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, 2023 |
ITEM 1. REPORTS TO STOCKHOLDERS
The Registrant prepared the following semiannual reports to shareholders for the period ended September 30, 2023:
•John Hancock Disciplined Value Fund
•John Hancock Disciplined Value Mid Cap Fund
•John Hancock Global Shareholder Yield Fund
•John Hancock International Growth Fund
•John Hancock U.S. Growth Fund
United States and Europe
Manulife Investment Management
John Hancock Investment Management
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 1 |
2 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2023 (% of net assets) | |
JPMorgan Chase & Co. | 3.7 |
Berkshire Hathaway, Inc., Class B | 3.7 |
Alphabet, Inc., Class A | 3.4 |
Bristol-Myers Squibb Company | 2.6 |
Cisco Systems, Inc. | 2.4 |
Sanofi, ADR | 1.9 |
AutoZone, Inc. | 1.9 |
Wells Fargo & Company | 1.8 |
UnitedHealth Group, Inc. | 1.8 |
Marathon Petroleum Corp. | 1.8 |
TOTAL | 25.0 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 3 |
COUNTRY COMPOSITION AS OF 9/30/2023 (% of net assets) | |
United States | 87.2 |
Canada | 3.7 |
Ireland | 3.0 |
United Kingdom | 1.9 |
France | 1.9 |
Switzerland | 1.2 |
Japan | 0.8 |
Netherlands | 0.3 |
TOTAL | 100.0 |
4 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 5 |
Account value on 4-1-2023 | Ending value on 9-30-2023 | Expenses paid during period ended 9-30-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,049.70 | $5.23 | 1.02% |
Hypothetical example | 1,000.00 | 1,019.90 | 5.15 | 1.02% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,045.70 | 9.05 | 1.77% |
Hypothetical example | 1,000.00 | 1,016.20 | 8.92 | 1.77% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,051.00 | 3.95 | 0.77% |
Hypothetical example | 1,000.00 | 1,021.20 | 3.89 | 0.77% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,049.10 | 5.89 | 1.15% |
Hypothetical example | 1,000.00 | 1,019.30 | 5.81 | 1.15% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,050.50 | 4.61 | 0.90% |
Hypothetical example | 1,000.00 | 1,020.50 | 4.55 | 0.90% | |
Class R5 | Actual expenses/actual returns | 1,000.00 | 1,051.30 | 3.59 | 0.70% |
Hypothetical example | 1,000.00 | 1,021.50 | 3.54 | 0.70% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,051.30 | 3.33 | 0.65% |
Hypothetical example | 1,000.00 | 1,021.80 | 3.29 | 0.65% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,051.30 | 3.33 | 0.65% |
Hypothetical example | 1,000.00 | 1,021.80 | 3.29 | 0.65% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
6 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 98.9% | $12,165,179,219 | ||||
(Cost $9,619,482,428) | |||||
Communication services 7.1% | 868,371,334 | ||||
Entertainment 1.0% | |||||
Take-Two Interactive Software, Inc. (A) | 397,179 | 55,759,960 | |||
Warner Brothers Discovery, Inc. (A) | 6,289,164 | 68,300,321 | |||
Interactive media and services 3.8% | |||||
Alphabet, Inc., Class A (A) | 3,216,509 | 420,912,368 | |||
Match Group, Inc. (A) | 1,148,066 | 44,975,486 | |||
Media 0.9% | |||||
Omnicom Group, Inc. | 1,448,382 | 107,875,491 | |||
Wireless telecommunication services 1.4% | |||||
T-Mobile US, Inc. (A) | 1,217,763 | 170,547,708 | |||
Consumer discretionary 6.7% | 826,188,832 | ||||
Automobile components 0.6% | |||||
BorgWarner, Inc. | 1,865,992 | 75,330,097 | |||
Distributors 0.5% | |||||
LKQ Corp. | 1,279,828 | 63,364,284 | |||
Hotels, restaurants and leisure 1.3% | |||||
Booking Holdings, Inc. (A) | 33,127 | 102,162,012 | |||
MGM Resorts International | 1,681,829 | 61,824,034 | |||
Household durables 1.9% | |||||
Mohawk Industries, Inc. (A) | 909,476 | 78,042,136 | |||
Sony Group Corp., ADR | 1,157,667 | 95,403,337 | |||
Whirlpool Corp. | 422,325 | 56,464,853 | |||
Specialty retail 2.4% | |||||
AutoZone, Inc. (A) | 91,255 | 231,786,787 | |||
Ulta Beauty, Inc. (A) | 154,741 | 61,811,292 | |||
Consumer staples 7.3% | 895,150,222 | ||||
Beverages 2.3% | |||||
Coca-Cola Europacific Partners PLC | 1,572,644 | 98,258,797 | |||
Keurig Dr. Pepper, Inc. | 5,663,333 | 178,791,423 | |||
Consumer staples distribution and retail 2.8% | |||||
U.S. Foods Holding Corp. (A) | 3,311,021 | 131,447,534 | |||
Walmart, Inc. | 1,365,685 | 218,414,002 | |||
Personal care products 0.5% | |||||
Kenvue, Inc. | 3,011,494 | 60,470,800 | |||
Tobacco 1.7% | |||||
Philip Morris International, Inc. | 2,244,196 | 207,767,666 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 7 |
Shares | Value | ||||
Energy 11.5% | $1,410,408,243 | ||||
Energy equipment and services 2.6% | |||||
Halliburton Company | 3,142,983 | 127,290,812 | |||
Schlumberger, Ltd. | 3,263,632 | 190,269,746 | |||
Oil, gas and consumable fuels 8.9% | |||||
BP PLC, ADR | 3,558,871 | 137,799,485 | |||
Canadian Natural Resources, Ltd. | 2,819,129 | 182,313,072 | |||
Cenovus Energy, Inc. | 9,624,889 | 200,390,189 | |||
ConocoPhillips | 1,503,931 | 180,170,934 | |||
Marathon Petroleum Corp. | 1,451,245 | 219,631,418 | |||
Peabody Energy Corp. | 2,542,589 | 66,081,888 | |||
Pioneer Natural Resources Company | 463,780 | 106,460,699 | |||
Financials 21.4% | 2,632,179,261 | ||||
Banks 5.5% | |||||
JPMorgan Chase & Co. | 3,164,141 | 458,863,728 | |||
Wells Fargo & Company | 5,399,209 | 220,611,680 | |||
Capital markets 4.3% | |||||
Ares Management Corp., Class A | 576,468 | 59,301,263 | |||
Intercontinental Exchange, Inc. | 909,765 | 100,092,345 | |||
Morgan Stanley | 2,650,723 | 216,484,547 | |||
The Goldman Sachs Group, Inc. | 460,660 | 149,055,756 | |||
Consumer finance 2.0% | |||||
American Express Company | 630,562 | 94,073,545 | |||
Discover Financial Services | 1,728,159 | 149,710,414 | |||
Financial services 6.2% | |||||
Berkshire Hathaway, Inc., Class B (A) | 1,294,905 | 453,605,222 | |||
FleetCor Technologies, Inc. (A) | 564,848 | 144,228,288 | |||
Global Payments, Inc. | 1,388,755 | 160,248,439 | |||
Insurance 3.4% | |||||
Aon PLC, Class A | 216,555 | 70,211,462 | |||
Arthur J. Gallagher & Company | 505,441 | 115,205,167 | |||
Chubb, Ltd. | 714,378 | 148,719,212 | |||
The Progressive Corp. | 658,781 | 91,768,193 | |||
Health care 14.7% | 1,813,977,413 | ||||
Biotechnology 1.2% | |||||
Amgen, Inc. | 559,073 | 150,256,459 | |||
Health care providers and services 6.6% | |||||
Cencora, Inc. | 893,762 | 160,850,347 | |||
Centene Corp. (A) | 1,954,401 | 134,619,141 | |||
McKesson Corp. | 295,825 | 128,639,501 | |||
The Cigna Group | 611,047 | 174,802,215 | |||
UnitedHealth Group, Inc. | 436,921 | 220,291,199 |
8 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Health care (continued) | |||||
Life sciences tools and services 2.4% | |||||
Avantor, Inc. (A) | 6,521,936 | $137,482,411 | |||
ICON PLC (A) | 632,259 | 155,693,779 | |||
Pharmaceuticals 4.5% | |||||
Bristol-Myers Squibb Company | 5,482,953 | 318,230,592 | |||
Sanofi, ADR | 4,345,857 | 233,111,769 | |||
Industrials 14.8% | 1,821,549,304 | ||||
Aerospace and defense 3.9% | |||||
General Dynamics Corp. | 840,666 | 185,761,966 | |||
Howmet Aerospace, Inc. | 2,690,430 | 124,432,388 | |||
RTX Corp. | 2,360,897 | 169,913,757 | |||
Building products 1.4% | |||||
Allegion PLC | 829,237 | 86,406,495 | |||
Masco Corp. | 1,589,715 | 84,970,267 | |||
Electrical equipment 1.0% | |||||
Eaton Corp. PLC | 561,699 | 119,799,163 | |||
Machinery 4.4% | |||||
Caterpillar, Inc. | 214,894 | 58,666,062 | |||
Deere & Company | 271,960 | 102,632,265 | |||
Dover Corp. | 547,055 | 76,319,643 | |||
Fortive Corp. | 1,772,323 | 131,435,474 | |||
Otis Worldwide Corp. | 895,830 | 71,944,107 | |||
Wabtec Corp. | 954,040 | 101,385,831 | |||
Professional services 1.9% | |||||
Jacobs Solutions, Inc. | 324,395 | 44,279,918 | |||
Leidos Holdings, Inc. | 1,106,214 | 101,948,682 | |||
SS&C Technologies Holdings, Inc. | 1,627,953 | 85,532,651 | |||
Trading companies and distributors 2.2% | |||||
United Rentals, Inc. | 382,481 | 170,039,578 | |||
WESCO International, Inc. | 737,596 | 106,081,057 | |||
Information technology 10.8% | 1,332,191,749 | ||||
Communications equipment 2.4% | |||||
Cisco Systems, Inc. | 5,519,345 | 296,719,987 | |||
IT services 0.9% | |||||
Cognizant Technology Solutions Corp., Class A | 1,660,645 | 112,492,092 | |||
Semiconductors and semiconductor equipment 6.3% | |||||
Advanced Micro Devices, Inc. (A) | 1,340,938 | 137,875,245 | |||
Applied Materials, Inc. | 1,048,735 | 145,197,361 | |||
Lam Research Corp. | 116,886 | 73,260,638 | |||
Microchip Technology, Inc. | 1,743,922 | 136,113,112 | |||
Micron Technology, Inc. | 2,117,048 | 144,022,775 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 9 |
Shares | Value | ||||
Information technology (continued) | |||||
Semiconductors and semiconductor equipment (continued) | |||||
NXP Semiconductors NV | 175,654 | $35,116,748 | |||
Qualcomm, Inc. | 919,294 | 102,096,792 | |||
Technology hardware, storage and peripherals 1.2% | |||||
Dell Technologies, Inc., Class C | 2,166,865 | 149,296,999 | |||
Materials 3.3% | 410,549,148 | ||||
Chemicals 1.7% | |||||
Corteva, Inc. | 920,904 | 47,113,449 | |||
DuPont de Nemours, Inc. | 1,520,167 | 113,389,257 | |||
Olin Corp. | 1,007,749 | 50,367,295 | |||
Construction materials 1.1% | |||||
CRH PLC (B) | 2,411,215 | 131,965,797 | |||
Metals and mining 0.5% | |||||
Teck Resources, Ltd., Class B | 1,571,440 | 67,713,350 | |||
Utilities 1.3% | 154,613,713 | ||||
Electric utilities 0.8% | |||||
FirstEnergy Corp. | 2,767,891 | 94,606,514 | |||
Multi-utilities 0.5% | |||||
CenterPoint Energy, Inc. | 2,234,905 | 60,007,199 | |||
Yield (%) | Shares | Value | |||
Short-term investments 1.9% | $234,385,693 | ||||
(Cost $234,393,186) | |||||
Short-term funds 1.9% | 234,385,693 | ||||
John Hancock Collateral Trust (C) | 5.2943(D) | 5,965,477 | 59,629,123 | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 5.2787(D) | 174,756,570 | 174,756,570 |
Total investments (Cost $9,853,875,614) 100.8% | $12,399,564,912 | ||||
Other assets and liabilities, net (0.8%) | (104,251,936) | ||||
Total net assets 100.0% | $12,295,312,976 |
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 9-30-23. |
(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 9-30-23. |
10 | JOHN HANCOCK DISCIPLINED VALUE FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 11 |
Assets | |
Unaffiliated investments, at value (Cost $9,794,238,998) including $58,017,086 of securities loaned | $12,339,935,789 |
Affiliated investments, at value (Cost $59,636,616) | 59,629,123 |
Total investments, at value (Cost $9,853,875,614) | 12,399,564,912 |
Cash | 123,089 |
Dividends and interest receivable | 13,382,218 |
Receivable for fund shares sold | 23,241,145 |
Receivable for securities lending income | 127,918 |
Other assets | 1,176,580 |
Total assets | 12,437,615,862 |
Liabilities | |
Payable for investments purchased | 66,498,029 |
Payable for fund shares repurchased | 14,215,565 |
Payable upon return of securities loaned | 59,638,425 |
Payable to affiliates | |
Accounting and legal services fees | 506,953 |
Transfer agent fees | 706,794 |
Distribution and service fees | 16,984 |
Other liabilities and accrued expenses | 720,136 |
Total liabilities | 142,302,886 |
Net assets | $12,295,312,976 |
Net assets consist of | |
Paid-in capital | $8,939,544,445 |
Total distributable earnings (loss) | 3,355,768,531 |
Net assets | $12,295,312,976 |
12 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($1,190,015,278 ÷ 52,185,109 shares)1 | $22.80 |
Class C ($69,514,086 ÷ 3,337,664 shares)1 | $20.83 |
Class I ($6,003,781,360 ÷ 274,705,620 shares) | $21.86 |
Class R2 ($49,713,742 ÷ 2,282,746 shares) | $21.78 |
Class R4 ($56,988,824 ÷ 2,608,036 shares) | $21.85 |
Class R5 ($58,569,621 ÷ 2,671,963 shares) | $21.92 |
Class R6 ($3,783,653,844 ÷ 172,601,764 shares) | $21.92 |
Class NAV ($1,083,076,221 ÷ 49,382,085 shares) | $21.93 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $24.00 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 13 |
Investment income | |
Dividends | $121,655,624 |
Interest | 20,308 |
Securities lending | 311,629 |
Less foreign taxes withheld | (2,299,646) |
Total investment income | 119,687,915 |
Expenses | |
Investment management fees | 37,914,749 |
Distribution and service fees | 2,102,351 |
Accounting and legal services fees | 1,185,522 |
Transfer agent fees | 4,431,597 |
Trustees’ fees | 145,474 |
Custodian fees | 679,135 |
State registration fees | 127,711 |
Printing and postage | 360,994 |
Professional fees | 192,901 |
Other | 133,380 |
Total expenses | 47,273,814 |
Less expense reductions | (478,010) |
Net expenses | 46,795,804 |
Net investment income | 72,892,111 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 448,289,570 |
Affiliated investments | 255 |
448,289,825 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 98,181,594 |
Affiliated investments | (10,074) |
98,171,520 | |
Net realized and unrealized gain | 546,461,345 |
Increase in net assets from operations | $619,353,456 |
14 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Six months ended 9-30-23 (unaudited) | Year ended 3-31-23 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $72,892,111 | $160,529,940 |
Net realized gain | 448,289,825 | 412,758,623 |
Change in net unrealized appreciation (depreciation) | 98,171,520 | (1,257,795,403) |
Increase (decrease) in net assets resulting from operations | 619,353,456 | (684,506,840) |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (74,200,652) |
Class C | — | (5,309,741) |
Class I | — | (389,166,210) |
Class R2 | — | (3,173,900) |
Class R4 | — | (3,287,805) |
Class R5 | — | (3,734,327) |
Class R6 | — | (268,993,677) |
Class NAV | — | (78,981,499) |
Total distributions | — | (826,847,811) |
From fund share transactions | (400,485,044) | 670,486,527 |
Total increase (decrease) | 218,868,412 | (840,868,124) |
Net assets | ||
Beginning of period | 12,076,444,564 | 12,917,312,688 |
End of period | $12,295,312,976 | $12,076,444,564 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 15 |
CLASS A SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $21.72 | $24.55 | $24.73 | $15.18 | $20.25 | $22.11 |
Net investment income2 | 0.10 | 0.24 | 0.15 | 0.18 | 0.30 | 0.26 |
Net realized and unrealized gain (loss) on investments | 0.98 | (1.63) | 3.04 | 9.65 | (4.20) | (0.28) |
Total from investment operations | 1.08 | (1.39) | 3.19 | 9.83 | (3.90) | (0.02) |
Less distributions | ||||||
From net investment income | — | (0.23) | (0.16) | (0.28) | (0.25) | (0.23) |
From net realized gain | — | (1.21) | (3.21) | — | (0.92) | (1.61) |
Total distributions | — | (1.44) | (3.37) | (0.28) | (1.17) | (1.84) |
Net asset value, end of period | $22.80 | $21.72 | $24.55 | $24.73 | $15.18 | $20.25 |
Total return (%)3,4 | 4.975 | (5.60) | 13.42 | 65.19 | (20.99) | 0.45 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,190 | $1,185 | $1,204 | $1,037 | $731 | $1,092 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.036 | 1.02 | 1.04 | 1.07 | 1.07 | 1.06 |
Expenses including reductions | 1.026 | 1.01 | 1.03 | 1.07 | 1.06 | 1.05 |
Net investment income | 0.916 | 1.04 | 0.60 | 0.94 | 1.44 | 1.18 |
Portfolio turnover (%) | 23 | 43 | 38 | 55 | 88 | 69 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
16 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $19.92 | $22.62 | $23.05 | $14.17 | $18.98 | $20.82 |
Net investment income (loss)2 | 0.02 | 0.06 | (0.04) | 0.03 | 0.13 | 0.09 |
Net realized and unrealized gain (loss) on investments | 0.89 | (1.49) | 2.82 | 9.00 | (3.92) | (0.26) |
Total from investment operations | 0.91 | (1.43) | 2.78 | 9.03 | (3.79) | (0.17) |
Less distributions | ||||||
From net investment income | — | (0.06) | — | (0.15) | (0.10) | (0.06) |
From net realized gain | — | (1.21) | (3.21) | — | (0.92) | (1.61) |
Total distributions | — | (1.27) | (3.21) | (0.15) | (1.02) | (1.67) |
Net asset value, end of period | $20.83 | $19.92 | $22.62 | $23.05 | $14.17 | $18.98 |
Total return (%)3,4 | 4.575 | (6.26) | 12.56 | 63.90 | (21.51) | (0.35) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $70 | $79 | $116 | $135 | $140 | $235 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.786 | 1.77 | 1.79 | 1.82 | 1.82 | 1.81 |
Expenses including reductions | 1.776 | 1.76 | 1.78 | 1.82 | 1.81 | 1.80 |
Net investment income (loss) | 0.166 | 0.29 | (0.17) | 0.19 | 0.67 | 0.43 |
Portfolio turnover (%) | 23 | 43 | 38 | 55 | 88 | 69 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 17 |
CLASS I SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $20.80 | $23.57 | $23.86 | $14.65 | $19.58 | $21.45 |
Net investment income2 | 0.12 | 0.28 | 0.21 | 0.22 | 0.34 | 0.30 |
Net realized and unrealized gain (loss) on investments | 0.94 | (1.55) | 2.93 | 9.32 | (4.05) | (0.27) |
Total from investment operations | 1.06 | (1.27) | 3.14 | 9.54 | (3.71) | 0.03 |
Less distributions | ||||||
From net investment income | — | (0.29) | (0.22) | (0.33) | (0.30) | (0.29) |
From net realized gain | — | (1.21) | (3.21) | — | (0.92) | (1.61) |
Total distributions | — | (1.50) | (3.43) | (0.33) | (1.22) | (1.90) |
Net asset value, end of period | $21.86 | $20.80 | $23.57 | $23.86 | $14.65 | $19.58 |
