.22 | 1.247 | 1.24 |
Net investment income | 3.127 | 2.20 | 2.45 | 2.86 | 3.02 | 3.627 | 2.62 |
Portfolio turnover (%) | 12 | 24 | 30 | 33 | 16 | 2 | 19 |
1 | Six months ended 9-30-22. 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 | Less than $500,000. |
7 | Annualized. |
18 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.67 | $11.79 | $8.64 | $11.06 | $11.16 | $11.34 | $10.81 |
Net investment income3 | 0.19 | 0.32 | 0.30 | 0.37 | 0.39 | 0.04 | 0.31 |
Net realized and unrealized gain (loss) on investments | (2.17) | 0.86 | 3.17 | (2.22) | 0.17 | (0.16) | 0.57 |
Total from investment operations | (1.98) | 1.18 | 3.47 | (1.85) | 0.56 | (0.12) | 0.88 |
Less distributions | |||||||
From net investment income | (0.24) | (0.32) | (0.32) | (0.37) | (0.39) | (0.06) | (0.35) |
From net realized gain | — | (0.98) | — | (0.20) | (0.27) | — | — |
Total distributions | (0.24) | (1.30) | (0.32) | (0.57) | (0.66) | (0.06) | (0.35) |
Net asset value, end of period | $9.45 | $11.67 | $11.79 | $8.64 | $11.06 | $11.16 | $11.34 |
Total return (%)4 | (17.14)5 | 10.40 | 40.72 | (17.69) | 5.31 | (1.03)5 | 8.22 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $238 | $278 | $275 | $245 | $351 | $477 | $483 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.886 | 0.88 | 0.88 | 0.88 | 0.88 | 0.896 | 0.87 |
Expenses including reductions | 0.746 | 0.74 | 0.74 | 0.74 | 0.74 | 0.746 | 0.74 |
Net investment income | 3.566 | 2.68 | 2.94 | 3.34 | 3.57 | 4.136 | 2.61 |
Portfolio turnover (%) | 12 | 24 | 30 | 33 | 16 | 2 | 19 |
1 | Six months ended 9-30-22. 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 NAV SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $11.68 | $11.80 | $8.64 | $11.06 | $11.17 | $11.34 | $10.81 |
Net investment income3 | 0.20 | 0.32 | 0.29 | 0.37 | 0.39 | 0.04 | 0.36 |
Net realized and unrealized gain (loss) on investments | (2.19) | 0.86 | 3.19 | (2.22) | 0.16 | (0.15) | 0.52 |
Total from investment operations | (1.99) | 1.18 | 3.48 | (1.85) | 0.55 | (0.11) | 0.88 |
Less distributions | |||||||
From net investment income | (0.24) | (0.32) | (0.32) | (0.37) | (0.39) | (0.06) | (0.35) |
From net realized gain | — | (0.98) | — | (0.20) | (0.27) | — | — |
Total distributions | (0.24) | (1.30) | (0.32) | (0.57) | (0.66) | (0.06) | (0.35) |
Net asset value, end of period | $9.45 | $11.68 | $11.80 | $8.64 | $11.06 | $11.17 | $11.34 |
Total return (%)4 | (17.21)5 | 10.40 | 40.83 | (17.77) | 5.30 | (0.94)5 | 8.11 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $84 | $109 | $120 | $325 | $458 | $511 | $514 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.876 | 0.87 | 0.87 | 0.87 | 0.87 | 0.886 | 0.86 |
Expenses including reductions | 0.746 | 0.74 | 0.74 | 0.74 | 0.74 | 0.746 | 0.74 |
Net investment income | 3.596 | 2.68 | 2.87 | 3.32 | 3.54 | 4.136 | 3.19 |
Portfolio turnover (%) | 12 | 24 | 30 | 33 | 16 | 2 | 19 |
1 | Six months ended 9-30-22. 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 |
SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 21 |
Total value at 9-30-22 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Canada | $68,605,819 | $68,605,819 | — | — |
France | 50,636,257 | — | $50,636,257 | — |
Germany | 58,835,840 | — | 58,835,840 | — |
Hong Kong | 4,908,143 | — | 4,908,143 | — |
Ireland | 9,372,976 | 9,372,976 | — | — |
Italy | 7,927,309 | — | 7,927,309 | — |
Japan | 21,984,328 | — | 21,984,328 | — |
Norway | 7,125,511 | — | 7,125,511 | — |
South Korea | 13,018,643 | — | 13,018,643 | — |
Switzerland | 25,571,956 | — | 25,571,956 | — |
Taiwan | 8,130,256 | 8,130,256 | — | — |
United Kingdom | 73,563,179 | 31,390,396 | 42,172,783 | — |
United States | 533,808,244 | 533,808,244 | — | — |
Short-term investments | 31,557,993 | 31,557,993 | — | — |
Total investments in securities | $915,046,454 | $682,865,684 | $232,180,770 | — |
22 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT |
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 |
Class | Expense reduction |
Class A | $305,736 |
Class C | 12,815 |
Class I | 259,969 |
Class R2 | 370 |
Class | Expense reduction |
Class R6 | $191,553 |
Class NAV | 65,078 |
Total | $835,521 |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.30% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
26 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class A | $461,263 | $177,341 |
Class C | 86,646 | 10,009 |
Class I | — | 201,756 |
Class R2 | 1,235 | 26 |
Class R6 | — | 12,653 |
Total | $549,144 | $401,785 |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,720,166 | $18,685,802 | 3,015,150 | $36,401,031 |
Distributions reinvested | 581,898 | 5,935,061 | 2,824,661 | 32,215,794 |
Repurchased | (1,981,550) | (21,427,891) | (4,770,589) | (57,329,434) |
Net increase | 320,514 | $3,192,972 | 1,069,222 | $11,287,391 |
Class C shares | ||||
Sold | 42,454 | $455,510 | 83,473 | $1,015,839 |
Distributions reinvested | 26,264 | 270,083 | 189,547 | 2,166,335 |
Repurchased | (429,955) | (4,671,676) | (997,554) | (12,084,573) |
Net decrease | (361,237) | $(3,946,083) | (724,534) | $(8,902,399) |
Class I shares | ||||
Sold | 2,663,474 | $28,570,173 | 3,698,341 | $44,567,858 |
Distributions reinvested | 708,486 | 7,251,745 | 3,406,422 | 39,064,398 |
Repurchased | (3,393,015) | (36,792,114) | (8,399,789) | (101,694,539) |
Net decrease | (21,055) | $(970,196) | (1,295,026) | $(18,062,283) |
SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 27 |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class R2 shares | ||||
Sold | 4,036 | $43,889 | 3,669 | $44,542 |
Distributions reinvested | 965 | 9,919 | 5,730 | 65,704 |
Repurchased | (7,257) | (77,174) | (12,195) | (145,153) |
Net decrease | (2,256) | $(23,366) | (2,796) | $(34,907) |
Class R6 shares | ||||
Sold | 3,407,998 | $36,871,011 | 3,409,256 | $41,045,942 |
Distributions reinvested | 562,190 | 5,740,936 | 2,515,129 | 28,795,195 |
Repurchased | (2,555,632) | (27,758,413) | (5,386,820) | (64,974,727) |
Net increase | 1,414,556 | $14,853,534 | 537,565 | $4,866,410 |
Class NAV shares | ||||
Sold | 58,016 | $592,321 | 204,103 | $2,488,455 |
Distributions reinvested | 202,250 | 2,067,844 | 1,051,033 | 12,045,777 |
Repurchased | (767,358) | (8,806,420) | (2,055,384) | (24,834,704) |
Net decrease | (507,092) | $(6,146,255) | (800,248) | $(10,300,472) |
Total net increase (decrease) | 843,430 | $6,960,606 | (1,215,817) | $(21,146,260) |
28 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT |
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* | 3,158,326 | $7,071,602 | $190,750,066 | $(166,245,616) | $(17,499) | $(560) | $223,486 | — | $31,557,993 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 29 |
Total votes for the nominee | Total votes withheld from the nominee | |
Independent Trustees | ||
James R. Boyle | 1,409,775,493.514 | 15,295,731.365 |
Frances G. Rathke | 1,409,882,732.809 | 15,188,492.070 |
Noni L. Ellison | 1,411,065,236.157 | 14,005,988.722 |
Dean Garfield | 1,409,601,084.314 | 15,470,140.565 |
Patricia Lizarraga | 1,410,809,328.457 | 14,261,896.422 |
Non-Independent Trustees | ||
Andrew G. Arnott | 1,410,004,927.170 | 15,066,297.709 |
Marianne Harrison | 1,410,636,974.305 | 14,434,250.574 |
Paul Lorentz | 1,409,775,645.079 | 15,295,579.800 |
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†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
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
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Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 1 |