Total return (%)3 | 5.104 | (5.33) | 13.73 | 65.58 | (20.77) | 0.64 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $6,004 | $5,657 | $6,039 | $5,618 | $5,250 | $7,399 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.785 | 0.77 | 0.79 | 0.82 | 0.82 | 0.82 |
Expenses including reductions | 0.775 | 0.76 | 0.78 | 0.82 | 0.81 | 0.81 |
Net investment income | 1.165 | 1.29 | 0.84 | 1.18 | 1.69 | 1.43 |
Portfolio turnover (%) | 23 | 43 | 38 | 55 | 88 | 69 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
18 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R2 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $20.76 | $23.53 | $23.83 | $14.63 | $19.57 | $21.43 |
Net investment income2 | 0.08 | 0.20 | 0.11 | 0.15 | 0.23 | 0.22 |
Net realized and unrealized gain (loss) on investments | 0.94 | (1.56) | 2.93 | 9.31 | (4.03) | (0.27) |
Total from investment operations | 1.02 | (1.36) | 3.04 | 9.46 | (3.80) | (0.05) |
Less distributions | ||||||
From net investment income | — | (0.20) | (0.13) | (0.26) | (0.22) | (0.20) |
From net realized gain | — | (1.21) | (3.21) | — | (0.92) | (1.61) |
Total distributions | — | (1.41) | (3.34) | (0.26) | (1.14) | (1.81) |
Net asset value, end of period | $21.78 | $20.76 | $23.53 | $23.83 | $14.63 | $19.57 |
Total return (%)3 | 4.914 | (5.73) | 13.28 | 64.94 | (21.08) | 0.24 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $50 | $50 | $55 | $55 | $42 | $102 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.165 | 1.16 | 1.18 | 1.21 | 1.21 | 1.21 |
Expenses including reductions | 1.155 | 1.15 | 1.17 | 1.20 | 1.20 | 1.20 |
Net investment income | 0.785 | 0.90 | 0.43 | 0.80 | 1.17 | 1.02 |
Portfolio turnover (%) | 23 | 43 | 38 | 55 | 88 | 69 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 19 |
CLASS R4 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $20.80 | $23.58 | $23.87 | $14.65 | $19.59 | $21.45 |
Net investment income2 | 0.11 | 0.25 | 0.17 | 0.20 | 0.30 | 0.27 |
Net realized and unrealized gain (loss) on investments | 0.94 | (1.57) | 2.94 | 9.32 | (4.05) | (0.27) |
Total from investment operations | 1.05 | (1.32) | 3.11 | 9.52 | (3.75) | — |
Less distributions | ||||||
From net investment income | — | (0.25) | (0.19) | (0.30) | (0.27) | (0.25) |
From net realized gain | — | (1.21) | (3.21) | — | (0.92) | (1.61) |
Total distributions | — | (1.46) | (3.40) | (0.30) | (1.19) | (1.86) |
Net asset value, end of period | $21.85 | $20.80 | $23.58 | $23.87 | $14.65 | $19.59 |
Total return (%)3 | 5.054 | (5.52) | 13.58 | 65.34 | (20.87) | 0.52 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $57 | $49 | $62 | $62 | $74 | $143 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.015 | 1.01 | 1.03 | 1.06 | 1.06 | 1.06 |
Expenses including reductions | 0.905 | 0.90 | 0.92 | 0.95 | 0.95 | 0.95 |
Net investment income | 1.035 | 1.14 | 0.70 | 1.06 | 1.50 | 1.26 |
Portfolio turnover (%) | 23 | 43 | 38 | 55 | 88 | 69 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
20 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R5 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $20.85 | $23.63 | $23.91 | $14.67 | $19.62 | $21.48 |
Net investment income2 | 0.13 | 0.29 | 0.23 | 0.23 | 0.34 | 0.31 |
Net realized and unrealized gain (loss) on investments | 0.94 | (1.56) | 2.94 | 9.35 | (4.06) | (0.26) |
Total from investment operations | 1.07 | (1.27) | 3.17 | 9.58 | (3.72) | 0.05 |
Less distributions | ||||||
From net investment income | — | (0.30) | (0.24) | (0.34) | (0.31) | (0.30) |
From net realized gain | — | (1.21) | (3.21) | — | (0.92) | (1.61) |
Total distributions | — | (1.51) | (3.45) | (0.34) | (1.23) | (1.91) |
Net asset value, end of period | $21.92 | $20.85 | $23.63 | $23.91 | $14.67 | $19.62 |
Total return (%)3 | 5.134 | (5.31) | 13.82 | 65.67 | (20.74) | 0.75 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $59 | $59 | $60 | $40 | $61 | $166 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.715 | 0.71 | 0.73 | 0.76 | 0.76 | 0.76 |
Expenses including reductions | 0.705 | 0.71 | 0.72 | 0.75 | 0.75 | 0.75 |
Net investment income | 1.225 | 1.35 | 0.93 | 1.24 | 1.70 | 1.48 |
Portfolio turnover (%) | 23 | 43 | 38 | 55 | 88 | 69 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 21 |
CLASS R6 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $20.85 | $23.62 | $23.91 | $14.67 | $19.61 | $21.48 |
Net investment income2 | 0.14 | 0.31 | 0.24 | 0.24 | 0.36 | 0.32 |
Net realized and unrealized gain (loss) on investments | 0.93 | (1.56) | 2.93 | 9.35 | (4.06) | (0.27) |
Total from investment operations | 1.07 | (1.25) | 3.17 | 9.59 | (3.70) | 0.05 |
Less distributions | ||||||
From net investment income | — | (0.31) | (0.25) | (0.35) | (0.32) | (0.31) |
From net realized gain | — | (1.21) | (3.21) | — | (0.92) | (1.61) |
Total distributions | — | (1.52) | (3.46) | (0.35) | (1.24) | (1.92) |
Net asset value, end of period | $21.92 | $20.85 | $23.62 | $23.91 | $14.67 | $19.61 |
Total return (%)3 | 5.134 | (5.22) | 13.82 | 65.74 | (20.66) | 0.76 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $3,784 | $3,846 | $4,009 | $3,844 | $3,369 | $4,584 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.665 | 0.66 | 0.68 | 0.71 | 0.71 | 0.71 |
Expenses including reductions | 0.655 | 0.66 | 0.68 | 0.71 | 0.70 | 0.70 |
Net investment income | 1.285 | 1.40 | 0.95 | 1.30 | 1.81 | 1.54 |
Portfolio turnover (%) | 23 | 43 | 38 | 55 | 88 | 69 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
22 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS NAV SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $20.86 | $23.63 | $23.92 | $14.68 | $19.62 | $21.49 |
Net investment income2 | 0.14 | 0.31 | 0.24 | 0.25 | 0.36 | 0.33 |
Net realized and unrealized gain (loss) on investments | 0.93 | (1.56) | 2.93 | 9.34 | (4.06) | (0.28) |
Total from investment operations | 1.07 | (1.25) | 3.17 | 9.59 | (3.70) | 0.05 |
Less distributions | ||||||
From net investment income | — | (0.31) | (0.25) | (0.35) | (0.32) | (0.31) |
From net realized gain | — | (1.21) | (3.21) | — | (0.92) | (1.61) |
Total distributions | — | (1.52) | (3.46) | (0.35) | (1.24) | (1.92) |
Net asset value, end of period | $21.93 | $20.86 | $23.63 | $23.92 | $14.68 | $19.62 |
Total return (%)3 | 5.134 | (5.20) | 13.83 | 65.71 | (20.64) | 0.77 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,083 | $1,151 | $1,372 | $1,486 | $887 | $1,105 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.665 | 0.65 | 0.68 | 0.70 | 0.70 | 0.70 |
Expenses including reductions | 0.655 | 0.65 | 0.67 | 0.70 | 0.69 | 0.69 |
Net investment income | 1.285 | 1.40 | 0.95 | 1.31 | 1.83 | 1.54 |
Portfolio turnover (%) | 23 | 43 | 38 | 55 | 88 | 69 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK 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 |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 27 |
Class | Expense reduction |
Class A | $44,077 |
Class C | 2,736 |
Class I | 217,933 |
Class R2 | 1,835 |
Class R4 | 1,735 |
Class | Expense reduction |
Class R5 | $2,242 |
Class R6 | 141,540 |
Class NAV | 42,189 |
Total | $454,287 |
Class | Rule 12b-1 Fee | Service fee |
Class A | 0.30% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
Class R4 | 0.25% | 0.10% |
Class R5 | — | 0.05% |
28 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class A | $1,505,784 | $721,082 |
Class C | 374,398 | 44,917 |
Class I | — | 3,560,766 |
Class R2 | 124,960 | 1,304 |
Class R4 | 82,055 | 1,236 |
Class R5 | 15,154 | 1,589 |
Class R6 | — | 100,703 |
Total | $2,102,351 | $4,431,597 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $25,220,000 | 5 | 5.797% | $20,306 |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Fund | 29 |
Six Months Ended 9-30-23 | Year Ended 3-31-23 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 3,812,076 | $85,636,556 | 11,487,537 | $260,789,383 |
Distributions reinvested | — | — | 3,232,754 | 69,439,558 |
Repurchased | (6,152,413) | (138,549,978) | (9,230,692) | (208,120,479) |
Net increase (decrease) | (2,340,337) | $(52,913,422) | 5,489,599 | $122,108,462 |
Class C shares | ||||
Sold | 171,641 | $3,530,155 | 540,145 | $11,257,476 |
Distributions reinvested | — | — | 255,062 | 5,034,920 |
Repurchased | (809,798) | (16,718,869) | (1,952,915) | (40,475,652) |
Net decrease | (638,157) | $(13,188,714) | (1,157,708) | $(24,183,256) |
Class I shares | ||||
Sold | 33,432,854 | $716,126,310 | 78,536,957 | $1,698,598,666 |
Distributions reinvested | — | — | 14,783,198 | 303,794,722 |
Repurchased | (30,782,733) | (664,877,252) | (77,508,306) | (1,673,382,213) |
Net increase | 2,650,121 | $51,249,058 | 15,811,849 | $329,011,175 |
Class R2 shares | ||||
Sold | 121,025 | $2,611,470 | 350,725 | $7,554,442 |
Distributions reinvested | — | — | 130,818 | 2,686,996 |
Repurchased | (229,131) | (4,907,834) | (415,824) | (8,986,710) |
Net increase (decrease) | (108,106) | $(2,296,364) | 65,719 | $1,254,728 |
Class R4 shares | ||||
Sold | 780,882 | $17,288,336 | 365,406 | $7,960,704 |
Distributions reinvested | — | — | 159,835 | 3,287,805 |
Repurchased | (526,371) | (11,292,621) | (783,372) | (17,255,440) |
Net increase (decrease) | 254,511 | $5,995,715 | (258,131) | $(6,006,931) |
Class R5 shares | ||||
Sold | 238,369 | $5,146,750 | 605,864 | $13,215,144 |
Distributions reinvested | — | — | 180,756 | 3,723,568 |
Repurchased | (393,410) | (8,652,166) | (506,554) | (11,099,083) |
Net increase (decrease) | (155,041) | $(3,505,416) | 280,066 | $5,839,629 |
30 | JOHN HANCOCK Disciplined Value Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-23 | Year Ended 3-31-23 | |||
Shares | Amount | Shares | Amount | |
Class R6 shares | ||||
Sold | 10,521,977 | $226,649,998 | 38,201,528 | $836,424,332 |
Distributions reinvested | — | — | 11,897,340 | 244,966,235 |
Repurchased | (22,429,967) | (482,785,596) | (35,301,198) | (766,137,436) |
Net increase (decrease) | (11,907,990) | $(256,135,598) | 14,797,670 | $315,253,131 |
Class NAV shares | ||||
Sold | 2,000,350 | $42,771,370 | 2,897,018 | $61,504,415 |
Distributions reinvested | — | — | 3,834,053 | 78,981,499 |
Repurchased | (7,823,778) | (172,461,673) | (9,597,497) | (213,276,325) |
Net decrease | (5,823,428) | $(129,690,303) | (2,866,426) | $(72,790,411) |
Total net increase (decrease) | (18,068,427) | $(400,485,044) | 32,162,638 | $670,486,527 |
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* | 5,965,477 | $7,490,790 | $581,635,326 | $(529,487,174) | $255 | $(10,074) | $311,629 | — | $59,629,123 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
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; |
(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; |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 33 |
(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 |
(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 |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 35 |
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; |
(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 DISCIPLINED VALUE FUND | 37 |
(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
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Deborah C. Jackson
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
David J. Pyle, CFA
Joshua White, CFA
You can also contact us: | ||
800-225-5291 | Regular mail: | Express mail: |
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE FUND | 39 |
GOVERNANCE FUNDS
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we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
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United States and Europe
Manulife Investment Management
John Hancock Investment Management
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 1 |
2 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2023 (% of net assets) | |
Ameriprise Financial, Inc. | 2.2 |
AMETEK, Inc. | 1.8 |
Parker-Hannifin Corp. | 1.7 |
Cencora, Inc. | 1.7 |
AutoZone, Inc. | 1.6 |
Halliburton Company | 1.6 |
CenterPoint Energy, Inc. | 1.5 |
Textron, Inc. | 1.4 |
Howmet Aerospace, Inc. | 1.4 |
Dover Corp. | 1.3 |
TOTAL | 16.2 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 3 |
4 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
Account value on 4-1-2023 | Ending value on 9-30-2023 | Expenses paid during period ended 9-30-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,028.50 | $5.68 | 1.12% |
Hypothetical example | 1,000.00 | 1,019.40 | 5.65 | 1.12% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,024.30 | 9.46 | 1.87% |
Hypothetical example | 1,000.00 | 1,015.70 | 9.42 | 1.87% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,029.90 | 4.42 | 0.87% |
Hypothetical example | 1,000.00 | 1,020.70 | 4.40 | 0.87% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,027.60 | 6.34 | 1.25% |
Hypothetical example | 1,000.00 | 1,018.80 | 6.31 | 1.25% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,028.70 | 5.07 | 1.00% |
Hypothetical example | 1,000.00 | 1,020.00 | 5.05 | 1.00% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,030.30 | 3.81 | 0.75% |
Hypothetical example | 1,000.00 | 1,021.30 | 3.79 | 0.75% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 5 |
Shares | Value | ||||
Common stocks 97.3% | $19,351,134,942 | ||||
(Cost $14,877,957,461) | |||||
Communication services 1.8% | 350,611,976 | ||||
Entertainment 0.7% | |||||
Take-Two Interactive Software, Inc. (A) | 987,457 | 138,629,088 | |||
Interactive media and services 0.4% | |||||
Match Group, Inc. (A) | 1,941,387 | 76,053,836 | |||
Media 0.7% | |||||
TEGNA, Inc. | 3,750,589 | 54,646,082 | |||
The Interpublic Group of Companies, Inc. | 2,836,112 | 81,282,970 | |||
Consumer discretionary 14.2% | 2,836,309,853 | ||||
Automobile components 1.0% | |||||
Gentex Corp. | 4,238,328 | 137,915,193 | |||
Lear Corp. | 449,968 | 60,385,706 | |||
Automobiles 0.5% | |||||
Harley-Davidson, Inc. | 2,958,825 | 97,818,755 | |||
Broadline retail 0.7% | |||||
eBay, Inc. | 2,994,987 | 132,048,977 | |||
Distributors 0.3% | |||||
LKQ Corp. | 1,162,433 | 57,552,058 | |||
Diversified consumer services 0.9% | |||||
frontdoor, Inc. (A) | 3,510,776 | 107,394,638 | |||
H&R Block, Inc. | 1,943,426 | 83,683,924 | |||
Hotels, restaurants and leisure 4.4% | |||||
Boyd Gaming Corp. | 1,408,721 | 85,692,498 | |||
Churchill Downs, Inc. | 312,124 | 36,218,869 | |||
Darden Restaurants, Inc. | 777,914 | 111,412,843 | |||
Domino’s Pizza, Inc. | 184,714 | 69,967,816 | |||
Expedia Group, Inc. (A) | 1,349,769 | 139,120,691 | |||
International Game Technology PLC | 1,896,299 | 57,495,786 | |||
Las Vegas Sands Corp. | 1,871,974 | 85,811,288 | |||
Marriott International, Inc., Class A | 844,826 | 166,058,999 | |||
Wyndham Hotels & Resorts, Inc. | 1,798,073 | 125,037,996 | |||
Household durables 2.7% | |||||
Garmin, Ltd. | 1,046,783 | 110,121,572 | |||
Mohawk Industries, Inc. (A) | 104,647 | 8,979,759 | |||
NVR, Inc. (A) | 20,722 | 123,571,503 | |||
Tempur Sealy International, Inc. | 4,026,911 | 174,526,323 | |||
Whirlpool Corp. | 921,892 | 123,256,960 |
6 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Consumer discretionary (continued) | |||||
Leisure products 0.7% | |||||
Polaris, Inc. | 1,348,400 | $140,422,376 | |||
Specialty retail 2.7% | |||||
AutoZone, Inc. (A) | 128,033 | 325,202,540 | |||
Ross Stores, Inc. | 1,889,373 | 213,404,680 | |||
Textiles, apparel and luxury goods 0.3% | |||||
Ralph Lauren Corp. | 544,475 | 63,208,103 | |||
Consumer staples 2.1% | 411,769,035 | ||||
Beverages 0.5% | |||||
Coca-Cola Europacific Partners PLC | 1,635,060 | 102,158,549 | |||
Consumer staples distribution and retail 1.2% | |||||
U.S. Foods Holding Corp. (A) | 5,653,310 | 224,436,407 | |||
Personal care products 0.4% | |||||
Kenvue, Inc. | 4,241,737 | 85,174,079 | |||
Energy 5.7% | 1,127,390,216 | ||||
Energy equipment and services 2.9% | |||||
Halliburton Company | 7,742,278 | 313,562,259 | |||
Schlumberger, Ltd. | 2,562,817 | 149,412,231 | |||
Weatherford International PLC (A) | 1,316,087 | 118,882,139 | |||
Oil, gas and consumable fuels 2.8% | |||||
Devon Energy Corp. | 2,260,508 | 107,826,232 | |||
Diamondback Energy, Inc. | 635,229 | 98,384,268 | |||
Marathon Petroleum Corp. | 879,854 | 133,157,104 | |||
Pioneer Natural Resources Company | 573,542 | 131,656,566 | |||
Valero Energy Corp. | 525,788 | 74,509,417 | |||
Financials 15.2% | 3,022,959,599 | ||||
Banks 2.1% | |||||
East West Bancorp, Inc. | 1,139,713 | 60,074,272 | |||
Fifth Third Bancorp | 7,515,849 | 190,376,455 | |||
Huntington Bancshares, Inc. | 15,685,443 | 163,128,607 | |||
Capital markets 4.2% | |||||
Ameriprise Financial, Inc. | 1,306,546 | 430,742,084 | |||
Ares Management Corp., Class A | 1,453,163 | 149,486,878 | |||
Evercore, Inc., Class A | 798,503 | 110,097,594 | |||
LPL Financial Holdings, Inc. | 602,477 | 143,178,659 | |||
Consumer finance 1.5% | |||||
Discover Financial Services | 2,645,484 | 229,178,279 | |||
SLM Corp. | 2,514,422 | 34,246,428 | |||
Synchrony Financial | 1,481,366 | 45,285,359 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 7 |
Shares | Value | ||||
Financials (continued) | |||||
Financial services 1.6% | |||||
Fidelity National Information Services, Inc. | 1,117,378 | $61,757,482 | |||
FleetCor Technologies, Inc. (A) | 409,908 | 104,665,909 | |||
Global Payments, Inc. | 536,461 | 61,902,235 | |||
Rocket Companies, Inc., Class A (A)(B) | 4,435,768 | 36,284,582 | |||
Voya Financial, Inc. | 748,330 | 49,726,529 | |||
Insurance 5.8% | |||||
Aflac, Inc. | 1,682,819 | 129,156,358 | |||
Aon PLC, Class A | 401,648 | 130,222,315 | |||
Arch Capital Group, Ltd. (A) | 1,294,004 | 103,145,059 | |||
Arthur J. Gallagher & Company | 690,173 | 157,311,132 | |||
Everest Group, Ltd. | 456,924 | 169,824,943 | |||
First American Financial Corp. | 2,404,544 | 135,832,691 | |||
Globe Life, Inc. | 1,369,888 | 148,947,922 | |||
RenaissanceRe Holdings, Ltd. | 426,121 | 84,337,868 | |||
Ryan Specialty Holdings, Inc. (A) | 753,471 | 36,467,996 | |||
The Travelers Companies, Inc. | 352,593 | 57,581,963 | |||
Health care 7.8% | 1,549,342,471 | ||||
Health care equipment and supplies 0.6% | |||||
Zimmer Biomet Holdings, Inc. | 1,086,633 | 121,941,955 | |||
Health care providers and services 4.5% | |||||
AMN Healthcare Services, Inc. (A) | 829,126 | 70,624,953 | |||
Cencora, Inc. | 1,823,735 | 328,217,588 | |||
Centene Corp. (A) | 1,375,719 | 94,759,525 | |||
HCA Healthcare, Inc. | 278,240 | 68,441,475 | |||
Humana, Inc. | 207,214 | 100,813,755 | |||
Laboratory Corp. of America Holdings | 320,566 | 64,449,794 | |||
Molina Healthcare, Inc. (A) | 505,858 | 165,865,780 | |||
Life sciences tools and services 2.7% | |||||
Avantor, Inc. (A) | 6,805,343 | 143,456,630 | |||
Fortrea Holdings, Inc. (A) | 2,760,297 | 78,916,891 | |||
ICON PLC (A) | 993,708 | 244,700,595 | |||
IQVIA Holdings, Inc. (A) | 341,314 | 67,153,530 | |||
Industrials 24.3% | 4,829,751,198 | ||||
Aerospace and defense 5.3% | |||||
BWX Technologies, Inc. | 2,237,268 | 167,750,355 | |||
Curtiss-Wright Corp. | 895,134 | 175,115,064 | |||
Hexcel Corp. | 1,557,467 | 101,453,400 | |||
Howmet Aerospace, Inc. | 5,910,310 | 273,351,838 | |||
L3Harris Technologies, Inc. | 299,391 | 52,129,961 | |||
Textron, Inc. | 3,590,753 | 280,581,439 |
8 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Industrials (continued) | |||||
Air freight and logistics 0.9% | |||||
Expeditors International of Washington, Inc. | 1,578,632 | $180,958,586 | |||
Building products 3.0% | |||||
Advanced Drainage Systems, Inc. | 640,496 | 72,907,660 | |||
Allegion PLC | 1,798,995 | 187,455,279 | |||
Builders FirstSource, Inc. (A) | 528,842 | 65,835,541 | |||
Masco Corp. | 3,605,652 | 192,722,099 | |||
Resideo Technologies, Inc. (A) | 4,204,414 | 66,429,741 | |||
Commercial services and supplies 0.8% | |||||
RB Global, Inc. | 2,569,056 | 160,566,000 | |||
Electrical equipment 3.5% | |||||
AMETEK, Inc. | 2,411,897 | 356,381,901 | |||
Atkore, Inc. (A) | 208,036 | 31,036,891 | |||
Eaton Corp. PLC | 786,016 | 167,641,492 | |||
nVent Electric PLC | 2,450,082 | 129,829,845 | |||
Ground transportation 1.6% | |||||
Landstar System, Inc. | 868,617 | 153,693,092 | |||
Norfolk Southern Corp. | 871,757 | 171,675,106 | |||
Machinery 4.8% | |||||
Dover Corp. | 1,850,515 | 258,165,348 | |||
Fortive Corp. | 1,592,453 | 118,096,314 | |||
ITT, Inc. | 827,712 | 81,041,282 | |||
Otis Worldwide Corp. | 1,987,587 | 159,623,112 | |||
Parker-Hannifin Corp. | 873,980 | 340,432,690 | |||
Passenger airlines 0.3% | |||||
Alaska Air Group, Inc. (A) | 1,767,363 | 65,533,820 | |||
Professional services 2.9% | |||||
ASGN, Inc. (A) | 746,562 | 60,979,184 | |||
Leidos Holdings, Inc. | 747,987 | 68,934,482 | |||
Robert Half, Inc. | 1,114,384 | 81,662,060 | |||
Science Applications International Corp. | 1,045,996 | 110,394,418 | |||
SS&C Technologies Holdings, Inc. | 2,821,219 | 148,226,846 | |||
TransUnion | 1,435,792 | 103,075,508 | |||
Trading companies and distributors 1.2% | |||||
Ferguson PLC | 1,107,630 | 182,171,906 | |||
WESCO International, Inc. | 444,298 | 63,898,938 | |||
Information technology 8.7% | 1,735,706,600 | ||||
Electronic equipment, instruments and components 2.1% | |||||
CDW Corp. | 399,632 | 80,629,752 | |||
Flex, Ltd. (A) | 3,506,998 | 94,618,806 | |||
TE Connectivity, Ltd. | 1,329,287 | 164,206,823 | |||
Zebra Technologies Corp., Class A (A) | 366,015 | 86,573,528 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 9 |
Shares | Value | ||||
Information technology (continued) | |||||
IT services 0.7% | |||||
Cognizant Technology Solutions Corp., Class A | 2,062,761 | $139,731,430 | |||
Semiconductors and semiconductor equipment 2.8% | |||||
KLA Corp. | 149,447 | 68,545,361 | |||
Microchip Technology, Inc. | 1,458,224 | 113,814,383 | |||
NXP Semiconductors NV | 474,398 | 94,841,648 | |||
Qorvo, Inc. (A) | 1,027,725 | 98,116,906 | |||
Teradyne, Inc. | 1,780,512 | 178,870,236 | |||
Software 1.7% | |||||
Check Point Software Technologies, Ltd. (A) | 1,454,050 | 193,795,784 | |||
Gen Digital, Inc. | 7,660,693 | 135,441,052 | |||
Technology hardware, storage and peripherals 1.4% | |||||
Dell Technologies, Inc., Class C | 2,908,174 | 200,373,189 | |||
NetApp, Inc. | 1,135,315 | 86,147,702 | |||
Materials 6.3% | 1,250,179,955 | ||||
Chemicals 4.6% | |||||
Axalta Coating Systems, Ltd. (A) | 4,112,541 | 110,627,353 | |||
CF Industries Holdings, Inc. | 1,427,311 | 122,377,645 | |||
Corteva, Inc. | 3,654,365 | 186,957,313 | |||
DuPont de Nemours, Inc. | 2,828,335 | 210,965,508 | |||
FMC Corp. | 1,214,503 | 81,335,266 | |||
PPG Industries, Inc. | 1,563,564 | 202,950,607 | |||
Containers and packaging 1.2% | |||||
Avery Dennison Corp. | 765,808 | 139,890,147 | |||
Packaging Corp. of America | 614,885 | 94,415,592 | |||
Metals and mining 0.5% | |||||
Teck Resources, Ltd., Class B | 2,336,053 | 100,660,524 | |||
Real estate 6.8% | 1,351,577,327 | ||||
Health care REITs 1.2% | |||||
Healthpeak Properties, Inc. | 4,637,819 | 85,150,357 | |||
Welltower, Inc. | 1,966,700 | 161,112,064 | |||
Industrial REITs 0.7% | |||||
EastGroup Properties, Inc. | 403,615 | 67,214,006 | |||
Rexford Industrial Realty, Inc. | 1,292,446 | 63,782,210 | |||
Residential REITs 1.9% | |||||
American Homes 4 Rent, Class A | 2,739,214 | 92,284,120 | |||
Equity LifeStyle Properties, Inc. | 926,166 | 59,006,036 | |||
Equity Residential | 2,052,841 | 120,522,295 | |||
Essex Property Trust, Inc. | 523,453 | 111,019,147 | |||
Retail REITs 1.8% | |||||
Regency Centers Corp. | 3,066,259 | 182,258,435 |
10 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Real estate (continued) | |||||
Retail REITs (continued) | |||||
Simon Property Group, Inc. | 1,556,215 | $168,117,906 | |||
Specialized REITs 1.2% | |||||
Lamar Advertising Company, Class A | 1,671,443 | 139,515,347 | |||
VICI Properties, Inc. | 3,491,251 | 101,595,404 | |||
Utilities 4.4% | 885,536,712 | ||||
Electric utilities 2.3% | |||||
American Electric Power Company, Inc. | 2,087,804 | 157,044,617 | |||
Entergy Corp. | 2,105,573 | 194,765,503 | |||
FirstEnergy Corp. | 3,387,305 | 115,778,085 | |||
Multi-utilities 2.1% | |||||
CenterPoint Energy, Inc. | 11,266,208 | 302,497,681 | |||
DTE Energy Company | 1,162,881 | 115,450,826 | |||
Yield (%) | Shares | Value | |||
Short-term investments 2.7% | $546,132,220 | ||||
(Cost $546,133,809) | |||||
Short-term funds 2.7% | 546,132,220 | ||||
John Hancock Collateral Trust (C) | 5.2943(D) | 1,512,685 | 15,120,351 | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 5.2787(D) | 531,011,869 | 531,011,869 |
Total investments (Cost $15,424,091,270) 100.0% | $19,897,267,162 | ||||
Other assets and liabilities, net (0.0%) | (4,807,657) | ||||
Total net assets 100.0% | $19,892,459,505 |
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) | All or a portion of this security is on loan as of 9-30-23. |
(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 9-30-23. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 11 |
Assets | |
Unaffiliated investments, at value (Cost $15,408,969,330) including $14,635,409 of securities loaned | $19,882,146,811 |
Affiliated investments, at value (Cost $15,121,940) | 15,120,351 |
Total investments, at value (Cost $15,424,091,270) | 19,897,267,162 |
Cash | 182,981 |
Dividends and interest receivable | 20,998,224 |
Receivable for fund shares sold | 37,480,154 |
Receivable for investments sold | 66,214,840 |
Receivable for securities lending income | 324,014 |
Other assets | 1,840,555 |
Total assets | 20,024,307,930 |
Liabilities | |
Payable for investments purchased | 93,310,111 |
Payable for fund shares repurchased | 19,873,612 |
Payable upon return of securities loaned | 15,115,550 |
Payable to affiliates | |
Accounting and legal services fees | 1,029,636 |
Transfer agent fees | 1,361,815 |
Distribution and service fees | 32,557 |
Other liabilities and accrued expenses | 1,125,144 |
Total liabilities | 131,848,425 |
Net assets | $19,892,459,505 |
Net assets consist of | |
Paid-in capital | $14,791,305,201 |
Total distributable earnings (loss) | 5,101,154,304 |
Net assets | $19,892,459,505 |
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 ($1,300,063,691 ÷ 53,698,713 shares)1 | $24.21 |
Class C ($54,501,316 ÷ 2,268,814 shares)1 | $24.02 |
Class I ($12,668,495,399 ÷ 496,896,277 shares) | $25.50 |
Class R2 ($82,195,725 ÷ 3,246,032 shares) | $25.32 |
Class R4 ($182,500,382 ÷ 7,172,671 shares) | $25.44 |
Class R6 ($5,604,702,992 ÷ 219,761,503 shares) | $25.50 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $25.48 |
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 | $187,072,627 |
Interest | 821 |
Securities lending | 1,560,265 |
Less foreign taxes withheld | (816,883) |
Total investment income | 187,816,830 |
Expenses | |
Investment management fees | 71,186,519 |
Distribution and service fees | 2,478,669 |
Accounting and legal services fees | 2,076,718 |
Transfer agent fees | 8,728,432 |
Trustees’ fees | 233,068 |
Custodian fees | 1,101,689 |
State registration fees | 161,748 |
Printing and postage | 592,583 |
Professional fees | 311,234 |
Other | 209,954 |
Total expenses | 87,080,614 |
Less expense reductions | (818,237) |
Net expenses | 86,262,377 |
Net investment income | 101,554,453 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 479,130,868 |
Affiliated investments | 5,099 |
479,135,967 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | 290,893 |
Affiliated investments | (1,589) |
289,304 | |
Net realized and unrealized gain | 479,425,271 |
Increase in net assets from operations | $580,979,724 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 13 |
Six months ended 9-30-23 (unaudited) | Year ended 3-31-23 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $101,554,453 | $212,538,216 |
Net realized gain | 479,135,967 | 448,458,865 |
Change in net unrealized appreciation (depreciation) | 289,304 | (1,813,904,818) |
Increase (decrease) in net assets resulting from operations | 580,979,724 | (1,152,907,737) |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (68,491,079) |
Class C | — | (2,338,456) |
Class I | — | (658,888,932) |
Class R2 | — | (4,080,287) |
Class R4 | — | (6,150,289) |
Class R6 | — | (236,898,601) |
Total distributions | — | (976,847,644) |
From fund share transactions | (409,333,063) | 445,042,085 |
Total increase (decrease) | 171,646,661 | (1,684,713,296) |
Net assets | ||
Beginning of period | 19,720,812,844 | 21,405,526,140 |
End of period | $19,892,459,505 | $19,720,812,844 |
14 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.54 | $26.25 | $25.33 | $14.91 | $19.08 | $22.35 |
Net investment income | 0.09 | 0.20 | 0.09 | 0.10 | 0.14 | 0.12 |
Net realized and unrealized gain (loss) on investments | 0.58 | (1.69) | 2.60 | 10.54 | (3.83) | (1.01) |
Total from investment operations | 0.67 | (1.49) | 2.69 | 10.64 | (3.69) | (0.89) |
Less distributions | ||||||
From net investment income | — | (0.19) | (0.07) | (0.14) | (0.14) | (0.13) |
From net realized gain | — | (1.03) | (1.70) | (0.08) | (0.34) | (2.25) |
Total distributions | — | (1.22) | (1.77) | (0.22) | (0.48) | (2.38) |
Net asset value, end of period | $24.21 | $23.54 | $26.25 | $25.33 | $14.91 | $19.08 |
Total return (%)3,4 | 2.855 | (5.53) | 10.91 | 71.55 | (20.06) | (2.98) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,300 | $1,363 | $1,486 | $1,204 | $782 | $1,184 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.126 | 1.12 | 1.11 | 1.12 | 1.12 | 1.11 |
Expenses including reductions | 1.126 | 1.11 | 1.10 | 1.11 | 1.12 | 1.10 |
Net investment income | 0.756 | 0.83 | 0.34 | 0.52 | 0.70 | 0.58 |
Portfolio turnover (%) | 16 | 41 | 26 | 527 | 54 | 53 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
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 | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.45 | $26.14 | $25.34 | $14.94 | $19.13 | $22.42 |
Net investment income (loss) | —2 | 0.02 | (0.12) | (0.05) | (0.01) | (0.04) |
Net realized and unrealized gain (loss) on investments | 0.57 | (1.68) | 2.62 | 10.53 | (3.84) | (1.00) |
Total from investment operations | 0.57 | (1.66) | 2.50 | 10.48 | (3.85) | (1.04) |
Less distributions | ||||||
From net realized gain | — | (1.03) | (1.70) | (0.08) | (0.34) | (2.25) |
Net asset value, end of period | $24.02 | $23.45 | $26.14 | $25.34 | $14.94 | $19.13 |
Total return (%)4,5 | 2.436 | (6.22) | 10.12 | 70.20 | (20.63) | (3.72) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $55 | $56 | $62 | $92 | $107 | $182 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.877 | 1.87 | 1.86 | 1.87 | 1.87 | 1.86 |
Expenses including reductions | 1.877 | 1.86 | 1.85 | 1.86 | 1.87 | 1.85 |
Net investment income (loss) | —7,8 | 0.08 | (0.46) | (0.23) | (0.07) | (0.19) |
Portfolio turnover (%) | 16 | 41 | 26 | 529 | 54 | 53 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Less than $0.005 per share. |
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. |
8 | Less than 0.005%. |
9 | Excludes in-kind transactions. |
16 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.76 | $27.55 | $26.49 | $15.58 | $19.91 | $23.22 |
Net investment income | 0.13 | 0.27 | 0.16 | 0.16 | 0.20 | 0.18 |
Net realized and unrealized gain (loss) on investments | 0.61 | (1.78) | 2.74 | 11.02 | (4.00) | (1.06) |
Total from investment operations | 0.74 | (1.51) | 2.90 | 11.18 | (3.80) | (0.88) |
Less distributions | ||||||
From net investment income | — | (0.25) | (0.14) | (0.19) | (0.19) | (0.18) |
From net realized gain | — | (1.03) | (1.70) | (0.08) | (0.34) | (2.25) |
Total distributions | — | (1.28) | (1.84) | (0.27) | (0.53) | (2.43) |
Net asset value, end of period | $25.50 | $24.76 | $27.55 | $26.49 | $15.58 | $19.91 |
Total return (%)3 | 2.994 | (5.31) | 11.23 | 71.97 | (19.84) | (2.79) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $12,668 | $13,215 | $14,847 | $11,932 | $6,349 | $7,784 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.875 | 0.87 | 0.86 | 0.87 | 0.87 | 0.88 |
Expenses including reductions | 0.875 | 0.86 | 0.85 | 0.86 | 0.87 | 0.87 |
Net investment income | 0.995 | 1.08 | 0.59 | 0.78 | 0.97 | 0.82 |
Portfolio turnover (%) | 16 | 41 | 26 | 526 | 54 | 53 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
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 | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.64 | $27.41 | $26.37 | $15.53 | $19.85 | $23.14 |
Net investment income | 0.08 | 0.17 | 0.05 | 0.08 | 0.11 | 0.09 |
Net realized and unrealized gain (loss) on investments | 0.60 | (1.76) | 2.73 | 10.96 | (3.98) | (1.04) |
Total from investment operations | 0.68 | (1.59) | 2.78 | 11.04 | (3.87) | (0.95) |
Less distributions | ||||||
From net investment income | — | (0.15) | (0.04) | (0.12) | (0.11) | (0.09) |
From net realized gain | — | (1.03) | (1.70) | (0.08) | (0.34) | (2.25) |
Total distributions | — | (1.18) | (1.74) | (0.20) | (0.45) | (2.34) |
Net asset value, end of period | $25.32 | $24.64 | $27.41 | $26.37 | $15.53 | $19.85 |
Total return (%)3 | 2.764 | (5.65) | 10.78 | 71.23 | (20.14) | (3.14) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $82 | $89 | $103 | $106 | $77 | $131 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.265 | 1.26 | 1.25 | 1.25 | 1.26 | 1.27 |
Expenses including reductions | 1.255 | 1.25 | 1.24 | 1.24 | 1.25 | 1.26 |
Net investment income | 0.615 | 0.68 | 0.18 | 0.39 | 0.54 | 0.41 |
Portfolio turnover (%) | 16 | 41 | 26 | 526 | 54 | 53 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
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 | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.73 | $27.51 | $26.46 | $15.57 | $19.90 | $23.20 |
Net investment income | 0.11 | 0.24 | 0.12 | 0.14 | 0.17 | 0.15 |
Net realized and unrealized gain (loss) on investments | 0.60 | (1.77) | 2.73 | 10.99 | (4.00) | (1.05) |
Total from investment operations | 0.71 | (1.53) | 2.85 | 11.13 | (3.83) | (0.90) |
Less distributions | ||||||
From net investment income | — | (0.22) | (0.10) | (0.16) | (0.16) | (0.15) |
From net realized gain | — | (1.03) | (1.70) | (0.08) | (0.34) | (2.25) |