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2 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
![](https://capedge.com/proxy/N-CSRS/0001683863-22-007137/img2dbb00a77.gif)
TOP 10 HOLDINGS AS OF 9/30/2022 (% of net assets) | |
Taiwan Semiconductor Manufacturing Company, Ltd. | 4.5 |
Tencent Holdings, Ltd. | 3.7 |
Roche Holding AG | 3.6 |
AstraZeneca PLC | 2.8 |
ITC, Ltd. | 2.4 |
Sony Group Corp. | 2.4 |
Bharti Airtel, Ltd. | 2.3 |
Li Ning Company, Ltd. | 2.1 |
London Stock Exchange Group PLC | 2.0 |
Airbus SE | 2.0 |
TOTAL | 27.8 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 3 |
TOP 10 COUNTRIES AS OF 9/30/2022 (% of net assets) | |
China | 15.4 |
France | 13.9 |
United Kingdom | 12.2 |
Switzerland | 8.0 |
Canada | 7.6 |
Japan | 6.3 |
India | 6.1 |
Taiwan | 4.5 |
Ireland | 4.4 |
Australia | 2.6 |
TOTAL | 81.0 |
Cash and cash equivalents are not included. |
4 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
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SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 5 |
Account value on 4-1-2022 | Ending value on 9-30-2022 | Expenses paid during period ended 9-30-20221 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $754.30 | $5.67 | 1.29% |
Hypothetical example | 1,000.00 | 1,018.60 | 6.53 | 1.29% | |
Class C | Actual expenses/actual returns | 1,000.00 | 751.60 | 8.74 | 1.99% |
Hypothetical example | 1,000.00 | 1,015.10 | 10.05 | 1.99% | |
Class I | Actual expenses/actual returns | 1,000.00 | 755.40 | 4.36 | 0.99% |
Hypothetical example | 1,000.00 | 1,020.10 | 5.01 | 0.99% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 753.70 | 6.02 | 1.37% |
Hypothetical example | 1,000.00 | 1,018.20 | 6.93 | 1.37% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 754.30 | 4.97 | 1.13% |
Hypothetical example | 1,000.00 | 1,019.40 | 5.72 | 1.13% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 755.40 | 3.87 | 0.88% |
Hypothetical example | 1,000.00 | 1,020.70 | 4.46 | 0.88% | |
Class 1 | Actual expenses/actual returns | 1,000.00 | 755.30 | 4.05 | 0.92% |
Hypothetical example | 1,000.00 | 1,020.50 | 4.66 | 0.92% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 755.70 | 3.83 | 0.87% |
Hypothetical example | 1,000.00 | 1,020.70 | 4.41 | 0.87% |
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). |
6 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 98.0% | $7,610,846,964 | ||||
(Cost $8,574,711,635) | |||||
Australia 2.6% | 199,852,296 | ||||
Aristocrat Leisure, Ltd. | 5,416,556 | 114,217,091 | |||
Goodman Group | 8,472,990 | 85,635,205 | |||
Belgium 1.1% | 86,696,956 | ||||
UCB SA | 1,249,279 | 86,696,956 | |||
Brazil 0.9% | 70,898,913 | ||||
Telefonica Brasil SA, ADR (A) | 9,428,047 | 70,898,913 | |||
Canada 7.6% | 592,410,139 | ||||
ARC Resources, Ltd. | 9,425,165 | 113,196,140 | |||
Brookfield Asset Management, Inc., Class A | 3,297,134 | 134,883,297 | |||
Constellation Software, Inc. | 69,918 | 97,287,935 | |||
Dollarama, Inc. | 2,069,801 | 118,822,325 | |||
Royal Bank of Canada | 1,424,116 | 128,220,442 | |||
China 15.4% | 1,197,073,880 | ||||
Baidu, Inc., ADR (B) | 675,621 | 79,378,711 | |||
East Money Information Company, Ltd., Class A | 39,995,962 | 98,915,371 | |||
ENN Energy Holdings, Ltd. | 8,346,499 | 111,285,386 | |||
Focus Media Information Technology Company, Ltd., Class A | 116,108,102 | 90,117,146 | |||
H World Group, Ltd., ADR | 2,529,445 | 84,837,585 | |||
KE Holdings, Inc., ADR (B) | 7,441,237 | 130,370,472 | |||
Li Ning Company, Ltd. | 22,061,196 | 167,397,789 | |||
Tencent Holdings, Ltd. | 8,590,569 | 290,157,799 | |||
ZTO Express Cayman, Inc., ADR | 6,018,045 | 144,613,621 | |||
France 13.9% | 1,080,901,164 | ||||
Airbus SE | 1,766,761 | 152,294,884 | |||
AXA SA | 3,722,993 | 81,283,488 | |||
Bureau Veritas SA | 3,732,678 | 83,527,839 | |||
Capgemini SE | 812,651 | 130,105,374 | |||
Edenred | 2,615,479 | 120,496,628 | |||
Publicis Groupe SA | 1,855,332 | 87,910,290 | |||
Safran SA | 1,447,003 | 131,661,949 | |||
Thales SA | 818,555 | 90,199,490 | |||
Vinci SA | 1,384,625 | 111,961,424 | |||
Worldline SA (B)(C) | 2,313,940 | 91,459,798 | |||
Germany 2.4% | 187,379,147 | ||||
Brenntag SE | 1,711,248 | 103,447,958 | |||
Rheinmetall AG | 545,125 | 83,931,189 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 7 |
Shares | Value | ||||
Hong Kong 1.7% | $135,067,224 | ||||
CK Asset Holdings, Ltd. | 22,498,500 | 135,067,224 | |||
India 6.1% | 476,437,207 | ||||
Axis Bank, Ltd. | 11,523,242 | 103,427,861 | |||
Bharti Airtel, Ltd. | 18,580,095 | 181,774,793 | |||
Bharti Airtel, Ltd., Partly Paid Up Shares | 1,078,696 | 5,313,449 | |||
ITC, Ltd. | 45,745,664 | 185,921,104 | |||
Indonesia 2.5% | 191,253,649 | ||||
Bank Rakyat Indonesia Persero Tbk PT | 346,341,100 | 101,364,572 | |||
Telkom Indonesia Persero Tbk PT | 308,424,500 | 89,889,077 | |||
Ireland 4.4% | 342,282,628 | ||||
Accenture PLC, Class A | 376,769 | 96,942,664 | |||
AerCap Holdings NV (B) | 2,210,824 | 93,584,180 | |||
ICON PLC (B) | 825,747 | 151,755,784 | |||
Japan 6.3% | 486,015,563 | ||||
Astellas Pharma, Inc. | 6,871,300 | 91,026,158 | |||
Isuzu Motors, Ltd. | 7,067,495 | 78,148,419 | |||
KDDI Corp. | 4,593,500 | 134,296,830 | |||
Sony Group Corp. | 2,833,900 | 182,544,156 | |||
Netherlands 1.2% | 96,130,054 | ||||
NXP Semiconductors NV | 651,685 | 96,130,054 | |||
Portugal 1.7% | 133,586,241 | ||||
Jeronimo Martins SGPS SA | 7,173,051 | 133,586,241 | |||
Singapore 1.2% | 96,217,653 | ||||
United Overseas Bank, Ltd. | 5,312,200 | 96,217,653 | |||
Spain 1.2% | 94,110,614 | ||||
Industria de Diseno Textil SA | 4,560,383 | 94,110,614 | |||
Sweden 1.0% | 74,233,601 | ||||
Volvo AB, B Shares | 5,245,831 | 74,233,601 | |||
Switzerland 8.0% | 617,346,536 | ||||
Glencore PLC | 23,046,898 | 121,111,300 | |||
Novartis AG | 1,697,733 | 129,430,055 | |||
Roche Holding AG | 852,318 | 277,457,442 | |||
UBS Group AG | 6,158,530 | 89,347,739 | |||
Taiwan 4.5% | 345,230,075 | ||||
Taiwan Semiconductor Manufacturing Company, Ltd. | 26,044,501 | 345,230,075 | |||
United Kingdom 12.2% | 946,791,135 | ||||
Allfunds Group PLC | 8,830,331 | 64,533,099 | |||
Anglo American PLC | 3,421,762 | 102,740,757 |
8 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
United Kingdom (continued) | |||||
AstraZeneca PLC | 1,949,688 | $214,327,227 | |||
BAE Systems PLC | 9,688,924 | 85,130,610 | |||
British American Tobacco PLC | 4,144,558 | 148,612,963 | |||
CNH Industrial NV | 8,095,451 | 90,606,013 | |||
Intermediate Capital Group PLC | 490,436 | 5,290,559 | |||
London Stock Exchange Group PLC | 1,879,438 | 158,715,764 | |||
Standard Chartered PLC | 12,284,564 | 76,834,143 | |||
United States 2.1% | 160,932,289 | ||||
Aon PLC, Class A | 302,001 | 80,897,008 | |||
Schlumberger NV | 2,229,395 | 80,035,281 | |||
Preferred securities 1.2% | $97,018,808 | ||||
(Cost $96,901,122) | |||||
Brazil 1.2% | 97,018,808 | ||||
Banco Bradesco SA | 26,378,700 | 97,018,808 | |||
Yield (%) | Shares | Value | |||
Short-term investments 0.6% | $42,248,946 | ||||
(Cost $42,250,276) | |||||
Short-term funds 0.2% | 11,948,946 | ||||
John Hancock Collateral Trust (D) | 3.0556(E) | 1,195,851 | 11,948,946 |
Par value^ | Value | ||||
Repurchase agreement 0.4% | 30,300,000 | ||||
Bank of America Corp. Tri-Party Repurchase Agreement dated 9-30-22 at 3.050% to be repurchased at $10,302,618 on 10-3-22, collateralized by $10,817,111 Government National Mortgage Association, 4.500% due 7-20-52 (valued at $10,506,000) | 10,300,000 | 10,300,000 | |||