Total distributions | — | (1.25) | (1.80) | (0.24) | (0.50) | (2.40) |
Net asset value, end of period | $25.44 | $24.73 | $27.51 | $26.46 | $15.57 | $19.90 |
Total return (%)3 | 2.874 | (5.42) | 11.06 | 71.69 | (19.96) | (2.90) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $183 | $133 | $141 | $130 | $55 | $74 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.115 | 1.11 | 1.10 | 1.11 | 1.11 | 1.12 |
Expenses including reductions | 1.005 | 1.00 | 0.99 | 1.00 | 1.00 | 1.01 |
Net investment income | 0.875 | 0.94 | 0.43 | 0.65 | 0.81 | 0.68 |
Portfolio turnover (%) | 16 | 41 | 26 | 526 | 54 | 53 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
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 | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.75 | $27.54 | $26.48 | $15.58 | $19.90 | $23.21 |
Net investment income | 0.14 | 0.30 | 0.19 | 0.18 | 0.23 | 0.21 |
Net realized and unrealized gain (loss) on investments | 0.61 | (1.78) | 2.74 | 11.01 | (4.00) | (1.07) |
Total from investment operations | 0.75 | (1.48) | 2.93 | 11.19 | (3.77) | (0.86) |
Less distributions | ||||||
From net investment income | — | (0.28) | (0.17) | (0.21) | (0.21) | (0.20) |
From net realized gain | — | (1.03) | (1.70) | (0.08) | (0.34) | (2.25) |
Total distributions | — | (1.31) | (1.87) | (0.29) | (0.55) | (2.45) |
Net asset value, end of period | $25.50 | $24.75 | $27.54 | $26.48 | $15.58 | $19.90 |
Total return (%)3 | 3.034 | (5.21) | 11.36 | 72.06 | (19.72) | (2.66) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $5,605 | $4,866 | $4,768 | $3,778 | $2,546 | $2,994 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.765 | 0.76 | 0.75 | 0.76 | 0.76 | 0.77 |
Expenses including reductions | 0.755 | 0.75 | 0.75 | 0.75 | 0.76 | 0.76 |
Net investment income | 1.135 | 1.20 | 0.69 | 0.88 | 1.08 | 0.96 |
Portfolio turnover (%) | 16 | 41 | 26 | 526 | 54 | 53 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
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 |
24 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT |
Class | Expense reduction |
Class A | $49,689 |
Class C | 2,051 |
Class I | 472,408 |
Class R2 | 3,214 |
Class | Expense reduction |
Class R4 | $5,944 |
Class R6 | 203,963 |
Total | $737,269 |
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 | $1,697,974 | $813,420 |
Class C | 280,187 | 33,552 |
Class I | — | 7,731,824 |
Class R2 | 218,225 | 2,290 |
Class R4 | 282,283 | 4,121 |
Class R6 | — | 143,225 |
Total | $2,478,669 | $8,728,432 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $5,100,000 | 1 | 5.795% | $821 |
26 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-23 | Year Ended 3-31-23 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 4,369,961 | $105,965,457 | 13,852,974 | $329,231,098 |
Distributions reinvested | — | — | 2,704,219 | 61,764,360 |
Repurchased | (8,558,869) | (207,493,003) | (15,257,713) | (364,805,578) |
Net increase (decrease) | (4,188,908) | $(101,527,546) | 1,299,480 | $26,189,880 |
Class C shares | ||||
Sold | 214,773 | $5,214,134 | 641,646 | $15,346,063 |
Distributions reinvested | — | — | 97,300 | 2,218,445 |
Repurchased | (320,379) | (7,727,108) | (718,198) | (17,155,641) |
Net increase (decrease) | (105,606) | $(2,512,974) | 20,748 | $408,867 |
Class I shares | ||||
Sold | 48,658,620 | $1,245,146,474 | 117,343,311 | $2,967,254,216 |
Distributions reinvested | — | — | 24,894,249 | 597,710,907 |
Repurchased | (85,462,027) | (2,166,623,383) | (147,506,347) | (3,736,180,507) |
Net decrease | (36,803,407) | $(921,476,909) | (5,268,787) | $(171,215,384) |
Class R2 shares | ||||
Sold | 321,761 | $8,127,821 | 783,545 | $19,469,456 |
Distributions reinvested | — | — | 154,604 | 3,698,119 |
Repurchased | (681,202) | (17,374,470) | (1,079,417) | (27,006,900) |
Net decrease | (359,441) | $(9,246,649) | (141,268) | $(3,839,325) |
Class R4 shares | ||||
Sold | 3,539,600 | $90,396,014 | 1,139,876 | $28,838,842 |
Distributions reinvested | — | — | 256,477 | 6,150,289 |
Repurchased | (1,739,318) | (44,597,034) | (1,133,100) | (28,644,353) |
Net increase | 1,800,282 | $45,798,980 | 263,253 | $6,344,778 |
Class R6 shares | ||||
Sold | 46,188,066 | $1,164,277,699 | 52,018,688 | $1,332,338,484 |
Distributions reinvested | — | — | 9,178,130 | 220,183,349 |
Repurchased | (23,001,175) | (584,645,664) | (37,772,828) | (965,368,564) |
Net increase | 23,186,891 | $579,632,035 | 23,423,990 | $587,153,269 |
Total net increase (decrease) | (16,470,189) | $(409,333,063) | 19,597,416 | $445,042,085 |
SEMIANNUAL REPORT | JOHN HANCOCK Disciplined Value Mid Cap Fund | 27 |
Dividends and distributions | |||||||||
Affiliate | Ending share amount | Beginning value | Cost of purchases | Proceeds from shares sold | Realized gain (loss) | Change in unrealized appreciation (depreciation) | Income distributions received | Capital gain distributions received | Ending value |
John Hancock Collateral Trust* | 1,512,685 | — | $319,245,349 | $(304,128,508) | $5,099 | $(1,589) | $1,560,265 | — | $15,120,351 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
28 | JOHN HANCOCK Disciplined Value Mid Cap Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 29 |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
(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; |
30 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 31 |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
(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 |
32 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; | |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 33 |
(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) | 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. |
34 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | 35 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Deborah C. Jackson
Paul Lorentz‡
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
Joseph F. Feeney, Jr., CFA
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 |
36 | JOHN HANCOCK DISCIPLINED VALUE MID CAP FUND | SEMIANNUAL REPORT |
GOVERNANCE FUNDS
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and operate with the highest standards of conduct and integrity.
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Manulife Investment Management
John Hancock Investment Management
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 1 |
2 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2023 (% of net assets) | |
Broadcom, Inc. | 2.5 |
Microsoft Corp. | 2.2 |
IBM Corp. | 2.0 |
TotalEnergies SE | 2.0 |
AbbVie, Inc. | 1.9 |
Analog Devices, Inc. | 1.8 |
Iron Mountain, Inc. | 1.8 |
Coca-Cola Europacific Partners PLC | 1.7 |
Novartis AG | 1.7 |
Sanofi | 1.6 |
TOTAL | 19.2 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 3 |
TOP 10 COUNTRIES AS OF 9/30/2023 (% of net assets) | |
United States | 57.2 |
United Kingdom | 9.5 |
France | 7.5 |
Canada | 6.8 |
Germany | 6.0 |
Switzerland | 2.8 |
South Korea | 2.3 |
Japan | 1.8 |
Italy | 1.3 |
Taiwan | 1.0 |
TOTAL | 96.2 |
Cash and cash equivalents are not included. |
4 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 5 |
Account value on 4-1-2023 | Ending value on 9-30-2023 | Expenses paid during period ended 9-30-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $991.60 | $5.43 | 1.09% |
Hypothetical example | 1,000.00 | 1,019.60 | 5.50 | 1.09% | |
Class C | Actual expenses/actual returns | 1,000.00 | 987.90 | 9.14 | 1.84% |
Hypothetical example | 1,000.00 | 1,015.80 | 9.27 | 1.84% | |
Class I | Actual expenses/actual returns | 1,000.00 | 992.90 | 4.19 | 0.84% |
Hypothetical example | 1,000.00 | 1,020.80 | 4.24 | 0.84% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 990.90 | 6.12 | 1.23% |
Hypothetical example | 1,000.00 | 1,018.90 | 6.21 | 1.23% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 993.40 | 3.69 | 0.74% |
Hypothetical example | 1,000.00 | 1,021.30 | 3.74 | 0.74% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 993.40 | 3.69 | 0.74% |
Hypothetical example | 1,000.00 | 1,021.30 | 3.74 | 0.74% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
6 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 98.8% | $1,151,868,666 | ||||
(Cost $950,618,487) | |||||
Austria 0.8% | 9,244,272 | ||||
BAWAG Group AG (A)(B) | 202,255 | 9,244,272 | |||
Canada 6.8% | 79,004,479 | ||||
BCE, Inc. (C) | 307,158 | 11,725,487 | |||
Enbridge, Inc. | 302,172 | 10,022,344 | |||
Fortis, Inc. | 153,205 | 5,819,139 | |||
Great-West Lifeco, Inc. | 224,661 | 6,427,629 | |||
Nutrien, Ltd. (New York Stock Exchange) | 143,214 | 8,844,897 | |||
Restaurant Brands International, Inc. | 286,730 | 19,101,953 | |||
Royal Bank of Canada | 85,686 | 7,488,259 | |||
TELUS Corp. | 586,336 | 9,574,771 | |||
France 7.5% | 87,811,593 | ||||
AXA SA | 574,369 | 17,040,879 | |||
Cie Generale des Etablissements Michelin SCA | 278,877 | 8,535,580 | |||
Orange SA | 1,103,625 | 12,658,876 | |||
Sanofi | 179,245 | 19,246,480 | |||
TotalEnergies SE | 348,195 | 22,893,601 | |||
Vinci SA | 67,216 | 7,436,177 | |||
Germany 6.0% | 70,038,838 | ||||
Allianz SE | 53,591 | 12,753,386 | |||
Bayer AG | 143,819 | 6,906,824 | |||
Deutsche Telekom AG | 892,285 | 18,717,291 | |||
DHL Group | 341,230 | 13,845,592 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 24,525 | 9,551,331 | |||
Siemens AG | 57,830 | 8,264,414 | |||
Ireland 1.0% | 11,260,019 | ||||
Medtronic PLC | 143,696 | 11,260,019 | |||
Italy 1.3% | 15,186,195 | ||||
Snam SpA | 3,236,426 | 15,186,195 | |||
Japan 1.8% | 20,757,494 | ||||
Astellas Pharma, Inc. | 625,200 | 8,653,786 | |||
NET One Systems Company, Ltd. | 253,700 | 4,814,552 | |||
Toyota Motor Corp. | 406,300 | 7,289,156 | |||
Norway 0.8% | 9,794,233 | ||||
Orkla ASA | 1,311,329 | 9,794,233 | |||
South Korea 2.3% | 26,658,046 | ||||
Hyundai Glovis Company, Ltd. | 57,830 | 7,892,992 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 7 |
Shares | Value | ||||
South Korea (continued) | |||||
Samsung Electronics Company, Ltd., GDR (A) | 7,569 | $9,518,119 | |||
SK Telecom Company, Ltd. | 240,030 | 9,246,935 | |||
Switzerland 2.8% | 32,242,254 | ||||
Nestle SA | 61,161 | 6,923,182 | |||
Novartis AG | 190,447 | 19,450,094 | |||
Roche Holding AG | 21,498 | 5,868,978 | |||
Taiwan 1.0% | 11,313,946 | ||||
Taiwan Semiconductor Manufacturing Company, Ltd., ADR | 130,195 | 11,313,946 | |||
United Kingdom 9.5% | 111,299,438 | ||||
AstraZeneca PLC, ADR | 241,616 | 16,362,236 | |||
BAE Systems PLC | 704,867 | 8,565,486 | |||
British American Tobacco PLC | 504,731 | 15,847,992 | |||
Coca-Cola Europacific Partners PLC | 328,211 | 20,506,623 | |||
GSK PLC | 675,799 | 12,227,844 | |||
Imperial Brands PLC | 407,322 | 8,263,156 | |||
National Grid PLC | 875,330 | 10,468,443 | |||
Schroders PLC | 1,347,055 | 6,656,206 | |||
Unilever PLC | 250,701 | 12,401,452 | |||
United States 57.2% | 667,257,859 | ||||
AbbVie, Inc. | 147,755 | 22,024,360 | |||
Air Products & Chemicals, Inc. | 23,315 | 6,607,471 | |||
American Electric Power Company, Inc. | 159,260 | 11,979,537 | |||
Analog Devices, Inc. | 121,717 | 21,311,430 | |||
Apple, Inc. | 60,555 | 10,367,622 | |||
AT&T, Inc. | 648,247 | 9,736,670 | |||
Bank of America Corp. | 224,661 | 6,151,218 | |||
Bristol-Myers Squibb Company | 109,617 | 6,362,171 | |||
Broadcom, Inc. | 35,425 | 29,423,288 | |||
Chevron Corp. | 39,966 | 6,739,067 | |||
Cisco Systems, Inc. | 354,855 | 19,077,005 | |||
Columbia Banking System, Inc. | 352,736 | 7,160,541 | |||
Cummins, Inc. | 52,380 | 11,966,735 | |||
CVS Health Corp. | 86,897 | 6,067,149 | |||
Dell Technologies, Inc., Class C | 118,992 | 8,198,549 | |||
Dow, Inc. | 208,916 | 10,771,709 | |||
Duke Energy Corp. | 71,455 | 6,306,618 | |||
Eaton Corp. PLC | 30,884 | 6,586,940 | |||
Eli Lilly & Company | 14,993 | 8,053,190 | |||
Emerson Electric Company | 101,128 | 9,765,931 | |||
Entergy Corp. | 82,053 | 7,589,903 | |||
Enterprise Products Partners LP | 634,622 | 17,369,604 | |||
Evergy, Inc. | 170,161 | 8,627,163 |
8 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
United States (continued) | |||||
Hasbro, Inc. | 182,271 | $12,055,404 | |||
IBM Corp. | 169,555 | 23,788,567 | |||
Iron Mountain, Inc. | 348,195 | 20,700,193 | |||
Johnson & Johnson | 39,059 | 6,083,439 | |||
JPMorgan Chase & Co. | 95,678 | 13,875,224 | |||
KLA Corp. | 26,947 | 12,359,511 | |||
Lazard, Ltd., Class A | 346,680 | 10,750,547 | |||
Linde PLC | 19,075 | 7,102,576 | |||
Lockheed Martin Corp. | 15,482 | 6,331,519 | |||
LyondellBasell Industries NV, Class A | 129,286 | 12,243,384 | |||
McDonald’s Corp. | 23,315 | 6,142,104 | |||
Merck & Company, Inc. | 89,319 | 9,195,391 | |||
MetLife, Inc. | 199,530 | 12,552,432 | |||
Microsoft Corp. | 79,630 | 25,143,173 | |||
MPLX LP | 233,442 | 8,303,532 | |||
MSC Industrial Direct Company, Inc., Class A | 167,436 | 16,433,843 | |||
NetApp, Inc. | 102,339 | 7,765,483 | |||
NextEra Energy, Inc. | 157,703 | 9,034,805 | |||
NiSource, Inc. | 254,030 | 6,269,460 | |||
Omnicom Group, Inc. | 79,328 | 5,908,349 | |||
Paychex, Inc. | 53,895 | 6,215,710 | |||
PepsiCo, Inc. | 37,730 | 6,392,971 | |||
Pfizer, Inc. | 249,489 | 8,275,550 | |||
Philip Morris International, Inc. | 195,594 | 18,108,093 | |||
Pinnacle West Capital Corp. | 89,622 | 6,603,349 | |||
Realty Income Corp. | 178,335 | 8,906,050 | |||
Regions Financial Corp. | 391,491 | 6,733,645 | |||
RTX Corp. | 87,709 | 6,312,417 | |||
Texas Instruments, Inc. | 72,969 | 11,602,801 | |||
The Coca-Cola Company | 132,919 | 7,440,806 | |||
The Home Depot, Inc. | 21,194 | 6,403,979 | |||
The PNC Financial Services Group, Inc. | 53,895 | 6,616,689 | |||
The Williams Companies, Inc. | 192,265 | 6,477,408 | |||
Truist Financial Corp. | 227,566 | 6,510,663 | |||
U.S. Bancorp | 226,175 | 7,477,346 | |||
United Parcel Service, Inc., Class B | 38,755 | 6,040,742 | |||
UnitedHealth Group, Inc. | 16,350 | 8,243,507 | |||
Vail Resorts, Inc. | 27,250 | 6,046,503 | |||
Verizon Communications, Inc. | 270,683 | 8,772,836 | |||
VICI Properties, Inc. | 281,138 | 8,181,116 | |||
Walmart, Inc. | 42,086 | 6,730,814 | |||
WEC Energy Group, Inc. | 79,249 | 6,383,507 | |||
Welltower, Inc. | 79,328 | 6,498,550 | |||
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 9 |
Yield (%) | Shares | Value | |||
Short-term investments 0.2% | $1,509,639 | ||||
(Cost $1,509,742) | |||||
Short-term funds 0.2% | 1,509,639 | ||||
John Hancock Collateral Trust (D) | 5.2943(E) | 151,029 | 1,509,639 |
Total investments (Cost $952,128,229) 99.0% | $1,153,378,305 | ||||
Other assets and liabilities, net 1.0% | 12,134,102 | ||||
Total net assets 100.0% | $1,165,512,407 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
(A) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(B) | Non-income producing security. |
(C) | All or a portion of this security is on loan as of 9-30-23. |
(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 9-30-23. |
10 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $950,618,487) including $1,437,262 of securities loaned | $1,151,868,666 |
Affiliated investments, at value (Cost $1,509,742) | 1,509,639 |
Total investments, at value (Cost $952,128,229) | 1,153,378,305 |
Cash | 14,272,356 |
Foreign currency, at value (Cost $1,796,076) | 1,792,181 |
Dividends and interest receivable | 5,054,409 |
Receivable for fund shares sold | 1,425,890 |
Receivable for investments sold | 1,375,060 |
Receivable for securities lending income | 7,011 |
Receivable from affiliates | 11,645 |
Other assets | 179,220 |
Total assets | 1,177,496,077 |
Liabilities | |
Payable for investments purchased | 8,718,794 |
Payable for fund shares repurchased | 1,493,523 |
Payable upon return of securities loaned | 1,509,139 |
Payable to affiliates | |
Accounting and legal services fees | 76,933 |
Transfer agent fees | 80,408 |
Distribution and service fees | 111 |
Other liabilities and accrued expenses | 104,762 |
Total liabilities | 11,983,670 |
Net assets | $1,165,512,407 |
Net assets consist of | |
Paid-in capital | $953,194,772 |
Total distributable earnings (loss) | 212,317,635 |
Net assets | $1,165,512,407 |
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 ($291,372,161 ÷ 28,784,725 shares)1 | $10.12 |
Class C ($9,076,526 ÷ 893,766 shares)1 | $10.16 |
Class I ($526,855,495 ÷ 51,801,545 shares) | $10.17 |
Class R2 ($572,031 ÷ 56,096 shares) | $10.20 |
Class R6 ($265,924,808 ÷ 26,202,531 shares) | $10.15 |
Class NAV ($71,711,386 ÷ 7,059,424 shares) | $10.16 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $10.65 |
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 | $27,206,595 |
Interest | 221,831 |
Securities lending | 34,937 |
Less foreign taxes withheld | (1,754,108) |
Total investment income | 25,709,255 |
Expenses | |
Investment management fees | 4,917,375 |
Distribution and service fees | 512,865 |
Accounting and legal services fees | 138,603 |
Transfer agent fees | 525,874 |
Trustees’ fees | 12,917 |
Custodian fees | 144,392 |
State registration fees | 97,034 |
Printing and postage | 44,287 |
Professional fees | 42,136 |
Other | 26,193 |
Total expenses | 6,461,676 |