Societe Generale SA Tri-Party Repurchase Agreement dated 9-30-22 at 2.980% to be repurchased at $20,004,967 on 10-3-22, collateralized by $23,075,600 U.S. Treasury Notes, 1.125% due 2-28-27 (valued at $20,400,061) | 20,000,000 | 20,000,000 |
Total investments (Cost $8,713,863,033) 99.8% | $7,750,114,718 | ||||
Other assets and liabilities, net 0.2% | 17,130,215 | ||||
Total net assets 100.0% | $7,767,244,933 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
(A) | All or a portion of this security is on loan as of 9-30-22. |
(B) | Non-income producing security. |
(C) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 9 |
(D) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(E) | The rate shown is the annualized seven-day yield as of 9-30-22. |
10 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $8,701,912,757) including $11,415,750 of securities loaned | $7,738,165,772 |
Affiliated investments, at value (Cost $11,950,276) | 11,948,946 |
Total investments, at value (Cost $8,713,863,033) | 7,750,114,718 |
Cash | 11,818,057 |
Foreign currency, at value (Cost $4,393,818) | 4,395,341 |
Dividends and interest receivable | 40,481,420 |
Receivable for fund shares sold | 11,766,376 |
Receivable for investments sold | 11,833,019 |
Receivable for securities lending income | 26,348 |
Other assets | 403,019 |
Total assets | 7,830,838,298 |
Liabilities | |
Foreign capital gains tax payable | 10,156,361 |
Payable for investments purchased | 9,434,607 |
Payable for fund shares repurchased | 29,152,216 |
Payable upon return of securities loaned | 12,033,630 |
Payable to affiliates | |
Accounting and legal services fees | 305,227 |
Transfer agent fees | 549,621 |
Distribution and service fees | 6,920 |
Trustees’ fees | 8,502 |
Other liabilities and accrued expenses | 1,946,281 |
Total liabilities | 63,593,365 |
Net assets | $7,767,244,933 |
Net assets consist of | |
Paid-in capital | $8,868,613,430 |
Total distributable earnings (loss) | (1,101,368,497) |
Net assets | $7,767,244,933 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 11 |
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 ($466,303,863 ÷ 20,619,343 shares)1 | $22.61 |
Class C ($106,360,097 ÷ 4,895,711 shares)1 | $21.73 |
Class I ($4,732,097,249 ÷ 208,215,182 shares) | $22.73 |
Class R2 ($29,792,191 ÷ 1,317,496 shares) | $22.61 |
Class R4 ($6,057,460 ÷ 266,945 shares) | $22.69 |
Class R6 ($1,696,214,972 ÷ 74,510,406 shares) | $22.76 |
Class 1 ($51,315,366 ÷ 2,258,455 shares) | $22.72 |
Class NAV ($679,103,735 ÷ 29,879,759 shares) | $22.73 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $23.80 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
12 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $166,929,678 |
Interest | 393,407 |
Securities lending | 629,809 |
Less foreign taxes withheld | (16,746,337) |
Total investment income | 151,206,557 |
Expenses | |
Investment management fees | 38,855,355 |
Distribution and service fees | 1,654,782 |
Accounting and legal services fees | 630,982 |
Transfer agent fees | 3,988,054 |
Trustees’ fees | 98,281 |
Custodian fees | 1,940,754 |
State registration fees | 142,076 |
Printing and postage | 253,305 |
Professional fees | 191,990 |
Other | 227,781 |
Total expenses | 47,983,360 |
Less expense reductions | (375,573) |
Net expenses | 47,607,787 |
Net investment income | 103,598,770 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | (619,847,024) |
Affiliated investments | (83,354) |
(619,930,378) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (2,152,579,884) |
Affiliated investments | (1,330) |
(2,152,581,214) | |
Net realized and unrealized loss | (2,772,511,592) |
Decrease in net assets from operations | $(2,668,912,822) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 13 |
Six months ended 9-30-22 (unaudited) | Year ended 3-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $103,598,770 | $88,490,459 |
Net realized gain (loss) | (619,930,378) | 1,456,088,023 |
Change in net unrealized appreciation (depreciation) | (2,152,581,214) | (2,602,084,283) |
Decrease in net assets resulting from operations | (2,668,912,822) | (1,057,505,801) |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (98,141,315) |
Class C | — | (27,915,106) |
Class I | — | (1,189,339,940) |
Class R2 | — | (6,056,297) |
Class R4 | — | (6,621,487) |
Class R6 | — | (365,182,359) |
Class 1 | — | (11,223,078) |
Class NAV | — | (132,920,326) |
Total distributions | — | (1,837,399,908) |
From fund share transactions | (1,084,601,254) | 1,666,677,236 |
Total decrease | (3,753,514,076) | (1,228,228,473) |
Net assets | ||
Beginning of period | 11,520,759,009 | 12,748,987,482 |
End of period | $7,767,244,933 | $11,520,759,009 |
14 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $29.99 | $37.88 | $24.58 | $26.79 | $28.52 | $28.43 | $21.69 |
Net investment income (loss)3 | 0.244 | 0.14 | (0.04) | 0.13 | 0.19 | 0.02 | 0.11 |
Net realized and unrealized gain (loss) on investments | (7.62) | (2.80) | 13.34 | (2.22) | (1.31) | 0.07 | 6.69 |
Total from investment operations | (7.38) | (2.66) | 13.30 | (2.09) | (1.12) | 0.09 | 6.80 |
Less distributions | |||||||
From net investment income | — | (0.17) | — | (0.12) | (0.15) | — | (0.06) |
From net realized gain | — | (5.06) | — | — | (0.46) | — | — |
Total distributions | — | (5.23) | — | (0.12) | (0.61) | — | (0.06) |
Net asset value, end of period | $22.61 | $29.99 | $37.88 | $24.58 | $26.79 | $28.52 | $28.43 |
Total return (%)5,6 | (24.57)7 | (8.46) | 54.11 | (7.87) | (3.69) | 0.327 | 31.38 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $466 | $642 | $670 | $456 | $609 | $827 | $803 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.308 | 1.29 | 1.29 | 1.30 | 1.28 | 1.298 | 1.29 |
Expenses including reductions | 1.298 | 1.28 | 1.28 | 1.29 | 1.28 | 1.288 | 1.28 |
Net investment income (loss) | 1.854,8 | 0.37 | (0.14) | 0.45 | 0.72 | 0.698 | 0.41 |
Portfolio turnover (%) | 39 | 78 | 78 | 80 | 98 | 4 | 65 |
1 | Six months ended 9-30-22. 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 | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $28.91 | $36.78 | $24.03 | $26.27 | $28.00 | $27.93 | $21.40 |
Net investment income (loss)3 | 0.154 | (0.12) | (0.26) | (0.06) | —5 | —5 | (0.09) |
Net realized and unrealized gain (loss) on investments | (7.33) | (2.69) | 13.01 | (2.18) | (1.27) | 0.07 | 6.62 |
Total from investment operations | (7.18) | (2.81) | 12.75 | (2.24) | (1.27) | 0.07 | 6.53 |
Less distributions | |||||||
From net realized gain | — | (5.06) | — | — | (0.46) | — | — |
Total distributions | — | (5.06) | — | — | (0.46) | — | — |
Net asset value, end of period | $21.73 | $28.91 | $36.78 | $24.03 | $26.27 | $28.00 | $27.93 |
Total return (%)6,7 | (24.84)8 | (9.10) | 53.06 | (8.53) | (4.37) | 0.258 | 30.51 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $106 | $171 | $224 | $181 | $263 | $349 | $333 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 2.009 | 1.99 | 1.99 | 2.00 | 1.98 | 1.999 | 1.99 |
Expenses including reductions | 1.999 | 1.98 | 1.98 | 1.99 | 1.98 | 1.989 | 1.98 |
Net investment income (loss) | 1.184,9 | (0.32) | (0.81) | (0.24) | (0.01) | (0.01)9 | (0.33) |
Portfolio turnover (%) | 39 | 78 | 78 | 80 | 98 | 4 | 65 |
1 | Six months ended 9-30-22. 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 | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $30.09 | $38.00 | $24.63 | $26.84 | $28.59 | $28.49 | $21.72 |
Net investment income3 | 0.294 | 0.25 | 0.05 | 0.21 | 0.24 | 0.02 | 0.18 |