Less expense reductions | (1,040,117) |
Net expenses | 5,421,559 |
Net investment income | 20,287,696 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | (7,246,249) |
Affiliated investments | (5,818) |
(7,252,067) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (20,569,333) |
Affiliated investments | (103) |
(20,569,436) | |
Net realized and unrealized loss | (27,821,503) |
Decrease in net assets from operations | $(7,533,807) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 13 |
Six months ended 9-30-23 (unaudited) | Year ended 3-31-23 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $20,287,696 | $30,738,377 |
Net realized gain (loss) | (7,252,067) | 39,704,284 |
Change in net unrealized appreciation (depreciation) | (20,569,436) | (101,169,309) |
Decrease in net assets resulting from operations | (7,533,807) | (30,726,648) |
Distributions to shareholders | ||
From earnings | ||
Class A | (4,504,300) | (26,216,821) |
Class C | (114,583) | (1,121,090) |
Class I | (8,811,028) | (31,458,709) |
Class R2 | (8,210) | (44,492) |
Class R6 | (4,613,253) | (24,441,577) |
Class NAV | (1,384,899) | (8,174,701) |
Total distributions | (19,436,273) | (91,457,390) |
From fund share transactions | (42,618,955) | 245,184,839 |
Total increase (decrease) | (69,589,035) | 123,000,801 |
Net assets | ||
Beginning of period | 1,235,101,442 | 1,112,100,641 |
End of period | $1,165,512,407 | $1,235,101,442 |
14 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $10.36 | $11.64 | $11.76 | $8.62 | $11.03 | $11.14 |
Net investment income2 | 0.16 | 0.29 | 0.28 | 0.27 | 0.33 | 0.35 |
Net realized and unrealized gain (loss) on investments | (0.24) | (0.63) | 0.86 | 3.16 | (2.21) | 0.16 |
Total from investment operations | (0.08) | (0.34) | 1.14 | 3.43 | (1.88) | 0.51 |
Less distributions | ||||||
From net investment income | (0.16) | (0.33) | (0.28) | (0.29) | (0.33) | (0.35) |
From net realized gain | — | (0.61) | (0.98) | — | (0.20) | (0.27) |
Total distributions | (0.16) | (0.94) | (1.26) | (0.29) | (0.53) | (0.62) |
Net asset value, end of period | $10.12 | $10.36 | $11.64 | $11.76 | $8.62 | $11.03 |
Total return (%)3,4 | (0.84)5 | (2.48) | 10.05 | 40.22 | (17.96) | 4.86 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $291 | $304 | $327 | $318 | $257 | $334 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.306 | 1.29 | 1.28 | 1.29 | 1.29 | 1.28 |
Expenses including reductions | 1.096 | 1.09 | 1.09 | 1.09 | 1.09 | 1.09 |
Net investment income | 3.086 | 2.73 | 2.32 | 2.58 | 2.96 | 3.18 |
Portfolio turnover (%) | 12 | 28 | 24 | 30 | 33 | 16 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 15 |
CLASS C SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $10.40 | $11.67 | $11.79 | $8.64 | $11.05 | $11.16 |
Net investment income2 | 0.13 | 0.22 | 0.20 | 0.19 | 0.25 | 0.27 |
Net realized and unrealized gain (loss) on investments | (0.25) | (0.63) | 0.85 | 3.17 | (2.21) | 0.16 |
Total from investment operations | (0.12) | (0.41) | 1.05 | 3.36 | (1.96) | 0.43 |
Less distributions | ||||||
From net investment income | (0.12) | (0.25) | (0.19) | (0.21) | (0.25) | (0.27) |
From net realized gain | — | (0.61) | (0.98) | — | (0.20) | (0.27) |
Total distributions | (0.12) | (0.86) | (1.17) | (0.21) | (0.45) | (0.54) |
Net asset value, end of period | $10.16 | $10.40 | $11.67 | $11.79 | $8.64 | $11.05 |
Total return (%)3,4 | (1.21)5 | (3.15) | 9.19 | 39.22 | (18.59) | 4.06 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $9 | $12 | $20 | $29 | $44 | $75 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 2.006 | 1.99 | 1.98 | 1.99 | 1.99 | 1.97 |
Expenses including reductions | 1.846 | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 |
Net investment income | 2.436 | 2.06 | 1.63 | 1.89 | 2.27 | 2.49 |
Portfolio turnover (%) | 12 | 28 | 24 | 30 | 33 | 16 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
16 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $10.41 | $11.69 | $11.81 | $8.65 | $11.07 | $11.18 |
Net investment income2 | 0.18 | 0.32 | 0.31 | 0.29 | 0.36 | 0.38 |
Net realized and unrealized gain (loss) on investments | (0.25) | (0.63) | 0.86 | 3.18 | (2.22) | 0.16 |
Total from investment operations | (0.07) | (0.31) | 1.17 | 3.47 | (1.86) | 0.54 |
Less distributions | ||||||
From net investment income | (0.17) | (0.36) | (0.31) | (0.31) | (0.36) | (0.38) |
From net realized gain | — | (0.61) | (0.98) | — | (0.20) | (0.27) |
Total distributions | (0.17) | (0.97) | (1.29) | (0.31) | (0.56) | (0.65) |
Net asset value, end of period | $10.17 | $10.41 | $11.69 | $11.81 | $8.65 | $11.07 |
Total return (%)3 | (0.71)4 | (2.22) | 10.28 | 40.65 | (17.77) | 5.10 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $527 | $550 | $377 | $396 | $605 | $815 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.005 | 0.99 | 0.98 | 0.99 | 0.99 | 0.99 |
Expenses including reductions | 0.845 | 0.84 | 0.84 | 0.84 | 0.84 | 0.84 |
Net investment income | 3.345 | 3.00 | 2.59 | 2.78 | 3.22 | 3.44 |
Portfolio turnover (%) | 12 | 28 | 24 | 30 | 33 | 16 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 17 |
CLASS R2 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $10.44 | $11.71 | $11.83 | $8.66 | $11.08 | $11.19 |
Net investment income2 | 0.15 | 0.28 | 0.27 | 0.25 | 0.32 | 0.33 |
Net realized and unrealized gain (loss) on investments | (0.24) | (0.62) | 0.85 | 3.19 | (2.22) | 0.16 |
Total from investment operations | (0.09) | (0.34) | 1.12 | 3.44 | (1.90) | 0.49 |
Less distributions | ||||||
From net investment income | (0.15) | (0.32) | (0.26) | (0.27) | (0.32) | (0.33) |
From net realized gain | — | (0.61) | (0.98) | — | (0.20) | (0.27) |
Total distributions | (0.15) | (0.93) | (1.24) | (0.27) | (0.52) | (0.60) |
Net asset value, end of period | $10.20 | $10.44 | $11.71 | $11.83 | $8.66 | $11.08 |
Total return (%)3 | (0.91)4 | (2.53) | 9.82 | 40.19 | (18.10) | 4.68 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1 | $1 | $1 | $1 | $1 | $1 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.375 | 1.34 | 1.34 | 1.35 | 1.34 | 1.36 |
Expenses including reductions | 1.235 | 1.21 | 1.21 | 1.23 | 1.22 | 1.22 |
Net investment income | 2.925 | 2.62 | 2.20 | 2.45 | 2.86 | 3.02 |
Portfolio turnover (%) | 12 | 28 | 24 | 30 | 33 | 16 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
18 | JOHN HANCOCK Global Shareholder Yield Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $10.39 | $11.67 | $11.79 | $8.64 | $11.06 | $11.16 |
Net investment income2 | 0.18 | 0.33 | 0.32 | 0.30 | 0.37 | 0.39 |
Net realized and unrealized gain (loss) on investments | (0.25) | (0.63) | 0.86 | 3.17 | (2.22) | 0.17 |
Total from investment operations | (0.07) | (0.30) | 1.18 | 3.47 | (1.85) | 0.56 |
Less distributions | ||||||
From net investment income | (0.17) | (0.37) | (0.32) | (0.32) | (0.37) | (0.39) |
From net realized gain | — | (0.61) | (0.98) | — | (0.20) | (0.27) |
Total distributions | (0.17) | (0.98) | (1.30) | (0.32) | (0.57) | (0.66) |
Net asset value, end of period | $10.15 | $10.39 | $11.67 | $11.79 | $8.64 | $11.06 |
Total return (%)3 | (0.66)4 | (2.12) | 10.40 | 40.72 | (17.69) | 5.31 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $266 | $279 | $278 | $275 | $245 | $351 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.895 | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 |
Expenses including reductions | 0.745 | 0.74 | 0.74 | 0.74 | 0.74 | 0.74 |
Net investment income | 3.435 | 3.06 | 2.68 | 2.94 | 3.34 | 3.57 |
Portfolio turnover (%) | 12 | 28 | 24 | 30 | 33 | 16 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 19 |
CLASS NAV SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $10.40 | $11.68 | $11.80 | $8.64 | $11.06 | $11.17 |
Net investment income2 | 0.19 | 0.33 | 0.32 | 0.29 | 0.37 | 0.39 |
Net realized and unrealized gain (loss) on investments | (0.26) | (0.63) | 0.86 | 3.19 | (2.22) | 0.16 |
Total from investment operations | (0.07) | (0.30) | 1.18 | 3.48 | (1.85) | 0.55 |
Less distributions | ||||||
From net investment income | (0.17) | (0.37) | (0.32) | (0.32) | (0.37) | (0.39) |
From net realized gain | — | (0.61) | (0.98) | — | (0.20) | (0.27) |
Total distributions | (0.17) | (0.98) | (1.30) | (0.32) | (0.57) | (0.66) |
Net asset value, end of period | $10.16 | $10.40 | $11.68 | $11.80 | $8.64 | $11.06 |
Total return (%)3 | (0.66)4 | (2.12) | 10.40 | 40.83 | (17.77) | 5.30 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $72 | $89 | $109 | $120 | $325 | $458 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.885 | 0.88 | 0.87 | 0.87 | 0.87 | 0.87 |
Expenses including reductions | 0.745 | 0.74 | 0.74 | 0.74 | 0.74 | 0.74 |
Net investment income | 3.525 | 3.10 | 2.68 | 2.87 | 3.32 | 3.54 |
Portfolio turnover (%) | 12 | 28 | 24 | 30 | 33 | 16 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
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 9-30-23 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Austria | $9,244,272 | — | $9,244,272 | — |
Canada | 79,004,479 | $79,004,479 | — | — |
France | 87,811,593 | — | 87,811,593 | — |
Germany | 70,038,838 | — | 70,038,838 | — |
Ireland | 11,260,019 | 11,260,019 | — | — |
Italy | 15,186,195 | — | 15,186,195 | — |
Japan | 20,757,494 | — | 20,757,494 | — |
Norway | 9,794,233 | — | 9,794,233 | — |
South Korea | 26,658,046 | — | 26,658,046 | — |
Switzerland | 32,242,254 | — | 32,242,254 | — |
Taiwan | 11,313,946 | 11,313,946 | — | — |
United Kingdom | 111,299,438 | 36,868,859 | 74,430,579 | — |
United States | 667,257,859 | 667,257,859 | — | — |
Short-term investments | 1,509,639 | 1,509,639 | — | — |
Total investments in securities | $1,153,378,305 | $807,214,801 | $346,163,504 | — |
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 | $322,318 |
Class C | 8,713 |
Class I | 444,235 |
Class R2 | 415 |
Class | Expense reduction |
Class R6 | $205,988 |
Class NAV | 58,448 |
Total | $1,040,117 |
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 | $457,282 | $182,502 |
Class C | 54,166 | 6,508 |
Class I | — | 329,557 |
Class R2 | 1,417 | 15 |
Class R6 | — | 7,292 |
Total | $512,865 | $525,874 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Borrower | $2,000,000 | 2 | 5.56% | $(618) |
Six Months Ended 9-30-23 | Year Ended 3-31-23 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,249,665 | $13,097,912 | 3,470,282 | $36,688,345 |
Distributions reinvested | 424,862 | 4,385,002 | 2,545,708 | 25,556,010 |
Repurchased | (2,240,047) | (23,485,703) | (4,730,402) | (49,829,402) |
Net increase (decrease) | (565,520) | $(6,002,789) | 1,285,588 | $12,414,953 |
SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 27 |
Six Months Ended 9-30-23 | Year Ended 3-31-23 | |||
Shares | Amount | Shares | Amount | |
Class C shares | ||||
Sold | 15,774 | $167,664 | 80,695 | $849,880 |
Distributions reinvested | 11,067 | 114,583 | 111,092 | 1,120,930 |
Repurchased | (321,781) | (3,394,860) | (755,258) | (8,033,701) |
Net decrease | (294,940) | $(3,112,613) | (563,471) | $(6,062,891) |
Class I shares | ||||
Sold | 3,861,405 | $40,690,574 | 25,652,990 | $272,709,674 |
Distributions reinvested | 845,263 | 8,765,836 | 3,090,857 | 31,175,952 |
Repurchased | (5,701,829) | (60,019,782) | (8,206,293) | (86,522,837) |
Net increase (decrease) | (995,161) | $(10,563,372) | 20,537,554 | $217,362,789 |
Class R2 shares | ||||
Sold | 4,060 | $43,543 | 7,705 | $81,962 |
Distributions reinvested | 781 | 8,123 | 4,347 | 43,946 |
Repurchased | (2,780) | (29,164) | (8,278) | (88,155) |
Net increase | 2,061 | $22,502 | 3,774 | $37,753 |
Class R6 shares | ||||
Sold | 1,816,847 | $19,107,316 | 6,182,810 | $65,485,670 |
Distributions reinvested | 445,742 | 4,612,182 | 2,427,933 | 24,438,490 |
Repurchased | (2,945,865) | (30,999,878) | (5,556,061) | (58,880,852) |
Net increase (decrease) | (683,276) | $(7,280,380) | 3,054,682 | $31,043,308 |
Class NAV shares | ||||
Sold | 11,410 | $118,637 | 111,306 | $1,114,757 |
Distributions reinvested | 133,696 | 1,384,899 | 811,065 | 8,174,701 |
Repurchased | (1,630,597) | (17,185,839) | (1,726,184) | (18,900,531) |
Net decrease | (1,485,491) | $(15,682,303) | (803,813) | $(9,611,073) |
Total net increase (decrease) | (4,022,327) | $(42,618,955) | 23,514,314 | $245,184,839 |
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* | 151,029 | — | $89,036,222 | $(87,520,662) | $(5,818) | $(103) | $34,937 | — | $1,509,639 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
SEMIANNUAL REPORT | JOHN HANCOCK Global Shareholder Yield Fund | 29 |
30 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD 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; |
(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; |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 31 |
(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 GLOBAL SHAREHOLDER YIELD 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. |
(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; |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 33 |
(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. |
34 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
(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. |
SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | 35 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Deborah C. Jackson
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 |
36 | JOHN HANCOCK GLOBAL SHAREHOLDER YIELD FUND | SEMIANNUAL REPORT |
GOVERNANCE FUNDS
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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
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United States and Europe
Manulife Investment Management
John Hancock Investment Management
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 1 |
2 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2023 (% of net assets) | |
Taiwan Semiconductor Manufacturing Company, Ltd. | 5.3 |
Tencent Holdings, Ltd. | 3.7 |
AstraZeneca PLC | 3.3 |
Airbus SE | 2.7 |
Industria de Diseno Textil SA | 2.3 |
Tokyo Electron, Ltd. | 2.3 |
Constellation Software, Inc. | 2.2 |
London Stock Exchange Group PLC | 2.1 |
Safran SA | 2.1 |
Samsung Electronics Company, Ltd. | 2.0 |
TOTAL | 28.0 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 3 |
TOP 10 COUNTRIES AS OF 9/30/2023 (% of net assets) | |
United Kingdom | 14.4 |
China | 13.8 |
France | 12.7 |
Japan | 9.8 |
Taiwan | 6.4 |
India | 5.2 |
Germany | 4.7 |
Ireland | 4.2 |
Switzerland | 3.7 |
Canada | 3.6 |
TOTAL | 78.5 |
Cash and cash equivalents are not included. |
4 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 5 |
Account value on 4-1-2023 | Ending value on 9-30-2023 | Expenses paid during period ended 9-30-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $971.50 | $6.51 | 1.32% |
Hypothetical example | 1,000.00 | 1,018.40 | 6.66 | 1.32% | |
Class C | Actual expenses/actual returns | 1,000.00 | 968.30 | 9.94 | 2.02% |
Hypothetical example | 1,000.00 | 1,014.90 | 10.18 | 2.02% | |
Class I | Actual expenses/actual returns | 1,000.00 | 973.00 | 5.03 | 1.02% |
Hypothetical example | 1,000.00 | 1,019.90 | 5.15 | 1.02% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 971.10 | 6.95 | 1.41% |
Hypothetical example | 1,000.00 | 1,018.00 | 7.11 | 1.41% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 972.10 | 5.67 | 1.15% |
Hypothetical example | 1,000.00 | 1,019.30 | 5.81 | 1.15% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 973.50 | 4.49 | 0.91% |
Hypothetical example | 1,000.00 | 1,020.50 | 4.60 | 0.91% | |
Class 1 | Actual expenses/actual returns | 1,000.00 | 973.40 | 4.69 | 0.95% |
Hypothetical example | 1,000.00 | 1,020.30 | 4.80 | 0.95% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 973.40 | 4.44 | 0.90% |
Hypothetical example | 1,000.00 | 1,020.50 | 4.55 | 0.90% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
6 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
Shares | Value | ||||
Common stocks 98.6% | $5,777,240,491 | ||||
(Cost $5,219,368,336) | |||||
Australia 1.6% | 93,238,172 | ||||
Aristocrat Leisure, Ltd. | 3,568,725 | 93,238,172 | |||
Belgium 2.4% | 138,814,795 | ||||
KBC Group NV | 995,074 | 61,949,952 | |||
UCB SA | 938,414 | 76,864,843 | |||
Canada 3.6% | 212,817,744 | ||||
ARC Resources, Ltd. (A) | 5,269,888 | 84,116,453 | |||
Constellation Software, Inc. | 62,341 | 128,701,291 | |||
China 13.8% | 811,375,225 | ||||
ANTA Sports Products, Ltd. | 8,147,301 | 91,162,949 | |||
China Pacific Insurance Group Company, Ltd., Class A | 18,155,126 | 71,651,520 | |||
ENN Energy Holdings, Ltd. | 5,884,199 | 48,486,981 | |||
Focus Media Information Technology Company, Ltd., Class A | 66,836,202 | 65,556,376 | |||
H World Group, Ltd., ADR (B) | 1,811,299 | 71,419,520 | |||
Kweichow Moutai Company, Ltd., Class A | 353,095 | 87,572,004 | |||
Li Ning Company, Ltd. | 14,388,696 | 60,082,613 | |||
Tencent Holdings, Ltd. | 5,611,625 | 217,528,803 | |||
ZTO Express Cayman, Inc., ADR | 4,051,074 | 97,914,459 | |||
Denmark 3.1% | 179,569,207 | ||||
DSV A/S | 462,947 | 86,265,882 | |||
Genmab A/S (B) | 263,531 | 93,303,325 | |||
France 12.7% | 742,065,234 | ||||
Airbus SE | 1,190,626 | 159,363,495 | |||
AXA SA | 1,977,522 | 58,670,843 | |||
Edenred SE | 1,659,770 | 103,828,618 | |||
Publicis Groupe SA | 1,340,184 | 101,442,135 | |||
Safran SA | 777,010 | 121,764,648 | |||
Thales SA | 471,655 | 66,287,897 | |||
Vinci SA | 921,853 | 101,985,571 | |||
Worldline SA (B)(C) | 1,023,182 | 28,722,027 | |||
Germany 4.7% | 274,454,405 | ||||
Brenntag SE | 1,021,157 | 79,013,779 | |||
Rheinmetall AG | 423,107 | 108,844,918 | |||
Siemens AG | 605,951 | 86,595,708 | |||
India 5.2% | 304,589,126 | ||||
Axis Bank, Ltd. | 7,220,884 | 89,896,715 | |||
Bharti Airtel, Ltd. | 9,827,147 | 109,509,216 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 7 |
Shares | Value | ||||
India (continued) | |||||
Bharti Airtel, Ltd., Partly Paid Up Shares | 801,744 | $5,125,621 | |||
HDFC Bank, Ltd. | 3,049,078 | 55,903,344 | |||
Hindustan Aeronautics, Ltd. | 1,901,030 | 44,154,230 | |||
Ireland 4.2% | 243,717,064 | ||||
AerCap Holdings NV (B) | 1,440,077 | 90,249,626 | |||
Flutter Entertainment PLC (London Stock Exchange) (B) | 582,463 | 94,771,042 | |||
ICON PLC (B) | 238,361 | 58,696,396 | |||
Italy 2.1% | 126,116,784 | ||||
FinecoBank SpA | 4,554,757 | 54,999,939 | |||
Moncler SpA | 1,227,104 | 71,116,845 | |||
Japan 9.8% | 572,351,129 | ||||
Advantest Corp. | 2,432,396 | 67,848,073 | |||
Isuzu Motors, Ltd. | 8,539,090 | 107,350,125 | |||
Mitsubishi UFJ Financial Group, Inc. | 7,939,500 | 67,280,558 | |||
Nippon Telegraph & Telephone Corp. | 79,466,500 | 94,059,371 | |||
Recruit Holdings Company, Ltd. | 3,272,500 | 100,122,241 | |||
Tokyo Electron, Ltd. | 993,400 | 135,690,761 | |||
Netherlands 1.1% | 62,165,568 | ||||
ASML Holding NV | 105,589 | 62,165,568 | |||
Portugal 1.9% | 113,612,250 | ||||
Jeronimo Martins SGPS SA | 5,058,829 | 113,612,250 | |||
South Korea 2.0% | 119,600,363 | ||||
Samsung Electronics Company, Ltd. | 2,365,788 | 119,600,363 | |||
Spain 2.3% | 136,718,143 | ||||
Industria de Diseno Textil SA | 3,674,028 | 136,718,143 | |||
Sweden 2.5% | 146,550,355 | ||||
Evolution AB (C) | 614,511 | 62,009,859 | |||
Volvo AB, B Shares | 4,104,378 | 84,540,496 | |||
Switzerland 3.7% | 218,448,606 | ||||
Glencore PLC | 14,939,578 | 85,074,121 | |||
Kuehne + Nagel International AG | 222,131 | 63,114,268 | |||
Novartis AG | 687,958 | 70,260,217 | |||
Taiwan 6.4% | 372,316,271 | ||||
Accton Technology Corp. | 4,119,761 | 63,206,123 | |||
Taiwan Semiconductor Manufacturing Company, Ltd. | 18,956,551 | 309,110,148 | |||
United Kingdom 14.4% | 844,355,801 | ||||
Allfunds Group PLC | 8,910,786 | 49,075,227 | |||
Anglo American PLC | 2,587,058 | 71,040,032 |
8 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
United Kingdom (continued) | |||||
AstraZeneca PLC | 1,425,306 | $192,252,852 | |||
British American Tobacco PLC | 1,752,839 | 55,037,193 | |||
GSK PLC | 4,099,551 | 74,176,890 | |||
InterContinental Hotels Group PLC | 1,038,784 | 76,823,059 | |||
London Stock Exchange Group PLC | 1,249,597 | 125,242,779 | |||
Reckitt Benckiser Group PLC | 1,415,181 | 99,800,215 | |||
Standard Chartered PLC | 10,971,084 | 100,907,554 | |||
United States 1.1% | 64,364,249 | ||||
Schlumberger, Ltd. | 1,104,018 | 64,364,249 | |||
Warrants 0.0% | $0 | ||||
(Cost $0) | |||||
Constellation Software, Inc. (Expiration Date: 3-31-40) (B)(D)(E) | 65,212 | 0 | |||
Yield (%) | Shares | Value | |||
Short-term investments 0.7% | $38,474,587 | ||||
(Cost $38,476,500) | |||||
Short-term funds 0.7% | 38,474,587 | ||||
John Hancock Collateral Trust (F) | 5.2943(G) | 3,849,114 | 38,474,587 |
Total investments (Cost $5,257,844,836) 99.3% | $5,815,715,078 | ||||
Other assets and liabilities, net 0.7% | 42,414,664 | ||||
Total net assets 100.0% | $5,858,129,742 |
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) | All or a portion of this security is on loan as of 9-30-23. |
(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. |
(D) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. Refer to Note 2 to the financial statements. |
(E) | Strike price and/or expiration date not available. |
(F) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(G) | The rate shown is the annualized seven-day yield as of 9-30-23. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 9 |
Assets | |
Unaffiliated investments, at value (Cost $5,219,368,336) including $36,562,178 of securities loaned | $5,777,240,491 |
Affiliated investments, at value (Cost $38,476,500) | 38,474,587 |
Total investments, at value (Cost $5,257,844,836) | 5,815,715,078 |
Foreign currency, at value (Cost $1,748,142) | 1,733,947 |
Dividends and interest receivable | 37,155,391 |
Receivable for fund shares sold | 4,686,025 |
Receivable for investments sold | 55,396,244 |
Receivable for securities lending income | 594 |
Other assets | 920,303 |
Total assets | 5,915,607,582 |
Liabilities | |
Due to custodian | 2,372,904 |
Foreign capital gains tax payable | 5,890,995 |
Payable for fund shares repurchased | 8,856,755 |
Payable upon return of securities loaned | 38,476,500 |
Payable to affiliates | |
Accounting and legal services fees | 253,556 |
Transfer agent fees | 328,149 |
Distribution and service fees | 3,534 |
Trustees’ fees | 14,745 |
Other liabilities and accrued expenses | 1,280,702 |
Total liabilities | 57,477,840 |
Net assets | $5,858,129,742 |
Net assets consist of | |
Paid-in capital | $6,566,241,968 |
Total distributable earnings (loss) | (708,112,226) |
Net assets | $5,858,129,742 |
10 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Net asset value per share | |
Based on net asset value and shares outstanding - the fund has an unlimited number of shares authorized with no par value | |
Class A ($470,571,479 ÷ 20,285,359 shares)1 | $23.20 |
Class C ($71,573,350 ÷ 3,253,684 shares)1 | $22.00 |
Class I ($2,768,918,738 ÷ 118,324,307 shares) | $23.40 |
Class R2 ($12,579,069 ÷ 542,849 shares) | $23.17 |
Class R4 ($9,369,291 ÷ 401,521 shares) | $23.33 |
Class R6 ($1,742,182,163 ÷ 74,225,084 shares) | $23.47 |
Class 1 ($50,408,735 ÷ 2,153,200 shares) | $23.41 |
Class NAV ($732,526,917 ÷ 31,264,146 shares) | $23.43 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)2 | $24.42 |
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 International Growth Fund | 11 |
Investment income | |
Dividends | $109,885,459 |
Interest | 3,369,701 |
Securities lending | 668,884 |
Less foreign taxes withheld | (9,170,510) |
Total investment income | 104,753,534 |
Expenses | |
Investment management fees | 26,821,732 |
Distribution and service fees | 1,266,832 |
Accounting and legal services fees | 672,229 |
Transfer agent fees | 2,393,278 |
Trustees’ fees | 101,341 |
Custodian fees | 1,355,129 |
State registration fees | 83,349 |
Printing and postage | 276,236 |
Professional fees | 177,428 |
Other | 515,382 |
Total expenses | 33,662,936 |
Less expense reductions | (246,942) |
Net expenses | 33,415,994 |
Net investment income | 71,337,540 |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments and foreign currency transactions | 97,367,686 |
Affiliated investments | (8,387) |
97,359,299 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (322,440,432)1 |
Affiliated investments | 19,658 |
Forward foreign currency contracts | 1,752 |
(322,419,022) | |
Net realized and unrealized loss | (225,059,723) |
Decrease in net assets from operations | $(153,722,183) |
1 | Net of $4,778,189 increase in deferred foreign withholding taxes. |
12 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Six months ended 9-30-23 (unaudited) | Year ended 3-31-23 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income | $71,337,540 | $114,577,354 |
Net realized gain (loss) | 97,359,299 | (1,032,030,363) |
Change in net unrealized appreciation (depreciation) | (322,419,022) | (302,736,673) |
Decrease in net assets resulting from operations | (153,722,183) | (1,220,189,682) |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (58,671,285) |
Class C | — | (13,274,712) |
Class I | — | (504,628,457) |
Class R2 | — | (4,084,956) |
Class R4 | — | (826,906) |
Class R6 | — | (222,850,526) |
Class 1 | — | (6,694,331) |
Class NAV | — | (90,713,513) |
Total distributions | — | (901,744,686) |
From fund share transactions | (952,272,764) | (2,434,699,952) |
Total decrease | (1,105,994,947) | (4,556,634,320) |
Net assets | ||
Beginning of period | 6,964,124,689 | 11,520,759,009 |
End of period | $5,858,129,742 | $6,964,124,689 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 13 |
CLASS A SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.88 | $29.99 | $37.88 | $24.58 | $26.79 | $28.52 |
Net investment income (loss)2 | 0.223 | 0.25 | 0.14 | (0.04) | 0.13 | 0.19 |
Net realized and unrealized gain (loss) on investments | (0.90) | (3.29) | (2.80) | 13.34 | (2.22) | (1.31) |
Total from investment operations | (0.68) | (3.04) | (2.66) | 13.30 | (2.09) | (1.12) |
Less distributions | ||||||
From net investment income | — | — | (0.17) | — | (0.12) | (0.15) |
From net realized gain | — | (3.07) | (5.06) | — | — | (0.46) |
Total distributions | — | (3.07) | (5.23) | — | (0.12) | (0.61) |
Net asset value, end of period | $23.20 | $23.88 | $29.99 | $37.88 | $24.58 | $26.79 |
Total return (%)4,5 | (2.85)6 | (9.31) | (8.46) | 54.11 | (7.87) | (3.69) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $471 | $502 | $642 | $670 | $456 | $609 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.337 | 1.30 | 1.29 | 1.29 | 1.30 | 1.28 |
Expenses including reductions | 1.327 | 1.29 | 1.28 | 1.28 | 1.29 | 1.28 |
Net investment income (loss) | 1.833,7 | 0.99 | 0.37 | (0.14) | 0.45 | 0.72 |
Portfolio turnover (%) | 23 | 77 | 78 | 78 | 80 | 98 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
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. |
14 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $22.73 | $28.91 | $36.78 | $24.03 | $26.27 | $28.00 |
Net investment income (loss)2 | 0.143 | 0.09 | (0.12) | (0.26) | (0.06) | —4 |
Net realized and unrealized gain (loss) on investments | (0.87) | (3.20) | (2.69) | 13.01 | (2.18) | (1.27) |
Total from investment operations | (0.73) | (3.11) | (2.81) | 12.75 | (2.24) | (1.27) |
Less distributions | ||||||
From net realized gain | — | (3.07) | (5.06) | — | — | (0.46) |
Net asset value, end of period | $22.00 | $22.73 | $28.91 | $36.78 | $24.03 | $26.27 |
Total return (%)5,6 | (3.17)7 | (9.96) | (9.10) | 53.06 | (8.53) | (4.37) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $72 | $96 | $171 | $224 | $181 | $263 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 2.038 | 2.00 | 1.99 | 1.99 | 2.00 | 1.98 |
Expenses including reductions | 2.028 | 1.99 | 1.98 | 1.98 | 1.99 | 1.98 |
Net investment income (loss) | 1.193,8 | 0.36 | (0.32) | (0.81) | (0.24) | (0.01) |
Portfolio turnover (%) | 23 | 77 | 78 | 78 | 80 | 98 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
4 | Less than $0.005 per share. |
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 I SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.05 | $30.09 | $38.00 | $24.63 | $26.84 | $28.59 |
Net investment income2 | 0.263 | 0.35 | 0.25 | 0.05 | 0.21 | 0.24 |
Net realized and unrealized gain (loss) on investments | (0.91) | (3.32) | (2.81) | 13.40 | (2.22) | (1.30) |
Total from investment operations | (0.65) | (2.97) | (2.56) | 13.45 | (2.01) | (1.06) |
Less distributions | ||||||
From net investment income | — | — | (0.29) | (0.08) | (0.20) | (0.23) |
From net realized gain | — | (3.07) | (5.06) | — | — | (0.46) |
Total distributions | — | (3.07) | (5.35) | (0.08) | (0.20) | (0.69) |
Net asset value, end of period | $23.40 | $24.05 | $30.09 | $38.00 | $24.63 | $26.84 |
Total return (%)4 | (2.70)5 | (9.04) | (8.19) | 54.62 | (7.61) | (3.45) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $2,769 | $3,587 | $7,376 | $8,176 | $4,677 | $5,576 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.036 | 1.00 | 0.99 | 0.99 | 1.00 | 1.00 |
Expenses including reductions | 1.026 | 0.99 | 0.98 | 0.98 | 0.99 | 0.99 |
Net investment income | 2.153,6 | 1.37 | 0.66 | 0.14 | 0.74 | 0.89 |
Portfolio turnover (%) | 23 | 77 | 78 | 78 | 80 | 98 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
16 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R2 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $23.87 | $30.00 | $37.89 | $24.60 | $26.82 | $28.55 |
Net investment income (loss)2 | 0.253 | 0.21 | 0.11 | (0.08) | 0.12 | 0.15 |
Net realized and unrealized gain (loss) on investments | (0.95) | (3.27) | (2.81) | 13.37 | (2.25) | (1.30) |
Total from investment operations | (0.70) | (3.06) | (2.70) | 13.29 | (2.13) | (1.15) |
Less distributions | ||||||
From net investment income | — | — | (0.13) | — | (0.09) | (0.12) |
From net realized gain | — | (3.07) | (5.06) | — | — | (0.46) |
Total distributions | — | (3.07) | (5.19) | — | (0.09) | (0.58) |
Net asset value, end of period | $23.17 | $23.87 | $30.00 | $37.89 | $24.60 | $26.82 |
Total return (%)4 | (2.89)5 | (9.41) | (8.55) | 54.02 | (7.98) | (3.81) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $13 | $36 | $38 | $50 | $30 | $43 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.416 | 1.39 | 1.38 | 1.38 | 1.39 | 1.38 |
Expenses including reductions | 1.416 | 1.38 | 1.37 | 1.37 | 1.38 | 1.37 |
Net investment income (loss) | 2.093,6 | 0.85 | 0.29 | (0.23) | 0.41 | 0.54 |
Portfolio turnover (%) | 23 | 77 | 78 | 78 | 80 | 98 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
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 International Growth Fund | 17 |
CLASS R4 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.00 | $30.08 | $37.98 | $24.62 | $26.84 | $28.57 |
Net investment income (loss)2 | 0.243 | 0.43 | 0.20 | (0.05) | 0.16 | 0.22 |
Net realized and unrealized gain (loss) on investments | (0.91) | (3.44) | (2.81) | 13.46 | (2.22) | (1.30) |
Total from investment operations | (0.67) | (3.01) | (2.61) | 13.41 | (2.06) | (1.08) |
Less distributions | ||||||
From net investment income | — | — | (0.23) | (0.05) | (0.16) | (0.19) |
From net realized gain | — | (3.07) | (5.06) | — | — | (0.46) |
Total distributions | — | (3.07) | (5.29) | (0.05) | (0.16) | (0.65) |
Net asset value, end of period | $23.33 | $24.00 | $30.08 | $37.98 | $24.62 | $26.84 |
Total return (%)4 | (2.79)5 | (9.18) | (8.31) | 54.46 | (7.77) | (3.53) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $9 | $10 | $45 | $49 | $7 | $8 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.266 | 1.23 | 1.22 | 1.21 | 1.24 | 1.24 |
Expenses including reductions | 1.156 | 1.12 | 1.11 | 1.10 | 1.13 | 1.13 |
Net investment income (loss) | 1.993,6 | 1.61 | 0.54 | (0.13) | 0.58 | 0.80 |
Portfolio turnover (%) | 23 | 77 | 78 | 78 | 80 | 98 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
18 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.11 | $30.13 | $38.04 | $24.65 | $26.86 | $28.61 |
Net investment income2 | 0.273 | 0.34 | 0.29 | 0.08 | 0.24 | 0.27 |
Net realized and unrealized gain (loss) on investments | (0.91) | (3.29) | (2.81) | 13.42 | (2.22) | (1.30) |
Total from investment operations | (0.64) | (2.95) | (2.52) | 13.50 | (1.98) | (1.03) |
Less distributions | ||||||
From net investment income | — | — | (0.33) | (0.11) | (0.23) | (0.26) |
From net realized gain | — | (3.07) | (5.06) | — | — | (0.46) |
Total distributions | — | (3.07) | (5.39) | (0.11) | (0.23) | (0.72) |
Net asset value, end of period | $23.47 | $24.11 | $30.13 | $38.04 | $24.65 | $26.86 |
Total return (%)4 | (2.65)5 | (8.96) | (8.09) | 54.79 | (7.52) | (3.32) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1,742 | $1,908 | $2,333 | $2,441 | $1,434 | $1,836 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.916 | 0.89 | 0.88 | 0.88 | 0.89 | 0.89 |
Expenses including reductions | 0.916 | 0.89 | 0.87 | 0.88 | 0.88 | 0.88 |
Net investment income | 2.263,6 | 1.37 | 0.78 | 0.25 | 0.85 | 1.01 |
Portfolio turnover (%) | 23 | 77 | 78 | 78 | 80 | 98 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
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 International Growth Fund | 19 |
CLASS 1 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.06 | $30.08 | $37.98 | $24.62 | $26.83 | $28.57 |
Net investment income2 | 0.273 | 0.34 | 0.28 | 0.08 | 0.23 | 0.28 |
Net realized and unrealized gain (loss) on investments | (0.92) | (3.29) | (2.80) | 13.38 | (2.22) | (1.30) |
Total from investment operations | (0.65) | (2.95) | (2.52) | 13.46 | (1.99) | (1.02) |
Less distributions | ||||||
From net investment income | — | — | (0.32) | (0.10) | (0.22) | (0.26) |
From net realized gain | — | (3.07) | (5.06) | — | — | (0.46) |
Total distributions | — | (3.07) | (5.38) | (0.10) | (0.22) | (0.72) |
Net asset value, end of period | $23.41 | $24.06 | $30.08 | $37.98 | $24.62 | $26.83 |
Total return (%)4 | (2.66)5 | (9.01) | (8.10) | 54.68 | (7.55) | (3.32) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $50 | $58 | $71 | $83 | $59 | $78 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.966 | 0.93 | 0.92 | 0.92 | 0.93 | 0.92 |