Net realized and unrealized gain (loss) on investments | (7.65) | (2.81) | 13.40 | (2.22) | (1.30) | 0.08 | 6.72 |
Total from investment operations | (7.36) | (2.56) | 13.45 | (2.01) | (1.06) | 0.10 | 6.90 |
Less distributions | |||||||
From net investment income | — | (0.29) | (0.08) | (0.20) | (0.23) | — | (0.13) |
From net realized gain | — | (5.06) | — | — | (0.46) | — | — |
Total distributions | — | (5.35) | (0.08) | (0.20) | (0.69) | — | (0.13) |
Net asset value, end of period | $22.73 | $30.09 | $38.00 | $24.63 | $26.84 | $28.59 | $28.49 |
Total return (%)5 | (24.46)6 | (8.19) | 54.62 | (7.61) | (3.45) | 0.356 | 31.82 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $4,732 | $7,376 | $8,176 | $4,677 | $5,576 | $5,631 | $5,424 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.007 | 0.99 | 0.99 | 1.00 | 1.00 | 1.007 | 0.99 |
Expenses including reductions | 0.997 | 0.98 | 0.98 | 0.99 | 0.99 | 0.997 | 0.98 |
Net investment income | 2.174,7 | 0.66 | 0.14 | 0.74 | 0.89 | 0.987 | 0.70 |
Portfolio turnover (%) | 39 | 78 | 78 | 80 | 98 | 4 | 65 |
1 | Six months ended 9-30-22. 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 | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $30.00 | $37.89 | $24.60 | $26.82 | $28.55 | $28.45 | $21.71 |
Net investment income (loss)3 | 0.234 | 0.11 | (0.08) | 0.12 | 0.15 | 0.02 | 0.13 |
Net realized and unrealized gain (loss) on investments | (7.62) | (2.81) | 13.37 | (2.25) | (1.30) | 0.08 | 6.65 |
Total from investment operations | (7.39) | (2.70) | 13.29 | (2.13) | (1.15) | 0.10 | 6.78 |
Less distributions | |||||||
From net investment income | — | (0.13) | — | (0.09) | (0.12) | — | (0.04) |
From net realized gain | — | (5.06) | — | — | (0.46) | — | — |
Total distributions | — | (5.19) | — | (0.09) | (0.58) | — | (0.04) |
Net asset value, end of period | $22.61 | $30.00 | $37.89 | $24.60 | $26.82 | $28.55 | $28.45 |
Total return (%)5 | (24.63)6 | (8.55) | 54.02 | (7.98) | (3.81) | 0.356 | 31.23 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $30 | $38 | $50 | $30 | $43 | $43 | $37 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.387 | 1.38 | 1.38 | 1.39 | 1.38 | 1.327 | 1.40 |
Expenses including reductions | 1.377 | 1.37 | 1.37 | 1.38 | 1.37 | 1.317 | 1.39 |
Net investment income (loss) | 1.744,7 | 0.29 | (0.23) | 0.41 | 0.54 | 0.717 | 0.49 |
Portfolio turnover (%) | 39 | 78 | 78 | 80 | 98 | 4 | 65 |
1 | Six months ended 9-30-22. 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 | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $30.08 | $37.98 | $24.62 | $26.84 | $28.57 | $28.48 | $21.72 |
Net investment income (loss)3 | 0.324 | 0.20 | (0.05) | 0.16 | 0.22 | 0.02 | 0.17 |
Net realized and unrealized gain (loss) on investments | (7.71) | (2.81) | 13.46 | (2.22) | (1.30) | 0.07 | 6.69 |
Total from investment operations | (7.39) | (2.61) | 13.41 | (2.06) | (1.08) | 0.09 | 6.86 |
Less distributions | |||||||
From net investment income | — | (0.23) | (0.05) | (0.16) | (0.19) | — | (0.10) |
From net realized gain | — | (5.06) | — | — | (0.46) | — | — |
Total distributions | — | (5.29) | (0.05) | (0.16) | (0.65) | — | (0.10) |
Net asset value, end of period | $22.69 | $30.08 | $37.98 | $24.62 | $26.84 | $28.57 | $28.48 |
Total return (%)5 | (24.57)6 | (8.31) | 54.46 | (7.77) | (3.53) | 0.326 | 31.60 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $6 | $45 | $49 | $7 | $8 | $8 | $9 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 1.247 | 1.22 | 1.21 | 1.24 | 1.24 | 1.257 | 1.24 |
Expenses including reductions | 1.137 | 1.11 | 1.10 | 1.13 | 1.13 | 1.147 | 1.13 |
Net investment income (loss) | 2.304,7 | 0.54 | (0.13) | 0.58 | 0.80 | 0.837 | 0.64 |
Portfolio turnover (%) | 39 | 78 | 78 | 80 | 98 | 4 | 65 |
1 | Six months ended 9-30-22. 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 | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $30.13 | $38.04 | $24.65 | $26.86 | $28.61 | $28.50 | $21.73 |
Net investment income3 | 0.304 | 0.29 | 0.08 | 0.24 | 0.27 | 0.03 | 0.05 |
Net realized and unrealized gain (loss) on investments | (7.67) | (2.81) | 13.42 | (2.22) | (1.30) | 0.08 | 6.88 |
Total from investment operations | (7.37) | (2.52) | 13.50 | (1.98) | (1.03) | 0.11 | 6.93 |
Less distributions | |||||||
From net investment income | — | (0.33) | (0.11) | (0.23) | (0.26) | — | (0.16) |
From net realized gain | — | (5.06) | — | — | (0.46) | — | — |
Total distributions | — | (5.39) | (0.11) | (0.23) | (0.72) | — | (0.16) |
Net asset value, end of period | $22.76 | $30.13 | $38.04 | $24.65 | $26.86 | $28.61 | $28.50 |
Total return (%)5 | (24.46)6 | (8.09) | 54.79 | (7.52) | (3.32) | 0.396 | 31.91 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $1,696 | $2,333 | $2,441 | $1,434 | $1,836 | $1,795 | $1,702 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.897 | 0.88 | 0.88 | 0.89 | 0.89 | 0.897 | 0.90 |
Expenses including reductions | 0.887 | 0.87 | 0.88 | 0.88 | 0.88 | 0.887 | 0.89 |
Net investment income | 2.244,7 | 0.78 | 0.25 | 0.85 | 1.01 | 1.097 | 0.16 |
Portfolio turnover (%) | 39 | 78 | 78 | 80 | 98 | 4 | 65 |
1 | Six months ended 9-30-22. 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 | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $30.08 | $37.98 | $24.62 | $26.83 | $28.57 | $28.47 | $21.71 |
Net investment income3 | 0.294 | 0.28 | 0.08 | 0.23 | 0.28 | 0.03 | 0.21 |
Net realized and unrealized gain (loss) on investments | (7.65) | (2.80) | 13.38 | (2.22) | (1.30) | 0.07 | 6.70 |
Total from investment operations | (7.36) | (2.52) | 13.46 | (1.99) | (1.02) | 0.10 | 6.91 |
Less distributions | |||||||
From net investment income | — | (0.32) | (0.10) | (0.22) | (0.26) | — | (0.15) |
From net realized gain | — | (5.06) | — | — | (0.46) | — | — |
Total distributions | — | (5.38) | (0.10) | (0.22) | (0.72) | — | (0.15) |
Net asset value, end of period | $22.72 | $30.08 | $37.98 | $24.62 | $26.83 | $28.57 | $28.47 |
Total return (%)5 | (24.47)6 | (8.10) | 54.68 | (7.55) | (3.32) | 0.356 | 31.86 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $51 | $71 | $83 | $59 | $78 | $93 | $91 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.937 | 0.92 | 0.92 | 0.93 | 0.92 | 0.927 | 0.93 |
Expenses including reductions | 0.927 | 0.91 | 0.91 | 0.92 | 0.92 | 0.927 | 0.92 |
Net investment income | 2.204,7 | 0.74 | 0.23 | 0.82 | 1.05 | 1.067 | 0.79 |
Portfolio turnover (%) | 39 | 78 | 78 | 80 | 98 | 4 | 65 |
1 | Six months ended 9-30-22. 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 | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-182 | 2-28-18 |
Per share operating performance | |||||||
Net asset value, beginning of period | $30.08 | $37.99 | $24.62 | $26.82 | $28.57 | $28.47 | $21.71 |
Net investment income3 | 0.304 | 0.30 | 0.10 | 0.24 | 0.29 | 0.03 | 0.23 |
Net realized and unrealized gain (loss) on investments | (7.65) | (2.81) | 13.38 | (2.21) | (1.31) | 0.07 | 6.69 |
Total from investment operations | (7.35) | (2.51) | 13.48 | (1.97) | (1.02) | 0.10 | 6.92 |
Less distributions | |||||||
From net investment income | — | (0.34) | (0.11) | (0.23) | (0.27) | — | (0.16) |
From net realized gain | — | (5.06) | — | — | (0.46) | — | — |
Total distributions | — | (5.40) | (0.11) | (0.23) | (0.73) | — | (0.16) |
Net asset value, end of period | $22.73 | $30.08 | $37.99 | $24.62 | $26.82 | $28.57 | $28.47 |
Total return (%)5 | (24.43)6 | (8.08) | 54.78 | (7.51) | (3.27) | 0.356 | 31.91 |
Ratios and supplemental data | |||||||
Net assets, end of period (in millions) | $679 | $844 | $1,057 | $854 | $1,028 | $1,136 | $1,151 |