Expenses including reductions | 0.956 | 0.93 | 0.91 | 0.91 | 0.92 | 0.92 |
Net investment income | 2.223,6 | 1.34 | 0.74 | 0.23 | 0.82 | 1.05 |
Portfolio turnover (%) | 23 | 77 | 78 | 78 | 80 | 98 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
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 International Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS NAV SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $24.07 | $30.08 | $37.99 | $24.62 | $26.82 | $28.57 |
Net investment income2 | 0.273 | 0.34 | 0.30 | 0.10 | 0.24 | 0.29 |
Net realized and unrealized gain (loss) on investments | (0.91) | (3.28) | (2.81) | 13.38 | (2.21) | (1.31) |
Total from investment operations | (0.64) | (2.94) | (2.51) | 13.48 | (1.97) | (1.02) |
Less distributions | ||||||
From net investment income | — | — | (0.34) | (0.11) | (0.23) | (0.27) |
From net realized gain | — | (3.07) | (5.06) | — | — | (0.46) |
Total distributions | — | (3.07) | (5.40) | (0.11) | (0.23) | (0.73) |
Net asset value, end of period | $23.43 | $24.07 | $30.08 | $37.99 | $24.62 | $26.82 |
Total return (%)4 | (2.66)5 | (8.94) | (8.08) | 54.78 | (7.51) | (3.27) |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $733 | $768 | $844 | $1,057 | $854 | $1,028 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.916 | 0.88 | 0.87 | 0.87 | 0.88 | 0.87 |
Expenses including reductions | 0.906 | 0.88 | 0.86 | 0.86 | 0.87 | 0.87 |
Net investment income | 2.263,6 | 1.34 | 0.80 | 0.30 | 0.87 | 1.06 |
Portfolio turnover (%) | 23 | 77 | 78 | 78 | 80 | 98 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Net investment income is affected by the timing and frequency of the declaration of dividends by the securities in which the fund invests. |
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 International Growth Fund | 21 |
22 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
Total value at 9-30-23 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Common stocks | ||||
Australia | $93,238,172 | — | $93,238,172 | — |
Belgium | 138,814,795 | — | 138,814,795 | — |
Canada | 212,817,744 | $212,817,744 | — | — |
China | 811,375,225 | 169,333,979 | 642,041,246 | — |
Denmark | 179,569,207 | — | 179,569,207 | — |
France | 742,065,234 | — | 742,065,234 | — |
Germany | 274,454,405 | — | 274,454,405 | — |
India | 304,589,126 | — | 304,589,126 | — |
Ireland | 243,717,064 | 148,946,022 | 94,771,042 | — |
Italy | 126,116,784 | — | 126,116,784 | — |
Japan | 572,351,129 | — | 572,351,129 | — |
Netherlands | 62,165,568 | — | 62,165,568 | — |
Portugal | 113,612,250 | — | 113,612,250 | — |
South Korea | 119,600,363 | — | 119,600,363 | — |
Spain | 136,718,143 | — | 136,718,143 | — |
Sweden | 146,550,355 | — | 146,550,355 | — |
Switzerland | 218,448,606 | — | 218,448,606 | — |
Taiwan | 372,316,271 | — | 372,316,271 | — |
United Kingdom | 844,355,801 | — | 844,355,801 | — |
United States | 64,364,249 | 64,364,249 | — | — |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 23 |
Total value at 9-30-23 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Warrants | — | — | — | — |
Short-term investments | $38,474,587 | $38,474,587 | — | — |
Total investments in securities | $5,815,715,078 | $633,936,581 | $5,181,778,497 | — |
Level 3 includes securities valued at $0. Refer to Fund’s investments. |
24 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 25 |
26 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
Class | Expense reduction |
Class A | $18,410 |
Class C | 3,096 |
Class I | 120,907 |
Class R2 | 857 |
Class R4 | 366 |
Class | Expense reduction |
Class R6 | $68,292 |
Class 1 | 2,050 |
Class NAV | 27,973 |
Total | $241,951 |
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% | — |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 27 |
Class | Distribution and service fees | Transfer agent fees |
Class A | $752,901 | $300,492 |
Class C | 422,895 | 50,805 |
Class I | — | 1,992,496 |
Class R2 | 59,645 | 655 |
Class R4 | 17,412 | 259 |
Class R6 | — | 48,571 |
Class 1 | 13,979 | — |
Total | $1,266,832 | $2,393,278 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Borrower | $16,517,857 | 28 | 5.797% | ($74,477) |
28 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
Six Months Ended 9-30-23 | Year Ended 3-31-23 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,894,102 | $45,770,451 | 4,121,786 | $102,713,067 |
Distributions reinvested | — | — | 2,555,111 | 56,442,401 |
Repurchased | (2,631,796) | (63,181,287) | (7,075,660) | (175,487,551) |
Net decrease | (737,694) | $(17,410,836) | (398,763) | $(16,332,083) |
Class C shares | ||||
Sold | 26,362 | $601,789 | 152,991 | $3,573,163 |
Distributions reinvested | — | — | 607,044 | 12,784,349 |
Repurchased | (984,953) | (22,660,042) | (2,452,425) | (58,086,690) |
Net decrease | (958,591) | $(22,058,253) | (1,692,390) | $(41,729,178) |
Class I shares | ||||
Sold | 9,912,765 | $240,501,970 | 58,845,096 | $1,467,041,280 |
Distributions reinvested | — | — | 20,243,461 | 450,012,141 |
Repurchased | (40,727,296) | (988,792,653) | (175,049,641) | (4,367,898,361) |
Net decrease | (30,814,531) | $(748,290,683) | (95,961,084) | $(2,450,844,940) |
Class R2 shares | ||||
Sold | 56,936 | $1,370,152 | 326,408 | $8,123,696 |
Distributions reinvested | — | — | 167,484 | 3,698,042 |
Repurchased | (1,003,603) | (24,183,446) | (283,249) | (6,947,643) |
Net increase (decrease) | (946,667) | $(22,813,294) | 210,643 | $4,874,095 |
Class R4 shares | ||||
Sold | 43,595 | $1,052,969 | 158,362 | $3,933,660 |
Distributions reinvested | — | — | 37,265 | 826,906 |
Repurchased | (43,169) | (1,051,522) | (1,285,733) | (35,739,428) |
Net increase (decrease) | 426 | $1,447 | (1,090,106) | $(30,978,862) |
Class R6 shares | ||||
Sold | 5,000,606 | $121,324,747 | 14,240,010 | $359,571,642 |
Distributions reinvested | — | — | 9,895,144 | 220,463,812 |
Repurchased | (9,906,876) | (240,711,089) | (22,459,754) | (568,706,165) |
Net increase (decrease) | (4,906,270) | $(119,386,342) | 1,675,400 | $11,329,289 |
SEMIANNUAL REPORT | JOHN HANCOCK International Growth Fund | 29 |
Six Months Ended 9-30-23 | Year Ended 3-31-23 | |||
Shares | Amount | Shares | Amount | |
Class 1 shares | ||||
Sold | 50,385 | $1,225,749 | 172,182 | $4,299,192 |
Distributions reinvested | — | — | 301,139 | 6,694,331 |
Repurchased | (294,551) | (7,161,692) | (442,864) | (11,026,986) |
Net increase (decrease) | (244,166) | $(5,935,943) | 30,457 | $(33,463) |
Class NAV shares | ||||
Sold | 1,489,990 | $36,134,676 | 2,471,385 | $63,296,784 |
Distributions reinvested | — | — | 4,078,845 | 90,713,513 |
Repurchased | (2,137,226) | (52,513,536) | (2,705,530) | (64,995,107) |
Net increase (decrease) | (647,236) | $(16,378,860) | 3,844,700 | $89,015,190 |
Total net decrease | (39,254,729) | $(952,272,764) | (93,381,143) | $(2,434,699,952) |
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* | 3,849,114 | $201,889,403 | $535,713,900 | $(699,139,987) | $(8,387) | $19,658 | $668,884 | — | $38,474,587 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
30 | JOHN HANCOCK International Growth Fund | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH 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; |
(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; |
32 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 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. |
(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 |
34 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund; | |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale. |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the Trust (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the Trust’s Advisor and Subadvisor. |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 35 |
(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 over the longer term; |
(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. |
36 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
SEMIANNUAL REPORT | JOHN HANCOCK INTERNATIONAL GROWTH FUND | 37 |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Deborah C. Jackson
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 |
38 | JOHN HANCOCK INTERNATIONAL GROWTH FUND | SEMIANNUAL REPORT |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
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standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
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MF3149101 | 87SA 9/23 |
United States and Europe
Manulife Investment Management
John Hancock Investment Management
2 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
TOP 10 HOLDINGS AS OF 9/30/2023 (% of net assets) | |
Microsoft Corp. | 11.9 |
Alphabet, Inc., Class A | 8.7 |
Apple, Inc. | 7.9 |
Amazon.com, Inc. | 6.6 |
NVIDIA Corp. | 5.2 |
Meta Platforms, Inc., Class A | 5.1 |
UnitedHealth Group, Inc. | 3.2 |
Mastercard, Inc., Class A | 2.9 |
Visa, Inc., Class A | 2.7 |
Broadcom, Inc. | 2.6 |
TOTAL | 56.8 |
Cash and cash equivalents are not included. |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 3 |
4 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
Account value on 4-1-2023 | Ending value on 9-30-2023 | Expenses paid during period ended 9-30-20231 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,118.60 | $5.24 | 0.99% |
Hypothetical example | 1,000.00 | 1,020.10 | 5.00 | 0.99% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,114.40 | 9.20 | 1.74% |
Hypothetical example | 1,000.00 | 1,016.30 | 8.77 | 1.74% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,120.60 | 3.92 | 0.74% |
Hypothetical example | 1,000.00 | 1,021.30 | 3.74 | 0.74% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,118.30 | 5.88 | 1.11% |
Hypothetical example | 1,000.00 | 1,019.50 | 5.60 | 1.11% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,120.10 | 4.24 | 0.80% |
Hypothetical example | 1,000.00 | 1,021.00 | 4.04 | 0.80% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,120.90 | 3.29 | 0.62% |
Hypothetical example | 1,000.00 | 1,021.90 | 3.13 | 0.62% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,120.90 | 3.29 | 0.62% |
Hypothetical example | 1,000.00 | 1,021.90 | 3.13 | 0.62% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 5 |
Shares | Value | ||||
Common stocks 99.9% | $1,075,352,457 | ||||
(Cost $729,106,644) | |||||
Communication services 13.8% | 148,584,462 | ||||
Interactive media and services 13.8% | |||||
Alphabet, Inc., Class A (A) | 717,336 | 93,870,589 | |||
Meta Platforms, Inc., Class A (A) | 182,252 | 54,713,873 | |||
Consumer discretionary 14.1% | 152,120,993 | ||||
Broadline retail 6.6% | |||||
Amazon.com, Inc. (A) | 561,819 | 71,418,431 | |||
Hotels, restaurants and leisure 4.9% | |||||
Airbnb, Inc., Class A (A) | 105,019 | 14,409,657 | |||
Booking Holdings, Inc. (A) | 5,606 | 17,288,624 | |||
DraftKings, Inc., Class A (A) | 382,697 | 11,266,600 | |||
Hyatt Hotels Corp., Class A (B) | 86,866 | 9,214,745 | |||
Household durables 1.0% | |||||
Lennar Corp., A Shares | 97,760 | 10,971,605 | |||
Specialty retail 1.6% | |||||
AutoZone, Inc. (A) | 6,910 | 17,551,331 | |||
Consumer staples 1.1% | 12,394,377 | ||||
Beverages 1.1% | |||||
Monster Beverage Corp. (A) | 234,077 | 12,394,377 | |||
Energy 1.1% | 11,420,504 | ||||
Energy equipment and services 1.1% | |||||
Schlumberger, Ltd. | 195,892 | 11,420,504 | |||
Financials 15.1% | 163,135,981 | ||||
Capital markets 4.2% | |||||
Ares Management Corp., Class A | 169,371 | 17,423,195 | |||
MSCI, Inc. | 33,439 | 17,156,882 | |||
S&P Global, Inc. | 29,727 | 10,862,543 | |||
Financial services 6.9% | |||||
FleetCor Technologies, Inc. (A) | 55,222 | 14,100,385 | |||
Mastercard, Inc., Class A | 78,821 | 31,206,022 | |||
Visa, Inc., Class A | 127,542 | 29,335,935 | |||
Insurance 4.0% | |||||
Arch Capital Group, Ltd. (A) | 154,943 | 12,350,507 | |||
Marsh & McLennan Companies, Inc. | 77,113 | 14,674,604 | |||
The Progressive Corp. | 115,046 | 16,025,908 |
6 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Health care 9.0% | $96,770,692 | ||||
Biotechnology 1.4% | |||||
Vertex Pharmaceuticals, Inc. (A) | 42,413 | 14,748,697 | |||
Health care providers and services 4.3% | |||||
McKesson Corp. | 28,246 | 12,282,773 | |||
UnitedHealth Group, Inc. | 67,801 | 34,184,586 | |||
Pharmaceuticals 3.3% | |||||
Eli Lilly & Company | 43,095 | 23,147,617 | |||
Merck & Company, Inc. | 120,515 | 12,407,019 | |||
Industrials 6.1% | 65,344,779 | ||||
Building products 1.0% | |||||
Builders FirstSource, Inc. (A) | 90,054 | 11,210,822 | |||
Commercial services and supplies 1.1% | |||||
Clean Harbors, Inc. (A) | 67,814 | 11,349,351 | |||
Ground transportation 2.0% | |||||
Uber Technologies, Inc. (A) | 460,053 | 21,157,837 | |||
Professional services 2.0% | |||||
EXL Service Holdings, Inc. (A) | 383,988 | 10,767,024 | |||
TransUnion | 151,271 | 10,859,745 | |||
Information technology 38.5% | 414,205,149 | ||||
Electronic equipment, instruments and components 2.7% | |||||
Flex, Ltd. (A) | 409,756 | 11,055,217 | |||
Jabil, Inc. | 142,496 | 18,081,317 | |||
IT services 1.5% | |||||
Gartner, Inc. (A) | 46,118 | 15,846,606 | |||
Semiconductors and semiconductor equipment 11.3% | |||||
Analog Devices, Inc. | 70,988 | 12,429,289 | |||
Broadcom, Inc. | 33,193 | 27,569,442 | |||
KLA Corp. | 32,427 | 14,872,968 | |||
NVIDIA Corp. | 129,204 | 56,202,448 | |||
ON Semiconductor Corp. (A) | 109,862 | 10,211,673 | |||
Software 15.1% | |||||
Microsoft Corp. | 404,133 | 127,604,995 | |||
Salesforce, Inc. (A) | 87,466 | 17,736,355 | |||
ServiceNow, Inc. (A) | 30,189 | 16,874,443 | |||
Technology hardware, storage and peripherals 7.9% | |||||
Apple, Inc. | 500,674 | 85,720,396 | |||
Real estate 1.1% | 11,375,520 | ||||
Specialized REITs 1.1% | |||||
Iron Mountain, Inc. | 191,346 | 11,375,520 | |||
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 7 |
Yield (%) | Shares | Value | |||
Short-term investments 0.1% | $971,626 | ||||
(Cost $971,628) | |||||
Short-term funds 0.1% | 971,626 | ||||
John Hancock Collateral Trust (C) | 5.2943(D) | 2,213 | 22,125 | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 5.2787(D) | 949,501 | 949,501 |
Total investments (Cost $730,078,272) 100.0% | $1,076,324,083 | ||||
Other assets and liabilities, net 0.0% | 203,680 | ||||
Total net assets 100.0% | $1,076,527,763 |
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) | All or a portion of this security is on loan as of 9-30-23. |
(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 9-30-23. |
8 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $730,056,145) including $21,624 of securities loaned | $1,076,301,958 |
Affiliated investments, at value (Cost $22,127) | 22,125 |
Total investments, at value (Cost $730,078,272) | 1,076,324,083 |
Cash | 950 |
Dividends and interest receivable | 300,022 |
Receivable for fund shares sold | 634,763 |
Receivable for securities lending income | 118 |
Other assets | 155,622 |
Total assets | 1,077,415,558 |
Liabilities | |
Payable for investments purchased | 20,348 |
Payable for fund shares repurchased | 609,155 |
Payable upon return of securities loaned | 22,100 |
Payable to affiliates | |
Accounting and legal services fees | 54,920 |
Transfer agent fees | 85,987 |
Distribution and service fees | 233 |
Other liabilities and accrued expenses | 95,052 |
Total liabilities | 887,795 |
Net assets | $1,076,527,763 |
Net assets consist of | |
Paid-in capital | $680,040,370 |
Total distributable earnings (loss) | 396,487,393 |
Net assets | $1,076,527,763 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 9 |
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 ($600,448,006 ÷ 29,328,182 shares)1 | $20.47 |
Class C ($19,740,636 ÷ 1,033,868 shares)1 | $19.09 |
Class I ($267,175,496 ÷ 12,777,504 shares) | $20.91 |
Class R2 ($1,107,583 ÷ 53,778 shares) | $20.60 |
Class R4 ($15,588 ÷ 746 shares) | $20.892 |
Class R6 ($134,997,007 ÷ 6,413,453 shares) | $21.05 |
Class NAV ($53,043,447 ÷ 2,520,592 shares) | $21.04 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 95%)3 | $21.55 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. |
2 | Net asset value, offering price and redemption price per share of $20.89 is calculated using Net assets of $15,587.84 and Shares outstanding of 746.17. |
3 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
10 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Investment income | |
Dividends | $3,245,487 |
Interest | 1,896 |
Securities lending | 112 |
Total investment income | 3,247,495 |
Expenses | |
Investment management fees | 2,984,347 |
Distribution and service fees | 847,643 |
Accounting and legal services fees | 112,951 |
Transfer agent fees | 534,641 |
Trustees’ fees | 11,342 |
Custodian fees | 63,924 |
State registration fees | 66,738 |
Printing and postage | 32,982 |
Professional fees | 40,607 |
Other | 29,647 |
Total expenses | 4,724,822 |
Less expense reductions | (39,253) |
Net expenses | 4,685,569 |
Net investment loss | (1,438,074) |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | 29,966,595 |
Affiliated investments | 46 |
29,966,641 | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | 89,073,940 |
Affiliated investments | (2) |
89,073,938 | |
Net realized and unrealized gain | 119,040,579 |
Increase in net assets from operations | $117,602,505 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 11 |
Six months ended 9-30-23 (unaudited) | Year ended 3-31-23 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment income (loss) | $(1,438,074) | $747,905 |
Net realized gain | 29,966,641 | 24,562,260 |
Change in net unrealized appreciation (depreciation) | 89,073,938 | (168,714,240) |
Increase (decrease) in net assets resulting from operations | 117,602,505 | (143,404,075) |
Distributions to shareholders | ||
From earnings | ||
Class A | — | (52,473,465) |
Class C | — | (2,139,626) |
Class I | — | (23,364,807) |
Class R2 | — | (123,707) |
Class R4 | — | (1,417) |
Class R6 | — | (11,875,722) |
Class NAV | — | (4,145,376) |
Total distributions | — | (94,124,120) |
From fund share transactions | (36,603,238) | (13,096,826) |
Total increase (decrease) | 80,999,267 | (250,625,021) |
Net assets | ||
Beginning of period | 995,528,496 | 1,246,153,517 |
End of period | $1,076,527,763 | $995,528,496 |
12 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS A SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $18.30 | $22.99 | $23.96 | $16.24 | $16.23 | $17.94 |
Net investment income (loss)2 | (0.04) | (0.01) | (0.10) | (0.07) | 0.01 | (0.01) |
Net realized and unrealized gain (loss) on investments | 2.21 | (2.76) | 2.75 | 8.40 | —3 | 2.22 |
Total from investment operations | 2.17 | (2.77) | 2.65 | 8.33 | 0.01 | 2.21 |
Less distributions | ||||||
From net investment income | — | — | — | — | — | (0.03) |
From net realized gain | — | (1.92) | (3.62) | (0.61) | — | (3.89) |
Total distributions | — | (1.92) | (3.62) | (0.61) | — | (3.92) |
Net asset value, end of period | $20.47 | $18.30 | $22.99 | $23.96 | $16.24 | $16.23 |
Total return (%)4,5 | 11.866 | (11.22) | 10.06 | 51.37 | 0.06 | 12.22 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $600 | $547 | $670 | $653 | $458 | $404 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.997 | 0.99 | 0.96 | 1.01 | 1.01 | 1.10 |
Expenses including reductions | 0.997 | 0.98 | 0.96 | 1.00 | 1.00 | 1.09 |
Net investment income (loss) | (0.38)7 | (0.04) | (0.40) | (0.31) | 0.03 | (0.07) |
Portfolio turnover (%) | 33 | 103 | 91 | 101 | 918 | 889 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Does not reflect the effect of sales charges, if any. |
6 | Not annualized. |
7 | Annualized. |
8 | Excludes in-kind transactions and merger activity. |
9 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 13 |
CLASS C SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $17.13 | $21.84 | $23.08 | $15.77 | $15.88 | $17.71 |
Net investment loss2 | (0.11) | (0.14) | (0.28) | (0.23) | (0.12) | (0.14) |
Net realized and unrealized gain (loss) on investments | 2.07 | (2.65) | 2.66 | 8.15 | 0.01 | 2.20 |
Total from investment operations | 1.96 | (2.79) | 2.38 | 7.92 | (0.11) | 2.06 |
Less distributions | ||||||
From net realized gain | — | (1.92) | (3.62) | (0.61) | — | (3.89) |
Net asset value, end of period | $19.09 | $17.13 | $21.84 | $23.08 | $15.77 | $15.88 |
Total return (%)3,4 | 11.445 | (11.93) | 9.25 | 50.29 | (0.69) | 11.44 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $20 | $19 | $30 | $35 | $23 | $12 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.746 | 1.74 | 1.71 | 1.76 | 1.76 | 1.85 |
Expenses including reductions | 1.746 | 1.73 | 1.71 | 1.75 | 1.75 | 1.84 |
Net investment loss | (1.13)6 | (0.78) | (1.15) | (1.07) | (0.72) | (0.85) |
Portfolio turnover (%) | 33 | 103 | 91 | 101 | 917 | 888 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Does not reflect the effect of sales charges, if any. |
5 | Not annualized. |
6 | Annualized. |
7 | Excludes in-kind transactions and merger activity. |
8 | Excludes in-kind transactions. |
14 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS I SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $18.66 | $23.35 | $24.23 | $16.38 | $16.36 | $18.05 |
Net investment income (loss)2 | (0.01) | 0.04 | (0.04) | (0.01) | 0.05 | 0.04 |
Net realized and unrealized gain (loss) on investments | 2.26 | (2.81) | 2.78 | 8.49 | (0.01) | 2.23 |
Total from investment operations | 2.25 | (2.77) | 2.74 | 8.48 | 0.04 | 2.27 |
Less distributions | ||||||
From net investment income | — | — | — | (0.02) | (0.02) | (0.07) |
From net realized gain | — | (1.92) | (3.62) | (0.61) | — | (3.89) |
Total distributions | — | (1.92) | (3.62) | (0.63) | (0.02) | (3.96) |
Net asset value, end of period | $20.91 | $18.66 | $23.35 | $24.23 | $16.38 | $16.36 |
Total return (%)3 | 12.064 | (11.05) | 10.33 | 51.84 | 0.26 | 12.55 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $267 | $262 | $347 | $408 | $321 | $115 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.745 | 0.74 | 0.71 | 0.76 | 0.76 | 0.87 |
Expenses including reductions | 0.745 | 0.73 | 0.71 | 0.75 | 0.75 | 0.86 |
Net investment income (loss) | (0.13)5 | 0.21 | (0.16) | (0.06) | 0.28 | 0.25 |
Portfolio turnover (%) | 33 | 103 | 91 | 101 | 916 | 887 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
4 | Not annualized. |
5 | Annualized. |
6 | Excludes in-kind transactions and merger activity. |
7 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 15 |
CLASS R2 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $18.42 | $23.16 | $24.15 | $16.38 | $16.40 | $18.08 |
Net investment loss2 | (0.05) | (0.03) | (0.14) | (0.10) | (0.02) | (0.04) |
Net realized and unrealized gain (loss) on investments | 2.23 | (2.79) | 2.77 | 8.48 | —3 | 2.25 |
Total from investment operations | 2.18 | (2.82) | 2.63 | 8.38 | (0.02) | 2.21 |
Less distributions | ||||||
From net investment income | — | — | — | — | — | —3 |
From net realized gain | — | (1.92) | (3.62) | (0.61) | — | (3.89) |
Total distributions | — | (1.92) | (3.62) | (0.61) | — | (3.89) |
Net asset value, end of period | $20.60 | $18.42 | $23.16 | $24.15 | $16.38 | $16.40 |
Total return (%)4 | 11.835 | (11.36) | 9.89 | 51.24 | (0.12) | 12.13 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $1 | $1 | $2 | $1 | $1 | $1 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 1.126 | 1.12 | 1.10 | 1.14 | 1.15 | 1.25 |
Expenses including reductions | 1.116 | 1.11 | 1.09 | 1.13 | 1.14 | 1.25 |
Net investment loss | (0.50)6 | (0.16) | (0.54) | (0.45) | (0.11) | (0.22) |
Portfolio turnover (%) | 33 | 103 | 91 | 101 | 917 | 888 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
7 | Excludes in-kind transactions and merger activity. |
8 | Excludes in-kind transactions. |
16 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R4 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $18.65 | $23.36 | $24.25 | $16.41 | $16.39 | $18.08 |
Net investment income (loss)2 | (0.02) | 0.02 | (0.05) | (0.03) | 0.03 | 0.01 |
Net realized and unrealized gain (loss) on investments | 2.26 | (2.81) | 2.78 | 8.48 | —3 | 2.24 |
Total from investment operations | 2.24 | (2.79) | 2.73 | 8.45 | 0.03 | 2.25 |
Less distributions | ||||||
From net investment income | — | — | — | —3 | (0.01) | (0.05) |
From net realized gain | — | (1.92) | (3.62) | (0.61) | — | (3.89) |
Total distributions | — | (1.92) | (3.62) | (0.61) | (0.01) | (3.94) |
Net asset value, end of period | $20.89 | $18.65 | $23.36 | $24.25 | $16.41 | $16.39 |
Total return (%)4 | 12.015 | (11.13) | 10.27 | 51.59 | 0.17 | 12.36 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $—6 | $—6 | $—6 | $—6 | $1 | $1 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.907 | 0.95 | 0.89 | 1.00 | 1.00 | 1.10 |
Expenses including reductions | 0.807 | 0.84 | 0.79 | 0.89 | 0.89 | 1.00 |
Net investment income (loss) | (0.19)7 | 0.12 | (0.23) | (0.14) | 0.15 | 0.03 |
Portfolio turnover (%) | 33 | 103 | 91 | 101 | 918 | 889 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
8 | Excludes in-kind transactions and merger activity. |
9 | Excludes in-kind transactions. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 17 |
CLASS R6 SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $18.78 | $23.45 | $24.30 | $16.42 | $16.39 | $18.08 |
Net investment income (loss)2 | — | 0.06 | (0.01) | 0.01 | 0.07 | 0.05 |
Net realized and unrealized gain (loss) on investments | 2.27 | (2.81) | 2.78 | 8.51 | —3 | 2.24 |
Total from investment operations | 2.27 | (2.75) | 2.77 | 8.52 | 0.07 | 2.29 |
Less distributions | ||||||
From net investment income | — | — | — | (0.03) | (0.04) | (0.09) |
From net realized gain | — | (1.92) | (3.62) | (0.61) | — | (3.89) |
Total distributions | — | (1.92) | (3.62) | (0.64) | (0.04) | (3.98) |
Net asset value, end of period | $21.05 | $18.78 | $23.45 | $24.30 | $16.42 | $16.39 |
Total return (%)4 | 12.095 | (10.91) | 10.43 | 51.96 | 0.38 | 12.68 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $135 | $121 | $145 | $147 | $99 | $15 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.636 | 0.63 | 0.61 | 0.65 | 0.65 | 0.75 |
Expenses including reductions | 0.626 | 0.63 | 0.60 | 0.64 | 0.64 | 0.74 |
Net investment income (loss) | (0.02)6 | 0.32 | (0.05) | 0.04 | 0.37 | 0.29 |
Portfolio turnover (%) | 33 | 103 | 91 | 101 | 917 | 888 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Annualized. |
7 | Excludes in-kind transactions and merger activity. |
8 | Excludes in-kind transactions. |
18 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS NAV SHARES Period ended | 9-30-231 | 3-31-23 | 3-31-22 | 3-31-21 | 3-31-20 | 3-31-19 |
Per share operating performance | ||||||
Net asset value, beginning of period | $18.77 | $23.45 | $24.29 | $16.41 | $16.38 | $18.07 |
Net investment income (loss)2 | — | 0.06 | (0.01) | 0.01 | 0.07 | 0.03 |
Net realized and unrealized gain (loss) on investments | 2.27 | (2.82) | 2.79 | 8.51 | —3 | 2.26 |
Total from investment operations | 2.27 | (2.76) | 2.78 | 8.52 | 0.07 | 2.29 |
Less distributions | ||||||
From net investment income | — | — | — | (0.03) | (0.04) | (0.09) |
From net realized gain | — | (1.92) | (3.62) | (0.61) | — | (3.89) |
Total distributions | — | (1.92) | (3.62) | (0.64) | (0.04) | (3.98) |
Net asset value, end of period | $21.04 | $18.77 | $23.45 | $24.29 | $16.41 | $16.38 |
Total return (%)4 | 12.095 | (10.96) | 10.48 | 52.01 | 0.39 | 12.69 |
Ratios and supplemental data | ||||||
Net assets, end of period (in millions) | $53 | $45 | $52 | $54 | $40 | $—6 |
Ratios (as a percentage of average net assets): | ||||||
Expenses before reductions | 0.627 | 0.62 | 0.60 | 0.64 | 0.64 | 0.74 |
Expenses including reductions | 0.627 | 0.62 | 0.59 | 0.63 | 0.63 | 0.73 |
Net investment income (loss) | (0.01)7 | 0.33 | (0.04) | 0.06 | 0.41 | 0.18 |
Portfolio turnover (%) | 33 | 103 | 91 | 101 | 918 | 889 |
1 | Six months ended 9-30-23. Unaudited. |
2 | Based on average daily shares outstanding. |
3 | Less than $0.005 per share. |
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
5 | Not annualized. |
6 | Less than $500,000. |
7 | Annualized. |
8 | Excludes in-kind transactions and merger activity. |
9 | Excludes in-kind transactions. |
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 |
22 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT |
Class | Expense reduction |
Class A | $21,760 |
Class C | 745 |
Class I | 10,037 |
Class R2 | 43 |
Class | Expense reduction |
Class R6 | $4,802 |
Class NAV | 1,859 |
Total | $39,246 |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 23 |
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% |
24 | JOHN HANCOCK U.S. Growth Fund | SEMIANNUAL REPORT |
Class | Distribution and service fees | Transfer agent fees |
Class A | $742,954 | $355,043 |
Class C | 101,824 | 12,176 |
Class I | — | 164,013 |
Class R2 | 2,844 | 31 |
Class R4 | 21 | — |
Class R6 | — | 3,378 |
Total | $847,643 | $534,641 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $4,100,000 | 3 | 5.550% | $1,896 |
Six Months Ended 9-30-23 | Year Ended 3-31-23 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 1,230,104 | $24,843,535 | 1,802,319 | $34,073,217 |
Distributions reinvested | — | — | 3,096,748 | 51,498,951 |
Repurchased | (1,786,567) | (35,788,392) | (4,163,977) | (79,567,057) |
Net increase (decrease) | (556,463) | $(10,944,857) | 735,090 | $6,005,111 |
Class C shares | ||||
Sold | 94,022 | $1,734,854 | 76,383 | $1,375,885 |
Distributions reinvested | — | — | 137,042 | 2,137,853 |
Repurchased | (187,847) | (3,496,125) | (472,717) | (8,404,996) |
Net decrease | (93,825) | $(1,761,271) | (259,292) | $(4,891,258) |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 25 |
Six Months Ended 9-30-23 | Year Ended 3-31-23 | |||
Shares | Amount | Shares | Amount | |
Class I shares | ||||
Sold | 1,035,954 | $21,312,533 | 4,226,606 | $80,874,177 |
Distributions reinvested | — | — | 1,376,354 | 23,329,193 |
Repurchased | (2,285,223) | (46,935,575) | (6,429,940) | (125,779,097) |
Net decrease | (1,249,269) | $(25,623,042) | (826,980) | $(21,575,727) |
Class R2 shares | ||||
Sold | 6,221 | $123,490 | 8,565 | $170,572 |
Distributions reinvested | — | — | 6,625 | 110,964 |
Repurchased | (20,918) | (414,604) | (11,523) | (215,716) |
Net increase (decrease) | (14,697) | $(291,114) | 3,667 | $65,820 |
Class R4 shares | ||||
Sold | 6 | $135 | 559 | $10,468 |
Distributions reinvested | — | — | 23 | 392 |
Repurchased | (26) | (550) | — | — |
Net increase (decrease) | (20) | $(415) | 582 | $10,860 |
Class R6 shares | ||||
Sold | 794,808 | $16,607,756 | 1,245,396 | $24,849,817 |
Distributions reinvested | — | — | 696,523 | 11,875,722 |
Repurchased | (834,426) | (16,990,705) | (1,675,915) | (32,375,118) |
Net increase (decrease) | (39,618) | $(382,949) | 266,004 | $4,350,421 |
Class NAV shares | ||||
Sold | 225,342 | $4,684,140 | 206,786 | $4,035,518 |
Distributions reinvested | — | — | 243,131 | 4,145,376 |
Repurchased | (110,317) | (2,283,730) | (268,244) | (5,242,947) |
Net increase | 115,025 | $2,400,410 | 181,673 | $2,937,947 |
Total net increase (decrease) | (1,838,867) | $(36,603,238) | 100,744 | $(13,096,826) |
26 | JOHN HANCOCK U.S. Growth 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* | 2,213 | — | $2,277,350 | $(2,255,269) | $46 | $(2) | $112 | — | $22,125 |
* | Refer to the Securities lending note within Note 2 for details regarding this investment. |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. Growth Fund | 27 |
28 | JOHN HANCOCK U.S. 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; |
(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; |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 29 |
(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. |
30 | JOHN HANCOCK U.S. 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 it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 31 |
(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. |
32 | JOHN HANCOCK U.S. 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; |
(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 |
34 | JOHN HANCOCK U.S. GROWTH FUND | SEMIANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
William H. Cunningham*
Grace K. Fey
Noni L. Ellison^
Dean C. Garfield^
Deborah C. Jackson
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 |
SEMIANNUAL REPORT | JOHN HANCOCK U.S. GROWTH FUND | 35 |
GOVERNANCE FUNDS
with a heritage of financial stewardship dating back to 1862. Helping
our shareholders pursue their financial goals is at the core of everything
we do. It’s why we support the role of professional financial advice
and operate with the highest standards of conduct and integrity.
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising
standards and serve the best interests of our shareholders.
a diverse set of investments backed by some of the world’s best
managers, along with strong risk-adjusted returns across asset classes.
200 Berkeley Street, Boston, MA 02116-5010, 800-225-5291, jhinvestments.com
MF3149118 | 393SA 9/23 |
ITEM 2. CODE OF ETHICS.
Not Applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not Applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not Applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not Applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)Not Applicable.
(b)Not Applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED- END MANAGEMENT INVESTMENT COMPANIES.
Not Applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not Applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not Applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form N-CSR. See attached "John Hancock Funds – Nominating 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/ Kristie M. Feinberg |
| ------------------------------ |
| Kristie M. Feinberg |
| President |
Date: | October 30, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Kristie M. Feinberg |
| ------------------------------ |
| Kristie M. Feinberg |
| President |
Date: | October 30, 2023 |
By: | /s/ Charles A. Rizzo |
| -------------------------------- |
| Charles A. Rizzo |
| Chief Financial Officer |
Date: | October 30, 2023 |