Ratios (as a percentage of average net assets): | |||||||
Expenses before reductions | 0.887 | 0.87 | 0.87 | 0.88 | 0.87 | 0.877 | 0.88 |
Expenses including reductions | 0.877 | 0.86 | 0.86 | 0.87 | 0.87 | 0.877 | 0.87 |
Net investment income | 2.234,7 | 0.80 | 0.30 | 0.87 | 1.06 | 1.107 | 0.89 |
Portfolio turnover (%) | 39 | 78 | 78 | 80 | 98 | 4 | 65 |
1 | Six months ended 9-30-22. 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 9-30-22 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Australia | $199,852,296 | — | $199,852,296 | — |
Belgium | 86,696,956 | — | 86,696,956 | — |
Brazil | 70,898,913 | $70,898,913 | — | — |
Canada | 592,410,139 | 592,410,139 | — | — |
China | 1,197,073,880 | 439,200,389 | 757,873,491 | — |
France | 1,080,901,164 | — | 1,080,901,164 | — |
Germany | 187,379,147 | — | 187,379,147 | — |
Hong Kong | 135,067,224 | — | 135,067,224 | — |
India | 476,437,207 | — | 476,437,207 | — |
Indonesia | 191,253,649 | — | 191,253,649 | — |
Ireland | 342,282,628 | 342,282,628 | — | — |
Japan | 486,015,563 | — | 486,015,563 | — |
Netherlands | 96,130,054 | 96,130,054 | — | — |
Portugal | 133,586,241 | — | 133,586,241 | — |
Singapore | 96,217,653 | — | 96,217,653 | — |
24 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
Total value at 9-30-22 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Spain | $94,110,614 | — | $94,110,614 | — |
Sweden | 74,233,601 | — | 74,233,601 | — |
Switzerland | 617,346,536 | — | 617,346,536 | — |
Taiwan | 345,230,075 | — | 345,230,075 | — |
United Kingdom | 946,791,135 | — | 946,791,135 | — |
United States | 160,932,289 | $160,932,289 | — | — |
Preferred securities | 97,018,808 | 97,018,808 | — | — |
Short-term investments | 42,248,946 | 11,948,946 | 30,300,000 | — |
Total investments in securities | $7,750,114,718 | $1,810,822,166 | $5,939,292,552 | — |
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 | $21,373 |
Class C | 5,324 |
Class I | 231,701 |
Class R2 | 1,317 |
Class R4 | 530 |
Class | Expense reduction |
Class R6 | $76,855 |
Class 1 | 2,354 |
Class NAV | 29,312 |
Total | $368,766 |
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 | $836,585 | $321,879 |
Class C | 694,263 | 80,207 |
Class I | — | 3,488,661 |
Class R2 | 84,753 | 1,628 |
Class R4 | 23,818 | 644 |
Class R6 | — | 95,035 |
Class 1 | 15,363 | — |
Total | $1,654,782 | $3,988,054 |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 29 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Borrower | $13,333,333 | 15 | 1.390% | ($7,724) |
Lender | $35,000,000 | 1 | 1.890% | $1,838 |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,980,709 | $52,173,422 | 5,253,683 | $196,670,262 |
Distributions reinvested | — | — | 2,823,464 | 94,529,556 |
Repurchased | (2,783,182) | (72,964,158) | (4,340,985) | (158,090,271) |
Net increase (decrease) | (802,473) | $(20,790,736) | 3,736,162 | $133,109,547 |
Class C shares | ||||
Sold | 47,439 | $1,220,346 | 292,252 | $10,738,054 |
Distributions reinvested | — | — | 811,423 | 26,241,424 |
Repurchased | (1,056,393) | (26,572,077) | (1,288,020) | (45,807,208) |
Net decrease | (1,008,954) | $(25,351,731) | (184,345) | $(8,827,730) |
Class I shares | ||||
Sold | 27,859,383 | $738,057,836 | 64,526,823 | $2,362,927,312 |
Distributions reinvested | — | — | 30,801,555 | 1,033,700,185 |
Repurchased | (64,744,123) | (1,705,238,813) | (65,386,239) | (2,317,490,127) |
Net increase (decrease) | (36,884,740) | $(967,180,977) | 29,942,139 | $1,079,137,370 |
Class R2 shares | ||||
Sold | 140,536 | $3,760,048 | 204,886 | $7,553,105 |
Distributions reinvested | — | — | 165,508 | 5,544,525 |
Repurchased | (101,913) | (2,656,063) | (410,303) | (15,409,480) |
Net increase (decrease) | 38,623 | $1,103,985 | (39,909) | $(2,311,850) |
30 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class R4 shares | ||||
Sold | 33,578 | $912,755 | 199,618 | $7,093,777 |
Distributions reinvested | — | — | 197,303 | 6,621,487 |
Repurchased | (1,257,834) | (35,072,602) | (184,528) | (6,905,659) |
Net increase (decrease) | (1,224,256) | $(34,159,847) | 212,393 | $6,809,605 |
Class R6 shares | ||||
Sold | 7,855,357 | $207,179,295 | 17,830,567 | $657,899,168 |
Distributions reinvested | — | — | 10,788,979 | 362,401,816 |
Repurchased | (10,800,905) | (289,594,590) | (15,345,428) | (551,328,996) |
Net increase (decrease) | (2,945,548) | $(82,415,295) | 13,274,118 | $468,971,988 |
Class 1 shares | ||||
Sold | 85,109 | $2,222,962 | 204,864 | $7,854,829 |
Distributions reinvested | — | — | 334,618 | 11,223,078 |
Repurchased | (193,563) | (5,128,190) | (344,923) | (12,992,669) |
Net increase (decrease) | (108,454) | $(2,905,228) | 194,559 | $6,085,238 |
Class NAV shares | ||||
Sold | 2,014,835 | $52,538,999 | 1,185,055 | $41,937,327 |
Distributions reinvested | — | — | 3,963,039 | 132,920,326 |
Repurchased | (201,758) | (5,440,424) | (4,907,059) | (191,154,585) |
Net increase (decrease) | 1,813,077 | $47,098,575 | 241,035 | $(16,296,932) |
Total net increase (decrease) | (41,122,725) | $(1,084,601,254) | 47,376,152 | $1,666,677,236 |
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* | 1,195,851 | — | $993,562,797 | $(981,529,167) | $(83,354) | $(1,330) | $629,809 | — | $11,948,946 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
32 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
Total votes for the nominee | Total votes withheld from the nominee | |
Independent Trustees | ||
James R. Boyle | 1,409,775,493.514 | 15,295,731.365 |
Frances G. Rathke | 1,409,882,732.809 | 15,188,492.070 |
Noni L. Ellison | 1,411,065,236.157 | 14,005,988.722 |
Dean Garfield | 1,409,601,084.314 | 15,470,140.565 |
Patricia Lizarraga | 1,410,809,328.457 | 14,261,896.422 |
Non-Independent Trustees | ||
Andrew G. Arnott | 1,410,004,927.170 | 15,066,297.709 |
Marianne Harrison | 1,410,636,974.305 | 14,434,250.574 |
Paul Lorentz | 1,409,775,645.079 | 15,295,579.800 |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 33 |
34 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
(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; |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 35 |
(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. |
36 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
(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. |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 37 |
(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. |
38 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
(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 |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 39 |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
40 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
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 |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 41 |
GOVERNANCE FUNDS
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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
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2 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
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TOP 10 HOLDINGS AS OF 9/30/2022 (% of net assets) | |
Microsoft Corp. | 11.4 |
Apple, Inc. | 10.7 |
Amazon.com, Inc. | 6.9 |
Alphabet, Inc., Class A | 6.6 |
UnitedHealth Group, Inc. | 4.0 |
Visa, Inc., Class A | 3.2 |
Mastercard, Inc., Class A | 2.7 |
Eli Lilly & Company | 2.4 |
Accenture PLC, Class A | 2.0 |
Vertex Pharmaceuticals, Inc. | 1.8 |
TOTAL | 51.7 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 3 |
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4 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
Account value on 4-1-2022 | Ending value on 9-30-2022 | Expenses paid during period ended 9-30-20221 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $790.30 | $4.40 | 0.98% |
Hypothetical example | 1,000.00 | 1,020.20 | 4.96 | 0.98% | |
Class C | Actual expenses/actual returns | 1,000.00 | 787.10 | 7.75 | 1.73% |
Hypothetical example | 1,000.00 | 1,016.40 | 8.74 | 1.73% | |
Class I | Actual expenses/actual returns | 1,000.00 | 791.40 | 3.28 | 0.73% |
Hypothetical example | 1,000.00 | 1,021.40 | 3.70 | 0.73% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 789.70 | 4.94 | 1.10% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.57 | 1.10% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 790.70 | 3.95 | 0.88% |
Hypothetical example | 1,000.00 | 1,020.70 | 4.46 | 0.88% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 791.90 | 2.79 | 0.62% |
Hypothetical example | 1,000.00 | 1,022.00 | 3.14 | 0.62% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 791.50 | 2.74 | 0.61% |
Hypothetical example | 1,000.00 | 1,022.00 | 3.09 | 0.61% |
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 | 5 |
Shares | Value | ||||
Common stocks 99.9% | $930,874,036 | ||||
(Cost $757,204,822) | |||||
Communication services 10.1% | 93,894,323 | ||||
Entertainment 1.2% | |||||
Electronic Arts, Inc. | 95,192 | 11,014,666 | |||
Interactive media and services 7.8% | |||||
Alphabet, Inc., Class A (A) | 646,990 | 61,884,594 | |||
ZoomInfo Technologies, Inc. (A) | 262,308 | 10,927,751 | |||
Wireless telecommunication services 1.1% | |||||
T-Mobile US, Inc. (A) | 75,034 | 10,067,312 | |||
Consumer discretionary 12.4% | 115,431,268 | ||||
Diversified consumer services 1.3% | |||||
H&R Block, Inc. | 272,563 | 11,594,830 | |||
Internet and direct marketing retail 6.9% | |||||
Amazon.com, Inc. (A) | 571,024 | 64,525,712 | |||
Specialty retail 4.2% | |||||
Lowe’s Companies, Inc. | 81,776 | 15,358,351 | |||
The TJX Companies, Inc. | 216,252 | 13,433,574 | |||
Ulta Beauty, Inc. (A) | 26,219 | 10,518,801 | |||
Consumer staples 0.9% | 8,568,126 | ||||
Tobacco 0.9% | |||||
Philip Morris International, Inc. | 103,218 | 8,568,126 | |||
Energy 2.0% | 18,786,955 | ||||
Energy equipment and services 1.0% | |||||
Schlumberger NV | 254,578 | 9,139,350 | |||
Oil, gas and consumable fuels 1.0% | |||||
Coterra Energy, Inc. | 369,357 | 9,647,605 | |||
Financials 12.2% | 113,604,515 | ||||
Capital markets 6.0% | |||||
Ares Management Corp., Class A | 199,597 | 12,365,034 | |||
LPL Financial Holdings, Inc. | 77,309 | 16,890,470 | |||
Raymond James Financial, Inc. | 125,091 | 12,361,493 | |||
The Charles Schwab Corp. | 196,409 | 14,115,915 | |||
Consumer finance 1.0% | |||||
American Express Company | 66,284 | 8,942,374 | |||
Insurance 5.2% | |||||
Aon PLC, Class A | 47,621 | 12,756,237 | |||
Arch Capital Group, Ltd. (A) | 275,792 | 12,559,568 | |||
Arthur J. Gallagher & Company | 64,614 | 11,063,209 |
6 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Insurance (continued) | |||||
The Progressive Corp. | 107,996 | $12,550,215 | |||
Health care 13.1% | 122,358,253 | ||||
Biotechnology 1.8% | |||||
Vertex Pharmaceuticals, Inc. (A) | 58,990 | 17,079,965 | |||
Health care providers and services 8.9% | |||||
Elevance Health, Inc. | 32,790 | 14,894,530 | |||
Humana, Inc. | 33,080 | 16,050,085 | |||
McKesson Corp. | 42,340 | 14,390,096 | |||
UnitedHealth Group, Inc. | 74,524 | 37,637,601 | |||
Pharmaceuticals 2.4% | |||||
Eli Lilly & Company | 68,984 | 22,305,976 | |||
Industrials 2.2% | 20,370,228 | ||||
Building products 1.0% | |||||
Builders FirstSource, Inc. (A) | 157,345 | 9,270,767 | |||
Construction and engineering 1.2% | |||||
WillScot Mobile Mini Holdings Corp. (A) | 275,216 | 11,099,461 | |||
Information technology 42.8% | 398,630,438 | ||||
Electronic equipment, instruments and components 1.1% | |||||
CDW Corp. | 66,559 | 10,388,529 | |||
IT services 14.1% | |||||
Accenture PLC, Class A | 71,086 | 18,290,428 | |||
ExlService Holdings, Inc. (A) | 61,512 | 9,064,408 | |||
FleetCor Technologies, Inc. (A) | 53,986 | 9,510,714 | |||
Gartner, Inc. (A) | 60,139 | 16,639,860 | |||
Global Payments, Inc. | 104,687 | 11,311,430 | |||
GoDaddy, Inc., Class A (A) | 154,446 | 10,947,132 | |||
Mastercard, Inc., Class A | 89,079 | 25,328,723 | |||
Visa, Inc., Class A | 170,017 | 30,203,520 | |||
Semiconductors and semiconductor equipment 2.7% | |||||
Analog Devices, Inc. | 74,372 | 10,362,994 | |||
Qualcomm, Inc. | 127,344 | 14,387,325 | |||
Software 13.2% | |||||
Microsoft Corp. | 457,424 | 106,534,049 | |||
Palo Alto Networks, Inc. (A) | 102,240 | 16,745,890 | |||
Technology hardware, storage and peripherals 11.7% | |||||
Apple, Inc. | 719,695 | 99,461,849 | |||
NetApp, Inc. | 152,847 | 9,453,587 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 7 |
Shares | Value | ||||
Real estate 4.2% | $39,229,930 | ||||
Equity real estate investment trusts 4.2% | |||||
Brixmor Property Group, Inc. | 658,705 | 12,166,281 | |||
Gaming and Leisure Properties, Inc. | 211,065 | 9,337,516 | |||
Life Storage, Inc. | 80,843 | 8,954,171 | |||
Welltower, Inc. | 136,380 | 8,771,962 | |||
Yield (%) | Shares | Value | |||
Short-term investments 0.2% | $1,455,188 | ||||
(Cost $1,455,188) | |||||
Short-term funds 0.2% | 1,455,188 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 2.9329(B) | 1,455,188 | 1,455,188 |
Total investments (Cost $758,660,010) 100.1% | $932,329,224 | ||||
Other assets and liabilities, net (0.1%) | (1,043,609) | ||||
Total net assets 100.0% | $931,285,615 |
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 9-30-22. |
8 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $758,660,010) | $932,329,224 |
Dividends and interest receivable | 354,360 |
Receivable for fund shares sold | 333,933 |
Other assets | 103,395 |
Total assets | 933,120,912 |
Liabilities | |
Payable for investments purchased | 9,758 |
Payable for fund shares repurchased | 1,519,802 |
Payable to affiliates | |
Accounting and legal services fees | 35,523 |
Transfer agent fees | 78,024 |
Distribution and service fees | 268 |
Trustees’ fees | 536 |
Other liabilities and accrued expenses | 191,386 |
Total liabilities | 1,835,297 |
Net assets | $931,285,615 |
Net assets consist of | |
Paid-in capital | $670,044,323 |
Total distributable earnings (loss) | 261,241,292 |
Net assets | $931,285,615 |
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 ($507,088,223 ÷ 27,907,107 shares)1 | $18.17 |
Class C ($21,208,825 ÷ 1,233,759 shares)1 | $17.19 |
Class I ($248,295,300 ÷ 13,439,277 shares) | $18.48 |
Class R2 ($1,179,907 ÷ 64,517 shares) | $18.29 |
Class R4 ($13,614 ÷ 737 shares) | $18.47 |
Class R6 ($112,942,459 ÷ 6,082,879 shares) | $18.57 |
Class NAV ($40,557,287 ÷ 2,185,045 shares) | $18.56 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $19.13 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 9 |
Investment income | |
Dividends | $5,270,016 |
Interest | 33,244 |
Less foreign taxes withheld | (8,424) |
Total investment income | 5,294,836 |
Expenses | |
Investment management fees | 2,989,798 |
Distribution and service fees | 854,567 |
Accounting and legal services fees | 71,167 |
Transfer agent fees | 523,713 |
Trustees’ fees | 11,078 |
Custodian fees | 63,924 |
State registration fees | 70,266 |
Printing and postage | 36,579 |
Professional fees | 42,204 |
Other | 30,929 |
Total expenses | 4,694,225 |
Less expense reductions | (41,094) |
Net expenses | 4,653,131 |
Net investment income | 641,705 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | (3,596,596) |
(3,596,596) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (252,216,899) |
(252,216,899) | |
Net realized and unrealized loss | (255,813,495) |
Decrease in net assets from operations | $(255,171,790) |
10 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Six months ended 9-30-22 (unaudited) | Year ended 3-31-22 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income (loss) | $641,705 | $(3,971,566) |
Net realized gain (loss) | (3,596,596) | 158,059,282 |
Change in net unrealized appreciation (depreciation) | (252,216,899) | (19,833,844) |
Increase (decrease) in net assets resulting from operations | (255,171,790) | 134,253,872 |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (94,881,817) |
Class C | — | (4,787,408) |
Class I | — | (53,794,432) |
Class R2 | — | (211,758) |
Class R4 | — | (570) |
Class R6 | — | (20,223,435) |
Class NAV | — | (7,440,684) |
Total distributions | — | (181,340,104) |
From fund share transactions | (59,696,112) | (4,662,273) |
Total decrease | (314,867,902) | (51,748,505) |
Net assets | ||
Beginning of period | 1,246,153,517 | 1,297,902,022 |
End of period | $931,285,615 | $1,246,153,517 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 11 |
CLASS A SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $22.99 | $23.96 | $16.24 | $16.23 | $17.94 | $16.89 |
Net investment income (loss)2 | —3 | (0.10) | (0.07) | 0.01 | (0.01) | 0.01 |
Net realized and unrealized gain (loss) on investments | (4.82) | 2.75 | 8.40 | —3 | 2.22 | 3.62 |
Total from investment operations | (4.82) | 2.65 | 8.33 | 0.01 | 2.21 | 3.63 |
Less distributions | ||||||
From net investment income | — | — | — | — | (0.03) | (0.03) |
From net realized gain | — | (3.62) | (0.61) | — | (3.89) | (2.55) |
Total distributions | — | (3.62) | (0.61) | — | (3.92) | (2.58) |
Net asset value, end of period | $18.17 | $22.99 | $23.96 | $16.24 | $16.23 | $17.94 |
Total return (%)4,5 | (20.97)6 | 10.06 | 51.37 | 0.06 | 12.22 | 21.91 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $507 | $670 | $653 | $458 | $404 | $379 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.987 | 0.96 | 1.01 | 1.01 | 1.10 | 1.10 |
Expenses including reductions | 0.987 | 0.96 | 1.00 | 1.00 | 1.09 | 1.09 |
Net investment income (loss) | 0.017 | (0.40) | (0.31) | 0.03 | (0.07) | 0.03 |
Portfolio turnover (%) | 47 | 91 | 101 | 918 | 889 | 83 |
1 | Six months ended 9-30-22. 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. |
12 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $21.84 | $23.08 | $15.77 | $15.88 | $17.71 | $16.80 |
Net investment loss2 | (0.07) | (0.28) | (0.23) | (0.12) | (0.14) | (0.13) |
Net realized and unrealized gain (loss) on investments | (4.58) | 2.66 | 8.15 | 0.01 | 2.20 | 3.59 |
Total from investment operations | (4.65) | 2.38 | 7.92 | (0.11) | 2.06 | 3.46 |
Less distributions | ||||||
From net realized gain | — | (3.62) | (0.61) | — | (3.89) | (2.55) |
Net asset value, end of period | $17.19 | $21.84 | $23.08 | $15.77 | $15.88 | $17.71 |
Total return (%)3,4 | (21.29)5 | 9.25 | 50.29 | (0.69) | 11.44 | 20.95 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $21 | $30 | $35 | $23 | $12 | $18 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.736 | 1.71 | 1.76 | 1.76 | 1.85 | 1.85 |
Expenses including reductions | 1.736 | 1.71 | 1.75 | 1.75 | 1.84 | 1.84 |
Net investment loss | (0.74)6 | (1.15) | (1.07) | (0.72) | (0.85) | (0.72) |
Portfolio turnover (%) | 47 | 91 | 101 | 917 | 888 | 83 |
1 | Six months ended 9-30-22. 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 | 13 |
CLASS I SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.35 | $24.23 | $16.38 | $16.36 | $18.05 | $16.98 |
Net investment income (loss)2 | 0.03 | (0.04) | (0.01) | 0.05 | 0.04 | 0.06 |
Net realized and unrealized gain (loss) on investments | (4.90) | 2.78 | 8.49 | (0.01) | 2.23 | 3.64 |
Total from investment operations | (4.87) | 2.74 | 8.48 | 0.04 | 2.27 | 3.70 |
Less distributions | ||||||
From net investment income | — | — | (0.02) | (0.02) | (0.07) | (0.08) |
From net realized gain | — | (3.62) | (0.61) | — | (3.89) | (2.55) |
Total distributions | — | (3.62) | (0.63) | (0.02) | (3.96) | (2.63) |
Net asset value, end of period | $18.48 | $23.35 | $24.23 | $16.38 | $16.36 | $18.05 |
Total return (%)3 | (20.86)4 | 10.33 | 51.84 | 0.26 | 12.55 | 22.12 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $248 | $347 | $408 | $321 | $115 | $20 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.735 | 0.71 | 0.76 | 0.76 | 0.87 | 0.84 |
Expenses including reductions | 0.735 | 0.71 | 0.75 | 0.75 | 0.86 | 0.83 |
Net investment income (loss) | 0.265 | (0.16) | (0.06) | 0.28 | 0.25 | 0.31 |
Portfolio turnover (%) | 47 | 91 | 101 | 916 | 887 | 83 |
1 | Six months ended 9-30-22. 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. |
14 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R2 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.16 | $24.15 | $16.38 | $16.40 | $18.08 | $17.02 |
Net investment loss2 | (0.01) | (0.14) | (0.10) | (0.02) | (0.04) | (0.02) |
Net realized and unrealized gain (loss) on investments | (4.86) | 2.77 | 8.48 | —3 | 2.25 | 3.64 |
Total from investment operations | (4.87) | 2.63 | 8.38 | (0.02) | 2.21 | 3.62 |
Less distributions | ||||||
From net investment income | — | — | — | — | —3 | (0.01) |
From net realized gain | — | (3.62) | (0.61) | — | (3.89) | (2.55) |
Total distributions | — | (3.62) | (0.61) | — | (3.89) | (2.56) |
Net asset value, end of period | $18.29 | $23.16 | $24.15 | $16.38 | $16.40 | $18.08 |
Total return (%)4 | (21.03)5 | 9.89 | 51.24 | (0.12) | 12.13 | 21.68 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1 | $2 | $1 | $1 | $1 | $1 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.106 | 1.10 | 1.14 | 1.15 | 1.25 | 1.22 |
Expenses including reductions | 1.106 | 1.09 | 1.13 | 1.14 | 1.25 | 1.21 |
Net investment loss | (0.11)6 | (0.54) | (0.45) | (0.11) | (0.22) | (0.11) |
Portfolio turnover (%) | 47 | 91 | 101 | 917 | 888 | 83 |
1 | Six months ended 9-30-22. 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 | 15 |
CLASS R4 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.36 | $24.25 | $16.41 | $16.39 | $18.08 | $17.01 |
Net investment income (loss)2 | 0.02 | (0.05) | (0.03) | 0.03 | 0.01 | 0.03 |
Net realized and unrealized gain (loss) on investments | (4.91) | 2.78 | 8.48 | —3 | 2.24 | 3.65 |
Total from investment operations | (4.89) | 2.73 | 8.45 | 0.03 | 2.25 | 3.68 |
Less distributions | ||||||
From net investment income | — | — | —3 | (0.01) | (0.05) | (0.06) |
From net realized gain | — | (3.62) | (0.61) | — | (3.89) | (2.55) |
Total distributions | — | (3.62) | (0.61) | (0.01) | (3.94) | (2.61) |
Net asset value, end of period | $18.47 | $23.36 | $24.25 | $16.41 | $16.39 | $18.08 |
Total return (%)4 | (20.93)5 | 10.27 | 51.59 | 0.17 | 12.36 | 22.05 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $—6 | $—6 | $—6 | $1 | $1 | $1 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.977 | 0.89 | 1.00 | 1.00 | 1.10 | 1.06 |
Expenses including reductions | 0.887 | 0.79 | 0.89 | 0.89 | 1.00 | 0.95 |
Net investment income (loss) | 0.127 | (0.23) | (0.14) | 0.15 | 0.03 | 0.18 |
Portfolio turnover (%) | 47 | 91 | 101 | 918 | 889 | 83 |
1 | Six months ended 9-30-22. 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. |
16 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.45 | $24.30 | $16.42 | $16.39 | $18.08 | $17.01 |
Net investment income (loss)2 | 0.04 | (0.01) | 0.01 | 0.07 | 0.05 | 0.05 |
Net realized and unrealized gain (loss) on investments | (4.92) | 2.78 | 8.51 | —3 | 2.24 | 3.67 |
Total from investment operations | (4.88) | 2.77 | 8.52 | 0.07 | 2.29 | 3.72 |
Less distributions | ||||||
From net investment income | — | — | (0.03) | (0.04) | (0.09) | (0.10) |
From net realized gain | — | (3.62) | (0.61) | — | (3.89) | (2.55) |
Total distributions | — | (3.62) | (0.64) | (0.04) | (3.98) | (2.65) |
Net asset value, end of period | $18.57 | $23.45 | $24.30 | $16.42 | $16.39 | $18.08 |
Total return (%)4 | (20.81)5 | 10.43 | 51.96 | 0.38 | 12.68 | 22.26 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $113 | $145 | $147 | $99 | $15 | $9 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.636 | 0.61 | 0.65 | 0.65 | 0.75 | 0.75 |
Expenses including reductions | 0.626 | 0.60 | 0.64 | 0.64 | 0.74 | 0.74 |
Net investment income (loss) | 0.376 | (0.05) | 0.04 | 0.37 | 0.29 | 0.25 |
Portfolio turnover (%) | 47 | 91 | 101 | 917 | 888 | 83 |
1 | Six months ended 9-30-22. 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 NAV SHARES Period ended | 9-30-221 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 | 3-31-18 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.45 | $24.29 | $16.41 | $16.38 | $18.07 | $17.00 |
Net investment income (loss)2 | 0.04 | (0.01) | 0.01 | 0.07 | 0.03 | 0.07 |
Net realized and unrealized gain (loss) on investments | (4.93) | 2.79 | 8.51 | —3 | 2.26 | 3.65 |
Total from investment operations | (4.89) | 2.78 | 8.52 | 0.07 | 2.29 | 3.72 |
Less distributions | ||||||
From net investment income | — | — | (0.03) | (0.04) | (0.09) | (0.10) |
From net realized gain | — | (3.62) | (0.61) | — | (3.89) | (2.55) |
Total distributions | — | (3.62) | (0.64) | (0.04) | (3.98) | (2.65) |
Net asset value, end of period | $18.56 | $23.45 | $24.29 | $16.41 | $16.38 | $18.07 |
Total return (%)4 | (20.85)5 | 10.48 | 52.01 | 0.39 | 12.69 | 22.30 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $41 | $52 | $54 | $40 | $—6 | $1,410 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.627 | 0.60 | 0.64 | 0.64 | 0.74 | 0.73 |
Expenses including reductions | 0.617 | 0.59 | 0.63 | 0.63 | 0.73 | 0.73 |
Net investment income (loss) | 0.387 | (0.04) | 0.06 | 0.41 | 0.18 | 0.40 |
Portfolio turnover (%) | 47 | 91 | 101 | 918 | 889 | 83 |
1 | Six months ended 9-30-22. 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 |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 19 |
20 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 21 |
Class | Expense reduction |
Class A | $22,192 |
Class C | 972 |
Class I | 11,235 |
Class R2 | 51 |
Class | Expense reduction |
Class R6 | $4,882 |
Class NAV | 1,760 |
Total | $41,092 |
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% |
22 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class A | $724,532 | $333,928 |
Class C | 126,885 | 14,627 |
Class I | — | 169,064 |
Class R2 | 3,143 | 62 |
Class R4 | 7 | — |
Class R6 | — | 6,032 |
Total | $854,567 | $523,713 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $2,000,000 | 1 | 0.445% | $25 |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 23 |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 735,134 | $14,809,068 | 1,212,772 | $30,823,365 |
Distributions reinvested | — | — | 3,762,581 | 92,785,993 |
Repurchased | (1,977,582) | (39,956,662) | (3,076,018) | (77,793,440) |
Net increase (decrease) | (1,242,448) | $(25,147,594) | 1,899,335 | $45,815,918 |
Class C shares | ||||
Sold | 35,464 | $683,495 | 80,525 | $1,960,557 |
Distributions reinvested | — | — | 203,317 | 4,769,820 |
Repurchased | (188,690) | (3,542,375) | (401,076) | (9,639,707) |
Net decrease | (153,226) | $(2,858,880) | (117,234) | $(2,909,330) |
Class I shares | ||||
Sold | 1,764,443 | $36,378,491 | 2,338,632 | $59,285,230 |
Distributions reinvested | — | — | 2,145,580 | 53,682,403 |
Repurchased | (3,178,919) | (65,290,078) | (6,480,524) | (164,709,542) |
Net decrease | (1,414,476) | $(28,911,587) | (1,996,312) | $(51,741,909) |
Class R2 shares | ||||
Sold | 4,589 | $97,150 | 5,359 | $133,531 |
Distributions reinvested | — | — | 8,525 | 211,758 |
Repurchased | (4,880) | (99,054) | (4,701) | (110,252) |
Net increase (decrease) | (291) | $(1,904) | 9,183 | $235,037 |
Class R4 shares | ||||
Sold | 553 | $10,363 | 10 | $270 |
Distributions reinvested | — | — | 23 | 570 |
Repurchased | — | — | (12) | (324) |
Net increase | 553 | $10,363 | 21 | $516 |
Class R6 shares | ||||
Sold | 586,320 | $12,231,185 | 970,782 | $25,301,012 |
Distributions reinvested | — | — | 805,073 | 20,223,435 |
Repurchased | (690,508) | (14,236,302) | (1,629,093) | (41,748,773) |
Net increase (decrease) | (104,188) | $(2,005,117) | 146,762 | $3,775,674 |
24 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-22 | Year Ended 3-31-22 | |||
Shares | Amount | Shares | Amount | |
Class NAV shares | ||||
Sold | 97,082 | $2,001,916 | 217,307 | $5,705,814 |
Distributions reinvested | — | — | 296,324 | 7,440,684 |
Repurchased | (135,931) | (2,783,309) | (501,469) | (12,984,677) |
Net increase (decrease) | (38,849) | $(781,393) | 12,162 | $161,821 |
Total net decrease | (2,952,925) | $(59,696,112) | (46,083) | $(4,662,273) |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 25 |
Total votes for the nominee | Total votes withheld from the nominee | |
Independent Trustees | ||
James R. Boyle | 1,409,775,493.514 | 15,295,731.365 |
Frances G. Rathke | 1,409,882,732.809 | 15,188,492.070 |
Noni L. Ellison | 1,411,065,236.157 | 14,005,988.722 |
Dean Garfield | 1,409,601,084.314 | 15,470,140.565 |
Patricia Lizarraga | 1,410,809,328.457 | 14,261,896.422 |
Non-Independent Trustees | ||
Andrew G. Arnott | 1,410,004,927.170 | 15,066,297.709 |
Marianne Harrison | 1,410,636,974.305 | 14,434,250.574 |
Paul Lorentz | 1,409,775,645.079 | 15,295,579.800 |
26 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 27 |
(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; |
28 | 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 | 29 |
(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 |
30 | 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 | 31 |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
32 | 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 | 33 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Marianne Harrison†
Deborah C. Jackson
Patricia Lizarraga*,^
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Timothy N. Manning
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 |
34 | 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.
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200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
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MF2459803 | 393SA 9/22 |
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.
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.
(a)(1) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
John Hancock Funds III
By: | /s/ Andrew Arnott |
------------------------------ | |
Andrew Arnott | |
President | |
Date: | November 2, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Andrew Arnott |
------------------------------ | |
Andrew Arnott | |
President | |
Date: | November 2, 2022 |
By: | /s/ Charles A. Rizzo |
-------------------------------- | |
Charles A. Rizzo | |
Chief Financial Officer | |
Date: | November 2, 2022 |